COVER PAGE
COVER PAGE - USD ($) $ in Billions | 12 Months Ended | ||
Aug. 31, 2023 | Oct. 11, 2023 | Feb. 28, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Aug. 31, 2023 | ||
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 | $ 6 | ||
Entity Common Stock, Shares Outstanding | 116,905,168 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement for the 2024 annual meeting of stockholders are incorporated by reference into Part III | ||
Entity Central Index Key | 0000022444 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --08-31 |
Audit Information
Audit Information | 12 Months Ended |
Aug. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 34 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 8,799,533 | $ 8,913,481 | $ 6,729,760 |
Costs and operating expenses (income): | |||
Cost of goods and services sold | 6,987,618 | 7,057,085 | 5,623,903 |
Selling, general and administrative expenses | 643,535 | 544,984 | 505,117 |
Interest expense | 40,127 | 50,709 | 51,904 |
Loss on debt extinguishment | 179 | 16,052 | 16,841 |
Asset impairments | 3,780 | 4,926 | 6,784 |
Loss (gain) on sale of assets | 2,327 | (275,422) | (8,807) |
Total costs and expenses | 7,677,566 | 7,398,334 | 6,195,742 |
Earnings before income taxes | 1,121,967 | 1,515,147 | 534,018 |
Income taxes | 262,207 | 297,885 | 121,153 |
Net earnings | $ 859,760 | $ 1,217,262 | $ 412,865 |
Earnings per share: | |||
Basic (in shares) | $ 7.34 | $ 10.09 | $ 3.43 |
Diluted (in shares) | $ 7.25 | $ 9.95 | $ 3.38 |
Average basic shares outstanding (in shares) | 117,077,703 | 120,648,090 | 120,338,357 |
Average diluted shares outstanding (in shares) | 118,606,271 | 122,372,386 | 121,983,497 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Other comprehensive income (loss), net of income taxes: | |||
Net earnings | $ 859,760 | $ 1,217,262 | $ 412,865 |
Foreign currency translation: | |||
Foreign currency translation | 119,852 | (140,217) | (17,747) |
Derivatives: | |||
Net unrealized holding gain | 6,395 | 138,634 | 35,492 |
Reclassification for realized gain | (9,380) | (22,173) | (2,377) |
Net unrealized holding gain (reclassification for realized gain) on derivatives | (2,985) | 116,461 | 33,115 |
Defined benefit pension plans: | |||
Net gain (loss) | (7,985) | (5,898) | 3,523 |
Reclassification for settlement losses and other | 1,791 | 23 | 53 |
Defined benefit pension plans gain (loss) after amortization of prior service costs and net actuarial losses | (6,194) | (5,875) | 3,576 |
Total other comprehensive income (loss), net of income taxes | 110,673 | (29,631) | 18,944 |
Comprehensive income | $ 970,433 | $ 1,187,631 | $ 431,809 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 592,332 | $ 672,596 |
Accounts receivable (less allowance for doubtful accounts of $4,135 and $4,990) | 1,240,217 | 1,358,907 |
Inventories | 1,035,582 | 1,169,696 |
Prepaid and other current assets | 276,024 | 240,269 |
Total current assets | 3,144,155 | 3,441,468 |
Property, plant and equipment: | ||
Land | 160,067 | 155,237 |
Buildings and improvements | 1,071,102 | 799,715 |
Equipment | 3,089,007 | 2,440,910 |
Construction in process | 213,651 | 489,031 |
Property, plant and equipment, Gross | 4,533,827 | 3,884,893 |
Less accumulated depreciation and amortization | (2,124,467) | (1,974,022) |
Property, plant and equipment, Net | 2,409,360 | 1,910,871 |
Intangible assets, net | 259,161 | 257,409 |
Goodwill | 385,821 | 249,009 |
Other noncurrent assets | 440,597 | 378,270 |
Total assets | 6,639,094 | 6,237,027 |
Current liabilities: | ||
Accounts payable | 364,390 | 428,055 |
Accrued expenses and other payables | 438,811 | 540,136 |
Current maturities of long-term debt and short-term borrowings | 40,513 | 388,796 |
Total current liabilities | 843,714 | 1,356,987 |
Deferred income taxes | 306,801 | 250,302 |
Other noncurrent liabilities | 253,181 | 230,060 |
Long-term debt | 1,114,284 | 1,113,249 |
Total liabilities | 2,517,980 | 2,950,598 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 116,515,427 and 117,496,053 shares | 1,290 | 1,290 |
Additional paid-in capital | 394,672 | 382,767 |
Accumulated other comprehensive loss | (3,778) | (114,451) |
Retained earnings | 4,097,262 | 3,312,438 |
Less treasury stock, 12,545,237 and 11,564,611 shares at cost | (368,573) | (295,847) |
Stockholders' equity | 4,120,873 | 3,286,197 |
Stockholders' equity attributable to non-controlling interests | 241 | 232 |
Total stockholders' equity | 4,121,114 | 3,286,429 |
Total liabilities and stockholders' equity | $ 6,639,094 | $ 6,237,027 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ (4,135) | $ (4,990) |
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 | 116,515,427 | 117,496,053 |
Treasury stock, shares | 12,545,237 | 11,564,611 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Cash flows from (used by) operating activities: | |||
Net earnings | $ 859,760 | $ 1,217,262 | $ 412,865 |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 218,830 | 175,024 | 167,613 |
Stock-based compensation | 60,529 | 46,978 | 43,677 |
Deferred income taxes and other long-term taxes | 51,919 | 86,175 | (39,873) |
Write-down of inventory | 11,286 | 464 | 384 |
Asset impairments | 3,780 | 4,926 | 6,784 |
Net loss (gain) on sales of assets | 2,327 | (275,422) | (8,807) |
Loss on debt extinguishment | 179 | 16,052 | 16,841 |
Other | 4,471 | 2,089 | 157 |
Amortization of acquired unfavorable contract backlog | 0 | 0 | (6,035) |
Settlement of New Markets Tax Credit transaction | (17,659) | 0 | 0 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 175,102 | (257,607) | (228,026) |
Inventories | 177,024 | (255,175) | (316,316) |
Accounts payable, accrued expenses and other payables | (174,120) | 3,899 | 194,801 |
Other operating assets and liabilities | (29,325) | (64,356) | (15,591) |
Net cash flows from operating activities | 1,344,103 | 700,309 | 228,474 |
Cash flows from (used by) investing activities: | |||
Capital expenditures | (606,665) | (449,988) | (184,165) |
Acquisitions, net of cash acquired | (234,717) | (552,449) | (1,888) |
Proceeds from insurance | 2,456 | 3,081 | 0 |
Proceeds from government grants related to property, plant and equipment | 5,000 | 0 | 0 |
Proceeds from the sale of property, plant and equipment and other | 1,006 | 315,148 | 26,424 |
Other | (2,307) | (507) | (2,500) |
Net cash flows used by investing activities | (835,227) | (684,715) | (162,129) |
Cash flows from (used by) financing activities: | |||
Proceeds from issuance of long-term debt, net | 0 | 743,391 | 309,279 |
Repayments of long-term debt | (389,756) | (328,594) | (368,527) |
Debt issuance costs | (1,800) | (3,064) | (2,830) |
Debt extinguishment costs | (97) | (13,642) | (13,128) |
Proceeds from accounts receivable facilities | 330,061 | 440,236 | 296,586 |
Repayments under accounts receivable facilities | (349,015) | (433,936) | (269,858) |
Treasury stock acquired | (101,406) | (161,880) | 0 |
Tax withholdings related to share settlements, net of purchase plans | (12,539) | (9,457) | (3,166) |
Dividends | (74,936) | (67,749) | (57,766) |
Proceeds from Noncontrolling Interests | 9 | 0 | 20 |
Net cash flows from (used by) financing activities | (599,479) | 165,305 | (109,390) |
Effect of exchange rate changes on cash | 7,077 | (2,785) | (790) |
Increase (decrease) in cash and cash equivalents | (83,526) | 178,114 | (43,835) |
Cash, restricted cash and cash equivalents at beginning of period | 679,243 | 501,129 | 544,964 |
Cash, restricted cash and cash equivalents at end of period | 595,717 | 679,243 | 501,129 |
Supplemental information: | |||
Cash paid for income taxes | 199,883 | 229,316 | 140,950 |
Cash paid for interest | 64,431 | 47,329 | 58,325 |
Noncash activities: | |||
Liabilities related to additions of property, plant and equipment | 31,379 | 55,648 | 39,899 |
Cash and cash equivalents | 592,332 | 672,596 | 497,745 |
Restricted cash | $ 3,385 | $ 6,647 | $ 3,384 |
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 | Treasury Stock | Noncontrolling Interests |
Beginning balance at Aug. 31, 2020 | $ 1,889,413 | $ 1,290 | $ 358,912 | $ (103,764) | $ 1,807,826 | $ (175,063) | $ 212 |
Beginning balance, shares at Aug. 31, 2020 | 129,060,664 | ||||||
Beginning balance, treasury stock, shares at Aug. 31, 2020 | (9,839,759) | ||||||
Net earnings | 412,865 | 412,865 | |||||
Other comprehensive income (loss) | 18,944 | 18,944 | |||||
Cash dividends | $ (57,766) | (57,766) | |||||
Treasury stock acquired (in shares) | 0 | ||||||
Issuance of stock under incentive and purchase plans, net of forfeitures | $ (3,166) | (25,647) | $ 22,481 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 1,365,684 | ||||||
Stock-based compensation | 29,380 | 29,380 | |||||
Noncontrolling Interest, Increase From Contribution | 20 | 20 | |||||
Reclassification of share-based liability awards | 5,419 | 5,419 | |||||
Ending balance at Aug. 31, 2021 | 2,295,109 | $ 1,290 | 368,064 | (84,820) | 2,162,925 | $ (152,582) | 232 |
Ending balance, shares at Aug. 31, 2021 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at Aug. 31, 2021 | (8,474,075) | ||||||
Net earnings | 1,217,262 | 1,217,262 | |||||
Other comprehensive income (loss) | (29,631) | (29,631) | |||||
Cash dividends | $ (67,749) | (67,749) | |||||
Treasury stock acquired (in shares) | (4,496,628) | (4,496,628) | |||||
Treasury stock acquired | $ (161,880) | $ (161,880) | |||||
Issuance of stock under incentive and purchase plans, net of forfeitures | (9,457) | (28,072) | $ 18,615 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 1,406,092 | ||||||
Stock-based compensation | 33,684 | 33,684 | |||||
Reclassification of share-based liability awards | 9,091 | 9,091 | |||||
Ending balance at Aug. 31, 2022 | $ 3,286,429 | $ 1,290 | 382,767 | (114,451) | 3,312,438 | $ (295,847) | 232 |
Ending balance, shares at Aug. 31, 2022 | 129,060,664 | 129,060,664 | |||||
Ending balance, treasury stock, shares at Aug. 31, 2022 | (11,564,611) | (11,564,611) | |||||
Net earnings | $ 859,760 | 859,760 | |||||
Other comprehensive income (loss) | 110,673 | 110,673 | |||||
Cash dividends | $ (74,936) | (74,936) | |||||
Treasury stock acquired (in shares) | (2,309,452) | (2,309,452) | |||||
Treasury stock acquired | $ (101,406) | $ (101,406) | |||||
Issuance of stock under incentive and purchase plans, net of forfeitures | (12,539) | (41,219) | $ 28,680 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 1,328,826 | ||||||
Stock-based compensation | 43,434 | 43,434 | |||||
Noncontrolling Interest, Increase From Contribution | 9 | 9 | |||||
Reclassification of share-based liability awards | 9,690 | 9,690 | |||||
Ending balance at Aug. 31, 2023 | $ 4,121,114 | $ 1,290 | $ 394,672 | $ (3,778) | $ 4,097,262 | $ (368,573) | $ 241 |
Ending balance, shares at Aug. 31, 2023 | 129,060,664 | 129,060,664 | |||||
Ending balance, treasury stock, shares at Aug. 31, 2023 | (12,545,237) | (12,545,237) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share | $ 0.64 | $ 0.56 | $ 0.48 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations CMC is an innovative solutions provider helping build a stronger, safer and more sustainable world. Through an extensive manufacturing network principally located in the United States ("U.S.") and Central Europe, we offer products and technologies to meet the critical reinforcement needs of the global construction sector. CMC’s solutions support construction across a wide variety of applications, including infrastructure, non-residential, residential, industrial and energy generation and transmission. The Company has two reportable segments: North America and Europe. North America The North America segment provides a diverse offering of products and solutions to support the construction industry. The North America segment is primarily composed of a vertically integrated network of recycling facilities, steel mills and fabrication operations located in the U.S., as well as facilities that provide construction-related solutions to serve markets that are complementary to our vertically integrated operations. 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 general 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 The Europe segment is primarily composed of a vertically integrated network of recycling facilities, an electric arc furnace ("EAF") mini mill and fabrication operations located in Poland. The steel products manufactured by this segment include rebar, merchant bar and wire rod as well as semi-finished billets. In addition, the downstream products manufactured by this segment's fabrication operations include fabricated rebar, fabricated mesh, assembled rebar cages and other fabricated rebar by-products. In addition, the Europe segment also has facilities that provide construction-related solutions, such as Tensar products, to serve complementary markets to our vertically integrated operations. The Europe segment's products are sold primarily to fabricators, manufacturers, distributors and construction companies. 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 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, derivative instruments 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, downstream products and construction-related solutions and (ii) installation services performed 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, steel products and construction-related solutions in the North America and Europe segments and downstream products in the Europe segment 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 in the North America segment not discussed below is recognized equal to billing under an available practical expedient. Each fabricated rebar 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 rebar 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 rebar and installation services. Revenue from fabricated rebar 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 rebar. If total estimated 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 for the accounts receivable we estimate will not be collected based on market conditions, customers' financial condition and other factors. Historically, these allowances have not been material. 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 14% and 16% of total receivables at August 31, 2023 and 2022, respectively, were financially assured. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the weighted average cost method. Adjustments to inventory may be due to changes in price levels, assumptions about market conditions, obsolescence, damage, physical deterioration and other causes. Adjustments required to reduce the carrying value of inventory to net realizable value are recorded as a charge to cost of goods sold within the consolidated statements of earnings. Elements of cost in finished goods inventory in addition to the cost of material include depreciation, utilities, consumable production inputs, 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 are 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 estimated 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 estimated undiscounted future cash flows, the excess of the net carrying 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. During 2023, historical and current period operating losses were determined to be triggering events for three long-lived asset groups associated with downstream fabricated rebar operations. The Company reviewed the undiscounted future cash flows for the long-lived asset groups for recoverability, which indicated that the net carrying values of certain right-of-use ("ROU") assets included in one long-lived asset group were not recoverable. Therefore, such ROU assets were evaluated for impairment by comparing the estimated fair values of the ROU assets to their net carrying values, which resulted in a non-cash impairment of $3.5 million during the fourth quarter of 2023, included in asset impairments in the consolidated statement of earnings. 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 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's 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 include leases with an initial term of twelve months or less in the ROU asset or lease liability balances. 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 ("SG&A") 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 by deducting the grant in arriving at the carrying amount of the asset on the consolidated balance sheets. Non-monetary grants are recognized at fair value. The Company recognizes the grant in profit or loss over the life of the depreciable asset as a reduction to depreciation expense. Grants related to non-depreciable assets may require the fulfillment of certain obligations and, in such cases, would be recognized in profit or loss over the periods that bear the cost of meeting the obligations. As an example, a grant of land that is conditional upon constructing a building on the site is recognized as a reduction to depreciation expense over the life of the building. 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 in profit or loss on a systematic basis upon meeting the recognition criteria specified in the grants and during the periods when the expenses the grants intend to compensate for are incurred. During 2023 and 2022, the Company was awarded $9.5 million and $15.5 million, respectively, in government grants related to income as part of the compensation scheme for energy-intensive sectors and sub-sectors established by the Energy Regulatory Office in Poland (the "Poland Compensation Scheme Act" or "PCSA"). The purpose of the PCSA in each year was to provide aid to energy-intensive companies to offset indirect costs of rising carbon emission rights included in energy costs. The amount of government assistance awarded by the PCSA in each year was dependent upon the Company meeting certain electricity consumption thresholds and the number of other applicants. The government assistance recognized in 2023 and 2022 under the PCSA is not subject to recapture. The PCSA grants are recognized in the Europe segment and were recorded as a reduction to cost of goods sold in the Company's consolidated statements of earnings. During 2023, the Company was awarded $4.3 million in government grants related to income as part of the 2022 Polish state aid program for rising electricity and natural gas prices (the "2022 Energy Aid Program"). The 2022 Energy Aid Program was established by the Polish Ministry of Development and Technology to mitigate the effects of sudden increases in electricity and natural gas prices in Poland for companies who met required energy intensity and sectorial conditions and experienced certain financial metrics in calendar year 2022 compared to the prior year. The full amount of the Company's 2022 Energy Aid Program grant was received in 2023 and is not subject to recapture. The 2022 Energy Aid Program grant was recognized in the Europe segment and recorded as a reduction to cost of goods sold in the Company's consolidated statement of earnings. During 2023, the Company entered into an agreement with the West Virginia Economic Development Authority (the "WVEDA") to permanently finance a portion of the costs to construct the Company's fourth micro mill, which is under development in Berkeley County, West Virginia. Under this agreement, the Company can receive up to $75.0 million in the aggregate of disbursements in the form of a forgivable loan for eligible costs incurred from June 21, 2023 through June 20, 2027 (the "Completion Date"). Eligible costs include the acquisition of land and buildings, the acquisition and installation of machinery and equipment and necessary construction costs. The Company anticipates receiving disbursements over this period upon achieving certain capital investment and employment thresholds. Amounts received under the agreement are subject to recapture in the event that the Company fails to achieve certain minimum investment and employment thresholds prior to the Completion Date. The Company has determined that amounts received under the agreement are grants related to assets. During 2023, the Company received $5.0 million in cumulative benefits from the WVEDA as a result of meeting certain investment thresholds; amounts received were recognized in the North America segment and reduced construction in process in the Company's consolidated balance sheet as of August 31, 2023. Goodwill and Other Intangible Assets Goodwill and other indefinite-lived intangible assets are tested for impairment annually as of the first day of the Company's fourth quarter, or more frequently if events or circumstances indicate that impairment may be possible. To evaluate goodwill and other indefinite-lived intangible assets for impairment, the Company may use qualitative assessments to determine whether it is more likely than not that the fair value of a reporting unit, including goodwill, or an indefinite-lived intangible asset is less than its carrying amount. The qualitative assessments consider multiple factors, including the current operating environment, historical and future financial performance and industry and market conditions. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, additional quantitative testing is performed. The Company may elect to bypass the qualitative assessment and instead perform a quantitative impairment test to calculate the fair value of the reporting unit in comparison to its associated carrying value. The Company's reporting units represent an operating segment or one level below an operating segment. When performing a quantitative impairment test, 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 earnings derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. 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. When estimating the fair value of indefinite-lived intangible assets using a quantitative approach, the Company uses an income approach to calculate the fair value of the indefinite-lived intangible assets using a relief from royalty method. Significant inputs to measure the fair value of the indefinite-lived intangible assets include projected revenue growth rates, royalty rates and discount rates. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives and are tested 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 either 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 12, 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 foreign operations is the local currency of each respective country. Translation adjustments are reported as a component of accumulated other comprehensive income or loss. Transactions denominated in currencies other than the functional currency yielded a loss of $12.1 million in 2023, a gain of $9.6 million in 2022 and an immaterial gain in 2021. 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. 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 Issued and Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires that an acquirer recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This standard is effective for annual periods beginning after December 15, 2022, including interim periods therein, with early adoption permitted. The guidance will be applied prospectively to acquisitions occurring on or after the effective date. The Company will continue to evaluate the impact of this guidance, which will depend on the contract assets and liabilities acquired in future business combinations. |
CHANGES IN BUSINESS
CHANGES IN BUSINESS | 12 Months Ended |
Aug. 31, 2023 | |
Business Combinations [Abstract] | |
