Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Aug. 31, 2022 | Oct. 20, 2022 | Feb. 28, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Aug. 31, 2022 | ||
Entity Registrant Name | SCHNITZER STEEL INDUSTRIES, INC. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Trading Symbol | SCHN | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000912603 | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,287,231,031 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 000-22496 | ||
Entity Tax Identification Number | 93-0341923 | ||
Entity Address, Address Line One | 299 SW Clay Street | ||
Entity Address, Address Line Two | Suite 350 | ||
Entity Address, City or Town | Portland | ||
Entity Address, State or Province | OR | ||
Entity Address, Postal Zip Code | 97201 | ||
City Area Code | 503 | ||
Local Phone Number | 224-9900 | ||
Entity Incorporation, State or Country Code | OR | ||
Title of 12(b) Security | Class A Common Stock, $1.00 par value | ||
Security Exchange Name | NASDAQ | ||
ICFR Auditor Attestation Flag | true | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Portland, Oregon | ||
Auditor Firm ID | 238 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement for the January 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this report. | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 26,747,474 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 200,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 43,803 | $ 27,818 |
Accounts receivable, net | 237,654 | 214,098 |
Inventories | 315,189 | 256,427 |
Refundable income taxes | 1,696 | 837 |
Prepaid expenses and other current assets | 73,044 | 43,934 |
Total current assets | 671,386 | 543,114 |
Property, plant and equipment, net | 664,120 | 562,674 |
Operating lease right-of-use assets | 122,413 | 131,221 |
Investments in joint ventures | 12,841 | 12,844 |
Goodwill | 255,198 | 170,304 |
Intangibles, net | 26,155 | 3,980 |
Deferred income taxes | 24,598 | 27,561 |
Other assets | 49,886 | 42,665 |
Total assets | 1,826,597 | 1,494,363 |
Current liabilities: | ||
Short-term borrowings | 6,041 | 3,654 |
Accounts payable | 217,689 | 179,917 |
Accrued payroll and related liabilities | 59,702 | 69,622 |
Environmental liabilities | 13,031 | 24,743 |
Operating lease liabilities | 21,660 | 21,417 |
Accrued income taxes | 3,856 | 3,521 |
Other accrued liabilities | 59,594 | 49,976 |
Total current liabilities | 381,573 | 352,850 |
Deferred income taxes | 63,328 | 40,593 |
Long-term debt, net of current maturities | 242,521 | 71,299 |
Environmental liabilities, net of current portion | 55,469 | 52,385 |
Operating lease liabilities, net of current maturities | 101,651 | 113,165 |
Other long-term liabilities | 23,581 | 24,292 |
Total liabilities | 868,123 | 654,584 |
Commitments and contingencies (Note 9) | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Preferred stock – 20,000 shares $1.00 par value authorized, none issued | 0 | 0 |
Additional paid-in capital | 22,975 | 49,074 |
Retained earnings | 941,146 | 793,712 |
Accumulated other comprehensive loss | (37,089) | (34,554) |
Total SSI shareholders’ equity | 953,979 | 835,764 |
Noncontrolling interests | 4,495 | 4,015 |
Total equity | 958,474 | 839,779 |
Total liabilities and equity | 1,826,597 | 1,494,363 |
Class A Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | 26,747 | 27,332 |
Class B Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | $ 200 | $ 200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2022 | Aug. 31, 2021 |
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 26,747,000 | 27,332,000 |
Common stock, shares outstanding | 26,747,000 | 27,332,000 |
Class B Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 200,000 | 200,000 |
Common stock, shares outstanding | 200,000 | 200,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 3,485,815 | $ 2,758,551 | $ 1,712,343 |
Operating expense: | |||
Cost of goods sold | 2,997,745 | 2,305,357 | 1,503,725 |
Selling, general and administrative | 263,257 | 242,463 | 187,876 |
(Income) from joint ventures | (2,740) | (4,006) | (834) |
Asset impairment charges, net of recoveries | 1,570 | 5,729 | |
Restructuring charges and other exit-related activities | 77 | 1,008 | 8,993 |
Operating income | 225,906 | 213,729 | 6,854 |
Interest expense | (8,538) | (5,285) | (8,669) |
Other expense, net | (692) | (455) | (124) |
Income (loss) from continuing operations before income taxes | 216,676 | 207,989 | (1,939) |
Income tax expense | 44,597 | 37,935 | 166 |
Income (loss) from continuing operations | 172,079 | 170,054 | (2,105) |
Loss from discontinued operations, net of tax | (83) | (79) | (95) |
Net income (loss) | 171,996 | 169,975 | (2,200) |
Net income attributable to noncontrolling interests | (3,196) | (4,863) | (1,945) |
Net income (loss) attributable to SSI shareholders | $ 168,800 | $ 165,112 | $ (4,145) |
Net (loss) income per share attributable to SSI shareholders Basic: | |||
Income (loss) per share from continuing operations | $ 6.01 | $ 5.90 | $ (0.15) |
Net income (loss) per share | 6.01 | 5.90 | (0.15) |
Net (loss) income per share attributable to SSI shareholders Diluted: | |||
Income (loss) per share from continuing operations | 5.72 | 5.66 | (0.15) |
Net income (loss) per share | $ 5.72 | $ 5.66 | $ (0.15) |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Basic | 28,084 | 27,982 | 27,672 |
Diluted | 29,529 | 29,193 | 27,672 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 171,996 | $ 169,975 | $ (2,200) |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | (3,070) | 2,575 | 1,505 |
Pension obligations, net | 535 | (258) | 387 |
Total other comprehensive (loss) income, net of tax | (2,535) | 2,317 | 1,892 |
Comprehensive income (loss) | 169,461 | 172,292 | (308) |
Less comprehensive income attributable to noncontrolling interests | (3,196) | (4,863) | (1,945) |
Comprehensive income (loss) attributable to SSI shareholders | $ 166,265 | $ 167,429 | $ (2,253) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment | Cumulative Effect Period of Adoption Adjusted Balance | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class A Common Stock Cumulative Effect Period of Adoption Adjusted Balance | Common Stock Class B Common Stock | Common Stock Class B Common Stock Cumulative Effect Period of Adoption Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect Period of Adoption Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect Period of Adoption Adjustment | Retained Earnings Cumulative Effect Period of Adoption Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Cumulative Effect Period of Adoption Adjusted Balance | Total SSI Shareholders's Equity | Total SSI Shareholders's Equity Cumulative Effect Period of Adoption Adjustment | Total SSI Shareholders's Equity Cumulative Effect Period of Adoption Adjusted Balance | Noncontrolling Interests | Noncontrolling Interests Cumulative Effect Period of Adoption Adjusted Balance |
Beginning balance at Aug. 31, 2019 | $ 701,296 | $ 700,833 | $ 26,464 | $ 200 | $ 33,700 | $ 675,363 | $ 674,900 | $ (38,763) | $ 696,964 | $ 696,501 | $ 4,332 | ||||||||||
Beginning balance (Accounting Standards Update 2016-02) at Aug. 31, 2019 | $ (463) | $ (463) | $ (463) | ||||||||||||||||||
Beginning balance (in shares) at Aug. 31, 2019 | 26,464 | 200 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income (loss) | (2,200) | (4,145) | (4,145) | 1,945 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 1,892 | 1,892 | 1,892 | ||||||||||||||||||
Distributions to noncontrolling interests | (2,548) | 2,548 | |||||||||||||||||||
Share repurchases | (914) | $ 53 | 861 | 914 | |||||||||||||||||
Share repurchase (in shares) | 53 | ||||||||||||||||||||
Restricted stock withheld for taxes | (5,845) | $ 274 | 5,571 | 5,845 | |||||||||||||||||
Restricted stock withheld for taxes (in shares) | 274 | ||||||||||||||||||||
Issuance of restricted stock | $ 762 | (762) | |||||||||||||||||||
Issuance of restricted stock (in shares) | 762 | ||||||||||||||||||||
Share-based compensation cost | 10,110 | 10,110 | 10,110 | ||||||||||||||||||
Dividends | Accounting Standards Update 2016-02 | $ 20,892 | $ 20,892 | $ 20,892 | ||||||||||||||||||
Ending balance at Aug. 31, 2020 | $ 680,436 | $ 26,899 | $ 200 | $ 36,616 | $ 649,863 | (36,871) | $ (36,871) | $ 676,707 | $ 3,729 | ||||||||||||
Ending balance (in shares) at Aug. 31, 2020 | 26,899 | 200 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income (loss) | 169,975 | 165,112 | 165,112 | 4,863 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 2,317 | 2,317 | 2,317 | ||||||||||||||||||
Distributions to noncontrolling interests | (4,577) | (4,577) | |||||||||||||||||||
Share repurchase (in shares) | (657) | ||||||||||||||||||||
Restricted stock withheld for taxes | (5,638) | $ 224 | 5,414 | ||||||||||||||||||
Issuance of restricted stock | $ 657 | (657) | |||||||||||||||||||
Issuance of restricted stock (in shares) | 224 | ||||||||||||||||||||
Share-based compensation cost | 18,529 | 18,529 | 18,529 | ||||||||||||||||||
Dividends | (21,263) | 21,263 | 21,263 | ||||||||||||||||||
Ending balance at Aug. 31, 2021 | 839,779 | $ 27,332 | $ 200 | 49,074 | 793,712 | (34,554) | 835,764 | 4,015 | |||||||||||||
Ending balance (in shares) at Aug. 31, 2021 | 27,332 | 200 | 27,332 | 200 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income (loss) | 171,996 | 168,800 | 168,800 | 3,196 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (2,535) | (2,535) | (2,535) | ||||||||||||||||||
Distributions to noncontrolling interests | (2,716) | (2,716) | |||||||||||||||||||
Share repurchases | (34,248) | $ (944) | (33,304) | (34,248) | |||||||||||||||||
Share repurchase (in shares) | (944) | ||||||||||||||||||||
Restricted stock withheld for taxes | (11,057) | $ (209) | 10,848 | 11,057 | |||||||||||||||||
Restricted stock withheld for taxes (in shares) | (209) | ||||||||||||||||||||
Issuance of restricted stock | $ 568 | (568) | |||||||||||||||||||
Issuance of restricted stock (in shares) | 568 | ||||||||||||||||||||
Share-based compensation cost | 18,621 | 18,621 | 18,621 | ||||||||||||||||||
Dividends | (21,366) | (21,366) | (21,366) | ||||||||||||||||||
Ending balance at Aug. 31, 2022 | $ 958,474 | $ 26,747 | $ 200 | $ 22,975 | $ 941,146 | $ (37,089) | $ 953,979 | $ 4,495 | |||||||||||||
Ending balance (in shares) at Aug. 31, 2022 | 26,747 | 200 | 26,747 | 200 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per common share | $ 0.75 | $ 0.75 | $ 0.75 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 171,996 | $ 169,975 | $ (2,200) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Asset impairment charges, net | 1,570 | 5,729 | |
Exit-related asset impairments | 971 | ||
Depreciation and amortization | 75,053 | 58,599 | 58,173 |
Inventory write-downs | 3,199 | ||
Deferred income taxes | 25,052 | 6,884 | 15,096 |
Undistributed equity in earnings of joint ventures | (2,740) | (4,006) | (834) |
Share-based compensation expense | 18,517 | 18,213 | 10,033 |
Loss on disposal of assets, net | 824 | 717 | 530 |
Unrealized foreign exchange loss (gain), net | 78 | 127 | (67) |
Credit loss, net | 40 | 66 | |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | 633 | (84,086) | (2,252) |
Inventories | (37,232) | (88,622) | 39,226 |
Income taxes | 2,119 | 22,789 | (15,433) |
Prepaid expenses and other current assets | (19,117) | (15,674) | 63 |
Other long-term assets | (994) | (5,402) | (216) |
Operating lease assets and liabilities | (2,198) | (813) | 334 |
Accounts payable | 20,578 | 64,956 | (7,971) |
Accrued payroll and related liabilities | (13,866) | 27,824 | 13,465 |
Other accrued liabilities | 4,798 | 613 | 7,148 |
Environmental liabilities | (14,866) | 12,895 | 1,602 |
Other long-term liabilities | 1,132 | 3,825 | 134 |
Distributed equity in earnings of joint ventures | 3,100 | 1,250 | 1,000 |
Net cash provided by operating activities | 237,676 | 190,064 | 124,597 |
Cash flows from investing activities: | |||
Capital expenditures | (150,121) | (118,866) | (82,005) |
Acquisitions, net of acquired cash | (179,721) | ||
Proceeds from insurance and sale of assets | 18,776 | 587 | 1,290 |
Purchase of equity investment | (5,000) | ||
Deposit on land option | (80) | 630 | 1,860 |
Net cash used in investing activities | (316,146) | (117,649) | (78,855) |
Cash flows from financing activities: | |||
Borrowings from long-term debt | 1,055,106 | 546,706 | 690,162 |
Repayments of long-term debt | (889,127) | (578,030) | (698,492) |
Payment of debt issuance costs | (2,093) | (23) | (1,983) |
Repurchase of Class A common stock | (34,248) | (914) | |
Taxes paid related to net share settlement of share-based payment awards | (11,057) | (5,638) | (5,845) |
Distributions to noncontrolling interests | (2,716) | (4,577) | (2,548) |
Dividends paid | (21,291) | (21,259) | (20,884) |
Net cash provided by (used in) financing activities | 94,574 | (62,821) | (40,504) |
Effect of exchange rate changes on cash | (119) | 337 | 272 |
Net increase in cash and cash equivalents | 15,985 | 9,931 | 5,510 |
Cash and cash equivalents as of beginning of year | 27,818 | 17,887 | 12,377 |
Cash and cash equivalents as of end of year | 43,803 | 27,818 | 17,887 |
Cash paid during the year for: | |||
Interest | 4,712 | 2,669 | 5,503 |
Income taxes, net | 17,309 | 8,244 | 478 |
Schedule of noncash investing and financing transactions: | |||
Purchases of property, plant and equipment included in liabilities | $ 38,136 | $ 29,337 | $ 27,319 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2022 | |
Nature Of Operations [Abstract] | |
Nature of Operations | Note 1 - Nature of Operations Founded in 1906, Schnitzer Steel Industries, Inc., an Oregon corporation, is one of North America’s largest recyclers of ferrous and nonferrous metal, including end-of-life vehicles, and a manufacturer of finished steel products. Schnitzer Steel Industries, Inc. and its consolidated subsidiaries, together, are referred to as the Company. The Company acquires and recycles ferrous and nonferrous scrap metal for sale to foreign and domestic metal producers, processors, and brokers, and it procures salvaged vehicles and sells serviceable used auto parts from these vehicles through a network of self-service auto parts stores. Most of these auto parts stores supply the Company’s shredding facilities with auto bodies that are processed into saleable recycled metal products. In addition to the sale of recycled metal products processed at its facilities, the Company provides a variety of recycling and related services. The Company also produces a range of finished steel long products at its electric arc furnace (“EAF”) steel mill using recycled ferrous metal sourced internally from its recycling and joint venture operations and other raw materials. As of August 31, 2022 , all of the Company’s facilities were located in the United States (“U.S.”) and its territories and Canada. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of Schnitzer Steel Industries, Inc. and its majority-owned and wholly-owned subsidiaries. The equity method of accounting is used for investments in joint ventures over which the Company has significant influence but does not have effective control. All significant intercompany account balances, transactions, profits, and losses have been eliminated. All transactions and relationships with variable interest entities are evaluated to determine whether the Company is the primary beneficiary of the entities, therefore requiring consolidation. The Company does not have any variable interest entities requiring consolidation. Segment Reporting The accounting standards for reporting information about operating segments define an operating segment as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses for which discrete financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. The Company’s internal organizational and reporting structure reflects a functionally based, integrated model and includes a single operating and reportable segment. Accounting Changes As of the beginning of the first quarter of fiscal 2020, the Company adopted an accounting standards update that requires a lessee to recognize a lease liability and a lease right-of-use asset on its balance sheet for all leases greater than 12 months, including those classified as operating leases. The Company adopted the new lease accounting standard using the modified retrospective transition method, whereby it applied the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2019. Such cumulative-effect adjustment for the Company was less than $ 1 million, which is presented separately in the Consolidated Statements of Equity. Adoption using the modified retrospective transition method did not have an impact on any prior period earnings of the Company, and no comparative prior periods were adjusted for the new guidance. See Note 5 - Leases for the disclosures required under the new standard. Cash and Cash Equivalents Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $ 56 million and $ 47 million as of August 31, 2022 and 2021 , respectively. Accounts Receivable, net Accounts receivable represent amounts primarily due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for credit losses, are recorded at the invoiced amount and do not bear interest. The Company extends credit to customers under contracts containing customary and explicit payment terms, and payment is generally required within 30 to 60 days of shipment. Nonferrous export sales typically require a deposit prior to shipment. Historically, almost all of the Company’s ferrous export sales have been made with letters of credit. Ferrous and nonferrous metal sales to domestic customers and finished steel sales are generally made on open account, and a portion of these sales are covered by credit insurance. The Company evaluates the collectibility of its accounts receivable based on a combination of factors, including whether sales were made pursuant to letters of credit or required deposits prior to shipment, the aging of customer receivable balances, the financial condition of the Company’s customers, historical collection rates, and economic trends. Management uses this evaluation to estimate the amount of customer receivables that may not be collected in the future and records a provision for expected credit losses. Accounts are written off when all efforts to collect have been exhausted. The allowance for credit losses was $ 2 million as of both August 31, 2022 and 2021. Also included in accounts receivable are short-term advances to scrap metal suppliers used as a mechanism to acquire unprocessed scrap metal. The advances are generally repaid with scrap metal, as opposed to cash. Repayments of advances with scrap metal are treated as noncash operating activities in the Consolidated Statements of Cash Flows and totaled $ 11 million, $ 10 million, and $ 9 million for the fiscal years ended August 31, 2022, 2021, and 2020 , respectively. Inventories The Company’s inventories consist of processed and unprocessed scrap metal (ferrous, nonferrous, and mixed nonferrous recovered joint products arising from the manufacturing process), semi-finished steel products (billets), finished steel products (primarily rebar, wire rod, and merchant bar), used and salvaged vehicles, and supplies. Inventories are stated at the lower of cost and net realizable value. The Company determines the cost of ferrous and nonferrous scrap metal inventories using the average cost method and capitalizes substantially all direct processing costs and facility costs into inventory. The Company allocates material and production costs to joint products using the gross margin method. The Company determines the cost of used and salvaged vehicle inventory at its auto parts stores, which is reported within finished goods, based on the average price the Company pays for a vehicle and capitalizes the vehicle cost and substantially all production costs into inventory. The Company determines the cost of its semi-finished and finished steel product inventories based on average costs and capitalizes all direct and indirect costs of manufacturing into inventory. Indirect costs of manufacturing include general plant costs, maintenance, and facility costs. The Company determines the cost of the substantial majority of its supplies inventory using the average cost method and reduces the carrying value for losses due to obsolescence. Fixed manufacturing costs incurred in periods of abnormally low production are expensed. The Company considers estimated future selling prices when determining the estimated net realizable value of its inventory. As the Company generally sells its recycled ferrous metal under contracts that provide for shipment within 30 to 60 days after the price is agreed, it utilizes the selling prices under committed contracts and sales orders for determining the estimated net realizable value of quantities on hand that will be shipped under these contracts and sales orders. The accounting process the Company uses to record ferrous scrap metal quantities relies on significant estimates. With respect to estimating the quantities of unprocessed ferrous scrap metal inventory that are moved into production, management relies on weighed quantities of the processed ferrous material, adjusted for estimated metal recoveries and yields that are based on historical trends and other judgments by management. Actual recoveries and yields can vary depending on product quality, moisture content, and the source of the unprocessed metal. The Company’s estimates are intended to reasonably reflect the quantities of unprocessed ferrous scrap metal that are used in the production of processed ferrous metal. To assist in validating the reasonableness of these estimates, management periodically reviews shrink factors and performs monthly physical inventories. Due to the inherent nature of the Company’s scrap metal inventories, including variations in product density, holding period, and production processes utilized to manufacture the products, physical inventories will not necessarily detect all variances for scrap metal inventory such that estimates of quantities are required. To mitigate this risk, the Company further adjusts its ferrous physical inventories when the volume of a commodity is low and a physical inventory count is deemed to more accurately estimate the remaining volume. Leases The Company enters into leases to obtain access to real property, machinery, and equipment assets. Most of the Company’s lease obligations relate to real property leases for the Company’s operating sites, including the substantial majority of its auto parts stores, and for the Company’s administrative offices. The Company determines whether an arrangement contains a lease at inception by assessing whether it receives the right to direct the use of and obtain substantially all of the economic benefit from use of the underlying asset. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). Leases that, at lease commencement, have a non-cancellable lease term of 12 months or less and do not include an option to either purchase the underlying asset or renew the lease beyond 12 months that the Company is reasonably certain to exercise are classified as short-term leases and are not recognized on the balance sheet. For leases other than short-term leases, the Company recognizes right-of-use assets and lease liabilities based primarily on the present value of future minimum lease payments over the lease term at lease commencement. Right-of-use assets represent the Company’s right to use the underlying asset during the lease term, while lease liabilities represent the Company’s obligation to make future lease payments. The lease term is the non-cancellable period of the lease, together with periods covered by renewal (or termination) options which the Company is reasonably certain to exercise (or not to exercise). Lease payments are discounted to present value using the Company’s incremental borrowing rate unless the discount rate implicit in the lease is readily determinable. The Company’s incremental borrowing rate for each lease is the estimated rate of interest that the Company would have to pay to borrow the aggregate lease payments on a collateralized basis over the lease term. Estimation of the incremental borrowing rate requires judgment by management and reflects an assessment of the Company’s credit standing to derive an implied secured credit rating and corresponding yield curve. Right-of-use assets and lease liabilities are subject to remeasurement after lease commencement when certain events or changes in circumstances arise, such as a change in the lease term due to reassessment of whether the Company is reasonably certain to exercise a renewal or termination option. For operating leases, lease expense is recognized on a straight-line basis over the lease term. For finance leases, the lease right-of-use asset is amortized on a straight-line basis and interest expense is recognized on the lease liability using the effective interest rate method. Many of the Company’s real property leases contain variable lease payments that depend on an index or a rate, which are included in the measurement of the right-of-use asset and lease liability using the index or rate at lease commencement. Subsequent changes in variable lease payments are recorded as variable lease expenses during the period in which they are incurred. The Company elected a practical expedient to not separate lease and related non-lease components for accounting purposes and, thus, costs related to such non-lease components are disclosed as lease expense. Payments for short-term leases are recognized in the income statement on a straight-line basis over the lease term. See Note 5 - Leases for further detail. The Company leases machinery assets to customers primarily to facilitate the provision of recycling services. For the periods presented, such lessor arrangements were classified as operating leases, whereby the Company keeps the asset underlying the lease on its balance sheet and depreciates the asset based on its estimated useful life. The Company recognizes lease income for these operating leases on a straight-line basis within revenues in the Consolidated Statements of Operations. As of August 31, 2022 and 2021 , property, plant and equipment, net, as reported in the Consolidated Balance Sheets, included machinery assets underlying these operating leases with a carrying value of $ 13 million and $ 11 million, respectively . Lease income derived from these operating leases was not material to any of the periods presented. Property, Plant and Equipment, net Property, plant and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, while routine repair and maintenance costs are expensed as incurred. Interest cost related to the construction of qualifying assets is capitalized as part of the construction costs and was not material to any of the periods presented. When assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and resulting gains or losses are generally included in operating expense. Gains and losses from sales of assets related to an exit activity are reported within restructuring charges and other exit-related activities in the Consolidated Statements of Operations. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Upon idling an asset, depreciation continues to be recorded. