Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Nov. 30, 2013 | Jan. 03, 2014 | |
Entity Information [Line Items] | ' | ' |
Trading Symbol | 'CMC | ' |
Entity Registrant Name | 'COMMERCIAL METALS CO | ' |
Entity Central Index Key | '0000022444 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Nov-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--08-31 | ' |
Entity Tax Identification Number | '750725338 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Common Stock, Shares Outstanding | ' | 117,310,716 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Net sales | $1,682,891 | $1,749,515 |
Costs and expenses: | ' | ' |
Cost of goods sold | 1,501,798 | 1,562,850 |
Selling, general and administrative expenses | 114,463 | 124,609 |
Interest expense | 19,578 | 17,024 |
Gain on sale of cost method investment | 0 | -26,088 |
Total costs and expenses | 1,635,839 | 1,678,395 |
Earnings from continuing operations before income taxes | 47,052 | 71,120 |
Income taxes | 15,091 | 22,189 |
Earnings from continuing operations | 31,961 | 48,931 |
Earnings from discontinued operations before income taxes | 22,845 | 1,250 |
Income taxes | 8,887 | 462 |
Earnings from discontinued operations | 13,958 | 788 |
Net earnings | 45,919 | 49,719 |
Less net earnings attributable to noncontrolling interests | 0 | 2 |
Net earnings attributable to CMC | $45,919 | $49,717 |
Basic earnings per share attributable to CMC: | ' | ' |
Earnings from continuing operations | $0.27 | $0.42 |
Earnings from discontinued operations | $0.12 | $0.01 |
Net earnings | $0.39 | $0.43 |
Diluted earnings per share attributable to CMC: | ' | ' |
Earnings from continuing operations | $0.27 | $0.42 |
Earnings from discontinued operations | $0.12 | $0 |
Net earnings | $0.39 | $0.42 |
Cash dividends per share | $0.12 | $0.12 |
Average basic shares outstanding | 117,070,499 | 116,336,504 |
Average diluted shares outstanding | 118,156,611 | 117,093,627 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Net earnings | $45,919 | $49,719 |
Other comprehensive income, net of income taxes: | ' | ' |
Foreign currency translation adjustment and other, net of income taxes of $2,077 and $11,792 | 19,442 | 21,900 |
Net unrealized gain (loss) on derivatives: | ' | ' |
Unrealized holding gain (loss), net of income taxes of $(449) and $88 | -1,617 | 317 |
Reclassification for loss (gain) included in net earnings, net of income taxes of $181 and $(49) | 980 | -122 |
Net unrealized gain (loss) on derivatives, net of income taxes of $(268) and $39 | -637 | 195 |
Defined benefit obligation: | ' | ' |
Net gain, net of income taxes of $296 and $0 | 550 | 0 |
Amortization of prior service cost (credit), net of income taxes of $(1) and $0 | -2 | 2 |
Adjustment from plan changes, net of income taxes of $0 and $308 | 0 | 1,315 |
Defined benefit obligation, net of income taxes of $295 and $308 | 548 | 1,317 |
Other comprehensive income | 19,353 | 23,412 |
Comprehensive income | $65,272 | $73,131 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Income taxes, foreign currency translation adjustment and other | $2,077 | $11,792 |
Income taxes, unrealized holding gain (loss) on derivatives | -449 | 88 |
Income taxes, reclassification for loss (gain) on derivatives included in net earnings | 181 | -49 |
Income taxes, net unrealized gain (loss) on derivatives | -268 | 39 |
Income taxes, net gain of defined benefit obligation | 296 | 0 |
Income taxes, amortization of prior service cost (credit) of defined benefit obligation | -1 | 0 |
Income taxes, adjustment from plan changes of defined benefit obligation | 0 | 308 |
Income taxes, defined benefit obligation | $295 | $308 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $515,473 | $378,770 |
Accounts receivable (less allowance for doubtful accounts of $9,773 and $10,042) | 927,100 | 989,694 |
Inventories, net | 792,763 | 757,417 |
Other | 180,756 | 240,314 |
Total current assets | 2,416,092 | 2,366,195 |
Property, plant and equipment: | ' | ' |
Land | 80,810 | 80,764 |
Buildings and improvements | 494,256 | 486,494 |
Equipment | 1,685,480 | 1,666,250 |
Construction in process | 19,620 | 18,476 |
Property, plant and equipment, Gross | 2,280,166 | 2,251,984 |
Less accumulated depreciation and amortization | -1,349,814 | -1,311,747 |
Property, plant and equipment, Net | 930,352 | 940,237 |
Goodwill | 69,733 | 69,579 |
Other assets | 121,532 | 118,790 |
Total assets | 3,537,709 | 3,494,801 |
Current liabilities: | ' | ' |
Accounts payable-trade | 347,354 | 342,678 |
Accounts payable-documentary letters of credit | 131,412 | 112,281 |
Accrued expenses and other payables | 269,889 | 314,949 |
Notes payable | 7,993 | 5,973 |
Current maturities of long-term debt | 6,232 | 5,228 |
Total current liabilities | 762,880 | 781,109 |
Deferred income taxes | 53,838 | 46,558 |
Other long-term liabilities | 120,542 | 118,165 |
Long-term debt | 1,277,303 | 1,278,814 |
Total liabilities | 2,214,563 | 2,224,646 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 117,304,487 and 117,010,990 shares | 1,290 | 1,290 |
Additional paid-in capital | 359,765 | 363,772 |
Accumulated other comprehensive loss | -7,823 | -27,176 |
Retained earnings | 1,198,584 | 1,166,732 |
Less treasury stock, 11,756,177 and 12,049,674 shares at cost | -228,744 | -234,619 |
Stockholders' equity attributable to CMC | 1,323,072 | 1,269,999 |
Stockholders' equity attributable to noncontrolling interests | 74 | 156 |
Total stockholders' equity | 1,323,146 | 1,270,155 |
Total liabilities and stockholders' equity | $3,537,709 | $3,494,801 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $9,773 | $10,042 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 129,060,664 | 129,060,664 |
Common stock, shares outstanding | 117,304,487 | 117,010,990 |
Treasury stock, shares | 11,756,177 | 12,049,674 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Cash flows from (used by) operating activities: | ' | ' |
Net earnings | $45,919 | $49,719 |
Adjustments to reconcile net earnings to cash flows from (used by) operating activities: | ' | ' |
Depreciation and amortization | 33,860 | 33,751 |
Provision for losses on receivables, net | -240 | 1,153 |
Share-based compensation | 5,544 | 4,509 |
Amortization of interest rate swaps termination gain | -1,900 | -2,908 |
Deferred income taxes (benefit) | 19,081 | 23,876 |
Tax benefits from stock plans | -109 | 0 |
Net gain on sale of a subsidiary, cost method investment and other | -25,064 | -26,071 |
Asset impairment | 1,005 | 3,028 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 73,052 | 81,217 |
Accounts receivable sold, net | 3,327 | -46,614 |
Inventories | -29,789 | -99,076 |
Other assets | -20,185 | -740 |
Accounts payable, accrued expenses and other payables | -31,534 | -56,228 |
Other long-term liabilities | 505 | 113 |
Net cash flows from (used by) operating activities | 73,472 | -34,271 |
Cash flows from (used by) investing activities: | ' | ' |
Capital expenditures | -14,085 | -24,757 |
Proceeds from the sale of property, plant and equipment and other | 2,126 | 5,956 |
Proceeds from the sale of a subsidiary | 54,265 | 0 |
Proceeds from the sale of cost method investment | 0 | 28,995 |
Net cash flows from (used by) investing activities | 42,306 | 10,194 |
Cash flows from (used by) financing activities: | ' | ' |
Increase in documentary letters of credit | 18,663 | 60,217 |
Short-term borrowings, net change | 2,020 | -13,045 |
Repayments on long-term debt | -1,551 | -1,284 |
Payments for debt issuance costs | -430 | 0 |
Decrease in restricted cash | 17,300 | 0 |
Stock issued under incentive and purchase plans, net of forfeitures | -2,089 | -414 |
Cash dividends | -14,067 | -13,963 |
Tax benefits from stock plans | 109 | 0 |
Contribution from (purchase of) noncontrolling interests | -52 | 15 |
Net cash flows from (used by) financing activities | 19,903 | 31,526 |
Effect of exchange rate changes on cash | 1,022 | 1,525 |
Increase in cash and cash equivalents | 136,703 | 8,974 |
Cash and cash equivalents at beginning of year | 378,770 | 262,422 |
