Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Nov. 30, 2020 | Jan. 04, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2020 | |
Entity Registrant Name | SCHNITZER STEEL INDUSTRIES, INC. | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Trading Symbol | SCHN | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000912603 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | 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, $1.00 par value | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,253,708 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 7,258 | $ 17,887 |
Accounts receivable, net of allowance for credit losses of $1,602 and $1,593 | 166,215 | 139,147 |
Inventories | 185,347 | 157,269 |
Refundable income taxes | 13,398 | 18,253 |
Prepaid expenses and other current assets | 28,812 | 30,075 |
Total current assets | 401,030 | 362,631 |
Property, plant and equipment, net of accumulated depreciation of $823,092 and $811,623 | 495,376 | 487,004 |
Operating lease right-of-use assets | 140,320 | 140,584 |
Investments in joint ventures | 10,930 | 10,057 |
Goodwill | 169,686 | 169,627 |
Intangibles, net of accumulated amortization of $3,392 and $3,528 | 4,434 | 4,585 |
Deferred income taxes | 26,083 | 27,152 |
Other assets | 29,674 | 28,287 |
Total assets | 1,277,533 | 1,229,927 |
Current liabilities: | ||
Short-term borrowings | 2,171 | 2,184 |
Accounts payable | 116,507 | 106,676 |
Accrued payroll and related liabilities | 24,871 | 41,436 |
Environmental liabilities | 7,620 | 6,302 |
Operating lease liabilities | 19,901 | 19,760 |
Other accrued liabilities | 42,350 | 47,306 |
Total current liabilities | 213,420 | 223,664 |
Deferred income taxes | 41,840 | 38,292 |
Long-term debt, net of current maturities | 141,172 | 102,235 |
Environmental liabilities, net of current portion | 47,105 | 47,162 |
Operating lease liabilities, net of current maturities | 124,225 | 125,001 |
Other long-term liabilities | 21,223 | 13,137 |
Total liabilities | 588,985 | 549,491 |
Commitments and contingencies (Note 4) | ||
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 | 35,310 | 36,616 |
Retained earnings | 658,710 | 649,863 |
Accumulated other comprehensive loss | (36,892) | (36,871) |
Total SSI shareholders’ equity | 684,582 | 676,707 |
Noncontrolling interests | 3,966 | 3,729 |
Total equity | 688,548 | 680,436 |
Total liabilities and equity | 1,277,533 | 1,229,927 |
Class A Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | 27,254 | 26,899 |
Class B Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | $ 200 | $ 200 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Current assets: | ||
Accounts receivable, allowance for credit loss | $ 1,602 | $ 1,593 |
Property, plant and equipment, accumulated depreciation | 823,092 | 811,623 |
Intangibles, accumulated amortization | $ 3,392 | $ 3,528 |
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 | 27,254,000 | 26,899,000 |
Common stock, shares outstanding | 27,254,000 | 26,899,000 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 492,107 | $ 405,584 |
Operating expense: | ||
Cost of goods sold | 420,094 | 364,760 |
Selling, general and administrative | 49,906 | 46,774 |
(Income) from joint ventures | (727) | (199) |
Asset impairment charges | 1,692 | |
Restructuring charges and other exit-related activities | 64 | 467 |
Operating income (loss) | 22,770 | (7,910) |
Interest expense | (1,780) | (1,423) |
Other (loss) income, net | (165) | 206 |
Income (loss) from continuing operations before income taxes | 20,825 | (9,127) |
Income tax (expense) benefit | (5,719) | 2,534 |
Income (loss) from continuing operations | 15,106 | (6,593) |
(Loss) income from discontinued operations, net of tax | (42) | 28 |
Net income (loss) | 15,064 | (6,565) |
Net income attributable to noncontrolling interests | (960) | (430) |
Net income (loss) attributable to SSI shareholders | $ 14,104 | $ (6,995) |
Net income (loss) per share attributable to SSI shareholders Basic: | ||
Income (loss) per share from continuing operations | $ 0.51 | $ (0.26) |
Net income (loss) per share | 0.51 | (0.25) |
Net income (loss) per share attributable to SSI shareholders Diluted: | ||
Income (loss) per share from continuing operations | 0.50 | (0.26) |
Net income (loss) per share | $ 0.50 | $ (0.25) |
Weighted average number of common shares: | ||
Basic | 27,807 | 27,515 |
Diluted | 28,485 | 27,515 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 15,064 | $ (6,565) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 239 | 211 |
Pension obligations, net | (260) | 27 |
Total other comprehensive (loss) income, net of tax | (21) | 238 |
Comprehensive income (loss) | 15,043 | (6,327) |
Less comprehensive income attributable to noncontrolling interests | (960) | (430) |
Comprehensive income (loss) attributable to SSI shareholders | $ 14,083 | $ (6,757) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass A Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Common StockClass B Common Stock | Common StockClass B Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjusted Balance | Total SSI Shareholders' Equity | Total SSI Shareholders' EquityCumulative Effect, Period of Adoption, Adjustment | Total SSI Shareholders' EquityCumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interests | Noncontrolling InterestsCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance at Aug. 31, 2019 | $ 701,296 | $ (463) | $ 700,833 | $ 26,464 | $ 26,464 | $ 200 | $ 200 | $ 33,700 | $ 33,700 | $ 675,363 | $ (463) | $ 674,900 | $ (38,763) | $ (38,763) | $ 696,964 | $ (463) | $ 696,501 | $ 4,332 | $ 4,332 | ||
Beginning balance (in shares) at Aug. 31, 2019 | 26,464 | 26,464 | 200 | 200 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income (loss) | (6,565) | (6,995) | (6,995) | 430 | |||||||||||||||||
Other comprehensive income, net of tax | 238 | 238 | 238 | ||||||||||||||||||
Distributions to noncontrolling interests | (579) | (579) | |||||||||||||||||||