CHANGES IN BUSINESS | NOTE 2. CHANGES IN BUSINESS 2023 Acquisitions On September 15, 2022, the Company completed the acquisition of Advanced Steel Recovery, LLC ("ASR"), a supplier of recycled ferrous metals located in Southern California. ASR's primary operations include processing and brokering capabilities that source material for sale into both the domestic and export markets. On November 14, 2022, the Company completed the acquisition of a Galveston, Texas area metals recycling facility and related assets (collectively, "Kodiak") from Kodiak Resources, Inc. and Kodiak Properties, L.L.C. On March 3, 2023, the Company completed the acquisition of all of the assets of Roane Metals Group, LLC ("Roane"), a supplier of recycled metals with two facilities located in eastern Tennessee. The majority of volumes processed by Roane relate to obsolete ferrous scrap metals to be consumed by the Company's steel mill operations. On March 17, 2023, the Company completed the acquisition of Tendon Systems, LLC ("Tendon"), a leading provider of post-tensioning, barrier cable and concrete restoration solutions to the southeastern U.S. On May 1, 2023, the Company completed the acquisition of all of the assets of BOSTD America, LLC ("BOSTD"), a geogrid manufacturing facility located in Blackwell, Oklahoma. Prior to the acquisition, BOSTD produced several product lines for the Company's Tensar operations under a contract manufacturing arrangement. On July 12, 2023, the Company completed the acquisition of EDSCO Fasteners, LLC ("EDSCO"), a leading provider of anchoring solutions for the electrical transmission market, with four manufacturing facilities located in North Carolina, Tennessee, Texas and Utah. The acquisitions of ASR, Kodiak, Roane, Tendon, BOSTD and EDSCO (collectively, the "2023 Acquisitions") are not material individually, or in the aggregate, to the Company's financial position as of August 31, 2023 or results of operations for the year ended August 31, 2023, and therefore, pro forma operating results and other disclosures for the 2023 Acquisitions are not presented. Operating results for the 2023 Acquisitions are presented within the Company's North America reportable segment. Tensar Acquisition On April 25, 2022 (the "Tensar Acquisition Date"), the Company completed the acquisition of TAC Acquisition Corp. ("Tensar"). The total cash purchase price, net of $19.6 million cash acquired, was approximately $550 million, and was funded through domestic cash on-hand. The results of operations from Tensar were reflected in the Company’s consolidated financial statements from the Tensar Acquisition Date. Tensar's net sales and earnings before income taxes included in the Company's consolidated statement of earnings and consolidated statement of comprehensive income in 2022 were $102.1 million and $3.2 million, respectively. The table below presents the fair values that were allocated to Tensar's assets and liabilities as of the Tensar Acquisition Date: (in thousands) Fair Value Cash and cash equivalents $ 19,551 Accounts receivable 37,741 Inventories 39,462 Prepaid and other current assets 12,528 Defined benefit pension plan 14,620 Property, plant and equipment 85,983 Intangible assets 260,500 Goodwill 186,805 Other noncurrent assets 19,660 Accounts payable (12,134) Accrued expenses and other payables (23,725) Current maturities of long-term debt (3,277) Deferred income taxes (45,055) Other noncurrent liabilities (16,347) Long-term debt (4,312) Total assets acquired and liabilities assumed $ 572,000 Pro Forma Supplemental Information Supplemental information on an unaudited pro forma basis is presented below as if the acquisition of Tensar occurred on September 1, 2020. The pro forma financial information is presented for comparative purposes only, based on certain factually supported 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, 2020. These results were not used as part of management's analysis of the financial results and performance of the Company. The pro forma adjustments do not reflect anticipated synergies, but rather include the nonrecurring impact of additional cost of sales from revalued inventory and the recurring income statement effects of fair value adjustments, such as depreciation and amortization. Further adjustments were made to remove the impact of Tensar's prior management fees, acquisition and integration expenses and interest on debt not assumed in the acquisition. The resulting tax effects of the business combination are also reflected below. Year Ended August 31, (in thousands) 2022 2021 Pro forma net sales $ 9,064,322 $ 6,957,903 Pro forma net earnings 1,238,174 416,904 The pro forma results presented above include, but are not limited to, adjustments to remove the impact of $8.7 million of acquisition and integration expenses from 2022 and reapportion $1.0 million of those costs incurred following the Tensar Acquisition Date to 2021, as well as reallocate $8.7 million of increased cost of goods sold in 2022 to 2021 as a result of the revaluation of inventory. The pro forma results also reflect increased amortization expense from acquired intangible assets of $8.1 million in 2022 and $12.4 million in 2021. Facility Disposition On September 29, 2021, the Company entered into a definitive agreement to sell the assets associated with its Rancho Cucamonga melting operations and an adjacent rebar fabrication facility ("the Rancho Cucamonga facilities"). On December 28, 2021, the sale of the Rancho Cucamonga facilities was completed for gross proceeds of $313.0 million, of which $22.0 million was used to purchase like-kind assets in 2022 per the terms of the sale agreement. Due to these closures, the Company recorded $13.8 million of expenses in 2021 related to asset impairments, severance, environmental obligations and vendor agreement terminations |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Aug. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) ("AOCI") was comprised of the following: (in thousands) Foreign Currency Translation Derivatives Defined Benefit Pension Plans Total AOCI Balance, September 1, 2020 $ (87,933) $ (11,334) $ (4,497) $ (103,764) Other comprehensive income (loss) before reclassifications (1) (17,747) 35,492 3,576 21,321 Reclassification for gain (2) — (2,377) — (2,377) Net other comprehensive income (loss) (17,747) 33,115 3,576 18,944 Balance at August 31, 2021 (105,680) 21,781 (921) (84,820) Other comprehensive income (loss) before reclassifications (1) (140,217) 138,634 (5,875) (7,458) Reclassification for gain (2) — (22,173) — (22,173) Net other comprehensive income (loss) (140,217) 116,461 (5,875) (29,631) Balance at August 31, 2022 (245,897) 138,242 (6,796) (114,451) Other comprehensive income (loss) before reclassifications (1) 119,852 6,395 (7,985) 118,262 Reclassification for (gain) loss (2) — (9,380) 1,791 (7,589) Net other comprehensive income (loss) 119,852 (2,985) (6,194) 110,673 Balance at August 31, 2023 $ (126,045) $ 135,257 $ (12,990) $ (3,778) __________________________________ (1) Other comprehensive income before reclassifications from derivatives is presented net of income tax expense of $1.1 million, $33.0 million and $6.7 million for 2023, 2022 and 2021, respectively. Other comprehensive income (loss) before reclassifications from defined benefit pension plans is presented net of income tax expense (benefit) of $(3.9 million), $(2.6 million) and $0.9 million for 2023, 2022 and 2021, respectively. (2) Reclassifications for gains from derivatives included in net earnings are primarily recorded in cost of goods sold in the consolidated statements of earnings and are presented net of income tax expense of $2.2 million, $5.3 million and $0.4 million, for 2023, 2022 and 2021, respectively. Reclassifications for losses from defined benefit pension plans included in net earnings are recorded in SG&A expenses in the consolidated statement of earnings and are presented net of immaterial income tax benefits for all periods presented. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Aug. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 4. REVENUE RECOGNITION Revenue from Contracts with Customers Revenue related to raw materials, steel products and construction-related solutions in the North America and Europe segments and downstream products in the Europe segment 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 in the North America segment not discussed below is recognized equal to billing under an available practical expedient. See Note 19, Operating Segments, for further information about disaggregated revenue by our major product lines. Each fabricated rebar contract sold by the North America segment represents a single performance obligation. Revenue from contracts where the Company provides fabricated rebar and installation services is recognized over time using an input measure, and these contracts represented 7%, 8% and 10% of net sales in the North America segment in 2023, 2022 and 2021, respectively. Revenue from fabricated rebar contracts where the Company does not provide installation services is recognized over time using an output measure, and these contracts represented 11% of net sales in the North America segment in 2023, and 9% in 2022 and 2021. The following table provides information about assets and liabilities from contracts with customers: (in thousands) August 31, 2023 August 31, 2022 Contract assets (included in accounts receivable) $ 67,641 $ 73,037 Contract liabilities (included in accrued expenses and other payables) 28,377 27,567 The entire contract liability as of August 31, 2022 was recognized in 2023. Remaining Performance Obligations As of August 31, 2023, revenue totaling $920.9 million has been allocated to remaining performance obligations in the North America segment related to contracts where revenue is recognized using an input or output measure. Of this amount, the Company estimates that approximately 80% of the remaining performance obligations will be recognized during 2024 and the remainder will be recognized during 2025. The duration of all other contracts in the North America and Europe segments are typically less than one year. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Aug. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5. INVENTORIES The majority of the Company's inventories are in the form of semi-finished and finished steel products. Under the Company’s vertically integrated business model, steel products are sold to external customers in various stages, from semi-finished billets through fabricated steel, leading these categories to be combined as finished goods. The components of inventories were as follows: (in thousands) August 31, 2023 August 31, 2022 Raw materials $261,619 $ 271,756 Work in process 6,844 9,446 Finished goods 767,119 888,494 Total $ 1,035,582 $ 1,169,696 Inventory write-downs were $11.3 million for 2023, and were primarily recorded in the Europe segment. Inventory write-downs were immaterial for 2022 and 2021. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Aug. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill by reportable segment is detailed in the following table: (in thousands) North America Europe Consolidated Goodwill, gross: Balance, September 1, 2021 $ 71,941 $ 4,390 $ 76,331 Acquisitions 144,118 42,687 186,805 Foreign currency translation — (3,962) (3,962) Balance at August 31, 2022 216,059 43,115 259,174 Acquisitions 135,382 — 135,382 Foreign currency translation — 1,446 1,446 Balance at August 31, 2023 351,441 44,561 396,002 Accumulated impairment: Balance, September 1, 2021 (10,036) (158) (10,194) Foreign currency translation — 29 29 Balance at August 31, 2022 (10,036) (129) (10,165) Foreign currency translation — (16) (16) Balance at August 31, 2023 (10,036) (145) (10,181) Goodwill, net: Balance, September 1, 2021 61,905 4,232 66,137 Acquisitions 144,118 42,687 186,805 Foreign currency translation — (3,933) (3,933) Balance at August 31, 2022 206,023 42,986 249,009 Acquisitions 135,382 — 135,382 Foreign currency translation — 1,430 1,430 Balance at August 31, 2023 $ 341,405 $ 44,416 $ 385,821 The change in goodwill within the North America segment from August 31, 2022 to August 31, 2023 was due to the 2023 Acquisitions. See Note 2, Changes in Business, for information on the 2023 Acquisitions. During 2023, 2022 and 2021, the annual goodwill impairment analyses, which are performed as of the first day of the Company's fourth quarter (the "annual impairment test date"), did not result in any impairment charges. For the year ended August 31, 2023, the Company performed qualitative tests for three reporting units consisting of $49.8 million of goodwill as of the 2023 annual impairment test date and quantitative tests for three reporting units consisting of $292.3 million of goodwill as of the 2023 annual impairment test date. The difference in the balance of goodwill between the 2023 annual impairment test date and August 31, 2023 was due to the acquisition of EDSCO and foreign currency translation adjustments. The results of the qualitative and quantitative tests indicated it was more likely than not that the fair value of all reporting units with goodwill exceeded their carrying values. Other indefinite-lived intangible assets consisted of the following: (in thousands) August 31, 2023 August 31, 2022 Trade names $ 54,056 $ 53,633 In-process research and development 2,400 2,400 Non-compete agreements 750 750 Total $ 57,206 $ 56,783 During 2023 and 2022, the Company did not record any indefinite-lived intangible asset impairment charges. As of the 2023 annual impairment test date, the Company had $57.1 million of indefinite-lived intangible assets, of which $53.8 million were tested for impairment using a quantitative approach. Based on the quantitative tests performed, the Company concluded it to be more likely than not that the estimated fair values of the indefinite-lived intangible assets were greater than their respective carrying values. The change in the balance of intangible assets with indefinite lives from August 31, 2022 to August 31, 2023 and from the 2023 annual impairment test date to August 31, 2023 was due to foreign currency translation adjustments. Other intangible assets subject to amortization are detailed in the following table: August 31, 2023 August 31, 2022 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Developed technologies $ 150,445 $ 25,228 $ 125,217 $ 147,040 $ 6,485 $ 140,555 Customer relationships 74,582 7,606 66,976 53,115 2,116 50,999 Patents 7,203 5,570 1,633 7,203 4,596 2,607 Perpetual lease rights 5,984 910 5,074 3,584 744 2,840 Trade names 3,287 1,129 2,158 3,212 764 2,448 Non-compete agreements 2,300 1,502 798 3,050 1,135 1,915 Other 224 125 99 101 99 2 Total $ 244,025 $ 42,070 $ 201,955 $ 217,305 $ 15,939 $ 201,366 The acquired assets from the Tendon and EDSCO acquisitions included intangible assets for customer relationships with fair values of $8.9 million and $12.0 million, respectively. The fair value of the intangible assets for customer relationships were each calculated using an income approach, under the with-and-without method, which considers opportunity costs associated with lost profits in the absence of the existing customer bases. The intangible assets for customer relationships were assigned useful lives of five years. See Note 2, Changes in Business, for additional information on the Tendon and EDSCO acquisitions. The foreign currency translation adjustments related to the intangible assets subject to amortization were immaterial for all periods presented above. Amortization expense for intangible assets was $25.9 million and $10.0 million in 2023 and 2022, respectively, of which $18.7 million and $6.4 million, respectively, was recorded in cost of goods sold and $7.2 million and $3.6 million, respectively, was recorded in SG&A expenses in the consolidated statements of earnings. Amortization expense for intangible assets was $2.1 million in 2021, all of which was recorded in SG&A expenses in the consolidated statement of earnings. Estimated amortization expense for the next five years is as follows: Year Ended August 31, (in thousands) 2024 $ 28,195 2025 26,464 2026 25,250 2027 25,142 2028 23,484 |
LEASES
LEASES | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Operating Leases | NOTE 7. LEASES The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's consolidated balance sheets: (in thousands) Classification in Consolidated Balance Sheets August 31, 2023 August 31, 2022 Assets: Operating assets Other noncurrent assets $ 160,767 $ 138,937 Finance assets Property, plant and equipment, net 104,537 63,702 Total leased assets $ 265,304 $ 202,639 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 34,445 $ 31,792 Long-term Other noncurrent liabilities 129,800 111,150 Total operating lease liabilities 164,245 142,942 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 28,037 19,340 Long-term Long-term debt 67,433 39,196 Total finance lease liabilities 95,470 58,536 Total lease liabilities $ 259,715 $ 201,478 The components of lease cost were as follows: Year Ended August 31, (in thousands) 2023 2022 2021 Operating lease expense $ 40,093 $ 35,111 $ 32,752 Finance lease expense: Amortization of assets 16,574 13,302 13,050 Interest on lease liabilities 3,642 2,105 2,213 Total finance lease expense 20,216 15,407 15,263 Variable and short-term lease expense 20,810 20,856 20,096 Total lease expense $ 81,119 $ 71,374 $ 68,111 The weighted average remaining lease terms and discount rates for operating and finance leases are presented in the following table: August 31, 2023 August 31, 2022 Weighted average remaining lease term (years): Operating leases 5.6 5.3 Finance leases 4.1 3.4 Weighted average discount rate: Operating leases 4.730 % 4.076 % Finance leases 4.926 % 4.125 % Cash flow and other information related to leases is included in the following table: Year Ended August 31, (in thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 40,645 $ 35,697 $ 31,686 Operating cash outflows from finance leases 3,642 2,093 2,228 Financing cash outflows from finance leases 22,837 17,821 16,016 ROU assets obtained in exchange for lease obligations: Operating leases $ 55,588 $ 59,035 $ 25,888 Finance leases 59,499 24,333 18,006 Future maturities of lease liabilities at August 31, 2023 are presented in the following table: (in thousands) Operating Leases Finance Leases 2024 $ 41,430 $ 32,051 2025 36,446 25,859 2026 31,278 19,394 2027 24,579 16,086 2028 16,449 9,104 Thereafter 41,843 3,239 Total lease payments 192,025 105,733 Less imputed interest (27,780) (10,263) Present value of lease liabilities $ 164,245 $ 95,470 As of August 31, 2023, the Company has additional leases that have not yet commenced, primarily for vehicles, with aggregate fixed payments over their terms of approximately $10.6 million, with $7.9 million to commence in 2024 and $2.7 million to commence in 2025. These leases have noncancellable terms of 4 to 6 years. |
Finance Leases | NOTE 7. LEASES The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's consolidated balance sheets: (in thousands) Classification in Consolidated Balance Sheets August 31, 2023 August 31, 2022 Assets: Operating assets Other noncurrent assets $ 160,767 $ 138,937 Finance assets Property, plant and equipment, net 104,537 63,702 Total leased assets $ 265,304 $ 202,639 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 34,445 $ 31,792 Long-term Other noncurrent liabilities 129,800 111,150 Total operating lease liabilities 164,245 142,942 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 28,037 19,340 Long-term Long-term debt 67,433 39,196 Total finance lease liabilities 95,470 58,536 Total lease liabilities $ 259,715 $ 201,478 The components of lease cost were as follows: Year Ended August 31, (in thousands) 2023 2022 2021 Operating lease expense $ 40,093 $ 35,111 $ 32,752 Finance lease expense: Amortization of assets 16,574 13,302 13,050 Interest on lease liabilities 3,642 2,105 2,213 Total finance lease expense 20,216 15,407 15,263 Variable and short-term lease expense 20,810 20,856 20,096 Total lease expense $ 81,119 $ 71,374 $ 68,111 The weighted average remaining lease terms and discount rates for operating and finance leases are presented in the following table: August 31, 2023 August 31, 2022 Weighted average remaining lease term (years): Operating leases 5.6 5.3 Finance leases 4.1 3.4 Weighted average discount rate: Operating leases 4.730 % 4.076 % Finance leases 4.926 % 4.125 % Cash flow and other information related to leases is included in the following table: Year Ended August 31, (in thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 40,645 $ 35,697 $ 31,686 Operating cash outflows from finance leases 3,642 2,093 2,228 Financing cash outflows from finance leases 22,837 17,821 16,016 ROU assets obtained in exchange for lease obligations: Operating leases $ 55,588 $ 59,035 $ 25,888 Finance leases 59,499 24,333 18,006 Future maturities of lease liabilities at August 31, 2023 are presented in the following table: (in thousands) Operating Leases Finance Leases 2024 $ 41,430 $ 32,051 2025 36,446 25,859 2026 31,278 19,394 2027 24,579 16,086 2028 16,449 9,104 Thereafter 41,843 3,239 Total lease payments 192,025 105,733 Less imputed interest (27,780) (10,263) Present value of lease liabilities $ 164,245 $ 95,470 As of August 31, 2023, the Company has additional leases that have not yet commenced, primarily for vehicles, with aggregate fixed payments over their terms of approximately $10.6 million, with $7.9 million to commence in 2024 and $2.7 million to commence in 2025. These leases have noncancellable terms of 4 to 6 years. |
CREDIT ARRANGEMENTS
CREDIT ARRANGEMENTS | 12 Months Ended |
Aug. 31, 2023 | |
Debt Disclosure [Abstract] | |
