Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Oct. 20, 2020 | Feb. 29, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Aug. 31, 2020 | ||
Entity Registrant Name | SCHNITZER STEEL INDUSTRIES, INC. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
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 | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 429,207,543 | ||
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, $1.00 par value | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement for the January 2021 Annual Meeting of Shareholders are incorporated by reference into Part III of this report. | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 26,907,823 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 200,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 17,887 | $ 12,377 |
Accounts receivable, net | 139,147 | 145,617 |
Inventories | 157,269 | 187,320 |
Refundable income taxes | 18,253 | 5,867 |
Prepaid expenses and other current assets | 30,075 | 115,107 |
Total current assets | 362,631 | 466,288 |
Property, plant and equipment, net | 487,004 | 456,400 |
Operating lease right-of-use assets | 140,584 | |
Investments in joint ventures | 10,057 | 10,276 |
Goodwill | 169,627 | 169,237 |
Intangibles, net | 4,585 | 4,482 |
Deferred income taxes | 27,152 | 28,850 |
Other assets | 28,287 | 25,213 |
Total assets | 1,229,927 | 1,160,746 |
Current liabilities: | ||
Short-term borrowings | 2,184 | 1,321 |
Accounts payable | 106,676 | 110,297 |
Accrued payroll and related liabilities | 41,436 | 27,547 |
Environmental liabilities | 6,302 | 6,030 |
Operating lease liabilities | 19,760 | |
Other accrued liabilities | 47,306 | 123,035 |
Total current liabilities | 223,664 | 268,230 |
Deferred income taxes | 38,292 | 25,466 |
Long-term debt, net of current maturities | 102,235 | 103,775 |
Environmental liabilities, net of current portion | 47,162 | 45,769 |
Operating lease liabilities, net of current maturities | 125,001 | |
Other long-term liabilities | 13,137 | 16,210 |
Total liabilities | 549,491 | 459,450 |
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 | 36,616 | 33,700 |
Retained earnings | 649,863 | 675,363 |
Accumulated other comprehensive loss | (36,871) | (38,763) |
Total SSI shareholders’ equity | 676,707 | 696,964 |
Noncontrolling interests | 3,729 | 4,332 |
Total equity | 680,436 | 701,296 |
Total liabilities and equity | 1,229,927 | 1,160,746 |
Class A Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | 26,899 | 26,464 |
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, 2020 | Aug. 31, 2019 |
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 | 26,899,000 | 26,464,000 |
Common stock, shares outstanding | 26,899,000 | 26,464,000 |
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, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 1,712,343 | $ 2,132,781 | $ 2,364,715 |
Operating expense: | |||
Cost of goods sold | 1,503,725 | 1,858,535 | 2,010,485 |
Selling, general and administrative | 187,876 | 191,405 | 208,877 |
(Income) from joint ventures | (834) | (1,452) | (1,953) |
Asset impairment charges (recoveries), net | 5,729 | 63 | (1,021) |
Restructuring charges and other exit-related activities | 8,993 | 365 | (661) |
Operating income | 6,854 | 83,865 | 148,988 |
Interest expense | (8,669) | (8,266) | (8,983) |
Other (expense) income, net | (124) | 641 | 1,848 |
(Loss) income from continuing operations before income taxes | (1,939) | 76,240 | 141,853 |
Income tax (expense) benefit | (166) | (17,670) | 17,590 |
(Loss) income from continuing operations | (2,105) | 58,570 | 159,443 |
(Loss) income from discontinued operations, net of tax | (95) | (248) | 346 |
Net (loss) income | (2,200) | 58,322 | 159,789 |
Net income attributable to noncontrolling interests | (1,945) | (1,977) | (3,338) |
Net (loss) income attributable to SSI shareholders | $ (4,145) | $ 56,345 | $ 156,451 |
Net (loss) income per share attributable to SSI shareholders Basic: | |||
(Loss) income per share from continuing operations | $ (0.15) | $ 2.06 | $ 5.65 |
Net (loss) income per share | (0.15) | 2.05 | 5.66 |
Net (loss) income per share attributable to SSI shareholders Diluted: | |||
(Loss) income per share from continuing operations | (0.15) | 2.01 | 5.46 |
Net (loss) income per share | $ (0.15) | $ 2 | $ 5.47 |
Weighted average number of common shares: | |||
Basic | 27,672 | 27,527 | 27,645 |
Diluted | 27,672 | 28,222 | 28,589 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) income | $ (2,200) | $ 58,322 | $ 159,789 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 1,505 | (1,560) | (2,301) |
Pension obligations, net | 387 | 34 | 357 |
Total other comprehensive income (loss), net of tax | 1,892 | (1,526) | (1,944) |
Comprehensive (loss) income | (308) | 56,796 | 157,845 |
Less comprehensive income attributable to noncontrolling interests | (1,945) | (1,977) | (3,338) |
Comprehensive (loss) income attributable to SSI shareholders | $ (2,253) | $ 54,819 | $ 154,507 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total SSI Shareholders’ Equity | Noncontrolling Interests | |
Beginning balance at Aug. 31, 2017 | $ 537,493 | $ 26,859 | $ 200 | $ 38,050 | $ 503,770 | $ (35,293) | $ 533,586 | $ 3,907 | |||
Beginning balance (in shares) at Aug. 31, 2017 | 26,859 | 200 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | 159,789 | 156,451 | 156,451 | 3,338 | |||||||
Other comprehensive income (loss), net of tax | (1,944) | (1,944) | (1,944) | ||||||||
Reclassification of stranded tax effects of the Tax Act | [1] | 517 | 517 | 517 | |||||||
Distributions to noncontrolling interests | (2,796) | (2,796) | |||||||||
Purchase of noncontrolling interest | (600) | (183) | (183) | (417) | |||||||
Share repurchases | (17,361) | $ (516) | (16,845) | (17,361) | |||||||
Share repurchase (in shares) | (516) | ||||||||||
Restricted stock withheld for taxes | (3,082) | $ (103) | (2,979) | (3,082) | |||||||
Restricted stock withheld for taxes (in shares) | (103) | ||||||||||
Issuance of restricted stock | $ 262 | (262) | |||||||||
Issuance of restricted stock (in shares) | 262 | ||||||||||
Share-based compensation cost | 18,965 | 18,965 | 18,965 | ||||||||
Dividends | (20,871) | (20,871) | (20,871) | ||||||||
Ending balance at Aug. 31, 2018 | 670,110 | $ 26,502 | $ 200 | 36,929 | 639,684 | (37,237) | 666,078 | 4,032 | |||
Ending balance (in shares) at Aug. 31, 2018 | 26,502 | 200 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | 58,322 | 56,345 | 56,345 | 1,977 | |||||||
Other comprehensive income (loss), net of tax | (1,526) | (1,526) | (1,526) | ||||||||
Distributions to noncontrolling interests | (1,677) | (1,677) | |||||||||
Share repurchases | (13,083) | $ (527) | (12,556) | (13,083) | |||||||
Share repurchase (in shares) | (527) | ||||||||||
Restricted stock withheld for taxes | (7,484) | $ (278) | (7,206) | (7,484) | |||||||
Restricted stock withheld for taxes (in shares) | (278) | ||||||||||
Issuance of restricted stock | $ 767 | (767) | |||||||||
Issuance of restricted stock (in shares) | 767 | ||||||||||
Share-based compensation cost | 17,300 | 17,300 | 17,300 | ||||||||
Dividends | (20,666) | (20,666) | (20,666) | ||||||||
Ending balance at Aug. 31, 2019 | 701,296 | $ 26,464 | $ 200 | 33,700 | 675,363 | (38,763) | 696,964 | 4,332 | |||
Ending balance (in shares) at Aug. 31, 2019 | 26,464 | 200 | 26,464 | 200 | |||||||
Cumulative effect on adoption of new accounting guidance for leases, net of tax (Accounting Standards Update 2016-02) at Aug. 31, 2019 | (463) | (463) | (463) | ||||||||
Adjusted beginning balance at Aug. 31, 2019 | 700,833 | $ 26,464 | $ 200 | 33,700 | 674,900 | (38,763) | 696,501 | 4,332 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | (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 | (20,892) | (20,892) | (20,892) | ||||||||
Ending balance at Aug. 31, 2020 | $ 680,436 | $ 26,899 | $ 200 | $ 36,616 | $ 649,863 | $ (36,871) | $ 676,707 | $ 3,729 | |||
Ending balance (in shares) at Aug. 31, 2020 | 26,899 | 200 | 26,899 | 200 | |||||||
[1] | Refers to the Tax Cuts and Jobs Act signed and enacted into law December 22, 2017. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
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, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (2,200) | $ 58,322 | $ 159,789 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | |||
Asset impairment charges (recoveries), net | 5,729 | 63 | (1,021) |
Exit-related asset impairments (gains) | 971 | 23 | (1,000) |
Depreciation and amortization | 58,173 | 53,336 | 49,672 |
Inventory write-downs | 775 | 38 | |
Deferred income taxes | 15,096 | 14,613 | (37,995) |
Undistributed equity in earnings of joint ventures | (834) | (1,452) | (1,953) |
Share-based compensation expense | 10,033 | 17,300 | 18,965 |
Loss (gain) on the disposal of assets, net | 530 | (1,545) | 56 |
Unrealized foreign exchange (gain) loss, net | (67) | 148 | (104) |
Bad debt expense, net | 66 | 74 | 323 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | (2,252) | 9,478 | (44,941) |
Inventories | 39,226 | 33,466 | (24,280) |
Income taxes | (15,433) | (1,158) | (1,755) |
Prepaid expenses and other current assets | 63 | (859) | (109) |
Other long-term assets | (216) | 1,167 | (1,620) |
Operating lease assets and liabilities | 334 | ||
Accounts payable | (7,971) | (17,068) | 26,049 |
Accrued payroll and related liabilities | 13,465 | (19,117) | 4,889 |
Other accrued liabilities | 7,148 | (3,560) | 6,066 |
Environmental liabilities | 1,602 | (2,476) | 3,053 |
Other long-term liabilities | 134 | 518 | 4,404 |
Distributed equity in earnings of joint ventures | 1,000 | 2,692 | 1,150 |
Net cash provided by operating activities | 124,597 | 144,740 | 159,676 |
Cash flows from investing activities: | |||
Capital expenditures | (82,005) | (94,613) | (77,626) |
Acquisitions | (1,553) | (2,300) | |
Joint venture receipts, net | 641 | 11 | |
Proceeds from sale of assets | 1,290 | 4,070 | 6,517 |
Deposit on land option | 1,860 | 1,890 | |
Net cash used in investing activities | (78,855) | (89,565) | (73,398) |
Cash flows from financing activities: | |||
Borrowings from long-term debt | 690,162 | 431,048 | 515,480 |
Repayments of long-term debt | (698,492) | (435,353) | (556,456) |
Payment of debt issuance costs | (1,983) | (102) | (2,590) |
Repurchase of Class A common stock | (914) | (13,083) | (17,361) |
Taxes paid related to net share settlement of share-based payment awards | (5,845) | (7,484) | (3,082) |
Distributions to noncontrolling interests | (2,548) | (1,677) | (2,796) |
Purchase of noncontrolling interest | (600) | ||
Dividends paid | (20,884) | (20,615) | (20,736) |
Net cash used in financing activities | (40,504) | (47,266) | (88,141) |
Effect of exchange rate changes on cash | 272 | (255) | (701) |
Net increase (decrease) in cash and cash equivalents | 5,510 | 7,654 | (2,564) |
Cash and cash equivalents as of beginning of year | 12,377 | 4,723 | 7,287 |
Cash and cash equivalents as of end of year | 17,887 | 12,377 | 4,723 |
Cash paid during the year for: | |||
Interest | 5,503 | 6,191 | 8,113 |
Income taxes, net | 478 | 3,527 | 17,203 |
Schedule of noncash investing and financing transactions: | |||
Purchases of property, plant and equipment included in liabilities | $ 27,319 | $ 17,191 | $ 18,768 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2020 | |
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 scrap 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’s internal organizational and reporting structure includes two operating and reportable segments: the Auto and Metals Recycling (“AMR”) business and the Cascade Steel and Scrap (“CSS”) business. AMR acquires and recycles ferrous and nonferrous scrap metal for sale to foreign and domestic metal producers, processors and brokers, and procures salvaged vehicles and sells serviceable used auto parts from these vehicles through a network of self-service auto parts stores. These auto parts stores also supply the Company’s shredding facilities with auto bodies that are processed into saleable recycled scrap metal. CSS operates a steel mini-mill that produces a range of finished steel long products using ferrous recycled scrap metal and other raw materials. CSS’s steel mill obtains substantially all of its scrap metal raw material requirements from its integrated metals recycling and joint venture operations. CSS’s metals recycling operations also sell recycled metal to external customers primarily in export markets. Refer to Note 18 – Segment Information for financial information on the Company’s reportable segments. As of August 31, 2020, all of the Company’s facilities were located in the United States (“U.S.”) and its territories and Canada. In April 2020, the Company announced its intention to modify its internal organizational and reporting structure to a functionally based, integrated model. The Company will consolidate its operations, sales, services and other functional capabilities at an enterprise level. The Company expects to complete this transition in the first quarter of fiscal 2021 resulting in a single operating and reportable segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Principles of Consolidation 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. Accounting Changes As of the beginning of the first quarter of fiscal 2020, the Company adopted an accounting standards update, initially issued in February 2016, 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 update supersedes the previous lease accounting standard. 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 not material. 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. The Company elected a package of practical expedients permitted under the transition guidance within the new lease accounting standard, which among other things, permit carrying forward the historical lease classification. The Company also elected the practical expedient exempting short-term leases from balance sheet recognition, whereby payments for such leases are recognized in the income statement on a straight-line basis over the lease term. In addition, the Company elected the practical expedient to not separate lease and non-lease components, which the Company elected to apply to all classes of underlying assets. Adoption of the new standard resulted in recognition of $126 million and $128 million of operating lease right-of-use assets and liabilities, respectively, as of September 1, 2019, which are presented as separate line items on the balance sheet. Operating lease right-of-use assets are considered long-lived assets subject to existing long-lived asset impairment guidance. Adoption also resulted in the reclassification of the Company’s capital lease assets and obligations as finance lease right-of-use assets and liabilities as of September 1, 2019, with such reclassification having no impact on the carrying amounts or financial statement line items within which the leases are reported. See Note 5 - Leases for the disclosures required under the new standard. As of the beginning of the first quarter of fiscal 2019, the Company adopted an accounting standards update initially issued in May 2014 that clarifies the principles for recognizing revenue from contracts with customers. The Company adopted the accounting standard using the modified retrospective approach and recorded no cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2018. The Company identified certain scrap purchase and sale arrangements for which it recognized revenue for the gross amount of consideration it expected to be entitled to from the customer (as principal) under the previous revenue guidance, but for which under the new revenue standard it recognizes revenue as the net amount of consideration that it expects to retain after paying the scrap metal supplier (as agent). The foregoing change in the classification of the cost of scrap metal purchased under such arrangements has the effect of reducing the amount of revenue and cost of goods sold reported in the financial statements, while having no impact on net income. If the Company had continued using the accounting guidance in effect before the adoption of the new revenue accounting standard, its consolidated revenues for fiscal 2019 would have been higher by approximately $28 million, or 1%, and its consolidated cost of goods sold would have been higher by the same amount. No other line items in the consolidated financial statements were materially impacted by adoption of the new requirements. Fiscal 2018 amounts and disclosures continue to be reported in accordance with guidance in effect prior to the date of adoption. See Note 11 - Revenue 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 $20 million 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 doubtful accounts, 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 metal sales, nonferrous metal sales and finished steel sales to domestic customers 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 credit insurance is in place. In cases where management is aware of circumstances that may impair a customer’s ability to meet its financial obligations, management records a specific allowance against amounts due and reduces the receivable to the amount the Company believes will be collected. For all other customers, the Company maintains an allowance that considers the total receivables outstanding, historical collection rates and economic trends. Accounts are written off when all efforts to collect have been exhausted. The allowance for doubtful accounts was $2 million as of 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 $9 million, $15 million 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 yard costs into inventory. The Company allocates material and production costs to joint products using the gross margin method. AMR 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. CSS 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 yard 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. 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 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 AMR 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. The Company used the incremental borrowing rate to recognize all operating lease right-of-use assets and liabilities as of the new lease accounting standard application date. 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, or with respect to the Company’s transition to the new lease accounting standard the index or rate at the application date. 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. 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 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, 2020, the useful lives used for depreciation and amortization were as follows: Useful Life (in years) Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Office equipment and other software licenses 3 to 10 Enterprise Resource Planning (“ERP”) systems 6 to 17 Prepaid Expenses The Company’s prepaid expenses, reported within prepaid expenses and other current assets in the Consolidated Balance Sheets, totaled as of August 31, 2020 and 2019, 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 retirement plans, consist primarily of spare parts, an equity investment, receivables from insurers, debt issuance costs, capitalized implementation costs for cloud computing arrangements, and notes and other contractual receivables. Other The Company invested $6 million in the equity of a privately-held waste and recycling entity in fiscal 2017. The equity investment does not have a readily determinable fair value and, therefore, is carried at cost and adjusted for impairments and observable price changes. The investment is presented as part of the AMR reportable segment and reported within other assets in the Consolidated Balance Sheets. The carrying value of the investment was . The Company has not recorded any impairments or upward or downward adjustments to the carrying value of the investment since its acquisition. Receivables from insurers represent the portion of insured losses expected to be recovered from the Company’s insurance carriers. 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 $5 million and $89 million as of August 31, 2020 and 2019, respectively, with the decrease in fiscal 2020 resulting primarily from full payment by the Company’s insurers of settlements for lawsuits arising from a 2016 motor vehicle collision. See “Contingencies – Other” in Note 9 - Commitments and Contingencies for further discussion of this matter. Debt issuance costs consist primarily of costs incurred by the Company to enter into 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. 