Cash and cash equivalents at end of period | $515,473 | $271,396 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Noncontrolling Interests |
In Thousands, except Share data | |||||||
Beginning balance at Aug. 31, 2012 | $1,246,507 | $1,290 | $365,778 | ($18,136) | $1,145,445 | ($248,009) | $139 |
Beginning balance, treasury stock, shares at Aug. 31, 2012 | ' | ' | ' | ' | ' | -12,709,240 | ' |
Beginning balance, shares at Aug. 31, 2012 | ' | 129,060,664 | ' | ' | ' | ' | ' |
Net earnings | 49,719 | ' | ' | ' | 49,717 | ' | 2 |
Other comprehensive loss | 23,412 | ' | ' | 23,412 | ' | ' | ' |
Cash dividends | -13,963 | ' | ' | ' | -13,963 | ' | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures | -414 | ' | -2,523 | ' | ' | 2,109 | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | ' | ' | ' | ' | ' | 97,474 | ' |
Share-based compensation | 3,081 | ' | 3,081 | ' | ' | ' | ' |
Tax benefits from stock plans | 0 | ' | ' | ' | ' | ' | ' |
Contribution from (purchase of) noncontrolling interests | 15 | ' | ' | ' | ' | ' | 15 |
Ending balance at Nov. 30, 2012 | 1,308,357 | 1,290 | 366,336 | 5,276 | 1,181,199 | -245,900 | 156 |
Ending balance, treasury stock, shares at Nov. 30, 2012 | ' | ' | ' | ' | ' | -12,611,766 | ' |
Ending balance, shares at Nov. 30, 2012 | ' | 129,060,664 | ' | ' | ' | ' | ' |
Beginning balance at Aug. 31, 2013 | 1,270,155 | 1,290 | 363,772 | -27,176 | 1,166,732 | -234,619 | 156 |
Beginning balance, treasury stock, shares at Aug. 31, 2013 | -12,049,674 | ' | ' | ' | ' | -12,049,674 | ' |
Beginning balance, shares at Aug. 31, 2013 | 129,060,664 | 129,060,664 | ' | ' | ' | ' | ' |
Net earnings | 45,919 | ' | ' | ' | 45,919 | ' | ' |
Other comprehensive loss | 19,353 | ' | ' | 19,353 | ' | ' | ' |
Cash dividends | -14,067 | ' | ' | ' | -14,067 | ' | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures | -2,089 | ' | -7,964 | ' | ' | 5,875 | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | ' | ' | ' | ' | ' | 293,497 | ' |
Share-based compensation | 3,818 | ' | 3,818 | ' | ' | ' | ' |
Tax benefits from stock plans | 109 | ' | 109 | ' | ' | ' | ' |
Contribution from (purchase of) noncontrolling interests | -52 | ' | 30 | ' | ' | ' | -82 |
Ending balance at Nov. 30, 2013 | $1,323,146 | $1,290 | $359,765 | ($7,823) | $1,198,584 | ($228,744) | $74 |
Ending balance, treasury stock, shares at Nov. 30, 2013 | -11,756,177 | ' | ' | ' | ' | -11,756,177 | ' |
Ending balance, shares at Nov. 30, 2013 | 129,060,664 | 129,060,664 | ' | ' | ' | ' | ' |
Accounting_Policies
Accounting Policies | 3 Months Ended |
Nov. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Accounting policies | ' |
NOTE 1. ACCOUNTING POLICIES | |
Accounting Principles | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K filed by Commercial Metals Company ("CMC", and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission ("SEC") for the year ended August 31, 2013, and include all normal recurring adjustments necessary to present fairly the consolidated balance sheets and the consolidated statements of operations, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended August 31, 2013. The results of operations for the three month period are not necessarily indicative of the results to be expected for the full year. | |
Recent Accounting Pronouncements | |
In the first quarter of fiscal 2014, the Company adopted guidance issued by the Financial Accounting Standards Board ("FASB") requiring an entity to provide quantitative and qualitative disclosures about the nature of its rights of setoff and related arrangements associated with its financial instruments and derivative instruments. The objective is to make financial statements that are prepared under GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosures will give financial statement users information about both gross and net exposures. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. | |
In July 2013, the FASB issued guidance requiring entities to net an unrecognized tax benefit with a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The new guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect this guidance to have a material impact on its consolidated financial statements. | |
In April 2013, the FASB issued guidance requiring an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The new guidance is effective prospectively for entities that determine liquidation is imminent during fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. The Company does not expect this guidance to have a material impact on its consolidated financial statements. | |
In March 2013, the FASB issued guidance requiring an entity to release any related cumulative translation adjustment into net income when it either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, the guidance resolves the diversity in practice for the treatment of business combinations achieved in stages involving a foreign entity. The new guidance is effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. | |
In February 2013, the FASB issued guidance requiring an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance also requires entities to disclose the nature and amount of the obligation as well as other information about the obligation. The new guidance is effective retrospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
NOTE 2. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
Accumulated other comprehensive income (loss), net of income taxes, is comprised of the following: | |||||||||||||||||
(in thousands) | Foreign Currency Translation | Unrealized Gain (Loss) on Derivatives | Defined Benefit Obligation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Balance, August 31, 2013 | $ | (27,477 | ) | $ | 3,594 | $ | (3,293 | ) | $ | (27,176 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 19,442 | (1,617 | ) | 550 | 18,375 | ||||||||||||
Amounts reclassified from AOCI | — | 980 | (2 | ) | 978 | ||||||||||||
Net other comprehensive income (loss) | 19,442 | (637 | ) | 548 | 19,353 | ||||||||||||
Balance, November 30, 2013 | $ | (8,035 | ) | $ | 2,957 | $ | (2,745 | ) | $ | (7,823 | ) | ||||||
The significant items reclassified out of accumulated other comprehensive income (loss) and the corresponding line items in the consolidated statements of operations to which the items were reclassified were as follows: | |||||||||||||||||
Components of AOCI (in thousands) | Location | Three Months Ended November 30, 2013 | |||||||||||||||
Unrealized gain (loss) on derivatives: | |||||||||||||||||
Commodity | Cost of goods sold | $ | (119 | ) | |||||||||||||
Foreign exchange | Net sales | (250 | ) | ||||||||||||||
Foreign exchange | Cost of goods sold | (922 | ) | ||||||||||||||
Foreign exchange | SG&A expenses | 14 | |||||||||||||||
Interest rate | Interest expense | 116 | |||||||||||||||
(1,161 | ) | ||||||||||||||||
Income tax effect | Income taxes (expense) benefit | 181 | |||||||||||||||
Net of income taxes | $ | (980 | ) | ||||||||||||||
Defined benefit obligation: | |||||||||||||||||
Amortization of net gain | SG&A expenses | $ | 3 | ||||||||||||||
Income tax effect | Income taxes (expense) benefit | (1 | ) | ||||||||||||||
Net of income taxes | $ | 2 | |||||||||||||||
Amounts in parentheses reduce earnings. |
Sales_Of_Accounts_Receivable
Sales Of Accounts Receivable | 3 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Transfers and Servicing [Abstract] | ' | ||||||||||||||||
Sales of accounts receivable | ' | ||||||||||||||||
NOTE 3. SALES OF ACCOUNTS RECEIVABLE | |||||||||||||||||