CREDIT ARRANGEMENTS | NOTE 8. CREDIT ARRANGEMENTS Long-term debt was as follows: Weighted Average Interest Rate as of August 31, 2023 Year Ended August 31, (in thousands) 2023 2022 2023 Notes 4.875% $ — $ 330,000 2030 Notes 4.125% 300,000 300,000 2031 Notes 3.875% 300,000 300,000 2032 Notes 4.375% 300,000 300,000 Series 2022 Bonds, due 2047 4.000% 145,060 145,060 Poland Term Loan — — 32,439 Short-term borrowings (1) 8,419 26,390 Other 4.547% 16,042 21,278 Finance leases 4.926% 95,470 58,536 Total debt 1,164,991 1,513,703 Less unamortized debt issuance costs (14,840) (16,496) Plus unamortized bond premium 4,646 4,838 Total amounts outstanding 1,154,797 1,502,045 Less current maturities of long-term debt and short-term borrowings (40,513) (388,796) Long-term debt $ 1,114,284 $ 1,113,249 __________________________________ (1) The weighted average interest rate of short-term borrowings was 7.800% and 7.260% as of August 31, 2023 and 2022, respectively. Senior Notes In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 2023 (the "2023 Notes"). As of August 31, 2022, the 2023 Notes were included in current maturities of long-term debt and short-term borrowings in the consolidated balance sheet. In November 2022, the Company repurchased $115.9 million in aggregate principal amount of the 2023 Notes through a cash tender offer and recognized an immaterial loss on debt extinguishment. On May 15, 2023, the Company repaid the remaining $214.1 million outstanding aggregate principal amount of the 2023 Notes, plus interest, at maturity. In January 2022, the Company issued $300.0 million of 4.125% Senior Notes due January 2030 (the "2030 Notes") and $300.0 million of 4.375% Senior Notes due March 2032 (the "2032 Notes"). Aggregate issuance costs associated with the 2030 Notes and 2032 Notes were approximately $9.4 million. Interest on the 2030 Notes is payable semiannually on January 15 and July 15. Interest on the 2032 Notes is payable semiannually on March 15 and September 15. In February 2021, the Company issued $300.0 million of 3.875% Senior Notes due February 2031 (the "2031 Notes") and accepted for purchase all of the previously outstanding $350.0 million of 5.750% Senior Notes due April 2026 (the "2026 Notes") through a cash tender offer. Issuance costs associated with the 2031 Notes and loss on debt extinguishment recognized related to the retirement of the 2026 Notes were $4.9 million and $16.8 million, respectively, in 2021. Interest on the 2031 Notes is payable semiannually on February 15 and August 15. Series 2022 Bonds In February 2022, the Company announced the issuance of $145.1 million in original aggregate principal amount of tax-exempt bonds (the "Series 2022 Bonds") by the Industrial Development Authority of the County of Maricopa (the "MCIDA"). The Series 2022 Bonds were priced to yield 3.5% and provided gross proceeds of $150.0 million. The proceeds were loaned to the Company pursuant to a loan agreement between the Company and the MCIDA. During 2022, the full amount of the proceeds was used to fund a portion of the acquisition, construction and equipping of the Company’s third micro mill. Issuance costs associated with the Series 2022 Bonds were $3.1 million. The Series 2022 Bonds accrue interest at 4.0%, payable semiannually on April 15 and October 15, and have a maturity date in October 2047. Credit Facilities In October 2022, the Company entered into a Sixth Amended and Restated Credit Agreement (as amended, the "Credit Agreement") with a revolving credit facility (the "Revolver") of $600.0 million and a maturity date in October 2027, replacing the Fifth Amended and Restated Credit Agreement with a revolving credit facility of $400.0 million and a maturity date in March 2026. The maximum availability under the Revolver can be increased to $850.0 million with bank approval. The Credit Agreement also provides for a delayed draw senior secured term loan facility with a maximum principal amount of $200.0 million (the “Term Loan”). The Term Loan is coterminous with the Revolver. As of August 31, 2023, the Company had no amounts drawn under the Term Loan. The Company's obligations under the Credit Agreement are collateralized by its North America inventory. 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 or the previous revolving credit facility at August 31, 2023 or 2022. The availability under the Revolver and the previous revolving credit facility, as applicable, was reduced by outstanding stand-by letters of credit of $0.9 million and $1.4 million at August 31, 2023 and 2022, respectively. Under the Credit Agreement, the Company is required to comply with certain 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 Secured Overnight Financing Rate ("SOFR"). At August 31, 2023, the Company was in compliance with all financial covenants contained in its credit arrangements. At August 31, 2023, the Company's interest coverage ratio was 34.79 to 1.00 and the Company's debt to capitalization ratio was 0.22 to 1.00. In November 2022, the Company repaid the outstanding principal on its term loan facility (the "Poland Term Loan") through its subsidiary, CMC Poland Sp. z.o.o. ("CMCP"). At August 31, 2023, there was no amount outstanding or available, compared to PLN 152.4 million, or $32.4 million, outstanding and available under the facility as of August 31, 2022. 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. In 2023, the Company amended certain terms of its credit facilities in Poland through CMCP, increasing the total credit facilities from PLN 300.0 million, or $63.9 million, at August 31, 2022, to PLN 600.0 million, or $145.4 million, at August 31, 2023. The facilities have an expiration date in April 2026. CMCP had no borrowings or repayments under its credit facilities in 2023 and 2022, and at August 31, 2023 and 2022, no amounts were outstanding under these facilities. 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 $16.3 million and $1.0 million at August 31, 2023 and 2022, respectively. The scheduled maturities of the Company's long-term debt, excluding obligations related to finance leases, are included in the table below. See Note 7, Leases, for scheduled maturities of finance leases. Year Ended August 31, (in thousands) 2024 $ 4,057 2025 1,877 2026 1,789 2027 1,782 2028 1,795 Thereafter 1,049,802 Total long-term debt, excluding finance leases 1,061,102 Less unamortized debt issuance costs (14,840) Plus unamortized bond premium 4,646 Total long-term debt outstanding, excluding finance leases $ 1,050,908 The Company capitalized $21.5 million, $11.9 million and $2.8 million of interest in the cost of property, plant and equipment during 2023, 2022 and 2021, respectively. Accounts Receivable Facilities The Company's subsidiary in Poland, CMCP, transfers trade accounts receivable to financial institutions without recourse (the "Poland Facility"). The Poland Facility has a facility limit of PLN 288.0 million, or $69.8 million and $61.3 million as of August 31, 2023 and August 31, 2022, respectively. Advances taken under the Poland Facility incur interest based on the Warsaw Interbank Offered Rate ("WIBOR") plus a margin. The transfer of receivables under the Poland Facility does not qualify to be accounted for as sales. Therefore, any advances outstanding under this program are recorded as debt on the Company's consolidated balance sheets. The Company had PLN 34.7 million, or $8.4 million, advance payments outstanding under the Poland Facility at August 31, 2023 compared to PLN 124.0 million, or $26.4 million, at August 31, 2022. |
NEW MARKETS TAX CREDIT TRANSACT
NEW MARKETS TAX CREDIT TRANSACTIONS | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
New Markets Tax Credit Transactions | NOTE 9. 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 ("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 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-year period, in the case of the USBCDC Investment Fund 156, LLC and Twain Investment Fund 249, LLC or an eight-year period, in the case of Twain Investment Fund 219, LLC (each of such periods, an "Exercise Period"). As of August 31, 2022, $17.7 million and $9.5 million of USBCDC’s contributions, which represented deferred revenue to the Company, were included in accrued expenses and other payables and other noncurrent liabilities in the consolidated balance sheet, respectively. During December 2022, the Exercise Period on the first NMTC transaction, the USBCDC Investment Fund 156, ended, and therefore, the corresponding $17.7 million USBCDC capital contribution was recognized in net sales during the year ended August 31, 2023. The Exercise Period on the Twain Investment Fund 249 will end on July 26, 2024, and therefore, the corresponding $6.7 million USBCDC capital contribution was reclassified to accrued expenses and other payables in the Company's consolidated balance sheet as of August 31, 2023. The $2.8 million of USBCDC capital contribution for Twain Investment Fund 219 remained in other noncurrent liabilities in the consolidated balance sheet as of August 31, 2023. Additionally, the $2.2 million of capital contributions to Twain Investment Fund 222 resulted in a $2.1 million QEI, which was classified as long-term debt in the Company's consolidated balance sheet as of August 31, 2022, and will mature in March 2024. The obligation represents the Company's maximum exposure to loss and was reclassified to current maturities of long-term debt and short-term borrowings as of August 31, 2023. The Company believes USBCDC will exercise the put options following the end of the respective remaining Exercise Periods. The value attributed to the put/call is immaterial. The Company is required to follow various regulations and contractual provisions that apply to the NMTC transactions. Non-compliance with applicable requirements could result in unrealized projected tax benefits and, therefore, could require the Company to indemnify USBCDC for any loss or recapture of NMTCs related to the financing until the Company's obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with these transactions. 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. Direct costs incurred in structuring the transactions were deferred and are recognized as expense over each Exercise Period. Incremental costs to maintain the structures during the compliance periods are recognized as incurred. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Aug. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 10. DERIVATIVES The Company's global operations and product lines expose it to risks from fluctuations in metal commodity prices, foreign currency exchange rates, interest rates and natural gas, electricity and other energy prices. One objective of the Company's risk management program is to mitigate these risks using derivative instruments. The Company enters into (i) metal commodity futures and forward contracts to mitigate the risk of unanticipated changes in net earnings 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) natural gas and electricity commodity derivatives to mitigate the risk related to price volatility of these commodities. The Company designates only those contracts which closely match the terms of the underlying transaction as hedges for accounting purposes. Certain foreign currency and commodity contracts were not designated as hedges for accounting purposes, although management believes they are essential economic hedges. The 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, 2023 and 2022, the notional values of the Company's commodity contract commitments were $456.4 million and $205.1 million, respectively. The increase in the notional value of the Company’s commodity contract commitments from August 31, 2022 to August 31, 2023 was due to the Company entering into additional Level 3 commodity derivative contracts as described in Note 11, Fair Value. At August 31, 2023 and 2022, the notional values of the Company's foreign currency contract commitments were $221.4 million and $253.5 million, respectively. The following table provides information regarding the Company's commodity contract commitments as of August 31, 2023: Commodity Position Total Aluminum Long 2,850 MT Aluminum Short 1,400 MT Copper Long 147 MT Copper Short 8,459 MT Electricity Long 3,312,000 MW(h) Natural Gas Long 5,270,500 MMBtu __________________________________ MT = Metric ton MW(h) = Megawatt hour MMBtu = Metric Million British thermal unit The following table summarizes the location and fair value amounts of the Company's derivative instruments reported in the consolidated balance sheets: (in thousands) Primary Location August 31, 2023 August 31, 2022 Derivative assets: Commodity Prepaid and other current assets $ 11,427 $ 26,180 Commodity Other noncurrent assets 184,261 134,667 Foreign exchange Prepaid and other current assets 1,898 1,296 Derivative liabilities: Commodity Accrued expenses and other payables $ 2,983 $ 1,110 Commodity Other noncurrent liabilities 1,085 150 Foreign exchange Accrued expenses and other payables 2,566 3,126 The following table summarizes activities related to the Company's derivatives not designated as cash flow hedging instruments recognized in the consolidated statements of earnings. All other activity related to the Company's derivatives not designated as cash flow hedging instruments was immaterial for the periods presented. Year Ended August 31, Gain (Loss) on Derivatives Not Designated as Hedging Instruments (in thousands) Primary Location 2023 2022 2021 Commodity Cost of goods sold $ (3,028) $ 15,862 $ (18,035) Foreign exchange SG&A expenses 12,265 (6,547) (3,674) The following table summarizes activities related to the Company's derivatives designated as cash flow hedging instruments recognized in the consolidated statements of comprehensive income and consolidated statements of earnings, respectively. Amounts presented do not include the effects of foreign currency translation adjustments. Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Other Comprehensive Income, Net of Income Taxes (in thousands) Amount of Gain Reclassified from AOCI into Earnings on Derivatives (in thousands) Year Ended August 31, Year Ended August 31, 2023 2022 2021 Primary Location 2023 2022 2021 Commodity $ 6,367 $ 138,534 $ 35,392 Cost of goods sold $ 11,325 $ 27,267 $ 2,378 Foreign exchange 28 100 100 SG&A expenses 244 244 555 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Aug. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 11. 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 1, Nature of Operations and 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) Total Quoted Prices in Significant Other Significant As of August 31, 2023: Assets: Investment deposit accounts (1) $ 508,227 $ 508,227 $ — $ — Commodity derivative assets (2) 195,689 1,264 — 194,425 Foreign exchange derivative assets (2) 1,898 — 1,898 — Liabilities: Commodity derivative liabilities (2) 4,068 4,068 — — Foreign exchange derivative liabilities (2) 2,566 — 2,566 — As of August 31, 2022: Assets: Investment deposit accounts (1) $ 572,384 $ 572,384 $ — $ — Commodity derivative assets (2) 160,847 17,347 — 143,500 Foreign exchange derivative assets (2) 1,296 — 1,296 — Liabilities: Commodity derivative liabilities (2) 1,260 1,260 — — Foreign exchange derivative liabilities (2) 3,126 — 3,126 — __________________________________ (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. Derivatives classified as Level 3 are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 10, Derivatives. As of August 31, 2022, the Company had one Level 3 commodity derivative. The Company entered into its second and third Level 3 commodity derivatives in September 2022 and January 2023, respectively, with the same counterparty as the first Level 3 commodity derivative. Both the second and third Level 3 commodity derivatives will begin to settle in January 2025. The fair value estimate of the Level 3 commodity derivatives are based on internally developed discounted cash flow models 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 (the "floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow models. Significantly higher or lower floating rates could have resulted in a material difference in our fair value measurement. The following table summarizes the floating rates used to measure the fair value of the Level 3 commodity derivatives during 2023 and 2022, which are applied uniformly across each of our Level 3 commodity derivatives: Floating Rate (PLN) Year Ended August 31, Low High Average 2023 480 855 630 2022 460 1,299 717 Below is a reconciliation of the beginning and ending balances of the Level 3 commodity derivatives recognized in the consolidated statements of comprehensive income. Amounts presented are before income taxes. The fluctuation in energy rates over time may cause volatility in the fair value estimate and is the primary reason for the unrealized gains in other comprehensive income in 2023, 2022 and 2021. (in thousands) Level 3 Commodity Derivatives Balance at September 1, 2020 $ (15,007) Unrealized holding gain (1) 43,798 Reclassification for gain included in net earnings (2) (2,378) Balance at August 31, 2021 26,413 Unrealized holding gain (1) 138,760 Reclassification for gain included in net earnings (2) (21,673) Balance at August 31, 2022 143,500 Unrealized holding gain (1) 62,706 Reclassification for gain included in net earnings (2) (11,781) Balance at August 31, 2023 $ 194,425 __________________________________ (1) Unrealized holding gains, net of foreign currency translation, less amounts reclassified are included in net unrealized holding gain (reclassification for realized gain) on derivatives in the consolidated statements of comprehensive income. (2) Gains included in net earnings are recorded in cost of goods sold in the consolidated statements of earnings. There were no material non-recurring fair value remeasurements in 2023 or 2022. The carrying values of the Company's short-term items, including documentary letters of credit and notes payable, approximate fair value. The carrying value and fair value of the Company's long-term debt, including current maturities, excluding other borrowings and finance leases, was $1.0 billion and $900.9 million, respectively, at August 31, 2023, and $1.4 billion and $1.2 billion, respectively, at August 31, 2022. The Company estimates these fair values based on Level 2 of the fair value hierarchy using indicated market values. The Company's other borrowings contain variable interest rates, and as a result, their carrying values approximate fair values. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 12. INCOME TAX The components of earnings before income taxes were as follows: Year Ended August 31, (in thousands) 2023 2022 2021 United States $ 1,095,099 $ 1,197,769 $ 413,616 Foreign 26,868 317,378 120,402 Total $ 1,121,967 $ 1,515,147 $ 534,018 The income taxes (benefit) included in the consolidated statements of earnings were as follows: Year Ended August 31, (in thousands) 2023 2022 2021 Current: United States $ 168,399 $ 122,334 $ 113,696 Foreign 6,089 63,912 25,642 State and local 32,916 20,228 19,458 Current taxes 207,404 206,474 158,796 Deferred: United States 46,008 81,162 (10,563) Foreign (847) (3,388) (2,512) State and local 9,642 13,637 (24,568) Deferred taxes 54,803 91,411 (37,643) Total income taxes $ 262,207 $ 297,885 $ 121,153 A reconciliation of the federal statutory rate to the Company's effective income tax rate, including material items impacting the effective income tax rate, is as follows: Year Ended August 31, (in thousands) 2023 2022 2021 Income tax expense at statutory rate $ 235,613 $ 318,181 $ 112,144 State and local taxes (1)(2) 33,621 26,753 (3,838) Research and development credit (2) (7,986) (13,102) (1,289) Foreign tax impairment on valuation of subsidiaries (3) (7,334) — (29,866) Change in valuation allowance 6,471 (447) 37,092 Global intangible low-taxed income (4)(5) (1,967) 685 17,263 Capital loss (6) — (34,736) — Nontaxable foreign interest (3) — 3 (14,617) Other 3,789 548 4,264 Income tax expense $ 262,207 $ 297,885 $ 121,153 Effective income tax rate 23.4 % 19.7 % 22.7 % __________________________________ (1) State and local taxes in 2021 includes a $19.9 million benefit related to the release of certain state valuation allowances. (2) 2023 and 2022 include impacts of uncertain tax positions. (3) Fully offset by a valuation allowance. (4) Amounts are net of adjustments resulting from differences between prior year estimates and amounts included in tax returns. (5) 2021 includes the tax effect of a gain recognized in connection with a global tax restructuring. (6) Resulted from a tax restructuring transaction. The Company plans to repatriate the current and future earnings from material jurisdictions within 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: August 31, (in thousands) 2023 2022 Deferred tax assets: Net operating losses and credits $ 298,624 $ 300,787 Capitalized research and development 45,669 — ROU operating lease liabilities 39,984 33,398 Deferred compensation and employee benefits 33,491 39,095 Reserves and other accrued expenses 16,510 11,730 Other 21,750 17,253 Total deferred tax assets 456,028 402,263 Valuation allowance for deferred tax assets (280,463) (268,547) Deferred tax assets, net 175,565 133,716 Deferred tax liabilities: Property, plant and equipment (351,900) (261,638) Intangible assets (44,168) (48,558) ROU operating lease assets (38,801) (32,444) Derivatives (35,992) (27,324) Other (11,453) (14,054) Total deferred tax liabilities (482,314) (384,018) Net deferred tax liabilities $ (306,749) $ (250,302) Net operating losses giving rise to deferred tax assets consist of $348.4 million of state net operating losses, $21.3 million of U.S. federal net operating losses and $946.6 million of foreign net operating losses that expire in varying amounts beginning in 2024 (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 and credit carryforwards in certain state and foreign jurisdictions for which utilization is uncertain. A reconciliation of the beginning and ending amounts of unrecognized income tax benefits is as follows: (in thousands) 2023 2022 2021 Balance at September 1, $ 29,747 $ 5,531 $ 8,652 Change for tax positions of current year 14,792 17,461 — Change for tax positions of prior years (374) 6,755 — Reductions due to lapse of statute of limitations — — (3,121) Balance at August 31, (1) $ 44,165 $ 29,747 $ 5,531 __________________________________ (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. Accrued interest and penalties related to uncertain tax positions were not material in any period presented. 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 following is a summary of all fiscal years that are open to examination. U.S. Federal — 2020 and forward U.S. States — 2019 and forward Foreign — 2018 and forward |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Aug. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | NOTE 13. STOCK-BASED COMPENSATION PLANS The Company's stock-based compensation plans provide for the issuance of incentive and nonqualified stock options, restricted stock awards and performance-based awards. The Compensation Committee of the 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 2023, 2022 and 2021 of $60.5 million, $47.0 million and $43.7 million, respectively, was primarily included in SG&A expenses on the Company's consolidated statements of earnings. Total tax benefits recognized in the consolidated statements of earnings related to stock-based compensation expense were $14.2 million, $9.3 million and $9.9 million for the years ended August 31, 2023, 2022 and 2021, respectively. As of August 31, 2023, total unrecognized compensation cost related to unvested stock-based compensation arrangements was $22.6 million, which is expected to be recognized over a weighted average period of 1.8 years. The following table summarizes the total awards granted: Restricted Stock Performance 2023 grants 633,898 335,746 2022 grants 652,951 328,734 2021 grants 847,872 406,098 As of August 31, 2023, the Company had 3,704,585 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 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. Generally, upon termination of employment, restricted stock units that have not vested are forfeited. Other than awards granted to certain executives, which continue to vest following qualifying retirement, a pro-rata portion of the unvested restricted stock awarded will vest and become payable upon death, disability or qualifying retirement. The estimated fair value of the 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 restricted stock units is recognized ratably over the service period and is included in equity on the Company's consolidated balance sheets. 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. Other than awards granted to certain executives, which continue to vest following qualifying retirement, a pro-rata portion of the performance stock units will vest and become payable at the end of the performance period upon death, disability or qualifying retirement. 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 2023, 2022 and 2021 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 the 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 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 2023 and 2022 associated with the cumulative EBITDA targets have been classified as liability awards because 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. Information for restricted stock units and performance stock units is as follows: Number Weighted Average Outstanding as of August 31, 2020 2,245,637 $ 18.79 Granted 1,519,153 20.49 Vested (1,451,846) 17.62 Forfeited (122,149) 20.19 Outstanding as of August 31, 2021 2,190,795 20.67 Granted 1,466,628 28.16 Vested (1,617,943) 18.84 Forfeited (45,850) 23.57 Outstanding as of August 31, 2022 1,993,630 27.59 Granted 1,438,695 36.88 Vested (1,621,002) 25.32 Forfeited (33,732) 36.65 Outstanding as of August 31, 2023 1,777,591 $ 37.01 The total fair value of shares vested during 2023, 2022 and 2021 was $41.0 million, $30.5 million and $25.6 million, respectively. The Company granted 269,052 and 261,275 equivalent shares of restricted stock units and performance stock units accounted for as liability awards during 2023 and 2022, respectively. As of August 31, 2023, the Company had 541,202 equivalent shares of awards outstanding and expects 514,142 equivalent shares to vest. Stock Purchase Plan Almost all U.S. resident employees may participate in the Company's employee stock purchase plan. 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 2023, 2022 and 2021. Yearly activity of the stock purchase plan was as follows: Year Ended August 31, 2023 2022 2021 Shares subscribed 272,980 279,370 347,510 Price per share $ 41.31 $ 29.90 $ 17.14 Shares purchased 248,080 313,790 292,690 Price per share $ 29.90 $ 17.14 $ 18.80 Shares available for future issuance 745,754 |