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 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. Notes and other contractual receivables consist primarily of advances to entities in the business of extracting scrap metal through demolition and other activities, as well as receivables from counterparties to sales of equipment assets and to legal settlements. 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. Once a note or other contractual receivable has been identified as impaired, it is measured based on the present value of payments expected to be received, discounted at the receivable’s contractual interest rate, or for arrangements that are solely dependent on collateral for repayment, the estimated fair value of the collateral less estimated costs to sell. If the carrying value of the receivable exceeds its recoverable amount, an impairment is recorded for the difference. 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 reported within AMR, an asset group generally consists of the regional shredding and export operation along with surrounding feeder yards. For regions with no shredding and export operations, each metals recycling yard is an asset group. For the Company’s auto parts operations, generally each auto parts store is an asset group. The combined steel manufacturing and metals recycling operations within CSS are a single 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 (recoveries), net and (2) restructuring charges and other exit-related activities if related to a site closure. During fiscal 2020, the Company reported $6 million of such items within asset impairment charges (recoveries), 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, each in the AMR reportable segment Investments in Joint Ventures As of August 31, 2020, the Company had two 50%-owned joint venture interests which were accounted for under the equity method of accounting. One of the joint venture interests is presented as part of AMR operations, and one interest is presented as part of CSS operations. The joint venture within CSS sells recycled scrap metal to other operations within CSS 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, 2020, the Company’s investments in equity method joint ventures have generated $8 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. During fiscal 2018, the Company declassified two of its 50% joint venture interests from equity method classification as a result of the agreed-upon dissolution of the joint venture entities. The joint venture interests had previously been presented as part of AMR operations. See Note 17 - 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 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, 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 not 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 7 - Goodwill and Other Intangible Assets, net for further detail. 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. The Company acquired certain assets of an auto recycling business in northern California in fiscal 2019 and certain assets of a metals recycling business in Columbus, Georgia in fiscal 2018. These acquisitions were not material to the Company’s financial position or results of operations. Pro forma operating results for these acquisitions are not presented, since the aggregate results would not be significantly different than reported results. There were no business acquisitions in fiscal 2020. See Note 7 - Goodwill and Other Intangible Assets, net for further detail. Restructuring Charges 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 of asset impairments in connection with closure of certain operations and sites, net of gains on exit-related disposals. 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 $8 million $4 million 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. 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 when expenditures are made for which liabilities were established. Legal 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 t |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 3 - Recent Accounting Pronouncements The Company does not expect its adoption in the future of any recently issued accounting pronouncements will have a material impact on its consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2020 | |
Inventory Net [Abstract] | |
Inventories | Note 4 - Inventories Inventories consisted of the following as of August 31 (in thousands): 2020 2019 Processed and unprocessed scrap metal $ 63,058 $ 81,313 Semi-finished goods 6,909 8,712 Finished goods 44,476 53,796 Supplies 42,826 43,499 Inventories $ 157,269 $ 187,320 |
Leases
Leases | 12 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 5 - Leases The Company’s operating leases for real property underlying its auto parts stores, metals recycling facilities, and administrative offices generally have non-cancellable lease terms of 5 to 10 years, and the significant majority, but not all, 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 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 fiscal 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 fiscal 2020 is presented within cost of goods sold in the Consolidated Statements of Operations. Rent expense was $27 million for each of fiscal 2019 and 2018. Finance lease-related assets and liabilities consisted of the following (in thousands): Balance Sheet Classification August 31, 2020 Assets: Finance lease right-of-use assets (1) Property, plant and equipment, net $ 6,274 Liabilities: Finance lease liabilities - current Short-term borrowings $ 1,341 Finance lease liabilities - non-current Long-term debt, net of current maturities 6,167 Total finance lease liabilities $ 7,508 (1) Presented 2020 The weighted average remaining lease terms and weighted average discount rates for the Company’s leases were as follows: August 31, 2020 Weighted Average Remaining Lease Term (Years) Weighted Average Discount Rate Operating leases 10.2 3.37 % Finance leases 6.0 8.22 % Maturities of lease liabilities by fiscal year as of August 31, 2020 Year Ending August 31, Finance Leases Operating Leases 2021 $ 1,837 $ 24,223 2022 1,768 23,292 2023 1,694 22,810 2024 1,410 18,619 2025 656 13,212 Thereafter 1,778 72,064 Total lease payments 9,143 174,220 Less amounts representing interest (1,635 ) (29,459 ) Total lease liabilities 7,508 144,761 Less current maturities (1,341 ) (19,760 ) Lease liabilities, net of current maturities $ 6,167 $ 125,001 Supplemental cash flow information and non-cash activity related to leases are as follows (in thousands): Fiscal 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 22,225 Operating cash flows for finance leases $ 628 Financing cash flows for finance leases $ 1,336 Lease liabilities arising from obtaining right-of-use assets (1) Operating leases $ 34,586 Finance leases $ 1,230 (1) Amounts As a result of adopting the new lease accounting guidance on September 1, 2019 using the modified retrospective transition method, the Company is required to present future minimum lease commitments for capital leases and operating leases that were previously disclosed in the Company’s 2019 Annual Report on Form 10-K and accounted for under previous lease guidance. Principal payments on capital lease obligations during the next five fiscal years and thereafter as of August 31, 2019 are as follows (in thousands): Year Ending August 31, Capital Lease Obligations 2020 $ 1,917 2021 1,799 2022 1,751 2023 1,622 2024 1,346 Thereafter 1,694 Total 10,129 Amounts representing interest (2,355 ) Total less interest $ 7,774 The table below sets forth the Company’s future minimum obligations under non-cancellable operating leases as of August 31, 2019 (in thousands): Year Ending August 31, Operating Leases 2020 $ 21,286 2021 15,301 2022 12,488 2023 10,419 2024 5,035 Thereafter 16,095 Total $ 80,624 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Aug. 31, 2020 | |
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): 2020 2019 Machinery and equipment $ 746,845 $ 697,746 Land and improvements 295,575 283,348 Buildings and leasehold improvements 138,380 112,244 Office equipment and other software licenses 44,103 43,960 ERP systems 17,760 17,760 Construction in progress 55,964 67,375 Property, plant and equipment, gross 1,298,627 1,222,433 Less accumulated depreciation (811,623 ) (766,033 ) Property, plant and equipment, net $ 487,004 $ 456,400 Depreciation expense for property, plant and equipment, which includes amortization expense for finance lease right-of-use assets $57 million |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Aug. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Note 7 - Goodwill and Other Intangible Assets, net Acquisition of Goodwill In the second quarter of fiscal 2019, the Company acquired certain assets of an auto recycling business in northern California for $2 million. The acquisition qualified as a business combination under the accounting guidance and resulted in the recognition of $2 million of goodwill during the second quarter of fiscal 2019. The Company allocated the acquired goodwill to the reporting unit within the AMR operating segment which carries nearly all of the Company’s goodwill. Goodwill Impairment Test 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 2020, the Company performed the annual goodwill impairment test as of July 1, 2020. As of the testing date, the balance of the Company’s goodwill was $169 million, and all but $1 million of such balance was carried by a single reporting unit within AMR. The Company had last performed the quantitative impairment test of goodwill carried by this reporting unit in the second quarter of fiscal 2016 using a measurement date of February 1, 2016. Based on the changes in market conditions related to the general economy and the metals recycling industry and the increase in the carrying amount of the reporting unit since the last quantitative impairment test, the Company elected not to perform the qualitative assessment for the reporting unit and, instead, proceeded directly to the quantitative impairment test. The quantitative impairment test entails estimating the fair value of the reporting unit and comparing it to the reporting unit’s carrying amount. The Company records the amount of goodwill impairment as the excess of the 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 reporting unit within AMR carrying $168 million of goodwill as of July 1, 2020, 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 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, 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 unit’s valuation, 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 reporting unit within AMR subject to the quantitative impairment test, the estimated fair value of the reporting unit exceeded its carrying amount by approximately 29% as of July 1, 2020. The projections used in the income approach for the reporting unit took into consideration the impact of 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 current levels over a multi-year period. The WACC used in the income approach valuation for the reporting unit was % , and t he terminal growth rate used was %. Assuming all other components of the fair value estimate were held constant, an increase in the WACC of 228 basis points or more or weaker than anticipated improvements in operating margins could have resulted in a failure of the quantitative impairment test for the reporting unit . 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, 2020) 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, 2020. The gross change in the carrying amount of goodwill for the years ended August 31, 2020 and 2019 was as follows (in thousands): Goodwill Balance as of September 1, 2018 $ 168,065 Acquisition 1,575 Foreign currency translation adjustment (403 ) Balance as of August 31, 2019 169,237 Foreign currency translation adjustment 390 Balance as of August 31, 2020 $ 169,627 Accumulated goodwill impairment charges were $471 million as Other Intangible Assets, net The following table presents the Company’s other intangible assets as of August 31 (in thousands): 2020 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Covenants not to compete $ 7,032 $ (3,528 ) $ 3,504 $ 5,746 $ (2,862 ) $ 2,884 Other intangible assets subject to amortization (1) — — — 771 (254 ) 517 Indefinite-lived intangibles (2) 1,081 — 1,081 1,081 — 1,081 Total $ 8,113 $ (3,528 ) $ 4,585 $ 7,598 $ (3,116 ) $ 4,482 (1) Other intangible assets subject to amortization as of August 31, 2019 related to leasehold interests and were reclassified to operating lease right-of-use assets on adoption of the new lease accounting guidance as of September 1, 2019. (2) Indefinite-lived intangibles include trade names, permits and licenses. Total intangible asset amortization expense was $ 1 million recognized for the 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 Amortization Expense 2021 $ 763 2022 763 2023 458 2024 409 2025 249 Thereafter 862 Total $ 3,504 |
Debt
Debt | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 - Debt Debt consisted of the following as of August 31 (in thousands): 2020 2019 Bank revolving credit facilities, interest primarily at LIBOR plus a spread $ 90,000 $ 96,835 Finance lease liabilities (1) 7,508 7,774 Other debt obligations 6,911 487 Total debt 104,419 105,096 Less current maturities (2,184 ) (1,321 ) Debt, net of current maturities $ 102,235 $ 103,775 (1) Prior to adoption of the new lease accounting guidance as of September 1, 2019, the Company’s finance lease liabilities were classified as capital lease obligations. The Company’s senior secured revolving credit facilities, which provide for revolving loans of $700 million and C$15 million, mature in August 2023 On June 30, 2020, in large part due to the uncertainties resulting from the effects of Coronavirus Disease (“COVID-19”), the As of August 31, 2020 and 2019, borrowings outstanding under the credit facilities were $90 million 4.59% The Company’s credit agreement contains certain customary covenants, including covenants that limit the ability of the Company and its subsidiaries to enter into certain types of transactions. The financial covenants under the credit agreement include (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, (b) a consolidated leverage ratio, defined as consolidated funded indebtedness divided by the sum of consolidated net worth and consolidated funded indebtedness, and (c) a consolidated asset coverage ratio, defined as consolidated asset values divided by 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 primarily relate to an equipment purchase, 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 obligation is treated as a partial financing of the purchase price by the equipment vendor. Monthly payments commence when the equipment is placed in service and continue for a period of four years thereafter. The Company imputes interest on this obligation at a rate of 4.25% reflecting the estimated rate that would be recorded in a market transaction with similar terms. Principal payments on the Company’s bank revolving credit facilities and other debt obligations Year Ending August 31, Credit Facilities Other Debt Obligations 2021 $ — $ 843 2022 — 1,639 2023 90,000 1,710 2024 — 1,785 2025 — 802 Thereafter — 132 Total $ 90,000 $ 6,911 See Note 5 - Leases for additional disclosures of 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 $10 million outstanding under these arrangements as of August 31, 2020 and 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 - Commitments and Contingencies Contingencies – Environmental Changes in the Company’s environmental liabilities for the years ended August 31, 2020 and 2019 were as follows (in thousands): Balance as of September 1, 2018 Liabilities Established (Released), Net Payments and Other Ending Balance August 31, 2019 Liabilities Established (Released), Net Payments and Other Ending Balance August 31, 2020 Short-Term Long-Term $ 53,832 $ 1,302 $ (3,335 ) $ 51,799 $ 5,713 $ (4,048 ) $ 53,464 $ 6,302 $ 47,162 Recycling Operations As of August 31, 2020 and 2019, the Company’s recycling operations had environmental liabilities of $53 million 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 (the “Site”). The precise nature and extent of cleanup of any specific areas within the Site, 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 natural resource damage claims or third party contribution or damage claims with respect to the Site. While the Company participated in certain preliminary Site study efforts, it was not party to the consent order entered into by the EPA with certain other PRPs, referred to as the “Lower Willamette Group” (“LWG”), for a remedial investigation/feasibility study (“RI/FS”). During fiscal 2007, the Company and certain other parties agreed to an interim settlement with the LWG under which the Company made a cash contribution to the LWG RI/FS. The LWG has indicated that it had incurred over $155 million in investigation-related costs over an approximately 18 year period working on the RI/FS. Following submittal of draft RI and FS documents which the EPA largely rejected, the EPA took over the RI/FS process. The Company has joined with approximately 100 other PRPs, including the LWG members, in a voluntary process to establish an allocation of costs at the Site, including the costs incurred by the LWG in the RI/FS process. The LWG members have also commenced federal court litigation, which has been stayed, seeking to bring additional parties into the allocation process. In January 2008, the Portland Harbor Natural Resource Trustee Council (“Trustee Council”) invited the Company and other PRPs to participate in funding and implementing the Natural Resource Injury Assessment for the Site. Following meetings among the Trustee Council and the PRPs, funding and participation agreements were negotiated under which the participating PRPs, including the Company, agreed to fund the first phase of the three-phase natural resource damage assessment. Phase 1, which included the development of the Natural Resource Damage Assessment Plan (“AP”) and implementation of several early studies, was substantially completed in 2010. In December 2017, the Company joined with other participating PRPs in agreeing to fund Phase 2 of the natural resource damage assessment, which includes the 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. It is uncertain whether the Company will enter into an early settlement for natural resource damages or what costs it may incur in any such early settlement. 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 the Site and recovery of assessment costs related to natural resources damages from releases at and from the Site 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. Estimates of the cost of remedial action for the cleanup of the in-river portion of the Site have varied widely in various drafts of the FS and in the EPA’s final FS issued in June 2016 ranging from approximately $170 million to over $2.5 billion (net present value), depending on the remedial alternative and a number of other factors. In comments submitted to the EPA, the Company and certain other stakeholders identified a number of serious concerns regarding the EPA’s risk and remedial alternatives assessments, cost estimates, scheduling assumptions and conclusions regarding the feasibility and effectiveness of remediation technologies. In January 2017, the EPA issued a Record of Decision (“ROD”) that identified the selected remedy for the Site. The selected remedy is a modified version of one of the alternative remedies evaluated in the EPA’s FS that was expanded to include additional work at a greater cost. 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 a decade old, and the EPA’s estimates for the costs and time required to implement the selected remedy. Because of ongoing questions regarding cost effectiveness, technical feasibility, and the use of stale data, it is uncertain whether the ROD will be implemented as issued. 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 used in preparing the ROD was more than a decade old and would need to be updated with a new round of “baseline” sampling to be conducted prior to the remedial design phase. Accordingly, the ROD provided for additional pre-remedial design investigative work and baseline sampling to be conducted in order to provide a baseline of current conditions and delineate particular remedial actions for specific areas within the Site. This additional sampling was required prior to proceeding with the next phase in the process which is the remedial design. 