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. As of August 31, 2022, the useful lives used for depreciation and amortization were as follows: Useful Life Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Enterprise Resource Planning (“ERP”) systems 6 to 17 Office equipment and other software licenses 3 to 10 Prepaid Expenses The Company’s prepaid expenses, reported within prepaid expenses and other current assets in the Consolidated Balance Sheets, totaled $ 43 million and $ 22 million as of August 31, 2022 and 2021, respectively, and consisted primarily of deposits on capital projects, prepaid insurance, prepaid services, and prepaid property taxes. Other Assets The Company’s other assets, exclusive of prepaid expenses and assets relating to certain employee benefit plans, consisted primarily of receivables from insurers, two equity investments, capitalized implementation costs for cloud computing arrangements, cash held in a client trust account relating to a legal settlement, major spare parts and equipment, debt issuance costs, and notes and other contractual receivables. Other assets are reported within either prepaid expenses and other current assets or other assets in the Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. See Note 13 - Employee Benefits for further detail on the Company’s assets relating to employee benefit plans. Receivables from insurers represent the portion of insured losses expected to be recovered from the Company’s insurers. The receivable is recorded at an amount not to exceed the recorded loss and only if the terms of legally enforceable insurance contracts support that the insurance recovery will not be disputed and is deemed collectible. Receivables from insurers totaled $ 28 million and $ 21 million as of August 31, 2022 and 2021, respectively. As of August 31, 2022 , receivables from insurers comprised primarily $ 10 million relating to property loss and damage and other claims in connection with the December 2021 fire at the Company’s shredder facility in Everett, Massachusetts, $ 7 million relating to environmental claims, $ 6 million relating to third-party claims, and $ 4 million relating to workers’ compensation claims. As of August 31, 2021 , receivables from insurers comprised primarily $ 10 million relating to property loss and damage and other claims in connection with the May 2021 fire at the Company’s melt shop operations in McMinnville, Oregon, $ 6 million relating to environmental claims, and $ 4 million relating to workers’ compensation claims. See “Accounting for Impacts of Involuntary Events” below in this Note for further discussion of receivables and advance payments from insurers relating to property damage and business interruption claims. Other assets as of August 31, 2022 and 2021 also included approximately $ 7 million and $ 8 million, respectively, in connection with cash deposited into a client trust account in the second quarter of fiscal 2021 to fund the remediation of a site, a portion of which was previously leased to and operated by an indirect, wholly-owned subsidiary. The cash was deposited into the client trust account by other potentially liable parties in connection with settlement of a lawsuit relating to allocation of the remediation costs, including agreement by the Company’s subsidiary to perform certain remedial actions. See “Other Legacy Environmental Loss Contingencies” within “Contingencies – Environmental” in Note 10 - Commitments and Contingencies for further discussion of this matter. The Company invested $ 6 million in the equity of a privately-held U.S. waste and recycling entity in fiscal 2017, and in May 2022, the Company invested $ 5 million in the equity of an unrelated privately-held Canadian recycling entity. In August 2022, the privately-held U.S. waste and recycling entity merged with a publicly-traded U.S. entity. As a result of the merger, the Company's investment is held in equity units of a subsidiary of the publicly-traded entity, which equity units are not publicly traded but are exchangeable for shares of the publicly-traded entity. The timing and magnitude of exchange is solely at the discretion of the publicly-traded entity. The Company's influence over the operating and financial policies of each entity is not significant, and, thus, the investments are accounted for under the guidance for investments in equity securities. The equity investments do not have readily determinable fair values and, therefore, are carried at cost and adjusted for impairments and observable price changes. The investments are reported within other assets in the Consolidated Balance Sheets. As of August 31, 2022 and 2021, the aggregate carrying value of the investments was $ 11 million and $ 6 million , respectively. The Company has not recorded any impairments or upward or downward adjustments to the carrying value of the investments since their respective acquisition. The Company’s cloud computing arrangements primarily comprise hosting arrangements which are service contracts, whereby the Company gains remote access to use enterprise software hosted by the vendor or another third party on an as-needed basis for a period of time in exchange for a subscription fee. Subscription fees are usually prepaid and recorded in operating expense over the period that the Company has access to use the software. Implementation costs for cloud computing arrangements are capitalized if certain criteria are met and consist of internal and external costs directly attributable to developing and configuring cloud computing software for its intended use. Amortization of capitalized implementation costs is recorded on a straight-line basis over the term of the cloud computing arrangement, which is the non-cancellable period of the agreement, together with periods covered by renewal options which the Company is reasonably certain to exercise. Debt issuance costs consist primarily of costs incurred by the Company to enter or modify its credit facilities. The Company reports deferred debt issuance costs within other assets in the Consolidated Balance Sheets and amortizes them to interest expense on a straight-line basis over the contractual term of the arrangement. Notes and other contractual receivables consist primarily of advances to entities in the business of extracting scrap metal through demolition and other activities. Repayment of these advances to suppliers is in either cash or scrap metal. The Company performs periodic reviews of its notes and other contractual receivables to identify credit risks and to assess the overall collectibility of the receivables, which typically involves consideration of the value of collateral which in the case of advances to suppliers is generally in the form of scrap metal extracted from demolition and construction projects. A note or other contractual receivable is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the agreement. If the carrying value of the receivable exceeds its recoverable amount, an impairment is recorded for the difference. Accounting for Impacts of Involuntar y Events Assets destroyed or damaged as a result of involuntary events are written off or reduced in carrying value to their salvage value. When recovery of all or a portion of the amount of property damage loss or other covered expenses through insurance proceeds is demonstrated to be probable, a receivable is recorded and offsets the loss or expense up to the amount of the total loss or expense. No gain is recorded until all contingencies related to the insurance claim have been resolved. On May 22, 2021, the Company experienced a fire at its steel mill in McMinnville, Oregon. Direct physical loss or damage to property from the incident was limited to the mill’s melt shop, with no bodily injuries and no physical loss or damage to other buildings or equipment. As a result of the fire, the rolling mill production ceased in early June 2021. In August 2021, the steel mill began ramping up operations following the substantial completion of replacement and repairs of property and equipment in the melt shop that had been lost or damaged by the fire. The Company experienced the loss of business income during the shutdown of the steel mill and the subsequent ramp-up phase, which was substantially completed during the second quarter of fiscal 2022. The Company filed initial insurance claims for the physical loss and damage experienced at the mill's melt shop and business income losses resulting from the matter. As of August 31, 2021, prepaid expenses and other current assets in the Consolidated Balance Sheets included an initial $ 10 million insurance receivable recognized in the fourth quarter of fiscal 2021, primarily offsetting applicable losses including capital purchases of $ 10 million that had been incurred by the Company as of August 31, 2021. In fiscal 2022, the Company increased the amount of this insurance receivable to $ 25 million and recognized a related $ 15 million insurance recovery gain within cost of goods sold in the Consolidated Statements of Operations, reflecting recovery of applicable losses incurred as a result of the fire to date. In addition, during fiscal 2022, the Company received advance payments from insurers totaling approximately $ 30 million towards the Company’s claims, and not reflecting any final or full settlement of claims with the insurers, which amount reduced the $ 25 million insurance receivable to zero with the remaining amount of advance payments of $ 5 million reported within other accrued liabilities in the Consolidated Balance Sheets as of August 31, 2022. On December 8, 2021, the Company experienced a fire at its metals recycling facility in Everett, Massachusetts. Direct physical loss or damage to property from the incident was limited to the facility’s shredder building and equipment, with no bodily injuries and no physical loss or damage to property reported at other buildings or equipment. As a result of the fire, shredding operations ceased, while all non-shredding operations at the facility continued, including torching, shearing, separating, and sorting purchased non-shreddable recycled ferrous metals. On January 28, 2022, shredding operations at the facility began ramping up following the replacement and repairs to shredder equipment that had been damaged. Completion of the remainder of repair and replacement of property that experienced physical loss or damage, primarily buildings and improvements, will occur over a longer period and impacts on business income may continue. In addition, as of June 18, 2022, shredder operations temporarily ceased at the facility pending completion of discussions with the Massachusetts Department of Environmental Protection and the Massachusetts Attorney General’s office regarding installation and operation of temporary emission capture and controls that would allow operation of the shredder prior to completion of the repair and replacement of the shredder enclosure building. Non-shredding operations at the facility continue. The Company filed initial insurance claims for the property that experienced physical loss or damage and anticipated business income losses resulting from the matter. In fiscal 2022, the Company recognized an aggregate $ 17 million insurance receivable and related insurance recovery gain, reported within prepaid expenses and other current assets in the Consolidated Balance Sheets and within cost of goods sold in the Consolidated Statements of Operations, respectively, reflecting recovery of applicable losses including impairment charges of $ 7 million related to the carrying value of plant and equipment assets lost in or damaged by the fire and initial capital purchases, non-capitalizable repair and replacement costs, and other applicable losses totaling $ 10 million that had been incurred by the Company as of August 31, 2022. Also, during fiscal 2022, the Company received advance payments from insurers totaling approximately $ 7 million towards the Company's claims, and not reflecting any final or full settlement of claims with the insurers, which amount reduced the insurance receivable to $ 10 million as of August 31, 2022. Long-Lived Assets The Company tests long-lived tangible and intangible assets for impairment at the asset group level, which is determined based on the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Operating lease right-of-use assets are considered long-lived assets subject to this impairment testing. For the Company’s metals recycling operations, an asset group generally consists of the regional shredding operation along with surrounding feeder operations, except that the combined Oregon metals recycling and steel manufacturing operations is a single asset group. For the Company’s auto parts operations, generally each auto parts store is an asset group. The Company tests its asset groups for impairment when certain triggering events or changes in circumstances indicate that the carrying value of the asset group may be impaired. If the carrying value of the asset group is not recoverable because it exceeds the Company’s estimate of future undiscounted cash flows from the use and eventual disposition of the asset group, an impairment loss is recognized by the amount the carrying value exceeds its fair value, if any. The impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value. Fair value is determined using one or more of the income, market, or cost approaches, depending on the nature of the asset group. With respect to individual long-lived assets, changes in circumstances may merit a change in the estimated useful lives or salvage values of the assets, which are accounted for prospectively in the period of change. For such assets, the useful life is shortened based on the Company’s plans to dispose of or abandon the asset before the end of its original useful life and depreciation is accelerated beginning when that determination is made. Long-lived asset impairment charges (recoveries) and accelerated depreciation are reported in the Consolidated Statements of Operations within (1) asset impairment charges, net and (2) restructuring charges and other exit-related activities if related to a site closure. In fiscal 2022, the Company reported $ 2 million of such items within asset impairment charges, net, related primarily to abandonment of obsolete machinery and equipment assets. In fiscal 2020, the Company reported $ 6 million of such items within asset impairment charges, net, comprising primarily $ 2 million related to abandonment of obsolete machinery and equipment assets, $ 2 million related to impairment of two auto parts stores, and $ 2 million related to accelerated depreciation due to the shortening of the useful lives of certain metals recovery assets. Investments in Joint Ventures As of August 31, 2022, the Company had two 50 %-owned joint venture interests which were accounted for under the equity method of accounting. One of the joint ventures sells recycled metal to the Company’s operations at prices that approximate local market rates, which produces intercompany profit. This intercompany profit is eliminated while the products remain in inventory and is not recognized until the finished products are sold to third parties. As of August 31, 2022, the Company’s investments in equity method joint ventures have generated $ 12 million in cumulative undistributed earnings. A loss in value of an investment in a joint venture is recognized when the decline is other than temporary. Management considers all available evidence to evaluate the realizable value of its investments including the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the joint venture business, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Once management determines that an other-than-temporary impairment exists, the investment is written down to its fair value, which establishes a new cost basis. The Company determines fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. See Note 18 - Related Party Transactions for further detail on transactions with joint ventures. Goodwill and Other Intangible Assets, net Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually on July 1 and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. Impairment of goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a “component”). A component of an operating segment is required to be identified as a reporting unit if the component is a business for which discrete financial information is available and segment management regularly reviews its operating results. When testing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determines that an impairment is more-likely-than-not, the Company is then required to perform the quantitative impairment test, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. When performing the quantitative impairment test, the Company applies a one-step quantitative test and records the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. When the Company performs a quantitative goodwill impairment test, it estimates the fair value of the reporting unit using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Note 3 - Recent Accounting Pronouncements In June 2022, an accounting standards update was issued that clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Further, the guidance requires improved disclosures to help users of financial statements better understand the fair value, nature, and timing of equity securities subject to contractual sale restrictions. The guidance is applicable to all equity investments measured at fair value that are subject to contractual restrictions. The standard is effective for the Company beginning in fiscal 2025, including interim periods within that fiscal year. Management does not expect adoption to have a material impact on the Company's consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2022 | |
Inventory, Net [Abstract] | |
Inventories | Note 4 - Inventories Inventories consisted of the following as of August 31 (in thousands): 2022 2021 Processed and unprocessed scrap metal $ 166,368 $ 164,960 Semi-finished goods 20,009 7,671 Finished goods 72,625 39,368 Supplies 56,187 44,428 Inventories $ 315,189 $ 256,427 |
Leases
Leases | 12 Months Ended |
Aug. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 5 - Leases The Company’s operating leases for real property underlying certain auto parts stores, metals recycling facilities, and administrative offices generally have non-cancellable lease terms of 5 to 10 years , and the significant majority contain multiple renewal options for a further 5 to 20 years . Renewal options which the Company is reasonably certain to exercise are included in the measurement of lease term. The Company’s finance leases and other operating leases involve primarily transportation equipment assets, have non-cancellable lease terms of less than 10 years and usually do not include renewal options. The Company’s fiscal 2022 total lease cost was $ 36 million, consisting primarily of operating lease expense of $ 25 million and short-term lease expense of $ 10 million. The Company’s fiscal 2021 total lease cost was $ 30 million, consisting primarily of operating lease expense of $ 24 million and short-term lease expense of $ 5 million. The Company’s fiscal 2020 total lease cost was $ 28 million, consisting primarily of operating lease expense of $ 23 million and short-term lease expense of $ 4 million. The other components of the Company’s total lease cost for each of fiscal 2022, 2021 and 2020, including finance lease amortization and interest expense, variable lease expense, and sublease income, were not material both individually and in aggregate. The substantial majority of the Company’s total lease cost for each of fiscal 2022, 2021, and 2020 is presented within cost of goods sold in the Consolidated Statements of Operations. Finance lease assets and liabilities consisted of the following as of August 31 (in thousands): Balance Sheet Classification 2022 2021 Assets: Finance lease right-of-use assets (1) Property, plant and equipment, net $ 4,861 $ 5,422 Liabilities: Finance lease liabilities - current Short-term borrowings $ 1,736 $ 1,464 Finance lease liabilities - noncurrent Long-term debt, net of current maturities 4,158 5,127 Total finance lease liabilities $ 5,894 $ 6,591 (1) Presented net of accumulated amortization of $ 4 million and $ 2 million as of August 31, 2022 and 2021 , respectivel y. The weighted average remaining lease terms and weighted average discount rates for the Company’s leases as of August 31: 2022 2021 Weighted Average Weighted Average Weighted Average Weighted Average Operating leases 9.5 3.36 % 9.7 3.37 % Finance leases 4.5 7.17 % 5.2 7.78 % Maturities of lease liabilities by fiscal year as of August 31, 2022 were as follows (in thousands): Year Ending August 31, Finance Leases Operating Leases 2023 $ 1,991 $ 25,012 2024 1,715 20,810 2025 920 15,913 2026 700 12,754 2027 615 11,307 Thereafter 735 59,999 Total lease payments 6,676 145,795 Less amounts representing interest ( 782 ) ( 22,484 ) Total lease liabilities 5,894 123,311 Less current maturities ( 1,736 ) ( 21,660 ) Lease liabilities, net of current maturities $ 4,158 $ 101,651 Supplemental cash flow information and non-cash activity related to leases are as follows (in thousands): Year Ended August 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 25,351 $ 24,154 $ 22,225 Operating cash flows for finance leases $ 403 $ 498 $ 628 Financing cash flows for finance leases $ 1,483 $ 1,332 $ 1,336 Lease liabilities arising from obtaining right-of-use assets (1) : Operating leases $ 12,000 $ 8,325 $ 34,586 Finance leases $ 534 $ 445 $ 1,230 (1) Amounts include new leases and adjustments to lease balances as a result of remeasurement. |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Aug. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, net | Note 6 - Property, Plant and Equipment, net Property, plant and equipment, net consisted of the following as of August 31 (in thousands): 2022 2021 Machinery and equipment $ 875,904 $ 791,043 Land and improvements 324,453 304,188 Buildings and leasehold improvements 148,634 147,106 Enterprise resource planning (ERP) systems 18,945 17,760 Office equipment and other software licenses 30,797 37,326 Construction in progress 120,419 102,544 Property, plant and equipment, gross 1,519,152 1,399,967 Less accumulated depreciation ( 855,032 ) ( 837,293 ) Property, plant and equipment, net (1) $ 664,120 $ 562,674 (1) Property, plant and equipment, net included $ 22 million and $ 18 million as of August 31, 2022 and 2021, respectively, related to the Company’s Canadian operations. Depreciation expense for property, plant and equipment, which includes amortization expense for finance lease right-of-use assets, was $ 72 million , $ 58 million , and $ 57 million for the years ended August 31, 2022, 2021, and 2020, respectively. See Note 5 - Leases for additional disclosure on finance leases. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Aug. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Note 7 - Business Acquisitions Columbus Recycling On October 1, 2021 , the Company used cash on hand and borrowings under existing credit facilities to acquire eight metals recycling facilities across Mississippi, Tennessee, and Kentucky from Columbus Recycling, a provider of recycled ferrous and nonferrous metal products and recycling services. The transaction qualified as a business combination for accounting purposes, which involves application of the acquisition method described in Accounting Standards Codification Topic 805, Business Combinations , and summarized in “Business Acquisitions” in Note 2 - Summary of Significant Accounting Policies . The cash purchase price was approximately $ 107 million, subject to adjustment for acquired net working capital relative to an agreed-upon benchmark, as well as other adjustments. The Company paid an additional $ 7 million at closing and an additional $ 3 million in August 2022, primarily for acquired net working capital in excess of the benchmark, resulting in total purchase consideration measured as of the fiscal year ended August 31, 2022 of approximately $ 117 million. The acquired Columbus Recycling operations purchase and process scrap metal from industrial manufacturers, local recycling companies, and individuals, and sell the recycled products to regional foundries and steel mills. Combined with the Company’s regional metals recycling facilities in Georgia, Alabama, and Tennessee, the acquired operations offer additional recycling products, services, and logistics solutions to customers and suppliers across the Southeast, giving rise to expected benefits supporting the amount of acquired goodwill. The following table summarizes the fair values of the assets acquired and liabilities assumed by the Company as of the October 1, 2021 acquisition date (in thousands): Cash $ 325 Accounts receivable 22,763 Inventories 10,060 Other current assets 255 Property, plant and equipment 13,491 Operating lease right-of-use assets 254 Goodwill (1) 65,203 Other intangible assets 19,741 Total assets acquired 132,092 Current liabilities 11,828 Other liabilities 3,350 Total liabilities assumed 15,178 Net assets acquired $ 116,914 (1) Approximately $ 62 million of the amount of acquired goodwill is tax deductible. The following table summarizes the purchase price allocation to the identifiable intangible assets and their estimated useful lives as of the October 1, 2021 acquisition date (in thousands): Useful Life Supplier relationships $ 17,245 7 Customer relationships 2,496 7 $ 19,741 The results of operations for the acquired Columbus Recycling business beginning as of the October 1, 2021 acquisition date are included in the accompanying consolidated financial statements. For the fiscal year ended August 31, 2022, the revenues of the acquired Columbus Recycling business contributed 4% of the Company’s consolidated revenues reported on the Consolidated Statements of Operations, and the amount of net income contributed by the acquired Columbus Recycling business was not material to the consolidated financial statements taken as a whole. Encore Recycling On April 29, 2022 , the Company used cash on hand and borrowings under existing credit facilities to acquire two recycling facilities in the greater Atlanta, Georgia metropolitan area, including a metal shredding operation and recycled auto-parts center from the previous owners of Encore Recycling. The acquired Encore Recycling operations purchase and process scrap metal and end-of life vehicles from industrial manufacturers, local recycling companies, and individuals, and sell the recycled products to regional foundries and steel mills. Combined with the Company’s existing regional metals recycling facilities and recycled auto-parts centers, the acquired operations offer additional recycling products, services, and logistics solutions to customers and suppliers across portions of the Southeast, giving rise to expected benefits supporting the amount of acquired goodwill. The transaction qualified as a business combination for accounting purposes. The cash purchase price was approximately $ 55 million, subject to adjustment for acquired net working capital relative to an agreed-upon benchmark, as well as other adjustments. The Company paid an additional $ 8 million at closing for estimated net working capital in excess of the benchmark, which was still subject to adjustment as of the end of fiscal 2022, resulting in total purchase consideration measured as of August 31, 2022 of approximately $ 63 million. As of the date of this report, measurement of actual acquired net working capital, as well as the fair values of certain other acquired assets and assumed liabilities, is still preliminary and subject to change based on the completion of valuation procedures. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed by the Company as of the April 29, 2022 acquisition date (in thousands): Accounts receivable $ 10,356 Inventories 4,325 Other current assets 15 Property, plant and equipment 25,143 Operating lease right-of-use assets 402 Goodwill (1) 20,494 Other intangible assets 4,809 Total assets acquired 65,544 Current liabilities 1,322 Other liabilities 1,091 Total liabilities assumed 2,413 Net assets acquired $ 63,131 (1) Approximately $ 20 million of the provisional amount of acquired goodwill is tax deductible. The following table summarizes the provisional purchase price allocation to the identifiable intangible assets and their estimated useful lives as of the April 29, 2022 acquisition date (in thousands): Useful Life Supplier relationships $ 3,679 7 Customer relationships 1,130 7 $ 4,809 The results of operations for the acquired Encore Recycling business beginning as of the April 29, 2022 acquisition date are included in the accompanying consolidated financial statements. For the fiscal year ended August 31, 2022, the revenues and net income contributed by the acquired Encore Recycling business and reported in the Consolidated Statements of Operations were not material to the consolidated financial statements taken as a whole. The following unaudited pro forma information presents the effect on the consolidated financial results of the Company of the Columbus Recycling and Encore Recycling businesses acquired during fiscal 2022 as though the businesses had been acquired as of the beginning of fiscal 2021 (in thousands): Year Ended August 31, 2022 2021 Revenues $ 3,566,000 $ 2,989,000 Net income $ 184,500 $ 179,000 Net income attributable to SSI shareholders $ 181,000 $ 174,500 There are no individually material, nonrecurring pro forma adjustments directly attributable to the business combinations included in these pro forma revenues and earnings. The information included in the pro forma amounts is derived from historical information obtained from the sellers of the businesses. These pro forma results are not necessarily indicative of what actual results would have been had these acquisitions occurred as of the beginning of fiscal 2021. In addition, the pro forma results are not intended to be a projection of future results and do not reflect any synergies that may be achieved from combining operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Note 8 - Goodwill and Other Intangible Assets, net Goodwill The Company evaluates goodwill for impairment annually on July 1 and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. In the fourth quarter of fiscal 2022, the Company performed the annual goodwill impairment test as of July 1, 2022. As of the testing date, the balance of the Company’s goodwill was $ 254 million, which was carried in three reporting units. Substantially all of the $ 85 million of goodwill carried by one of the reporting units, a regional metals recycling operation, related to two business acquisitions that were completed in fiscal 2022. The Company elected to perform the qualitative assessment for this reporting unit and concluded that it was not more likely than not that the fair value of the reporting unit was less than its carrying value. The remaining $ 169 million of goodwill was carried by two reporting units, which consist of a regional metals recycling operation and the Company's network of auto parts stores. For this remaining amount of goodwill, the Company had last performed the quantitative impairment test of goodwill in the fourth quarter of fiscal 2020 using a measurement date of July 1, 2020. Based on the changes in market conditions related to the general economy and the metals recycling industry, the extent of time that had passed since the last quantitative goodwill impairment test as of July 1, 2020, and the realignment of reporting units as of September 1, 2020, the Company elected to not perform the qualitative assessment and proceed directly to the quantitative impairment test for goodwill carried by these two reporting units to identify potential impairment and measure an impairment loss, if necessary. The quantitative impairment test entails estimating the fair value of each reporting unit carrying goodwill and comparing it to the reporting unit’s carrying amount. The Company records the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, if any, not to exceed the total amount of goodwill allocated to that reporting unit. The Company estimated the fair value of the metals recycling and autos reporting units subject to the quantitative impairment test as of July 1, 2022 using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based WACC assessed specifically for each reporting unit. The determination of fair value involves the use of estimates and assumptions, including revenue growth rates driven by future ferrous and nonferrous commodity price and sales volume expectations, automobile scrap and core price and sales volume expectations, gross margins, selling, general and administrative expense relative to total revenues, capital expenditures, working capital requirements, discount rate (WACC), tax rate, terminal growth rate, benefits associated with a taxable transaction, and synergistic benefits available to market participants. In addition, to corroborate the valuation of the reporting units, the Company used a market approach based on earnings multiple data and a reconciliation of the Company’s estimate of the aggregate fair value of all reporting units to the Company’s market capitalization, including consideration of a control premium. For the metals recycling and autos reporting units subject to the quantitative impairment test, the estimated fair value of the reporting unit exceeded its carrying amount by approximately 32 % and 44 %, respectively, as of July 1, 2022. The projections used in the income approach for the metals recycling and autos reporting units took into consideration, as applicable, the impact of recent and current market conditions for ferrous and nonferrous recycled metals, the cost of obtaining adequate supply flows of scrap metal including end-of-life vehicles, and recent trends in retail auto parts sales. The projections assumed a limited recovery of operating margins from the levels experienced around the time of the July 1, 2022 measurement date over a multi-year period. The WACC rates used in the income approach valuation for the metals recycling and autos reporting units were 13.33 % and 12.13 %, respectively, and the terminal growth rate used for both reporting units was 2.0 %. A company-specific risk premium is embedded in the WACC to reflect the perceived level of uncertainty inherent in each reporting unit's expected future cash flows. Assuming all other components of the fair value estimates were held constant, an increase in the WACC of 100 basis points for each of the metals recycling reporting unit and the autos reporting unit would have decreased indicated headroom to 21 % and 29 %, respectively. The Company reconciled its market capitalization to the aggregated estimated fair value of all reporting units, including consideration of a control premium representing the estimated amount a market participant would pay to obtain a controlling interest in the Company. The implied control premium resulting from the difference between (i) the Company's market capitalization (based on the average trading price of the Company's Class A common stock for the two-week period ended July 1, 2022) increased by the estimated fair value of noncontrolling interests and (ii) the higher aggregated estimated fair value of all reporting units was within the historical range of average and mean premiums observed for historical transactions within the steel-making, scrap processing, and metals industries. The Company identified specific reconciling items, including market participant synergies, tax amortization benefits, and benefits from in-process technology investments, which supported the implied control premium as of July 1, 2022. The gross change in the carrying amount of goodwill for the years ended August 31, 2022 and 2021 was as follows (in thousands): Goodwill Balance as of September 1, 2020 $ 169,627 Foreign currency translation adjustment 677 Balance as of August 31, 2021 170,304 Additions (1) 84,040 Measurement period adjustments 1,657 Foreign currency translation adjustment ( 803 ) Balance as of August 31, 2022 $ 255,198 (1) Additions to goodwill relate to the acquired Columbus Recycling business (approximately $ 62 million) and the Encore Recycling business (approximately $ 22 million) and are exclusive of measurement period adjustments relating to these same business acquisitions, which adjustments are presented separately. The amount of acquired goodwill in the Encore Recycling acquisition was provisional as of August 31, 2022. See Note 7 - Business Acquisitions . Accumulated goodwill impairment charges were $ 471 million as of each of August 31, 2022 and 2021. Other Intangible Assets, net The following table presents the Company’s other intangible assets as of August 31 (in thousands): 2022 2021 Gross Accumulated Net Gross Accumulated Net Covenants not to compete $ 7,780 $ ( 4,442 ) $ 3,338 $ 6,745 $ ( 3,846 ) $ 2,899 Supplier relationships (1) 20,924 ( 2,433 ) 18,491 — — — Customer relationships (1) 3,626 ( 381 ) 3,245 — — — Indefinite-lived intangibles (2) 1,081 — 1,081 1,081 — 1,081 Total $ 33,411 $ ( 7,256 ) $ 26,155 $ 7,826 $ ( 3,846 ) $ 3,980 (1) Purchase price allocated to identifiable intangible assets in connection with the acquisition of the Columbus Recycling business and the Encore Recycling business in fiscal 2022. The amount of acquired intangible assets in connection with the Encore Recycling acquisition, as presented above in Note 7 - Business Acquisitions, was provisional as of August 31, 2022. (2) Indefinite-lived intangibles include previously acquired trade names and certain permits and licenses. Total intangible asset amortization expense was $ 3 million for the year ended August 31, 2022 , and $ 1 million in each of the years ended August 31, 2021, and 2020 . There were no impairments of intangible assets recognized for the periods presented. The estimated amortization expense, based on current intangible asset balances, during the next five fiscal years and thereafter is as follows (in thousands): Years Ending August 31, Estimated 2023 $ 4,283 2024 4,232 2025 4,078 2026 4,078 2027 3,834 Thereafter 4,569 Total $ 25,074 |