EMPLOYEES' RETIREMENT PLANS
EMPLOYEES' RETIREMENT PLANS | 12 Months Ended |
Aug. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEES' RETIREMENT PLANS | NOTE 14. 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, totaled $40.4 million, $34.0 million and $47.0 million for 2023, 2022 and 2021, respectively, of which $14.3 million, $7.2 million and $25.5 million was recorded in SG&A expenses during 2023, 2022 and 2021, respectively, and $26.1 million, $26.8 million and $21.5 million was recorded in cost of goods sold during 2023, 2022 and 2021, respectively, in the Company's consolidated statements of earnings. The deferred compensation liability under the BRP was $48.2 million and $43.1 million at August 31, 2023 and 2022, respectively, of which $41.1 million and $40.0 million, respectively, was included in other noncurrent liabilities, and $7.1 million and $3.1 million, respectively, 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 $60.1 million and $57.9 million at August 31, 2023 and 2022, 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 $5.0 million in 2023, compared to a net holding loss of $7.1 million and a net holding gain of $10.1 million in 2022 and 2021, respectively, and was included in net sales in the Company's consolidated statements of earnings. U.K. Pension Plan Following the acquisition of Tensar, the Company assumed the TGL Pension Plan in the United Kingdom (the "U.K.") (the "U.K. Pension Plan"), a defined benefit pension plan. The U.K. Pension Plan provides retirement benefit payments for participating retired employees and their spouses, and was closed to new participants prior to the acquisition of Tensar. Upon acquisition, the excess of projected U.K. Pension Plan assets over the U.K. Pension Plan benefit obligation was recognized as an asset on the Company's consolidated balance sheet and previously existing deferred actuarial gains and losses and unrecognized service costs or benefits were eliminated. The Company’s funding policy for the U.K. Pension Plan is to contribute annually the amount necessary to provide for benefits based on accrued service and meet at least the minimum contributions required by applicable regulations. U.S. Pension Plan In 2019, the Company acquired a partially funded defined benefit pension plan (the "U.S. Pension Plan"), which was closed to new participants prior to the acquisition. In October 2022, the Company terminated its U.S. Pension Plan. As part of the termination, the Company made a contribution of $4.1 million. Plan assets were liquidated to purchase annuity contracts with an insurance company for all participants. The Company recognized a $4.2 million settlement charge as a result of the termination, including an immaterial non-cash charge for unrecognized losses within AOCI as of the termination date. The $4.2 million settlement charge was recognized within SG&A expenses in the consolidated statement of earnings during the year ended August 31, 2023. No benefit obligation or plan assets related to the U.S. Pension Plan remain. The following tables include a reconciliation of the beginning and ending balances of the pension benefit obligation and the fair value of plan assets resulting from the U.K. Pension Plan and the U.S. Pension Plan and the related amounts recognized in the Company’s consolidated balance sheets as of August 31, 2023 and 2022: U.K. Pension Plan (in thousands) 2023 2022 Benefit obligation at beginning of year $ 52,042 $ — Acquisition — 68,966 Interest cost 2,261 635 Actuarial gain (5,354) (11,107) Benefits paid (2,529) (942) Foreign currency translation 4,480 (5,510) Benefit obligation at end of year $ 50,900 $ 52,042 Fair value of plan assets at beginning of year $ 60,454 $ — Acquisition — 83,586 Actual loss on plan assets (13,533) (15,718) Employer contributions 297 73 Benefits paid (2,529) (942) Foreign currency translation 4,833 (6,545) Fair value of plan assets at end of year $ 49,522 $ 60,454 Funded status at end of year (net asset (liability) recognized in the consolidated balance sheets as of August 31,) $ (1,378) $ 8,412 Amounts recognized in AOCI as of August 31, Net actuarial loss $ 16,477 $ 5,666 U.S. Pension Plan (in thousands) 2023 2022 Benefit obligation at beginning of year $ 26,568 $ 33,687 Interest cost — 709 Actuarial gain (47) (6,010) Benefits paid (466) (1,818) Settlement (26,055) — Benefit obligation at end of year $ — $ 26,568 Fair value of plan assets at beginning of year $ 24,440 $ 34,126 Actuarial gain (47) — Actual loss on plan assets (1,966) (7,407) Administrative expenses — (461) Employer contributions 4,094 — Benefits paid (466) (1,818) Settlement (26,055) — Fair value of plan assets at end of year $ — $ 24,440 Funded status at end of year (net liability recognized in the consolidated balance sheets as of August 31,) $ — $ (2,128) Amounts recognized in AOCI as of August 31, Net actuarial loss $ — $ 2,278 Weighted average assumptions used to determine benefit obligations are detailed below: U.K. Pension Plan U.S. Pension Plan 2023 2022 2022 Effective discount rate for benefit obligations 5.3 % 4.3 % 4.7 % 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. Net periodic benefit costs (gains) are recorded in SG&A expenses within the consolidated statements of earnings. Components of net periodic benefit costs (gains) and other supplemental information are detailed below: U.K. Pension Plan Year Ended August 31, (in thousands) 2023 2022 Interest cost $ 2,261 $ 635 Expected return on plan assets (2,589) (1,067) Total net periodic benefit gain $ (328) $ (432) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss arising during measurement period $ 10,811 $ 5,666 U.S. Pension Plan Year Ended August 31, (in thousands) 2023 2022 2021 Expected administrative expenses $ — $ 50 $ 290 Interest cost — 709 724 Expected return on plan assets — (1,579) (1,493) Settlement 4,245 — — Total net periodic benefit (gain) cost $ 4,245 $ (820) $ (479) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss arising during measurement period $ (2,278) $ 3,388 $ (4,344) Weighted average assumptions used to determine net periodic benefit cost are detailed below: U.K Pension Plan 2023 2022 Effective rate for interest on benefit obligations 4.3 % 2.9 % Expected long-term rate of return 4.6 % 4.0 % U.S. Pension Plan 2022 2021 Effective rate for interest on benefit obligations 2.2 % 2.1 % Expected long-term rate of return 5.0 % 5.0 % The Company determines the discount rates used to measure liabilities as of the August 31 measurement date, which is also the date used for the related annual measurement assumptions. The discount rates reflect the current rate at which the associated liabilities could be effectively settled at the end of the year. For the U.K. Pension Plan, the Company sets its discount rate by reference to a corporate bond yield curve derived from AA rated U.K. corporate bonds. The single equivalent discount rate is derived as equivalent to applying the full yield curve approach to each future year's projected benefit cash flow. For the U.S. Pension Plan, the Company used the full yield curve approach and set its rates 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 expected return assumptions are based on the strategic asset allocation of each plan and long-term capital market return expectations. For the U.K. Pension Plan, the interest cost calculation is determined by applying the single equivalent discount rate to the discounted value of the year-by-year projected benefit payments. For the U.S. Pension Plan, the Company measured interest cost using the full yield curve approach. The interest cost calculation was determined by applying duration-specific spot rates to the year-by-year projected benefit payments. Neither the single equivalent discount rate nor the full yield curve approach affect the measurement of the total benefit obligations. The Company plans to make immaterial contributions to the U.K. Pension Plan in 2024. Future contributions will depend on market conditions, interest rates and other factors. Plan Assets Plan assets consist primarily of public equity, corporate and government bonds. The principal investment objectives are to achieve, over the long term, a return on the plan assets which is consistent with the assumptions made by the plan actuaries in determining the funding of the plans, to ensure that sufficient liquid assets are available to meet benefit payments as they fall due and to consider the interest of the Company in relation to the size and volatility of the Company's contribution requirements. 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 U.K. Pension Plan's weighted average target allocation ranges 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 2023 2022 Fixed income securities 85.0% to 90.0% 88.2% 71.4% Equity securities — to 5.0 — 12.4 Cash and other 10.0 to 15.0 11.8 16.2 Total 100% 100% 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. Fixed income securities are valued at the yields currently available on comparable securities of issues with similar credit ratings. Investments in equity securities traded on a national securities exchange are valued at the last reported sales price on the final business day of the year. 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 fair value of the plan assets by asset class for the U.K. Pension Plan as of August 31, 2023 and 2022. Level 1 assets consist of cash and cash equivalents. Level 2 assets include funds invested in bonds and fixed income securities. Level 3 assets are measured at fair value using significant unobservable inputs and consist primarily of Secured Finance and Multistrategy Funds that invest in debt, loan and structured financial instruments in both public and private secured finance markets. Fair Value at Measurement Date Using (in thousands) Total Quoted Prices in Significant Other Significant As of August 31, 2023: Fixed income securities $ 43,654 $ — $ 40,497 $ 3,157 Cash and other 5,868 376 5,356 136 Fair value of U.K. Pension Plan assets $ 49,522 As of August 31, 2022: Fixed income securities $ 43,160 $ — $ 35,849 $ 7,311 Equity securities 7,514 — 7,514 — Cash and other 9,780 530 7,676 1,574 Fair value of U.K. Pension Plan assets $ 60,454 The changes in U.K. Pension Plan Level 3 assets related to actual return on plan assets, sales, transfers and foreign currency translation were immaterial from the Tensar Acquisition Date to August 31, 2022. The following table provides a reconciliation of U.K. Pension Plan Level 3 assets from August 31, 2022 to August 31, 2023: (in thousands) Level 3 Plan Assets Balance at August 31, 2022 $ 8,885 Sales (4,997) Actual return on plan assets: Assets held as of the reporting date 134 Assets sold during the year 256 Transfers out of Level 3 (1,541) Foreign currency translation 556 Balance at August 31, 2023 $ 3,293 The following table sets forth the fair value of the plan assets by asset class for the U.S. Pension Plan as of the August 31, 2022 measurement date. All securities were traded on a national securities exchange and therefore were Level 1 assets in the fair value hierarchy. (in thousands) August 31, 2022 Fixed income securities $ 23,958 Cash and other 482 Fair value of U.S. Pension Plan assets $ 24,440 Future Pension Benefit Payments The following table provides the estimated aggregate pension benefit payments that are payable from the U.K Pension Plan to participants in future years: (in thousands) U.K. Pension Plan 2024 $ 2,697 2025 2,764 2026 2,834 2027 2,905 2028 2,977 2029 through 2033 16,041 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Aug. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STOCK | NOTE 15. CAPITAL STOCK Treasury Stock In October 2021, the Board of Directors authorized a new share repurchase program under which CMC may repurchase up to $350.0 million of shares of common stock (the "2021 share repurchase program"). The 2021 share repurchase program replaces the previously existing $100.0 million program announced on October 27, 2014, which was terminated by the Board of Directors in connection with the approval of the 2021 share repurchase program. The 2021 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 2021, the Company did not purchase any shares of common stock. During 2023 and 2022, the Company repurchased 2,309,452 and 4,496,628 shares of CMC common stock, respectively, at an average purchase price of $43.91 and $36.00 per share, respectively. CMC had remaining authorization to purchase $86.7 million of common stock at August 31, 2023. Preferred Stock The Company has 2,000,000 shares of preferred stock, par value of $1.00 per share, authorized. The Company may issue preferred stock in series, and the shares of each series may have such rights and preferences as are fixed by the Board of Directors when authorizing the issuance of that particular series. There are no shares of preferred stock outstanding. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Aug. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16. EARNINGS PER SHARE Basic earnings per share ("EPS") is computed based on the weighted average shares of common stock outstanding during the period. Restricted stock is included in the number of shares of common stock issued and outstanding, but omitted from the basic EPS calculation until the shares vest. Diluted EPS is computed based on the weighted average shares of common stock plus the effect of dilutive securities outstanding during the period using the treasury stock method. The effect of dilutive securities includes the impact of outstanding stock-based incentive awards and shares purchased by employees through participation in the Company's employee stock purchase plan. The calculations of basic and diluted EPS were as follows: Year Ended August 31, (in thousands, except share and per share data) 2023 2022 2021 Net earnings $ 859,760 $ 1,217,262 $ 412,865 Average basic shares outstanding 117,077,703 120,648,090 120,338,357 Effect of dilutive securities 1,528,568 1,724,296 1,645,140 Average diluted shares outstanding 118,606,271 122,372,386 121,983,497 Earnings per share: Basic $ 7.34 $ 10.09 $ 3.43 Diluted 7.25 9.95 3.38 Anti-dilutive shares not included in the table above were immaterial for all periods presented. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17. COMMITMENTS AND CONTINGENCIES In the ordinary course of conducting its business, the Company becomes involved in litigation, administrative proceedings and governmental investigations, including environmental matters. At August 31, 2023 and 2022, the amounts accrued for cleanup and remediation costs at certain sites in response to notices, actions and agreements under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) were immaterial. Total accrued environmental liabilities, including CERCLA sites, were $4.5 million and $5.3 million as of August 31, 2023 and 2022, respectively, of which $2.0 million was classified as other noncurrent liabilities |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Aug. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 18. ACCRUED EXPENSES AND OTHER PAYABLES Significant accrued expenses and other payables were as follows: Year Ended August 31, (in thousands) 2023 2022 Salaries and incentive compensation $ 133,242 $ 187,586 Worker's compensation and general liability insurance 41,512 40,529 Taxes other than income taxes 39,433 72,874 Utilities 20,695 28,063 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Aug. 31, 2023 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | NOTE 19. OPERATING SEGMENTS The Company's operating segments engage in business activities from which they may earn revenues and incur expenses and for which discrete financial information is available. Operating results for the operating segments are regularly reviewed by the Company's Chief Operating Decision Maker ("CODM") to manage the business, make decisions about resources to be allocated to the segments and to assess performance. As of August 31, 2023, the Company's CODM was identified as the President, the Chief Executive Officer, the Senior Vice President and Chief Financial Officer and the Senior Vice President Operations. The Company structures its business into the following two reportable segments: North America and Europe. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, for more information about the reportable segments, including the types of products and services from which each reportable segment derives its net sales. Corporate and Other contains earnings or losses on assets and liabilities related to the Company's BRP assets and short-term investments, expenses of the Company's corporate headquarters, interest expense related to long-term debt, other revenue resulting from the Company's NMTC transactions and intercompany eliminations. Certain corporate administrative expenses are allocated to the segments based upon the nature of the expense. The CODM uses adjusted EBITDA to evaluate segment performance and allocate resources. Adjusted EBITDA is the sum of the Company's earnings before interest expense, income taxes, depreciation and amortization expense and impairment expense. The following table summarizes certain financial information by reportable segment and Corporate and Other: (in thousands) North America Europe Corporate and Other Total 2023 Net sales $ 7,347,020 $ 1,416,704 $ 35,809 $ 8,799,533 Adjusted EBITDA 1,454,754 61,353 (131,403) 1,384,704 Interest expense (1) 116,650 1,978 (78,501) 40,127 Capital expenditures 548,218 45,295 13,152 606,665 Depreciation and amortization 170,266 39,457 9,107 218,830 Asset impairments 3,733 47 — 3,780 Total assets 5,006,458 1,096,153 536,483 6,639,094 2022 Net sales $ 7,298,632 $ 1,621,642 $ (6,793) $ 8,913,481 Adjusted EBITDA 1,553,858 346,051 (154,103) 1,745,806 Interest expense (1) 26,798 3,819 20,092 50,709 Capital expenditures 415,157 27,783 7,048 449,988 Depreciation and amortization 135,322 31,250 8,452 175,024 Asset impairments 4,915 11 — 4,926 Total assets 4,467,314 1,056,101 713,612 6,237,027 2021 Net sales $ 5,670,976 $ 1,049,059 $ 9,725 $ 6,729,760 Adjusted EBITDA 746,594 148,258 (140,568) 754,284 Interest expense (1) 25,131 476 26,297 51,904 Capital expenditures 134,932 44,002 5,231 184,165 Depreciation and amortization 132,192 27,516 7,905 167,613 Asset impairments 6,360 424 — 6,784 Total assets 3,221,465 729,766 687,440 4,638,671 __________________________________ (1) Includes intercompany interest expense in the segments, which is eliminated within Corporate and Other. The following table presents a reconciliation of earnings to adjusted EBITDA: Year Ended August 31, (in thousands) 2023 2022 2021 Net earnings $ 859,760 $ 1,217,262 $ 412,865 Interest expense 40,127 50,709 51,904 Income taxes 262,207 297,885 121,153 Depreciation and amortization 218,830 175,024 167,613 Asset impairments 3,780 4,926 6,784 Amortization of acquired unfavorable contract backlog — — (6,035) Adjusted EBITDA $ 1,384,704 $ 1,745,806 $ 754,284 The following tables display revenue by reportable segment and Corporate and Other from external customers, disaggregated by major product: Year Ended August 31, 2023 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 1,322,781 $ 20,034 $ — $ 1,342,815 Steel products 2,785,266 1,068,946 — 3,854,212 Downstream products 2,517,908 200,196 — 2,718,104 Construction-related solutions 587,573 79,836 — 667,409 Other (1) 132,651 39,649 44,693 216,993 Net sales from external customers 7,346,179 1,408,661 44,693 8,799,533 Intersegment net sales, eliminated on consolidation 841 8,043 (8,884) — Net sales $ 7,347,020 $ 1,416,704 $ 35,809 $ 8,799,533 _______________________________ (1) Other revenue during the year ended August 31, 2023 includes $17.7 million derived from the Company's NMTC transactions. See Note 9, New Markets Tax Credit Transactions, for further information. Year Ended August 31, 2022 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 1,504,107 $ 25,259 $ — $ 1,529,366 Steel products 2,955,121 1,235,691 — 4,190,812 Downstream products 2,245,734 292,136 — 2,537,870 Construction-related solutions 453,517 27,279 — 480,796 Other 138,164 39,206 (2,733) 174,637 Net sales from external customers 7,296,643 1,619,571 (2,733) 8,913,481 Intersegment net sales, eliminated on consolidation 1,989 2,071 (4,060) — Net sales $ 7,298,632 $ 1,621,642 $ (6,793) $ 8,913,481 Year Ended August 31, 2021 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 1,162,997 $ 19,841 $ — $ 1,182,838 Steel products 2,289,975 808,662 — 3,098,637 Downstream products 1,814,192 192,175 — 2,006,367 Construction-related solutions 289,644 — — 289,644 Other 114,168 26,567 11,539 152,274 Net sales from external customers 5,670,976 1,047,245 11,539 6,729,760 Intersegment net sales, eliminated on consolidation — 1,814 (1,814) — Net sales $ 5,670,976 $ 1,049,059 $ 9,725 $ 6,729,760 The following table presents net sales by geographic area: Year Ended August 31, (in thousands) 2023 2022 2021 Geographic area: United States $ 6,894,990 $ 6,793,023 $ 5,295,447 Poland 941,806 1,078,986 793,075 China 217,779 246,679 156,101 Other 744,958 794,793 485,137 Net sales $ 8,799,533 $ 8,913,481 $ 6,729,760 The following table presents long-lived assets, net of accumulated depreciation and amortization, by geographic area: August 31, (in thousands) 2023 2022 2021 Geographic area: United States $ 2,343,606 $ 1,858,269 $ 1,473,745 Poland 209,966 180,350 225,582 Other 39,704 35,199 23 Total long-lived assets, net $ 2,593,276 $ 2,073,818 $ 1,699,350 |
SCHEDULE II _ VALUATION AND QUA
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Aug. 31, 2023 | |
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, 2023 Allowance for doubtful accounts $ 4,990 $ 463 $ 157 $ — $ (1,475) $ 4,135 Deferred tax valuation allowance $ 268,547 $ 16,514 $ — $ (4,598) $ — $ 280,463 Year Ended August 31, 2022 Allowance for doubtful accounts $ 5,553 $ 300 $ 193 $ — $ (1,056) $ 4,990 Deferred tax valuation allowance $ 278,099 $ 3,328 $ — $ (12,880) $ — $ 268,547 Year Ended August 31, 2021 Allowance for doubtful accounts $ 9,597 $ (1,429) $ 138 $ — $ (2,753) $ 5,553 Deferred tax valuation allowance $ 281,849 $ 20,058 $ — $ (23,808) $ — $ 278,099 __________________________________ (1) Recoveries and translation adjustments. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings (loss) | $ 859,760 | $ 1,217,262 | $ 412,865 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Aug. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [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 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, derivative instruments 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, downstream products and construction-related solutions and (ii) installation services performed 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, steel products and construction-related solutions in the North America and Europe segments and downstream products in the Europe segment 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 in the North America segment not discussed below is recognized equal to billing under an available practical expedient. Each fabricated rebar 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 rebar 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 rebar and installation services. Revenue from fabricated rebar 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 rebar. If total estimated 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 for the accounts receivable we estimate will not be collected based on market conditions, customers' financial condition and other factors. Historically, these allowances have not been material. 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 14% and 16% of total receivables at August 31, 2023 and 2022, respectively, were financially assured. |