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. Moreover, the ROD provided only Site-wide cost estimates and did not provide sufficient detail to estimate costs for specific sediment management areas within the Site. Following issuance of the ROD, EPA proposed that the PRPs, or a subgroup of PRPs, perform the additional investigative work identified in the ROD under a new consent order. In December 2017, the Company and three other PRPs entered into a new Administrative Settlement Agreement and Order on Consent with EPA to perform such pre-remedial design investigation and baseline sampling over a two-year The pre-remedial design investigation and baseline sampling work has been completed, and the report evaluating the data was submitted to EPA on June 17, 2019. The evaluation report concludes that Site conditions have improved substantially since the data forming the basis of the ROD was collected over a decade ago. The analysis contained in the report has significant implications for remedial design and remedial action at the Site. EPA has reviewed the report, finding with a few limited corrections that the data is of suitable quality and generally acceptable and stating that such data will be used, in addition to existing and forthcoming design-level data, to inform implementation of the ROD. However, EPA did not agree that the data or the analysis warrants a change to the remedy at this time and reaffirmed its commitment to proceed with remedial design. The Company and other PRPs disagree with EPA’s position on use of the more recent data and will continue to pursue limited, but critical, changes to the selected remedy for the Site during the remedial design phase. EPA encouraged PRPs to step forward (individually or in groups) to enter into consent agreements to perform remedial design covering the entire Site and proposed dividing the Site into eight to ten subareas for remedial design. Certain PRPs have since executed consent agreements for remedial design work covering a little more than half of the remedial action areas at the Site. Because of EPA’s refusal to date to modify the remedy to reflect the most current data on Site conditions and because of concerns with the terms of the consent agreement, the Company elected not to enter into a consent agreement for remedial design with respect to any of the subareas at the Site. On March 26, 2020, EPA issued a unilateral administrative order (UAO) to the Company and MMGL, LLC (“MMGL”), an unaffiliated company, for the remedial design work in the portion of one of the EPA identified subareas within the Site designated as the River Mile 3.5 East Project Area. Following a conference with the Company to discuss the UAO and written comments submitted by the Company, EPA made limited modifications to the UAO and issued an amendment to the UAO on April 27, 2020 with an effective date of May 4, 2020. As required by the UAO, the Company notified EPA of its intent to comply with the UAO on the effective date 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, EPA’s expected schedule for completion of the remedial design work is four years. EPA has 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 the Site as between the respondents or with respect to any third party. 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 expense in the consolidated financial statements in the third quarter of fiscal 2020. The Company has insurance policies that it believes will provide reimbursement for costs it incurs for remedial design, but not for any penalties. The Company also expects to pursue in the future allocation or contribution from other PRPs for a portion of such remedial design costs. An asset relating to recovery of such costs is recognized upon meeting certain accounting requirements, which had not yet been met as of the end of fiscal 2020. The Company’s environmental liabilities as of August 31, 2020 and 2019 include $4 million and $1 million, respectively, relating to Portland Harbor. Except for certain early action projects in which the Company is not involved, remediation activities are not expected to commence for a number of years. Moreover, remediation activities at the Site are expected to be sequenced, and the order and timing of such sequencing has not been determined. In addition, as discussed above, responsibility for implementing and funding the remedy will be determined in a separate allocation process, which is on-going. The Company expects the next major stage of the allocation process to proceed in parallel with the remedial design process. Because the final remedial actions have not yet been designed and there has not been a determination of the amount of natural resource damages or of the allocation among the PRPs of costs of the investigations, remedial action costs or natural resource damages, 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 the Site, although such costs could be material to the Company’s financial position, results of operations, cash flows and liquidity. Among the facts currently being developed 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 the Site, 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 natural resource damages claims in connection with the Site. 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 the Site, continue to seek settlements with other insurers and formed a Qualified Settlement Fund (“QSF”) which became operative in the fourth quarter of 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 the Site. 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 voluntary investigations and source control activities by the Company involving the Company’s sites adjacent to the Portland Harbor which are focused on controlling any current “uplands” releases of contaminants into the Willamette River. No liabilities have been established in connection with these investigations because the extent of contamination (if any) and the Company’s responsibility for the contamination (if any) have not yet been determined. Other Legacy Environmental Loss Contingencies The Company’s environmental loss contingencies as of August 31, 2020 and 2019, other than Portland Harbor, include actual or possible investigation and cleanup 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 cleanup 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 and cleanup 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. During fiscal 2018, the Company accrued $4 million in expense at its Corporate division 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, 2020 and , 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 currently estimates 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 a specific remedy implementation plan. However, subsequent to the development of those remedial alternatives, the Company performed additional investigative activities under new state requirements that has the potential to impact the required remedial actions and associated cost estimates pending further 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, 2020 and 2019 include $8 million for the estimated costs related to remediation of soil and groundwater conditions, including penalties in the amount of $2.7 million, in connection with a closed facility owned and previously operated by an indirect, wholly-owned subsidiary. Investigation activities have been conducted under the oversight of the applicable state regulatory agency, and the Company has also been working with local officials with respect to the protection of public water supplies. 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 of on-going studies and determination of remediation plans. As part of its activities relating to the protection of public water supplies, the Company has agreed to reimburse the municipality for certain studies and plans, and it is reasonably possible that it may incur additional liabilities and costs in the future, including for wellhead treatment, which in the case of costs for installation of wellhead treatment, if incurred, could be in the range of $10 million to $13 million. Steel Manufacturing Operations The Company’s steel manufacturing operations had no known environmental liabilities as The steel mill’s electric arc furnace generates dust (“EAF dust”) that is classified as hazardous waste by the EPA because of its zinc and lead content. As a result, the Company captures the EAF dust and ships it in specialized rail cars to firms that apply treatments that allow for the ultimate disposal of the EAF dust. The Company’s steel mill has an operating permit issued under Title V of the Clean Air Act Amendments of 1990, which governs certain air quality standards. The permit is based on an annual production capacity of approximately 950 thousand tons. The Company’s permit was first issued in 1998 and has since been renewed multiple times, most recently in April 2020 extending the permit through April 1, 2025. 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 Contingencies - Other Schnitzer Southeast, LLC (a wholly-owned subsidiary of the Company, “SSE”), an SSE employee, the Company and one of the Company’s 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 resolution of such legal proceedings arising 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, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 10 - Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, are as follows as of August 31, 2020, 2019 and 2018 (in thousands): Foreign Currency Translation Adjustments Pension Obligations, net Total Balance as of September 1, 2017 $ (31,828 ) $ (3,465 ) $ (35,293 ) Other comprehensive (loss) income before reclassifications (2,301 ) 64 (2,237 ) Income tax benefit — 172 172 Other comprehensive (loss) income before reclassifications, net of tax (2,301 ) 236 (2,065 ) Amounts reclassified from accumulated other comprehensive loss — 536 536 Income tax benefit — (415 ) (415 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 121 121 Net periodic other comprehensive (loss) income (2,301 ) 357 (1,944 ) Balance as of August 31, 2018 (34,129 ) (3,108 ) (37,237 ) Other comprehensive loss before reclassifications (1,560 ) (326 ) (1,886 ) Income tax benefit — 65 65 Other comprehensive loss before reclassifications, net of tax (1,560 ) (261 ) (1,821 ) Amounts reclassified from accumulated other comprehensive loss — 369 369 Income tax benefit — (74 ) (74 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 295 295 Net periodic other comprehensive (loss) income (1,560 ) 34 (1,526 ) Balance as of August 31, 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, net of tax 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, net of tax — 239 239 Net periodic other comprehensive income 1,505 387 1,892 Balance as of August 31, 2020 $ (34,184 ) $ (2,687 ) $ (36,871 ) In the second quarter of fiscal 2018, the Company adopted an accounting standard update that allowed for a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”) enacted on December 22, 2017. Reclassifications from AOCI to retained earnings for stranded tax effects during the year ended August 31, 2018, both individually and in the aggregate, were not material. Reclassifications from accumulated other comprehensive loss to earnings, both individually and in the aggregate, were not material |
Revenue
Revenue | 12 Months Ended |
Aug. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 11 - Revenue Disaggregation of Revenues The table below illustrates the Company’s revenues disaggregated by major product and sales destination for each reportable segment (in thousands): Year Ended August 31, 2020 AMR CSS Intercompany Revenue Eliminations Total Major product information: Ferrous revenues $ 825,316 $ 44,041 $ (6,867 ) $ 862,490 Nonferrous revenues 360,308 31,849 (1,859 ) 390,298 Steel revenues (1) — 336,980 — 336,980 Retail and other revenues 122,188 387 — 122,575 Total revenues $ 1,307,812 $ 413,257 $ (8,726 ) $ 1,712,343 Revenues based on sales destination: Foreign $ 820,379 $ 90,406 $ — $ 910,785 Domestic 487,433 322,851 (8,726 ) 801,558 Total revenues $ 1,307,812 $ 413,257 $ (8,726 ) $ 1,712,343 Year Ended August 31, 2019 AMR CSS Intercompany Revenue Eliminations Total Major product information: Ferrous revenues $ 1,123,180 $ 51,963 $ (10,424 ) $ 1,164,719 Nonferrous revenues 430,361 38,809 (1,147 ) 468,023 Steel revenues (1) — 367,956 — 367,956 Retail and other revenues 131,436 688 (41 ) 132,083 Total revenues $ 1,684,977 $ 459,416 $ (11,612 ) $ 2,132,781 Revenues based on sales destination: Foreign $ 1,047,546 $ 93,531 $ — $ 1,141,077 Domestic 637,431 365,885 (11,612 ) 991,704 Total revenues $ 1,684,977 $ 459,416 $ (11,612 ) $ 2,132,781 (1) Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and manufacturing scrap. 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, 2020 and 2019, receivables from contracts with customers, net of an allowance for doubtful accounts, totaled $135 million 97% 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 consist almost entirely of customer deposits for recycled scrap metal sales contracts, which are reported within accounts payable on the Consolidated Balance Sheets and totaled $8 million $3 million August 31, 2019, the Company reclassified $ 8 million in customer deposits as of August 31, 2018 to revenues as a result of satisfying performance obligations during the year. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Aug. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | Note 12 - Employee Benefits The Company and certain of its subsidiaries have or contribute to qualified and nonqualified retirement plans covering substantially all employees. These plans include a defined benefit pension plan, a supplemental executive retirement benefit plan (“SERBP”), multiemployer pension plans and defined contribution plans. 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 years assets exceeding the projected benefit obligation by $4 million and $3 million as of No was 2.38% and 2.83% between $1 million and $4 million per 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 $3 million as of August 31, 2020 and $4 million as of August 31, amount were $5 million as of SERBP was not material fo 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 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, 2022. As of October 1, 2019, 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 $3 million to represented more than 5% of total In 2004, the Internal Revenue Service (“IRS”) approved a seven-year Company contributions to all of the multiemployer plans were $ 6 million Defined Contribution Plans The Company has several defined contribution plans covering certain employees. Company contributions to the defined contribution plans totaled $4 million for each of the years ended August 31, 2020, 2019 and 2018. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Aug. 31, 2020 | |
Share Based Compensation [Abstract] | |
Share-based Compensation | Note 13 - 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, 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 $10 million Restricted Stock Units (“RSUs”) During the years ended August 31, 2020, 2019 and 2018, the Compensation Committee granted 470,917, 261,642 and 252,865 RSUs, respectively, to the Company’s key employees under the SIP. RSUs generally vest 20% per 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 $14.88, $27.61 and $26.60 $7 million five-year was $4 million, A summary of the Company’s RSU activity for the year ended August 31, 2020 is as follows: Number of Units (in thousands) Weighted Average Grant Date Fair Value Outstanding as of August 31, 2019 798 $ 24.14 Granted 471 $ 14.88 Vested (268 ) $ 22.91 Forfeited (15 ) $ 21.63 Outstanding as of August 31, 2020 986 $ 20.10 The total fair value of RSUs which vested, based on the market closing price of the underlying Class A common stock on the vesting date, for the years ended August 31, 2020, 2019 and 2018, respectively. As of August 31, 2020, total unrecognized compensation costs related to 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 will be 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 or the reportable segments for which the participant works. The Compensation Committee determined that performance share awards granted in fiscal years 2020, 2019 and 2018 comprise 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 The Company estimates the fair value of TSR awards using a Monte-Carlo simulation model utilizing several key assumptions, including the following for TSR awards granted during the fiscal years ended August 31: 2020 2019 2018 Expected share price volatility (SSI) 38.9 % 42.5 % 44.3 % Expected share price volatility (Peer group) 44.5 % 51.4 % 55.4 % Expected correlation to peer group companies 34.3 % 35.6 % 35.4 % Risk-free rate of return 1.58 % 2.89 % 1.79 % The compensation expense for the TSR awards 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. Compensation expense for TSR awards was $3 million, $4 million and $3 million for the years The fair value of the ROCE awards granted is based on the market closing price of the underlying Class A common stock on the grant date. The Company accrues compensation cost for ROCE awards based on the probable outcome of achieving 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 ROCE performance conditions is probable at each reporting date. the end of the service period, all related compensation cost previously recognized is reversed. Compensation expense for ROCE awards and other performance share awards with a non-market performance metric granted prior to fiscal 2018 was $2 million, $6 million and $8 million for During the years ended August 31, 2020, 2019 and 2018, the Compensation Committee granted a total of 337,770 165,834 171,936 123,812 130,808 as $21.32, . A summary of the Company’s performance-based awards activity for the year ended August 31, 2020 is as follows: Number of Awards (in thousands) Weighted Average Grant Date Fair Value Outstanding as of August 31, 2019 773 $ 25.49 Granted 338 $ 21.32 Performance achievement (1) 199 $ 20.84 Vested (485 ) $ 21.24 Forfeited (27 ) $ 24.11 Outstanding as of August 31, 2020 798 25.19 (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 $10 million and $13 million for the years ended August 31, 2020 2019 2018 2020 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 will receive DSUs which will become fully vested on the day before the next annual meeting, subject to continued service on the Board. The compensation expense associated with the DSUs granted is recognized over the requisite service period of the awards. The Company will issue 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, 2020, 2019 and 2018 totaled 41,592 shares, 31,218 shares and 21,806 shares, respectively. The compensation expense associated with DSUs and the total value of shares vested during each of the years ended August 31, 2020, 2019 and 2018, as well as the unrecognized compensation expense as of August 31, 2020, were not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14 - Income Taxes (Loss) income from continuing operations before income taxes was as follows for the years ended August 31 (in thousands): 2020 2019 2018 United States $ (5,649 ) $ 69,476 $ 131,518 Foreign 3,710 6,764 10,335 Total $ (1,939 ) $ 76,240 $ 141,853 Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands): 2020 2019 2018 Current: Federal $ (15,778 ) $ 2,690 $ 19,511 State 329 315 894 Foreign 519 52 — Total current tax (benefit) expense (14,930 ) 3,057 20,405 Deferred: Federal 12,292 12,930 (5,700 ) State 1,338 794 (1,962 ) Foreign 1,466 889 (30,333 ) Total deferred tax expense (benefit) 15,096 14,613 (37,995 ) Total income tax expense (benefit) $ 166 $ 17,670 $ (17,590 ) 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: 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 25.7 % State taxes, net of credits (57.9 ) 1.2 0.4 Foreign income taxed at different rates (11.6 ) (0.2 ) (0.5 ) Valuation allowance on deferred tax assets (24.5 ) (0.2 ) (35.8 ) Federal rate change 71.9 — (4.9 ) Non-deductible officers’ compensation (46.9 ) 1.8 1.6 Other non-deductible expenses (66.0 ) 1.0 (0.6 ) Noncontrolling interests 21.1 (0.5 ) (0.6 ) Research and development credits 99.3 (0.5 ) (0.6 ) Tax return to provision adjustment 89.2 0.5 — Unrecognized tax benefits (97.3 ) 0.7 3.4 Interest income 9.0 (0.4 ) (0.2 ) Excess tax benefit from stock-based compensation 3.0 (1.2 ) (0.3 ) Other (18.9 ) — — Effective tax rate (8.6 )% 23.2 % (12.4 )% Effective Tax Rate The Company’s effective tax rate from continuing operations for fiscal 2020 was an expense of 8.6%, compared to 23.2% for fiscal 2019. The reconciling differences between the Company’s effective tax rate from continuing operations for fiscal 2020 and the U.S. federal statutory rate of 21% are exaggerated due to the Company’s near-break-even pre-tax loss from continuing operations of $2 million for fiscal 2020, despite none of the reconciling differences being individually material. The Company’s effective tax rate from continuing operations for fiscal 2020 was lower than the U.S. federal statutory rate, 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. The Company reported a tax benefit on pre-tax income for fiscal 2018 primarily due to the release of valuation allowances against certain deferred tax assets, resulting in recognition of discrete tax benefits totaling $37 million in fiscal 2018, and the impact of the Tax Act enacted into law on December 22, 2017. On March 27, 2020, the President of the United States signed and enacted into law the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, which contains several income tax provisions, as well as other measures, aimed at assisting businesses impacted by the economic effects of the COVID-19 pandemic. Among other provisions, the CARES Act removes certain limitations on utilization of net operating losses (“NOLs”) and allows for carrybacks of certain past and future NOLs. The Company applied the NOL carryback provisions of the CARES Act to its NOL for fiscal 2020, which resulted in the reclassification of a $11 million NOL deferred income tax asset to refundable income taxes and recognition of a $1 million income tax benefit in the third quarter of fiscal 2020. The Company does not anticipate the other income tax provisions of the CARES Act to have a material impact on its financial statements. Deferred Tax Assets and Liabilities Deferred tax assets and liabilities comprised the following as of August 31 (in thousands): 2020 2019 Deferred tax assets: Operating lease liabilities $ 22,676 $ — Amortizable goodwill and other intangibles 17,455 22,646 Employee benefit accruals 9,246 6,289 Net operating loss carryforwards 8,484 7,122 Environmental liabilities 7,938 7,164 State credit carryforwards 7,933 8,202 Federal credit carryforwards 5,116 — Inventory valuation methods 2,865 1,748 Other 7,074 6,405 Valuation allowances (16,933 ) (16,436 ) Total deferred tax assets 71,854 43,140 Deferred tax liabilities: Accelerated depreciation and other basis differences 39,596 30,716 Operating lease right-of-use assets 21,104 — Investment in operating partnerships 14,703 6,777 Uncertain tax positions 4,936 — Prepaid expense acceleration 2,655 2,263 Total deferred tax liabilities 82,994 39,756 Net deferred tax (liabilities) assets $ (11,140 ) $ 3,384 As of August 31, 2020, foreign operating loss carryforwards were $19 million, which expire if not used between 2023 and 2039. Federal and state credit carryforwards will expire if not used between 2020 and 2041. 