The Company has a domestic sale of accounts receivable program which expires on December 26, 2014. Under the program, Commercial Metals Company contributes, and several of its subsidiaries sell without recourse, certain eligible trade accounts receivable to CMC Receivables, Inc. ("CMCRV"), a wholly owned subsidiary of CMC. CMCRV is structured to be a bankruptcy-remote entity and was formed for the sole purpose of buying and selling receivables generated by the Company. CMCRV sells the trade accounts receivable in their entirety to two financial institutions. The financial institutions advance up to a maximum of $200 million for all receivables sold, and the remaining portion of the purchase price of the receivables will be paid to the Company from the ultimate collection of the receivables after payment of certain fees and other costs. The Company accounts for sales of the receivables as true sales and the trade accounts receivable balances that are sold are removed from the consolidated balance sheets. The cash advances received are reflected as cash provided by operating activities on the Company's consolidated statements of cash flows. Additionally, the receivables program contains certain cross-default provisions whereby a termination event could occur if the Company defaulted under certain of its credit arrangements. The covenants contained in the receivables purchase agreement are consistent with the credit facility described in Note 7, Credit Arrangements. | |||||||||||||||||
At November 30, 2013 and August 31, 2013, under its domestic sale of accounts receivable program, the Company had sold $356.9 million and $358.8 million of receivables, respectively, to the financial institutions and received no advance payments. | |||||||||||||||||
In addition to the domestic sale of accounts receivable program described above, the Company's international subsidiaries in Europe and Australia sell accounts receivable to financial institutions without recourse. These arrangements constitute true sales, and once the accounts are sold, they are no longer available to the Company's creditors in the event of bankruptcy. The European program allows the Company’s European subsidiaries to advance up to 90% of eligible receivables sold under the terms of the arrangement. During the first quarter of fiscal 2014, the Company phased out its existing Australian accounts receivable sales program and entered into a new accounts receivable sales program with a different financial institution. Under the new Australian program, accounts receivable balances will be sold to a special purpose vehicle, which in turn will sell 100% of the eligible receivables of Commercial Metals Pty. Ltd., CMC Steel Distribution Pty. Ltd. and G.A.M. Steel Pty. Ltd. to the financial institution. Under the Australian program, the financial institution will fund up to A$75.0 million for all receivables sold, and the remaining portion of the purchase price of the receivables will be paid to the Company from the ultimate collection of the receivables after payment of certain fees and other costs. During the three months ended November 30, 2013, no accounts receivable were sold under the new Australian program. The Company accounts for sales of the receivables as true sales and the trade accounts receivable balances that are sold are removed from the consolidated balance sheets. The cash advances received are reflected as cash provided by operating activities on the Company's consolidated statements of cash flows. | |||||||||||||||||
At November 30, 2013 and August 31, 2013, under its international sale of accounts receivable programs, the Company had sold $55.4 million and $121.2 million of accounts receivable, respectively, to third-party financial institutions and had received advance payments of $31.7 million and $24.5 million, respectively. | |||||||||||||||||
During the three months ended November 30, 2013 and 2012, cash proceeds from the domestic and international sale of accounts receivable programs were $162.8 million and $287.0 million, respectively, and cash payments to the owners of accounts receivable were $159.4 million and $333.6 million, respectively. For a nominal servicing fee, the Company is responsible for servicing the accounts receivable for the domestic and Australian programs. Discounts on domestic and international sales of accounts receivable were $0.6 million and $1.2 million for the three months ended November 30, 2013 and 2012, respectively, and are included in selling, general and administrative expenses in the Company's consolidated statements of operations. | |||||||||||||||||
The deferred purchase price on the Company's domestic and international sale of accounts receivable programs are included in accounts receivable on the Company's consolidated balance sheets. The following tables summarize the activity of the deferred purchase price receivables for the domestic and international sale of accounts receivable programs: | |||||||||||||||||
Three Months Ended November 30, 2013 | |||||||||||||||||
(in thousands) | Total | Domestic | Australia | Europe | |||||||||||||
Beginning balance | $ | 453,252 | $ | 358,822 | $ | 64,996 | $ | 29,434 | |||||||||
Transfers of accounts receivable | 1,037,205 | 840,571 | 73,120 | 123,514 | |||||||||||||
Collections | (1,042,922 | ) | (847,878 | ) | (65,804 | ) | (129,240 | ) | |||||||||
Program termination | (72,312 | ) | — | (72,312 | ) | — | |||||||||||
Ending balance | $ | 375,223 | $ | 351,515 | $ | — | $ | 23,708 | |||||||||
Three Months Ended November 30, 2012 | |||||||||||||||||
(in thousands) | Total | Domestic | Australia | Europe | |||||||||||||
Beginning balance | $ | 515,481 | $ | 396,919 | $ | 70,073 | $ | 48,489 | |||||||||
Transfers of accounts receivable | 1,206,746 | 936,630 | 126,908 | 143,208 | |||||||||||||
Collections | (1,186,356 | ) | (928,556 | ) | (119,820 | ) | (137,980 | ) | |||||||||
Ending balance | $ | 535,871 | $ | 404,993 | $ | 77,161 | $ | 53,717 | |||||||||
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2013 | |
Inventory Disclosure [Abstract] | ' |
Inventories | ' |
NOTE 4. INVENTORIES | |
Inventories are stated at the lower of cost or market. Inventory cost for most domestic inventories is determined by the last-in, first-out ("LIFO") method. At November 30, 2013 and August 31, 2013, 39% and 43%, respectively, of the Company's total net inventories were valued at LIFO. LIFO inventory reserves were $189.6 million and $185.5 million at November 30, 2013 and August 31, 2013, respectively. Inventory cost for international inventories and the remaining domestic inventories are determined by the first-in, first-out ("FIFO") method and consisted mainly of material dedicated to CMC Poland Sp. z.o.o. ("CMCP") and certain marketing and distribution businesses. | |
The majority of the Company's inventories are in the form of finished goods with minimal work in process. At November 30, 2013 and August 31, 2013, $74.6 million and $66.7 million, respectively, of the Company's inventories were in the form of raw materials. |
Goodwill_And_Other_Intangible_
Goodwill And Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and other intangible assets | ' | ||||||||||||||||||||||||
NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||
The following table details the changes in the carrying amount of goodwill by reportable segment: | |||||||||||||||||||||||||
Americas | International | ||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Consolidated | |||||||||||||||||||
Balance, August 31, 2013 | $ | 7,267 | $ | 295 | $ | 57,144 | $ | 2,755 | $ | 2,118 | $ | 69,579 | |||||||||||||
Foreign currency translation | — | — | — | 121 | 33 | 154 | |||||||||||||||||||
Balance, November 30, 2013 | $ | 7,267 | $ | 295 | $ | 57,144 | $ | 2,876 | $ | 2,151 | $ | 69,733 | |||||||||||||
The total gross carrying amounts of the Company's intangible assets that are subject to amortization were $43.3 million and $42.9 million at November 30, 2013 and August 31, 2013, respectively, and are included in other noncurrent assets on the Company's consolidated balance sheets. Excluding goodwill, there are no other significant intangible assets with indefinite lives. Amortization expense for intangible assets was $1.2 million for each of the three months ended November 30, 2013 and 2012. |
Businesses_Held_For_Sale_Disco
Businesses Held For Sale, Discontinued Operations And Dispositions | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Discontinued operations and dispositions | ' | ||||||||
NOTE 6. BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS | |||||||||
Businesses Held for Sale | |||||||||