Restricted stock withheld for taxes | (5,845) | $ (274) | (5,571) | (5,845) | |||||||||||||||||
Restricted stock withheld for taxes (in shares) | (274) | ||||||||||||||||||||
Issuance of restricted stock | $ 753 | (753) | |||||||||||||||||||
Issuance of restricted stock (in shares) | 753 | ||||||||||||||||||||
Share-based compensation cost | 2,152 | 2,152 | 2,152 | ||||||||||||||||||
Dividends | (5,198) | (5,198) | (5,198) | ||||||||||||||||||
Ending balance at Nov. 30, 2019 | 685,036 | $ 26,943 | $ 200 | 29,528 | 662,707 | (38,525) | 680,853 | 4,183 | |||||||||||||
Ending balance (in shares) at Nov. 30, 2019 | 26,943 | 200 | |||||||||||||||||||
Beginning balance at Aug. 31, 2020 | 680,436 | $ 26,899 | $ 200 | 36,616 | 649,863 | (36,871) | 676,707 | 3,729 | |||||||||||||
Beginning balance (in shares) at Aug. 31, 2020 | 26,899 | 200 | 26,899 | 200 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income (loss) | 15,064 | 14,104 | 14,104 | 960 | |||||||||||||||||
Other comprehensive income, net of tax | (21) | (21) | (21) | ||||||||||||||||||
Distributions to noncontrolling interests | (723) | (723) | |||||||||||||||||||
Restricted stock withheld for taxes | (3,970) | $ (188) | (3,782) | (3,970) | |||||||||||||||||
Restricted stock withheld for taxes (in shares) | (188) | ||||||||||||||||||||
Issuance of restricted stock | $ 543 | (543) | |||||||||||||||||||
Issuance of restricted stock (in shares) | 543 | ||||||||||||||||||||
Share-based compensation cost | 3,019 | 3,019 | 3,019 | ||||||||||||||||||
Dividends | (5,257) | (5,257) | (5,257) | ||||||||||||||||||
Ending balance at Nov. 30, 2020 | $ 688,548 | $ 27,254 | $ 200 | $ 35,310 | $ 658,710 | $ (36,892) | $ 684,582 | $ 3,966 | |||||||||||||
Ending balance (in shares) at Nov. 30, 2020 | 27,254 | 200 | 27,254 | 200 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends per common share | $ 0.1875 | $ 0.1875 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 15,064 | $ (6,565) |
Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities: | ||
Asset impairment charges | 1,692 | |
Exit-related asset impairments | 117 | |
Depreciation and amortization | 14,826 | 14,087 |
Deferred income taxes | 4,770 | (2,456) |
Undistributed equity in earnings of joint ventures | (727) | (199) |
Share-based compensation expense | 2,984 | 2,152 |
Gain on the disposal of assets, net | (61) | (386) |
Unrealized foreign exchange loss (gain), net | 82 | (16) |
Credit loss, net | 33 | 32 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (29,116) | 28,202 |
Inventories | (25,928) | 11,870 |
Income taxes | 5,324 | (227) |
Prepaid expenses and other current assets | 738 | (356) |
Other long-term assets | (737) | (57) |
Operating lease assets and liabilities | (375) | 105 |
Accounts payable | 19,015 | (28,953) |
Accrued payroll and related liabilities | (12,529) | (11,159) |
Other accrued liabilities | (5,204) | 3,771 |
Environmental liabilities | 1,252 | (553) |
Other long-term liabilities | 3,158 | 32 |
Net cash (used in) provided by operating activities | (7,431) | 11,133 |
Cash flows from investing activities: | ||
Capital expenditures | (31,827) | (23,973) |
Proceeds from sale of assets | 80 | 2 |
Net cash used in investing activities | (31,747) | (23,971) |
Cash flows from financing activities: | ||
Borrowings from long-term debt | 92,714 | 114,339 |
Repayment of long-term debt | (53,781) | (92,190) |
Taxes paid related to net share settlement of share-based payment awards | (3,970) | (5,845) |
Distributions to noncontrolling interests | (723) | (579) |
Dividends paid | (5,680) | (5,653) |
Net cash provided by financing activities | 28,560 | 10,072 |
Effect of exchange rate changes on cash | (11) | 13 |
Net decrease in cash and cash equivalents | (10,629) | (2,753) |
Cash and cash equivalents as of beginning of period | 17,887 | 12,377 |
Cash and cash equivalents as of end of period | 7,258 | 9,624 |
Cash paid during the period for: | ||
Interest | 1,364 | 885 |
Income taxes (refunded) paid, net | (4,389) | 104 |
Schedule of noncash investing and financing transactions: | ||
Purchases of property, plant and equipment included in current liabilities | $ 11,412 | $ 8,106 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements of Schnitzer Steel Industries, Inc. and its majority-owned and wholly-owned subsidiaries (the “Company”) have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10-Q, including Article 10 of Regulation S-X. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. In the opinion of management, all normal, recurring adjustments considered necessary for a fair statement have been included. Management suggests that these Unaudited Condensed Consolidated Financial Statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020. The results for the three months ended November 30, 2020 and 2019 are not necessarily indicative of the results of operations for the entire fiscal year. Segment Reporting The Company acquires and recycles ferrous and nonferrous scrap metal for sale to foreign and domestic metal producers, processors and brokers, and it procures salvaged vehicles and sells serviceable used auto parts from these vehicles through a network of self-service auto parts stores. Most of these auto parts stores supply the Company’s shredding facilities with auto bodies that are processed into saleable recycled scrap metal. The Company also produces a range of finished steel long products at its steel mini-mill using ferrous recycled scrap metal primarily sourced internally from its recycling and joint venture operations and other raw materials. 