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 2018, the Company released valuation allowances against certain U.S. federal and state and Canadian deferred tax assets resulting in discrete tax benefits totaling $37 million. The release of these valuation allowances was the result of sufficient positive evidence at the time, including cumulative income in the Company’s U.S. and Canadian tax jurisdictions 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, Canadian and all Puerto Rican 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): 2020 2019 2018 Unrecognized tax benefits, as of the beginning of the year $ 5,410 $ 5,054 $ 5,548 Additions (reductions) for tax positions of prior years 1,368 (151 ) 171 Additions for tax positions of the current year 852 507 596 Reduction attributable to federal tax reform — — (1,261 ) Reductions for lapse of statutes (174 ) — — Unrecognized tax benefits, as of the end of the year $ 7,456 $ 5,410 $ 5,054 The Company does not anticipate any material changes to the reserve in the next 12 months. The recognized amounts of tax-related penalties and interest were not material for all periods presented. 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 2013 to 2019 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, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges and Other Exit-Related Activities | Note 15 - Restructuring Charges and Other Exit-Related Activities On January 8, 2020, subsequent to the end of the first quarter of fiscal 2020, the Company committed to certain restructuring initiatives aimed at further reducing its annual operating expenses, primarily selling, general and administrative, at Corporate, AMR and CSS, primarily through reductions in non-trade procurement spend, including outside and professional services, lower employee-related expenses and other non-headcount measures. Additionally, the Company incurred professional service costs related to the transition of its internal organizational and reporting structure to a functionally based, integrated model. During fiscal 2020, the Company incurred aggregate restructuring charges and other exit-related costs of approximately $9 million in connection with these initiatives, comprising severance costs of $2 million, costs associated with a lease contract termination of $1 million and professional services costs of $6 million. The substantial majority of the restructuring charges related to these initiatives were recognized in fiscal 2020 and required us to make cash payments. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Note 16 - Net (Loss) Income Per Share The following table sets forth the information used to compute basic and diluted net income per share attributable to SSI shareholders for the years ended August 31 (in thousands): 2020 2019 2018 (Loss) income from continuing operations $ (2,105 ) $ 58,570 $ 159,443 Net income attributable to noncontrolling interests (1,945 ) (1,977 ) (3,338 ) (Loss) income from continuing operations attributable to SSI shareholders (4,050 ) 56,593 156,105 (Loss) income from discontinued operations, net of tax (95 ) (248 ) 346 Net (loss) income attributable to SSI shareholders $ (4,145 ) $ 56,345 $ 156,451 Computation of shares: Weighted average common shares outstanding, basic 27,672 27,527 27,645 Incremental common shares attributable to dilutive performance share, RSU and DSU awards — 695 944 Weighted average common shares outstanding, diluted 27,672 28,222 28,589 Common stock equivalent shares of 629,223, 92,873 and 62,019 were considered antidilutive and were excluded from the calculation of diluted net (loss) income per share attributable to SSI shareholders for the years ended August 31, 2020, 2019 and 2018, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17 - Related Party Transactions The Company purchases recycled metal from its joint venture operations at prices that approximate fair market value. These purchases totaled $11 million |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 18 - Segment Information 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. AMR acquires and recycles ferrous and nonferrous scrap metal for sale to foreign and domestic metal producers, processors and brokers, and procures salvaged vehicles and sells serviceable used auto parts from these vehicles through a network of self-service auto parts stores. These auto parts stores also supply the Company’s shredding facilities with auto bodies that are processed into saleable recycled scrap metal. CSS operates a steel mini-mill that produces a range of finished steel long products using ferrous recycled scrap metal and other raw materials. CSS’s steel mill obtains substantially all of its scrap metal raw material requirements from its integrated metals recycling and joint venture operations. CSS’s metals recycling operations also sell recycled metal to external customers primarily in export markets. The Company holds noncontrolling ownership interests in joint ventures, which are either in the metals recycling business or are suppliers of unprocessed metal. The Company’s allocable portion of the results of these joint ventures is reported within the segment results. As of August 31, 2020, the Company had two 50% Intersegment sales are made at prices that approximate local market rates. These intercompany sales tend to produce intercompany profit which is not recognized until the finished products are ultimately sold to third parties. The information provided below is obtained from internal information that is provided to the Company’s chief operating decision maker for the purpose of corporate management. The Company uses segment operating income to measure segment performance. The Company does not allocate corporate interest income and expense, income taxes and other income and expense to its segments. Certain expenses related to shared services that support operational activities and transactions are allocated from Corporate to the segments. Unallocated Corporate expense consists primarily of expense for management and certain administrative services that benefit both segments. In addition, the Company does not allocate certain items to segment operating income because management does not include the information in its measurement of the performance of the segments. Such unallocated items include restructuring charges and other exit-related activities, charges (net of recoveries) related to legacy environmental matters, and provisions for certain legal matters. Because of the unallocated income and expense, the operating income of each segment does not reflect the operating income the segment would report as a stand-alone business. The results of discontinued operations are excluded from segment operating income and are presented separately, net of tax, from the results of ongoing operations for all periods presented. In the fourth quarter of fiscal 2018, the Company modified its measurement of segment operating income to classify all legacy environmental charges within Corporate in order to align the measures with how the Chief Executive Officer, who is considered the Company’s chief operating decision maker, reviews performance and makes decisions on resource allocation. The change has been applied prospectively beginning in the fourth quarter of fiscal 2018, and such legacy environmental charges incurred during the quarter are reported within the Corporate division. In the fourth quarter of fiscal 2018, the Company recorded $1 million of legacy environmental charges to the Corporate division that, prior to the change, would have been classified within AMR. Legacy environmental charges reflected in AMR’s operating results prior to the change are not material to the Consolidated Financial Statements either individually or in the aggregate. Environmental charges are reported within selling, general and administrative expense in the Consolidated Statements of Operations. The following is a summary of the Company’s total assets as of August 31 (in thousands): 2020 2019 Total assets: Auto and Metals Recycling (1) $ 1,746,170 $ 1,561,267 Cascade Steel and Scrap 793,305 769,930 Total segment assets 2,539,475 2,331,197 Corporate and eliminations (2) (1,309,548 ) (1,170,451 ) Total assets $ 1,229,927 $ 1,160,746 Property, plant and equipment, net (3) $ 487,004 $ 456,400 (1) AMR total assets include $2 million and $3 million (2) The substantial majority of Corporate and eliminations total assets consist of Corporate intercompany payables to the Company’s operating segments and intercompany eliminations. (3) Property, plant and equipment, net includes $16 million The table below illustrates the Company’s results from continuing operations by reportable segment for the years ended August 31 (in thousands): 2020 2019 2018 AMR: Revenues $ 1,307,812 $ 1,684,977 $ 1,908,966 Less: Intersegment revenues (7,634 ) (11,612 ) (24,892 ) AMR external customer revenues 1,300,178 1,673,365 1,884,074 CSS: Revenues 413,257 459,416 480,641 Less: Intersegment revenues (1,092 ) — — CSS external customer revenues 412,165 459,416 480,641 Total revenues $ 1,712,343 $ 2,132,781 $ 2,364,715 Depreciation and amortization: AMR $ 43,609 $ 38,816 $ 35,564 CSS 12,009 11,781 11,724 Segment depreciation and amortization 55,618 50,597 47,288 Corporate 2,555 2,739 2,384 Total depreciation and amortization $ 58,173 $ 53,336 $ 49,672 Capital expenditures: AMR $ 62,008 $ 78,706 $ 67,099 CSS 18,892 15,345 9,600 Segment capital expenditures 80,900 94,051 76,699 Corporate 1,105 562 927 Total capital expenditures $ 82,005 $ 94,613 $ 77,626 Reconciliation of the Company’s segment operating income to income from continuing operations before income taxes: AMR (1) $ 34,438 $ 95,991 $ 169,120 CSS (2) 22,983 31,951 38,286 Segment operating income 57,421 127,942 207,406 Restructuring charges and other exit-related activities (8,993 ) (365 ) 661 Corporate and eliminations (41,574 ) (43,712 ) (59,079 ) Operating income 6,854 83,865 148,988 Interest expense (8,669 ) (8,266 ) (8,983 ) Other (expense) income, net (124 ) 641 1,848 (Loss) income from continuing operations before income taxes $ (1,939 ) $ 76,240 $ 141,853 (1) AMR operating income includes less than $1 million, (2) CSS operating income includes $ 1 million, $ 1 million, and $ 2 million in income from joint ventures accounted for by the equity method in fiscal 2020 , 2019 and 2018 , respectively . The following revenues from external customers are presented by major product and based on the sales destination for the years ended August 31 (in thousands): 2020 2019 2018 Major product information (1) Ferrous revenues $ 862,490 $ 1,164,719 $ 1,328,447 Nonferrous revenues 390,298 468,023 529,466 Steel revenues (2) 336,980 367,956 367,560 Retail and other revenues 122,575 132,083 139,242 Total revenues $ 1,712,343 $ 2,132,781 $ 2,364,715 Revenues based on sales destination: Foreign $ 910,785 $ 1,141,077 $ 1,354,460 Domestic 801,558 991,704 1,010,255 Total revenues $ 1,712,343 $ 2,132,781 $ 2,364,715 (1) In fiscal 2019, the Company modified its categories of revenues from external customers by major product. The major product revenues for fiscal 2018 have been revised to conform to the current presentation, with such revisions being immaterial for the year. (2) Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and manufacturing scrap. In fiscal 2020, 2019 and 2018, the Company had no external customer that accounted for more than 10% of 2020 % of Revenue 2019 % of Revenue 2018 % of Revenue Turkey $ 222,141 13 % N/A N/A $ 262,835 11 % Bangladesh $ 197,391 12 % N/A N/A N/A N/A China N/A N/A N/A N/A $ 255,097 11 % N/A = Sales were less than the 10% threshold. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) In the opinion of management, this unaudited quarterly financial summary includes all adjustments necessary for a fair statement of the results for the periods represented (in thousands, except per share amounts): Fiscal 2020 First Second Third Fourth Revenues $ 405,584 $ 439,482 $ 402,683 $ 464,594 Cost of goods sold $ 364,760 $ 380,520 $ 356,217 $ 402,228 Operating (loss) income $ (7,910 ) $ 7,691 $ (3,706 ) $ 10,779 (Loss) income from continuing operations attributable to SSI shareholders $ (7,023 ) $ 3,882 $ (4,926 ) $ 4,017 Basic (loss) income per share from continuing operations attributable to SSI shareholders $ (0.26 ) $ 0.14 $ (0.18 ) $ 0.14 Diluted (loss) income per share from continuing operations attributable to SSI shareholders $ (0.26 ) $ 0.14 $ (0.18 ) $ 0.14 Net (loss) income $ (6,565 ) $ 4,504 $ (4,717 ) $ 4,578 Net (loss) income attributable to SSI shareholders $ (6,995 ) $ 3,883 $ (4,995 ) $ 3,962 Basic net (loss) income per share attributable to SSI shareholders $ (0.25 ) $ 0.14 $ (0.18 ) $ 0.14 Diluted net (loss) income per share attributable to SSI shareholders $ (0.25 ) $ 0.14 $ (0.18 ) $ 0.14 Fiscal 2019 First Second Third Fourth Revenues $ 564,020 $ 473,565 $ 547,396 $ 547,800 Cost of goods sold $ 490,132 $ 414,688 $ 474,598 $ 479,117 Operating income $ 22,689 $ 19,036 $ 24,459 $ 17,681 Income from continuing operations attributable to SSI shareholders $ 16,260 $ 13,030 $ 15,682 $ 11,621 Basic income per share from continuing operations attributable to SSI shareholders $ 0.59 $ 0.47 $ 0.57 $ 0.42 Diluted income per share from continuing operations attributable to SSI shareholders $ 0.57 $ 0.46 $ 0.56 $ 0.41 Net income $ 16,618 $ 13,297 $ 16,440 $ 11,967 Net income attributable to SSI shareholders $ 16,188 $ 12,892 $ 15,690 $ 11,575 Basic net income per share attributable to SSI shareholders $ 0.59 $ 0.47 $ 0.57 $ 0.42 Diluted net income per share attributable to SSI shareholders $ 0.57 $ 0.46 $ 0.56 $ 0.41 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Aug. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts For the Years Ended August 31, 2020, 2019 and 2018 (In thousands) Column A Column B Column C Column D Column E Description Balance at Beginning of Period Charges to Cost and Expenses Deductions Balance at End of Period Fiscal 2020 Allowance for doubtful accounts $ 1,569 $ 66 $ (42 ) $ 1,593 Deferred tax valuation allowance $ 16,436 $ 1,293 $ (796 ) $ 16,933 Fiscal 2019 Allowance for doubtful accounts $ 2,586 $ 74 $ (1,091 ) $ 1,569 Deferred tax valuation allowance $ 16,484 $ 472 $ (520 ) $ 16,436 Fiscal 2018 Allowance for doubtful accounts $ 2,280 $ 323 $ (17 ) $ 2,586 Deferred tax valuation allowance $ 67,348 $ — $ (50,864 ) $ 16,484 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation 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. |
Accounting Changes | Accounting Changes As of the beginning of the first quarter of fiscal 2020, the Company adopted an accounting standards update, initially issued in February 2016, 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 update supersedes the previous lease accounting standard. 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 not material. 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. The Company elected a package of practical expedients permitted under the transition guidance within the new lease accounting standard, which among other things, permit carrying forward the historical lease classification. The Company also elected the practical expedient exempting short-term leases from balance sheet recognition, whereby payments for such leases are recognized in the income statement on a straight-line basis over the lease term. In addition, the Company elected the practical expedient to not separate lease and non-lease components, which the Company elected to apply to all classes of underlying assets. Adoption of the new standard resulted in recognition of $126 million and $128 million of operating lease right-of-use assets and liabilities, respectively, as of September 1, 2019, which are presented as separate line items on the balance sheet. Operating lease right-of-use assets are considered long-lived assets subject to existing long-lived asset impairment guidance. Adoption also resulted in the reclassification of the Company’s capital lease assets and obligations as finance lease right-of-use assets and liabilities as of September 1, 2019, with such reclassification having no impact on the carrying amounts or financial statement line items within which the leases are reported. See Note 5 - Leases for the disclosures required under the new standard. As of the beginning of the first quarter of fiscal 2019, the Company adopted an accounting standards update initially issued in May 2014 that clarifies the principles for recognizing revenue from contracts with customers. The Company adopted the accounting standard using the modified retrospective approach and recorded no cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2018. The Company identified certain scrap purchase and sale arrangements for which it recognized revenue for the gross amount of consideration it expected to be entitled to from the customer (as principal) under the previous revenue guidance, but for which under the new revenue standard it recognizes revenue as the net amount of consideration that it expects to retain after paying the scrap metal supplier (as agent). The foregoing change in the classification of the cost of scrap metal purchased under such arrangements has the effect of reducing the amount of revenue and cost of goods sold reported in the financial statements, while having no impact on net income. If the Company had continued using the accounting guidance in effect before the adoption of the new revenue accounting standard, its consolidated revenues for fiscal 2019 would have been higher by approximately $28 million, or 1%, and its consolidated cost of goods sold would have been higher by the same amount. No other line items in the consolidated financial statements were materially impacted by adoption of the new requirements. Fiscal 2018 amounts and disclosures continue to be reported in accordance with guidance in effect prior to the date of adoption. See Note 11 - Revenue 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 $20 million |