Allowance for Doubtful Accounts | 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, downstream products and construction-related solutions and (ii) installation services performed 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, steel products and construction-related solutions in the North America and Europe segments and downstream products in the Europe segment 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 in the North America segment not discussed below is recognized equal to billing under an available practical expedient. Each fabricated rebar 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 rebar 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 rebar and installation services. Revenue from fabricated rebar 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 rebar. If total estimated 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 for the accounts receivable we estimate will not be collected based on market conditions, customers' financial condition and other factors. Historically, these allowances have not been material. 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 14% and 16% of total receivables at August 31, 2023 and 2022, respectively, were financially assured. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the weighted average cost method. Adjustments to inventory may be due to changes in price levels, assumptions about market conditions, obsolescence, damage, physical deterioration and other causes. Adjustments required to reduce the carrying value of inventory to net realizable value are recorded as a charge to cost of goods sold within the consolidated statements of earnings. Elements of cost in finished goods inventory in addition to the cost of material include depreciation, utilities, consumable production inputs, 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 are 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 estimated 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 estimated undiscounted future cash flows, the excess of the net carrying 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 | 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 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's 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 include leases with an initial term of twelve months or less in the ROU asset or lease liability balances. 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 ("SG&A") 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 by deducting the grant in arriving at the carrying amount of the asset on the consolidated balance sheets. Non-monetary grants are recognized at fair value. The Company recognizes the grant in profit or loss over the life of the depreciable asset as a reduction to depreciation expense. Grants related to non-depreciable assets may require the fulfillment of certain obligations and, in such cases, would be recognized in profit or loss over the periods that bear the cost of meeting the obligations. As an example, a grant of land that is conditional upon constructing a building on the site is recognized as a reduction to depreciation expense over the life of the building. 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 in profit or loss on a systematic basis upon meeting the recognition criteria specified in the grants and during the periods when the expenses the grants intend to compensate for are incurred. During 2023 and 2022, the Company was awarded $9.5 million and $15.5 million, respectively, in government grants related to income as part of the compensation scheme for energy-intensive sectors and sub-sectors established by the Energy Regulatory Office in Poland (the "Poland Compensation Scheme Act" or "PCSA"). The purpose of the PCSA in each year was to provide aid to energy-intensive companies to offset indirect costs of rising carbon emission rights included in energy costs. The amount of government assistance awarded by the PCSA in each year was dependent upon the Company meeting certain electricity consumption thresholds and the number of other applicants. The government assistance recognized in 2023 and 2022 under the PCSA is not subject to recapture. The PCSA grants are recognized in the Europe segment and were recorded as a reduction to cost of goods sold in the Company's consolidated statements of earnings. During 2023, the Company was awarded $4.3 million in government grants related to income as part of the 2022 Polish state aid program for rising electricity and natural gas prices (the "2022 Energy Aid Program"). The 2022 Energy Aid Program was established by the Polish Ministry of Development and Technology to mitigate the effects of sudden increases in electricity and natural gas prices in Poland for companies who met required energy intensity and sectorial conditions and experienced certain financial metrics in calendar year 2022 compared to the prior year. The full amount of the Company's 2022 Energy Aid Program grant was received in 2023 and is not subject to recapture. The 2022 Energy Aid Program grant was recognized in the Europe segment and recorded as a reduction to cost of goods sold in the Company's consolidated statement of earnings. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other indefinite-lived intangible assets are tested for impairment annually as of the first day of the Company's fourth quarter, or more frequently if events or circumstances indicate that impairment may be possible. To evaluate goodwill and other indefinite-lived intangible assets for impairment, the Company may use qualitative assessments to determine whether it is more likely than not that the fair value of a reporting unit, including goodwill, or an indefinite-lived intangible asset is less than its carrying amount. The qualitative assessments consider multiple factors, including the current operating environment, historical and future financial performance and industry and market conditions. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, additional quantitative testing is performed. The Company may elect to bypass the qualitative assessment and instead perform a quantitative impairment test to calculate the fair value of the reporting unit in comparison to its associated carrying value. The Company's reporting units represent an operating segment or one level below an operating segment. When performing a quantitative impairment test, 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 earnings derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. 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. |
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 12, 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 The functional currency of the Company's foreign operations is the local currency of each respective country. Translation adjustments are reported as a component of accumulated other comprehensive income or loss. Transactions denominated in currencies other than the functional currency yielded a loss of $12.1 million in 2023, |
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. 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 Issued and Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires that an acquirer recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This standard is effective for annual periods beginning after December 15, 2022, including interim periods therein, with early adoption permitted. The guidance will be applied prospectively to acquisitions occurring on or after the effective date. The Company will continue to evaluate the impact of this guidance, which will depend on the contract assets and liabilities acquired in future business combinations. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated useful lives for depreciation and amortization | Depreciation and amortization are 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, 2023 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table below presents the fair values that were allocated to Tensar's assets and liabilities as of the Tensar Acquisition Date: (in thousands) Fair Value Cash and cash equivalents $ 19,551 Accounts receivable 37,741 Inventories 39,462 Prepaid and other current assets 12,528 Defined benefit pension plan 14,620 Property, plant and equipment 85,983 Intangible assets 260,500 Goodwill 186,805 Other noncurrent assets 19,660 Accounts payable (12,134) Accrued expenses and other payables (23,725) Current maturities of long-term debt (3,277) Deferred income taxes (45,055) Other noncurrent liabilities (16,347) Long-term debt (4,312) Total assets acquired and liabilities assumed $ 572,000 |
Schedule of Pro Forma Information | The resulting tax effects of the business combination are also reflected below. Year Ended August 31, (in thousands) 2022 2021 Pro forma net sales $ 9,064,322 $ 6,957,903 Pro forma net earnings 1,238,174 416,904 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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 Derivatives Defined Benefit Pension Plans Total AOCI Balance, September 1, 2020 $ (87,933) $ (11,334) $ (4,497) $ (103,764) Other comprehensive income (loss) before reclassifications (1) (17,747) 35,492 3,576 21,321 Reclassification for gain (2) — (2,377) — (2,377) Net other comprehensive income (loss) (17,747) 33,115 3,576 18,944 Balance at August 31, 2021 (105,680) 21,781 (921) (84,820) Other comprehensive income (loss) before reclassifications (1) (140,217) 138,634 (5,875) (7,458) Reclassification for gain (2) — (22,173) — (22,173) Net other comprehensive income (loss) (140,217) 116,461 (5,875) (29,631) Balance at August 31, 2022 (245,897) 138,242 (6,796) (114,451) Other comprehensive income (loss) before reclassifications (1) 119,852 6,395 (7,985) 118,262 Reclassification for (gain) loss (2) — (9,380) 1,791 (7,589) Net other comprehensive income (loss) 119,852 (2,985) (6,194) 110,673 Balance at August 31, 2023 $ (126,045) $ 135,257 $ (12,990) $ (3,778) __________________________________ (1) Other comprehensive income before reclassifications from derivatives is presented net of income tax expense of $1.1 million, $33.0 million and $6.7 million for 2023, 2022 and 2021, respectively. Other comprehensive income (loss) before reclassifications from defined benefit pension plans is presented net of income tax expense (benefit) of $(3.9 million), $(2.6 million) and $0.9 million for 2023, 2022 and 2021, respectively. (2) Reclassifications for gains from derivatives included in net earnings are primarily recorded in cost of goods sold in the consolidated statements of earnings and are presented net of income tax expense of $2.2 million, $5.3 million and $0.4 million, for 2023, 2022 and 2021, respectively. Reclassifications for losses from defined benefit pension plans included in net earnings are recorded in SG&A expenses in the consolidated statement of earnings and are presented net of immaterial income tax benefits for all periods presented. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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: (in thousands) August 31, 2023 August 31, 2022 Contract assets (included in accounts receivable) $ 67,641 $ 73,037 Contract liabilities (included in accrued expenses and other payables) 28,377 27,567 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The components of inventories were as follows: (in thousands) August 31, 2023 August 31, 2022 Raw materials $261,619 $ 271,756 Work in process 6,844 9,446 Finished goods 767,119 888,494 Total $ 1,035,582 $ 1,169,696 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | Goodwill by reportable segment is detailed in the following table: (in thousands) North America Europe Consolidated Goodwill, gross: Balance, September 1, 2021 $ 71,941 $ 4,390 $ 76,331 Acquisitions 144,118 42,687 186,805 Foreign currency translation — (3,962) (3,962) Balance at August 31, 2022 216,059 43,115 259,174 Acquisitions 135,382 — 135,382 Foreign currency translation — 1,446 1,446 Balance at August 31, 2023 351,441 44,561 396,002 Accumulated impairment: Balance, September 1, 2021 (10,036) (158) (10,194) Foreign currency translation — 29 29 Balance at August 31, 2022 (10,036) (129) (10,165) Foreign currency translation — (16) (16) Balance at August 31, 2023 (10,036) (145) (10,181) Goodwill, net: Balance, September 1, 2021 61,905 4,232 66,137 Acquisitions 144,118 42,687 186,805 Foreign currency translation — (3,933) (3,933) Balance at August 31, 2022 206,023 42,986 249,009 Acquisitions 135,382 — 135,382 Foreign currency translation — 1,430 1,430 Balance at August 31, 2023 $ 341,405 $ 44,416 $ 385,821 |
Schedule of Indefinite-Lived Intangible Assets | Other indefinite-lived intangible assets consisted of the following: (in thousands) August 31, 2023 August 31, 2022 Trade names $ 54,056 $ 53,633 In-process research and development 2,400 2,400 Non-compete agreements 750 750 Total $ 57,206 $ 56,783 |
Intangible assets subject to amortization | Other intangible assets subject to amortization are detailed in the following table: August 31, 2023 August 31, 2022 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Developed technologies $ 150,445 $ 25,228 $ 125,217 $ 147,040 $ 6,485 $ 140,555 Customer relationships 74,582 7,606 66,976 53,115 2,116 50,999 Patents 7,203 5,570 1,633 7,203 4,596 2,607 Perpetual lease rights 5,984 910 5,074 3,584 744 2,840 Trade names 3,287 1,129 2,158 3,212 764 2,448 Non-compete agreements 2,300 1,502 798 3,050 1,135 1,915 Other 224 125 99 101 99 2 Total $ 244,025 $ 42,070 $ 201,955 $ 217,305 $ 15,939 $ 201,366 |
Estimated future amortization expense of intangible assets | Estimated amortization expense for the next five years is as follows: Year Ended August 31, (in thousands) 2024 $ 28,195 2025 26,464 2026 25,250 2027 25,142 2028 23,484 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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 sheets: (in thousands) Classification in Consolidated Balance Sheets August 31, 2023 August 31, 2022 Assets: Operating assets Other noncurrent assets $ 160,767 $ 138,937 Finance assets Property, plant and equipment, net 104,537 63,702 Total leased assets $ 265,304 $ 202,639 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 34,445 $ 31,792 Long-term Other noncurrent liabilities 129,800 111,150 Total operating lease liabilities 164,245 142,942 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 28,037 19,340 Long-term Long-term debt 67,433 39,196 Total finance lease liabilities 95,470 58,536 Total lease liabilities $ 259,715 $ 201,478 |
Lease Cost | The components of lease cost were as follows: Year Ended August 31, (in thousands) 2023 2022 2021 Operating lease expense $ 40,093 $ 35,111 $ 32,752 Finance lease expense: Amortization of assets 16,574 13,302 13,050 Interest on lease liabilities 3,642 2,105 2,213 Total finance lease expense 20,216 15,407 15,263 Variable and short-term lease expense 20,810 20,856 20,096 Total lease expense $ 81,119 $ 71,374 $ 68,111 The weighted average remaining lease terms and discount rates for operating and finance leases are presented in the following table: August 31, 2023 August 31, 2022 Weighted average remaining lease term (years): Operating leases 5.6 5.3 Finance leases 4.1 3.4 Weighted average discount rate: Operating leases 4.730 % 4.076 % Finance leases 4.926 % 4.125 % |
Cash Flow and Other Information Related to Leases | Cash flow and other information related to leases is included in the following table: Year Ended August 31, (in thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 40,645 $ 35,697 $ 31,686 Operating cash outflows from finance leases 3,642 2,093 2,228 Financing cash outflows from finance leases 22,837 17,821 16,016 ROU assets obtained in exchange for lease obligations: Operating leases $ 55,588 $ 59,035 $ 25,888 Finance leases 59,499 24,333 18,006 |
Maturity of Operating Lease Liabilities | Future maturities of lease liabilities at August 31, 2023 are presented in the following table: (in thousands) Operating Leases Finance Leases 2024 $ 41,430 $ 32,051 2025 36,446 25,859 2026 31,278 19,394 2027 24,579 16,086 2028 16,449 9,104 Thereafter 41,843 3,239 Total lease payments 192,025 105,733 Less imputed interest (27,780) (10,263) Present value of lease liabilities $ 164,245 $ 95,470 |
Maturity of Finance Lease Liabilities | Future maturities of lease liabilities at August 31, 2023 are presented in the following table: (in thousands) Operating Leases Finance Leases 2024 $ 41,430 $ 32,051 2025 36,446 25,859 2026 31,278 19,394 2027 24,579 16,086 2028 16,449 9,104 Thereafter 41,843 3,239 Total lease payments 192,025 105,733 Less imputed interest (27,780) (10,263) Present value of lease liabilities $ 164,245 $ 95,470 |
CREDIT ARRANGEMENTS (Tables)
CREDIT ARRANGEMENTS (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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 Interest Rate as of August 31, 2023 Year Ended August 31, (in thousands) 2023 2022 2023 Notes 4.875% $ — $ 330,000 2030 Notes 4.125% 300,000 300,000 2031 Notes 3.875% 300,000 300,000 2032 Notes 4.375% 300,000 300,000 Series 2022 Bonds, due 2047 4.000% 145,060 145,060 Poland Term Loan — — 32,439 Short-term borrowings (1) 8,419 26,390 Other 4.547% 16,042 21,278 Finance leases 4.926% 95,470 58,536 Total debt 1,164,991 1,513,703 Less unamortized debt issuance costs (14,840) (16,496) Plus unamortized bond premium 4,646 4,838 Total amounts outstanding 1,154,797 1,502,045 Less current maturities of long-term debt and short-term borrowings (40,513) (388,796) Long-term debt $ 1,114,284 $ 1,113,249 __________________________________ (1) The weighted average interest rate of short-term borrowings was 7.800% and 7.260% as of August 31, 2023 and 2022, respectively. |
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 7, Leases, for scheduled maturities of finance leases. Year Ended August 31, (in thousands) 2024 $ 4,057 2025 1,877 2026 1,789 2027 1,782 2028 1,795 Thereafter 1,049,802 Total long-term debt, excluding finance leases 1,061,102 Less unamortized debt issuance costs (14,840) Plus unamortized bond premium 4,646 Total long-term debt outstanding, excluding finance leases $ 1,050,908 |
NEW MARKETS TAX CREDIT TRANSA_2
NEW MARKETS TAX CREDIT TRANSACTIONS New Markets Tax Credit Transactions (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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 15.0 14.7 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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, 2023: Commodity Position Total Aluminum Long 2,850 MT Aluminum Short 1,400 MT Copper Long 147 MT Copper Short 8,459 MT Electricity Long 3,312,000 MW(h) Natural Gas Long 5,270,500 MMBtu __________________________________ MT = Metric ton MW(h) = Megawatt hour MMBtu = Metric Million British thermal unit The following table summarizes activities related to the Company's derivatives not designated as cash flow hedging instruments recognized in the consolidated statements of earnings. All other activity related to the Company's derivatives not designated as cash flow hedging instruments was immaterial for the periods presented. Year Ended August 31, Gain (Loss) on Derivatives Not Designated as Hedging Instruments (in thousands) Primary Location 2023 2022 2021 Commodity Cost of goods sold $ (3,028) $ 15,862 $ (18,035) Foreign exchange SG&A expenses 12,265 (6,547) (3,674) The following table summarizes activities related to the Company's derivatives designated as cash flow hedging instruments recognized in the consolidated statements of comprehensive income and consolidated statements of earnings, respectively. Amounts presented do not include the effects of foreign currency translation adjustments. Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Other Comprehensive Income, Net of Income Taxes (in thousands) Amount of Gain Reclassified from AOCI into Earnings on Derivatives (in thousands) Year Ended August 31, Year Ended August 31, 2023 2022 2021 Primary Location 2023 2022 2021 Commodity $ 6,367 $ 138,534 $ 35,392 Cost of goods sold $ 11,325 $ 27,267 $ 2,378 Foreign exchange 28 100 100 SG&A expenses 244 244 555 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table summarizes the location and fair value amounts of the Company's derivative instruments reported in the consolidated balance sheets: (in thousands) Primary Location August 31, 2023 August 31, 2022 Derivative assets: Commodity Prepaid and other current assets $ 11,427 $ 26,180 Commodity Other noncurrent assets 184,261 134,667 Foreign exchange Prepaid and other current assets 1,898 1,296 Derivative liabilities: Commodity Accrued expenses and other payables $ 2,983 $ 1,110 Commodity Other noncurrent liabilities 1,085 150 Foreign exchange Accrued expenses and other payables 2,566 3,126 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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) Total Quoted Prices in Significant Other Significant As of August 31, 2023: Assets: Investment deposit accounts (1) $ 508,227 $ 508,227 $ — $ — Commodity derivative assets (2) 195,689 1,264 — 194,425 Foreign exchange derivative assets (2) 1,898 — 1,898 — Liabilities: Commodity derivative liabilities (2) 4,068 4,068 — — Foreign exchange derivative liabilities (2) 2,566 — 2,566 — As of August 31, 2022: Assets: Investment deposit accounts (1) $ 572,384 $ 572,384 $ — $ — Commodity derivative assets (2) 160,847 17,347 — 143,500 Foreign exchange derivative assets (2) 1,296 — 1,296 — Liabilities: Commodity derivative liabilities (2) 1,260 1,260 — — Foreign exchange derivative liabilities (2) 3,126 — 3,126 — __________________________________ (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. Derivatives classified as Level 3 are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 10, Derivatives. As of August 31, 2022, the Company had one Level 3 commodity derivative. The Company entered into its second and third Level 3 commodity derivatives in September 2022 and January 2023, respectively, with the same counterparty as the first Level 3 commodity derivative. Both the second and third Level 3 commodity derivatives will begin to settle in January 2025. The fair value estimate of the Level 3 commodity derivatives are based on internally developed discounted cash flow models 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 (the "floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow models. Significantly higher or lower floating rates could have resulted in a material difference in our fair value measurement. The following table summarizes the floating rates used to measure the fair value of the Level 3 commodity derivatives during 2023 and 2022, which are applied uniformly across each of our Level 3 commodity derivatives: Floating Rate (PLN) Year Ended August 31, Low High Average 2023 480 855 630 2022 460 1,299 717 |