Debt
Debt | 12 Months Ended |
Aug. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 - Debt Debt consisted of the following as of August 31 (in thousands): 2022 2021 Bank revolving credit facilities, interest primarily at SOFR or LIBOR plus a spread $ 230,000 $ 60,000 Finance lease liabilities 5,894 6,591 Other debt obligations 12,668 8,362 Total debt 248,562 74,953 Less current maturities ( 6,041 ) ( 3,654 ) Debt, net of current maturities $ 242,521 $ 71,299 On August 22, 2022, the Company and certain of its subsidiaries entered into the Third Amendment to the Third Amended and Restated Credit Agreement (the "Amended Credit Agreement"), by and among Schnitzer Steel Industries, Inc., as the U.S. borrower, Schnitzer Steel Canada Ltd., as the Canadian borrower, Bank of America, N.A., as administrative agent, and other lenders party thereto, which amended and restated our previously existing credit agreement (the "Prior Credit Agreement"). The Amended Credit Agreement provides for $ 800 million and C$ 15 million in senior secured revolving credit facilities maturing in August 2027 . The $ 800 million credit facility includes a $ 50 million sublimit for letters of credit, a $ 25 million sublimit for swing line loans, and a $ 50 million sublimit for multicurrency borrowings. The Prior Credit Agreement provided for $ 700 million and C$ 15 million in senior secured credit facilities maturing in August 2023 . The Company incurred $ 2 million in debt issuance costs in connection with the Amended Credit Agreement, which are amortized to interest expense over the five-year term of the arrangement. Interest rates on outstanding indebtedness under the Amended Credit Agreement are based, at our option, on either the Secured Overnight Financing Rate (“SOFR”) (or the Canadian Dollar Offered Rate, "CDOR" for C$ loans), plus a spread of between 1.25 % and 2.00 %, with the amount of the spread based on a pricing grid tied to our ratio of consolidated net funded debt to EBITDA (as defined by the Amended Credit Agreement), or the greater of (a) the prime rate, (b) the federal funds rate plus 0.50 % or (c) the daily rate equal to Term SOFR plus 1.00 %, in each case, plus a spread of between 0.25 % and 1.00 % based on a pricing grid tied to our consolidated net funded debt to EBITDA ratio. In addition, commitment fees are payable on the unused portion of the credit facilities at rates between 0.175 % and 0.30 % based on a pricing grid tied to our ratio of consolidated net funded debt to EBITDA. Interest rates on outstanding indebtedness under the Prior Credit Agreement were based, at our option, on either the London Interbank Offered Rate (“LIBOR”) (or the Canadian equivalent for C$ loans), plus a spread of between 1.25 % and 3.50 %, with the amount of the spread based on a pricing grid tied to our ratio of consolidated funded debt to EBITDA (as defined by the credit agreement), or the greater of (a) the prime rate, (b) the federal funds rate plus 0.50 % or (c) the daily rate equal to one-month LIBOR plus 1.75 %, in each case, plus a spread of between 0.00 % and 2.50 % based on a pricing grid tied to our consolidated funded debt to EBITDA ratio. In addition, commitment fees were payable on the unused portion of the credit facilities at rates between 0.20 % and 0.50 % based on a pricing grid tied to our ratio of consolidated funded debt to EBITDA. As of August 31, 2022 and 2021, borrowings outstanding under the credit facilities were $ 230 million and $ 60 million , respectively. The weighted average interest rate on amounts outstanding under the credit facilities was 3.65 % and 1.75 % as of August 31, 2022 and 2021, respectively. The credit agreement contains various representations and warranties, events of default, and financial and other customary covenants which limit (subject to certain exceptions) the Company’s ability to, among other things, incur or suffer to exist certain liens, make investments, incur or guaranty additional indebtedness, enter into consolidations, mergers, acquisitions, and sales of assets, make distributions and other restricted payments, change the nature of the business, engage in transactions with affiliates, and enter into restrictive agreements, including agreements that restrict the ability of the subsidiaries to make distributions. As of August 31, 2022, the financial covenants under the credit agreement included (a) a consolidated fixed charge coverage ratio, defined as the four-quarter rolling sum of consolidated EBITDA less defined maintenance capital expenditures and certain environmental expenditures divided by consolidated fixed charges and (b) a consolidated leverage ratio, defined as consolidated funded indebtedness divided by the sum of consolidated net worth and consolidated funded indebtedness. The Company’s obligations under the credit agreement are guaranteed by substantially all of its subsidiaries. The credit facilities and the related guarantees are secured by senior first priority liens on certain of the Company’s and its subsidiaries’ assets, including equipment, inventory, and accounts receivable. Other debt obligations, which totaled $ 13 million and $ 8 million as of August 31, 2022 and 2021 , respectively, primarily relate to equipment purchases, the contract consideration for which includes an obligation to make future monthly payments to the vendor in the form of licensing fees. For accounting purposes, such obligations are treated as a partial financing of the purchase price by the equipment vendor. Monthly payments commence when the equipment is placed in service and achieves specified minimum operating metrics, with payments continuing for a period of four years thereafter. In fiscal 2022, the Company recorded $ 7 million of additional debt obligations with these terms generally. Principal payments on the Company’s bank revolving credit facilities and other debt obligations during the next five fiscal years and thereafter are as follows (in thousands): Year Ending August 31, Credit Facilities Other Debt Obligations 2023 $ — $ 4,306 2024 — 2,425 2025 — 2,466 2026 — 2,735 2027 230,000 736 Thereafter — — Total $ 230,000 $ 12,668 See Note 5 - Leases for additional disclosure on finance lease obligations, including payments during the next five fiscal years and thereafter. The Company maintains stand-by letters of credit to provide for certain obligations including workers’ compensation and performance bonds. The Company had $ 8 million outstanding under these arrangements as of both August 31, 2022 and 2021 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 - Commitments and Contingencies Contingencies - Environmental Changes in the Company’s environmental liabilities for the years ended August 31, 2022 and 2021 were as follows (in thousands): Balance as of Liabilities Payments and Ending Balance Liabilities Payments and Ending Balance Current Noncurrent Liability $ 53,464 $ 28,761 $ ( 5,097 ) $ 77,128 $ 12,839 $ ( 21,467 ) $ 68,500 $ 13,031 $ 55,469 As of August 31, 2022 and 2021, the Company had environmental liabilities of $ 69 million and $ 77 million , respectively, for the potential remediation of locations where it has conducted business or has environmental liabilities from historical or recent activities. The liabilities relate to the investigation and potential future remediation of contaminated sediments and riverbanks, soil contamination, groundwater contamination, storm water runoff issues, and other natural resource damages. Except for Portland Harbor and certain liabilities discussed under “Other Legacy Environmental Loss Contingencies” below, such liabilities were not individually material at any site. Portland Harbor In December 2000, the Company was notified by the United States Environmental Protection Agency (“EPA”) under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) that it is one of the potentially responsible parties (“PRPs”) that own or operate or formerly owned or operated sites which are part of or adjacent to the Portland Harbor Superfund site (“Portland Harbor”). The precise nature and extent of cleanup of any specific areas within Portland Harbor, the parties to be involved, the timing of any specific remedial action and the allocation of the costs for any cleanup among responsible parties have not yet been determined. The process of site investigation, remedy selection, identification of additional PRPs, and allocation of costs has been underway for a number of years, but significant uncertainties remain. It is unclear to what extent the Company will be liable for environmental costs or third-party contribution or damage claims with respect to Portland Harbor. From 2000 to 2017, the EPA oversaw a remedial investigation/feasibility study (“RI/FS”) at Portland Harbor. The Company was not among the parties that performed the RI/FS, but it contributed to the costs through an interim settlement with the performing parties. The performing parties have indicated that they incurred more than $ 155 million in that effort. In January 2017, the EPA issued a Record of Decision (“ROD”) that identified the selected remedy for Portland Harbor. The EPA has estimated the total cost of the selected remedy at $ 1.7 billion with a net present value cost of $ 1.05 billion (at a 7 % discount rate) and an estimated construction period of 13 years following completion of the remedial designs. In the ROD, the EPA stated that the cost estimate is an order-of-magnitude engineering estimate that is expected to be within + 50 % to - 30 % of the actual project cost and that changes in the cost elements are likely to occur as a result of new information and data collected during the engineering design. The Company has identified a number of concerns regarding the remedy described in the ROD, which is based on data that is more than 15 years old, and the EPA’s estimates for the costs and time required to implement the selected remedy. Moreover, the ROD provided only Portland Harbor site-wide cost estimates and did not provide sufficient detail to estimate costs for specific sediment management areas within Portland Harbor. In addition, the ROD did not determine or allocate the responsibility for remediation costs among the PRPs. In the ROD, the EPA acknowledged that much of the data was more than a decade old at that time and would need to be updated with a new round of “baseline” sampling to be conducted prior to the remedial design phase. The remedial design phase is an engineering phase during which additional technical information and data are collected, identified, and incorporated into technical drawings and specifications developed for the subsequent remedial action. Following issuance of the ROD, the EPA proposed that the PRPs, or a subgroup of PRPs, perform the additional investigative work in advance of remedial design. In December 2017, the Company and three other PRPs entered into an Administrative Settlement Agreement and Order on Consent with the EPA to perform such pre-remedial design investigation and baseline sampling over a two-year period. The report analyzing the results concluded that Portland Harbor conditions have improved substantially since the data forming the basis of the ROD was collected. The EPA found with a few limited corrections that the data is of suitable quality and stated that such data will be used, in addition to existing and forthcoming design-level data, to inform implementation of the ROD. However, the EPA did not agree that the data or the analysis warranted a change to the remedy at this time and reaffirmed its commitment to proceed with remedial design. The Company and other PRPs disagree with the EPA’s position on use of the more recent data and will continue to pursue limited, but critical, changes to the selected remedy for Portland Harbor during the remedial design phase. The EPA encouraged PRPs to step forward (individually or in groups) to enter into consent agreements to perform remedial design in various project areas covering Portland Harbor. While certain PRPs executed consent agreements for remedial design work, because of the EPA’s refusal to date to modify the remedy to reflect the most current data on Portland Harbor conditions and because of concerns with the terms of the consent agreement, the Company elected not to enter into a consent agreement. In April 2020, the EPA issued a unilateral administrative order (“UAO”) to the Company and MMGL, LLC (“MMGL”), an unaffiliated company, for the remedial design work in a portion of Portland Harbor designated as the River Mile 3.5 East Project Area. As required by the UAO, the Company notified the EPA of its intent to comply while reserving all of its sufficient cause defenses. Failure to comply with a UAO, without sufficient cause, could subject the Company to significant penalties or treble damages. Pursuant to the optimized remedial design timeline set forth in the UAO, the EPA’s expected schedule for completion of the remedial design work was four years . At the time it issued the UAO in April 2020, the EPA estimated the cost of the work at approximately $ 4 million. The Company has agreed with the other respondent to the UAO, MMGL, that the Company will lead the performance and be responsible for a portion of the costs of the work for remedial design under the UAO and also entered into an agreement with another PRP pursuant to which such other PRP has agreed to fund a portion of the costs of such work. These agreements are not an allocation of liability or claims associated with Portland Harbor as between the respondents or with respect to any third party. At the time the EPA issued the UAO in April 2020, the Company estimated that its share of the costs of performing such work under the UAO would be approximately $ 3 million, which it recorded to environmental liabilities and selling, general, and administrative (“SG&A”) expense in the consolidated financial statements in the third quarter of fiscal 2020. In the fourth quarter of fiscal 2022, based primarily on our assessment of progress with respect to tasks and milestones specified in the UAO, as well as remaining work and associated costs, the Company increased the estimate of its share of the costs of performing such work under the UAO by approximately $ 2 million, which it recorded to environmental liabilities and SG&A expense. The Company has insurance policies pursuant to which the Company is being reimbursed for the costs it has incurred for remedial design. In the second quarter of fiscal 2021, the Company recorded an insurance receivable and a related insurance recovery to SG&A expense for approximately $ 3 million. In the fourth quarter of fiscal 2022, the Company increased the amount of this insurance receivable by approximately $ 2 million and recognized a related insurance recovery in the same amount within SG&A expense. See “Other Assets” in Note 2 – Summary of Significant Accounting Policies for further discussion of receivables from insurers. The Company also expects to pursue in the future allocation or contribution from other PRPs for a portion of such remedial design costs. In February 2021, the EPA announced that 100 percent of Portland Harbor’s areas requiring active cleanup are in the remedial design phase of the process. Except for certain early action projects in which the Company is not involved, remediation activities at Portland Harbor are not expected to commence for a number of years. Moreover, those activities are expected to be sequenced, and the order and timing of such sequencing has not been determined. In addition, as noted above, the ROD does not determine the allocation of costs among PRPs. The Company has joined with approximately 100 other PRPs, including the RI/FS performing parties, in a voluntary process to establish an allocation of costs at Portland Harbor, including the costs incurred in the RI/FS, ongoing remedial design costs, and future remedial action costs. The Company expects the next major stage of the allocation process to proceed in parallel with the remedial design process. In addition to the remedial action process overseen by the EPA, the Portland Harbor Natural Resource Trustee Council (“Trustee Council”) is assessing natural resource damages at Portland Harbor. In 2008, the Trustee Council invited the Company and other PRPs to participate in funding and implementing the Natural Resource Injury Assessment for Portland Harbor. The Company and other participating PRPs ultimately agreed to fund the first two phases of the three-phase assessment, which included the development of the Natural Resource Damage Assessment Plan (“AP”) and implementation of the AP to develop information sufficient to facilitate early settlements between the Trustee Council and Phase 2 participants and the identification of restoration projects to be funded by the settlements. In late May 2018, the Trustee Council published notice of its intent to proceed with Phase 3, which will involve the full implementation of the AP and the final injury and damage determination. The Company is proceeding with the process established by the Trustee Council regarding early settlements under Phase 2. The Company has established an environmental reserve of approximately $ 2.3 million for this alleged natural resource damages liability as it continues to work with the Trustee Council to finalize an early settlement. The Company has insurance policies that it believes will provide reimbursement for costs related to this matter. As of August 31, 2022 and 2021, the Company had an insurance receivable in the same amount as the environmental reserve. See “Other Assets” in Note 2 – Summary of Significant Accounting Policies for further discussion of receivables from insurers. On January 30, 2017, one of the Trustees, the Confederated Tribes and Bands of the Yakama Nation, which withdrew from the council in 2009, filed a suit against approximately 30 parties, including the Company, seeking reimbursement of certain past and future response costs in connection with remedial action at Portland Harbor and recovery of assessment costs related to natural resources damages from releases at and from Portland Harbor to the Multnomah Channel and the Lower Columbia River. The parties filed various motions to dismiss or stay this suit, and in August 2019, the court issued an order denying the motions to dismiss and staying the action. The Company intends to defend against the claims in this suit and does not have sufficient information to determine the likelihood of a loss in this matter or to estimate the amount of damages being sought or the amount of such damages that could be allocated to the Company. The Company’s environmental liabilities as of both August 31, 2022 and 2021 included $ 6 million relating to the Portland Harbor matters described above. Because the final remedial actions have not yet been designed and there has not been a determination of the allocation among the PRPs of costs of the investigations or remedial action costs, the Company believes it is not possible to reasonably estimate the amount or range of costs which it is likely to or which it is reasonably possible that it will incur in connection with Portland Harbor, although such costs could be material to the Company’s financial position, results of operations, cash flows, and liquidity. Among the facts being evaluated are detailed information on the history of ownership of and the nature of the uses of and activities and operations performed on each property within Portland Harbor, which are factors that will play a substantial role in determining the allocation of investigation and remedy costs among the PRPs. The Company has insurance policies that it believes will provide reimbursement for costs it incurs for defense, remedial design, remedial action, and mitigation for or settlement of natural resource damages claims in connection with Portland Harbor. Most of these policies jointly insure the Company and MMGL, as the successor to a former subsidiary of the Company. The Company and MMGL have negotiated the settlement with certain insurers of claims against them related to Portland Harbor, continue to seek settlements with other insurers, and formed a Qualified Settlement Fund (“QSF”) which became operative in fiscal 2020 to hold such settlement amounts until funds are needed to pay or reimburse costs incurred by the Company and MMGL in connection with Portland Harbor. These insurance policies and the funds in the QSF may not cover all of the costs which the Company may incur. The QSF is an unconsolidated variable interest entity (“VIE”) with no primary beneficiary. Two parties unrelated to each other, one appointed by the Company and one appointed by MMGL, share equally the power to direct the activities of the VIE that most significantly impact its economic performance. The Company’s appointee to co-manage the VIE is an executive officer of the Company. Neither MMGL nor its appointee to co-manage the VIE is a related party of the Company for the purpose of the primary beneficiary assessment or otherwise. The Oregon Department of Environmental Quality is separately providing oversight of investigations and source control activities by the Company at various sites adjacent to Portland Harbor that are focused on controlling any current “uplands” releases of contaminants into the Willamette River. The Company has accrued liabilities for source control and related work at two sites, reflecting estimated costs of primarily investigation and design, which costs have not been material in the aggregate to date. No liabilities have been established in connection with investigations for any other sites because the extent of contamination, required source control work, and the Company’s responsibility for the contamination and source control work, in each case if any, have not yet been determined. In addition, pursuant to its insurance policies, the Company is being reimbursed for the costs it incurs for required source control evaluation and remediation work. As of both August 31, 2022 and 2021, the Company had an insurance receivable in the same amount as the environmental reserve for such source control work. Other Legacy Environmental Loss Contingencies The Company’s environmental loss contingencies as of August 31, 2022 and 2021, other than Portland Harbor, include actual or possible investigation and remediation costs from historical contamination at sites currently or formerly owned or formerly operated by the Company or at other sites where the Company may have responsibility for such costs due to past disposal or other activities (“legacy environmental loss contingencies”). These legacy environmental loss contingencies relate to the potential remediation of waterways and soil and groundwater contamination and may also involve natural resource damages, governmental fines and penalties, and claims by third parties for personal injury and property damage. The Company has been notified that it is or may be a potentially responsible party at certain of these sites, and investigation and remediation activities are ongoing or may be required in the future. The Company recognizes a liability for such matters when the loss is probable and can be reasonably estimated. When investigation, allocation, and remediation activities are ongoing or where the Company has not yet been identified as having responsibility or the contamination has not yet been identified, it is reasonably possible that the Company may need to recognize additional liabilities in connection with such sites but the Company cannot currently reasonably estimate the possible loss or range of loss absent additional information or developments. Such additional liabilities, individually or in the aggregate, may have a material adverse effect on the Company’s results of operations, financial condition, or cash flows. In fiscal 2018, the Company accrued $ 4 million for the estimated costs related to remediation of shredder residue disposed of in or around the 1970s at third-party sites located near each other. Investigation activities have been conducted under oversight of the applicable state regulatory agency. As of August 31, 2022 and 2021, the Company had $ 4 million accrued for this matter. It is reasonably possible that the Company may recognize additional liabilities in connection with this matter at the time such losses are probable and can be reasonably estimated. The Company previously estimated a range of reasonably possible losses related to this matter in excess of current accruals at between zero and $ 28 million based on a range of remedial alternatives and subject to development and approval by regulators of specific remedy implementation plans. However, subsequent to the development of those remedial alternatives, the Company performed additional investigative activities under new state requirements that are likely to impact the required remedial actions and associated cost estimates , but the scope of such impacts and the amount or the range of the additional associated costs are not reasonably estimable at this time and are subject to further investigation, analysis, and discussion by the Company and regulators. The Company is investigating whether a portion or all of the current and future losses related to this matter, if incurred, are covered by existing insurance coverage or may be offset by contributions from other responsible parties. In addition, the Company’s loss contingencies as of August 31, 2022 and 2021 included $ 8 million and $ 19 million, respectively, for the estimated costs related to environmental matters in connection with a closed facility owned and previously operated by an indirect, wholly-owned subsidiary, including monitoring and remediation of soil and groundwater conditions and funding for wellhead treatment facilities. In fiscal 2022, the Company recognized $ 6 million for certain soil remediation activities based on additional information related to estimated costs to complete. Investigation and remediation activities have been conducted under the oversight of the applicable state regulatory agency and are on-going, and the Company's subsidiary has also been working with state and local officials with respect to the protection of public and private water supplies. As part of its activities relating to the protection of public water supplies, the Company’s subsidiary agreed to reimburse the municipality for certain studies and plans and to provide funding for the construction and operation by the municipality of wellhead treatment facilities, which agreement resulted in payment by the Company to the municipality of $ 11 million in the second quarter of fiscal 2022. It is reasonably possible that the Company may recognize additional liabilities in connection with this matter at the time such additional losses are probable and can be reasonably estimated. However, the Company cannot reasonably estimate at this time the possible additional loss or range of possible additional losses associated with this matter pending the on-going implementation of the approved remediation plan for soil and groundwater conditions and completion and operation of the wellhead treatment facilities. In addition, the Company’s loss contingencies as of August 31, 2022 and 2021 included $ 7 million and $ 8 million, respectively, for the estimated costs related to remediation of a site a portion of which was previously leased to and operated by an indirect, wholly-owned subsidiary. In connection with settlement of a lawsuit relating to allocation of the remediation costs, the Company’s subsidiary agreed to perform the remedial action related to metals contamination on the site estimated to cost approximately $ 7.9 million, and another potentially liable party agreed to perform the remedial action related to creosote contamination at the site. As part of the settlement, other potentially liable parties agreed to make payments totaling approximately $ 7.6 million to fund the remediation of the metals contamination at the site in exchange for a release and indemnity. This amount was fully funded into a client trust account for the Company’s subsidiary in December 2020. See “Other Assets” in Note 2 - Summary of Significant Accounting Policies for further discussion of this client trust account. It is reasonably possible that the Company may recognize additional liabilities in connection with this matter at the time such additional losses are probable and can be reasonably estimated. However, the Company cannot reasonably estimate at this time the possible additional loss or range of possible additional losses associated with this matter pending completion, approval and implementation of the remediation action plan. Summary - Environmental Contingencies With respect to environmental contingencies other than the Portland Harbor Superfund site and the Other Legacy Environmental Loss Contingencies, which are discussed separately above, management currently believes that adequate provision has been made for the potential impact of its environmental contingencies. Historically, the amounts the Company has ultimately paid for such remediation activities have not been material in any given period, but there can be no assurance that such amounts paid will not be material in the future. Contingencies - Other In addition to legal proceedings relating to the contingencies described above, the Company is a party to various legal proceedings arising in the normal course of business. The Company recognizes a liability for such matters when the loss is probable and can be reasonably estimated. The Company does not anticipate that the liabilities arising from such legal proceedings in the normal course of business, after taking into consideration expected insurance recoveries, will have a material adverse effect on its results of operations, financial condition, or cash flows. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Aug. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 11 - Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, are as follows as of August 31, 2022, 2021, and 2020 (in thousands): Foreign Currency Pension Obligations, Total Balance as of September 1, 2019 $ ( 35,689 ) $ ( 3,074 ) $ ( 38,763 ) Other comprehensive income before reclassifications 1,505 190 1,695 Income tax expense — ( 42 ) ( 42 ) Other comprehensive income before reclassifications, 1,505 148 1,653 Amounts reclassified from accumulated other comprehensive loss — 309 309 Income tax benefit — ( 70 ) ( 70 ) Amounts reclassified from accumulated other comprehensive loss, — 239 239 Net periodic other comprehensive income 1,505 387 1,892 Balance as of August 31, 2020 ( 34,184 ) ( 2,687 ) ( 36,871 ) Other comprehensive income (loss) before reclassifications 2,575 ( 530 ) 2,045 Income tax benefit — 120 120 Other comprehensive income (loss) before reclassifications, net 2,575 ( 410 ) 2,165 Amounts reclassified from accumulated other comprehensive loss — 196 196 Income tax benefit — ( 44 ) ( 44 ) Amounts reclassified from accumulated other comprehensive loss, — 152 152 Net periodic other comprehensive income (loss) 2,575 ( 258 ) 2,317 Balance as of August 31, 2021 ( 31,609 ) ( 2,945 ) ( 34,554 ) Other comprehensive (loss) income before reclassifications ( 3,070 ) 355 ( 2,715 ) Income tax expense — ( 80 ) ( 80 ) Other comprehensive (loss) income before reclassifications, net ( 3,070 ) 275 ( 2,795 ) Amounts reclassified from accumulated other comprehensive loss — 336 336 Income tax benefit — ( 76 ) ( 76 ) Amounts reclassified from accumulated other comprehensive loss, — 260 260 Net periodic other comprehensive (loss) income ( 3,070 ) 535 ( 2,535 ) Balance as of August 31, 2022 $ ( 34,679 ) $ ( 2,410 ) $ ( 37,089 ) Reclassifications from accumulated other comprehensive loss to earnings, both individually and in the aggregate, were not material to the impacted captions in the Consolidated Statements of Operations in all periods presented. |
Revenue
Revenue | 12 Months Ended |
Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 12 - Revenue Disaggregation of Revenues The table below illustrates the Company’s revenues disaggregated by major product and sales destination (in thousands): Year Ended August 31, 2022 2021 2020 Major product information: Ferrous revenues $ 1,914,255 $ 1,557,891 $ 862,490 Nonferrous revenues 892,444 684,862 390,298 Steel revenues (1) 531,731 379,203 336,980 Retail and other revenues 147,385 136,595 122,575 Total revenues $ 3,485,815 $ 2,758,551 $ 1,712,343 Revenues based on sales destination: Foreign $ 1,925,235 $ 1,612,744 $ 910,785 Domestic 1,560,580 1,145,807 801,558 Total revenues $ 3,485,815 $ 2,758,551 $ 1,712,343 (1) Steel revenues include predominantly sales of finished steel products, in addition to sales of semi-finished goods (billets) and steel manufacturing scrap. In fiscal 2022, 2021, and 2020 , the Company had no external customer that accounted for more than 10 % of the Company’s consolidated revenues. Sales to customers located in foreign countries are a significant part of the Company’s business. The schedule below identifies those foreign countries to which the Company’s sales exceeded 10% of consolidated revenues in any of the last three years ended August 31 (in thousands): 2022 % of 2021 % of 2020 % of Bangladesh $ 446,385 13 % $ 375,668 14 % $ 197,391 12 % Turkey N/A N/A N/A N/A $ 222,141 13 % N/A = Sales were less than the 10 % threshold. Receivables from Contracts with Customers The revenue accounting standard defines a receivable as an entity’s right to consideration that is unconditional, meaning that only the passage of time is required before payment is due. As of August 31, 2022 and 2021, receivables from contracts with customers, net of an allowance for credit losses, totaled $ 230 million and $ 210 million, respectively, representing 97 % and 98 %, respectively, of total accounts receivable reported in the Consolidated Balance Sheets as of each reporting date. Contract Liabilities Contract consideration received from a customer prior to revenue recognition is recorded as a contract liability and is recognized as revenue when the Company satisfies the related performance obligation under the terms of the contract. The Company’s contract liabilities, which consist almost entirely of customer deposits for recycled metal and finished steel sales contracts reported within accounts payable in the Consolidated Balance Sheets, totaled $ 8 million as of both August 31, 2022 and 2021. Unsatisfied performance obligations reflected in these contract liabilities relate to contracts with original expected durations of one year or less and, therefore, are not disclosed. During the year ended August 31, 2022, the Company reclassified $ 7 million in contract liabilities as of August 31, 2021 to revenues as a result of satisfying performance obligations during the year. During the year ended August 31, 2021, the Company reclassified $ 7 million in contract liabilities as of August 31, 2020 to revenues as a result of satisfying performance obligations during the year. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Aug. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Note 13 - Employee Benefits The Company and certain of its subsidiaries have or contribute to qualified and nonqualified retirement plans. These plans include a defined benefit pension plan, a supplemental executive retirement benefit plan (“SERBP”), multiemployer pension plans, defined contribution plans, and a deferred compensation plan. Defined Benefit Pension Plan and Supplemental Executive Retirement Benefit Plan The Company maintains a qualified defined benefit pension plan for certain nonunion employees. Effective June 30, 2006, the Company froze this plan and ceased accruing further benefits for employee service. The Company reflects the funded status of the defined benefit pension plan as a net asset or liability in its Consolidated Balance Sheets. Changes in its funded status are recognized in comprehensive income. The Company amortizes as a component of net periodic pension benefit cost a portion of the net gain or loss reported within accumulated other comprehensive loss if the beginning-of-year net gain or loss exceeds 5 % of the greater of the benefit obligation or the market value of plan assets. Net periodic pension benefit cost was not material for each of the fiscal years presented in this report. The fair value of plan assets was $ 16 million and $ 21 million as of August 31, 2022 and 2021, respectively, and the projected benefit obligation was $ 12 million and $ 17 million as of August 31, 2022 and 2021, respectively. The plan was fully funded with the plan assets exceeding the projected benefit obligation by $ 4 million as of each of August 31, 2022 and 2021. Under the fair value hierarchy, plan assets comprised Level 1 and Level 2 investments as of August 31, 2022 and 2021 . Level 1 investments are valued based on quoted market prices of identical securities in the principal market. Level 2 investments are corporate bonds valued at the yields currently available on comparable securities of issuers with similar credit ratings. No significant contributions are expected to be made to the defined benefit pension plan in the future; however, changes in the discount rate or actual investment returns that are lower than the long-term expected return on plan assets could result in the need for the Company to make additional contributions. The assumed discount rate used to calculate the projected benefit obligation was 4.40 % and 2.46 % as of August 31, 2022 and 2021, respectively. The Company estimates future annual benefit payments to be between $ 1 million and $ 3 million per year. The Company also has a nonqualified SERBP for certain executives. A restricted trust fund has been established with assets invested in life insurance policies that can be used for plan benefits, although the fund is subject to claims of the Company’s general creditors. The trust fund is included in other assets, the current portion of the pension liability is included in other accrued liabilities, and the noncurrent portion of the pension liability is included in other long-term liabilities in the Company’s Consolidated Balance Sheets. The trust fund was valued at $ 4 million as of each August 31, 2022, and 2021. The trust fund assets’ gains and losses are included in other expense, net in the Company’s Consolidated Statements of Operations. The benefit obligation was $ 4 million as of August 31, 2022, and $ 5 million as of August 31,2021. Net periodic pension benefit cost under the SERBP was not material for each of the fiscal years presented in this report. Because the defined benefit pension plan and the SERBP are not material to the Consolidated Financial Statements, other disclosures required by U.S. GAAP have been omitted. Multiemployer Pension Plans The Company contributes to 14 multiemployer pension plans in accordance with its collective bargaining agreements. Multiemployer pension plans are defined benefit plans sponsored by multiple employers in accordance with one or more collective bargaining agreements. The plans are jointly managed by trustees that include representatives from both management and labor unions. Contributions to the plans are made based upon a fixed rate per hour worked and are agreed to by contributing employers and the unions in collective bargaining. Benefit levels are set by a joint board of trustees based on the advice of an independent actuary regarding the level of benefits that agreed-upon contributions can be expected to support. To the extent that the pension obligation of other participating employers is unfunded, the Company may be required to make additional contributions in the future to fund these obligations. One of the multiemployer plans that the Company contributes to is the Steelworkers Western Independent Shops Pension Plan (“WISPP,” EIN 90-0169564, Plan No. 001) benefiting the union employees of the Company’s steel manufacturing operations, which are covered by a collective bargaining agreement that will expire on March 31, 2026 . As of October 1, 2021, the WISPP was certified by the plan’s actuaries as being in the Green Zone, as defined by the Pension Protection Act of 2006. The Company contributed $ 4 million to the WISPP for each of the years ended August 31, 2022 and 2021, and $ 3 million for the year ended August 31, 2020. These contributions represented more than 5 % of total contributions to the WISPP for each year. In 2004, the Internal Revenue Service (“IRS”) approved a seven-year extension of the period over which the WISPP may amortize unfunded liabilities, conditioned upon maintenance of certain minimum funding levels. In 2014, the WISPP obtained relief from the specified funding requirements from the IRS, which requires that the WISPP meet a minimum funded percentage on each valuation date and achieve a funded percentage of 100 % as of October 1, 2029. Based on the most recent actuarial valuation for the WISPP, the funded percentage using the valuation method prescribed by the IRS satisfied the minimum funded percentage requirement. Company contributions to all of the multiemployer plans were $ 7 million for the year ended August 31, 2022 , and $ 6 million for each of the years ended August 31, 2021, and 2020. Defined Contribution Plans The Company has several defined contribution plans covering certain employees. Company contributions to the defined contribution plans totaled $ 5 million for the year ended August 31, 2022 , and $ 4 million for each of the years ended August 31, 2021, and 2020. Deferred Compensation Plan In fiscal 2021, the Company established a non-qualified deferred compensation plan (the “DCP”) which permits eligible employees to elect to defer receipt of compensation including salary, bonuses, and certain equity awards made under the Company’s long-term incentive plan. The DCP also allows the Company to make discretionary contributions to participant accounts that may be subject to one or more vesting schedules. Participant contributions, excluding equity awards subject to vesting conditions, are fully vested at all times. The deferred compensation liability as of August 31, 2022 and 2021 was $ 1 million and less than $ 1 million, respectively, consisted entirely of deferred salary, and was classified within other long-term liabilities in the Consolidated Balance Sheets. The Company maintains a rabbi trust to fund obligations under the DCP. The carrying value of assets held in the rabbi trust, which comprise company-owned life insurance policies, substantially equaled the deferred compensation liability as of both August 31, 2022 and 2021. The rabbi trust asset is classified within other assets in the Consolidated Balance Sheets. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Aug. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Note 14 - Share-Based Compensation The Company’s 1993 Stock Incentive Plan, as amended (the “SIP”), was established to provide for the grant of stock-based compensation awards to its employees, consultants, and directors. The SIP authorizes the grant of restricted shares, restricted stock units, performance-based awards including performance share awards, stock options, and stock appreciation rights, and other stock-based awards. The SIP is administered by the Compensation Committee of the Company’s Board of Directors (“Compensation Committee”). There are 12.2 million shares of Class A common stock reserved for issuance under the SIP, of which 2.2 million were available for future grants as of August 31, 2022. Share-based compensation expense recognized in cost of goods sold or selling, general, and administrative expense, as applicable, was $ 19 million , $ 18 million , and $ 10 million for the years ended August 31, 2022, 2021, and 2020 , respectively. The Company capitalized less than $ 1 million of share-based compensation cost to the cost of qualifying long-lived assets in each of fiscal 2022, 2021, and 2020. Restricted Stock Units (“RSUs”) During the years ended August 31, 2022, 2021, and 2020, the Compensation Committee granted 160,312 , 317,760 , and 470,917 RSUs, respectively, to the Company’s key employees under the SIP. RSUs generally vest 20 % per year over five years commencing October 31 of the year after grant. Each RSU entitles the recipient to receive one share of Class A common stock upon vesting. The estimated fair value of an RSU is based on the market closing price of the underlying Class A common stock on the date of grant. The weighted average grant date fair value of RSUs granted was $ 52.32 , $ 22.26 , and $ 14.88 per unit for the years ended August 31, 2022, 2021, and 2020, respectively. The total estimated fair value of RSUs granted was $ 8 million for the year ended August 31, 2022 , and $ 7 million for each of the years ended August 31, 2021 and 2020. For RSUs granted in each of the years ended August 31, 2022, 2021 , and 2020, the compensation cost is recognized over the requisite service period of the awards, net of forfeitures, which for participants who were retirement eligible as of the grant date or who will become retirement eligible during the five-year term of the award is the longer of two years or the period ending on the date retirement eligibility is achieved. RSU compensation cost was $ 8 million, $ 7 million, and $ 4 million for the years ended August 31, 2022, 2021, and 2020, respectively. A summary of the Company’s RSU activity for the year ended August 31, 2022 is as follows: Number of Weighted Average Outstanding as of August 31, 2021 956 $ 20.62 Granted 160 $ 52.32 Vested ( 296 ) $ 21.33 Forfeited ( 7 ) $ 22.38 Outstanding as of August 31, 2022 813 $ 26.59 The total fair value of RSUs that vested, based on the market closing price of the underlying Class A common stock on the vesting date, was $ 15 million, $ 10 million, and $ 6 million for the years ended August 31, 2022, 2021, and 2020, respectively. As of August 31, 2022 , total unrecognized compensation costs related to unvested RSUs amounted to $ 10 million, which is expected to be recognized over a weighted average period of two years . Performance Share Awards The SIP authorizes performance-based awards to certain employees subject to certain conditions and restrictions. Vesting is subject to both the continued employment of the participant with the Company and the achievement of certain performance goals established by the Compensation Committee. A participant generally must be employed by the Company on October 31 following the end of the performance period to receive an award payout. However, adjusted awards are paid if employment terminates earlier on account of a qualifying employment termination event such as death, disability, retirement, termination without cause after the first year of the performance period, or a sale of the Company. In recent years, the performance share awards have comprised two separate and distinct awards with different vesting conditions. Awards vest if the threshold level under the specified metric is met at the end of the approximately three-year performance period. For awards granted in fiscal 2022, the performance metrics are the Company’s recycled metal volume growth and its return on capital employed (“ROCE”). Award share payouts depend on the extent to which the performance goals have been achieved, which performance-based payout factors are adjusted by a total shareholder return (“TSR”) modifier based on the Company’s average TSR percentile rank relative to a designated peer group. The number of shares that a participant receives is equal to the number of performance shares granted multiplied by an initial payout factor based on recycled metal volume growth and ROCE, which ranges from a threshold of 50 % to a maximum of 200 %. The final payout factor is then determined by applying the TSR modifier to the initial payout factor within a certain range, with a maximum increase or decrease of 20 %. For awards granted in fiscal 2021 and 2020, the performance metrics are the Company’s TSR relative to a designated peer group and the Company’s ROCE. Award share payouts depend on the extent to which the performance goals have been achieved. The number of shares that a participant receives is equal to the award granted multiplied by a payout factor, which ranges from a threshold of 50 % to a maximum of 200 %. The TSR awards granted in fiscal 2021 and 2020 stipulate certain limitations to the payout in the event the payout reaches a defined ceiling level or the Company’s TSR is negative. The Company estimates the fair value of performance share awards with a TSR market condition using a Monte-Carlo simulation model utilizing several key assumptions, including the following for such awards granted during the years ended August 31: 2022 2021 2020 Expected share price volatility (SSI) 51.6 % 48.5 % 38.9 % Expected share price volatility (Peer group) 58.5 % 54.9 % 44.5 % Expected correlation to peer group companies 46.0 % 44.5 % 34.3 % Risk-free rate of return 0.61 % 0.23 % 1.58 % The fair value of the ROCE awards granted in fiscal 2021 and 2020, which awards do not have a TSR market condition, is based on the market closing price of the underlying Class A common stock on the grant date. All the performance share awards granted in fiscal 2022 have a non-market performance condition (either recycled metal volume growth or ROCE) in addition to a market condition (TSR modifier), and the ROCE awards granted in fiscal 2021 and 2020 have only a non-market performance condition. The Company accrues compensation cost for these performance share awards based on the probable outcome of achieving the specified performance conditions, net of estimated forfeitures, over the requisite service period (or to the date a qualifying employment termination event entitles the recipient to a prorated award, if before the end of the service period). The Company reassesses whether achievement of the performance conditions is probable at each reporting date. If it is probable that the actual performance results will exceed the stated target performance conditions, the Company accrues additional compensation cost for the additional performance shares to be awarded. If, upon reassessment, it is no longer probable that the actual performance results will exceed the stated target performance conditions, or that it is no longer probable that the target performance conditions will be achieved, the Company reverses any recognized compensation cost for shares no longer probable of being issued. If the performance conditions are not achieved at the end of the performance period, all related compensation cost previously recognized is reversed. The compensation cost for the TSR awards granted in fiscal 2021 and 2020 based on the grant-date fair value, net of estimated forfeitures, is recognized over the requisite service period (or to the date a qualifying employment termination event entitles the recipient to a prorated award, if before the end of the service period), regardless of whether the market condition has been or will be satisfied. During the years ended August 31, 2022, 2021, and 2020, the Compensation Committee granted a total of 153,080 ( 76,540 recycled metal volume growth with TSR modifier and 76,540 ROCE with TSR modifier), 316,649 ( 157,791 TSR and 158,858 ROCE), and 337,770 ( 165,834 TSR and 171,936 ROCE) performance share awards, respectively. The weighted average grant date fair value per share of performance share awards granted was $ 54.29 , $ 22.33 , and $ 21.32 for the years ended August 31, 2022, 2021, and 2020, respectively. A summary of the Company’s performance-based awards activity for the year ended August 31, 2022 is as follows: Number of Weighted Average Outstanding as of August 31, 2021 873 $ 23.62 Granted 153 $ 54.29 Performance achievement (1) 61 $ 29.17 Vested ( 263 ) $ 28.66 Forfeited ( 42 ) $ 27.44 Outstanding as of August 31, 2022 782 28.16 (1) Reflects the net number of awards achieved above target levels based on actual performance measured at the end of the performance period. The total fair value of performance share awards which vested, based on the market closing price of the Company’s Class A common stock on the vesting date, was $ 14 million, $ 7 million, and $ 10 million for the years ended August 31, 2022, 2021, and 2020, respectively. As of August 31, 2022 , total unrecognized compensation costs related to unvested performance share awards amounted to $ 10 million, which is expected to be recognized over a weighted average period of two years . Deferred Stock Units (“DSUs”) The Deferred Compensation Plan for Non-Employee Directors (“DSU Plan”) provides for the issuance of DSUs to non-employee directors to be granted under the DSU Plan. Each DSU gives the director the right to receive one share of Class A common stock at a future date. Immediately following the annual meeting of shareholders, each non-employee director receives DSUs which become fully vested on the day before the next annual meeting, subject to continued service on the Board. The compensation cost associated with the DSUs granted is recognized over the requisite service period of the awards. The Company issues Class A common stock to a director pursuant to vested DSUs in a lump sum in January of the first year after the director ceases to be a director of the Company, subject to the right of the director to elect an installment payment program under the DSU Plan. DSUs granted during the years ended August 31, 2022, 2021, and 2020 totaled 20,876 units, 28,042 units, and 41,592 units, respectively. The compensation cost associated with DSUs and the total value of shares vested during each of the years ended August 31, 2022, 2021, and 2020, as well as the unrecognized compensation cost as of August 31, 2022 , were not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15 - Income Taxes Income (loss) from continuing operations before income taxes was as follows for the years ended August 31 (in thousands): 2022 2021 2020 United States $ 204,150 $ 195,037 $ ( 5,649 ) Foreign 12,526 12,952 3,710 Total $ 216,676 $ 207,989 $ ( 1,939 ) Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands): 2022 2021 2020 Current: Federal $ 18,114 $ 27,244 $ ( 15,778 ) State 1,392 3,811 329 Foreign 39 ( 4 ) 519 Total current tax expense (benefit) 19,545 31,051 ( 14,930 ) Deferred: Federal 21,771 6,939 12,292 State 780 ( 547 ) 1,338 Foreign 2,501 492 1,466 Total deferred tax expense 25,052 6,884 15,096 Total income tax expense $ 44,597 $ 37,935 $ 166 A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows: 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of credits 1.6 1.4 ( 57.9 ) Foreign income taxed at different rates — ( 0.5 ) ( 11.6 ) Valuation allowance on deferred tax assets 0.4 ( 1.0 ) ( 24.5 ) Federal rate change — 0.4 71.9 Non-deductible officers’ compensation 2.5 1.2 ( 46.9 ) Other non-deductible expenses 0.3 0.4 ( 66.0 ) Noncontrolling interests ( 0.3 ) ( 0.5 ) 21.1 Research and development credits ( 0.9 ) ( 1.5 ) 99.3 Tax return to provision adjustment ( 2.4 ) — 89.2 Unrecognized tax benefits 1.2 0.9 ( 97.3 ) Interest income ( 0.1 ) ( 0.1 ) 9.0 Excess tax benefit from stock-based compensation ( 1.6 ) ( 0.2 ) 3.0 Foreign derived intangible income ( 1.0 ) ( 2.5 ) — Other ( 0.1 ) ( 0.8 ) ( 18.9 ) Effective tax rate 20.6 % 18.2 % ( 8.6 )% Effective Tax Rate The Company’s effective tax rate from continuing operations for fiscal 2022 was an expense on pre-tax income of 20.6 % , compared to 18.2 % for fiscal 2021 . The Company's effective tax rate from continuing operations for fiscal 2020 was an expense on pre-tax loss of 8.6 %. The Company’s effective tax rate from continuing operations for fiscal 2022 approximated the U.S. federal statutory rate of 21 %, reflecting primarily discrete tax benefits resulting from vesting of share-based awards during the fiscal year and other discrete items, as well as the benefit from the foreign derived intangible income ("FDII") deduction in fiscal 2022 and research and development credits, offset by the aggregate impact of state taxes and permanent differences from non-deductible expenses. The Company's effective tax rate from continuing operations for fiscal 2021 was lower than the U.S. federal statutory rate of 21 % primarily due to the benefit from the FDII deduction in fiscal 2021 and the impacts of research and development credits, release of the valuation allowance against Puerto Rico deferred tax assets, and other discrete items. The Company's effective tax rate from continuing operations for fiscal 2020 was lower than the U.S. federal statutory rate of 21 %, and reflective of income tax expense on a pre-tax loss from continuing operations, primarily due to the partially offsetting impacts of individually immaterial permanent differences from non-deductible expenses and research and development credits, the effects of unrecognized tax benefits, and the aggregate impact of state taxes. Inflation Reduction Act On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into law, which included the introduction of a new 15 % Corporate Alternative Minimum Tax ("CAMT"), as well as a 1 % excise tax on corporate share repurchases. The Company does not meet the threshold to be subject to the CAMT, and there were no other impacts of the IRA to the Company in fiscal 2022. Deferred Tax Assets and Liabilities Deferred tax assets and liabilities comprised the following as of August 31 (in thousands): 2022 2021 Deferred tax assets: Operating lease liabilities $ 17,901 $ 20,645 Amortizable goodwill and other intangibles 9,914 13,490 Employee benefit accruals 12,241 14,007 Net operating loss carryforwards 7,499 7,642 Environmental liabilities 9,742 10,508 Other contingencies 5,199 5,044 State credit carryforwards 7,212 7,216 Inventory valuation methods 2,749 2,129 Other 3,687 2,459 Valuation allowances ( 15,342 ) ( 14,522 ) Total deferred tax assets 60,802 68,618 Deferred tax liabilities: Accelerated depreciation and other basis differences 60,539 43,304 Operating lease right-of-use assets 17,353 19,895 Investment in operating partnerships 15,553 12,410 Prepaid expense acceleration and other 6,087 6,041 Total deferred tax liabilities 99,532 81,650 Net deferred tax liabilities $ ( 38,730 ) $ ( 13,032 ) As of August 31, 2022 , foreign operating loss carryforwards were $ 3.1 million, which expire if not used between 2033 and 2042 . State credit carryforwards will expire if not used between 2022 and 2036 . Valuation Allowances The Company assesses the realizability of its deferred tax assets on a quarterly basis through an analysis of potential sources of future taxable income, including prior year taxable income available to absorb a carryback of tax losses, reversals of existing taxable temporary differences, tax planning strategies, and forecasts of taxable income. The Company considers all negative and positive evidence, including the weight of the evidence, to determine if valuation allowances against deferred tax assets are required. In fiscal 2021, the Company released the valuation allowance against its Puerto Rican deferred tax assets resulting in a discrete tax benefit of $ 2 million. The release of this valuation allowance was the result of sufficient positive evidence at the time, including cumulative income in the Company’s Puerto Rico tax jurisdiction in recent years and projections of future taxable income based primarily on the Company's improved financial performance, that it is more-likely-than-not that the deferred tax assets will be realized. The Company continues to maintain valuation allowances against certain state and Canadian deferred tax assets. Canadian deferred tax assets against which the Company continues to maintain a valuation allowance relate to indefinite-lived assets. Accounting for Uncertainty in Income Taxes The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands): 2022 2021 2020 Unrecognized tax benefits, as of the beginning of the year $ 8,320 $ 7,456 $ 5,410 Additions (reductions) for tax positions of prior years 1,055 ( 574 ) 1,368 Additions for tax positions of the current year 974 1,486 852 Reductions for lapse of statutes ( 23 ) ( 48 ) ( 174 ) Unrecognized tax benefits, as of the end of the year $ 10,326 $ 8,320 $ 7,456 The Company does not anticipate any material changes to the reserve in the next 12 months. The recognized amount of tax-related penalties and interest was not material for each of the fiscal years presented in this report. The Company files federal and state income tax returns in the U.S. and foreign tax returns in Puerto Rico and Canada. For U.S. federal income tax returns, fiscal years 2014 to 2021 remain subject to examination under the statute of limitations. |