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. Prior to the first quarter of fiscal 2021, the Company’s internal organizational and reporting structure included two operating and reportable segments: the Auto and Metals Recycling (“AMR”) business and the Cascade Steel and Scrap (“CSS”) business. In the first quarter of fiscal 2021, in accordance with its plan announced in April 2020, the Company completed its transition to a new internal organizational and reporting structure reflecting a functionally-based, integrated model. The Company consolidated its operations, sales, services and other functional capabilities at an enterprise level reflecting enhanced focus by management on optimizing the Company’s vertically integrated value chain. This change resulted in a realignment of how the Chief Executive Officer, who is considered the Company’s chief operating decision-maker, reviews performance and makes decisions on resource allocation, supporting a single Accounting Change As of the beginning of the first quarter of fiscal 2020, the Company adopted an accounting standards update that requires a lessee to recognize a lease liability and a lease right-of-use asset on its balance sheet for all leases greater than 12 months, including those classified as operating leases. The Company adopted the new lease accounting standard using the modified retrospective transition method, whereby it applied the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2019. Such cumulative-effect adjustment for the Company was less than $1 million, which is presented separately in the Unaudited Condensed Consolidated Statement of Equity for the three months ended November 30, 2019. Cash and Cash Equivalents Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $27 million and $20 Accounts Receivable, net Accounts receivable represent amounts primarily due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for credit losses, are recorded at the invoiced amount and do not bear interest. The Company extends credit to customers under contracts containing customary and explicit payment terms, and payment is generally required within 30 to 60 days of shipment. Nonferrous export sales typically require a deposit prior to shipment. Historically, almost all of the Company’s ferrous export sales have been made with letters of credit. Ferrous and nonferrous metal sales to domestic customers and finished steel sales are generally made on open account, and a portion of these sales are covered by credit insurance. The Company evaluates the collectability 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. Management evaluates the aging of customer receivable balances, the financial condition of the Company’s customers, historical collection rates and economic trends to estimate the amount of customer receivables that may not be collected in the future and records a provision for expected credit losses. Accounts are written off when all efforts to collect have been exhausted. 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 Unaudited Condensed Consolidated Statements of Cash Flows and totaled $2 million for each of Prepaid Expenses The Company’s prepaid expenses, reported within prepaid expenses and other current assets in the Unaudited Condensed Consolidated Balance Sheets, totaled $22 million and $23 million as of November 30, 2020 and August 31, 2020, respectively, and consisted primarily of deposits on capital projects, prepaid services, prepaid insurance 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, capitalized implementation costs for cloud computing arrangements, debt issuance costs, and notes and other contractual receivables. Other assets are reported within either prepaid expenses and other current assets or other assets in the Unaudited Condensed Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. 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 reported within other assets in the Unaudited Condensed Consolidated Balance Sheets. The carrying value of the investment was $ 6 million 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. The segment realignment completed in the first quarter of fiscal 2021 described above in this Note under “Segment Reporting” did not significantly impact the composition of the Company’s asset groups. 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 o f $250 thousand Recent Accounting Pronouncements The Company does not expect that its adoption in the future of any recently issued accounting pronouncements will have a material impact on its consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2020 | |
Inventory Net [Abstract] | |
Inventories | Note 2 - Inventories Inventories consisted of the following (in thousands): November 30, 2020 August 31, 2020 Processed and unprocessed scrap metal $ 84,527 $ 63,058 Semi-finished goods 7,627 6,909 Finished goods 49,567 44,476 Supplies 43,626 42,826 Inventories $ 185,347 $ 157,269 |
Goodwill
Goodwill | 3 Months Ended |
Nov. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 3 - Goodwill The Company evaluates goodwill for impairment annually on July 1 and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. 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. As of August 31, 2020, the balance of the Company’s goodwill was $170 million, and all but $1 million of such balance was carried by a single In connection with the segment realignment and redefinition of the Company's reporting units effective as of September 1, 2020, management evaluated if it was more likely than not that the fair value of any of the either legacy or new reporting units with allocated goodwill was below its carrying value as of September 1, 2020, which would indicate a triggering event requiring a goodwill impairment test. Based on management's assessment as of September 1, 2020, it was not more likely than not that the fair value of each reporting unit with allocated goodwill was below its carrying value. The Company did not record a goodwill impairment charge in any of the periods presented. The gross change in the carrying amount of goodwill for the three months ended November 30, 2020 was as follows (in thousands): Goodwill August 31, 2020 $ 169,627 Foreign currency translation adjustment 59 November 30, 2020 $ 169,686 Accumulated goodwill impairment charges were $471 million as of November 30, 2020 and August 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 4 - Commitments and Contingencies Contingencies - Environmental The Company evaluates the adequacy of its environmental liabilities on a quarterly basis. Adjustments to the liabilities are made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or expenditures are made for which liabilities were established. Changes in the Company’s environmental liabilities for the three months ended November 30, 2020 were as follows (in thousands): Balance as of September 1, 2020 Liabilities Established (Released), Net Payments and Other Balance as of November 30, 2020 Short-Term Long-Term $ 53,464 $ 2,347 $ (1,086 ) $ 54,725 $ 7,620 $ 47,105 As of November 30, 2020 and August 31, 2020, the Company had environmental liabilities of $55 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. 