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 doubtful accounts, 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 metal sales, nonferrous metal sales and finished steel sales to domestic customers 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 credit insurance is in place. In cases where management is aware of circumstances that may impair a customer’s ability to meet its financial obligations, management records a specific allowance against amounts due and reduces the receivable to the amount the Company believes will be collected. For all other customers, the Company maintains an allowance that considers the total receivables outstanding, historical collection rates and economic trends. Accounts are written off when all efforts to collect have been exhausted. The allowance for doubtful accounts was $2 million as of 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 $9 million, $15 million |
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 yard costs into inventory. The Company allocates material and production costs to joint products using the gross margin method. AMR 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. CSS 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 yard 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. 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 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 AMR 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. The Company used the incremental borrowing rate to recognize all operating lease right-of-use assets and liabilities as of the new lease accounting standard application date. 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, or with respect to the Company’s transition to the new lease accounting standard the index or rate at the application date. 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. |
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 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, 2020, the useful lives used for depreciation and amortization were as follows: Useful Life (in years) Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Office equipment and other software licenses 3 to 10 Enterprise Resource Planning (“ERP”) systems 6 to 17 |
Other Assets | Prepaid Expenses The Company’s prepaid expenses, reported within prepaid expenses and other current assets in the Consolidated Balance Sheets, totaled as of August 31, 2020 and 2019, 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 retirement plans, consist primarily of spare parts, an equity investment, receivables from insurers, debt issuance costs, capitalized implementation costs for cloud computing arrangements, and notes and other contractual receivables. Other The Company invested $6 million in the equity of a privately-held waste and recycling entity in fiscal 2017. The equity investment does not have a readily determinable fair value and, therefore, is carried at cost and adjusted for impairments and observable price changes. The investment is presented as part of the AMR reportable segment and reported within other assets in the Consolidated Balance Sheets. The carrying value of the investment was . The Company has not recorded any impairments or upward or downward adjustments to the carrying value of the investment since its acquisition. Receivables from insurers represent the portion of insured losses expected to be recovered from the Company’s insurance carriers. 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 $5 million and $89 million as of August 31, 2020 and 2019, respectively, with the decrease in fiscal 2020 resulting primarily from full payment by the Company’s insurers of settlements for lawsuits arising from a 2016 motor vehicle collision. See “Contingencies – Other” in Note 9 - Commitments and Contingencies for further discussion of this matter. Debt issuance costs consist primarily of costs incurred by the Company to enter into 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. 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 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. Notes and other contractual receivables consist primarily of advances to entities in the business of extracting scrap metal through demolition and other activities, as well as receivables from counterparties to sales of equipment assets and to legal settlements. 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. Once a note or other contractual receivable has been identified as impaired, it is measured based on the present value of payments expected to be received, discounted at the receivable’s contractual interest rate, or for arrangements that are solely dependent on collateral for repayment, the estimated fair value of the collateral less estimated costs to sell. If the carrying value of the receivable exceeds its recoverable amount, an impairment is recorded for the difference. |
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 reported within AMR, an asset group generally consists of the regional shredding and export operation along with surrounding feeder yards. For regions with no shredding and export operations, each metals recycling yard is an asset group. For the Company’s auto parts operations, generally each auto parts store is an asset group. The combined steel manufacturing and metals recycling operations within CSS are a single 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 (recoveries), net and (2) restructuring charges and other exit-related activities if related to a site closure. During fiscal 2020, the Company reported $6 million of such items within asset impairment charges (recoveries), 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, each in the AMR reportable segment |
Investments in Joint Ventures | Investments in Joint Ventures As of August 31, 2020, the Company had two 50%-owned joint venture interests which were accounted for under the equity method of accounting. One of the joint venture interests is presented as part of AMR operations, and one interest is presented as part of CSS operations. The joint venture within CSS sells recycled scrap metal to other operations within CSS 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, 2020, the Company’s investments in equity method joint ventures have generated $8 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. During fiscal 2018, the Company declassified two of its 50% joint venture interests from equity method classification as a result of the agreed-upon dissolution of the joint venture entities. The joint venture interests had previously been presented as part of AMR operations. See Note 17 - 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, 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 not 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 7 - 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. The Company acquired certain assets of an auto recycling business in northern California in fiscal 2019 and certain assets of a metals recycling business in Columbus, Georgia in fiscal 2018. These acquisitions were not material to the Company’s financial position or results of operations. Pro forma operating results for these acquisitions are not presented, since the aggregate results would not be significantly different than reported results. There were no business acquisitions in fiscal 2020. See Note 7 - Goodwill and Other Intangible Assets, net for further detail. |
Restructuring Charges and Other Exit-Related Activities | Restructuring Charges 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 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 $8 million $4 million |
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. 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 when expenditures are made for which liabilities were established. Legal 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 9 - 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 9 - Commitments and Contingencies for further detail. |
Financial Instruments | Financial Instruments The Company’s financial instruments include 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 its 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 the 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) income, net in the Consolidated Statements of Operations. Net realized and unrealized foreign currency transaction gains and losses were not material for |
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 ferrous and nonferrous recycled scrap 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 ferrous recycled scrap 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 scrap material between scrap suppliers and end customers. For transactions in which the Company obtains substantive control of the scrap 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 scrap 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 scrap 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 scrap 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 year s ended August 31, 2020 and 2019 . The Company experiences very few sales returns and, therefore, no material provisions for returns have been made when sales are recognized. During each of the year s ended August 31, 2020 and 2019 , 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 was $5 million in fiscal 2020 and $6 million in each of fiscal 2019 and 2018. |
Share-Based Compensation | Share-Based Compensation The Company estimates 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 a return on capital employed (“ROCE") |
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 on 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 |
Net (Loss) Income Per Share | Net (Loss) Income Per Share Basic net (loss) income per share attributable to SSI shareholders is computed by dividing net (loss) income 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 (loss) income per share attributable to SSI shareholders is computed by dividing net (loss) income 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. Certain of the Company’s performance share and RSU awards were excluded from the calculation of diluted net (loss) income per share attributable to SSI shareholders because they were antidilutive; however, certain of these performance share and RSU awards could be dilutive in the future. Net income attributable to noncontrolling interests is deducted from (loss) income from continuing operations to arrive at (loss) income from continuing operations attributable to SSI shareholders for the purpose of calculating (loss) income per share from continuing operations attributable to SSI shareholders. See Note 16 - Net (Loss) Income 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 doubtful accounts; 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 Risk 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, accounts receivable, and notes and other contractual receivables. 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, 2020. 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. The Company is exposed to a residual credit risk with respect to open letters of credit by virtue of the possibility of the failure of a bank providing a letter of credit. The Company had $58 million and |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives Used for Depreciation and Amortization | As of August 31, 2020, the useful lives used for depreciation and amortization were as follows: Useful Life (in years) Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Office equipment and other software licenses 3 to 10 Enterprise Resource Planning (“ERP”) systems 6 to 17 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Inventory Net [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of August 31 (in thousands): 2020 2019 Processed and unprocessed scrap metal $ 63,058 $ 81,313 Semi-finished goods 6,909 8,712 Finished goods 44,476 53,796 Supplies 42,826 43,499 Inventories $ 157,269 $ 187,320 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Schedule of Finance Lease-Related Assets and Liabilities | Finance lease-related assets and liabilities consisted of the following (in thousands): Balance Sheet Classification August 31, 2020 Assets: Finance lease right-of-use assets (1) Property, plant and equipment, net $ 6,274 Liabilities: Finance lease liabilities - current Short-term borrowings $ 1,341 Finance lease liabilities - non-current Long-term debt, net of current maturities 6,167 Total finance lease liabilities $ 7,508 (1) Presented 2020 |
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 were as follows: August 31, 2020 Weighted Average Remaining Lease Term (Years) Weighted Average Discount Rate Operating leases 10.2 3.37 % Finance leases 6.0 8.22 % |
Schedule of Maturities of Leases Liabilities | Maturities of lease liabilities by fiscal year as of August 31, 2020 Year Ending August 31, Finance Leases Operating Leases 2021 $ 1,837 $ 24,223 2022 1,768 23,292 2023 1,694 22,810 2024 1,410 18,619 2025 656 13,212 Thereafter 1,778 72,064 Total lease payments 9,143 174,220 Less amounts representing interest (1,635 ) (29,459 ) Total lease liabilities 7,508 144,761 Less current maturities (1,341 ) (19,760 ) Lease liabilities, net of current maturities $ 6,167 $ 125,001 |
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): Fiscal 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 22,225 Operating cash flows for finance leases $ 628 Financing cash flows for finance leases $ 1,336 Lease liabilities arising from obtaining right-of-use assets (1) Operating leases $ 34,586 Finance leases $ 1,230 (1) Amounts |
Summary of Principal Payments on Capital Lease Obligations | Principal payments on capital lease obligations during the next five fiscal years and thereafter as of August 31, 2019 are as follows (in thousands): Year Ending August 31, Capital Lease Obligations 2020 $ 1,917 2021 1,799 2022 1,751 2023 1,622 2024 1,346 Thereafter 1,694 Total 10,129 Amounts representing interest (2,355 ) Total less interest $ 7,774 |
Schedule of Future Minimum Operating Lease Obligations | The table below sets forth the Company’s future minimum obligations under non-cancellable operating leases as of August 31, 2019 (in thousands): Year Ending August 31, Operating Leases 2020 $ 21,286 2021 15,301 2022 12,488 2023 10,419 2024 5,035 Thereafter 16,095 Total $ 80,624 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
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): 2020 2019 Machinery and equipment $ 746,845 $ 697,746 Land and improvements 295,575 283,348 Buildings and leasehold improvements 138,380 112,244 Office equipment and other software licenses 44,103 43,960 ERP systems 17,760 17,760 Construction in progress 55,964 67,375 Property, plant and equipment, gross 1,298,627 1,222,433 Less accumulated depreciation (811,623 ) (766,033 ) Property, plant and equipment, net $ 487,004 $ 456,400 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
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, 2020 and 2019 was as follows (in thousands): Goodwill Balance as of September 1, 2018 $ 168,065 Acquisition 1,575 Foreign currency translation adjustment (403 ) Balance as of August 31, 2019 169,237 Foreign currency translation adjustment 390 Balance as of August 31, 2020 $ 169,627 |
Schedule of Other Intangible Assets | Other Intangible Assets, net The following table presents the Company’s other intangible assets as of August 31 (in thousands): 2020 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Covenants not to compete $ 7,032 $ (3,528 ) $ 3,504 $ 5,746 $ (2,862 ) $ 2,884 Other intangible assets subject to amortization (1) — — — 771 (254 ) 517 Indefinite-lived intangibles (2) 1,081 — 1,081 1,081 — 1,081 Total $ 8,113 $ (3,528 ) $ 4,585 $ 7,598 $ (3,116 ) $ 4,482 (1) Other intangible assets subject to amortization as of August 31, 2019 related to leasehold interests and were reclassified to operating lease right-of-use assets on adoption of the new lease accounting guidance as of September 1, 2019. (2) Indefinite-lived intangibles include trade names, 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 Amortization Expense 2021 $ 763 2022 763 2023 458 2024 409 2025 249 Thereafter 862 Total $ 3,504 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Long Term Debt And Capital Lease Obligations [Abstract] | |
Schedule of Debt | Debt consisted of the following as of August 31 (in thousands): 2020 2019 Bank revolving credit facilities, interest primarily at LIBOR plus a spread $ 90,000 $ 96,835 Finance lease liabilities (1) 7,508 7,774 Other debt obligations 6,911 487 Total debt 104,419 105,096 Less current maturities (2,184 ) (1,321 ) Debt, net of current maturities $ 102,235 $ 103,775 (1) Prior to adoption of the new lease accounting guidance as of September 1, 2019, the Company’s finance lease liabilities were classified as capital lease obligations. |
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 Year Ending August 31, Credit Facilities Other Debt Obligations 2021 $ — $ 843 2022 — 1,639 2023 90,000 1,710 2024 — 1,785 2025 — 802 Thereafter — 132 Total $ 90,000 $ 6,911 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Environmental Liabilities | Changes in the Company’s environmental liabilities for the years ended August 31, 2020 and 2019 were as follows (in thousands): Balance as of September 1, 2018 Liabilities Established (Released), Net Payments and Other Ending Balance August 31, 2019 Liabilities Established (Released), Net Payments and Other Ending Balance August 31, 2020 Short-Term Long-Term $ 53,832 $ 1,302 $ (3,335 ) $ 51,799 $ 5,713 $ (4,048 ) $ 53,464 $ 6,302 $ 47,162 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
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, 2020, 2019 and 2018 (in thousands): Foreign Currency Translation Adjustments Pension Obligations, net Total Balance as of September 1, 2017 $ (31,828 ) $ (3,465 ) $ (35,293 ) Other comprehensive (loss) income before reclassifications (2,301 ) 64 (2,237 ) Income tax benefit — 172 172 Other comprehensive (loss) income before reclassifications, net of tax (2,301 ) 236 (2,065 ) Amounts reclassified from accumulated other comprehensive loss — 536 536 Income tax benefit — (415 ) (415 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 121 121 Net periodic other comprehensive (loss) income (2,301 ) 357 (1,944 ) Balance as of August 31, 2018 (34,129 ) (3,108 ) (37,237 ) Other comprehensive loss before reclassifications (1,560 ) (326 ) (1,886 ) Income tax benefit — 65 65 Other comprehensive loss before reclassifications, net of tax (1,560 ) (261 ) (1,821 ) Amounts reclassified from accumulated other comprehensive loss — 369 369 Income tax benefit — (74 ) (74 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 295 295 Net periodic other comprehensive (loss) income (1,560 ) 34 (1,526 ) Balance as of August 31, 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, net of tax 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, net of tax — 239 239 Net periodic other comprehensive income 1,505 387 1,892 Balance as of August 31, 2020 $ (34,184 ) $ (2,687 ) $ (36,871 ) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Major Product and Sales Destination for Each Reportable Segment | The table below illustrates the Company’s revenues disaggregated by major product and sales destination for each reportable segment (in thousands): Year Ended August 31, 2020 AMR CSS Intercompany Revenue Eliminations Total Major product information: Ferrous revenues $ 825,316 $ 44,041 $ (6,867 ) $ 862,490 Nonferrous revenues 360,308 31,849 (1,859 ) 390,298 Steel revenues (1) — 336,980 — 336,980 Retail and other revenues 122,188 387 — 122,575 Total revenues $ 1,307,812 $ 413,257 $ (8,726 ) $ 1,712,343 Revenues based on sales destination: Foreign $ 820,379 $ 90,406 $ — $ 910,785 Domestic 487,433 322,851 (8,726 ) 801,558 Total revenues $ 1,307,812 $ 413,257 $ (8,726 ) $ 1,712,343 Year Ended August 31, 2019 AMR CSS Intercompany Revenue Eliminations Total Major product information: Ferrous revenues $ 1,123,180 $ 51,963 $ (10,424 ) $ 1,164,719 Nonferrous revenues 430,361 38,809 (1,147 ) 468,023 Steel revenues (1) — 367,956 — 367,956 Retail and other revenues 131,436 688 (41 ) 132,083 Total revenues $ 1,684,977 $ 459,416 $ (11,612 ) $ 2,132,781 Revenues based on sales destination: Foreign $ 1,047,546 $ 93,531 $ — $ 1,141,077 Domestic 637,431 365,885 (11,612 ) 991,704 Total revenues $ 1,684,977 $ 459,416 $ (11,612 ) $ 2,132,781 (1) Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and manufacturing scrap. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Share Based Compensation [Abstract] | |