Restructuring Charges and Other
Restructuring Charges and Other Exit-Related Activities | 12 Months Ended |
Aug. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Other Exit-Related Activities | Note 16 - Restructuring Charges and Other Exit-Related Activities In fiscal 2020, the Company implemented restructuring initiatives aimed at further reducing its annual operating expenses, primarily selling, general, and administrative, mainly through reductions in non-trade procurement spend, including outside and professional services, lower employee-related expenses, and other non-headcount measures. Additionally, in April 2020, the Company announced its intention to modify its internal organizational and reporting structure to the One Schnitzer functionally-based, integrated model, which it completed in the first quarter of fiscal 2021. During fiscal 2020, the Company incurred severance costs of $ 2 million, exit-related costs associated with a lease contract termination of $ 1 million, and professional services costs related to these initiatives of $ 6 million. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Aug. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 17 - Net Income (Loss) Per Share The following table sets forth the information used to compute basic and diluted net income (loss) per share attributable to SSI shareholders for the years ended August 31 (in thousands): 2022 2021 2020 Income (loss) from continuing operations $ 172,079 $ 170,054 $ ( 2,105 ) Net income attributable to noncontrolling interests ( 3,196 ) ( 4,863 ) ( 1,945 ) Income (loss) from continuing operations attributable to SSI shareholders 168,883 165,191 ( 4,050 ) Loss from discontinued operations, net of tax ( 83 ) ( 79 ) ( 95 ) Net income (loss) attributable to SSI shareholders $ 168,800 $ 165,112 $ ( 4,145 ) Computation of shares: Weighted average common shares outstanding, basic 28,084 27,982 27,672 Incremental common shares attributable to dilutive performance share, RSU and DSU awards 1,445 1,211 — Weighted average common shares outstanding, diluted 29,529 29,193 27,672 Common stock equivalent shares of 113,005 were considered antidilutive and were excluded from the calculation of diluted net income per share attributable to SSI shareholders for the year ended August 31, 2022 . No common stock equivalent shares were considered antidilutive for the year ended August 31, 2021. Common stock equivalent shares of 629,223 were considered antidilutive and were excluded from the calculation of diluted net loss per share attributable to SSI shareholders for the year ended August 31, 2020 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 18 - Related Party Transactions The Company purchases recycled metal from one of its joint venture operations at prices that approximate fair market value. These purchases totaled $ 26 million , $ 20 million , and $ 11 million for the years ended August 31, 2022, 2021, and 2020 , respectively. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Aug. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts For the Years Ended August 31, 2022, 2021, and 2020 (In thousands) Column A Column B Column C Column D Column E Description Balance at Charges Deductions Balance at Fiscal 2022 Allowance for credit losses $ 1,566 $ 40 $ ( 56 ) $ 1,550 Deferred tax valuation allowance $ 14,522 $ 2,326 $ ( 1,506 ) $ 15,342 Fiscal 2021 Allowance for doubtful accounts $ 1,593 $ — $ ( 27 ) $ 1,566 Deferred tax valuation allowance $ 16,933 $ 482 $ ( 2,893 ) $ 14,522 Fiscal 2020 Allowance for doubtful accounts $ 1,569 $ 66 $ ( 42 ) $ 1,593 Deferred tax valuation allowance $ 16,436 $ 1,293 $ ( 796 ) $ 16,933 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of Schnitzer Steel Industries, Inc. and its majority-owned and wholly-owned subsidiaries. The equity method of accounting is used for investments in joint ventures over which the Company has significant influence but does not have effective control. All significant intercompany account balances, transactions, profits, and losses have been eliminated. All transactions and relationships with variable interest entities are evaluated to determine whether the Company is the primary beneficiary of the entities, therefore requiring consolidation. The Company does not have any variable interest entities requiring consolidation. |
Segment Reporting | Segment Reporting The accounting standards for reporting information about operating segments define an operating segment as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses for which discrete financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. The Company’s internal organizational and reporting structure reflects a functionally based, integrated model and includes a single operating and reportable segment. |
Accounting Changes | Accounting Changes As of the beginning of the first quarter of fiscal 2020, the Company adopted an accounting standards update that requires a lessee to recognize a lease liability and a lease right-of-use asset on its balance sheet for all leases greater than 12 months, including those classified as operating leases. The Company adopted the new lease accounting standard using the modified retrospective transition method, whereby it applied the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2019. Such cumulative-effect adjustment for the Company was less than $ 1 million, which is presented separately in the Consolidated Statements of Equity. Adoption using the modified retrospective transition method did not have an impact on any prior period earnings of the Company, and no comparative prior periods were adjusted for the new guidance. See Note 5 - Leases for the disclosures required under the new standard. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $ 56 million and $ 47 million as of August 31, 2022 and 2021 , respectively. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable represent amounts primarily due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for credit losses, are recorded at the invoiced amount and do not bear interest. The Company extends credit to customers under contracts containing customary and explicit payment terms, and payment is generally required within 30 to 60 days of shipment. Nonferrous export sales typically require a deposit prior to shipment. Historically, almost all of the Company’s ferrous export sales have been made with letters of credit. Ferrous and nonferrous metal sales to domestic customers and finished steel sales are generally made on open account, and a portion of these sales are covered by credit insurance. The Company evaluates the collectibility of its accounts receivable based on a combination of factors, including whether sales were made pursuant to letters of credit or required deposits prior to shipment, the aging of customer receivable balances, the financial condition of the Company’s customers, historical collection rates, and economic trends. Management uses this evaluation to estimate the amount of customer receivables that may not be collected in the future and records a provision for expected credit losses. Accounts are written off when all efforts to collect have been exhausted. The allowance for credit losses was $ 2 million as of both August 31, 2022 and 2021. Also included in accounts receivable are short-term advances to scrap metal suppliers used as a mechanism to acquire unprocessed scrap metal. The advances are generally repaid with scrap metal, as opposed to cash. Repayments of advances with scrap metal are treated as noncash operating activities in the Consolidated Statements of Cash Flows and totaled $ 11 million, $ 10 million, and $ 9 million for the fiscal years ended August 31, 2022, 2021, and 2020 , respectively. |
Inventories | Inventories The Company’s inventories consist of processed and unprocessed scrap metal (ferrous, nonferrous, and mixed nonferrous recovered joint products arising from the manufacturing process), semi-finished steel products (billets), finished steel products (primarily rebar, wire rod, and merchant bar), used and salvaged vehicles, and supplies. Inventories are stated at the lower of cost and net realizable value. The Company determines the cost of ferrous and nonferrous scrap metal inventories using the average cost method and capitalizes substantially all direct processing costs and facility costs into inventory. The Company allocates material and production costs to joint products using the gross margin method. The Company determines the cost of used and salvaged vehicle inventory at its auto parts stores, which is reported within finished goods, based on the average price the Company pays for a vehicle and capitalizes the vehicle cost and substantially all production costs into inventory. The Company determines the cost of its semi-finished and finished steel product inventories based on average costs and capitalizes all direct and indirect costs of manufacturing into inventory. Indirect costs of manufacturing include general plant costs, maintenance, and facility costs. The Company determines the cost of the substantial majority of its supplies inventory using the average cost method and reduces the carrying value for losses due to obsolescence. Fixed manufacturing costs incurred in periods of abnormally low production are expensed. The Company considers estimated future selling prices when determining the estimated net realizable value of its inventory. As the Company generally sells its recycled ferrous metal under contracts that provide for shipment within 30 to 60 days after the price is agreed, it utilizes the selling prices under committed contracts and sales orders for determining the estimated net realizable value of quantities on hand that will be shipped under these contracts and sales orders. The accounting process the Company uses to record ferrous scrap metal quantities relies on significant estimates. With respect to estimating the quantities of unprocessed ferrous scrap metal inventory that are moved into production, management relies on weighed quantities of the processed ferrous material, adjusted for estimated metal recoveries and yields that are based on historical trends and other judgments by management. Actual recoveries and yields can vary depending on product quality, moisture content, and the source of the unprocessed metal. The Company’s estimates are intended to reasonably reflect the quantities of unprocessed ferrous scrap metal that are used in the production of processed ferrous metal. To assist in validating the reasonableness of these estimates, management periodically reviews shrink factors and performs monthly physical inventories. Due to the inherent nature of the Company’s scrap metal inventories, including variations in product density, holding period, and production processes utilized to manufacture the products, physical inventories will not necessarily detect all variances for scrap metal inventory such that estimates of quantities are required. To mitigate this risk, the Company further adjusts its ferrous physical inventories when the volume of a commodity is low and a physical inventory count is deemed to more accurately estimate the remaining volume. |
Leases | Leases The Company enters into leases to obtain access to real property, machinery, and equipment assets. Most of the Company’s lease obligations relate to real property leases for the Company’s operating sites, including the substantial majority of its auto parts stores, and for the Company’s administrative offices. The Company determines whether an arrangement contains a lease at inception by assessing whether it receives the right to direct the use of and obtain substantially all of the economic benefit from use of the underlying asset. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). Leases that, at lease commencement, have a non-cancellable lease term of 12 months or less and do not include an option to either purchase the underlying asset or renew the lease beyond 12 months that the Company is reasonably certain to exercise are classified as short-term leases and are not recognized on the balance sheet. For leases other than short-term leases, the Company recognizes right-of-use assets and lease liabilities based primarily on the present value of future minimum lease payments over the lease term at lease commencement. Right-of-use assets represent the Company’s right to use the underlying asset during the lease term, while lease liabilities represent the Company’s obligation to make future lease payments. The lease term is the non-cancellable period of the lease, together with periods covered by renewal (or termination) options which the Company is reasonably certain to exercise (or not to exercise). Lease payments are discounted to present value using the Company’s incremental borrowing rate unless the discount rate implicit in the lease is readily determinable. The Company’s incremental borrowing rate for each lease is the estimated rate of interest that the Company would have to pay to borrow the aggregate lease payments on a collateralized basis over the lease term. Estimation of the incremental borrowing rate requires judgment by management and reflects an assessment of the Company’s credit standing to derive an implied secured credit rating and corresponding yield curve. Right-of-use assets and lease liabilities are subject to remeasurement after lease commencement when certain events or changes in circumstances arise, such as a change in the lease term due to reassessment of whether the Company is reasonably certain to exercise a renewal or termination option. For operating leases, lease expense is recognized on a straight-line basis over the lease term. For finance leases, the lease right-of-use asset is amortized on a straight-line basis and interest expense is recognized on the lease liability using the effective interest rate method. Many of the Company’s real property leases contain variable lease payments that depend on an index or a rate, which are included in the measurement of the right-of-use asset and lease liability using the index or rate at lease commencement. Subsequent changes in variable lease payments are recorded as variable lease expenses during the period in which they are incurred. The Company elected a practical expedient to not separate lease and related non-lease components for accounting purposes and, thus, costs related to such non-lease components are disclosed as lease expense. Payments for short-term leases are recognized in the income statement on a straight-line basis over the lease term. See Note 5 - Leases for further detail. The Company leases machinery assets to customers primarily to facilitate the provision of recycling services. For the periods presented, such lessor arrangements were classified as operating leases, whereby the Company keeps the asset underlying the lease on its balance sheet and depreciates the asset based on its estimated useful life. The Company recognizes lease income for these operating leases on a straight-line basis within revenues in the Consolidated Statements of Operations. As of August 31, 2022 and 2021 , property, plant and equipment, net, as reported in the Consolidated Balance Sheets, included machinery assets underlying these operating leases with a carrying value of $ 13 million and $ 11 million, respectively . Lease income derived from these operating leases was not material to any of the periods presented. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, while routine repair and maintenance costs are expensed as incurred. Interest cost related to the construction of qualifying assets is capitalized as part of the construction costs and was not material to any of the periods presented. When assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and resulting gains or losses are generally included in operating expense. Gains and losses from sales of assets related to an exit activity are reported within restructuring charges and other exit-related activities in the Consolidated Statements of Operations. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Upon idling an asset, depreciation continues to be recorded. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. As of August 31, 2022, the useful lives used for depreciation and amortization were as follows: Useful Life Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Enterprise Resource Planning (“ERP”) systems 6 to 17 Office equipment and other software licenses 3 to 10 |
Other Assets | Prepaid Expenses The Company’s prepaid expenses, reported within prepaid expenses and other current assets in the Consolidated Balance Sheets, totaled $ 43 million and $ 22 million as of August 31, 2022 and 2021, respectively, and consisted primarily of deposits on capital projects, prepaid insurance, prepaid services, and prepaid property taxes. Other Assets The Company’s other assets, exclusive of prepaid expenses and assets relating to certain employee benefit plans, consisted primarily of receivables from insurers, two equity investments, capitalized implementation costs for cloud computing arrangements, cash held in a client trust account relating to a legal settlement, major spare parts and equipment, debt issuance costs, and notes and other contractual receivables. Other assets are reported within either prepaid expenses and other current assets or other assets in the Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. See Note 13 - Employee Benefits for further detail on the Company’s assets relating to employee benefit plans. Receivables from insurers represent the portion of insured losses expected to be recovered from the Company’s insurers. The receivable is recorded at an amount not to exceed the recorded loss and only if the terms of legally enforceable insurance contracts support that the insurance recovery will not be disputed and is deemed collectible. Receivables from insurers totaled $ 28 million and $ 21 million as of August 31, 2022 and 2021, respectively. As of August 31, 2022 , receivables from insurers comprised primarily $ 10 million relating to property loss and damage and other claims in connection with the December 2021 fire at the Company’s shredder facility in Everett, Massachusetts, $ 7 million relating to environmental claims, $ 6 million relating to third-party claims, and $ 4 million relating to workers’ compensation claims. As of August 31, 2021 , receivables from insurers comprised primarily $ 10 million relating to property loss and damage and other claims in connection with the May 2021 fire at the Company’s melt shop operations in McMinnville, Oregon, $ 6 million relating to environmental claims, and $ 4 million relating to workers’ compensation claims. See “Accounting for Impacts of Involuntary Events” below in this Note for further discussion of receivables and advance payments from insurers relating to property damage and business interruption claims. Other assets as of August 31, 2022 and 2021 also included approximately $ 7 million and $ 8 million, respectively, in connection with cash deposited into a client trust account in the second quarter of fiscal 2021 to fund the remediation of a site, a portion of which was previously leased to and operated by an indirect, wholly-owned subsidiary. The cash was deposited into the client trust account by other potentially liable parties in connection with settlement of a lawsuit relating to allocation of the remediation costs, including agreement by the Company’s subsidiary to perform certain remedial actions. See “Other Legacy Environmental Loss Contingencies” within “Contingencies – Environmental” in Note 10 - Commitments and Contingencies for further discussion of this matter. The Company invested $ 6 million in the equity of a privately-held U.S. waste and recycling entity in fiscal 2017, and in May 2022, the Company invested $ 5 million in the equity of an unrelated privately-held Canadian recycling entity. In August 2022, the privately-held U.S. waste and recycling entity merged with a publicly-traded U.S. entity. As a result of the merger, the Company's investment is held in equity units of a subsidiary of the publicly-traded entity, which equity units are not publicly traded but are exchangeable for shares of the publicly-traded entity. The timing and magnitude of exchange is solely at the discretion of the publicly-traded entity. The Company's influence over the operating and financial policies of each entity is not significant, and, thus, the investments are accounted for under the guidance for investments in equity securities. The equity investments do not have readily determinable fair values and, therefore, are carried at cost and adjusted for impairments and observable price changes. The investments are reported within other assets in the Consolidated Balance Sheets. As of August 31, 2022 and 2021, the aggregate carrying value of the investments was $ 11 million and $ 6 million , respectively. The Company has not recorded any impairments or upward or downward adjustments to the carrying value of the investments since their respective acquisition. The Company’s cloud computing arrangements primarily comprise hosting arrangements which are service contracts, whereby the Company gains remote access to use enterprise software hosted by the vendor or another third party on an as-needed basis for a period of time in exchange for a subscription fee. Subscription fees are usually prepaid and recorded in operating expense over the period that the Company has access to use the software. Implementation costs for cloud computing arrangements are capitalized if certain criteria are met and consist of internal and external costs directly attributable to developing and configuring cloud computing software for its intended use. Amortization of capitalized implementation costs is recorded on a straight-line basis over the term of the cloud computing arrangement, which is the non-cancellable period of the agreement, together with periods covered by renewal options which the Company is reasonably certain to exercise. Debt issuance costs consist primarily of costs incurred by the Company to enter or modify its credit facilities. The Company reports deferred debt issuance costs within other assets in the Consolidated Balance Sheets and amortizes them to interest expense on a straight-line basis over the contractual term of the arrangement. Notes and other contractual receivables consist primarily of advances to entities in the business of extracting scrap metal through demolition and other activities. Repayment of these advances to suppliers is in either cash or scrap metal. The Company performs periodic reviews of its notes and other contractual receivables to identify credit risks and to assess the overall collectibility of the receivables, which typically involves consideration of the value of collateral which in the case of advances to suppliers is generally in the form of scrap metal extracted from demolition and construction projects. A note or other contractual receivable is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the agreement. If the carrying value of the receivable exceeds its recoverable amount, an impairment is recorded for the difference. |
Accounting for Impacts of Involuntary Events | Accounting for Impacts of Involuntar y Events Assets destroyed or damaged as a result of involuntary events are written off or reduced in carrying value to their salvage value. When recovery of all or a portion of the amount of property damage loss or other covered expenses through insurance proceeds is demonstrated to be probable, a receivable is recorded and offsets the loss or expense up to the amount of the total loss or expense. No gain is recorded until all contingencies related to the insurance claim have been resolved. On May 22, 2021, the Company experienced a fire at its steel mill in McMinnville, Oregon. Direct physical loss or damage to property from the incident was limited to the mill’s melt shop, with no bodily injuries and no physical loss or damage to other buildings or equipment. As a result of the fire, the rolling mill production ceased in early June 2021. In August 2021, the steel mill began ramping up operations following the substantial completion of replacement and repairs of property and equipment in the melt shop that had been lost or damaged by the fire. The Company experienced the loss of business income during the shutdown of the steel mill and the subsequent ramp-up phase, which was substantially completed during the second quarter of fiscal 2022. The Company filed initial insurance claims for the physical loss and damage experienced at the mill's melt shop and business income losses resulting from the matter. As of August 31, 2021, prepaid expenses and other current assets in the Consolidated Balance Sheets included an initial $ 10 million insurance receivable recognized in the fourth quarter of fiscal 2021, primarily offsetting applicable losses including capital purchases of $ 10 million that had been incurred by the Company as of August 31, 2021. In fiscal 2022, the Company increased the amount of this insurance receivable to $ 25 million and recognized a related $ 15 million insurance recovery gain within cost of goods sold in the Consolidated Statements of Operations, reflecting recovery of applicable losses incurred as a result of the fire to date. In addition, during fiscal 2022, the Company received advance payments from insurers totaling approximately $ 30 million towards the Company’s claims, and not reflecting any final or full settlement of claims with the insurers, which amount reduced the $ 25 million insurance receivable to zero with the remaining amount of advance payments of $ 5 million reported within other accrued liabilities in the Consolidated Balance Sheets as of August 31, 2022. On December 8, 2021, the Company experienced a fire at its metals recycling facility in Everett, Massachusetts. Direct physical loss or damage to property from the incident was limited to the facility’s shredder building and equipment, with no bodily injuries and no physical loss or damage to property reported at other buildings or equipment. As a result of the fire, shredding operations ceased, while all non-shredding operations at the facility continued, including torching, shearing, separating, and sorting purchased non-shreddable recycled ferrous metals. On January 28, 2022, shredding operations at the facility began ramping up following the replacement and repairs to shredder equipment that had been damaged. Completion of the remainder of repair and replacement of property that experienced physical loss or damage, primarily buildings and improvements, will occur over a longer period and impacts on business income may continue. In addition, as of June 18, 2022, shredder operations temporarily ceased at the facility pending completion of discussions with the Massachusetts Department of Environmental Protection and the Massachusetts Attorney General’s office regarding installation and operation of temporary emission capture and controls that would allow operation of the shredder prior to completion of the repair and replacement of the shredder enclosure building. Non-shredding operations at the facility continue. The Company filed initial insurance claims for the property that experienced physical loss or damage and anticipated business income losses resulting from the matter. In fiscal 2022, the Company recognized an aggregate $ 17 million insurance receivable and related insurance recovery gain, reported within prepaid expenses and other current assets in the Consolidated Balance Sheets and within cost of goods sold in the Consolidated Statements of Operations, respectively, reflecting recovery of applicable losses including impairment charges of $ 7 million related to the carrying value of plant and equipment assets lost in or damaged by the fire and initial capital purchases, non-capitalizable repair and replacement costs, and other applicable losses totaling $ 10 million that had been incurred by the Company as of August 31, 2022. Also, during fiscal 2022, the Company received advance payments from insurers totaling approximately $ 7 million towards the Company's claims, and not reflecting any final or full settlement of claims with the insurers, which amount reduced the insurance receivable to $ 10 million as of August 31, 2022. |