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. The Company’s environmental liabilities as of November 30, 2020 and August 31, 2020 included $6 million and $ 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 or settlement of 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 November 30, 2020 and August 31, 2020, 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 d under oversight of the applicable state regulatory agency. As of November 30, 2020 and August 31, 2020, the Company had $4 million between zero and $28 million based However, subsequent to the development of those remedial alternatives, the Company performed additional investigative activities under new state requirements that have the potential to impact the required remedial actions and associated cost estimates pending further analysis and discussion by the Company and regulators. In addition, the Company’s loss contingencies as of November 30, 2020 and August 31, 2020 million related to environmental matters supplies. The decrease in the loss contingency accrual in the first quarter of fiscal 2021 primarily reflects payment during the quarter of penalties in the amount of $2.7 million pursuant to the previously agreed settlement. It is reasonably Summary - Environmental Contingencies With respect to environmental contingencies other than the Portland Harbor Superfund site and the Other Legacy Environmental Loss Contingencies, which are discussed separately above, management currently believes that adequate provision has been made for the potential impact of its environmental contingencies. Historically, the amounts the Company has ultimately paid for such remediation activities have not been material in any given period, but there can be no assurance that such amounts paid will not be material in the future. Contingencies - Other In February 2019, the Company received a letter sent on behalf of the District Attorneys for six counties in California notifying the Company of a joint investigation into the alleged mishandling of hazardous materials and hazardous waste and into the Company’s disposal practices, as well as alleged water pollution violations, at various retail auto parts stores within California and requesting a meeting to discuss the alleged violations. The Company has implemented additional compliance measures, and based on these additional actions and the initial discussions with the District Attorneys’ offices, the Company expects to negotiate a settlement of this matter that will address the concerns raised in this joint investigation. There has been no discussion to date of potential monetary sanctions. T 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 | 3 Months Ended |
Nov. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 5 - Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss, net of tax, comprise the following (in thousands): Three Months Ended November 30, 2020 Three Months Ended November 30, 2019 Foreign Currency Translation Adjustments Pension Obligations, Net Total Foreign Currency Translation Adjustments Pension Obligations, Net Total Balances - September 1 (Beginning of period) $ (34,184 ) $ (2,687 ) $ (36,871 ) $ (35,689 ) $ (3,074 ) $ (38,763 ) Other comprehensive income (loss) before reclassifications 239 (385 ) (146 ) 211 (17 ) 194 Income tax benefit (expense) — 87 87 — 4 4 Other comprehensive income (loss) before reclassifications, net of tax 239 (298 ) (59 ) 211 (13 ) 198 Amounts reclassified from accumulated other comprehensive loss — 49 49 — 52 52 Income tax benefit — (11 ) (11 ) — (12 ) (12 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 38 38 — 40 40 Net periodic other comprehensive income (loss) 239 (260 ) (21 ) 211 27 238 Balances - November 30 (End of period) $ (33,945 ) $ (2,947 ) $ (36,892 ) $ (35,478 ) $ (3,047 ) $ (38,525 ) Reclassifications from accumulated other comprehensive loss to earnings, both individually and in the aggregate, were not material to the impacted captions in the Unaudited Condensed Consolidated Statements of Operations in all periods presented. |
Revenue
Revenue | 3 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 6 - Revenue Disaggregation of Revenues The table below illustrates the Company’s revenues disaggregated by major product and sales destination (in thousands): Three Months Ended November 30, 2020 2019 Major product information: Ferrous revenues $ 252,206 $ 199,898 Nonferrous revenues 119,709 97,841 Steel revenues ( 1) 88,414 77,325 Retail and other revenues 31,778 30,520 Total revenues $ 492,107 $ 405,584 Revenues based on sales destination: Foreign $ 268,399 $ 218,482 Domestic 223,708 187,102 Total revenues $ 492,107 $ 405,584 (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 November 30, 2020 and August 31, 2020, receivables from contracts with customers, net of an allowance for credit losses, totaled $161 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 Unaudited Condensed Consolidated Balance Sheets and totaled $7 million and $8 million as of November 30, 2020 and August 31, 2020, respectively. Unsatisfied performance obligations reflected in these contract liabilities relate to contracts with original expected durations of one year or less and, therefore, are not disclosed. During the three months ended November 30, 2020, the Company reclassified $5 million in customer deposits as of August 31, 2020 to revenues as a result of satisfying performance obligations during the period. During the three months ended November 30, 2019, the Company reclassified $2 million in customer deposits as of August 31, 2019 to revenues as a result of satisfying performance obligations during the period. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Nov. 30, 2020 | |