Summary of RSU Activity | A summary of the Company’s RSU activity for the year ended August 31, 2020 is as follows: Number of Units (in thousands) Weighted Average Grant Date Fair Value Outstanding as of August 31, 2019 798 $ 24.14 Granted 471 $ 14.88 Vested (268 ) $ 22.91 Forfeited (15 ) $ 21.63 Outstanding as of August 31, 2020 986 $ 20.10 |
Key Assumptions for a Monte-Carlo Simulation Model Utilized to Estimate the Fair Value of TSR awards | The Company estimates the fair value of TSR awards using a Monte-Carlo simulation model utilizing several key assumptions, including the following for TSR awards granted during the fiscal years ended August 31: 2020 2019 2018 Expected share price volatility (SSI) 38.9 % 42.5 % 44.3 % Expected share price volatility (Peer group) 44.5 % 51.4 % 55.4 % Expected correlation to peer group companies 34.3 % 35.6 % 35.4 % Risk-free rate of return 1.58 % 2.89 % 1.79 % |
Summary of Performance-based Awards Activity | A summary of the Company’s performance-based awards activity for the year ended August 31, 2020 is as follows: Number of Awards (in thousands) Weighted Average Grant Date Fair Value Outstanding as of August 31, 2019 773 $ 25.49 Granted 338 $ 21.32 Performance achievement (1) 199 $ 20.84 Vested (485 ) $ 21.24 Forfeited (27 ) $ 24.11 Outstanding as of August 31, 2020 798 25.19 (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, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Loss) Income before Income Tax, Domestic and Foreign | (Loss) income from continuing operations before income taxes was as follows for the years ended August 31 (in thousands): 2020 2019 2018 United States $ (5,649 ) $ 69,476 $ 131,518 Foreign 3,710 6,764 10,335 Total $ (1,939 ) $ 76,240 $ 141,853 |
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): 2020 2019 2018 Current: Federal $ (15,778 ) $ 2,690 $ 19,511 State 329 315 894 Foreign 519 52 — Total current tax (benefit) expense (14,930 ) 3,057 20,405 Deferred: Federal 12,292 12,930 (5,700 ) State 1,338 794 (1,962 ) Foreign 1,466 889 (30,333 ) Total deferred tax expense (benefit) 15,096 14,613 (37,995 ) Total income tax expense (benefit) $ 166 $ 17,670 $ (17,590 ) |
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: 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 25.7 % State taxes, net of credits (57.9 ) 1.2 0.4 Foreign income taxed at different rates (11.6 ) (0.2 ) (0.5 ) Valuation allowance on deferred tax assets (24.5 ) (0.2 ) (35.8 ) Federal rate change 71.9 — (4.9 ) Non-deductible officers’ compensation (46.9 ) 1.8 1.6 Other non-deductible expenses (66.0 ) 1.0 (0.6 ) Noncontrolling interests 21.1 (0.5 ) (0.6 ) Research and development credits 99.3 (0.5 ) (0.6 ) Tax return to provision adjustment 89.2 0.5 — Unrecognized tax benefits (97.3 ) 0.7 3.4 Interest income 9.0 (0.4 ) (0.2 ) Excess tax benefit from stock-based compensation 3.0 (1.2 ) (0.3 ) Other (18.9 ) — — Effective tax rate (8.6 )% 23.2 % (12.4 )% |
Schedule of Deferred Tax Assets and Liabilities | Deferred Tax Assets and Liabilities Deferred tax assets and liabilities comprised the following as of August 31 (in thousands): 2020 2019 Deferred tax assets: Operating lease liabilities $ 22,676 $ — Amortizable goodwill and other intangibles 17,455 22,646 Employee benefit accruals 9,246 6,289 Net operating loss carryforwards 8,484 7,122 Environmental liabilities 7,938 7,164 State credit carryforwards 7,933 8,202 Federal credit carryforwards 5,116 — Inventory valuation methods 2,865 1,748 Other 7,074 6,405 Valuation allowances (16,933 ) (16,436 ) Total deferred tax assets 71,854 43,140 Deferred tax liabilities: Accelerated depreciation and other basis differences 39,596 30,716 Operating lease right-of-use assets 21,104 — Investment in operating partnerships 14,703 6,777 Uncertain tax positions 4,936 — Prepaid expense acceleration 2,655 2,263 Total deferred tax liabilities 82,994 39,756 Net deferred tax (liabilities) assets $ (11,140 ) $ 3,384 |
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): 2020 2019 2018 Unrecognized tax benefits, as of the beginning of the year $ 5,410 $ 5,054 $ 5,548 Additions (reductions) for tax positions of prior years 1,368 (151 ) 171 Additions for tax positions of the current year 852 507 596 Reduction attributable to federal tax reform — — (1,261 ) Reductions for lapse of statutes (174 ) — — Unrecognized tax benefits, as of the end of the year $ 7,456 $ 5,410 $ 5,054 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
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 per share attributable to SSI shareholders for the years ended August 31 (in thousands): 2020 2019 2018 (Loss) income from continuing operations $ (2,105 ) $ 58,570 $ 159,443 Net income attributable to noncontrolling interests (1,945 ) (1,977 ) (3,338 ) (Loss) income from continuing operations attributable to SSI shareholders (4,050 ) 56,593 156,105 (Loss) income from discontinued operations, net of tax (95 ) (248 ) 346 Net (loss) income attributable to SSI shareholders $ (4,145 ) $ 56,345 $ 156,451 Computation of shares: Weighted average common shares outstanding, basic 27,672 27,527 27,645 Incremental common shares attributable to dilutive performance share, RSU and DSU awards — 695 944 Weighted average common shares outstanding, diluted 27,672 28,222 28,589 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Total Assets from Segments to Consolidated | The following is a summary of the Company’s total assets as of August 31 (in thousands): 2020 2019 Total assets: Auto and Metals Recycling (1) $ 1,746,170 $ 1,561,267 Cascade Steel and Scrap 793,305 769,930 Total segment assets 2,539,475 2,331,197 Corporate and eliminations (2) (1,309,548 ) (1,170,451 ) Total assets $ 1,229,927 $ 1,160,746 Property, plant and equipment, net (3) $ 487,004 $ 456,400 (1) AMR total assets include $2 million and $3 million (2) The substantial majority of Corporate and eliminations total assets consist of Corporate intercompany payables to the Company’s operating segments and intercompany eliminations. (3) Property, plant and equipment, net includes $16 million |
Reconciliation of Operating Income from Segments to Consolidated | The table below illustrates the Company’s results from continuing operations by reportable segment for the years ended August 31 (in thousands): 2020 2019 2018 AMR: Revenues $ 1,307,812 $ 1,684,977 $ 1,908,966 Less: Intersegment revenues (7,634 ) (11,612 ) (24,892 ) AMR external customer revenues 1,300,178 1,673,365 1,884,074 CSS: Revenues 413,257 459,416 480,641 Less: Intersegment revenues (1,092 ) — — CSS external customer revenues 412,165 459,416 480,641 Total revenues $ 1,712,343 $ 2,132,781 $ 2,364,715 Depreciation and amortization: AMR $ 43,609 $ 38,816 $ 35,564 CSS 12,009 11,781 11,724 Segment depreciation and amortization 55,618 50,597 47,288 Corporate 2,555 2,739 2,384 Total depreciation and amortization $ 58,173 $ 53,336 $ 49,672 Capital expenditures: AMR $ 62,008 $ 78,706 $ 67,099 CSS 18,892 15,345 9,600 Segment capital expenditures 80,900 94,051 76,699 Corporate 1,105 562 927 Total capital expenditures $ 82,005 $ 94,613 $ 77,626 Reconciliation of the Company’s segment operating income to income from continuing operations before income taxes: AMR (1) $ 34,438 $ 95,991 $ 169,120 CSS (2) 22,983 31,951 38,286 Segment operating income 57,421 127,942 207,406 Restructuring charges and other exit-related activities (8,993 ) (365 ) 661 Corporate and eliminations (41,574 ) (43,712 ) (59,079 ) Operating income 6,854 83,865 148,988 Interest expense (8,669 ) (8,266 ) (8,983 ) Other (expense) income, net (124 ) 641 1,848 (Loss) income from continuing operations before income taxes $ (1,939 ) $ 76,240 $ 141,853 (1) AMR operating income includes less than $1 million, (2) CSS operating income includes $ 1 million, $ 1 million, and $ 2 million in income from joint ventures accounted for by the equity method in fiscal 2020 , 2019 and 2018 , respectively . |
Schedule of Revenues from External Customers By Major Product and Destination | The following revenues from external customers are presented by major product and based on the sales destination for the years ended August 31 (in thousands): 2020 2019 2018 Major product information (1) Ferrous revenues $ 862,490 $ 1,164,719 $ 1,328,447 Nonferrous revenues 390,298 468,023 529,466 Steel revenues (2) 336,980 367,956 367,560 Retail and other revenues 122,575 132,083 139,242 Total revenues $ 1,712,343 $ 2,132,781 $ 2,364,715 Revenues based on sales destination: Foreign $ 910,785 $ 1,141,077 $ 1,354,460 Domestic 801,558 991,704 1,010,255 Total revenues $ 1,712,343 $ 2,132,781 $ 2,364,715 (1) In fiscal 2019, the Company modified its categories of revenues from external customers by major product. The major product revenues for fiscal 2018 have been revised to conform to the current presentation, with such revisions being immaterial for the year. (2) Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and manufacturing scrap. |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | 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): 2020 % of Revenue 2019 % of Revenue 2018 % of Revenue Turkey $ 222,141 13 % N/A N/A $ 262,835 11 % Bangladesh $ 197,391 12 % N/A N/A N/A N/A China N/A N/A N/A N/A $ 255,097 11 % N/A = Sales were less than the 10% threshold. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | In the opinion of management, this unaudited quarterly financial summary includes all adjustments necessary for a fair statement of the results for the periods represented (in thousands, except per share amounts): Fiscal 2020 First Second Third Fourth Revenues $ 405,584 $ 439,482 $ 402,683 $ 464,594 Cost of goods sold $ 364,760 $ 380,520 $ 356,217 $ 402,228 Operating (loss) income $ (7,910 ) $ 7,691 $ (3,706 ) $ 10,779 (Loss) income from continuing operations attributable to SSI shareholders $ (7,023 ) $ 3,882 $ (4,926 ) $ 4,017 Basic (loss) income per share from continuing operations attributable to SSI shareholders $ (0.26 ) $ 0.14 $ (0.18 ) $ 0.14 Diluted (loss) income per share from continuing operations attributable to SSI shareholders $ (0.26 ) $ 0.14 $ (0.18 ) $ 0.14 Net (loss) income $ (6,565 ) $ 4,504 $ (4,717 ) $ 4,578 Net (loss) income attributable to SSI shareholders $ (6,995 ) $ 3,883 $ (4,995 ) $ 3,962 Basic net (loss) income per share attributable to SSI shareholders $ (0.25 ) $ 0.14 $ (0.18 ) $ 0.14 Diluted net (loss) income per share attributable to SSI shareholders $ (0.25 ) $ 0.14 $ (0.18 ) $ 0.14 Fiscal 2019 First Second Third Fourth Revenues $ 564,020 $ 473,565 $ 547,396 $ 547,800 Cost of goods sold $ 490,132 $ 414,688 $ 474,598 $ 479,117 Operating income $ 22,689 $ 19,036 $ 24,459 $ 17,681 Income from continuing operations attributable to SSI shareholders $ 16,260 $ 13,030 $ 15,682 $ 11,621 Basic income per share from continuing operations attributable to SSI shareholders $ 0.59 $ 0.47 $ 0.57 $ 0.42 Diluted income per share from continuing operations attributable to SSI shareholders $ 0.57 $ 0.46 $ 0.56 $ 0.41 Net income $ 16,618 $ 13,297 $ 16,440 $ 11,967 Net income attributable to SSI shareholders $ 16,188 $ 12,892 $ 15,690 $ 11,575 Basic net income per share attributable to SSI shareholders $ 0.59 $ 0.47 $ 0.57 $ 0.42 Diluted net income per share attributable to SSI shareholders $ 0.57 $ 0.46 $ 0.56 $ 0.41 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) | 12 Months Ended |
Aug. 31, 2020segment | |
Nature Of Operations [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue, Initial Application Period Cumulative Effect Transition (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Sep. 01, 2019 | Sep. 01, 2018 | |
Significant Accounting Policies [Line Items] | |||||||||||||
Operating lease right-of-use assets | $ 140,584,000 | $ 140,584,000 | |||||||||||
Operating lease liabilities | 144,761,000 | 144,761,000 | |||||||||||
Retained earnings | 649,863,000 | $ 675,363,000 | 649,863,000 | $ 675,363,000 | |||||||||
Revenues | 464,594,000 | $ 402,683,000 | $ 439,482,000 | $ 405,584,000 | 547,800,000 | $ 547,396,000 | $ 473,565,000 | $ 564,020,000 | 1,712,343,000 | 2,132,781,000 | $ 2,364,715,000 | ||
Cost of goods sold | $ 402,228,000 | $ 356,217,000 | $ 380,520,000 | $ 364,760,000 | $ 479,117,000 | $ 474,598,000 | $ 414,688,000 | $ 490,132,000 | $ 1,503,725,000 | 1,858,535,000 | $ 2,010,485,000 | ||
Accounting Standards Update 2016-02 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Operating lease right-of-use assets | $ 126,000,000 | ||||||||||||
Operating lease liabilities | $ 128,000,000 | ||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Retained earnings | $ 0 | ||||||||||||
Revenues | $ (28,000,000) | ||||||||||||
Percentage of Total Revenue | 1.00% | ||||||||||||
Cost of goods sold | $ (28,000,000) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Aug. 31, 2020USD ($)jointventureinterestshares | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($)jointventureinterest | |
Significant Accounting Policies [Line Items] | |||
Book Overdrafts | $ 20,000,000 | $ 27,000,000 | |
Allowance for Doubtful Accounts Receivable | 2,000,000 | 2,000,000 | |
Repayment of Advances with Scrap Metal | 9,000,000 | 15,000,000 | $ 15,000,000 |
Asset impairment charges (recoveries), net | $ 5,729,000 | 63,000 | (1,021,000) |
Number of Equity Method Investments | jointventureinterest | 2 | ||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Cumulative Undistributed Earnings, Equity Method Joint Ventures | $ 8,000,000 | ||
Goodwill impairment charges | 0 | 0 | 0 |
Advertising Expense | $ 5,000,000 | 6,000,000 | $ 6,000,000 |
Percentage likelihood of tax benefit being realized upon settlement with tax authority | 50.00% | ||
Cash, FDIC Insured Amount | $ 250,000 | ||
Customer Issued Letters Of Credit | $ 58,000,000 | 49,000,000 | |
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 | ||
Other Accrued Liabilities | |||
Significant Accounting Policies [Line Items] | |||
Workers' Compensation Liability | $ 8,000,000 | 8,000,000 | |
Other Current Assets | |||
Significant Accounting Policies [Line Items] | |||
Workers' Compensation insurance receivables | 4,000,000 | $ 4,000,000 | |
AMR | |||
Significant Accounting Policies [Line Items] | |||
Asset impairment charges (recoveries), net | $ 6,000,000 | ||
Number of Equity Method Investments | jointventureinterest | 2 | ||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Number of Joint Venture Investments | jointventureinterest | 1 | ||
CSS | |||
Significant Accounting Policies [Line Items] | |||
Number of Joint Venture Investments | jointventureinterest | 1 | ||
Impairment Associated with Abandonment of Obsolete Machinery and Equipment Assets | AMR | |||
Significant Accounting Policies [Line Items] | |||
Asset impairment charges (recoveries), net | $ 2,000,000 | ||
Impairments of Two Auto Parts Stores | AMR | |||
Significant Accounting Policies [Line Items] | |||
Asset impairment charges (recoveries), net | 2,000,000 | ||
Impairment Associated with Accelerated Depreciation due to Shortening of Useful Lives of Certain Metals Recovery Assets | AMR | |||
Significant Accounting Policies [Line Items] | |||
Asset impairment charges (recoveries), net | $ 2,000,000 | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Shipment Period | 30 days | ||
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 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies -Schedule of Useful Lives Used for Depreciation and Amortization (Details) | 12 Months Ended |
Aug. 31, 2020 | |
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 |
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 |
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 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2017 |
Significant Accounting Policies [Line Items] | |||
Investment, Original Cost | $ 6 | ||
Insurance receivable | $ 5 | $ 89 | |
Prepaid Expenses and Other Current Assets | |||
Significant Accounting Policies [Line Items] | |||
Prepaid Expense | 23 | 23 | |
Other Assets | AMR | |||
Significant Accounting Policies [Line Items] | |||
Investment, Carrying Value | $ 6 | $ 6 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Inventory Net [Abstract] | ||
Processed and unprocessed scrap metal | $ 63,058 | $ 81,313 |
Semi-finished goods | 6,909 | 8,712 |
Finished goods | 44,476 | 53,796 |
Supplies | 42,826 | 43,499 |
Inventories | $ 157,269 | $ 187,320 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Lessee Lease Description [Line Items] | |||
Lease cost | $ 28 | ||
Operating lease expense | 23 | ||
Short-term lease expense | $ 4 | ||
Operating leases, rent expense | $ 27 | $ 27 | |
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-Related Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Assets: | ||
Finance lease right-of-use assets | $ 6,274 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Liabilities: | ||
Finance lease liabilities - current | $ 1,341 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:DebtCurrent | |
Finance lease liabilities - non-current | $ 6,167 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | |
Total finance lease liabilities | $ 7,508 | $ 7,774 |
Leases - Schedule of Finance _2
Leases - Schedule of Finance Lease-Related Assets and Liabilities (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Maximum | |
Leases [Line Items] | |
Finance lease, accumulated amortization | $ 1 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates (Details) | Aug. 31, 2020 |
Weighted Average Remaining Lease Term (Years) | |
Operating leases | 10 years 2 months 12 days |
Finance leases | 6 years |
Weighted average discount rate | |
Operating leases | 3.37% |
Finance leases | 8.22% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Finance Leases | ||
2021 | $ 1,837 | |
2022 | 1,768 | |
2023 | 1,694 | |
2024 | 1,410 | |
2025 | 656 | |
Thereafter | 1,778 | |
Total lease payments | 9,143 | |
Less amounts representing interest | (1,635) | |
Total finance lease liabilities | 7,508 | $ 7,774 |
Less current maturities | (1,341) | |
Lease liabilities, net of current maturities | 6,167 | |
Operating Leases | ||
2021 | 24,223 | |
2022 | 23,292 | |
2023 | 22,810 | |
2024 | 18,619 | |
2025 | 13,212 | |
Thereafter | 72,064 | |
Total lease payments | 174,220 | |
Less amounts representing interest | (29,459) | |
Total operating lease liabilities | 144,761 | |
Less current maturities | (19,760) | |
Operating lease liabilities, net of current maturities | $ 125,001 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information and Non-Cash Activity Related to Leases (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows for operating leases | $ 22,225 |
Operating cash flows for finance leases | 628 |
Financing cash flows for finance leases | 1,336 |
Lease liabilities arising from obtaining right-of-use assets: | |
Operating leases | 34,586 |
Finance leases | $ 1,230 |
Leases - Summary of Principal P
Leases - Summary of Principal Payments on Capital Lease Obligations (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Capital Leases, Future Minimum Payments, Net Minimum Payments [Abstract] | |
2020 | $ 1,917 |
2021 | 1,799 |
2022 | 1,751 |
2023 | 1,622 |
2024 | 1,346 |
Thereafter | 1,694 |
Total | 10,129 |
Amounts representing interest | (2,355) |
Total less interest | $ 7,774 |
Leases - Future Minimum Obligat
Leases - Future Minimum Obligations Non-Cancellable Operating Leases (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Future minimum obligations under non-cancelable operating leases: | |
2020 | $ 21,286 |
2021 | 15,301 |
2022 | 12,488 |
2023 | 10,419 |
2024 | 5,035 |
Thereafter | 16,095 |
Total | $ 80,624 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,298,627 | $ 1,222,433 |
Less accumulated depreciation | (811,623) | (766,033) |
Property, plant and equipment, net | 487,004 | 456,400 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 746,845 | 697,746 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 295,575 | 283,348 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 138,380 | 112,244 |
ERP systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 17,760 | 17,760 |
Office equipment and other software licenses | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 44,103 | 43,960 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 55,964 | $ 67,375 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Property Plant And Equipment Net [Abstract] | |||