The assets and liabilities of businesses classified as held for sale are included in other current assets and accrued expenses on the Company's consolidated balance sheets. The components of assets and liabilities of businesses held for sale are as follows. | |||||||||
(in thousands) | 30-Nov-13 | 31-Aug-13 | |||||||
Assets: | |||||||||
Accounts receivable | $ | — | $ | 20,313 | |||||
Inventories, net | — | 8,713 | |||||||
Other current assets | — | 3,683 | |||||||
Property, plant and equipment, net of accumulated depreciation and amortization | 1,085 | 10,459 | |||||||
Assets of businesses held for sale | $ | 1,085 | $ | 43,168 | |||||
Liabilities: | |||||||||
Accounts payable-trade | $ | — | $ | 7,615 | |||||
Accrued expenses and other payables | — | 3,251 | |||||||
Liabilities of businesses held for sale | $ | — | $ | 10,866 | |||||
Discontinued Operations | |||||||||
During the fourth quarter of fiscal 2013, the Company decided to sell all of the stock of its wholly owned copper tube manufacturing operation, Howell Metal Company ("Howell"). The Company determined that the decision to sell this business met the definition of a discontinued operation. As a result, the Company included Howell in discontinued operations for all periods presented. | |||||||||
During fiscal 2012, the Company announced its decision to exit the steel pipe manufacturing operations in Croatia ("CMCS") by closure of the facility and sale of the assets. The Company determined that the decision to exit this business met the definition of a discontinued operation. As a result, the Company included CMCS in discontinued operations for all periods presented. The Company sold a majority of CMCS' assets during fiscal 2012. The remaining assets were sold during the first quarter of fiscal 2013 for $3.9 million with no impact to the consolidated statements of operations. | |||||||||
Financial information for discontinued operations was as follows: | |||||||||
Three Months Ended November 30, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Net Sales | $ | 17,298 | $ | 39,711 | |||||
Earnings from discontinued operations before income taxes | 22,845 | 1,250 | |||||||
Dispositions | |||||||||
On October 17, 2013, the Company sold all of the stock of Howell for $58.5 million, of which $4.2 million is held in escrow, subject to customary purchase price adjustments, resulting in a pre-tax gain of $23.8 million. Howell was previously an operating segment included in the Americas Mills reporting segment. | |||||||||
During the first quarter of fiscal 2013, the Company completed the sale of its 11% ownership interest in Trinecke Zelezarny, a.s. ("Trinecke"), a Czech Republic joint-stock company, for $29.0 million resulting in a pre-tax gain of $26.1 million. The Trinecke investment was included in the International Marketing and Distribution reporting segment. |
Credit_Arrangements
Credit Arrangements | 3 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Credit Arrangements | ' | ||||||||||
NOTE 7. CREDIT ARRANGEMENTS | |||||||||||
In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 15, 2023 (the "2023 Notes") and received proceeds of $325.0 million, net of underwriting discounts and debt issuance costs. The Company used $205.3 million of the proceeds from the 2023 Notes to purchase all of its outstanding $200.0 million of 5.625% Notes due 2013 (the "2013 Notes"). The Company uses the remaining proceeds for general corporate purposes. Interest on the 2023 Notes is payable semi-annually on May 15 and November 15 of each year, beginning on November 15, 2013. The Company may, at any time, redeem the 2023 Notes at a redemption price equal to 100 percent of the principal amount, plus a "make-whole" premium described in the indenture. Additionally, if a change of control triggering event occurs, as defined by the terms of the indenture, holders of the 2023 Notes may require the Company to repurchase the 2023 Notes at a purchase price equal to 101 percent of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The Company is generally not limited under the indenture governing the 2023 Notes in its ability to incur additional indebtedness provided the Company is in compliance with certain restrictive covenants, including restrictions on liens, sale and leaseback transactions, mergers, consolidations and transfers of substantially all of the Company's assets. | |||||||||||
In December 2011, the Company entered into a third amended and restated $300 million revolving credit facility that matures on December 27, 2016. The maximum availability under this facility can be increased to $400 million with the consent of both parties. The program's capacity, with a sublimit of $50 million for letters of credit, is reduced by outstanding stand-by letters of credit which totaled $35.2 million at November 30, 2013. Under the credit facility, the Company was required to maintain a minimum interest coverage ratio (adjusted EBITDA to interest expense, as each is defined in the facility) of not less than 3.00 to 1.00 for the twelve month cumulative period ended November 30, 2012 and for each fiscal quarter on a rolling twelve month cumulative period thereafter. At November 30, 2013, the Company's interest coverage ratio was 4.96 to 1.00. The credit facility also requires the Company to maintain a debt to capitalization ratio that does not exceed 0.60 to 1.00. At November 30, 2013, the Company's debt to capitalization ratio was 0.50 to 1.00. The credit facility provides for interest based on the LIBOR, the Eurodollar rate or Bank of America's prime rate. | |||||||||||
At November 30, 2013, the Company was in compliance with all covenants related to its debt agreements. | |||||||||||
During fiscal 2012, the Company terminated its existing interest rate swap transactions and received cash proceeds of approximately $52.7 million, net of customary finance charges. The resulting gain was deferred and is being amortized as a reduction to interest expense over the remaining term of the respective debt tranches. At November 30, 2013 and August 31, 2013, the unamortized portion was $32.5 million and $34.4 million, respectively, and for the three months ended November 30, 2013 and 2012, the amortization of the deferred gain was $1.9 million and $2.9 million, respectively. | |||||||||||
The Company has uncommitted credit facilities available from domestic and international banks. In general, these credit facilities are used to support trade letters of credit (including accounts payable settled under bankers' acceptances), foreign exchange transactions and short-term advances which are priced at market rates. | |||||||||||
Long-term debt, including the deferred gain from the termination of the interest rate swaps, was as follows: | |||||||||||
(in thousands) | Weighted Average | November 30, 2013 | August 31, 2013 | ||||||||
Interest Rate as of November 30, 2013 | |||||||||||
$400 million notes at 6.50% due July 2017 | 5.70% | $ | 410,775 | $ | 411,518 | ||||||
$500 million notes at 7.35% due August 2018 | 6.40% | 521,773 | 522,930 | ||||||||
$330 million notes at 4.875% due May 2023 | 4.90% | 330,000 | 330,000 | ||||||||
Other, including equipment notes | 20,987 | 19,594 | |||||||||
1,283,535 | 1,284,042 | ||||||||||
Less current maturities | 6,232 | 5,228 | |||||||||
$ | 1,277,303 | $ | 1,278,814 | ||||||||
Interest on these notes is payable semiannually. | |||||||||||
CMCP has uncommitted credit facilities of $66.3 million with several banks with expiration dates ranging from December 2013 to October 2014. During the three months ended November 30, 2013, CMCP had no borrowings and no repayments under these facilities. At November 30, 2013, no material amounts were outstanding under these facilities. | |||||||||||
The Company had no material amounts of interest capitalized in the cost of property, plant and equipment during the three months ended November 30, 2013 and 2012, respectively. Cash paid for interest during the three months ended November 30, 2013 and 2012 was $9.5 million and $4.6 million, respectively. |
Derivatives_And_Risk_Managemen