Share Based Compensation [Abstract] | |
Share-based Compensation | Note 7 - Share-Based Compensation In the first quarter of fiscal 2021, as part of the annual awards under the Company’s Long-Term Incentive Plan, the Compensation Committee of the Company’s Board of Directors granted 317,760 restricted stock units (“RSUs”) and 316,649 performance share awards to the Company’s key employees and officers under the Company’s 1993 Amended and Restated Stock Incentive Plan. The RSUs have a five-year five-year The performance share awards comprise two separate and distinct awards with different vesting conditions. Awards vest if the three-year The Company granted 157,791 performance share awards based on its relative TSR metric over a performance period spanning November 9, 2020 to August 31, 2023. The Company estimates the fair value of TSR awards using a Monte-Carlo simulation model utilizing several key assumptions, Percentage Expected share price volatility (SSI) 48.5 % Expected share price volatility (Peer group) 54.9 % Expected correlation to peer group companies 44.5 % Risk-free rate of return 0.23 % The estimated fair value of the TSR awards at the date of grant was $4 million. 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. The Company granted 158,858 performance share awards based on its ROCE for the three-year 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 performance conditions is probable at each reporting date. the end of the service period, all related compensation cost previously recognized is reversed. Performance share awards will be paid in Class A common stock as soon as practicable after the end of the requisite service period and vesting date of October 31, 2023. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 - Income Taxes Effective Tax Rate The Company’s effective tax rate from continuing operations for the first quarter of fiscal 2021 was an expense on pre-tax income of 27.5%, compared to a benefit on a pre-tax loss of 27.8% for the prior year period. For each quarterly period, the Company’s effective tax rate from continuing operations was higher than the U.S. federal statutory rate of 21% primarily due to the aggregate impact of state taxes and the impact of permanent differences from non-deductible expenses on the projected annual effective tax rate applied to the quarterly results. 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. The Company maintains valuation allowances against certain state, Canadian and all Puerto Rican deferred tax assets. 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 2020 remain subject to examination under the statute of limitations. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 9 - Net Income (Loss) Per Share The following table sets forth the information used to compute basic and diluted net income (loss) per share attributable to SSI shareholders (in thousands): Three Months Ended November 30, 2020 2019 Income (loss) from continuing operations $ 15,106 $ (6,593 ) Net income attributable to noncontrolling interests (960 ) (430 ) Income (loss) from continuing operations attributable to SSI shareholders 14,146 (7,023 ) (Loss) income from discontinued operations, net of tax (42 ) 28 Net income (loss) attributable to SSI shareholders $ 14,104 $ (6,995 ) Computation of shares: Weighted average common shares outstanding, basic 27,807 27,515 Incremental common shares attributable to dilutive performance share awards, restricted stock units and deferred stock units 678 — Weighted average common shares outstanding, diluted 28,485 27,515 Common stock equivalent shares of 153,374 and |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Nov. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 - Related Party Transactions The Company purchases recycled metal from its joint venture operations at prices that approximate fair market value. These purchases totaled $3 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements of Schnitzer Steel Industries, Inc. and its majority-owned and wholly-owned subsidiaries (the “Company”) have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10-Q, including Article 10 of Regulation S-X. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. In the opinion of management, all normal, recurring adjustments considered necessary for a fair statement have been included. Management suggests that these Unaudited Condensed Consolidated Financial Statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020. The results for the three months ended November 30, 2020 and 2019 are not necessarily indicative of the results of operations for the entire fiscal year. |