Depreciation of property plant and equipment including amortization expense for finance lease right-of-use assets | $ 57 | $ 53 | $ 49 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Additional Information (Details) - USD ($) | Jul. 01, 2020 | Feb. 28, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
Goodwill [Line Items] | |||||
Goodwill | $ 169,627,000 | $ 169,237,000 | |||
Goodwill, impaired, accumulated impairment loss | 471,000,000 | 471,000,000 | $ 471,000,000 | ||
Amortization of intangible assets | 1,000,000 | 1,000,000 | 1,000,000 | ||
Impairments of intangible assets recognized | 0 | 0 | 0 | ||
Auto Recycling Business | |||||
Goodwill [Line Items] | |||||
Business combination, consideration transferred | $ 2,000,000 | ||||
Goodwill, acquired during period | $ 2,000,000 | ||||
AMR | |||||
Goodwill [Line Items] | |||||
Goodwill, acquired during period | 1,575,000 | ||||
Goodwill | $ 169,000,000 | $ 169,627,000 | $ 169,237,000 | $ 168,065,000 | |
AMR | Other Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | 1,000,000 | ||||
AMR | Single Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 168,000,000 | ||||
AMR | Single Reporting Unit | Income Approach Valuation | |||||
Goodwill [Line Items] | |||||
Estimated fair value of reporting unit exceeded carrying amount | 29.00% | ||||
Increase in weighted average cost of capital that could have resulted in failure of quantitative impairment test | 2.28% | ||||
AMR | Single Reporting Unit | Income Approach Valuation | Weighted Average Cost of Capital | |||||
Goodwill [Line Items] | |||||
Goodwill valuation measurement input | 0.111 | ||||
AMR | Single Reporting Unit | Income Approach Valuation | Terminal Growth Rate | |||||
Goodwill [Line Items] | |||||
Goodwill valuation measurement input | 0.020 |
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, 2020 | Aug. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 169,237 | |
Goodwill, end of period | 169,627 | $ 169,237 |
AMR | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 169,237 | 168,065 |
Acquisition | 1,575 | |
Foreign currency translation adjustment | 390 | (403) |
Goodwill, end of period | $ 169,627 | $ 169,237 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,113 | $ 7,598 |
Accumulated Amortization | (3,528) | (3,116) |
Intangibles, Net | 4,585 | 4,482 |
Gross Carrying Amount, Indefinite-Lived | 1,081 | 1,081 |
Covenants not to compete | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,032 | 5,746 |
Accumulated Amortization | (3,528) | (2,862) |
Intangibles, Net | $ 3,504 | 2,884 |
Other intangible assets subject to amortization | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 771 | |
Accumulated Amortization | (254) | |
Intangibles, Net | $ 517 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Schedule of Estimated Amortization Expenses (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Estimated amortization expense | |
2021 | $ 763 |
2022 | 763 |
2023 | 458 |
2024 | 409 |
2025 | 249 |
Thereafter | 862 |
Total | $ 3,504 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 7,508 | $ 7,774 |
Other debt obligations | 6,911 | 487 |
Total debt | 104,419 | 105,096 |
Less current maturities | (2,184) | (1,321) |
Long-term debt, net of current maturities | 102,235 | 103,775 |
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 LIBOR plus a spread | $ 90,000 | $ 96,835 |
Debt - Additional Information (
Debt - Additional Information (Details) | Jun. 30, 2020 | May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020USD ($) | Aug. 31, 2020USD ($) | Aug. 31, 2020CAD ($) | Aug. 31, 2019USD ($) |
For Certain Obligations Workers Compensation And Performance Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding, amount | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | |||||
Line of Credit | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio | 1.50 | 1.20 | ||||||
Consolidated asset coverage ratio | 1 | |||||||
Line of Credit | Minimum | Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio | 1.10 | 1.10 | 1.10 | |||||
Consolidated asset coverage ratio | 1 | 1 | 1 | |||||
Other Debt Obligations | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate estimated percentage | 4.25% | 4.25% | 4.25% | |||||
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 | $ 700,000,000 | $ 700,000,000 | $ 15,000,000 | |||||
Debt instrument, Maturity date | Aug. 31, 2023 | |||||||
Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Line of Credit | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.20% | |||||||
Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Line of Credit | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.50% | |||||||
Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Line of Credit | Amended Credit Agreement, Interest Rate Option 1 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, Variable rate | 0.50% | |||||||
Senior Secured Revolving Credit Facility | 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 Revolving Credit Facility | 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 Revolving Credit Facility | 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 Revolving Credit Facility | 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 | 0.00% | |||||||
Senior Secured Revolving Credit Facility | 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% | |||||||
Senior Secured Revolving Credit Facility | 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 Revolving Credit Facility | Bank of America NA And Other Lenders | Letters of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | $ 50,000,000 | ||||||
Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Swingline Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 25,000,000 | 25,000,000 | ||||||
Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Multicurrency Borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | 50,000,000 | ||||||
Secured Revolving Credit Facility | Bank of America NA And Other Lenders | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 90,000,000 | $ 90,000,000 | $ 97,000,000 | |||||
Weighted average interest rate | 4.59% | 4.59% | 4.59% | 3.78% |
Debt - Summary of Principal Pay
Debt - Summary of Principal Payments on Bank Revolving Credit Facilities and Other Debt Obligations (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Other Long-term Debt, by Maturity [Abstract] | |
2021 | $ 843 |
2022 | 1,639 |
2023 | 1,710 |
2024 | 1,785 |
2025 | 802 |
Thereafter | 132 |
Total | 6,911 |
Credit Facilities | |
Long-term Debt, by Maturity [Abstract] | |
2023 | 90,000 |
Total | $ 90,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Environmental Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning Balance | $ 51,799 | $ 53,832 |
Liabilities Established (Released), Net | 5,713 | 1,302 |
Payments and Other | (4,048) | (3,335) |
Ending Balance | 53,464 | 51,799 |
Short-Term | 6,302 | 6,030 |
Long-Term | $ 47,162 | $ 45,769 |
Commitments and Contingencies_2
Commitments and Contingencies - Recycling Operations - Recycling Operations (Details) $ in Thousands | May 04, 2020USD ($) | Dec. 31, 2017potentially_responsible_party | Jan. 31, 2017USD ($) | May 31, 2020USD ($) | Aug. 31, 2020USD ($)Subarea | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2007USD ($) | Jan. 30, 2017potentially_responsible_partyparty | Aug. 31, 2016USD ($) |
Loss Contingencies [Line Items] | ||||||||||
Accrual for Environmental Loss Contingencies | $ 53,464 | $ 51,799 | $ 53,832 | |||||||
Parties named in Litigation | party | 30 | |||||||||
Liabilities Established | 5,713 | 1,302 | ||||||||
Insurance Receivable | 5,000 | 89,000 | ||||||||
Other Auto and Metals Recycling Business Sites | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Accrual for Environmental Loss Contingencies | 53,000 | 52,000 | ||||||||
Portland Harbor Superfund Site | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Accrual for Environmental Loss Contingencies | $ 4,000 | $ 1,000 | ||||||||
Number Of Potentially Responsible Parties Joining Allocation Process | potentially_responsible_party | 100 | |||||||||
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 | |||||||||
Liabilities Established | $ 3,000 | 2,000 | ||||||||
Insurance Receivable | $ 2,000 | |||||||||
Site contingency expected completion term for remedial design | 4 years | |||||||||
Site contingency EPA estimated completion cost for remedial design | $ 4,000 | |||||||||
Portland Harbor Superfund Site | Minimum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Site contingency proposed subareas for remedial design | Subarea | 8 | |||||||||
Portland Harbor Superfund Site | Maximum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Site contingency proposed subareas for remedial design | Subarea | 10 | |||||||||
Portland Harbor Superfund Site | Lower Willamette Group | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Remedial Investigation and Feasibility Study Costs | $ 155,000 | |||||||||
Number of Years for Remedial Investigation and Feasibility Study | 18 years | |||||||||
Portland Harbor Superfund Site | Potential Responsible Parties | ||||||||||
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 | 7.00% | |||||||||
Site Contingency, Estimated Construction Time Frame | 13 years | |||||||||
Portland Harbor Superfund Site | Potential Responsible Parties | Minimum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Site Contingency, Least Costly Remediation Plan Discounted | $ 170,000 | |||||||||
Estimated Cost of Selected Remedy, Range | (30.00%) | |||||||||
Portland Harbor Superfund Site | Potential Responsible Parties | Maximum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Site Contingency, Most Costly Remediation Plan Discounted | $ 2,500,000 | |||||||||
Estimated Cost of Selected Remedy, Range | 50.00% |
Commitments and Contingencies_3
Commitments and Contingencies - Recycling Operations - Other Legacy (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2018 | Aug. 31, 2019 | |
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 53,464,000 | $ 53,832,000 | $ 51,799,000 |
Legacy Environmental Site 1 - Remediation of Shredder Residue | |||
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | 4,000,000 | 4,000,000 | |
Environmental remediation expense accrued in the period | $ 4,000,000 | ||
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 | 28,000,000 | ||
Legacy Environmental Site 2 - Remediation of Soil and Groundwater Conditions | |||
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | 8,000,000 | 8,000,000 | |
Loss contingency, penalties | 2,700,000 | $ 2,700,000 | |
Legacy Environmental Site 2 - Installation of Wellhead Treatment | Minimum | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense accrued in the period | 10,000,000 | ||
Legacy Environmental Site 2 - Installation of Wellhead Treatment | Maximum | |||
Loss Contingencies [Line Items] | |||
Environmental remediation expense accrued in the period | $ 13,000,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Steel Manufacturing Operations (Details) T in Thousands | Aug. 31, 2020USD ($)T | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 53,464,000 | $ 51,799,000 | $ 53,832,000 |
Steel Manufacturing Operations | |||
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 0 | $ 0 | |
Permitted Annual Production Capacity | T | 950 |
Commitments and Contingencies_5
Commitments and Contingencies - Other (Details) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2019USD ($)lawsuit | Aug. 31, 2020USD ($)lawsuit | Aug. 31, 2019USD ($)lawsuit | |
Loss Contingencies [Line Items] | |||
Insurance receivable | $ 5,000,000 | $ 89,000,000 | |
GEORGIA | Wrongful Death Lawsuits | |||
Loss Contingencies [Line Items] | |||
Amount Awarded | $ 103,000,000 | ||
GEORGIA | Wrongful Death Lawsuits | Settled Litigation | |||
Loss Contingencies [Line Items] | |||
Claims Settled | lawsuit | 2 | 3 | |
Amount Awarded | $ 68,000,000 | $ 35,000,000 | |
GEORGIA | Wrongful Death Lawsuits | Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Claims Filed | lawsuit | 5 | ||
Accrual loss contingencies amount | $ 0 | 83,000,000 | |
Accrual loss contingencies paid amount | $ 83,000,000 | ||
Insurance receivable | $ 83,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | $ 701,296 | $ 670,110 | $ 537,493 |
Total other comprehensive income (loss), net of tax | 1,892 | (1,526) | (1,944) |
Ending balance | 680,436 | 701,296 | 670,110 |
Foreign Currency Translation Adjustments | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (35,689) | (34,129) | (31,828) |
Other comprehensive (loss) income before reclassifications | 1,505 | (1,560) | (2,301) |
Income tax benefit (expense) | 0 | 0 | 0 |
Other comprehensive (loss) income before reclassifications, net of tax | 1,505 | (1,560) | (2,301) |
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 income (loss), net of tax | 1,505 | (1,560) | (2,301) |
Ending balance | (34,184) | (35,689) | (34,129) |
Pension Obligations, net | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (3,074) | (3,108) | (3,465) |
Other comprehensive (loss) income before reclassifications | 190 | (326) | 64 |
Income tax benefit (expense) | (42) | 65 | 172 |
Other comprehensive (loss) income before reclassifications, net of tax | 148 | (261) | 236 |
Amounts reclassified from accumulated other comprehensive loss | 309 | 369 | 536 |
Income tax benefit | (70) | (74) | (415) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 239 | 295 | 121 |
Total other comprehensive income (loss), net of tax | 387 | 34 | 357 |
Ending balance | (2,687) | (3,074) | (3,108) |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (38,763) | (37,237) | (35,293) |
Other comprehensive (loss) income before reclassifications | 1,695 | (1,886) | (2,237) |
Income tax benefit (expense) | (42) | 65 | 172 |
Other comprehensive (loss) income before reclassifications, net of tax | 1,653 | (1,821) | (2,065) |
Amounts reclassified from accumulated other comprehensive loss | 309 | 369 | 536 |
Income tax benefit | (70) | (74) | (415) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 239 | 295 | 121 |
Total other comprehensive income (loss), net of tax | 1,892 | (1,526) | (1,944) |
Ending balance | $ (36,871) | $ (38,763) | $ (37,237) |
Revenue - Summary of Revenues D
Revenue - Summary of Revenues Disaggregated by Major Product and Sales Destination for Each Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 464,594 | $ 402,683 | $ 439,482 | $ 405,584 | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 1,712,343 | $ 2,132,781 | $ 2,364,715 |
AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,300,178 | 1,673,365 | 1,884,074 | ||||||||
CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 412,165 | 459,416 | 480,641 | ||||||||
Ferrous Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 862,490 | 1,164,719 | |||||||||
Nonferrous Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 390,298 | 468,023 | |||||||||
Steel Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 336,980 | 367,956 | 367,560 | ||||||||
Retail and Other Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 122,575 | 132,083 | |||||||||
Operating Segments | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,307,812 | 1,684,977 | 1,908,966 | ||||||||
Operating Segments | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 413,257 | 459,416 | 480,641 | ||||||||
Operating Segments | Ferrous Revenues | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 825,316 | 1,123,180 | |||||||||
Operating Segments | Ferrous Revenues | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 44,041 | 51,963 | |||||||||
Operating Segments | Nonferrous Revenues | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 360,308 | 430,361 | |||||||||
Operating Segments | Nonferrous Revenues | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 31,849 | 38,809 | |||||||||
Operating Segments | Steel Revenues | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Operating Segments | Steel Revenues | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 336,980 | 367,956 | |||||||||
Operating Segments | Retail and Other Revenues | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 122,188 | 131,436 | |||||||||
Operating Segments | Retail and Other Revenues | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 387 | 688 | |||||||||
Intersegment Revenue Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (8,726) | (11,612) | |||||||||
Intersegment Revenue Eliminations | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (7,634) | (11,612) | (24,892) | ||||||||
Intersegment Revenue Eliminations | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (1,092) | 0 | $ 0 | ||||||||
Intersegment Revenue Eliminations | Ferrous Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (6,867) | (10,424) | |||||||||
Intersegment Revenue Eliminations | Nonferrous Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (1,859) | (1,147) | |||||||||
Intersegment Revenue Eliminations | Steel Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Intersegment Revenue Eliminations | Retail and Other Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | (41) | |||||||||
Foreign | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 910,785 | 1,141,077 | |||||||||
Foreign | Operating Segments | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 820,379 | 1,047,546 | |||||||||
Foreign | Operating Segments | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 90,406 | 93,531 | |||||||||
Foreign | Intersegment Revenue Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Domestic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 801,558 | 991,704 | |||||||||
Domestic | Operating Segments | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 487,433 | 637,431 | |||||||||
Domestic | Operating Segments | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 322,851 | 365,885 | |||||||||
Domestic | Intersegment Revenue Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ (8,726) | $ (11,612) |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | ||
Receivables from contracts with customers, net of allowance for doubtful accounts | $ 135 | $ 142 |
Percentage of receivables from contracts with customers of accounts receivable | 97.00% | 97.00% |
Contract liabilities | $ 8 | $ 3 |
Customer deposits reclassified to revenue | $ 3 | $ 8 |
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, 2020 | Aug. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, amortization of gain (loss), percent threshold | 5.00% | |
Defined benefit plan, benefit obligation | $ 18,000,000 | $ 17,000,000 |
Defined benefit plan, funded (unfunded) status of plan | 4,000,000 | $ 3,000,000 |
Defined benefit plan, expected future employer contributions, next fiscal year | $ 0 | |
Defined benefit plan, assumptions used calculating benefit obligation, discount rate | 2.38% | 2.83% |
Supplemental Employee Retirement Plan, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, funded (unfunded) status of plan | $ (5,000,000) | $ (5,000,000) |
Assets for plan benefits, defined benefit plan | 3,000,000 | 4,000,000 |
Fair Value, Inputs, Level 1 and 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 21,000,000 | $ 20,000,000 |
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 | $ 4,000,000 |
Employee Benefits - Multiemploy
Employee Benefits - Multiemployer Pension Plans - Additional Information (Details) $ in Millions | 12 Months Ended | ||||
Aug. 31, 2020USD ($)Plan | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2004 | Oct. 01, 2029 | |
Steelworkers Western Independent Shops Pension Plan | |||||
Multiemployer Plans [Line Items] | |||||
Multiemployer plan, expiration date | Mar. 31, 2022 | ||||
Multiemployer plan, contributions by employer | $ 3 | $ 3 | $ 3 | ||
Internal revenue service extension period | 7 years | ||||
Steelworkers Western Independent Shops Pension Plan | Scenario, Forecast | |||||
Multiemployer Plans [Line Items] | |||||
Minimum valuation funded percentage | 100.00% | ||||
Steelworkers Western Independent Shops Pension Plan | Minimum | |||||
Multiemployer Plans [Line Items] | |||||
Multiemployer plan rehabilitation plan contributions as a percent of total contributions | 5.00% | 5.00% | 5.00% | ||
Multiemployer Plans, Pension | |||||
Multiemployer Plans [Line Items] | |||||
Number of multiemployer plans | Plan | 14 | ||||
Multiemployer plan, contributions by employer | $ 6 | $ 6 | $ 5 |
Employee Benefits - Defined Con
Employee Benefits - Defined Contribution Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Defined contribution plan, cost | $ 4 | $ 4 | $ 4 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
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 | $ 10 | $ 17 | $ 19 |
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) | 2.7 |