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 derivatives recognized in the consolidated statements of comprehensive income. Amounts presented are before income taxes. The fluctuation in energy rates over time may cause volatility in the fair value estimate and is the primary reason for the unrealized gains in other comprehensive income in 2023, 2022 and 2021. (in thousands) Level 3 Commodity Derivatives Balance at September 1, 2020 $ (15,007) Unrealized holding gain (1) 43,798 Reclassification for gain included in net earnings (2) (2,378) Balance at August 31, 2021 26,413 Unrealized holding gain (1) 138,760 Reclassification for gain included in net earnings (2) (21,673) Balance at August 31, 2022 143,500 Unrealized holding gain (1) 62,706 Reclassification for gain included in net earnings (2) (11,781) Balance at August 31, 2023 $ 194,425 __________________________________ (1) Unrealized holding gains, net of foreign currency translation, less amounts reclassified are included in net unrealized holding gain (reclassification for realized gain) on derivatives in the consolidated statements of comprehensive income. (2) Gains included in net earnings are recorded in cost of goods sold in the consolidated statements of earnings. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of earnings from continuing operations before income taxes (benefit) | The components of earnings before income taxes were as follows: Year Ended August 31, (in thousands) 2023 2022 2021 United States $ 1,095,099 $ 1,197,769 $ 413,616 Foreign 26,868 317,378 120,402 Total $ 1,121,967 $ 1,515,147 $ 534,018 |
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) 2023 2022 2021 Current: United States $ 168,399 $ 122,334 $ 113,696 Foreign 6,089 63,912 25,642 State and local 32,916 20,228 19,458 Current taxes 207,404 206,474 158,796 Deferred: United States 46,008 81,162 (10,563) Foreign (847) (3,388) (2,512) State and local 9,642 13,637 (24,568) Deferred taxes 54,803 91,411 (37,643) Total income taxes $ 262,207 $ 297,885 $ 121,153 |
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, including material items impacting the effective income tax rate, is as follows: Year Ended August 31, (in thousands) 2023 2022 2021 Income tax expense at statutory rate $ 235,613 $ 318,181 $ 112,144 State and local taxes (1)(2) 33,621 26,753 (3,838) Research and development credit (2) (7,986) (13,102) (1,289) Foreign tax impairment on valuation of subsidiaries (3) (7,334) — (29,866) Change in valuation allowance 6,471 (447) 37,092 Global intangible low-taxed income (4)(5) (1,967) 685 17,263 Capital loss (6) — (34,736) — Nontaxable foreign interest (3) — 3 (14,617) Other 3,789 548 4,264 Income tax expense $ 262,207 $ 297,885 $ 121,153 Effective income tax rate 23.4 % 19.7 % 22.7 % __________________________________ (1) State and local taxes in 2021 includes a $19.9 million benefit related to the release of certain state valuation allowances. (2) 2023 and 2022 include impacts of uncertain tax positions. (3) Fully offset by a valuation allowance. (4) Amounts are net of adjustments resulting from differences between prior year estimates and amounts included in tax returns. (5) 2021 includes the tax effect of a gain recognized in connection with a global tax restructuring. (6) Resulted from a tax restructuring transaction. |
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: August 31, (in thousands) 2023 2022 Deferred tax assets: Net operating losses and credits $ 298,624 $ 300,787 Capitalized research and development 45,669 — ROU operating lease liabilities 39,984 33,398 Deferred compensation and employee benefits 33,491 39,095 Reserves and other accrued expenses 16,510 11,730 Other 21,750 17,253 Total deferred tax assets 456,028 402,263 Valuation allowance for deferred tax assets (280,463) (268,547) Deferred tax assets, net 175,565 133,716 Deferred tax liabilities: Property, plant and equipment (351,900) (261,638) Intangible assets (44,168) (48,558) ROU operating lease assets (38,801) (32,444) Derivatives (35,992) (27,324) Other (11,453) (14,054) Total deferred tax liabilities (482,314) (384,018) Net deferred tax liabilities $ (306,749) $ (250,302) |
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: (in thousands) 2023 2022 2021 Balance at September 1, $ 29,747 $ 5,531 $ 8,652 Change for tax positions of current year 14,792 17,461 — Change for tax positions of prior years (374) 6,755 — Reductions due to lapse of statute of limitations — — (3,121) Balance at August 31, (1) $ 44,165 $ 29,747 $ 5,531 __________________________________ (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, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Total awards granted | The following table summarizes the total awards granted: Restricted Stock Performance 2023 grants 633,898 335,746 2022 grants 652,951 328,734 2021 grants 847,872 406,098 |
Restricted stock units and performance stock units, excluding the cash component | Information for restricted stock units and performance stock units is as follows: Number Weighted Average Outstanding as of August 31, 2020 2,245,637 $ 18.79 Granted 1,519,153 20.49 Vested (1,451,846) 17.62 Forfeited (122,149) 20.19 Outstanding as of August 31, 2021 2,190,795 20.67 Granted 1,466,628 28.16 Vested (1,617,943) 18.84 Forfeited (45,850) 23.57 Outstanding as of August 31, 2022 1,993,630 27.59 Granted 1,438,695 36.88 Vested (1,621,002) 25.32 Forfeited (33,732) 36.65 Outstanding as of August 31, 2023 1,777,591 $ 37.01 |
Yearly activity of the stock purchase plan | Yearly activity of the stock purchase plan was as follows: Year Ended August 31, 2023 2022 2021 Shares subscribed 272,980 279,370 347,510 Price per share $ 41.31 $ 29.90 $ 17.14 Shares purchased 248,080 313,790 292,690 Price per share $ 29.90 $ 17.14 $ 18.80 Shares available for future issuance 745,754 |
EMPLOYEES' RETIREMENT PLANS EMP
EMPLOYEES' RETIREMENT PLANS EMPLOYEES' RETIREMENT PLANS (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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 the pension benefit obligation and the fair value of plan assets resulting from the U.K. Pension Plan and the U.S. Pension Plan and the related amounts recognized in the Company’s consolidated balance sheets as of August 31, 2023 and 2022: U.K. Pension Plan (in thousands) 2023 2022 Benefit obligation at beginning of year $ 52,042 $ — Acquisition — 68,966 Interest cost 2,261 635 Actuarial gain (5,354) (11,107) Benefits paid (2,529) (942) Foreign currency translation 4,480 (5,510) Benefit obligation at end of year $ 50,900 $ 52,042 Fair value of plan assets at beginning of year $ 60,454 $ — Acquisition — 83,586 Actual loss on plan assets (13,533) (15,718) Employer contributions 297 73 Benefits paid (2,529) (942) Foreign currency translation 4,833 (6,545) Fair value of plan assets at end of year $ 49,522 $ 60,454 Funded status at end of year (net asset (liability) recognized in the consolidated balance sheets as of August 31,) $ (1,378) $ 8,412 Amounts recognized in AOCI as of August 31, Net actuarial loss $ 16,477 $ 5,666 U.S. Pension Plan (in thousands) 2023 2022 Benefit obligation at beginning of year $ 26,568 $ 33,687 Interest cost — 709 Actuarial gain (47) (6,010) Benefits paid (466) (1,818) Settlement (26,055) — Benefit obligation at end of year $ — $ 26,568 Fair value of plan assets at beginning of year $ 24,440 $ 34,126 Actuarial gain (47) — Actual loss on plan assets (1,966) (7,407) Administrative expenses — (461) Employer contributions 4,094 — Benefits paid (466) (1,818) Settlement (26,055) — Fair value of plan assets at end of year $ — $ 24,440 Funded status at end of year (net liability recognized in the consolidated balance sheets as of August 31,) $ — $ (2,128) Amounts recognized in AOCI as of August 31, Net actuarial loss $ — $ 2,278 |
Schedule of Net Periodic Benefit Costs | Components of net periodic benefit costs (gains) and other supplemental information are detailed below: U.K. Pension Plan Year Ended August 31, (in thousands) 2023 2022 Interest cost $ 2,261 $ 635 Expected return on plan assets (2,589) (1,067) Total net periodic benefit gain $ (328) $ (432) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss arising during measurement period $ 10,811 $ 5,666 U.S. Pension Plan Year Ended August 31, (in thousands) 2023 2022 2021 Expected administrative expenses $ — $ 50 $ 290 Interest cost — 709 724 Expected return on plan assets — (1,579) (1,493) Settlement 4,245 — — Total net periodic benefit (gain) cost $ 4,245 $ (820) $ (479) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss arising during measurement period $ (2,278) $ 3,388 $ (4,344) |
Schedule of Weighted-average Assumptions Used | Weighted average assumptions used to determine benefit obligations are detailed below: U.K. Pension Plan U.S. Pension Plan 2023 2022 2022 Effective discount rate for benefit obligations 5.3 % 4.3 % 4.7 % Weighted average assumptions used to determine net periodic benefit cost are detailed below: U.K Pension Plan 2023 2022 Effective rate for interest on benefit obligations 4.3 % 2.9 % Expected long-term rate of return 4.6 % 4.0 % U.S. Pension Plan 2022 2021 Effective rate for interest on benefit obligations 2.2 % 2.1 % Expected long-term rate of return 5.0 % 5.0 % |
Schedule of Allocation of Plan Assets | The U.K. Pension Plan's weighted average target allocation ranges 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 2023 2022 Fixed income securities 85.0% to 90.0% 88.2% 71.4% Equity securities — to 5.0 — 12.4 Cash and other 10.0 to 15.0 11.8 16.2 Total 100% 100% finance markets. Fair Value at Measurement Date Using (in thousands) Total Quoted Prices in Significant Other Significant As of August 31, 2023: Fixed income securities $ 43,654 $ — $ 40,497 $ 3,157 Cash and other 5,868 376 5,356 136 Fair value of U.K. Pension Plan assets $ 49,522 As of August 31, 2022: Fixed income securities $ 43,160 $ — $ 35,849 $ 7,311 Equity securities 7,514 — 7,514 — Cash and other 9,780 530 7,676 1,574 Fair value of U.K. Pension Plan assets $ 60,454 The changes in U.K. Pension Plan Level 3 assets related to actual return on plan assets, sales, transfers and foreign currency translation were immaterial from the Tensar Acquisition Date to August 31, 2022. The following table provides a reconciliation of U.K. Pension Plan Level 3 assets from August 31, 2022 to August 31, 2023: (in thousands) Level 3 Plan Assets Balance at August 31, 2022 $ 8,885 Sales (4,997) Actual return on plan assets: Assets held as of the reporting date 134 Assets sold during the year 256 Transfers out of Level 3 (1,541) Foreign currency translation 556 Balance at August 31, 2023 $ 3,293 The following table sets forth the fair value of the plan assets by asset class for the U.S. Pension Plan as of the August 31, 2022 measurement date. All securities were traded on a national securities exchange and therefore were Level 1 assets in the fair value hierarchy. (in thousands) August 31, 2022 Fixed income securities $ 23,958 Cash and other 482 Fair value of U.S. Pension Plan assets $ 24,440 |
Schedule of Future Pension Benefit Payments | The following table provides the estimated aggregate pension benefit payments that are payable from the U.K Pension Plan to participants in future years: (in thousands) U.K. Pension Plan 2024 $ 2,697 2025 2,764 2026 2,834 2027 2,905 2028 2,977 2029 through 2033 16,041 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Earnings Per Share [Abstract] | |
Calculations of basic and diluted earnings per share from continuing operations | The calculations of basic and diluted EPS were as follows: Year Ended August 31, (in thousands, except share and per share data) 2023 2022 2021 Net earnings $ 859,760 $ 1,217,262 $ 412,865 Average basic shares outstanding 117,077,703 120,648,090 120,338,357 Effect of dilutive securities 1,528,568 1,724,296 1,645,140 Average diluted shares outstanding 118,606,271 122,372,386 121,983,497 Earnings per share: Basic $ 7.34 $ 10.09 $ 3.43 Diluted 7.25 9.95 3.38 |
ACCRUED EXPENSES AND OTHER PA_2
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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) 2023 2022 Salaries and incentive compensation $ 133,242 $ 187,586 Worker's compensation and general liability insurance 41,512 40,529 Taxes other than income taxes 39,433 72,874 Utilities 20,695 28,063 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of certain financial information from continuing operations by reportable segment | The following table summarizes certain financial information by reportable segment and Corporate and Other: (in thousands) North America Europe Corporate and Other Total 2023 Net sales $ 7,347,020 $ 1,416,704 $ 35,809 $ 8,799,533 Adjusted EBITDA 1,454,754 61,353 (131,403) 1,384,704 Interest expense (1) 116,650 1,978 (78,501) 40,127 Capital expenditures 548,218 45,295 13,152 606,665 Depreciation and amortization 170,266 39,457 9,107 218,830 Asset impairments 3,733 47 — 3,780 Total assets 5,006,458 1,096,153 536,483 6,639,094 2022 Net sales $ 7,298,632 $ 1,621,642 $ (6,793) $ 8,913,481 Adjusted EBITDA 1,553,858 346,051 (154,103) 1,745,806 Interest expense (1) 26,798 3,819 20,092 50,709 Capital expenditures 415,157 27,783 7,048 449,988 Depreciation and amortization 135,322 31,250 8,452 175,024 Asset impairments 4,915 11 — 4,926 Total assets 4,467,314 1,056,101 713,612 6,237,027 2021 Net sales $ 5,670,976 $ 1,049,059 $ 9,725 $ 6,729,760 Adjusted EBITDA 746,594 148,258 (140,568) 754,284 Interest expense (1) 25,131 476 26,297 51,904 Capital expenditures 134,932 44,002 5,231 184,165 Depreciation and amortization 132,192 27,516 7,905 167,613 Asset impairments 6,360 424 — 6,784 Total assets 3,221,465 729,766 687,440 4,638,671 __________________________________ (1) Includes intercompany interest expense in the segments, which is eliminated within Corporate and Other. |
Reconciliations of earnings from continuing operations to adjusted operating profit | The following table presents a reconciliation of earnings to adjusted EBITDA: Year Ended August 31, (in thousands) 2023 2022 2021 Net earnings $ 859,760 $ 1,217,262 $ 412,865 Interest expense 40,127 50,709 51,904 Income taxes 262,207 297,885 121,153 Depreciation and amortization 218,830 175,024 167,613 Asset impairments 3,780 4,926 6,784 Amortization of acquired unfavorable contract backlog — — (6,035) Adjusted EBITDA $ 1,384,704 $ 1,745,806 $ 754,284 |
External net sales from continuing operations by geographic area | Year Ended August 31, (in thousands) 2023 2022 2021 Geographic area: United States $ 6,894,990 $ 6,793,023 $ 5,295,447 Poland 941,806 1,078,986 793,075 China 217,779 246,679 156,101 Other 744,958 794,793 485,137 Net sales $ 8,799,533 $ 8,913,481 $ 6,729,760 |
Net sales by major product | The following tables display revenue by reportable segment and Corporate and Other from external customers, disaggregated by major product: Year Ended August 31, 2023 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 1,322,781 $ 20,034 $ — $ 1,342,815 Steel products 2,785,266 1,068,946 — 3,854,212 Downstream products 2,517,908 200,196 — 2,718,104 Construction-related solutions 587,573 79,836 — 667,409 Other (1) 132,651 39,649 44,693 216,993 Net sales from external customers 7,346,179 1,408,661 44,693 8,799,533 Intersegment net sales, eliminated on consolidation 841 8,043 (8,884) — Net sales $ 7,347,020 $ 1,416,704 $ 35,809 $ 8,799,533 _______________________________ (1) Other revenue during the year ended August 31, 2023 includes $17.7 million derived from the Company's NMTC transactions. See Note 9, New Markets Tax Credit Transactions, for further information. Year Ended August 31, 2022 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 1,504,107 $ 25,259 $ — $ 1,529,366 Steel products 2,955,121 1,235,691 — 4,190,812 Downstream products 2,245,734 292,136 — 2,537,870 Construction-related solutions 453,517 27,279 — 480,796 Other 138,164 39,206 (2,733) 174,637 Net sales from external customers 7,296,643 1,619,571 (2,733) 8,913,481 Intersegment net sales, eliminated on consolidation 1,989 2,071 (4,060) — Net sales $ 7,298,632 $ 1,621,642 $ (6,793) $ 8,913,481 Year Ended August 31, 2021 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 1,162,997 $ 19,841 $ — $ 1,182,838 Steel products 2,289,975 808,662 — 3,098,637 Downstream products 1,814,192 192,175 — 2,006,367 Construction-related solutions 289,644 — — 289,644 Other 114,168 26,567 11,539 152,274 Net sales from external customers 5,670,976 1,047,245 11,539 6,729,760 Intersegment net sales, eliminated on consolidation — 1,814 (1,814) — Net sales $ 5,670,976 $ 1,049,059 $ 9,725 $ 6,729,760 |
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) 2023 2022 2021 Geographic area: United States $ 2,343,606 $ 1,858,269 $ 1,473,745 Poland 209,966 180,350 225,582 Other 39,704 35,199 23 Total long-lived assets, net $ 2,593,276 $ 2,073,818 $ 1,699,350 |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2023 USD ($) | Aug. 31, 2023 USD ($) segments | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Number of business segments | segments | 2 | |||
Asset impairments | $ 3,500 | $ 3,780 | $ 4,926 | $ 6,784 |
Proceeds From Government Grants Related To Income | 9,500 | 15,500 | ||
Realized and unrealized gain (loss) on investment and foreign currency | 12,100 | $ 9,600 | ||
West Virginia Economic Development Authority | ||||
Property, Plant and Equipment [Line Items] | ||||
Agreement For Performance Based Principal Reduction Loan | 75,000 | |||
Proceeds From Performance Based Principal Reduction Loan | 5,000 | |||
Energy Aid Program, 2022 | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds From Government Grants Related To Income | $ 4,300 | |||
Receivables secured by credit insurance or letters of credit | ||||
Property, Plant and Equipment [Line Items] | ||||
Percentage of accounts receivable secured by credit insurance or letters of credit | 14% | 14% | 16% |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Property, Plant and Equipment) (Details) | Aug. 31, 2023 |
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 - Narrative
CHANGES IN BUSINESS - Narrative (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | ||||
Apr. 25, 2022 | Dec. 28, 2021 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Payments to acquire businesses, net of cash acquired | $ 234,717 | $ 552,449 | $ 1,888 | |||
Cost of goods and services sold | 6,987,618 | 7,057,085 | 5,623,903 | |||
Amortization expense for intangible assets | 25,900 | 10,000 | $ 2,100 | |||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Costs and Expenses | |||||
Net earnings (loss) | $ 859,760 | 1,217,262 | $ 412,865 | |||
Tensar | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Acquisition and integration expense | 8,700 | |||||
Payments to acquire businesses, net of cash acquired | $ 550,000 | |||||
Amortization expense for intangible assets | (8,100) | (12,400) | ||||
Cash and cash equivalents | $ 19,551 | |||||
Revenues | $ 102,100 | |||||
Net earnings (loss) | $ 3,200 | |||||
Tensar | Revision of Prior Period, Adjustment | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Acquisition and integration expense | 1,000 | |||||
Cost of goods and services sold | (8,700) | |||||
Rancho Cucamonga Facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Facility closure costs | $ 13,800 | |||||
Proceeds from sale of assets associated with facilities | $ 313,000 | |||||
Payments to acquire machinery and equipment | $ 22,000 |
CHANGES IN BUSINESS - Assets Ac
CHANGES IN BUSINESS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Apr. 25, 2022 | Aug. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 385,821 | $ 249,009 | $ 66,137 | |
Tensar | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 19,551 | |||
Accounts receivable | 37,741 | |||
Inventories | 39,462 | |||
Prepaid and other current assets | 12,528 | |||
Defined benefit pension plan | 14,620 | |||
Property, plant and equipment | 85,983 | |||
Intangible assets | 260,500 | |||
Goodwill | 186,805 | |||
Other noncurrent assets | 19,660 | |||
Accounts payable | (12,134) | |||
Accrued expenses and other payables | 23,725 | |||
Current maturities of long-term debt | 3,277 | |||
Deferred income taxes | 45,055 | |||
Other noncurrent liabilities | (16,347) | |||
Long-term debt | 4,312 | |||
Total assets acquired and liabilities assumed | $ 572,000 |
CHANGES IN BUSINESS - Financial
CHANGES IN BUSINESS - Financial Results and Pro Forma Information (Details) - Tensar - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Business Acquisition [Line Items] | ||
Pro forma net sales | $ 9,064,322 | $ 6,957,903 |
Pro forma net earnings | $ 1,238,174 | $ 416,904 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI by Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | $ (114,451) | $ (84,820) | $ (103,764) |
Other comprehensive income (loss) before reclassifications(1) | 118,262 | (7,458) | 21,321 |
Reclassification for gain(2) | (7,589) | (22,173) | (2,377) |
Total other comprehensive income (loss), net of income taxes | 110,673 | (29,631) | 18,944 |
Balance | (3,778) | (114,451) | (84,820) |
Other comprehensive income (loss), net unrealized holding gain, tax | 1,100 | 33,000 | 6,700 |
Other comprehensive (income) loss, defined benefit plan, tax | (3,900) | (2,600) | 900 |
Other comprehensive income (loss), derivative, after reclassification, tax | 2,200 | 5,300 | 400 |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (245,897) | (105,680) | (87,933) |
Other comprehensive income (loss) before reclassifications(1) | 119,852 | (140,217) | (17,747) |
Reclassification for gain(2) | 0 | 0 | 0 |
Total other comprehensive income (loss), net of income taxes | 119,852 | (140,217) | (17,747) |
Balance | (126,045) | (245,897) | (105,680) |
Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | 138,242 | 21,781 | (11,334) |
Other comprehensive income (loss) before reclassifications(1) | 6,395 | 138,634 | 35,492 |
Reclassification for gain(2) | (9,380) | (22,173) | (2,377) |
Total other comprehensive income (loss), net of income taxes | (2,985) | 116,461 | 33,115 |
Balance | 135,257 | 138,242 | 21,781 |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (6,796) | (921) | (4,497) |
Other comprehensive income (loss) before reclassifications(1) | (7,985) | (5,875) | 3,576 |
Reclassification for gain(2) | 1,791 | 0 | 0 |
Total other comprehensive income (loss), net of income taxes | (6,194) | (5,875) | 3,576 |
Balance | $ (12,990) | $ (6,796) | $ (921) |
REVENUE RECOGNITION - Revenue R
REVENUE RECOGNITION - Revenue Recognition Method (Details) - North America Segment - Recognized over Time | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Fabricated Product and Installation Services | |||
Disaggregation of Revenue [Line Items] | |||
Contract as percent of total segment revenue (percent) | 7% | 8% | 10% |
Fabricated Product without Installation Services | |||
Disaggregation of Revenue [Line Items] | |||
Contract as percent of total segment revenue (percent) | 11% | 9% | 9% |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets (included in accounts receivable) | $ 67,641 | $ 73,037 |
Contract liabilities (included in accrued expenses and other payables) | $ 28,377 | $ 27,567 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligations (Details) $ in Millions | Aug. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 920.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (percent) | 80% |
Remaining performance obligation, period of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-09-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period of satisfaction |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 261,619 | $ 271,756 | |
Inventory, Work in Process, Gross | 6,844 | 9,446 | |
Inventory, Finished Goods, Net of Reserves | 767,119 | 888,494 | |
Inventory, Net | 1,035,582 | 1,169,696 | |
Write-down of inventory | $ 11,286 | $ 464 | $ 384 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Goodwill [Line Items] | |||
Goodwill, beginning | $ 259,174 | $ 76,331 | |
Foreign currency translation | 1,446 | (3,962) | |
Goodwill, ending | 396,002 | 259,174 | |
Goodwill, Acquired During Period | 135,382 | 186,805 | |
Accumulated impairment loss, beginning | (10,165) | (10,194) | |
Foreign currency translation | (16) | 29 | |
Accumulated impairment loss, ending | (10,181) | (10,165) | |
Goodwill, net | 385,821 | 249,009 | $ 66,137 |
Foreign currency translation | 1,430 | (3,933) | |
North America | |||
Goodwill [Line Items] | |||
Goodwill, beginning | 216,059 | 71,941 | |
Foreign currency translation | 0 | 0 | |