Segment Reporting | Segment Reporting The Company acquires and recycles ferrous and nonferrous scrap metal for sale to foreign and domestic metal producers, processors and brokers, and it procures salvaged vehicles and sells serviceable used auto parts from these vehicles through a network of self-service auto parts stores. Most of these auto parts stores supply the Company’s shredding facilities with auto bodies that are processed into saleable recycled scrap metal. The Company also produces a range of finished steel long products at its steel mini-mill using ferrous recycled scrap metal primarily sourced internally from its recycling and joint venture operations and other raw materials. 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. Prior to the first quarter of fiscal 2021, the Company’s internal organizational and reporting structure included two operating and reportable segments: the Auto and Metals Recycling (“AMR”) business and the Cascade Steel and Scrap (“CSS”) business. In the first quarter of fiscal 2021, in accordance with its plan announced in April 2020, the Company completed its transition to a new internal organizational and reporting structure reflecting a functionally-based, integrated model. The Company consolidated its operations, sales, services and other functional capabilities at an enterprise level reflecting enhanced focus by management on optimizing the Company’s vertically integrated value chain. This change resulted in a realignment of how the Chief Executive Officer, who is considered the Company’s chief operating decision-maker, reviews performance and makes decisions on resource allocation, supporting a single |
Accounting Change | Accounting Change As of the beginning of the first quarter of fiscal 2020, the Company adopted an accounting standards update that requires a lessee to recognize a lease liability and a lease right-of-use asset on its balance sheet for all leases greater than 12 months, including those classified as operating leases. The Company adopted the new lease accounting standard using the modified retrospective transition method, whereby it applied the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2019. Such cumulative-effect adjustment for the Company was less than $1 million, which is presented separately in the Unaudited Condensed Consolidated Statement of Equity for the three months ended November 30, 2019. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $27 million and $20 |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable represent amounts primarily due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for credit losses, are recorded at the invoiced amount and do not bear interest. The Company extends credit to customers under contracts containing customary and explicit payment terms, and payment is generally required within 30 to 60 days of shipment. Nonferrous export sales typically require a deposit prior to shipment. Historically, almost all of the Company’s ferrous export sales have been made with letters of credit. Ferrous and nonferrous metal sales to domestic customers and finished steel sales are generally made on open account, and a portion of these sales are covered by credit insurance. The Company evaluates the collectability 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. Management evaluates the aging of customer receivable balances, the financial condition of the Company’s customers, historical collection rates and economic trends to estimate the amount of customer receivables that may not be collected in the future and records a provision for expected credit losses. Accounts are written off when all efforts to collect have been exhausted. 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 Unaudited Condensed Consolidated Statements of Cash Flows and totaled $2 million for each of |
Other Assets | Prepaid Expenses The Company’s prepaid expenses, reported within prepaid expenses and other current assets in the Unaudited Condensed Consolidated Balance Sheets, totaled $22 million and $23 million as of November 30, 2020 and August 31, 2020, respectively, and consisted primarily of deposits on capital projects, prepaid services, prepaid insurance 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, capitalized implementation costs for cloud computing arrangements, debt issuance costs, and notes and other contractual receivables. Other assets are reported within either prepaid expenses and other current assets or other assets in the Unaudited Condensed Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. 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 reported within other assets in the Unaudited Condensed Consolidated Balance Sheets. The carrying value of the investment was $ 6 million |
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. The segment realignment completed in the first quarter of fiscal 2021 described above in this Note under “Segment Reporting” did not significantly impact the composition of the Company’s asset groups. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, 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 o f $250 thousand |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company does not expect that its adoption in the future of any recently issued accounting pronouncements will have a material impact on its consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Inventory Net [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): November 30, 2020 August 31, 2020 Processed and unprocessed scrap metal $ 84,527 $ 63,058 Semi-finished goods 7,627 6,909 Finished goods 49,567 44,476 Supplies 43,626 42,826 Inventories $ 185,347 $ 157,269 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Nov. 30, 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 three months ended November 30, 2020 was as follows (in thousands): Goodwill August 31, 2020 $ 169,627 Foreign currency translation adjustment 59 November 30, 2020 $ 169,686 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Environmental Liabilities | Changes in the Company’s environmental liabilities for the three months ended November 30, 2020 were as follows (in thousands): Balance as of September 1, 2020 Liabilities Established (Released), Net Payments and Other Balance as of November 30, 2020 Short-Term Long-Term $ 53,464 $ 2,347 $ (1,086 ) $ 54,725 $ 7,620 $ 47,105 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss, net of tax, comprise the following (in thousands): Three Months Ended November 30, 2020 Three Months Ended November 30, 2019 Foreign Currency Translation Adjustments Pension Obligations, Net Total Foreign Currency Translation Adjustments Pension Obligations, Net Total Balances - September 1 (Beginning of period) $ (34,184 ) $ (2,687 ) $ (36,871 ) $ (35,689 ) $ (3,074 ) $ (38,763 ) Other comprehensive