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, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit expense | $ 4 | $ 6 | $ 7 |
Restricted stock units (“RSUs”) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 470,917 | 261,642 | 252,865 |
Vesting percentage per year | 20.00% | ||
Vesting term | 5 years | ||
Shares granted, fair value | $ 7 | $ 7 | $ 7 |
Weighted average grant date fair value, granted | $ 14.88 | $ 27.61 | $ 26.60 |
Total fair value of shares vested during period | $ 6 | $ 7 | $ 8 |
Compensation cost not yet recognized | $ 10 | ||
Compensation cost not yet recognized, period for recognition | 3 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 |
Share-based Compensation - Summ
Share-based Compensation - Summary of RSU Activity (Details) - Restricted stock units (“RSUs”) - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Number of Shares: | |||
Outstanding, Beginning Balance (in shares) | 798,000 | ||
Granted (in shares) | 470,917 | 261,642 | 252,865 |
Vested (in shares) | (268,000) | ||
Forfeited (in shares) | (15,000) | ||
Outstanding, Ending Balance (in shares) | 986,000 | 798,000 | |
Weighted Average Grant Date Fair Value: | |||
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 24.14 | ||
Granted, Weighted Average Grant Date Fair Value | 14.88 | $ 27.61 | $ 26.60 |
Vested, Weighted Average Grant Date Fair Value | 22.91 | ||
Forfeited, Weighted Average Grant Date Fair Value | 21.63 | ||
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 20.10 | $ 24.14 |
Share-based Compensation - Perf
Share-based Compensation - Performance Share Awards - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
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 | 3 years | 3 years |
Shares granted (in shares) | 337,770 | 254,620 | 246,161 |
Weighted average grant date fair value, granted | $ 21.32 | $ 28.37 | $ 27.32 |
Share vested | $ 10 | $ 13 | |
Shares vested (in shares) | 485,000 | 0 | |
Compensation cost not yet recognized | $ 6 | ||
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 | 50.00% | ||
Performance Shares (PSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based awards award payouts threshold | 200.00% | ||
Total Shareholder Return (TSR) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 3 | $ 4 | $ 3 |
Shares granted (in shares) | 165,834 | 123,812 | 119,763 |
Return on Capital Employed Awards and Other Performance Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2 | $ 6 | $ 8 |
Return on Capital Employed Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 171,936 | 130,808 | 126,398 |
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, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected share price volatility | 38.90% | 42.50% | 44.30% |
Risk-free rate of return | 1.58% | 2.89% | 1.79% |
Peer Group | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected share price volatility | 44.50% | 51.40% | 55.40% |
Expected correlation | 34.30% | 35.60% | 35.40% |
Share-based Compensation - Su_3
Share-based Compensation - Summary of Performance-based Awards Activity (Details) - Performance Shares (PSUs) - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Number of Shares: | |||
Outstanding, Beginning Balance (in shares) | 773,000 | ||
Granted (in shares) | 337,770 | 254,620 | 246,161 |
Performance achievement (in shares) | 199,000 | ||
Vested (in shares) | (485,000) | 0 | |
Forfeited (in shares) | (27,000) | ||
Outstanding, Ending Balance (in shares) | 798,000 | 773,000 | |
Weighted Average Grant Date Fair Value: | |||
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 25.49 | ||
Granted, Weighted Average Grant Date Fair Value | 21.32 | $ 28.37 | $ 27.32 |
Performance achievement, Weighted Average Grant Date Fair Value | 20.84 | ||
Vested, Weighted Average Grant Date Fair Value | 21.24 | ||
Forfeited, Weighted Average Grant Date Fair Value | 24.11 | ||
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 25.19 | $ 25.49 |
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, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 41,592 | 31,218 | 21,806 |
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 (Loss
Income Taxes - Summary of (Loss) Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income from continuing operations before income taxes [Abstract] | |||
United States | $ (5,649) | $ 69,476 | $ 131,518 |
Foreign | 3,710 | 6,764 | 10,335 |
(Loss) income from continuing operations before income taxes | $ (1,939) | $ 76,240 | $ 141,853 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Current: | |||
Federal | $ (15,778) | $ 2,690 | $ 19,511 |
State | 329 | 315 | 894 |
Foreign | 519 | 52 | |
Total current tax (benefit) expense | (14,930) | 3,057 | 20,405 |
Deferred: | |||
Federal | 12,292 | 12,930 | (5,700) |
State | 1,338 | 794 | (1,962) |
Foreign | 1,466 | 889 | (30,333) |
Total deferred tax expense (benefit) | 15,096 | 14,613 | (37,995) |
Total income tax expense (benefit) | $ 166 | $ 17,670 | $ (17,590) |
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, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Reconciliation of the difference between the federal statutory rate and the Company's effective tax rate [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 25.70% |
State taxes, net of credits | (57.90%) | 1.20% | 0.40% |
Foreign income taxed at different rates | (11.60%) | (0.20%) | (0.50%) |
Valuation allowance on deferred tax assets | (24.50%) | (0.20%) | (35.80%) |
Federal rate change | 71.90% | (4.90%) | |
Non-deductible officers’ compensation | (46.90%) | 1.80% | 1.60% |
Other non-deductible expenses | (66.00%) | 1.00% | (0.60%) |
Noncontrolling interests | 21.10% | (0.50%) | (0.60%) |
Research and development credits | 99.30% | (0.50%) | (0.60%) |
Tax return to provision adjustment | 89.20% | 0.50% | |
Unrecognized tax benefits | (97.30%) | 0.70% | 3.40% |
Interest income | 9.00% | (0.40%) | (0.20%) |
Excess tax benefit from stock-based compensation | 3.00% | (1.20%) | (0.30%) |
Other | (18.90%) | ||
Effective tax rate | (8.60%) | 23.20% | (12.40%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2020 | |
Income Taxes [Line Items] | ||||
Effective tax rate | (8.60%) | 23.20% | (12.40%) | |
Federal statutory rate | 21.00% | 21.00% | 25.70% | |
Income tax rate, pre-tax loss from continuing operations | $ 1,939 | $ (76,240) | $ (141,853) | |
Tax cut and jobs act of 2017 discrete income tax expense (benefit) | (37,000) | |||
Estimated reclassification of NOL deferred income tax asset to refundable income taxes, CARES Act | $ 11,000 | |||
Estimated income tax benefit recognition during third quarter of fiscal year 2020, CARES Act | $ 1,000 | |||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (37,000) | |||
Foreign Country | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 19,000 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expirations period | 2020 | |||
Income tax examination, year under examination | 2013 | |||
Minimum | Foreign Country | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expirations period | 2023 | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expirations period | 2041 | |||
Income tax examination, year under examination | 2019 | |||
Maximum | Foreign Country | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expirations period | 2039 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Deferred tax assets: | ||
Operating lease liabilities | $ 22,676 | |
Amortizable goodwill and other intangibles | 17,455 | $ 22,646 |
Employee benefit accruals | 9,246 | 6,289 |
Net operating loss carryforwards | 8,484 | 7,122 |
Environmental liabilities | 7,938 | 7,164 |
State credit carryforwards | 7,933 | 8,202 |
Federal credit carryforwards | 5,116 | |
Inventory valuation methods | 2,865 | 1,748 |
Other | 7,074 | 6,405 |
Valuation allowances | (16,933) | (16,436) |
Total deferred tax assets | 71,854 | 43,140 |
Deferred tax liabilities: | ||
Accelerated depreciation and other basis differences | 39,596 | 30,716 |
Operating lease right-of-use assets | 21,104 | |
Investment in operating partnerships | 14,703 | 6,777 |
Uncertain tax positions | 4,936 | |
Prepaid expense acceleration | 2,655 | 2,263 |
Total deferred tax liabilities | 82,994 | 39,756 |
Net deferred tax (liabilities) | $ (11,140) | |
Net deferred tax assets | $ 3,384 |
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, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, as of the beginning of the year | $ 5,410 | $ 5,054 | $ 5,548 |
Additions for tax positions of prior years | 1,368 | 171 | |
Reductions for tax positions of prior years | (151) | ||
Additions for tax positions of the current year | 852 | 507 | 596 |
Reduction attributable to federal tax reform | 0 | 0 | (1,261) |
Reductions for lapse of statutes | (174) | ||
Unrecognized tax benefits, as of the end of the year | $ 7,456 | $ 5,410 | $ 5,054 |
Restructuring Charges and Oth_2
Restructuring Charges and Other Exit-Related Activities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |||
Restructuring charges and other exit-related activities | $ 8,993 | $ 365 | $ (661) |
Severance costs | 2,000 | ||
Exit-related costs | 1,000 | ||
Professional services costs | $ 6,000 |
Net (Loss) Income Per Share - S
Net (Loss) Income Per Share - Schedule of Basic and Diluted Net Income Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
(Loss) income from continuing operations | $ (2,105) | $ 58,570 | $ 159,443 | ||||||||
Net income attributable to noncontrolling interests | (1,945) | (1,977) | (3,338) | ||||||||
(Loss) income from continuing operations attributable to SSI shareholders | $ 4,017 | $ (4,926) | $ 3,882 | $ (7,023) | $ 11,621 | $ 15,682 | $ 13,030 | $ 16,260 | (4,050) | 56,593 | 156,105 |
(Loss) income from discontinued operations, net of tax | (95) | (248) | 346 | ||||||||
Net (loss) income attributable to SSI shareholders | $ 3,962 | $ (4,995) | $ 3,883 | $ (6,995) | $ 11,575 | $ 15,690 | $ 12,892 | $ 16,188 | $ (4,145) | $ 56,345 | $ 156,451 |
Computation of shares: | |||||||||||
Weighted average common shares outstanding, basic | 27,672 | 27,527 | 27,645 | ||||||||
Incremental common shares attributable to dilutive performance share, RSU and DSU awards | 695 | 944 | |||||||||
Weighted average common shares outstanding, diluted | 27,672 | 28,222 | 28,589 |
Net (Loss) Income Per Share - A
Net (Loss) Income Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 629,223 | 92,873 | 62,019 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Purchases from joint ventures | $ 11 | $ 15 | $ 16 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2018USD ($)jointventureinterest | Aug. 31, 2019 | Aug. 31, 2018jointventureinterest | Aug. 31, 2017 | Aug. 31, 2020jointventureinterest | |
Segment Reporting Information [Line Items] | |||||
Number of equity method investments | 2 | ||||
Equity method investment, ownership percentage | 50.00% | ||||
Customer Concentration Risk | Sales | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage, no external customer that accounted for revenues over | 10.00% | 10.00% | 10.00% | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Environmental remediation expense | $ | $ 1 | ||||
AMR | |||||
Segment Reporting Information [Line Items] | |||||
Number of equity method investments | 2 | 2 | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||
Number of joint venture investments | 1 | ||||
Number of equity method investments, divested in the period | 2 | ||||
CSS | |||||
Segment Reporting Information [Line Items] | |||||
Number of joint venture investments | 1 |
Segment Information - Summary o
Segment Information - Summary of Total Assets from Segments to Consolidated (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,229,927 | $ 1,160,746 |
Property, plant and equipment, net | 487,004 | 456,400 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,539,475 | 2,331,197 |
Operating Segments | AMR | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,746,170 | 1,561,267 |
Operating Segments | CSS | ||
Segment Reporting Information [Line Items] | ||
Assets | 793,305 | 769,930 |
Corporate and eliminations | ||
Segment Reporting Information [Line Items] | ||
Assets | $ (1,309,548) | $ (1,170,451) |
Segment Information - Summary_2
Segment Information - Summary of Total Assets from Segments to Consolidated (Parenthetical) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Investment in joint ventures | $ 10,057 | $ 10,276 |
Property, plant and equipment, net | 487,004 | 456,400 |
CANADA | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 16,000 | 14,000 |
AMR | ||
Segment Reporting Information [Line Items] | ||
Investment in joint ventures | 2,000 | 3,000 |
CSS | ||
Segment Reporting Information [Line Items] | ||
Investment in joint ventures | $ 8,000 | $ 7,000 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Income from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 464,594 | $ 402,683 | $ 439,482 | $ 405,584 | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 1,712,343 | $ 2,132,781 | $ 2,364,715 |
Depreciation and amortization | 58,173 | 53,336 | 49,672 | ||||||||
Capital expenditures | 82,005 | 94,613 | 77,626 | ||||||||
Operating income | $ 10,779 | $ (3,706) | $ 7,691 | $ (7,910) | $ 17,681 | $ 24,459 | $ 19,036 | $ 22,689 | 6,854 | 83,865 | 148,988 |
Restructuring charges and other exit-related activities | (8,993) | (365) | 661 | ||||||||
Interest expense | (8,669) | (8,266) | (8,983) | ||||||||
Other (expense) income, net | (124) | 641 | 1,848 | ||||||||
(Loss) income from continuing operations before income taxes | (1,939) | 76,240 | 141,853 | ||||||||
AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,300,178 | 1,673,365 | 1,884,074 | ||||||||
CSS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 412,165 | 459,416 | 480,641 | ||||||||
Operating Segments | AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,307,812 | 1,684,977 | 1,908,966 | ||||||||
Operating Segments | CSS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 413,257 | 459,416 | 480,641 | ||||||||
Less: Intersegment revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (8,726) | (11,612) | |||||||||
Less: Intersegment revenues | AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (7,634) | (11,612) | (24,892) | ||||||||
Less: Intersegment revenues | CSS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (1,092) | 0 | 0 | ||||||||
Continuing Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 58,173 | 53,336 | 49,672 | ||||||||
Capital expenditures | 82,005 | 94,613 | 77,626 | ||||||||
Operating income | 6,854 | 83,865 | 148,988 | ||||||||
Restructuring charges and other exit-related activities | (8,993) | (365) | 661 | ||||||||
Interest expense | (8,669) | (8,266) | (8,983) | ||||||||
Other (expense) income, net | (124) | 641 | 1,848 | ||||||||
(Loss) income from continuing operations before income taxes | (1,939) | 76,240 | 141,853 | ||||||||
Continuing Operations | AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 34,438 | 95,991 | 169,120 | ||||||||
Continuing Operations | CSS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 22,983 | 31,951 | 38,286 | ||||||||
Continuing Operations | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 55,618 | 50,597 | 47,288 | ||||||||
Capital expenditures | 80,900 | 94,051 | 76,699 | ||||||||
Operating income | 57,421 | 127,942 | 207,406 | ||||||||
Continuing Operations | Operating Segments | AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 43,609 | 38,816 | 35,564 | ||||||||
Capital expenditures | 62,008 | 78,706 | 67,099 | ||||||||
Continuing Operations | Operating Segments | CSS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 12,009 | 11,781 | 11,724 | ||||||||
Capital expenditures | 18,892 | 15,345 | 9,600 | ||||||||
Continuing Operations | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 2,555 | 2,739 | 2,384 | ||||||||
Capital expenditures | 1,105 | 562 | 927 | ||||||||
Continuing Operations | Corporate and eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | $ (41,574) | $ (43,712) | $ (59,079) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Operating Income from Segments to Consolidated (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Income (loss) from joint ventures | $ 834 | $ 1,452 | $ 1,953 |
AMR | Maximum | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from joint ventures | 1,000 | 1,000 | (1,000) |
CSS | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from joint ventures | $ 1,000 | $ 1,000 | $ 2,000 |
Segment Information - Schedule
Segment Information - Schedule of Revenues from External Customers By Major Product and Destination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 464,594 | $ 402,683 | $ 439,482 | $ 405,584 | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 1,712,343 | $ 2,132,781 | $ 2,364,715 |
Ferrous revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 862,490 | 1,164,719 | 1,328,447 | ||||||||
Nonferrous revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 390,298 | 468,023 | 529,466 | ||||||||
Steel Revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 336,980 | 367,956 | 367,560 | ||||||||
Retail and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 122,575 | 132,083 | 139,242 | ||||||||
Foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 910,785 | 1,141,077 | 1,354,460 | ||||||||
Domestic | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 801,558 | $ 991,704 | $ 1,010,255 |
Segment Information - Schedul_2
Segment Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 464,594 | $ 402,683 | $ 439,482 | $ 405,584 | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 1,712,343 | $ 2,132,781 | $ 2,364,715 | |
Sales | Customer Concentration Risk | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
% of Revenue | 10.00% | 10.00% | 10.00% | |||||||||
Turkey | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 222,141 | $ 262,835 | ||||||||||
Turkey | Sales | Customer Concentration Risk | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
% of Revenue | 13.00% | 11.00% | ||||||||||
Bangladesh | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 197,391 | |||||||||||
Bangladesh | Sales | Customer Concentration Risk | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
% of Revenue | 12.00% | |||||||||||
China | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 255,097 | |||||||||||
China | Sales | Customer Concentration Risk | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
% of Revenue | 11.00% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 464,594 | $ 402,683 | $ 439,482 | $ 405,584 | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 1,712,343 | $ 2,132,781 | $ 2,364,715 |
Cost of goods sold | 402,228 | 356,217 | 380,520 | 364,760 | 479,117 | 474,598 | 414,688 | 490,132 | 1,503,725 | 1,858,535 | 2,010,485 |
Operating income | 10,779 | (3,706) | 7,691 | (7,910) | 17,681 | 24,459 | 19,036 | 22,689 | 6,854 | 83,865 | 148,988 |
(Loss) income from continuing operations attributable to SSI shareholders | $ 4,017 | $ (4,926) | $ 3,882 | $ (7,023) | $ 11,621 | $ 15,682 | $ 13,030 | $ 16,260 | $ (4,050) | $ 56,593 | $ 156,105 |
Basic (loss) income per share from continuing operations attributable to SSI shareholders | $ 0.14 | $ (0.18) | $ 0.14 | $ (0.26) | $ 0.42 | $ 0.57 | $ 0.47 | $ 0.59 | $ (0.15) | $ 2.06 | $ 5.65 |
Diluted (loss) income per share from continuing operations attributable to SSI shareholders | $ 0.14 | $ (0.18) | $ 0.14 | $ (0.26) | $ 0.41 | $ 0.56 | $ 0.46 | $ 0.57 | $ (0.15) | $ 2.01 | $ 5.46 |
Net (loss) income | $ 4,578 | $ (4,717) | $ 4,504 | $ (6,565) | $ 11,967 | $ 16,440 | $ 13,297 | $ 16,618 | $ (2,200) | $ 58,322 | $ 159,789 |
Net (loss) income attributable to SSI shareholders | $ 3,962 | $ (4,995) | $ 3,883 | $ (6,995) | $ 11,575 | $ 15,690 | $ 12,892 | $ 16,188 | $ (4,145) | $ 56,345 | $ 156,451 |
Basic net (loss) income per share attributable to SSI shareholders | $ 0.14 | $ (0.18) | $ 0.14 | $ (0.25) | $ 0.42 | $ 0.57 | $ 0.47 | $ 0.59 | $ (0.15) | $ 2.05 | $ 5.66 |
Diluted net (loss) income per share attributable to SSI shareholders | $ 0.14 | $ (0.18) | $ 0.14 | $ (0.25) | $ 0.41 | $ 0.56 | $ 0.46 | $ 0.57 | $ (0.15) | $ 2 | $ 5.47 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Allowance for doubtful accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,569 | $ 2,586 | $ 2,280 |
Charges to Cost and Expenses | 66 | 74 | 323 |
Deductions | (42) | (1,091) | (17) |
Balance at End of Period | 1,593 | 1,569 | 2,586 |
Deferred tax valuation allowance | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 16,436 | 16,484 | 67,348 |
Charges to Cost and Expenses | 1,293 | 472 | 0 |
Deductions | (796) | (520) | (50,864) |
Balance at End of Period | $ 16,933 | $ 16,436 | $ 16,484 |