Long-Lived Assets | Long-Lived Assets The Company tests long-lived tangible and intangible assets for impairment at the asset group level, which is determined based on the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Operating lease right-of-use assets are considered long-lived assets subject to this impairment testing. For the Company’s metals recycling operations, an asset group generally consists of the regional shredding operation along with surrounding feeder operations, except that the combined Oregon metals recycling and steel manufacturing operations is a single asset group. For the Company’s auto parts operations, generally each auto parts store is an asset group. The Company tests its asset groups for impairment when certain triggering events or changes in circumstances indicate that the carrying value of the asset group may be impaired. If the carrying value of the asset group is not recoverable because it exceeds the Company’s estimate of future undiscounted cash flows from the use and eventual disposition of the asset group, an impairment loss is recognized by the amount the carrying value exceeds its fair value, if any. The impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value. Fair value is determined using one or more of the income, market, or cost approaches, depending on the nature of the asset group. With respect to individual long-lived assets, changes in circumstances may merit a change in the estimated useful lives or salvage values of the assets, which are accounted for prospectively in the period of change. For such assets, the useful life is shortened based on the Company’s plans to dispose of or abandon the asset before the end of its original useful life and depreciation is accelerated beginning when that determination is made. Long-lived asset impairment charges (recoveries) and accelerated depreciation are reported in the Consolidated Statements of Operations within (1) asset impairment charges, net and (2) restructuring charges and other exit-related activities if related to a site closure. In fiscal 2022, the Company reported $ 2 million of such items within asset impairment charges, net, related primarily to abandonment of obsolete machinery and equipment assets. In fiscal 2020, the Company reported $ 6 million of such items within asset impairment charges, net, comprising primarily $ 2 million related to abandonment of obsolete machinery and equipment assets, $ 2 million related to impairment of two auto parts stores, and $ 2 million related to accelerated depreciation due to the shortening of the useful lives of certain metals recovery assets. |
Investments in Joint Ventures | Investments in Joint Ventures As of August 31, 2022, the Company had two 50 %-owned joint venture interests which were accounted for under the equity method of accounting. One of the joint ventures sells recycled metal to the Company’s operations at prices that approximate local market rates, which produces intercompany profit. This intercompany profit is eliminated while the products remain in inventory and is not recognized until the finished products are sold to third parties. As of August 31, 2022, the Company’s investments in equity method joint ventures have generated $ 12 million in cumulative undistributed earnings. A loss in value of an investment in a joint venture is recognized when the decline is other than temporary. Management considers all available evidence to evaluate the realizable value of its investments including the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the joint venture business, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Once management determines that an other-than-temporary impairment exists, the investment is written down to its fair value, which establishes a new cost basis. The Company determines fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. See Note 18 - Related Party Transactions for further detail on transactions with joint ventures. |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually on July 1 and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. Impairment of goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a “component”). A component of an operating segment is required to be identified as a reporting unit if the component is a business for which discrete financial information is available and segment management regularly reviews its operating results. When testing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determines that an impairment is more-likely-than-not, the Company is then required to perform the quantitative impairment test, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. When performing the quantitative impairment test, the Company applies a one-step quantitative test and records the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. When the Company performs a quantitative goodwill impairment test, it estimates the fair value of the reporting unit using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based weighted average cost of capital (“WACC”) determined separately for the reporting unit. The determination of fair value involves the use of estimates and assumptions, including revenue growth rates driven by future ferrous and nonferrous commodity price and sales volume expectations, automobile scrap and core price and sales volume expectations, gross margins, selling, general, and administrative expense relative to total revenues, capital expenditures, working capital requirements, discount rate (WACC), tax rate, terminal growth rate, benefits associated with a taxable transaction, and synergistic benefits available to market participants. In addition, to corroborate the reporting units’ valuation, the Company uses a market approach based on earnings multiple data and a reconciliation of the Company’s estimate of the aggregate fair value of all reporting units to the Company’s market capitalization, including consideration of a control premium. The Company did no t record goodwill impairment charges in any of the periods presented. The Company tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The Company did not record impairment charges on indefinite-lived intangible assets in any of the periods presented. See Note 8 - Goodwill and Other Intangible Assets, net for further detail. |
Business Acquisitions | Business Acquisitions The Company recognizes the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. Contingent purchase consideration is recorded at fair value at the date of acquisition. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. Within one year from the date of acquisition, the Company may update the value allocated to the assets acquired and liabilities assumed and the resulting goodwill balance as a result of information received regarding the valuation of such assets and liabilities that was not available at the time of purchase. Measuring assets and liabilities at fair value requires the Company to determine the price that would be paid by a third-party market participant based on the highest and best use of the assets or interests acquired. Acquisition costs are expensed as incurred. See Note 7 - Business Acquisitions for further detail. |
Restructuring Charges and Other Exit-Related Activities | Restructuring Charges and Other Exit-Related Activities Restructuring charges consist of severance, contract termination, and other restructuring-related costs. A liability for severance costs is typically recognized when the plan of termination has been communicated to the affected employees and is measured at its fair value at the communication date. A liability for contract termination or other restructuring-related costs is measured at its fair value in the period in which the liability is incurred. Exit-related activities consist primarily of asset impairments in connection with closure of certain operations and sites, net of gains on exit-related disposals. |
Accrued Workers Compensation Costs | Accrued Workers’ Compensation Costs The Company is self-insured for the significant majority of workers’ compensation claims with exposure limited by various stop-loss insurance policies. The Company estimates the costs of workers’ compensation claims based on the nature of the injury incurred and on guidelines established by the applicable state. An accrual is recorded based upon the amount of unpaid claims as of the balance sheet date. Accrued amounts recorded for individual claims are reviewed periodically as treatment progresses and adjusted to reflect additional information that becomes available. The estimated cost of claims incurred but not reported is included in the accrual. The Company accrued $ 6 million and $ 7 million for the estimated cost of unpaid workers’ compensation claims as of August 31, 2022 and 2021, respectively, which are included in other accrued liabilities in the Consolidated Balance Sheets, with corresponding workers’ compensation insurance receivables of $ 4 million as of both August 31, 2022 and 2021 included in other current assets. |
Environmental Liabilities | Environmental Liabilities The Company estimates future costs for known environmental remediation requirements and accrues for them on an undiscounted basis when it is probable that the Company has incurred a liability and the related costs can be reasonably estimated but the timing of incurring the estimated costs is unknown. The Company considers various factors when estimating its environmental liabilities, and it evaluates the adequacy of these liabilities on a quarterly basis. Adjustments to the liabilities are recorded to selling, general, and administrative expense in the Consolidated Statements of Operations when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or expenditures are made for which liabilities were established. Legal investigation and defense costs incurred in connection with environmental contingencies are expensed as incurred. When only a wide range of estimated amounts can be reasonably established and no other amount within the range is a better estimate than another, the low end of the range is recorded in the financial statements. In a number of cases, it is possible that the Company may receive reimbursement through insurance or from other third parties for a site or matter. In these situations, recoveries of environmental remediation costs from other parties are recognized when realization of the claim for recovery is deemed probable. The amounts recorded for environmental liabilities are reviewed periodically as assessment and remediation progresses at individual sites or for particular matters and adjusted to reflect additional information that becomes available. Due to evolving remediation technology, changing regulations, possible third-party contributions, the subjective nature of the assumptions used, and other factors, amounts accrued could vary significantly from amounts paid. See “Contingencies – Environmental” in Note 10 - Commitments and Contingencies for further detail. |
Loss Contingencies | Loss Contingencies The Company is subject to certain legal proceedings and contingencies in addition to those related to environmental liabilities discussed above in this Note, the outcomes of which are subject to significant uncertainty. The Company accrues for estimated losses if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company uses judgment and evaluates whether a loss contingency arising from litigation or an unasserted claim should be disclosed or recorded. The outcome of legal proceedings and other contingencies is inherently uncertain and often difficult to estimate. Accrued legal contingencies are reported within other accrued liabilities in the Consolidated Balance Sheets. See “Contingencies – Other” in Note 10 - Commitments and Contingencies for further detail. |
Financial Instruments | Financial Instruments The Company’s financial instruments include primarily cash and cash equivalents, accounts receivable, accounts payable, and debt. The Company uses the market approach to value its financial assets and liabilities, determined using available market information. The net carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. For long-term debt, which is primarily at variable interest rates, fair value is estimated using observable inputs (Level 2) and approximates the carrying value. |
Fair Value Measurements | Fair Value Measurements Fair value is measured using inputs from the three levels of the fair value hierarchy. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are described as follows: • Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the determination of the fair value of the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs that are significant to the determination of the fair value of the asset or liability. When developing fair value measurements, the Company uses quoted market prices whenever available or seeks to maximize the use of observable inputs and minimize the use of unobservable inputs when quoted market prices are not available. |
Derivatives | Derivatives Derivative contracts for commodities used in normal business operations that are settled by physical delivery, among other criteria, are eligible for and may be designated as normal purchases and normal sales. Contracts that qualify as normal purchases or normal sales are not marked-to-market. The Company does not use derivative instruments for trading or speculative purposes. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities of the Company’s operations in Canada are translated into U.S. dollars at the period-end exchange rate, revenues and expenses of these operations are translated into U.S. dollars at the average exchange rate for the period, and cash flows of these operations are translated into U.S. dollars using the exchange rates in effect at the time of the cash flows. Translation adjustments are not included in determining net income for the period, but are recorded in accumulated other comprehensive income, a separate component of shareholders’ equity. Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency. Gains and losses on foreign currency transactions are generally included in determining net income for the period. The Company reports these gains and losses within other expense, net in the Consolidated Statements of Operations. Net realized and unrealized foreign currency transaction gains and losses were not material for fiscal 2022, 2021, or 2020 . |
Common Stock | Common Stock Each share of Class A and Class B common stock is entitled to one vote. Additionally, each share of Class B common stock may be converted to one share of Class A common stock. As such, the Company reserves one share of Class A common stock for each share of Class B common stock outstanding. There are currently no meaningful distinctions between the rights of holders of Class A shares and Class B shares. |
Share Repurchases | Share Repurchases The Company accounts for the repurchase of stock at par value. All shares repurchased are deemed retired. Upon retirement of the shares, the Company records the difference between the weighted average cost of such shares and the par value of the stock as an adjustment to additional paid-in capital, with the excess recorded to retained earnings when additional paid-in capital is not sufficient. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. Nearly all of these promises, referred to as performance obligations, consist of the transfer of physical goods, including recycled ferrous and nonferrous metal, auto bodies, auto parts, and finished steel products, to customers. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. For example, the Company recognizes revenue on partially loaded bulk shipments of recycled ferrous metal when contractual terms support revenue recognition based on transfer of title and risk of loss. The significant majority of the Company’s sales involve transfer of control to the customer, and thus revenue recognition, before delivery to the customer’s destination; for example, upon release of the goods to the shipper. The Company’s bill-and-hold arrangements involve transfer of control to the customer when the goods have been segregated from other inventory at the Company’s facility and are ready for physical transfer to the customer. Shipping and handling activities that occur after a customer has obtained control of a good are accounted for as fulfillment costs rather than an additional promise in a contract. As such, shipping and handling consideration (freight revenue) is recognized when control of the goods transfers to the customer, and freight expense is accrued to cost of goods sold when the related revenue is recognized. In certain regional markets, the Company enters into contracts whereby it arranges for, or brokers, the transfer of recyclable material between suppliers and end customers. For transactions in which the Company obtains substantive control of the material before the goods are transferred to the end customer, for example by arranging for the processing or warehousing of the material, the Company recognizes revenue equal to the gross amount of the consideration it expects to receive from the customer (as principal). Alternatively, for transactions in which the Company does not obtain substantive control of the material before the product is transferred to the end customer, the Company recognizes revenue equal to the net amount of the consideration it expects to retain after paying the supplier for the purchase of the material (as agent). The Company is the agent in the transaction for the substantial majority of brokerage arrangements. Nearly all of the Company’s sales contracts reflect market pricing at the time the contract is executed, are one year or less, and generally provide for shipment within 30 to 60 days after the price has been agreed upon with the customer. The Company’s retail auto parts sales are at listed prices and are recognized at the point of sale. The Company recognizes revenue based on contractually stated selling prices and quantities shipped, net of sales tax, and adjusted for estimated claims and discounts. Claims are customary in the recycled metal industry and arise from variances in the quantity or quality of delivered products. Revenue adjustments may be required if the settlement of claims exceeds original estimates. Discounts offered to certain finished steel customers qualify as variable consideration as the discounts are contingent upon future events. Variable consideration arising from discounts is recognized upon the transfer of finished steel products to customers based upon either the expected value or the most likely amount and was not material for each of the years ended August 31, 2022, 2021, and 2020. The Company experiences very few sales returns and, therefore, no material provisions for returns have been made when sales are recognized. For each of the years ended August 31, 2022, 2021, and 2020 , revenue adjustments related to performance obligations that were satisfied in previous periods were not material. |
Advertising Costs | Advertising Costs The Company expenses advertising costs when incurred. Advertising expense for each of the years ended August 31, 2022 and 2021 was $ 6 million and was $ 5 million for the year ended August 31, 2020 . |
Share-Based Compensation | Share-Based Compensation The Company estimates the grant-date fair value of stock-based compensation awards based on the market closing price of the underlying Class A common stock on the date of grant, except for performance share awards with a total shareholder return (“TSR”) market condition for which the Company estimates the grant-date fair value using a Monte-Carlo simulation model. The Company recognizes compensation cost for all awards, net of estimated forfeitures, over the requisite service period. Share-based compensation cost is based on the grant-date fair value as described above, except for performance share awards with a non-market performance condition. For these awards, compensation cost is based on the probable outcome of achieving the specified performance conditions. The Company reassesses whether achievement of the performance condition is probable at each reporting date and, if probable, the level of achievement. See Note 14 - Share-Based Compensation for further detail. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. This requires the recognition of taxes currently payable or refundable and the recognition of deferred tax assets and liabilities for the future tax consequences of events that are recognized in one reporting period in the Consolidated Financial Statements but in a different reporting period on the tax returns. Tax credits are recognized as a reduction of income tax expense in the year the credit arises. Valuation allowances are recorded to reduce deferred tax assets when it is more-likely-than-not that a tax benefit will not be realized. The Company assesses the realizability of its deferred tax assets on a quarterly basis through an analysis of potential sources of future taxable income, including prior year taxable income available to absorb a carryback of tax losses, reversals of existing taxable temporary differences, tax planning strategies, and forecasts of taxable income. The Company considers all negative and positive evidence, including the weight of the evidence, to determine if valuation allowances against deferred tax assets are required. Tax benefits arising from uncertain tax positions are recognized when it is more-likely-than-not that the position will be sustained upon examination by the relevant tax authorities. The amount recognized in the financial statements is the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. See Note 15 - Income Taxes for further detail. |
Net (Loss) Income Per Share | Net Income (Loss) Per Share Basic net income (loss) per share attributable to SSI shareholders is computed by dividing net income (loss) attributable to SSI shareholders by the weighted average number of outstanding common shares during the period presented including vested deferred stock units (“DSUs”) and restricted stock units (“RSUs”) meeting certain criteria. Diluted net income (loss) per share attributable to SSI shareholders is computed by dividing net income (loss) attributable to SSI shareholders by the weighted average number of common shares outstanding, assuming dilution. Potentially dilutive common shares include the assumed vesting of performance share, RSU, and DSU awards using the treasury stock method. Net income attributable to noncontrolling interests is deducted from income (loss) from continuing operations to arrive at income (loss) from continuing operations attributable to SSI shareholders for the purpose of calculating income (loss) per share from continuing operations attributable to SSI shareholders. See Note 17 - Net Income (Loss) Per Share for further detail. |
Use of Estimates | Use of Estimates The preparation of the Company’s Consolidated Financial Statements in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenue and expenses during the reporting period. Examples include revenue recognition; the allowance for credit losses; estimates of contingencies, including environmental liabilities and other legal liabilities; goodwill, long-lived asset and indefinite-lived intangible asset valuation; valuation of equity investments; valuation of certain share-based awards; other asset valuation; inventory measurement and valuation; pension plan assumptions; and the assessment of the valuation of deferred income taxes and income tax contingencies. Actual results may differ from estimated amounts. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The majority of cash and cash equivalents is maintained with major financial institutions. Balances with these and certain other institutions exceeded the Federal Deposit Insurance Corporation insured amount of $ 250 thousand as of August 31, 2022 . Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up the Company’s customer base. The Company controls credit risk through credit approvals, credit limits, credit insurance, letters of credit or other collateral, cash deposits, and monitoring procedures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives Used for Depreciation and Amortization | As of August 31, 2022, the useful lives used for depreciation and amortization were as follows: Useful Life Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Enterprise Resource Planning (“ERP”) systems 6 to 17 Office equipment and other software licenses 3 to 10 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of August 31 (in thousands): 2022 2021 Processed and unprocessed scrap metal $ 166,368 $ 164,960 Semi-finished goods 20,009 7,671 Finished goods 72,625 39,368 Supplies 56,187 44,428 Inventories $ 315,189 $ 256,427 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Leases [Abstract] | |
Schedule of Finance Lease Assets and Liabilities | Finance lease assets and liabilities consisted of the following as of August 31 (in thousands): Balance Sheet Classification 2022 2021 Assets: Finance lease right-of-use assets (1) Property, plant and equipment, net $ 4,861 $ 5,422 Liabilities: Finance lease liabilities - current Short-term borrowings $ 1,736 $ 1,464 Finance lease liabilities - noncurrent Long-term debt, net of current maturities 4,158 5,127 Total finance lease liabilities $ 5,894 $ 6,591 Presented net of accumulated amortization of $ 4 million and $ 2 million as of August 31, 2022 and 2021 , respectivel |
Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates | The weighted average remaining lease terms and weighted average discount rates for the Company’s leases as of August 31: 2022 2021 Weighted Average Weighted Average Weighted Average Weighted Average Operating leases 9.5 3.36 % 9.7 3.37 % Finance leases 4.5 7.17 % 5.2 7.78 % |
Schedule of Maturities of Leases Liabilities | Maturities of lease liabilities by fiscal year as of August 31, 2022 were as follows (in thousands): Year Ending August 31, Finance Leases Operating Leases 2023 $ 1,991 $ 25,012 2024 1,715 20,810 2025 920 15,913 2026 700 12,754 2027 615 11,307 Thereafter 735 59,999 Total lease payments 6,676 145,795 Less amounts representing interest ( 782 ) ( 22,484 ) Total lease liabilities 5,894 123,311 Less current maturities ( 1,736 ) ( 21,660 ) Lease liabilities, net of current maturities $ 4,158 $ 101,651 |
Summary of Supplemental Cash Flow Information and Non-Cash Activity Related to Leases | Supplemental cash flow information and non-cash activity related to leases are as follows (in thousands): Year Ended August 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 25,351 $ 24,154 $ 22,225 Operating cash flows for finance leases $ 403 $ 498 $ 628 Financing cash flows for finance leases $ 1,483 $ 1,332 $ 1,336 Lease liabilities arising from obtaining right-of-use assets (1) : Operating leases $ 12,000 $ 8,325 $ 34,586 Finance leases $ 534 $ 445 $ 1,230 (1) Amounts include new leases and adjustments to lease balances as a result of remeasurement. |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net consisted of the following as of August 31 (in thousands): 2022 2021 Machinery and equipment $ 875,904 $ 791,043 Land and improvements 324,453 304,188 Buildings and leasehold improvements 148,634 147,106 Enterprise resource planning (ERP) systems 18,945 17,760 Office equipment and other software licenses 30,797 37,326 Construction in progress 120,419 102,544 Property, plant and equipment, gross 1,519,152 1,399,967 Less accumulated depreciation ( 855,032 ) ( 837,293 ) Property, plant and equipment, net (1) $ 664,120 $ 562,674 (1) Property, plant and equipment, net included $ 22 million and $ 18 million as of August 31, 2022 and 2021, respectively, related to the Company’s Canadian operations. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Columbus Recycling | |
Business Acquisition [Line Items] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed by the Company as of the October 1, 2021 acquisition date (in thousands): Cash $ 325 Accounts receivable 22,763 Inventories 10,060 Other current assets 255 Property, plant and equipment 13,491 Operating lease right-of-use assets 254 Goodwill (1) 65,203 Other intangible assets 19,741 Total assets acquired 132,092 Current liabilities 11,828 Other liabilities 3,350 Total liabilities assumed 15,178 Net assets acquired $ 116,914 (1) Approximately $ 62 million of the amount of acquired goodwill is tax deductible. |
Summary of Provisional Purchase Price Allocation to Identifiable Intangible Assets and Estimated Useful Lives | The following table summarizes the purchase price allocation to the identifiable intangible assets and their estimated useful lives as of the October 1, 2021 acquisition date (in thousands): Useful Life Supplier relationships $ 17,245 7 Customer relationships 2,496 7 $ 19,741 |