Goodwill, ending | 351,441 | 216,059 | |
Goodwill, Acquired During Period | 135,382 | 144,118 | |
Accumulated impairment loss, beginning | (10,036) | (10,036) | |
Foreign currency translation | 0 | 0 | |
Accumulated impairment loss, ending | (10,036) | (10,036) | |
Goodwill, net | 341,405 | 206,023 | 61,905 |
Foreign currency translation | 0 | 0 | |
Europe | |||
Goodwill [Line Items] | |||
Goodwill, beginning | 43,115 | 4,390 | |
Foreign currency translation | 1,446 | (3,962) | |
Goodwill, ending | 44,561 | 43,115 | |
Goodwill, Acquired During Period | 0 | 42,687 | |
Accumulated impairment loss, beginning | (129) | (158) | |
Foreign currency translation | (16) | 29 | |
Accumulated impairment loss, ending | (145) | (129) | |
Goodwill, net | 44,416 | 42,986 | $ 4,232 |
Foreign currency translation | $ 1,430 | $ (3,933) |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 244,025 | $ 217,305 |
Accumulated Amortization | 42,070 | 15,939 |
Net | 201,955 | 201,366 |
Developed technologies | Tensar | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 150,445 | 147,040 |
Accumulated Amortization | 25,228 | 6,485 |
Net | 125,217 | 140,555 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 74,582 | 53,115 |
Accumulated Amortization | 7,606 | 2,116 |
Net | 66,976 | 50,999 |
Perpetual lease rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,984 | 3,584 |
Accumulated Amortization | 910 | 744 |
Net | 5,074 | 2,840 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,203 | 7,203 |
Accumulated Amortization | 5,570 | 4,596 |
Net | 1,633 | 2,607 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,287 | 3,212 |
Accumulated Amortization | 1,129 | 764 |
Net | 2,158 | 2,448 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,300 | 3,050 |
Accumulated Amortization | 1,502 | 1,135 |
Net | 798 | 1,915 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 224 | 101 |
Accumulated Amortization | 125 | 99 |
Net | $ 99 | $ 2 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 25, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Goodwill [Line Items] | ||||
Goodwill | $ 385,821 | $ 249,009 | $ 66,137 | |
Amortization expense for intangible assets | 25,900 | 10,000 | 2,100 | |
Indefinite-lived intangible assets acquired | 57,100 | |||
Indefinite-lived intangible assets, tested for impairment | 53,800 | |||
Three Qualitative Reporting Units | ||||
Goodwill [Line Items] | ||||
Goodwill | 49,800 | |||
Three Quantitative Reporting units | ||||
Goodwill [Line Items] | ||||
Goodwill | 292,300 | |||
Tensar | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 186,805 | |||
Amortization expense for intangible assets | (8,100) | $ (12,400) | ||
Indefinite-lived intangible assets acquired | 57,206 | 56,783 | ||
Cost of goods sold | ||||
Goodwill [Line Items] | ||||
Amortization expense for intangible assets | 18,700 | 6,400 | ||
SG&A expenses | ||||
Goodwill [Line Items] | ||||
Amortization expense for intangible assets | $ 7,200 | $ 3,600 | ||
Customer Relationships | Tendon | ||||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets Acquired | 8,900 | |||
Customer Relationships | EDSCO | ||||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets Acquired | $ 12,000 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets acquired | $ 57,100 | |
Tensar | ||
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets acquired | 57,206 | $ 56,783 |
Trade names | Tensar | ||
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets acquired | 54,056 | 53,633 |
In-process research and development | Tensar | ||
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets acquired | 2,400 | 2,400 |
Non-Compete Agreements | Tensar | ||
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets acquired | $ 750 | $ 750 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS (Estimated Future Amortization Expense) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 | $ 28,195 |
2025 | 26,464 |
2026 | 25,250 |
2027 | 25,142 |
2028 | $ 23,484 |
Leases, Balance Sheet Component
Leases, Balance Sheet Components (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Assets: | ||
Operating assets | $ 160,767 | $ 138,937 |
Finance assets | 104,537 | 63,702 |
Total leased assets | 265,304 | 202,639 |
Operating lease liabilities: | ||
Current | 34,445 | 31,792 |
Long-term | 129,800 | 111,150 |
Total operating lease liabilities | 164,245 | 142,942 |
Finance lease liabilities: | ||
Current | 28,037 | 19,340 |
Long-term | 67,433 | 39,196 |
Total finance lease liabilities | 95,470 | 58,536 |
Total lease liabilities | $ 259,715 | $ 201,478 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other payables | Accrued expenses and other payables |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt, Current Maturities | Long-Term Debt, Current Maturities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Leases, Lease Cost (Details)
Leases, Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Leases [Abstract] | |||
Operating Lease, Cost | $ 40,093 | $ 35,111 | $ 32,752 |
Finance lease expense: | |||
Amortization of assets | 16,574 | 13,302 | 13,050 |
Interest on lease liabilities | 3,642 | 2,105 | 2,213 |
Total finance lease expense | 20,216 | 15,407 | 15,263 |
Variable and short-term lease expense | 20,810 | 20,856 | 20,096 |
Total lease expense | $ 81,119 | $ 71,374 | $ 68,111 |
Leases, Weighted-average Lease
Leases, Weighted-average Lease Terms and Discount Rates (Details) | Aug. 31, 2023 | Aug. 31, 2022 |
Leases [Abstract] | ||
Operating leases, remaining term | 5 years 7 months 6 days | 5 years 3 months 18 days |
Finance leases, remaining term | 4 years 1 month 6 days | 3 years 4 months 24 days |
Operating leases, weighted average discount rate | 4.73% | 4.076% |
Finance leases, weighted average discount rate | 4.125% |
Leases, Cash Flow and Other Inf
Leases, Cash Flow and Other Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflows from operating leases | $ 40,645 | $ 35,697 | $ 31,686 |
Operating cash outflows from finance leases | 3,642 | 2,093 | 2,228 |
Financing cash outflows from finance leases | 22,837 | 17,821 | 16,016 |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | 55,588 | 59,035 | 25,888 |
Finance leases | $ 59,499 | $ 24,333 | $ 18,006 |
Leases, Maturity of Lease Liabi
Leases, Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Operating Leases | ||
2024 | $ 41,430 | |
2025 | 36,446 | |
2026 | 31,278 | |
2027 | 24,579 | |
2028 | 16,449 | |
Thereafter | 41,843 | |
Total lease payments | 192,025 | |
Less imputed interest | (27,780) | |
Total operating lease liabilities | 164,245 | $ 142,942 |
Finance Leases | ||
2024 | 32,051 | |
2025 | 25,859 | |
2026 | 19,394 | |
2027 | 16,086 | |
2028 | 9,104 | |
Thereafter | 3,239 | |
Total lease payments | 105,733 | |
Less imputed interest | (10,263) | |
Total finance lease liabilities | $ 95,470 | $ 58,536 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | Aug. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Lease not yet commenced, value | $ 10.6 |
Lease not yet commenced, commencing year one | 7.9 |
Lease not yet commenced, commencing year two | $ 2.7 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease not yet commenced, term | 4 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease not yet commenced, term | 6 years |
CREDIT ARRANGEMENTS (Long-term
CREDIT ARRANGEMENTS (Long-term Debt) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Feb. 28, 2021 | May 31, 2013 |
Debt Instrument [Line Items] | ||||||
Total long-term debt including current maturities | $ 1,164,991 | $ 1,513,703 | ||||
Less debt issuance costs | (14,840) | (16,496) | $ (9,400) | |||
Plus unamortized bond premium | 4,646 | 4,838 | ||||
Total amounts outstanding | 1,154,797 | 1,502,045 | ||||
Less current maturities of long-term debt and short-term borrowings | (40,513) | (388,796) | ||||
Long-term debt | $ 1,114,284 | $ 1,113,249 | ||||
Finance leases, weighted average discount rate | 4.125% | |||||
Short-term debt, weighted average interest rate | 7.80% | 7.26% | ||||
2023 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 4.875% | 4.875% | ||||
Total long-term debt including current maturities | $ 0 | $ 330,000 | $ 330,000 | |||
$300 million notes at 4.125% due February 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 4.125% | 4.125% | ||||
Total long-term debt including current maturities | $ 300,000 | 300,000 | $ 300,000 | |||
2031 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 3.875% | 3.875% | ||||
Total long-term debt including current maturities | $ 300,000 | 300,000 | $ 300,000 | |||
Less debt issuance costs | $ (4,900) | |||||
$300 million notes at 4.375% due March 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 4.375% | 4.375% | ||||
Total long-term debt including current maturities | $ 300,000 | 300,000 | $ 300,000 | |||
Series 2022 Bonds, due 2047 | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 4% | 4% | ||||
Total long-term debt including current maturities | $ 145,060 | 145,060 | ||||
Less debt issuance costs | $ (3,100) | |||||
Short-term borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt including current maturities | $ 8,419 | 26,390 | ||||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 4.547% | |||||
Total long-term debt including current maturities | $ 16,042 | 21,278 | ||||
Finance leases | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt including current maturities | $ 95,470 | 58,536 | ||||
Finance leases, weighted average discount rate | 4.926% | |||||
Revolving credit agreement | Poland Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 0% | |||||
Total long-term debt including current maturities | $ 0 | $ 32,439 |
CREDIT ARRANGEMENTS (Narrative)
CREDIT ARRANGEMENTS (Narrative) (Details) zł in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
May 15, 2023 USD ($) | Nov. 30, 2022 USD ($) | Feb. 28, 2022 USD ($) | Aug. 31, 2023 USD ($) | Aug. 31, 2023 PLN (zł) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2023 PLN (zł) | Oct. 31, 2022 USD ($) | Aug. 31, 2022 PLN (zł) | Jan. 31, 2022 USD ($) | Feb. 28, 2021 USD ($) | May 31, 2013 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Loss on debt extinguishment | $ 179,000 | $ 16,052,000 | $ 16,841,000 | ||||||||||
Total long-term debt including current maturities | 1,164,991,000 | 1,513,703,000 | |||||||||||
Interest costs capitalized | 21,500,000 | 11,900,000 | 2,800,000 | ||||||||||
Less debt issuance costs | 14,840,000 | 16,496,000 | $ 9,400,000 | ||||||||||
Repayments of Long-term Debt | 389,756,000 | 328,594,000 | $ 368,527,000 | ||||||||||
CMCP | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | 145,400,000 | 63,900,000 | zł 600,000 | zł 300,000 | |||||||||
Revolving credit agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Revolving credit facility, maximum borrowing capacity | 850,000,000 | ||||||||||||
Revolving line of credit outstanding amount | $ 0 | 0 | |||||||||||
Minimum interest coverage ratio | 2.50 | 2.50 | |||||||||||
Maximum debt to capitalization ratio | 0.60 | 0.60 | |||||||||||
Actual interest coverage ratio | 34.79 | 34.79 | |||||||||||
Actual debt to capitalization ratio | 0.22 | 0.22 | |||||||||||
Revolving credit agreement | CMCP | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Revolving line of credit outstanding amount | zł | zł 0 | ||||||||||||
Borrowings under uncommitted lines of credit | zł | zł 0 | ||||||||||||
Stand-by letters of credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||||||
Stand by letters of credit outstanding amount | 900,000 | 1,400,000 | |||||||||||
Standby Letters of Credit | CMCP | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stand by letters of credit outstanding amount | $ 16,300,000 | 1,000,000 | |||||||||||
U.S. Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Trade accounts receivable | 150,000,000 | ||||||||||||
2023 Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate | 4.875% | 4.875% | 4.875% | ||||||||||
Total long-term debt including current maturities | $ 0 | 330,000,000 | $ 330,000,000 | ||||||||||
Repayments of Long-term Debt | $ 214,100,000 | $ 115,900,000 | |||||||||||
$300 million notes at 4.125% due February 2030 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate | 4.125% | 4.125% | 4.125% | ||||||||||
Total long-term debt including current maturities | $ 300,000,000 | 300,000,000 | $ 300,000,000 | ||||||||||
$300 million notes at 4.375% due March 2032 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate | 4.375% | 4.375% | 4.375% | ||||||||||
Total long-term debt including current maturities | $ 300,000,000 | 300,000,000 | $ 300,000,000 | ||||||||||
$300 million notes at 3.875% due February 2031 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate | 3.875% | 3.875% | 3.875% | ||||||||||
Total long-term debt including current maturities | $ 300,000,000 | 300,000,000 | $ 300,000,000 | ||||||||||
Less debt issuance costs | $ 4,900,000 | ||||||||||||
2026 Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate | 5.75% | ||||||||||||
Loss on debt extinguishment | 16,800,000 | ||||||||||||
Total long-term debt including current maturities | $ 350,000,000 | ||||||||||||
Series 2022 Bonds, due 2047 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, maximum principal amount | $ 145,100,000 | ||||||||||||
Weighted average interest rate | 4% | 4% | 4% | ||||||||||
Total long-term debt including current maturities | $ 145,060,000 | 145,060,000 | |||||||||||
Less debt issuance costs | $ 3,100,000 | ||||||||||||
Bonds, effective yield (interest rate) | 0.035 | ||||||||||||
Proceeds from issuance of debt | $ 150,000,000 | ||||||||||||
Poland Term Loan | CMCP | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Revolving line of credit outstanding amount | 32,400,000 | 152,400 | |||||||||||
Poland Term Loan | Revolving credit agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate | 0% | 0% | |||||||||||
Total long-term debt including current maturities | $ 0 | 32,439,000 | |||||||||||
Credit Agreement Maturing March 2026 | Revolving credit agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | 600,000,000 | ||||||||||||
Credit Agreement Maturing March 2026 | Line of Credit | Revolving credit agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||||||||
Credit Agreement, Maturing 2027 | Line of Credit | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, maximum principal amount | $ 200,000,000 | ||||||||||||
Poland Program | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Transfer of Accounts Receivable Program, Face Amount | 69,800,000 | 61,300,000 | 288,000 | ||||||||||
Transfers of Accounts Receivable Outstanding | $ 8,400,000 | $ 26,400,000 | zł 34,700 | zł 124,000 |
CREDIT ARRANGEMENTS (Scheduled
CREDIT ARRANGEMENTS (Scheduled Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Jan. 31, 2022 |
Long-Term Debt, Fiscal Year Maturity [Abstract] | |||
2024 | $ 4,057 | ||
2025 | 1,877 | ||
2026 | 1,789 | ||
2027 | 1,782 | ||
2028 | 1,795 | ||
Thereafter | 1,049,802 | ||
Total long-term debt, excluding finance leases | 1,061,102 | ||
Less unamortized debt issuance costs | (14,840) | $ (16,496) | $ (9,400) |
Plus unamortized bond premium | 4,646 | $ 4,838 | |
Total long-term debt outstanding, excluding finance leases | $ 1,050,908 |
NEW MARKETS TAX CREDIT TRANSA_3
NEW MARKETS TAX CREDIT TRANSACTIONS (Details) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Aug. 31, 2023 USD ($) | Dec. 31, 2017 numberOfTaxCreditTransactions | Aug. 31, 2022 USD ($) | |
Income Tax Contingency [Line Items] | |||
Number of New Markets Tax Credit transactions | numberOfTaxCreditTransactions | 3 | ||
Deferred Revenue, Revenue Recognized | $ 17,700 | ||
Other Liabilities, Noncurrent | 253,181 | $ 230,060 | |
Accounts Payable and Accrued Liabilities | |||
Income Tax Contingency [Line Items] | |||
Deferred revenue | 17,700 | ||
Other Noncurrent Liabilities | |||
Income Tax Contingency [Line Items] | |||
Deferred revenue | 9,500 | ||
Fund 156 | Micro Mill | |||
Income Tax Contingency [Line Items] | |||
USBCDC Capital Contribution | 17,700 | ||
Commonwealth Loan | $ 35,300 | ||
Commonwealth Loan Rate (Percent) | 1.08% | ||
QEI to CDE | $ 51,500 | ||
Fund 156 | Micro Mill | Qualified Equity Investment Loans | CMC Steel Oklahoma, LLC | |||
Income Tax Contingency [Line Items] | |||
CDE Loan | 50,700 | ||
Fund 249 | |||
Income Tax Contingency [Line Items] | |||
Accrued expenses and other payables | 6,700 | ||
Fund 249 | Spooler Project | |||
Income Tax Contingency [Line Items] | |||
USBCDC Capital Contribution | 6,700 | ||
Commonwealth Loan | $ 14,000 | ||
Commonwealth Loan Rate (Percent) | 1.39% | ||
QEI to CDE | $ 20,000 | ||
Fund 249 | Spooler Project | Qualified Equity Investment Loans | CMC Steel Oklahoma, LLC | |||
Income Tax Contingency [Line Items] | |||
CDE Loan | $ 19,400 | ||
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 | ||
Other Liabilities, Noncurrent | $ 2,800 | ||
Fund 219 and Fund 222 | T-post Shop | |||
Income Tax Contingency [Line Items] | |||
USBCDC Capital Contribution | 5,000 | ||
Commonwealth Loan | $ 10,400 | ||
Commonwealth Loan Rate (Percent) | 1.16% | ||
QEI to CDE | $ 15,000 | ||
Fund 219 and Fund 222 | T-post Shop | Qualified Equity Investment Loans | CMC Steel Oklahoma, LLC | |||
Income Tax Contingency [Line Items] | |||
CDE Loan | $ 14,700 | ||
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 | |||
Income Tax Contingency [Line Items] | |||
USBCDC Capital Contribution | $ 2,200 | ||
CDE Loan | $ 2,100 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Derivative [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months | $ 8.2 | |
Foreign exchange | ||
Derivative [Line Items] | ||
Derivative notional amount | 221.4 | $ 253.5 |
Commodity | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 456.4 | $ 205.1 |
DERIVATIVES - Commodity Contrac
DERIVATIVES - Commodity Contract Commitments (Details) | 12 Months Ended |
Aug. 31, 2023 MMBTU MWh t | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 2,850 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract commitments | 1,400 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 147 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract commitments | 8,459 |
Electricity | Long | |
Derivative [Line Items] | |
Energy contract commitments | MWh | 3,312,000 |
Natural Gas | Long | |
Derivative [Line Items] | |
Energy contract commitments | MMBTU | 5,270,500 |
DERIVATIVES (Derivatives Not De
DERIVATIVES (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Other Comprehensive Income, Net of Income Taxes (in thousands) | $ 6,395 | $ 138,634 | $ 35,492 |
Commodity | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Other Comprehensive Income, Net of Income Taxes (in thousands) | 6,367 | 138,534 | 35,392 |
Commodity | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) before taxes for derivatives not designated as hedging instruments | (3,028) | 15,862 | (18,035) |
Amount of Gain Reclassified from AOCI into Earnings on Derivatives (in thousands) | 11,325 | 27,267 | 2,378 |
Foreign exchange | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Other Comprehensive Income, Net of Income Taxes (in thousands) | 28 | 100 | 100 |
Foreign exchange | SG&A expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) before taxes for derivatives not designated as hedging instruments | 12,265 | (6,547) | (3,674) |
Amount of Gain Reclassified from AOCI into Earnings on Derivatives (in thousands) | $ 244 | $ 244 | $ 555 |
DERIVATIVES (Schedule of Deriva
DERIVATIVES (Schedule of Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Commodity | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 11,427 | $ 26,180 |
Commodity | Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 184,261 | 134,667 |
Commodity | Accounts Payable and Accrued Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Subject to Master Netting Arrangement, before Offset | 2,983 | 1,110 |
Commodity | Other Long-term Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Subject to Master Netting Arrangement, before Offset | 1,085 | 150 |
Foreign Exchange | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,898 | 1,296 |
Foreign Exchange | Accounts Payable and Accrued Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Subject to Master Netting Arrangement, before Offset | $ 2,566 | $ 3,126 |
FAIR VALUE (Financial Assets an
FAIR VALUE (Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
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 | $ 480 | $ 460 |
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 | 855 | 1,299 |
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 | 630 | 717 |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | 508,227,000 | 572,384,000 |
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 | 508,227,000 | 572,384,000 |
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 | 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 | 0 | 0 |
Fair value, measurements, recurring | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 195,689,000 | 160,847,000 |
Derivative liabilities | 4,068,000 | 1,260,000 |
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 | 1,264,000 | 17,347,000 |
Derivative liabilities | 4,068,000 | 1,260,000 |
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 | 0 | 0 |
Derivative liabilities | 0 | 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 | 194,425,000 | 143,500,000 |
Derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,898,000 | 1,296,000 |
Derivative liabilities | 2,566,000 | 3,126,000 |
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 | 0 | 0 |
Derivative liabilities | 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 | 1,898,000 | 1,296,000 |
Derivative liabilities | 2,566,000 | 3,126,000 |
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 | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE (Reconciliation of C
FAIR VALUE (Reconciliation of Commodity Derivative Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other comprehensive income (loss) | Other comprehensive income (loss) | Other comprehensive income (loss) |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of goods and services sold | Cost of goods and services sold | Cost of goods and services sold |
Commodity | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | $ 143,500 | $ 26,413 | $ (15,007) |
Recognized in OCI | 62,706 | 138,760 | 43,798 |
Recognized in earnings | (11,781) | (21,673) | (2,378) |
Ending Balance | $ 194,425 | $ 143,500 | $ 26,413 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, excluding other borrowings and finance leases | $ 1,000 | $ 1,400 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, excluding other borrowings and finance leases | $ 900.9 | $ 1,200 |
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, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,095,099 | $ 1,197,769 | $ 413,616 |
Foreign | 26,868 | 317,378 | 120,402 |
Earnings before income taxes | $ 1,121,967 | $ 1,515,147 | $ 534,018 |
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, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Current: | |||
United States | $ 168,399 | $ 122,334 | $ 113,696 |
Foreign | 6,089 | 63,912 | 25,642 |
State and local | 32,916 | 20,228 | 19,458 |
Current taxes | 207,404 | 206,474 | 158,796 |
Deferred: | |||
United States | 46,008 | 81,162 | (10,563) |
Foreign | (847) | (3,388) | (2,512) |
State and local | 9,642 | 13,637 | (24,568) |
Deferred taxes | 54,803 | 91,411 | (37,643) |
Total income taxes | $ 262,207 | $ 297,885 | $ 121,153 |
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, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Income tax expense at statutory rate | $ 235,613 | $ 318,181 | $ 112,144 |
State and local taxes (1)(2) | 33,621 | 26,753 | (3,838) |
Research and development credit(2) | (7,986) | (13,102) | (1,289) |
Foreign tax impairment on valuation of subsidiaries (3) | (7,334) | 0 | (29,866) |
Change in valuation allowance | 6,471 | (447) | 37,092 |
Global intangible low-taxed income (4)(5) | (1,967) | (685) | (17,263) |