income (loss) before reclassifications 239 (385 ) (146 ) 211 (17 ) 194 Income tax benefit (expense) — 87 87 — 4 4 Other comprehensive income (loss) before reclassifications, net of tax 239 (298 ) (59 ) 211 (13 ) 198 Amounts reclassified from accumulated other comprehensive loss — 49 49 — 52 52 Income tax benefit — (11 ) (11 ) — (12 ) (12 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 38 38 — 40 40 Net periodic other comprehensive income (loss) 239 (260 ) (21 ) 211 27 238 Balances - November 30 (End of period) $ (33,945 ) $ (2,947 ) $ (36,892 ) $ (35,478 ) $ (3,047 ) $ (38,525 ) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Major Product and Sales Destination | The table below illustrates the Company’s revenues disaggregated by major product and sales destination (in thousands): Three Months Ended November 30, 2020 2019 Major product information: Ferrous revenues $ 252,206 $ 199,898 Nonferrous revenues 119,709 97,841 Steel revenues ( 1) 88,414 77,325 Retail and other revenues 31,778 30,520 Total revenues $ 492,107 $ 405,584 Revenues based on sales destination: Foreign $ 268,399 $ 218,482 Domestic 223,708 187,102 Total revenues $ 492,107 $ 405,584 (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) | 3 Months Ended |
Nov. 30, 2020 | |
Share Based Compensation [Abstract] | |
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, Percentage Expected share price volatility (SSI) 48.5 % Expected share price volatility (Peer group) 54.9 % Expected correlation to peer group companies 44.5 % Risk-free rate of return 0.23 % |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 3 Months Ended |
Nov. 30, 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 (loss) per share attributable to SSI shareholders (in thousands): Three Months Ended November 30, 2020 2019 Income (loss) from continuing operations $ 15,106 $ (6,593 ) Net income attributable to noncontrolling interests (960 ) (430 ) Income (loss) from continuing operations attributable to SSI shareholders 14,146 (7,023 ) (Loss) income from discontinued operations, net of tax (42 ) 28 Net income (loss) attributable to SSI shareholders $ 14,104 $ (6,995 ) Computation of shares: Weighted average common shares outstanding, basic 27,807 27,515 Incremental common shares attributable to dilutive performance share awards, restricted stock units and deferred stock units 678 — Weighted average common shares outstanding, diluted 28,485 27,515 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020USD ($)segment | Nov. 30, 2019USD ($) | Aug. 31, 2020USD ($)segment | Sep. 01, 2019USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Number of operating segments | segment | 1 | 2 | ||
Number of reportable segments | segment | 1 | 2 | ||
Retained earnings, cumulative-effect adjustment | $ 658,710,000 | $ 649,863,000 | ||
Bank Overdrafts | 27,000,000 | 20,000,000 | ||
Repayment of Advances with Scrap Metal | 2,000,000 | $ 2,000,000 | ||
Investment, Original Cost | 6,000,000 | |||
Cash, FDIC Insured Amount | 250,000 | |||
Prepaid Expenses and Other Current Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Prepaid expense | 22,000,000 | 23,000,000 | ||
Other Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Investment, Carrying Value | $ 6,000,000 | $ 6,000,000 | ||
Accounting Standards Update 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Retained earnings, cumulative-effect adjustment | $ 1,000,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Inventory Net [Abstract] | ||
Processed and unprocessed scrap metal | $ 84,527 | $ 63,058 |
Semi-finished goods | 7,627 | 6,909 |
Finished goods | 49,567 | 44,476 |
Supplies | 43,626 | 42,826 |
Inventories | $ 185,347 | $ 157,269 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020USD ($)reporting_unitRegional | Aug. 31, 2020USD ($)reporting_unit | Jul. 01, 2020 | |
Goodwill [Line Items] | |||
Goodwill | $ 169,686 | $ 169,627 | |
Number of reporting units | reporting_unit | 3 | ||
Number of regional groups | Regional | 2 | ||
Goodwill, impaired, accumulated impairment loss | $ 471,000 | $ 471,000 | |
AMR | |||
Goodwill [Line Items] | |||
Number of reporting units | reporting_unit | 1 | ||
AMR | Single Reporting Unit Carried Out | |||
Goodwill [Line Items] | |||
Goodwill | $ 1,000 | ||
Estimated fair value of reporting unit exceeded carrying amount | 29.00% |
Goodwill - Schedule of Gross Ch
Goodwill - Schedule of Gross Change in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 169,627 |
Foreign currency translation adjustment | 59 |
Goodwill, end of period | $ 169,686 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Environmental Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Aug. 31, 2020 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning Balance | $ 53,464 | |
Liabilities Established (Released), Net | 2,347 | |
Payments and Other | (1,086) | |
Ending Balance | 54,725 | |
Short-Term | 7,620 | $ 6,302 |
Long-Term | $ 47,105 | $ 47,162 |
Commitments and Contingencies_2
Commitments and Contingencies - Recycling Operations - Recycling Operations (Details) $ in Thousands | May 04, 2020USD ($) | Dec. 31, 2017potentially_responsible_party | Jan. 31, 2017USD ($) | Nov. 30, 2020USD ($) | May 31, 2020USD ($) | Nov. 30, 2019Subarea | Aug. 31, 2018USD ($) | Aug. 31, 2007USD ($) | Aug. 31, 2020USD ($) | Jan. 30, 2017potentially_responsible_partyparty | Aug. 31, 2016USD ($) |
Loss Contingencies [Line Items] | |||||||||||
Accrual for Environmental Loss Contingencies | $ 54,725 | $ 53,464 | |||||||||
Parties named in Litigation | party | 30 | ||||||||||
Liabilities Established | 2,347 | ||||||||||
Other Auto and Metals Recycling Sites | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Accrual for Environmental Loss Contingencies | 55,000 | 53,000 | |||||||||
Portland Harbor Superfund Site | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Accrual for Environmental Loss Contingencies | $ 6,000 | $ 4,000 | |||||||||
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 ($) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Aug. 31, 2018 | Aug. 31, 2020 | |