Encore Recycling | |
Business Acquisition [Line Items] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the provisional fair values of the assets acquired and liabilities assumed by the Company as of the April 29, 2022 acquisition date (in thousands): Accounts receivable $ 10,356 Inventories 4,325 Other current assets 15 Property, plant and equipment 25,143 Operating lease right-of-use assets 402 Goodwill (1) 20,494 Other intangible assets 4,809 Total assets acquired 65,544 Current liabilities 1,322 Other liabilities 1,091 Total liabilities assumed 2,413 Net assets acquired $ 63,131 (1) Approximately $ 20 million of the provisional amount of acquired goodwill is tax deductible. |
Summary of Provisional Purchase Price Allocation to Identifiable Intangible Assets and Estimated Useful Lives | The following table summarizes the provisional purchase price allocation to the identifiable intangible assets and their estimated useful lives as of the April 29, 2022 acquisition date (in thousands): Useful Life Supplier relationships $ 3,679 7 Customer relationships 1,130 7 $ 4,809 |
Summary of Unaudited Pro Forma Information | The following unaudited pro forma information presents the effect on the consolidated financial results of the Company of the Columbus Recycling and Encore Recycling businesses acquired during fiscal 2022 as though the businesses had been acquired as of the beginning of fiscal 2021 (in thousands): Year Ended August 31, 2022 2021 Revenues $ 3,566,000 $ 2,989,000 Net income $ 184,500 $ 179,000 Net income attributable to SSI shareholders $ 181,000 $ 174,500 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Change in Carrying Amount of Goodwill | The gross change in the carrying amount of goodwill for the years ended August 31, 2022 and 2021 was as follows (in thousands): Goodwill Balance as of September 1, 2020 $ 169,627 Foreign currency translation adjustment 677 Balance as of August 31, 2021 170,304 Additions (1) 84,040 Measurement period adjustments 1,657 Foreign currency translation adjustment ( 803 ) Balance as of August 31, 2022 $ 255,198 (1) Additions to goodwill relate to the acquired Columbus Recycling business (approximately $ 62 million) and the Encore Recycling business (approximately $ 22 million) and are exclusive of measurement period adjustments relating to these same business acquisitions, which adjustments are presented separately. The amount of acquired goodwill in the Encore Recycling acquisition was provisional as of August 31, 2022. See Note 7 - Business Acquisitions . |
Schedule of Other Intangible Assets | The following table presents the Company’s other intangible assets as of August 31 (in thousands): 2022 2021 Gross Accumulated Net Gross Accumulated Net Covenants not to compete $ 7,780 $ ( 4,442 ) $ 3,338 $ 6,745 $ ( 3,846 ) $ 2,899 Supplier relationships (1) 20,924 ( 2,433 ) 18,491 — — — Customer relationships (1) 3,626 ( 381 ) 3,245 — — — Indefinite-lived intangibles (2) 1,081 — 1,081 1,081 — 1,081 Total $ 33,411 $ ( 7,256 ) $ 26,155 $ 7,826 $ ( 3,846 ) $ 3,980 (1) Purchase price allocated to identifiable intangible assets in connection with the acquisition of the Columbus Recycling business and the Encore Recycling business in fiscal 2022. The amount of acquired intangible assets in connection with the Encore Recycling acquisition, as presented above in Note 7 - Business Acquisitions, was provisional as of August 31, 2022. (2) Indefinite-lived intangibles include previously acquired trade names and certain permits and licenses. |
Schedule of Estimated Amortization Expenses | The estimated amortization expense, based on current intangible asset balances, during the next five fiscal years and thereafter is as follows (in thousands): Years Ending August 31, Estimated 2023 $ 4,283 2024 4,232 2025 4,078 2026 4,078 2027 3,834 Thereafter 4,569 Total $ 25,074 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Long-Term Debt and Lease Obligation [Abstract] | |
Schedule of Debt | Debt consisted of the following as of August 31 (in thousands): 2022 2021 Bank revolving credit facilities, interest primarily at SOFR or LIBOR plus a spread $ 230,000 $ 60,000 Finance lease liabilities 5,894 6,591 Other debt obligations 12,668 8,362 Total debt 248,562 74,953 Less current maturities ( 6,041 ) ( 3,654 ) Debt, net of current maturities $ 242,521 $ 71,299 |
Summary of Principal Payments on Bank Revolving Credit Facilities and Other Debt Obligations | Principal payments on the Company’s bank revolving credit facilities and other debt obligations during the next five fiscal years and thereafter are as follows (in thousands): Year Ending August 31, Credit Facilities Other Debt Obligations 2023 $ — $ 4,306 2024 — 2,425 2025 — 2,466 2026 — 2,735 2027 230,000 736 Thereafter — — Total $ 230,000 $ 12,668 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Environmental Liabilities | Changes in the Company’s environmental liabilities for the years ended August 31, 2022 and 2021 were as follows (in thousands): Balance as of Liabilities Payments and Ending Balance Liabilities Payments and Ending Balance Current Noncurrent Liability $ 53,464 $ 28,761 $ ( 5,097 ) $ 77,128 $ 12,839 $ ( 21,467 ) $ 68,500 $ 13,031 $ 55,469 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax, are as follows as of August 31, 2022, 2021, and 2020 (in thousands): Foreign Currency Pension Obligations, Total Balance as of September 1, 2019 $ ( 35,689 ) $ ( 3,074 ) $ ( 38,763 ) Other comprehensive income before reclassifications 1,505 190 1,695 Income tax expense — ( 42 ) ( 42 ) Other comprehensive income before reclassifications, 1,505 148 1,653 Amounts reclassified from accumulated other comprehensive loss — 309 309 Income tax benefit — ( 70 ) ( 70 ) Amounts reclassified from accumulated other comprehensive loss, — 239 239 Net periodic other comprehensive income 1,505 387 1,892 Balance as of August 31, 2020 ( 34,184 ) ( 2,687 ) ( 36,871 ) Other comprehensive income (loss) before reclassifications 2,575 ( 530 ) 2,045 Income tax benefit — 120 120 Other comprehensive income (loss) before reclassifications, net 2,575 ( 410 ) 2,165 Amounts reclassified from accumulated other comprehensive loss — 196 196 Income tax benefit — ( 44 ) ( 44 ) Amounts reclassified from accumulated other comprehensive loss, — 152 152 Net periodic other comprehensive income (loss) 2,575 ( 258 ) 2,317 Balance as of August 31, 2021 ( 31,609 ) ( 2,945 ) ( 34,554 ) Other comprehensive (loss) income before reclassifications ( 3,070 ) 355 ( 2,715 ) Income tax expense — ( 80 ) ( 80 ) Other comprehensive (loss) income before reclassifications, net ( 3,070 ) 275 ( 2,795 ) Amounts reclassified from accumulated other comprehensive loss — 336 336 Income tax benefit — ( 76 ) ( 76 ) Amounts reclassified from accumulated other comprehensive loss, — 260 260 Net periodic other comprehensive (loss) income ( 3,070 ) 535 ( 2,535 ) Balance as of August 31, 2022 $ ( 34,679 ) $ ( 2,410 ) $ ( 37,089 ) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues Disaggregated by Major Product and Sales Destination | The table below illustrates the Company’s revenues disaggregated by major product and sales destination (in thousands): Year Ended August 31, 2022 2021 2020 Major product information: Ferrous revenues $ 1,914,255 $ 1,557,891 $ 862,490 Nonferrous revenues 892,444 684,862 390,298 Steel revenues (1) 531,731 379,203 336,980 Retail and other revenues 147,385 136,595 122,575 Total revenues $ 3,485,815 $ 2,758,551 $ 1,712,343 Revenues based on sales destination: Foreign $ 1,925,235 $ 1,612,744 $ 910,785 Domestic 1,560,580 1,145,807 801,558 Total revenues $ 3,485,815 $ 2,758,551 $ 1,712,343 (1) Steel revenues include predominantly sales of finished steel products, in addition to sales of semi-finished goods (billets) and steel manufacturing scrap. |
Summary of Foreign Countries which Sales Exceeded 10% of Consolidated Revenues | The schedule below identifies those foreign countries to which the Company’s sales exceeded 10% of consolidated revenues in any of the last three years ended August 31 (in thousands): 2022 % of 2021 % of 2020 % of Bangladesh $ 446,385 13 % $ 375,668 14 % $ 197,391 12 % Turkey N/A N/A N/A N/A $ 222,141 13 % N/A = Sales were less than the 10 % threshold. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of RSU Activity | A summary of the Company’s RSU activity for the year ended August 31, 2022 is as follows: Number of Weighted Average Outstanding as of August 31, 2021 956 $ 20.62 Granted 160 $ 52.32 Vested ( 296 ) $ 21.33 Forfeited ( 7 ) $ 22.38 Outstanding as of August 31, 2022 813 $ 26.59 |
Key Assumptions for a Monte-Carlo Simulation Model Utilized to Estimate the Fair Value of Performance Share awards | 2022 2021 2020 Expected share price volatility (SSI) 51.6 % 48.5 % 38.9 % Expected share price volatility (Peer group) 58.5 % 54.9 % 44.5 % Expected correlation to peer group companies 46.0 % 44.5 % 34.3 % Risk-free rate of return 0.61 % 0.23 % 1.58 % The fair value of the ROCE awards granted in fiscal 2021 and 2020, which awards do not have a TSR market condition, is based on the market closing price of the underlying Class A common stock on the grant date. All the performance share awards granted in fiscal 2022 have a non-market performance condition (either recycled metal volume growth or ROCE) in addition to a market condition (TSR modifier), and the ROCE awards granted in fiscal 2021 and 2020 have only a non-market performance condition. |
Summary of Performance-based Awards Activity | A summary of the Company’s performance-based awards activity for the year ended August 31, 2022 is as follows: Number of Weighted Average Outstanding as of August 31, 2021 873 $ 23.62 Granted 153 $ 54.29 Performance achievement (1) 61 $ 29.17 Vested ( 263 ) $ 28.66 Forfeited ( 42 ) $ 27.44 Outstanding as of August 31, 2022 782 28.16 (1) Reflects the net number of awards achieved above target levels based on actual performance measured at the end of the performance period. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Income (loss) from continuing operations before income taxes was as follows for the years ended August 31 (in thousands): 2022 2021 2020 United States $ 204,150 $ 195,037 $ ( 5,649 ) Foreign 12,526 12,952 3,710 Total $ 216,676 $ 207,989 $ ( 1,939 ) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands): 2022 2021 2020 Current: Federal $ 18,114 $ 27,244 $ ( 15,778 ) State 1,392 3,811 329 Foreign 39 ( 4 ) 519 Total current tax expense (benefit) 19,545 31,051 ( 14,930 ) Deferred: Federal 21,771 6,939 12,292 State 780 ( 547 ) 1,338 Foreign 2,501 492 1,466 Total deferred tax expense 25,052 6,884 15,096 Total income tax expense $ 44,597 $ 37,935 $ 166 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows: 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of credits 1.6 1.4 ( 57.9 ) Foreign income taxed at different rates — ( 0.5 ) ( 11.6 ) Valuation allowance on deferred tax assets 0.4 ( 1.0 ) ( 24.5 ) Federal rate change — 0.4 71.9 Non-deductible officers’ compensation 2.5 1.2 ( 46.9 ) Other non-deductible expenses 0.3 0.4 ( 66.0 ) Noncontrolling interests ( 0.3 ) ( 0.5 ) 21.1 Research and development credits ( 0.9 ) ( 1.5 ) 99.3 Tax return to provision adjustment ( 2.4 ) — 89.2 Unrecognized tax benefits 1.2 0.9 ( 97.3 ) Interest income ( 0.1 ) ( 0.1 ) 9.0 Excess tax benefit from stock-based compensation ( 1.6 ) ( 0.2 ) 3.0 Foreign derived intangible income ( 1.0 ) ( 2.5 ) — Other ( 0.1 ) ( 0.8 ) ( 18.9 ) Effective tax rate 20.6 % 18.2 % ( 8.6 )% |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities comprised the following as of August 31 (in thousands): 2022 2021 Deferred tax assets: Operating lease liabilities $ 17,901 $ 20,645 Amortizable goodwill and other intangibles 9,914 13,490 Employee benefit accruals 12,241 14,007 Net operating loss carryforwards 7,499 7,642 Environmental liabilities 9,742 10,508 Other contingencies 5,199 5,044 State credit carryforwards 7,212 7,216 Inventory valuation methods 2,749 2,129 Other 3,687 2,459 Valuation allowances ( 15,342 ) ( 14,522 ) Total deferred tax assets 60,802 68,618 Deferred tax liabilities: Accelerated depreciation and other basis differences 60,539 43,304 Operating lease right-of-use assets 17,353 19,895 Investment in operating partnerships 15,553 12,410 Prepaid expense acceleration and other 6,087 6,041 Total deferred tax liabilities 99,532 81,650 Net deferred tax liabilities $ ( 38,730 ) $ ( 13,032 ) |
Summary of Reserve for Unrecognized Tax Benefits, Excluding Interest and Penalties | The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands): 2022 2021 2020 Unrecognized tax benefits, as of the beginning of the year $ 8,320 $ 7,456 $ 5,410 Additions (reductions) for tax positions of prior years 1,055 ( 574 ) 1,368 Additions for tax positions of the current year 974 1,486 852 Reductions for lapse of statutes ( 23 ) ( 48 ) ( 174 ) Unrecognized tax benefits, as of the end of the year $ 10,326 $ 8,320 $ 7,456 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth the information used to compute basic and diluted net income (loss) per share attributable to SSI shareholders for the years ended August 31 (in thousands): 2022 2021 2020 Income (loss) from continuing operations $ 172,079 $ 170,054 $ ( 2,105 ) Net income attributable to noncontrolling interests ( 3,196 ) ( 4,863 ) ( 1,945 ) Income (loss) from continuing operations attributable to SSI shareholders 168,883 165,191 ( 4,050 ) Loss from discontinued operations, net of tax ( 83 ) ( 79 ) ( 95 ) Net income (loss) attributable to SSI shareholders $ 168,800 $ 165,112 $ ( 4,145 ) Computation of shares: Weighted average common shares outstanding, basic 28,084 27,982 27,672 Incremental common shares attributable to dilutive performance share, RSU and DSU awards 1,445 1,211 — Weighted average common shares outstanding, diluted 29,529 29,193 27,672 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2021 USD ($) ExternalCustomer | Aug. 31, 2022 USD ($) Segment shares | Aug. 31, 2021 USD ($) ExternalCustomer | Aug. 31, 2020 USD ($) ExternalCustomer | Aug. 31, 2022 Jointventureinterest | Aug. 31, 2022 | Aug. 31, 2022 ExternalCustomer | May 31, 2022 USD ($) | |
Significant Accounting Policies [Line Items] | ||||||||
Number of operating segments | Segment | 1 | |||||||
Number of reportable segments | Segment | 1 | |||||||
Retained earnings, cumulative-effect adjustment | $ 793,712,000 | $ 941,146,000 | $ 793,712,000 | |||||
Bank Overdrafts | 47,000,000 | 56,000,000 | 47,000,000 | |||||
Allowance for Credit losses | 2,000,000 | 2,000,000 | 2,000,000 | |||||
Repayment of Advances with Scrap Metal | 11,000,000 | 10,000,000 | $ 9,000,000 | |||||
Operating lease carrying value | $ 13,000,000 | $ 11,000,000 | ||||||
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | ||||||
Insurance receivable | $ 10,000,000 | $ 0 | $ 10,000,000 | |||||
Proceeds from legal settlements | 7,000,000 | $ 8,000,000 | ||||||
Increase in insurance receivable | 25,000,000 | |||||||
Insurance recovery gain | $ 15,000,000 | |||||||
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | |||||||
Received payment related to claims from various insurers | $ 30,000,000 | |||||||
Insurance amount received | 25,000,000 | |||||||
Impairment charges related to carrying value of plant and equipment assets lost in or damaged by fire | 7,000,000 | |||||||
Initial capital purchases other costs and applicable losses of assets | 10,000,000 | |||||||
Asset impairment charges, net | 1,570,000 | $ 5,729,000 | ||||||
Number of Equity Method Investments | Jointventureinterest | 2 | |||||||
Cumulative Undistributed Earnings, Equity Method Joint Ventures | 12,000,000 | |||||||
Number of Joint Venture Investments | 0 | 0 | 0 | 1 | 0 | |||
Goodwill impairment charges | 0 | $ 0 | $ 0 | |||||
Advertising Expense | $ 6,000,000 | 6,000,000 | 5,000,000 | |||||
Percentage likelihood of tax benefit being realized upon settlement with tax authority | 50% | |||||||
Cash, FDIC Insured Amount | $ 250,000 | |||||||
Class A Common Stock | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Common Stock, Voting Rights | one | |||||||
Number Of Shares Class B Common Stock Convertible To Class A Common Stock | shares | 1 | |||||||
Number of Shares of Class A Common Stock Reserved For Class B Common Stock | shares | 1 | |||||||
Class B Common Stock | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Common Stock, Voting Rights | one | |||||||
Impairment Associated with Abandonment of Obsolete Machinery and Equipment Assets | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Asset impairment charges, net | $ 2,000,000 | 2,000,000 | ||||||
Impairments of Two Auto Parts Stores | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Asset impairment charges, net | 2,000,000 | |||||||
Impairment Associated with Accelerated Depreciation due to Shortening of Useful Lives of Certain Metals Recovery Assets | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Asset impairment charges, net | $ 2,000,000 | |||||||
Cost of Goods Sold | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Gain on insurance receivable recognized | $ 10,000,000 | 17,000,000 | ||||||
Prepaid Expenses and Other Current Assets | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Prepaid expense | 22,000,000 | 43,000,000 | 22,000,000 | |||||
Other Assets | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Insurance receivable | 21,000,000 | 28,000,000 | 21,000,000 | |||||
Property loss and damage and business interruption claims environmental claims insurance receivable | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Third party claims insurance receivable | 6,000,000 | |||||||
Environmental claims insurance receivable | 6,000,000 | 7,000,000 | 6,000,000 | |||||
Workers' Compensation insurance receivables | 4,000,000 | 4,000,000 | 4,000,000 | |||||
Investment, Carrying Value | 6,000,000 | 11,000,000 | 6,000,000 | |||||
Other Accrued Liabilities | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Received payment related to claims from various insurers | 5,000,000 | |||||||
Workers' Compensation Liability | 7,000,000 | 6,000,000 | 7,000,000 | |||||
Other Current Assets | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Workers' Compensation insurance receivables | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | |||||
Maximum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Shipment Period | 60 days | |||||||
Short-term election non-cancellable lease term | 12 months | |||||||
Short-term election lease term renewal option | 12 months | |||||||
Minimum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Shipment Period | 30 days | |||||||
Accounting Standards Update 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | Maximum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Retained earnings, cumulative-effect adjustment | $ 1,000,000 | |||||||
US Recycling | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Investment, Original Cost | $ 6,000,000 | |||||||
Canadian Recycling | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Investment, Original Cost | $ 5,000,000 | |||||||
Joint Venture Interests | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 50% | |||||||
Damage From Fire at Metals Recycling Facility in Everett, Massachusetts | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Insurance receivable | 10,000,000 | |||||||
Received payment related to claims from various insurers | $ 7,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies -Schedule of Useful Lives Used for Depreciation and Amortization (Details) | 12 Months Ended |
Aug. 31, 2022 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 35 years |
Buildings and leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Buildings and leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Enterprise Resource Planning ("ERP") systems | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Enterprise Resource Planning ("ERP") systems | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 17 years |
Office equipment and other software licenses | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office equipment and other software licenses | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Inventory, Net [Abstract] | ||
Processed and unprocessed scrap metal | $ 166,368 | $ 164,960 |
Semi-finished goods | 20,009 | 7,671 |
Finished goods | 72,625 | 39,368 |
Supplies | 56,187 | 44,428 |
Inventories | $ 315,189 | $ 256,427 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Lessee Lease Description [Line Items] | |||
Lease cost | $ 36 | $ 30 | $ 28 |
Operating lease expense | 25 | 24 | 23 |
Short-term lease expense | $ 10 | $ 5 | $ 4 |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Operating lease non-cancellable lease term | 5 years | ||
Operating lease renewal option, years | 5 years | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Operating lease non-cancellable lease term | 10 years | ||
Operating lease renewal option, years | 20 years | ||
Maximum | Machinery and Equipment | |||
Lessee Lease Description [Line Items] | |||
Finance lease and other operating leases non-cancellable lease term | 10 years |
Leases - Schedule of Finance Le
Leases - Schedule of Finance Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Assets: | ||
Finance lease right-of-use assets | $ 4,861 | $ 5,422 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Liabilities: | ||
Finance lease liabilities - current | $ 1,736 | $ 1,464 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Short-term borrowings | Short-term borrowings |
Finance lease liabilities - noncurrent | $ 4,158 | $ 5,127 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt, net of current maturities | Long-term debt, net of current maturities |
Total finance lease liabilities | $ 5,894 | $ 6,591 |
Leases - Schedule of Finance _2
Leases - Schedule of Finance Lease Assets and Liabilities (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Maximum | ||
Leases [Line Items] | ||
Finance lease, accumulated amortization | $ 4 | $ 2 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates (Details) | Aug. 31, 2022 | Aug. 31, 2021 |
Weighted Average Remaining Lease Term (Years) | ||
Operating leases | 9 years 6 months | 9 years 8 months 12 days |
Finance leases | 4 years 6 months | 5 years 2 months 12 days |
Weighted average discount rate | ||
Operating leases | 3.36% | 3.37% |
Finance leases | 7.17% | 7.78% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Finance Leases | ||
2023 | $ 1,991 | |
2024 | 1,715 | |
2025 | 920 | |
2026 | 700 | |
2027 | 615 | |
Thereafter | 735 | |
Total lease payments | 6,676 | |
Less amounts representing interest | (782) | |
Total finance lease liabilities | 5,894 | $ 6,591 |
Less current maturities | (1,736) | (1,464) |
Lease liabilities, net of current maturities | 4,158 | 5,127 |
Operating Leases | ||
2023 | 25,012 | |
2024 | 20,810 | |
2025 | 15,913 | |
2026 | 12,754 | |
2027 | 11,307 | |
Thereafter | 59,999 | |
Total lease payments | 145,795 | |
Less amounts representing interest | (22,484) | |
Total operating lease liabilities | 123,311 | |
Less current maturities | (21,660) | (21,417) |
Operating lease liabilities, net of current maturities | $ 101,651 | $ 113,165 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information and Non-Cash Activity Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 25,351 | $ 24,154 | $ 22,225 |
Operating cash flows for finance leases | 403 | 498 | 628 |
Financing cash flows for finance leases | 1,483 | 1,332 | 1,336 |
Lease liabilities arising from obtaining right-of-use assets: | |||
Operating leases | 12,000 | 8,325 | 34,586 |
Finance leases | $ 534 | $ 445 | $ 1,230 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,519,152 | $ 1,399,967 |
Less accumulated depreciation | (855,032) | (837,293) |
Property, plant and equipment, net | 664,120 | 562,674 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 875,904 | 791,043 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 324,453 | 304,188 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 148,634 | 147,106 |
Enterprise resource planning (ERP) systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,945 | 17,760 |
Office equipment and other software licenses | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 30,797 | 37,326 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 120,419 | $ 102,544 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net - Property, Plant and Equipment (Parenthetical) (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 664,120 | $ 562,674 |
CANADA | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 22,000 | $ 18,000 |
Property, Plant and Equipment_5
Property, Plant and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation of property plant and equipment including amortization expense for finance lease right-of-use assets | $ 72 | $ 58 | $ 57 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 29, 2022 USD ($) Facility | Oct. 01, 2021 USD ($) Facility | Aug. 31, 2022 USD ($) | Aug. 31, 2022 USD ($) | |
Columbus Recycling | ||||
Business Acquisition [Line Items] | ||||
Number of recycling facilities acquired | Facility | 8 | |||
Business acquisition, effective date of acquisition | Oct. 01, 2021 | |||
Cash purchase price | $ 107 | |||
Business acquisition, payments to acquire estimated net working capital | $ 7 | $ 3 | ||
Business acquisition, total purchase consideration | $ 117 | |||
Encore Recycling | ||||
Business Acquisition [Line Items] | ||||
Number of recycling facilities acquired | Facility | 2 | |||
Business acquisition, effective date of acquisition | Apr. 29, 2022 | |||
Cash purchase price | $ 55 | |||
Business acquisition, payments to acquire estimated net working capital | $ 8 | |||
Business acquisition, total purchase consideration | $ 63 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Jul. 01, 2022 | Apr. 29, 2022 | Oct. 01, 2021 | Aug. 31, 2021 | Aug. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 255,198 | $ 254,000 | $ 170,304 | $ 169,627 | ||
Columbus Recycling | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 325 | |||||
Accounts receivable | 22,763 | |||||
Inventories | 10,060 | |||||
Other current assets | 255 | |||||
Property, plant and equipment | 13,491 | |||||
Operating lease right-of-use assets | 254 | |||||
Goodwill | 65,203 | |||||
Other intangible assets | 19,741 | |||||
Total assets acquired | 132,092 | |||||
Current liabilities | 11,828 | |||||
Other liabilities | 3,350 | |||||
Total liabilities assumed | 15,178 | |||||
Net assets acquired | $ 116,914 | |||||
Encore Recycling | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 10,356 | |||||
Inventories | 4,325 | |||||
Other current assets | 15 | |||||
Property, plant and equipment | 25,143 | |||||
Operating lease right-of-use assets | 402 | |||||
Goodwill | 20,494 | |||||
Other intangible assets | 4,809 | |||||
Total assets acquired | 65,544 | |||||
Current liabilities | 1,322 | |||||
Other liabilities | 1,091 | |||||
Total liabilities assumed | 2,413 | |||||
Net assets acquired | $ 63,131 |
Business Acquisitions - Summa_2
Business Acquisitions - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) - USD ($) $ in Millions | Apr. 29, 2022 | Oct. 01, 2021 |
Columbus Recycling | ||
Business Acquisition [Line Items] | ||
Tax deductible amount of acquired goodwill | $ 62 | |
Encore Recycling | ||
Business Acquisition [Line Items] | ||
Tax deductible amount of acquired goodwill | $ 20 |
Business Acquisitions - Summa_3
Business Acquisitions - Summary of Provisional Purchase Price Allocation to Identifiable Intangible Assets and Estimated Useful Lives (Details) - USD ($) $ in Thousands | Apr. 29, 2022 | Oct. 01, 2021 |
Columbus Recycling | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 19,741 | |
Encore Recycling | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 4,809 | |
Supplier Relationships | Columbus Recycling | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 17,245 | |
Identifiable intangible assets, useful life | 7 years | |
Supplier Relationships | Encore Recycling | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 3,679 | |
Identifiable intangible assets, useful life | 7 years | |
Customer Relationships | Columbus Recycling | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 2,496 | |
Identifiable intangible assets, useful life | 7 years | |
Customer Relationships | Encore Recycling | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 1,130 | |
Identifiable intangible assets, useful life | 7 years |
Business Acquisitions - Summa_4
Business Acquisitions - Summary of Unaudited Pro Forma Information (Details) - Columbus Recycling and Encore Recycling - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Business Acquisition [Line Items] | ||
Revenues | $ 3,566,000 | $ 2,989,000 |
Net income | 184,500 | 179,000 |
Net income attributable to SSI shareholders | $ 181,000 | $ 174,500 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Additional Information (Details) | 12 Months Ended | ||||
Jul. 01, 2022 USD ($) | Aug. 31, 2022 USD ($) Reporting_unit | Aug. 31, 2021 USD ($) | Aug. 31, 2019 USD ($) | Aug. 31, 2020 USD ($) | |
Goodwill [Line Items] | |||||
Goodwill | $ 254,000,000 | $ 255,198,000 | $ 170,304,000 | $ 169,627,000 | |
Goodwill, acquired during period | $ 84,040,000 | ||||
Number of reporting units | Reporting_unit | 3 | ||||
Goodwill, impaired, accumulated impairment loss | $ 471,000,000 | 471,000,000 | |||
Amortization of intangible assets | 3,000,000 | 1,000,000 | $ 1,000,000 | ||
Impairments of intangible assets recognized | $ 0 | $ 0 | $ 0 | ||
Regional Metals Recycling Operation | |||||
Goodwill [Line Items] | |||||
Goodwill | 85,000,000 | ||||
Regional Metals Recycling Operation and Auto Parts Stores | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 169,000,000 | ||||
Metals Recycling | |||||
Goodwill [Line Items] | |||||
Estimated fair value of reporting unit exceeded carrying amount | 32% | ||||
WACC rate | 13.33% | ||||
Terminal growth rate | 2% | ||||
Increase in weighted average cost of capital that could have resulted in failure of quantitative impairment test | 100% | ||||
Percentage of decreased indicated headroom | 21% | ||||
Autos Reporting Units | |||||
Goodwill [Line Items] | |||||
Estimated fair value of reporting unit exceeded carrying amount | 44% | ||||
WACC rate | 12.13% | ||||
Terminal growth rate | 2% | ||||
Increase in weighted average cost of capital that could have resulted in failure of quantitative impairment test | 100% | ||||