Capital loss(6) | 0 | (34,736) | 0 |
Nontaxable foreign interest (3) | 0 | 3 | (14,617) |
Other | 3,789 | 548 | 4,264 |
Income tax expense | $ 262,207 | $ 297,885 | $ 121,153 |
Effective income tax rate | 23.40% | 19.70% | 22.70% |
Deferred Tax Assets, Valuation Allowance | $ 280,463 | $ 268,547 | |
State | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 19,900 |
INCOME TAX (Deferred Tax Assets
INCOME TAX (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Deferred tax assets: | ||
Net operating losses and credits | $ 298,624 | $ 300,787 |
Capitalized research and development | 45,669 | 0 |
Deferred compensation and employee benefits | 33,491 | 39,095 |
Reserves and other accrued expenses | 16,510 | 11,730 |
ROU operating lease liabilities | 39,984 | 33,398 |
Other | 21,750 | 17,253 |
Total deferred tax assets | 456,028 | 402,263 |
Valuation allowance for deferred tax assets | (280,463) | (268,547) |
Deferred tax assets, net | 175,565 | 133,716 |
Deferred tax liabilities: | ||
Property, plant and equipment | (351,900) | (261,638) |
ROU operating lease assets | (38,801) | (32,444) |
Deferred Tax Liabilities, Intangible Assets | 44,168 | 48,558 |
Deferred Tax Assets, Derivative Instruments | 35,992 | 27,324 |
Other | (11,453) | (14,054) |
Net deferred tax liabilities | (482,314) | (384,018) |
Total deferred tax liabilities | $ (306,749) | $ (250,302) |
INCOME TAX (Narrative) (Details
INCOME TAX (Narrative) (Details) $ in Millions | Aug. 31, 2023 USD ($) |
State | |
Income Tax Contingency [Line Items] | |
Net operating losses carry forward | $ 348.4 |
Federal | |
Income Tax Contingency [Line Items] | |
Net operating losses carry forward | 21.3 |
Foreign | |
Income Tax Contingency [Line Items] | |
Net operating losses carry forward | $ 946.6 |
INCOME TAX (Unrecognized Tax Be
INCOME TAX (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 29,747 | $ 5,531 | $ 8,652 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 14,792 | 17,461 | 0 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (374) | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 6,755 | 0 | |
Reductions due to lapse of statute of limitations | 0 | 0 | (3,121) |
Unrecognized Tax Benefits, Ending Balance | $ 44,165 | $ 29,747 | $ 5,531 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Stock-Based Awards Granted) (Details) - shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Restricted Stock Awards/Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, number | 633,898 | 652,951 | 847,872 |
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, number | 335,746 | 328,734 | 406,098 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 USD ($) Interval shares | Aug. 31, 2022 USD ($) shares | Aug. 31, 2021 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 60.5 | $ 47 | $ 43.7 |
Stock-based compensation expense, tax | $ | 14.2 | 9.3 | 9.9 |
Total unrecognized compensation cost | $ | $ 22.6 | ||
Period of unrecognized compensation to be recognized | 1 year 9 months 18 days | ||
Shares available for future grants | 3,704,585 | ||
Fair value of shares vested | $ | $ 41 | $ 30.5 | $ 25.6 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards and performance stock units, granted, shares | 633,898 | 652,951 | 847,872 |
Restricted stock units | United States | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting frequency | Interval | 3 | ||
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards and performance stock units, granted, shares | 335,746 | 328,734 | 406,098 |
Performance Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage | 50% | ||
Performance Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage | 200% | ||
Performance Awards | EBITDA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage that performance targets are weighted | 75% | 75% | 75% |
Performance Awards | Relative total stockholder return | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage that performance targets are weighted | 25% | 25% | 25% |
Liability awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards and performance stock units, granted, shares | 269,052 | 261,275 | |
Equivalent number of awards outstanding | 541,202 | ||
Equivalent number of shares expected to vest | 514,142 | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants | 745,754 | ||
Maximum number of shares per employee | 500 | ||
Purchase discount from market price | 15% | 15% | 15% |
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, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding number, beginning balance | 1,993,630 | 2,190,795 | 2,245,637 |
Granted, number | 1,438,695 | 1,466,628 | 1,519,153 |
Vested, number | (1,621,002) | (1,617,943) | (1,451,846) |
Forfeited, number | (33,732) | (45,850) | (122,149) |
Outstanding number, ending balance | 1,777,591 | 1,993,630 | 2,190,795 |
Outstanding, weighted average grant-date fair value, beginning balance | $ 27.59 | $ 20.67 | $ 18.79 |
Granted, weighted average grant-date fair value | 36.88 | 28.16 | 20.49 |
Vested, weighted average grant-date fair value | 25.32 | 18.84 | 17.62 |
Forfeited, weighted average grant-date fair value | 36.65 | 23.57 | 20.19 |
Outstanding, weighted average grant-date fair value, ending balance | $ 37.01 | $ 27.59 | $ 20.67 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS (Yearly Activity of Stock Purchase Plan) (Details) - $ / shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 3,704,585 | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares subscribed | 272,980 | 279,370 | 347,510 |
Price per share | $ 41.31 | $ 29.90 | $ 17.14 |
Shares purchased | 248,080 | 313,790 | 292,690 |
Price per share | $ 29.90 | $ 17.14 | $ 18.80 |
Shares available for future issuance | 745,754 |
EMPLOYEES' RETIREMENT PLANS (Na
EMPLOYEES' RETIREMENT PLANS (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
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 | $ 40,400 | $ 34,000 | $ 47,000 | |
Employer contributions | $ 4,100 | |||
Actuarial (gain) loss | 4,200 | |||
SG&A expenses | ||||
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 | 14,300 | 7,200 | 25,500 | |
Cost of goods sold | ||||
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 | 26,100 | 26,800 | 21,500 | |
BRP plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Deferred compensation liability, total | 48,200 | 43,100 | ||
Current value of segregated assets | 60,100 | 57,900 | ||
Net holding gain on segregated assets | 5,000 | (7,100) | $ 10,100 | |
Other Long-term Liabilities | BRP plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Deferred compensation liability, noncurrent | 41,100 | 40,000 | ||
Accrued Expenses and Other Payables | BRP plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Deferred compensation liability, current | $ 7,100 | $ 3,100 |
EMPLOYEES' RETIREMENT PLANS (Be
EMPLOYEES' RETIREMENT PLANS (Benefit Obligation and Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Employer contributions | $ 4,100 | |||
Actuarial (gain) loss | $ (4,200) | |||
U.K. Pension Plan | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 52,042 | $ 0 | ||
Acquisition | 0 | 68,966 | ||
Interest cost | 2,261 | 635 | ||
Amortization of net actuarial gain | (5,354) | (11,107) | ||
Benefits paid | (2,529) | (942) | ||
Foreign currency translation | (4,480) | 5,510 | ||
Benefit obligation at end of year | 50,900 | 52,042 | $ 0 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 60,454 | 0 | ||
Acquisition | 0 | 83,586 | ||
Actual return on plan assets | (13,533) | (15,718) | ||
Employer contributions | 297 | 73 | ||
Benefits paid | (2,529) | (942) | ||
Foreign currency translation | (4,833) | 6,545 | ||
Fair value of plan assets at end of year | 49,522 | 60,454 | 0 | |
Funded status at end of year (net asset (liability) recognized in the consolidated balance sheets as of August 31,) | (1,378) | 8,412 | ||
Net actuarial loss | 16,477 | 5,666 | ||
U.S. Pension Plan | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 26,568 | 33,687 | ||
Interest cost | 0 | 709 | 724 | |
Amortization of net actuarial gain | (47) | (6,010) | ||
Benefits paid | (466) | (1,818) | ||
Settlement | (26,055) | 0 | ||
Benefit obligation at end of year | 0 | 26,568 | 33,687 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 24,440 | 34,126 | ||
Actuarial (gain) loss | (47) | 0 | ||
Actual return on plan assets | (1,966) | (7,407) | ||
Administrative expenses | 0 | (461) | ||
Employer contributions | 4,094 | 0 | ||
Benefits paid | (466) | (1,818) | ||
Actuarial (gain) loss | (26,055) | 0 | ||
Fair value of plan assets at end of year | 0 | 24,440 | $ 34,126 | |
Funded status at end of year (net asset (liability) recognized in the consolidated balance sheets as of August 31,) | 0 | (2,128) | ||
Net actuarial loss | $ 0 | $ 2,278 |
EMPLOYEES' RETIREMENT PLANS (Ne
EMPLOYEES' RETIREMENT PLANS (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense | Selling, General and Administrative Expense |
U.K. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 2,261 | $ 635 | |
Expected return on plan assets | (2,589) | (1,067) | |
Total net periodic benefit gain | (328) | (432) | |
Net actuarial loss arising during measurement period | 10,811 | 5,666 | |
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected administrative expenses | 0 | 50 | $ 290 |
Interest cost | 0 | 709 | 724 |
Expected return on plan assets | 0 | (1,579) | (1,493) |
Settlements, curtailments and other | 4,245 | 0 | 0 |
Total net periodic benefit gain | 4,245 | (820) | (479) |
Net actuarial loss arising during measurement period | $ (2,278) | $ 3,388 | $ (4,344) |
EMPLOYEES' RETIREMENT PLANS (We
EMPLOYEES' RETIREMENT PLANS (Weighted-average Assumptions) (Details) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
U.K. Pension Plan | |||
Defined Benefit Plan Obligations | |||
Effective discount rate for benefit obligations | 5.30% | 4.30% | |
Net Periodic Benefit Cost | |||
Effective rate for interest on benefit obligations | 4.30% | 2.90% | |
Expected long-term rate of return | 0.046 | 0.040 | |
U.S. Pension Plan | |||
Defined Benefit Plan Obligations | |||
Effective discount rate for benefit obligations | 4.70% | ||
Net Periodic Benefit Cost | |||
Effective rate for interest on benefit obligations | 2.20% | 2.10% | |
Expected long-term rate of return | 0.050 | 0.050 |
EMPLOYEES' RETIREMENT PLANS (_2
EMPLOYEES' RETIREMENT PLANS (Weighted-average Asset Allocations (Details) - U.K. Pension Plan | Aug. 31, 2023 | Aug. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 100% | 100% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 88.20% | 71.40% |
Fixed income securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 85% | |
Fixed income securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 90% | |
Equity securities: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 0% | 12.40% |
Equity securities: | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 0% | |
Equity securities: | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 5% | |
Cash and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 11.80% | 16.20% |
Cash and other | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 10% | |
Cash and other | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 15% |
EMPLOYEES' RETIREMENT PLANS (Fa
EMPLOYEES' RETIREMENT PLANS (Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Plan assets | $ 49,522 | $ 60,454 | |
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 24,440 | $ 34,126 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Plan assets | 24,440 | ||
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 43,654 | 43,160 | |
Fixed income securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23,958 | ||
Fixed income securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 40,497 | 35,849 | |
Fixed income securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,157 | 7,311 | |
Cash and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,868 | 9,780 | |
Cash and other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 376 | 530 | |
Cash and other | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 482 | ||
Cash and other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,356 | 7,676 | |
Cash and other | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 136 | 1,574 | |
Equity securities: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,514 | ||
Equity securities: | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Equity securities: | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,514 | ||
Equity securities: | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 |
EMPLOYEES' RETIREMENT PLANS (Fu
EMPLOYEES' RETIREMENT PLANS (Future Pension Benefit Payments) (Details) - U.K. Pension Plan $ in Thousands | Aug. 31, 2023 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | $ 2,697 |
2025 | 2,764 |
2026 | 2,834 |
2027 | 2,905 |
2028 | 2,977 |
Next five years | $ 16,041 |
EMPLOYEES' RETIREMENT PLANS - (
EMPLOYEES' RETIREMENT PLANS - (Changed Related To Actual Return on Plan Assets) (Details) - U.K. Pension Plan - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets at beginning of year | $ 60,454 | $ 0 |
Foreign currency translation | (4,833) | 6,545 |
Fair value of plan assets at end of year | 49,522 | 60,454 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets at beginning of year | 8,885 | |
Sales | (4,997) | |
Assets held as of the reporting date | 134 | |
Assets sold during the year | 256 | |
Transfers out of Level 3 | (1,541) | |
Foreign currency translation | 556 | |
Fair value of plan assets at end of year | $ 3,293 | $ 8,885 |
CAPITAL STOCK (Narrative) (Deta
CAPITAL STOCK (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Oct. 13, 2021 | Oct. 27, 2014 | |
Stockholders' Equity Note [Abstract] | |||||
Share repurchase program, authorized amount | $ 350 | $ 100 | |||
Share repurchase program, remaining authorized repurchase amount | $ 86.7 | ||||
Preferred stock, shares authorized (shares) | 2,000,000,000,000 | 2,000,000,000,000 | |||
Preferred stock, par value per share (in USD per share) | $ 1 | $ 1 | |||
Preferred stock, shares outstanding (shares) | 0 | 0 | |||
Treasury stock acquired (in shares) | 2,309,452 | 4,496,628 | 0 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 43.91 | $ 36 |
EARNINGS PER SHARE (Calculation
EARNINGS PER SHARE (Calculations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net earnings | $ 859,760 | $ 1,217,262 | $ 412,865 |
Earnings Per Share, Basic [Abstract] | |||
Average basic shares outstanding (in shares) | 117,077,703 | 120,648,090 | 120,338,357 |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||
Effect of dilutive securities (in shares) | 1,528,568 | 1,724,296 | 1,645,140 |
Diluted earnings per share from continuing operations attributable to CMC (USD per share) | $ 7.25 | $ 9.95 | $ 3.38 |
Weighted Average Number of Shares Outstanding, Diluted, Total | 118,606,271 | 122,372,386 | 121,983,497 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Loss Contingencies [Line Items] | ||
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
CERCLA sites | ||
Loss Contingencies [Line Items] | ||
Total environmental liabilities | $ 4.5 | $ 5.3 |
Long-term environmental liabilities | $ 2 |
ACCRUED EXPENSES AND OTHER PA_3
ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Payables and Accruals [Abstract] | ||
Salaries and incentive compensation | $ 133,242 | $ 187,586 |
Taxes other than income taxes | 39,433 | 72,874 |
Worker's compensation and general liability insurance | 41,512 | 40,529 |
Accrued Utilities | $ 20,695 | $ 28,063 |
OPERATING SEGMENTS (Narrative)
OPERATING SEGMENTS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 USD ($) segments | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reporting segments | segments | 2 | ||
Net sales | $ | $ 8,799,533 | $ 8,913,481 | $ 6,729,760 |
OPERATING SEGMENTS (Summary of
OPERATING SEGMENTS (Summary of Certain Financial Information from Continuing Operations by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 8,799,533 | $ 8,913,481 | $ 6,729,760 | |
Adjusted EBITDA | 1,384,704 | 1,745,806 | 754,284 | |
Interest expense(1) | 40,127 | 50,709 | 51,904 | |
Capital expenditures | 606,665 | 449,988 | 184,165 | |
Depreciation and amortization | 218,830 | 175,024 | 167,613 | |
Asset impairments | $ 3,500 | 3,780 | 4,926 | 6,784 |
Total assets | 6,639,094 | 6,639,094 | 6,237,027 | |
Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 8,799,533 | 8,913,481 | 6,729,760 | |
Adjusted EBITDA | 1,384,704 | 1,745,806 | 754,284 | |
Interest expense(1) | 40,127 | 50,709 | 51,904 | |
Capital expenditures | 606,665 | 449,988 | 184,165 | |
Depreciation and amortization | 218,830 | 175,024 | 167,613 | |
Asset impairments | 3,780 | 4,926 | 6,784 | |
Total assets | 6,639,094 | 6,639,094 | 6,237,027 | 4,638,671 |
Segments | North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 7,347,020 | 7,298,632 | 5,670,976 | |
Adjusted EBITDA | 1,454,754 | 1,553,858 | 746,594 | |
Interest expense(1) | 116,650 | 26,798 | 25,131 | |
Capital expenditures | 548,218 | 415,157 | 134,932 | |
Depreciation and amortization | 170,266 | 135,322 | 132,192 | |
Asset impairments | 3,733 | 4,915 | 6,360 | |
Total assets | 5,006,458 | 5,006,458 | 4,467,314 | 3,221,465 |
Segments | North America | New Markets Tax Credit Transactions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 17,700 | |||
Segments | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,416,704 | 1,621,642 | 1,049,059 | |
Adjusted EBITDA | 61,353 | 346,051 | 148,258 | |
Interest expense(1) | 1,978 | 3,819 | 476 | |
Capital expenditures | 45,295 | 27,783 | 44,002 | |
Depreciation and amortization | 39,457 | 31,250 | 27,516 | |
Asset impairments | 47 | 11 | 424 | |
Total assets | 1,096,153 | 1,096,153 | 1,056,101 | 729,766 |
Segments | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (131,403) | (154,103) | (140,568) | |
Interest expense(1) | (78,501) | 20,092 | 26,297 | |
Capital expenditures | 13,152 | 7,048 | 5,231 | |
Depreciation and amortization | 9,107 | 8,452 | 7,905 | |
Asset impairments | 0 | 0 | 0 | |
Total assets | $ 536,483 | $ 536,483 | $ 713,612 | $ 687,440 |
OPERATING SEGMENTS (Reconciliat
OPERATING SEGMENTS (Reconciliations of Earnings from Continuing Operations to Adjusted Operating Profit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Reporting [Abstract] | ||||
Net earnings | $ 859,760 | $ 1,217,262 | $ 412,865 | |
Interest expense | (40,127) | (50,709) | (51,904) | |
Income taxes | (262,207) | (297,885) | (121,153) | |
Depreciation and amortization | 218,830 | 175,024 | 167,613 | |
Asset impairments | $ 3,500 | 3,780 | 4,926 | 6,784 |
Amortization of acquired unfavorable contract backlog | 0 | 0 | (6,035) | |
Adjusted EBITDA | $ 1,384,704 | $ 1,745,806 | $ 754,284 |
OPERATING SEGMENTS (External Ne
OPERATING SEGMENTS (External Net Sales from Continuing Operations by Major Product) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | $ 8,799,533 | $ 8,913,481 | $ 6,729,760 |
Segments | North America | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 7,347,020 | 7,298,632 | 5,670,976 |
Segments | Europe | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 1,416,704 | 1,621,642 | 1,049,059 |
Intersegment | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 0 | 0 | 0 |
Intersegment | North America | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 841 | 1,989 | 0 |
Intersegment | Europe | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 8,043 | 2,071 | 1,814 |
Corporate | Segments | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 35,809 | (6,793) | 9,725 |
Corporate | Intersegment | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | (8,884) | (4,060) | (1,814) |
Unaffiliated Customers | Segments | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 8,799,533 | 8,913,481 | 6,729,760 |
Unaffiliated Customers | Segments | North America | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 7,346,179 | 7,296,643 | 5,670,976 |
Unaffiliated Customers | Segments | Europe | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 1,408,661 | 1,619,571 | 1,047,245 |
Unaffiliated Customers | Corporate | Segments | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 44,693 | (2,733) | 11,539 |
Raw material products | Segments | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 1,342,815 | 1,529,366 | 1,182,838 |
Raw material products | Segments | North America | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 1,322,781 | 1,504,107 | 1,162,997 |
Raw material products | Segments | Europe | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 20,034 | 25,259 | 19,841 |
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 | 3,854,212 | 4,190,812 | 3,098,637 |
Steel products | Segments | North America | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 2,785,266 | 2,955,121 | 2,289,975 |
Steel products | Segments | Europe | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 1,068,946 | 1,235,691 | 808,662 |
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 | 2,718,104 | 2,537,870 | 2,006,367 |
Downstream products | Segments | North America | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 2,517,908 | 2,245,734 | 1,814,192 |
Downstream products | Segments | Europe | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 200,196 | 292,136 | 192,175 |
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 | 216,993 | 174,637 | 152,274 |
Other | Segments | North America | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 132,651 | 138,164 | 114,168 |
Other | Segments | Europe | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 39,649 | 39,206 | 26,567 |
Other | Corporate | Segments | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 44,693 | (2,733) | 11,539 |
Construction Related Solutions | Segments | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 667,409 | 480,796 | 289,644 |
Construction Related Solutions | Segments | North America | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 587,573 | 453,517 | 289,644 |
Construction Related Solutions | Segments | Europe | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | 79,836 | 27,279 | 0 |
Construction Related Solutions | Corporate | Segments | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Net sales | $ 0 | $ 0 | $ 0 |
OPERATING SEGMENTS (External _2
OPERATING SEGMENTS (External Net Sales from Continuing Operations by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 8,799,533 | $ 8,913,481 | $ 6,729,760 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 6,894,990 | 6,793,023 | 5,295,447 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 941,806 | 1,078,986 | 793,075 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 217,779 | 246,679 | 156,101 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 744,958 | $ 794,793 | $ 485,137 |
OPERATING SEGMENTS (Long-Lived
OPERATING SEGMENTS (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 2,593,276 | $ 2,073,818 | $ 1,699,350 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 2,343,606 | 1,858,269 | 1,473,745 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 209,966 | 180,350 | 225,582 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 39,704 | $ 35,199 | $ 23 |
SCHEDULE II _ VALUATION AND Q_2
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 4,990 | $ 5,553 | $ 9,597 |
Additions, Charged to Cost and Expense | 463 | 300 | (1,429) |
Additions, Charged to Other Accounts | 157 | 193 | 138 |
Deductions, Charged to Cost and Expense | 0 | 0 | 0 |
Deductions, Charged to Other Accounts | (1,475) | (1,056) | (2,753) |
Balance at End of Period | 4,135 | 4,990 | 5,553 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 268,547 | 278,099 | 281,849 |
Additions, Charged to Cost and Expense | 16,514 | 3,328 | 20,058 |
Additions, Charged to Other Accounts | 0 | 0 | 0 |
Deductions, Charged to Cost and Expense | (4,598) | (12,880) | (23,808) |
Deductions, Charged to Other Accounts | 0 | 0 | 0 |
Balance at End of Period | $ 280,463 | $ 268,547 | $ 278,099 |