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 54,725,000 | $ 53,464,000 | |
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 | 5,000,000 | $ 8,000,000 | |
Payments for penalties | 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 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | $ 680,436 | $ 701,296 |
Total other comprehensive (loss) income, net of tax | (21) | 238 |
Ending balance | 688,548 | 685,036 |
Foreign Currency Translation Adjustments | ||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (34,184) | (35,689) |
Other comprehensive income (loss) before reclassifications | 239 | 211 |
Income tax benefit (expense) | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 239 | 211 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Income tax benefit | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Total other comprehensive (loss) income, net of tax | 239 | 211 |
Ending balance | (33,945) | (35,478) |
Pension Obligations, net | ||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (2,687) | (3,074) |
Other comprehensive income (loss) before reclassifications | (385) | (17) |
Income tax benefit (expense) | 87 | 4 |
Other comprehensive income (loss) before reclassifications, net of tax | (298) | (13) |
Amounts reclassified from accumulated other comprehensive loss | 49 | 52 |
Income tax benefit | (11) | (12) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 38 | 40 |
Total other comprehensive (loss) income, net of tax | (260) | 27 |
Ending balance | (2,947) | (3,047) |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | ||
Beginning balance | (36,871) | (38,763) |
Other comprehensive income (loss) before reclassifications | (146) | 194 |
Income tax benefit (expense) | 87 | 4 |
Other comprehensive income (loss) before reclassifications, net of tax | (59) | 198 |
Amounts reclassified from accumulated other comprehensive loss | 49 | 52 |
Income tax benefit | (11) | (12) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 38 | 40 |
Total other comprehensive (loss) income, net of tax | (21) | 238 |
Ending balance | $ (36,892) | $ (38,525) |
Revenue - Summary of Revenues D
Revenue - Summary of Revenues Disaggregated by Major Product and Sales Destination (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 492,107 | $ 405,584 |
Ferrous Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 252,206 | 199,898 |
Nonferrous Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 119,709 | 97,841 |
Steel Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 88,414 | 77,325 |
Retail and Other Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 31,778 | 30,520 |
Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 268,399 | 218,482 |
Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 223,708 | $ 187,102 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |||
Receivables from contracts with customers, net of allowance for credit losses | $ 161 | $ 135 | |
Percentage of receivables from contracts with customers of accounts receivable | 97.00% | 97.00% | |
Contract liabilities | $ 7 | $ 8 | |
Customer deposits reclassified to revenue | $ 5 | $ 2 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) $ in Millions | 3 Months Ended |
Nov. 30, 2020USD ($)shares | |
Restricted Stock Units (“RSUs”) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 317,760 |
Vesting term | 5 years |
Vesting percentage per year | 20.00% |
Shares granted, fair value | $ | $ 7 |
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 |
Performance Shares (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 316,649 |
Share-based compensation arrangement by share-based payment award, award requisite performance period | 3 years |
Performance Shares (PSUs) | Total Shareholder Return (TSR) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 157,791 |
Shares granted, fair value | $ | $ 4 |
Performance Shares (PSUs) | Return on Capital Employed (ROCE) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 158,858 |
Share-based compensation arrangement by share-based payment award, award requisite performance period | 3 years |
Shares granted, fair value | $ | $ 4 |
Performance Shares (PSUs) | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based awards award payouts threshold | 200.00% |
Performance Shares (PSUs) | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based awards award payouts threshold | 50.00% |
Share-based Compensation - Summ
Share-based Compensation - Summary of Fair Value using Monte-Carlo Simulation Model Utilizing Several Key Assumptions (Details) - Total Shareholder Return (TSR) | 3 Months Ended |
Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected share price volatility | 48.50% |
Risk-free rate of return | 0.23% |
Peer Group | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected share price volatility | 54.90% |
Expected correlation | 44.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 27.50% | (27.80%) |
Federal statutory rate | 21.00% |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Income (loss) from continuing operations | $ 15,106 | $ (6,593) |
Net income attributable to noncontrolling interests | (960) | (430) |
Income (loss) from continuing operations attributable to SSI shareholders | 14,146 | (7,023) |
(Loss) income from discontinued operations, net of tax | (42) | 28 |
Net income (loss) attributable to SSI shareholders | $ 14,104 | $ (6,995) |
Computation of shares: | ||
Weighted average common shares outstanding, basic | 27,807 | 27,515 |
Incremental common shares attributable to dilutive performance share awards, restricted stock units and deferred stock units | 678 | |
Weighted average common shares outstanding, diluted | 28,485 | 27,515 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 153,374 | 865,354 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Corporate Joint Venture | ||
Related Party Transaction [Line Items] | ||
Purchases from joint ventures | $ 3 | $ 3 |