Derivatives And Risk Management | 3 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Derivatives and risk management | ' | ||||||||||
NOTE 8. DERIVATIVES AND RISK MANAGEMENT | |||||||||||
The Company's global operations and product lines expose it to risks from fluctuations in metal commodity prices, foreign currency exchange rates, natural gas prices and interest rates. One objective of the Company's risk management program is to mitigate these risks using derivative instruments. The Company enters into metal commodity futures and forward contracts to mitigate the risk of unanticipated changes in gross margin due to the volatility of the commodities' prices, enters into foreign currency forward contracts that match the expected settlements for purchases and sales denominated in foreign currencies and enters into natural gas forward contracts to mitigate the risk of unanticipated changes in operating cost due to the volatility of natural gas prices. When sales commitments to customers include a fixed price freight component, the Company occasionally enters into freight forward contracts to reduce the effects of the volatility of ocean freight rates. | |||||||||||
At November 30, 2013, the notional value of the Company's foreign currency contract commitments and its commodity contract commitments was $433.3 million and $54.9 million, respectively. | |||||||||||
The following table provides information regarding the Company's commodity contract commitments as of November 30, 2013: | |||||||||||
Commodity | Long/Short | Total | |||||||||
Aluminum | Long | 4,945 | MT | ||||||||
Aluminum | Short | 1,800 | MT | ||||||||
Copper | Long | 476 | MT | ||||||||
Copper | Short | 5,443 | MT | ||||||||
Zinc | Long | 7 | MT | ||||||||
MT =etric Ton | |||||||||||
The Company designates only those contracts which closely match the terms of the underlying transaction as hedges for accounting purposes. These hedges resulted in substantially no ineffectiveness in the Company's consolidated statements of operations, and there were no components excluded from the assessment of hedge effectiveness for the three months ended November 30, 2013 and 2012. Certain foreign currency and commodity contracts were not designated as hedges for accounting purposes, although management believes they are essential economic hedges. | |||||||||||
The following tables summarize activities related to the Company's derivative instruments and hedged items recognized in the consolidated statements of operations: | |||||||||||
Three Months Ended November 30, | |||||||||||
Derivatives Not Designated as Hedging Instruments (in thousands) | Location | 2013 | 2012 | ||||||||
Commodity | Cost of goods sold | $ | 510 | $ | (411 | ) | |||||
Commodity | SG&A expenses | — | (588 | ) | |||||||
Foreign exchange | Net sales | (159 | ) | (11 | ) | ||||||
Foreign exchange | Cost of goods sold | (121 | ) | — | |||||||
Foreign exchange | SG&A expenses | (4,693 | ) | (36 | ) | ||||||
Other | Cost of goods sold | — | 15 | ||||||||
Loss before income taxes | $ | (4,463 | ) | $ | (1,031 | ) | |||||
The Company's fair value hedges are designated for accounting purposes with gains and losses on the hedged items offsetting the gain or loss on the related derivative transaction. Hedged items relate to firm commitments on commercial sales and purchases and capital expenditures. | |||||||||||
Derivatives Designated as Fair Value Hedging Instruments (in thousands) | Three Months Ended November 30, | ||||||||||
Location | 2013 | 2012 | |||||||||
Foreign exchange | Net sales | $ | (113 | ) | $ | — | |||||
Foreign exchange | Cost of goods sold | (127 | ) | (229 | ) | ||||||
Loss before income taxes | $ | (240 | ) | $ | (229 | ) | |||||
Hedged Items Designated as Fair Value Hedging Instruments (in thousands) | Three Months Ended November 30, | ||||||||||
Location | 2013 | 2012 | |||||||||
Foreign exchange | Net sales | $ | 93 | $ | (23 | ) | |||||
Foreign exchange | Cost of goods sold | 125 | 157 | ||||||||
Gain before income taxes | $ | 218 | $ | 134 | |||||||
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss) (in thousands) | Three Months Ended November 30, | ||||||||||
2013 | 2012 | ||||||||||
Commodity | $ | (89 | ) | $ | 14 | ||||||
Foreign exchange | (1,528 | ) | 303 | ||||||||
Gain (loss), net of income taxes | $ | (1,617 | ) | $ | 317 | ||||||
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss) (in thousands) | Three Months Ended November 30, | ||||||||||
Location | 2013 | 2012 | |||||||||
Commodity | Cost of goods sold | $ | (89 | ) | $ | — | |||||
Foreign exchange | Net sales | (231 | ) | 51 | |||||||
Foreign exchange | Cost of goods sold | (758 | ) | (41 | ) | ||||||
Foreign exchange | SG&A expenses | 12 | 10 | ||||||||
Interest rate | Interest expense | 86 | 102 | ||||||||
Gain (loss), net of income taxes | $ | (980 | ) | $ | 122 | ||||||
The Company enters into derivative agreements that include provisions to allow the set-off of certain amounts. Derivative instruments are presented on a gross basis on the Company's consolidated balance sheets. The asset and liability balances in the tables below reflect the gross amounts of derivative instruments at November 30, 2013 and August 31, 2013. The fair value of the Company's derivative instruments on the consolidated balance sheets was as follows: | |||||||||||
Derivative Assets (in thousands) | November 30, 2013 | August 31, 2013 | |||||||||
Commodity — not designated for hedge accounting | $ | 1,357 | $ | 1,066 | |||||||
Foreign exchange — designated for hedge accounting | 1,414 | 1,626 | |||||||||
Foreign exchange — not designated for hedge accounting | 1,971 | 1,238 | |||||||||
Derivative assets (other current assets and other assets)* | $ | 4,742 | $ | 3,930 | |||||||
Derivative Liabilities (in thousands) | November 30, 2013 | August 31, 2013 | |||||||||
Commodity — designated for hedge accounting | $ | 39 | $ | 129 | |||||||
Commodity — not designated for hedge accounting | 1,302 | 1,268 | |||||||||
Foreign exchange — designated for hedge accounting | 889 | 432 | |||||||||
Foreign exchange — not designated for hedge accounting | 1,633 | 1,738 | |||||||||
Derivative liabilities (accrued expenses, other payables and long-term liabilities)* | $ | 3,863 | $ | 3,567 | |||||||
_________________ | |||||||||||
* Derivative assets and liabilities do not include the hedged items designated as fair value hedges. | |||||||||||
As of November 30, 2013, all of the Company's derivative instruments designated to hedge exposure to the variability in future cash flows of the forecasted transactions will mature within twelve months. | |||||||||||
All of the instruments are highly liquid and not entered into for trading purposes. |
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Fair value | ' | ||||||||||||||||||
NOTE 9. FAIR VALUE | |||||||||||||||||||
The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined as follows: | |||||||||||||||||||
Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities; | |||||||||||||||||||
Level 2 - Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly; and | |||||||||||||||||||
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||||||||
The following tables summarize information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis: | |||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
(in thousands) | November 30, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||
(Level 1) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Money market investments (1) | $ | 371,574 | $ | 371,574 | $ | — | $ | — | |||||||||||
Commodity derivative assets (2) | 1,357 | 1,357 | — | — | |||||||||||||||
Foreign exchange derivative assets (2) | 3,385 | — | 3,385 | — | |||||||||||||||
Liabilities: | |||||||||||||||||||
Commodity derivative liabilities (2) | 1,341 | 1,302 | 39 | — | |||||||||||||||
Foreign exchange derivative liabilities (2) | 2,522 | — | 2,522 | — | |||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
(in thousands) | August 31, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||