Percentage of decreased indicated headroom | 29% |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Schedule of Gross Change in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 170,304 | $ 169,627 |
Additions | 84,040 | |
Measurement period adjustments | 1,657 | |
Foreign currency translation adjustment | (803) | 677 |
Goodwill, end of period | $ 255,198 | $ 170,304 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Schedule of Gross Change in Carrying Amount of Goodwill (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Goodwill [Line Items] | ||
Additions | $ 84,040 | |
Goodwill, impaired, accumulated impairment loss | 471,000 | $ 471,000 |
Columbus Recycling | ||
Goodwill [Line Items] | ||
Additions | 62,000 | |
Encore Recycling | ||
Goodwill [Line Items] | ||
Additions | $ 22,000 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 33,411 | $ 7,826 |
Accumulated Amortization | (7,256) | (3,846) |
Intangibles, Net | 26,155 | 3,980 |
Gross Carrying Amount, Indefinite-Lived | 1,081 | 1,081 |
Covenants not to compete | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,780 | 6,745 |
Accumulated Amortization | 4,442 | 3,846 |
Intangibles, Net | 3,338 | $ 2,899 |
Supplier Relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20,924 | |
Accumulated Amortization | 2,433 | |
Intangibles, Net | 18,491 | |
Customer Relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,626 | |
Accumulated Amortization | 381 | |
Intangibles, Net | $ 3,245 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets, Net - Schedule of Estimated Amortization Expenses (Details) $ in Thousands | Aug. 31, 2022 USD ($) |
Estimated amortization expense | |
2023 | $ 4,283 |
2024 | 4,232 |
2025 | 4,078 |
2026 | 4,078 |
2027 | 3,834 |
Thereafter | 4,569 |
Total | $ 25,074 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 5,894 | $ 6,591 |
Other debt obligations | 12,668 | 8,362 |
Total debt | 248,562 | 74,953 |
Less current maturities | (6,041) | (3,654) |
Long-term debt, net of current maturities | 242,521 | 71,299 |
Line of Credit | Secured Revolving Credit Facility | Bank of America NA And Other Lenders | ||
Debt Instrument [Line Items] | ||
Bank revolving credit facilities, interest primarily at SOFR or LIBOR plus a spread | $ 230,000 | $ 60,000 |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | |||
Aug. 22, 2022 USD ($) | Aug. 31, 2022 USD ($) | Aug. 22, 2022 CAD ($) | Aug. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||
Other debt obligations | $ 12,668,000 | $ 8,362,000 | ||
Additional debt obligations | $ 7,000,000 | |||
For Certain Obligations Workers Compensation And Performance Bonds | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 8,000,000 | 8,000,000 | ||
Other Debt Obligations | ||||
Debt Instrument [Line Items] | ||||
Debt instrument payment term | 4 years | |||
Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 800,000,000 | |||
Secured Revolving Credit Facility | Bank of America NA And Other Lenders | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 230,000,000 | $ 60,000,000 | ||
Weighted average interest rate | 3.65% | 1.75% | ||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 800,000,000 | $ 15,000,000 | ||
Debt instrument, Maturity date | Aug. 31, 2027 | |||
Debt issuance costs | $ 2,000,000 | |||
Debt issuance costs amortized to interest expense term | 5 years | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.175% | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.30% | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 1 | Secured Overnight Financing Rate (SOFR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 1.25% | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 1 | Secured Overnight Financing Rate (SOFR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 2% | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 2 | Federal Funds Effective Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 0.50% | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 2 | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 1% | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 2 | Secured Overnight Financing Rate (SOFR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 0.25% | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 2 | Secured Overnight Financing Rate (SOFR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 1% | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Swingline Loans | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 25,000,000 | |||
Senior Secured Credit Facilities, Amended Credit Agreement | Bank of America NA And Other Lenders | Multicurrency Borrowings | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700,000,000 | $ 15,000,000 | ||
Debt instrument, Maturity date | Aug. 31, 2023 | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.20% | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.50% | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Federal Funds Effective Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 0.50% | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 1 | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 1.25% | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 1 | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 3.50% | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 2 | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 1.75% | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 2 | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 0% | |||
Senior Secured Credit Facilities, Prior Credit Agreement | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 2 | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Variable rate | 2.50% |
Debt - Summary of Principal Pay
Debt - Summary of Principal Payments on Bank Revolving Credit Facilities and Other Debt Obligations (Details) $ in Thousands | Aug. 31, 2022 USD ($) |
Long-term Debt, by Maturity [Abstract] | |
2027 | $ 230,000 |
Total | 230,000 |
Other Long-term Debt, by Maturity [Abstract] | |
2023 | 4,306 |
2024 | 2,425 |
2025 | 2,466 |
2026 | 2,735 |
2027 | 736 |
Total | $ 12,668 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Environmental Liabilities (Details) $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning Balance | $ 77,128 | $ 53,464 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Current Liability, Noncurrent Liability | Current Liability, Noncurrent Liability |
Liabilities Established (Released), Net | $ 12,839 | $ 28,761 |
Payments and Other | (21,467) | (5,097) |
Ending Balance | 68,500 | 77,128 |
Current Liability | 13,031 | 24,743 |
Noncurrent Liability | $ 55,469 | $ 52,385 |
Commitments and Contingencies_2
Commitments and Contingencies - Recycling Operations - Recycling Operations (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 01, 2017 | Feb. 28, 2021 USD ($) | Apr. 30, 2020 USD ($) | Jan. 31, 2017 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | Dec. 31, 2017 Potentially_responsible_party | Jan. 30, 2017 Potentially_responsible_party Party | Aug. 31, 2007 USD ($) | |
Loss Contingencies [Line Items] | |||||||||||
Accrual for Environmental Loss Contingencies | $ 68,500 | $ 68,500 | $ 77,128 | $ 53,464 | |||||||
Liabilities Established | 12,839 | 28,761 | |||||||||
Insurance Receivable | 0 | 0 | 10,000 | ||||||||
Other Assets | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Insurance Receivable | 28,000 | 28,000 | 21,000 | ||||||||
Portland Harbor Superfund Site | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Accrual for Environmental Loss Contingencies | 6,000 | 6,000 | $ 6,000 | ||||||||
Number Of Other Potentially Responsible Parties Signing Settlement Agreement and Order on Consent | Potentially_responsible_party | 3 | ||||||||||
Number of Years for Pre-Remedial Design | 2 years | ||||||||||
Site contingency expected completion term for remedial design | 4 years | ||||||||||
Site contingency EPA estimated completion cost for remedial design | $ 4,000 | ||||||||||
Liabilities Established | $ 3,000 | 2,000 | |||||||||
Insurance Receivable | 2,000 | 2,000 | |||||||||
Number Of Potentially Responsible Parties Joining Allocation Process | Potentially_responsible_party | 100 | ||||||||||
Environmental reserve | 2,300 | 2,300 | |||||||||
Parties named in Litigation | Party | 30 | ||||||||||
Portland Harbor Superfund Site | Other Assets | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Insurance Receivable | $ 2,300 | $ 2,300 | |||||||||
Portland Harbor Superfund Site | Minimum | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Insurance Receivable | $ 3,000 | ||||||||||
Percentage of area require active clean up in remedial design phase | 100% | ||||||||||
Lower Willamette Group | Portland Harbor Superfund Site | Minimum | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Remedial Investigation and Feasibility Study Costs | $ 155,000 | ||||||||||
Potential Responsible Parties | Portland Harbor Superfund Site | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated Cost of Selected Remedy Undiscounted | $ 1,700,000 | ||||||||||
Estimated Cost of Selected Remedy Discounted | $ 1,050,000 | ||||||||||
Estimated Cost of Selected Remedy, Discount Rate | 7% | ||||||||||
Site Contingency, Estimated Construction Time Frame | 13 years | ||||||||||
Potential Responsible Parties | Portland Harbor Superfund Site | Minimum | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated Cost of Selected Remedy, Range | 50% | ||||||||||
Potential Responsible Parties | Portland Harbor Superfund Site | Maximum | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated Cost of Selected Remedy, Range | (30.00%) |
Commitments and Contingencies_3
Commitments and Contingencies - Recycling Operations - Other Legacy (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2022 | Aug. 31, 2022 | Aug. 31, 2018 | Aug. 31, 2021 | Aug. 31, 2020 | |
Loss Contingencies [Line Items] | |||||
Accrual for Environmental Loss Contingencies | $ 68,500 | $ 77,128 | $ 53,464 | ||
Environmental Remediation Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring Charges And Other Exit Related Activities | ||||
Legacy Environmental Site 1 - Remediation of Shredder Residue | |||||
Loss Contingencies [Line Items] | |||||
Accrual for Environmental Loss Contingencies | 4,000 | 4,000 | |||
Environmental remediation expense accrued in the period | $ 4,000 | ||||
Legacy Environmental Site 1 - Remediation of Shredder Residue | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, range of possible loss | 0 | ||||
Legacy Environmental Site 1 - Remediation of Shredder Residue | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, range of possible loss | 28,000 | ||||
Soil Remediation Activities | |||||
Loss Contingencies [Line Items] | |||||
Recognized for certain soil remediation activities | 6,000 | ||||
Protection of Public Water Supplies | |||||
Loss Contingencies [Line Items] | |||||
Payment to municipality | $ 11,000 | ||||
Legacy Remediation of Site Previously Owned and Operated | |||||
Loss Contingencies [Line Items] | |||||
Accrual for Environmental Loss Contingencies | 7,000 | 8,000 | |||
Environmental Matters Member | |||||
Loss Contingencies [Line Items] | |||||
Accrual for Environmental Loss Contingencies | 8,000 | $ 19,000 | |||
Metals Contamination | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement, cost of remedial action | 7,900 | ||||
Litigation settlement, amount payment other party | $ 7,600 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | $ 839,779 | $ 701,296 | |
Total other comprehensive (loss) income, net of tax | (2,535) | $ 2,317 | 1,892 |
Ending balance | 958,474 | 839,779 | |
Foreign Currency Translation Adjustments | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (31,609) | (34,184) | (35,689) |
Other comprehensive income (loss) before reclassifications | (3,070) | 2,575 | 1,505 |
Income tax (expense) benefit | 0 | 0 | |
Other comprehensive income (loss) before reclassifications, net of tax | (3,070) | 2,575 | 1,505 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Income tax benefit | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of tax | (3,070) | 2,575 | 1,505 |
Ending balance | (34,679) | (31,609) | (34,184) |
Pension Obligations, net | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (2,945) | (2,687) | (3,074) |
Other comprehensive income (loss) before reclassifications | 355 | (530) | 190 |
Income tax (expense) benefit | (80) | (120) | (42) |
Other comprehensive income (loss) before reclassifications, net of tax | 275 | (410) | 148 |
Amounts reclassified from accumulated other comprehensive loss | 336 | 196 | 309 |
Income tax benefit | (76) | (44) | (70) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 260 | 152 | 239 |
Total other comprehensive (loss) income, net of tax | 535 | (258) | 387 |
Ending balance | (2,410) | (2,945) | (2,687) |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (34,554) | (36,871) | (38,763) |
Other comprehensive income (loss) before reclassifications | (2,715) | 2,045 | 1,695 |
Income tax (expense) benefit | (80) | 120 | (42) |
Other comprehensive income (loss) before reclassifications, net of tax | (2,795) | 2,165 | 1,653 |
Amounts reclassified from accumulated other comprehensive loss | 336 | 196 | 309 |
Income tax benefit | (76) | (44) | (70) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 260 | 152 | 239 |
Total other comprehensive (loss) income, net of tax | (2,535) | 2,317 | 1,892 |
Ending balance | $ (37,089) | $ (34,554) | $ (36,871) |
Revenue - Summary of Revenues D
Revenue - Summary of Revenues Disaggregated by Major Product and Sales Destination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,758,551 | $ 3,485,815 | $ 2,758,551 | $ 1,712,343 |
Ferrous Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,914,255 | 1,557,891 | 862,490 | |
Nonferrous Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 892,444 | 684,862 | 390,298 | |
Steel Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 531,731 | 379,203 | 336,980 | |
Retail and Other Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 147,385 | 136,595 | 122,575 | |
Foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,925,235 | 1,612,744 | 910,785 | |
Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,560,580 | $ 1,145,807 | $ 801,558 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 12 Months Ended | |||||
Aug. 31, 2022 USD ($) Jointventureinterest | Aug. 31, 2021 USD ($) ExternalCustomer | Aug. 31, 2022 ExternalCustomer | Aug. 31, 2022 | Aug. 31, 2022 USD ($) | Aug. 31, 2020 ExternalCustomer | |
Revenue from Contract with Customer [Abstract] | ||||||
Number of external customer that accounted more than 10% of consolidated revenues | 1 | 0 | 0 | 0 | ||
Percentage of external customer that not accounted for consolidated revenues | 10% | |||||
Receivables from contracts with customers, net of allowance for credit losses | $ 210 | $ 230 | ||||
Percentage of receivables from contracts with customers of accounts receivable | 98% | 97% | ||||
Contract liabilities | $ 8 | $ 8 | ||||
Contract liabilities reclassified to revenue | $ 7 | $ 7 |
Revenue - Summary of Foreign Co
Revenue - Summary of Foreign Countries which Sales Exceeded 10% of Consolidated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,758,551 | $ 3,485,815 | $ 2,758,551 | $ 1,712,343 |
Geographical Concentration Risk | Turkey | Sales Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 222,141 | |||
% of Revenue | 13% | |||
Geographical Concentration Risk | Bangladesh | Sales Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 446,385 | $ 375,668 | $ 197,391 | |
% of Revenue | 13% | 14% | 12% |
Revenue - Summary of Foreign _2
Revenue - Summary of Foreign Countries which Sales Exceeded 10% of Consolidated Revenues (Parenthetical) (Details) | 12 Months Ended |
Aug. 31, 2022 | |
Geographical Concentration Risk | Sales Revenue | Maximum | |
Disaggregation of Revenue [Line Items] | |
Percentage of revenue less than threshold | 10% |
Employee Benefits - Defined Ben
Employee Benefits - Defined Benefit Pension Plan and Supplemental Executive Retirement Benefit Plan - Additional Information (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, funded (unfunded) status of plan | $ 4,000,000 | $ 4,000,000 |
Defined benefit plan, amortization of gain (loss), percent threshold | 5% | |
Defined benefit plan, fair value of plan assets | $ 16,000,000 | 21,000,000 |
Defined benefit plan, benefit obligation | 12,000,000 | $ 17,000,000 |
Defined benefit plan, expected future employer contributions, next fiscal year | $ 0 | |
Defined benefit plan, assumptions used calculating benefit obligation, discount rate | 4.40% | 2.46% |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, annual expected future benefit payments | $ 1,000,000 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, annual expected future benefit payments | 3,000,000 | |
Supplemental Employee Retirement Plan, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for plan benefits, defined benefit plan | 4,000,000 | $ 4,000,000 |
Defined benefit plan, funded (unfunded) status of plan | $ 4,000,000 | $ 5,000,000 |
Employee Benefits - Multiemploy
Employee Benefits - Multiemployer Pension Plans - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Aug. 31, 2022 USD ($) Plan | Aug. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | Oct. 01, 2029 | |
Multiemployer Plans [Line Items] | ||||
Number of multiemployer plans | Plan | 14 | |||
Multiemployer Plans, Pension | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plan, contributions by employer | $ 7 | $ 6 | $ 6 | |
Steelworkers Western Independent Shops Pension Plan | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plan, expiration date | Mar. 31, 2026 | |||
Multiemployer plan, contributions by employer | $ 4 | $ 4 | $ 3 | |
Steelworkers Western Independent Shops Pension Plan | Scenario, Forecast | ||||
Multiemployer Plans [Line Items] | ||||
Minimum valuation funded percentage | 100% | |||
Steelworkers Western Independent Shops Pension Plan | Minimum | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plan rehabilitation plan contributions as a percent of total contributions | 5% |
Employee Benefits - Defined Con
Employee Benefits - Defined Contribution Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, cost | $ 5 | $ 4 | $ 4 |
Employee Benefits - Deferred Co
Employee Benefits - Deferred Compensation Plan - Additional Information (Details) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Defined Contribution Plan Disclosure [Line Items] | ||
Deferred compensation liability | $ 1,000,000 | |
Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Deferred compensation liability | $ 1,000,000 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Cost of Qualifying Long-Lived Assets | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation cost capitalized | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Cost of Goods Sold or Selling, General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19,000,000 | $ 18,000,000 | $ 10,000,000 |
Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 12.2 | ||
Number of shares available for grant (in shares) | 2.2 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Units ("RSUs") - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit cost | $ 8 | $ 7 | $ 4 |
Restricted stock units (“RSUs”) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 160,000 | ||
Vesting percentage per year | 20% | ||
Vesting term | 5 years | ||
Shares granted, fair value | $ 8 | $ 7 | $ 7 |
Weighted average grant date fair value, granted | $ 52.32 | $ 22.26 | $ 14.88 |
Total fair value of shares vested during period | $ 15 | $ 10 | $ 6 |
Compensation cost not yet recognized | $ 10 | ||
Compensation cost not yet recognized, period for recognition | 2 years | ||
Restricted stock units (“RSUs”) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for retirement eligibility for expense to be recognized | 5 years | ||
Restricted stock units (“RSUs”) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for retirement eligibility for expense to be recognized | 2 years | ||
Restricted stock units (“RSUs”) | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares entitled to be received upon vesting | 1 | ||
Restricted stock units (“RSUs”) | key Employees Under SIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 160,312,000 | 317,760,000 | 470,917,000 |
Share-based Compensation - Summ
Share-based Compensation - Summary of RSU Activity (Details) - Restricted stock units (“RSUs”) - $ / shares | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Number of Shares: | |||
Outstanding, Beginning Balance (in shares) | 956,000 | ||
Granted (in shares) | 160,000 | ||
Vested (in shares) | (296,000) | ||
Forfeited (in shares) | (7,000) | ||
Outstanding, Ending Balance (in shares) | 813,000 | 956,000 | |
Weighted Average Grant Date Fair Value: | |||
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 20.62 | ||
Granted, Weighted Average Grant Date Fair Value | 52.32 | $ 22.26 | $ 14.88 |
Vested, Weighted Average Grant Date Fair Value | 21.33 | ||
Forfeited, Weighted Average Grant Date Fair Value | 22.38 | ||
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 26.59 | $ 20.62 |
Share-based Compensation - Perf
Share-based Compensation - Performance Share Awards - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase decrease in payouts threshold | 20% | ||
Performance Shares (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award requisite service period | 3 years | ||
Shares granted (in shares) | 153,080 | 316,649 | 337,770 |
Weighted average grant date fair value, granted | $ 54.29 | $ 22.33 | $ 21.32 |
Share vested | $ 14 | $ 7 | $ 10 |
Compensation cost not yet recognized | $ 10 | ||
Compensation cost not yet recognized, period for recognition | 2 years | ||
Performance Shares (PSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based awards award payouts threshold | 50% | 50% | 50% |
Performance Shares (PSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based awards award payouts threshold | 200% | 200% | 200% |
Total Shareholder Return (TSR) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 76,540 | 157,791 | 165,834 |
Return on Capital Employed Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 76,540 | 158,858 | 171,936 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Fair Value using Monte-Carlo Simulation Model Utilizing Several Key Assumptions (Details) - Total Shareholder Return (TSR) | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected share price volatility | 51.60% | 48.50% | 38.90% |
Risk-free rate of return | 0.61% | 0.23% | 1.58% |
Peer Group | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected share price volatility | 58.50% | 54.90% | 44.50% |
Expected correlation | 46% | 44.50% | 34.30% |
Share-based Compensation - Su_3
Share-based Compensation - Summary of Performance-based Awards Activity (Details) - Performance Shares (PSUs) - $ / shares | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Number of Shares: | |||
Outstanding, Beginning Balance (in shares) | 873,000 | ||
Granted (in shares) | 153,080 | 316,649 | 337,770 |
Performance achievement (in shares) | 61,000 | ||
Vested (in shares) | (263,000) | ||
Forfeited (in shares) | (42,000) | ||
Outstanding, Ending Balance (in shares) | 782,000 | 873,000 | |
Weighted Average Grant Date Fair Value: | |||
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 23.62 | ||
Granted, Weighted Average Grant Date Fair Value | 54.29 | $ 22.33 | $ 21.32 |
Performance achievement, Weighted Average Grant Date Fair Value | 29.17 | ||
Vested, Weighted Average Grant Date Fair Value | 28.66 | ||
Forfeited, Weighted Average Grant Date Fair Value | 27.44 | ||
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 28.16 | $ 23.62 |
Share-based Compensation - Defe
Share-based Compensation - Deferred Stock Units - Additional Information (Details) - Deferred stock units (?DSUs?) - Non-employee Directors - shares | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 20,876,000 | 28,042,000 | 41,592,000 |
Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, number of shares per stock unit | 1 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income (Loss) from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Income from continuing operations before income taxes [Abstract] | |||
United States | $ 204,150 | $ 195,037 | $ (5,649) |
Foreign | 12,526 | 12,952 | 3,710 |
Income (loss) from continuing operations before income taxes | $ 216,676 | $ 207,989 | $ (1,939) |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income Tax Expense (Benefit) from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Current: | |||
Federal | $ 18,114 | $ 27,244 | $ (15,778) |
State | 1,392 | 3,811 | 329 |
Foreign | 39 | (4) | 519 |
Total current tax expense (benefit) | 19,545 | 31,051 | (14,930) |
Deferred: | |||
Federal | 21,771 | 6,939 | 12,292 |
State | 780 | (547) | 1,338 |
Foreign | 2,501 | 492 | 1,466 |
Total deferred tax expense | 25,052 | 6,884 | 15,096 |
Total income tax expense | $ (44,597) | $ (37,935) | $ (166) |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Difference Between the Federal Statutory Rate and the Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Reconciliation of the difference between the federal statutory rate and the Company's effective tax rate [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
State taxes, net of credits | 1.60% | 1.40% | (57.90%) |
Foreign income taxed at different rates | (0.50%) | (11.60%) | |
Valuation allowance on deferred tax assets | 0.40% | (1.00%) | (24.50%) |
Federal rate change | 0.40% | 71.90% | |
Non-deductible officers’ compensation | 2.50% | 1.20% | (46.90%) |
Other non-deductible expenses | 0.30% | 0.40% | (66.00%) |
Noncontrolling interests | (0.30%) | (0.50%) | 21.10% |
Research and development credits | (0.90%) | (1.50%) | 99.30% |
Tax return to provision adjustment | (2.40%) | 89.20% | |
Unrecognized tax benefits | 1.20% | 0.90% | (97.30%) |
Interest income | (0.10%) | (0.10%) | 9% |
Excess tax benefit from stock-based compensation | (1.60%) | (0.20%) | 3% |
Foreign derived intangible income | (1.00%) | (2.50%) | |
Other | (0.10%) | (0.80%) | (18.90%) |
Effective tax rate | 20.60% | 18.20% | (8.60%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 16, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Income Taxes [Line Items] | ||||
Effective tax rate | 20.60% | 18.20% | (8.60%) | |
Federal statutory rate | 21% | 21% | 21% | |
Income tax rate, pre-tax loss from continuing operations | $ (216,676) | $ (207,989) | $ 1,939 | |
Corporate alternative minimum tax rate | 15% | |||
Percentage of excise tax on corporate share repurchases | 1% | |||
Valuation allowance, deferred tax asset, increase (decrease), amount | (2,000) | |||
Foreign Country | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 3,100 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expirations period | 2022 | |||
Income tax examination, year under examination | 2014 | |||
Minimum | Foreign Country | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expirations period | 2033 | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expirations period | 2036 | |||
Income tax examination, year under examination | 2021 | |||
Maximum | Foreign Country | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expirations period | 2042 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Deferred tax assets: | ||
Operating lease liabilities | $ 17,901 | $ 20,645 |
Amortizable goodwill and other intangibles | 9,914 | 13,490 |
Employee benefit accruals | 12,241 | 14,007 |
Net operating loss carryforwards | 7,499 | 7,642 |
Environmental liabilities | 9,742 | 10,508 |
Other contingencies | 5,199 | 5,044 |
State credit carryforwards | 7,212 | 7,216 |
Inventory valuation methods | 2,749 | 2,129 |
Other | 3,687 | 2,459 |
Valuation allowances | (15,342) | (14,522) |
Total deferred tax assets | 60,802 | 68,618 |
Deferred tax liabilities: | ||
Accelerated depreciation and other basis differences | 60,539 | 43,304 |
Operating lease right-of-use assets | 17,353 | 19,895 |
Investment in operating partnerships | 15,553 | 12,410 |
Prepaid expense acceleration and other | 6,087 | 6,041 |
Total deferred tax liabilities | 99,532 | 81,650 |
Net deferred tax liabilities | $ (38,730) | $ (13,032) |
Income Taxes - Summary of Reser
Income Taxes - Summary of Reserve for Unrecognized Tax Benefits, Excluding Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, as of the beginning of the year | $ 8,320 | $ 7,456 | $ 5,410 |
Additions for tax positions of prior years | 1,055 | 1,368 | |
Reductions for tax positions of prior years | (574) | ||
Additions for tax positions of the current year | 974 | 1,486 | 852 |
Reductions for lapse of statutes | (23) | (48) | (174) |
Unrecognized tax benefits, as of the end of the year | $ 10,326 | $ 8,320 | $ 7,456 |
Restructuring Charges and Oth_2
Restructuring Charges and Other Exit-Related Activities - Additional Information (Details) $ in Millions | 12 Months Ended |
Aug. 31, 2020 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Severance costs | $ 2 |
Exit-related costs | 1 |
Professional services costs | $ 6 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Income (loss) from continuing operations | $ 172,079 | $ 170,054 | $ (2,105) |
Net income attributable to noncontrolling interests | (3,196) | (4,863) | (1,945) |
Income (loss) from continuing operations attributable to SSI shareholders | 168,883 | 165,191 | (4,050) |
Loss from discontinued operations, net of tax | (83) | (79) | (95) |
Net income (loss) attributable to SSI shareholders | $ 168,800 | $ 165,112 | $ (4,145) |
Computation of shares: | |||
Weighted average common shares outstanding, basic | 28,084 | 27,982 | 27,672 |
Incremental common shares attributable to dilutive performance share, RSU and DSU awards | 1,445 | 1,211 | |
Weighted average common shares outstanding, diluted | 29,529 | 29,193 | 27,672 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from calculation of diluted net income loss per share, amount (in shares) | 113,005 | 0 | 629,223 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Purchases from joint ventures | $ 26 | $ 20 | $ 11 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Allowance for credit losses / doubtful accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,566 | $ 1,593 | $ 1,569 |
Charged to Cost and Expense | 40 | 0 | 66 |
Deductions | (56) | (27) | (42) |
Balance at End of Period | 1,550 | 1,566 | 1,593 |
Deferred tax valuation allowance | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 14,522 | 16,933 | 16,436 |
Charged to Cost and Expense | 2,326 | 482 | 1,293 |
Deductions | (1,506) | (2,893) | (796) |
Balance at End of Period | $ 15,342 | $ 14,522 | $ 16,933 |