(Level 1) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Money market investments (1) | $ | 236,727 | $ | 236,727 | $ | — | $ | — | |||||||||||
Commodity derivative assets (2) | 1,066 | 1,066 | — | — | |||||||||||||||
Foreign exchange derivative assets (2) | 2,864 | — | 2,864 | — | |||||||||||||||
Liabilities: | |||||||||||||||||||
Commodity derivative liabilities (2) | 1,397 | 1,268 | 129 | — | |||||||||||||||
Foreign exchange derivative liabilities (2) | 2,170 | — | 2,170 | — | |||||||||||||||
_________________ | |||||||||||||||||||
(1) Money market investments are short-term in nature, and the value is determined by broker quoted prices in active markets. The investment portfolio mix can change each period based on the Company's assessment of investment options. | |||||||||||||||||||
(2) Derivative assets and liabilities classified as Level 1 are commodity futures contracts valued based on quoted market prices in the London Metal Exchange or the New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Further discussion regarding the Company's use of derivatives and the classification of the assets and liabilities is included in Note 8, Derivatives and Risk Management. | |||||||||||||||||||
Fair value of property, plant and equipment held for sale (Level 3) was $3.8 million based on appraised values less costs to sell at November 30, 2013. CMC does not have other assets or intangible assets measured at fair value on a non-recurring basis at November 30, 2013. | |||||||||||||||||||
The carrying values of the Company's short-term items, including the deferred purchase prices of accounts receivable, documentary letters of credit and notes payable, approximate fair value due to their short term nature. | |||||||||||||||||||
The carrying values and estimated fair values of the Company's financial assets and liabilities that are not required to be measured at fair value on the consolidated balance sheets are as follows: | |||||||||||||||||||
November 30, 2013 | August 31, 2013 | ||||||||||||||||||
(in thousands) | Fair Value Hierarchy | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
$400 million notes at 6.50% due July 2017 (1) | Level 2 | $ | 410,775 | $ | 447,760 | $ | 411,518 | $ | 443,646 | ||||||||||
$500 million notes at 7.35% due August 2018 (1) | Level 2 | 521,773 | 574,840 | 522,930 | 570,429 | ||||||||||||||
$330 million notes at 4.875% due May 2023 (1) | Level 2 | 330,000 | 311,025 | 330,000 | 298,650 | ||||||||||||||
(1) The fair value of the notes is calculated based on indicated market values. |
Income_Tax
Income Tax | 3 Months Ended |
Nov. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income tax | ' |
NOTE 10. INCOME TAX | |
The Company's effective income tax rate from continuing operations for the three months ended November 30, 2013 and 2012 was 32.1% and 31.2%, respectively. The Company's effective income tax rate from discontinued operations for the three months ended November 30, 2013 and 2012 was 38.9% and 37.0%, respectively. | |
The Company made net payments of $1.4 million and $0.3 million for income taxes during the three months ended November 30, 2013 and 2012, respectively. | |
The reserve for unrecognized income tax benefits related to the accounting for uncertainty in income taxes was $28.6 million and $27.4 million, exclusive of interest and penalties, as of November 30, 2013 and 2012, respectively. | |
The Company's policy classifies interest recognized on an underpayment of income taxes and any statutory penalties recognized on a tax position as income tax expense and the balances at the end of a reporting period are recorded as part of the current or noncurrent reserve for uncertain income tax positions. For the three months ended November 30, 2013, before any income tax benefits, the Company recorded immaterial amounts of accrued interest and penalties on unrecognized income tax benefits. | |
During the twelve months ending November 30, 2014, it is reasonably possible that the statute of limitations may lapse pertaining to positions taken by the Company in prior year income tax returns or that income tax audits in various taxing jurisdictions could be finalized. As a result, the total amount of unrecognized income tax benefits may decrease by approximately $17.9 million, which would reduce the provision for income taxes on earnings by an immaterial amount. | |
The Company files income tax returns in the United States and multiple foreign jurisdictions with varying statutes of limitations. In the normal course of business, the Company and its subsidiaries are subject to examination by various taxing authorities. The following is a summary of tax years subject to examination: | |
US Federal — 2009 and forward | |
US States — 2009 and forward | |
Foreign — 2006 and forward | |
The Company is currently under examination by the Internal Revenue Service and state revenue authorities from 2009 to 2011. Management believes the Company's recorded tax liabilities as of November 30, 2013 sufficiently reflect the anticipated outcome of these examinations. |
Sharebased_Compensation_Plans
Share-based Compensation Plans | 3 Months Ended |
Nov. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-based compensation plans | ' |
NOTE 11. SHARE-BASED COMPENSATION PLANS | |
The Company's share-based compensation plans are described, and informational disclosures provided, in Note 15, Share-Based Compensation Plans, to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended August 31, 2013. During the three months ended November 30, 2013 and 2012, restricted stock units ("RSUs") and performance stock units ("PSUs") totaling 1.1 million and 1.3 million, respectively, were granted at a weighted-average fair value of $16.75 and $12.99, respectively. Stock appreciation rights ("SARs") were not granted during the three months ended November 30, 2013. The Company granted 0.2 million SARs at a weighted average exercise price of $14.12 during the three months ended November 30, 2012. | |
During the three months ended November 30, 2013 and 2012, the Company granted 59,565 equivalent shares of cash-settled RSUs and PSUs and 204,069 equivalent shares of cash-settled RSUs, PSUs and SARs, respectively. The fair value of these cash-settled awards is remeasured each reporting period and is recognized ratably over the service period. As of November 30, 2013, the Company had 2,016,522 equivalent shares in awards outstanding. The Company expects 1,717,684 equivalent shares to vest. | |
In general, the RSUs and PSUs granted during fiscal 2014 will vest over a period of three years; however, certain RSUs granted during fiscal 2014 will vest over a period of four years. The RSUs granted during fiscal 2013 will vest over a period of three years. Subject to the achievement of performance targets established by the Compensation Committee of the Board of Directors, the PSUs granted during fiscal 2014 and fiscal 2013 will vest after a period of three years. The SARs granted during fiscal 2013 vest ratably over a period of three years. The SARs have a contractual term of seven years. | |
Share-based compensation expense for the three months ended November 30, 2013 and 2012 of $5.5 million and $4.5 million, respectively, is included in selling, general and administrative expenses on the Company's consolidated statements of operations. |
Earnings_Per_Share_Attributabl
Earnings Per Share Attributable To CMC | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings per share attributable to CMC | ' | ||||||||
NOTE 12. EARNINGS PER SHARE ATTRIBUTABLE TO CMC | |||||||||
The calculations of the basic and diluted earnings per share for the three months ended November 30, 2013 and 2012 are as follows: | |||||||||
Three Months Ended November 30, | |||||||||
(in thousands, except share data) | 2013 | 2012 | |||||||
Net earnings attributable to CMC | $ | 45,919 | $ | 49,717 | |||||
Basic earnings per share: | |||||||||
Shares outstanding for basic earnings per share | 117,070,499 | 116,336,504 | |||||||
Basic earnings per share attributable to CMC: | $ | 0.39 | $ | 0.43 | |||||
Diluted earnings per share: | |||||||||
Shares outstanding for basic earnings per share | 117,070,499 | 116,336,504 | |||||||
Effect of dilutive securities: | |||||||||
Share-based incentive/purchase plans | 1,086,112 | 757,123 | |||||||
Shares outstanding for diluted earnings per share | 118,156,611 | 117,093,627 | |||||||
Diluted earnings per share attributable to CMC: | $ | 0.39 | $ | 0.42 | |||||
Anti-dilutive shares not included above | 1,364,036 | 2,945,188 | |||||||
All stock options and SARs expire by 2020. | |||||||||
CMC's restricted stock is included in the number of shares of common stock issued and outstanding, but is omitted from the basic earnings per share calculation until the shares vest. | |||||||||
The Company did not purchase any shares during the first three months of fiscal 2014 and had remaining authorization to purchase 8,259,647 shares of its common stock at November 30, 2013. |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Nov. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments And contingencies | ' |
NOTE 13. COMMITMENTS AND CONTINGENCIES | |
In the ordinary course of conducting its business, the Company becomes involved in litigation, administrative proceedings and government investigations, including environmental matters. See Note 18, Commitments and Contingencies, to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended August 31, 2013. | |
On September 18, 2008, the Company was served with a class action antitrust lawsuit alleging violations of Section 1 of the Sherman Act, brought by Standard Iron Works of Scranton, Pennsylvania, against nine steel manufacturing companies, including CMC. The lawsuit, filed in the United States District Court for the Northern District of Illinois, alleges that the defendants conspired to fix, raise, maintain and stabilize the price at which steel products were sold in the United States by artificially restricting the supply of such steel products. The lawsuit, which purports to be brought on behalf of a class consisting of all purchasers of steel products directly from the defendants between January 1, 2005 and September 2008, seeks treble damages and costs, including reasonable attorney fees and pre- and post-judgment interest. Motions for and against class certification have been filed. Oral arguments related to class certification are pending. Discovery on the case merits remains pending. The Company believes the case is without merit and intends to defend it vigorously. | |
Since the filing of the direct purchaser lawsuit, a case has been filed in federal court in the Northern District of Illinois on behalf of a class of indirect purchasers in approximately 28 states naming the same defendants and containing allegations substantially identical to those of the Standard Iron Works complaint. That case has in effect been stayed. Another indirect purchaser action was filed in Tennessee state court, again naming the same defendants but contending that the conspiracy continued through 2010. The case has been removed to federal court, and plaintiffs have moved to remand. The motion to remand has not yet been decided, and no motion practice or discovery has taken place. The Company believes that the lawsuits are without merit and plans to defend them vigorously. Due to the uncertainty and the information available at this time, the Company cannot reasonably estimate a range of loss relating to these cases. | |
Guarantees | |
During fiscal 2012, the Company entered into a guarantee agreement with a bank in connection with a credit facility granted by the bank to a supplier of the Company. The fair value of the guarantee is negligible. The maximum credit facility with the bank was $4.0 million, and the Company's maximum exposure was $2.8 million as of November 30, 2013. |
Business_Segments
Business Segments | 3 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Business segments | ' | ||||||||||||||||||||||||||||||||
NOTE 14. BUSINESS SEGMENTS | |||||||||||||||||||||||||||||||||
The Company's reporting segments are based on strategic business areas, which offer different products and services. These segments have different lines of management responsibility as each business requires different marketing strategies and management expertise. | |||||||||||||||||||||||||||||||||
The Company structures its business into the following five segments: Americas Recycling, Americas Mills, Americas Fabrication, International Mill and International Marketing and Distribution. The Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment manufactures finished long steel products including rebar, merchant bar, light structural, some special bar quality (SBQ) and other special sections as well as semi-finished billets for re-rolling and forging applications. The Americas Fabrication segment consists of the Company's rebar and structural fabrication operations, fence post manufacturing plants, construction-related product facilities and plants that heat-treat steel to strengthen and provide flexibility. The International Mill segment includes the Company's minimill and the Company's recycling and fabrication operations in Poland. The International Marketing and Distribution segment includes international operations for the sale, distribution and processing of steel products, ferrous and nonferrous metals and other industrial products. Additionally, this segment includes the Company's U.S.-based marketing and distribution divisions and also operates a recycling facility in Singapore. Corporate contains expenses of the Company's corporate headquarters and interest expense related to its long-term public debt. | |||||||||||||||||||||||||||||||||
The financial information presented for the International Mill segment excludes CMCS operations. Additionally, the financial information presented for the Americas Mills segment excludes Howell. These operations have been classified as discontinued operations in the consolidated statements of operations. See Note 6, Businesses Held for Sale, Discontinued Operations and Dispositions, for more information. | |||||||||||||||||||||||||||||||||
The Company uses adjusted operating profit (loss) to measure the financial performance of its segments. Intersegment sales are generally priced at prevailing market prices. Certain corporate administrative expenses are allocated to segments based upon the nature of the expense. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. | |||||||||||||||||||||||||||||||||
The following is a summary of certain financial information from continuing operations by reportable segment: | |||||||||||||||||||||||||||||||||
Three Months Ended November 30, 2013 | |||||||||||||||||||||||||||||||||
Americas | International | ||||||||||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Corporate | Eliminations | Continuing Operations | |||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 293,475 | $ | 291,573 | $ | 353,992 | $ | 228,492 | $ | 509,174 | $ | 6,185 | $ | — | $ | 1,682,891 | |||||||||||||||||
Intersegment sales | 44,727 | 189,578 | 4,226 | 658 | 1,984 | — | (241,173 | ) | — | ||||||||||||||||||||||||
Net sales | 338,202 | 481,151 | 358,218 | 229,150 | 511,158 | 6,185 | (241,173 | ) | 1,682,891 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | 839 | 65,814 | 2,217 | 15,268 | 503 | (18,049 | ) | 597 | 67,189 | ||||||||||||||||||||||||
Total assets* | 281,102 | 594,224 | 608,313 | 499,366 | 858,567 | 1,182,688 | (493,199 | ) | 3,531,061 | ||||||||||||||||||||||||
Three Months Ended November 30, 2012 | |||||||||||||||||||||||||||||||||
Americas | International | ||||||||||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Corporate | Eliminations | Continuing Operations | |||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 307,471 | $ | 267,105 | $ | 352,747 | $ | 215,858 | $ | 603,535 | $ | 2,799 | $ | — | $ | 1,749,515 | |||||||||||||||||
Intersegment sales | 44,490 | 189,633 | 3,845 | 6,209 | 5,053 | — | (249,230 | ) | — | ||||||||||||||||||||||||
Net sales | 351,961 | 456,738 | 356,592 | 222,067 | 608,588 | 2,799 | (249,230 | ) | 1,749,515 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | 4,494 | 51,660 | 10,192 | 876 | 40,161 | (17,370 | ) | (660 | ) | 89,353 | |||||||||||||||||||||||
Total assets at August 31, 2013* | 309,599 | 598,478 | 631,510 | 487,613 | 838,413 | 1,075,594 | (496,946 | ) | 3,444,261 | ||||||||||||||||||||||||
* Excludes total assets from discontinued operations of $6.6 million at November 30, 2013 and $50.5 million at August 31, 2013. | |||||||||||||||||||||||||||||||||
Reconciliations of earnings from continuing operations to adjusted operating profit are provided below: | |||||||||||||||||||||||||||||||||
Three Months Ended November 30, | |||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||
Earnings from continuing operations | $ | 31,961 | $ | 48,931 | |||||||||||||||||||||||||||||
Income taxes | 15,091 | 22,189 | |||||||||||||||||||||||||||||||
Interest expense | 19,578 | 17,024 | |||||||||||||||||||||||||||||||
Discounts on sales of accounts receivable | 559 | 1,209 | |||||||||||||||||||||||||||||||
Adjusted operating profit | $ | 67,189 | $ | 89,353 | |||||||||||||||||||||||||||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Accounting principles | ' |
Accounting Principles | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K filed by Commercial Metals Company ("CMC", and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission ("SEC") for the year ended August 31, 2013, and include all normal recurring adjustments necessary to present fairly the consolidated balance sheets and the consolidated statements of operations, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended August 31, 2013. The results of operations for the three month period are not necessarily indicative of the results to be expected for the full year. | |
Recent accounting pronouncements | ' |
Recent Accounting Pronouncements | |
In the first quarter of fiscal 2014, the Company adopted guidance issued by the Financial Accounting Standards Board ("FASB") requiring an entity to provide quantitative and qualitative disclosures about the nature of its rights of setoff and related arrangements associated with its financial instruments and derivative instruments. The objective is to make financial statements that are prepared under GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosures will give financial statement users information about both gross and net exposures. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. | |
In July 2013, the FASB issued guidance requiring entities to net an unrecognized tax benefit with a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The new guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect this guidance to have a material impact on its consolidated financial statements. | |
In April 2013, the FASB issued guidance requiring an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The new guidance is effective prospectively for entities that determine liquidation is imminent during fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. The Company does not expect this guidance to have a material impact on its consolidated financial statements. | |
In March 2013, the FASB issued guidance requiring an entity to release any related cumulative translation adjustment into net income when it either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, the guidance resolves the diversity in practice for the treatment of business combinations achieved in stages involving a foreign entity. The new guidance is effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. | |
In February 2013, the FASB issued guidance requiring an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance also requires entities to disclose the nature and amount of the obligation as well as other information about the obligation. The new guidance is effective retrospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. | |
Fair value measurement | ' |
The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined as follows: | |
Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities; | |
Level 2 - Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly; and | |
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
Income tax uncertainties | ' |
The Company's policy classifies interest recognized on an underpayment of income taxes and any statutory penalties recognized on a tax position as income tax expense and the balances at the end of a reporting period are recorded as part of the current or noncurrent reserve for uncertain income tax positions. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | ' | ||||||||||||||||
Accumulated other comprehensive income (loss), net of income taxes, is comprised of the following: | |||||||||||||||||
(in thousands) | Foreign Currency Translation | Unrealized Gain (Loss) on Derivatives | Defined Benefit Obligation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Balance, August 31, 2013 | $ | (27,477 | ) | $ | 3,594 | $ | (3,293 | ) | $ | (27,176 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 19,442 | (1,617 | ) | 550 | 18,375 | ||||||||||||
Amounts reclassified from AOCI | — | 980 | (2 | ) | 978 | ||||||||||||
Net other comprehensive income (loss) | 19,442 | (637 | ) | 548 | 19,353 | ||||||||||||
Balance, November 30, 2013 | $ | (8,035 | ) | $ | 2,957 | $ | (2,745 | ) | $ | (7,823 | ) | ||||||
Schedule of reclassification out of accumulated other comprehensive income (loss) | ' | ||||||||||||||||
The significant items reclassified out of accumulated other comprehensive income (loss) and the corresponding line items in the consolidated statements of operations to which the items were reclassified were as follows: | |||||||||||||||||
Components of AOCI (in thousands) | Location | Three Months Ended November 30, 2013 | |||||||||||||||
Unrealized gain (loss) on derivatives: | |||||||||||||||||
Commodity | Cost of goods sold | $ | (119 | ) | |||||||||||||
Foreign exchange | Net sales | (250 | ) | ||||||||||||||
Foreign exchange | Cost of goods sold | (922 | ) | ||||||||||||||
Foreign exchange | SG&A expenses | 14 | |||||||||||||||
Interest rate | Interest expense | 116 | |||||||||||||||
(1,161 | ) | ||||||||||||||||
Income tax effect | Income taxes (expense) benefit | 181 | |||||||||||||||
Net of income taxes | $ | (980 | ) | ||||||||||||||
Defined benefit obligation: | |||||||||||||||||
Amortization of net gain | SG&A expenses | $ | 3 | ||||||||||||||
Income tax effect | Income taxes (expense) benefit | (1 | ) | ||||||||||||||
Net of income taxes | $ | 2 | |||||||||||||||
Amounts in parentheses reduce earnings. |
Sales_Of_Accounts_Receivable_A
Sales Of Accounts Receivable (Activity of the Deferred Purchase Price Receivables) (Tables) | 3 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Transfers and Servicing [Abstract] | ' | ||||||||||||||||
Deferred Purchase Price Receivables [Table Text Block] | ' | ||||||||||||||||
The following tables summarize the activity of the deferred purchase price receivables for the domestic and international sale of accounts receivable programs: | |||||||||||||||||
Three Months Ended November 30, 2013 | |||||||||||||||||
(in thousands) | Total | Domestic | Australia | Europe | |||||||||||||
Beginning balance | $ | 453,252 | $ | 358,822 | $ | 64,996 | $ | 29,434 | |||||||||
Transfers of accounts receivable | 1,037,205 | 840,571 | 73,120 | 123,514 | |||||||||||||
Collections | (1,042,922 | ) | (847,878 | ) | (65,804 | ) | (129,240 | ) | |||||||||
Program termination | (72,312 | ) | — | (72,312 | ) | — | |||||||||||
Ending balance | $ | 375,223 | $ | 351,515 | $ | — | $ | 23,708 | |||||||||
Three Months Ended November 30, 2012 | |||||||||||||||||
(in thousands) | Total | Domestic | Australia | Europe | |||||||||||||
Beginning balance | $ | 515,481 | $ | 396,919 | $ | 70,073 | $ | 48,489 | |||||||||
Transfers of accounts receivable | 1,206,746 | 936,630 | 126,908 | 143,208 | |||||||||||||
Collections | (1,186,356 | ) | (928,556 | ) | (119,820 | ) | (137,980 | ) | |||||||||
Ending balance | $ | 535,871 | $ | 404,993 | $ | 77,161 | $ | 53,717 | |||||||||
Goodwill_And_Other_Intangible_1
Goodwill And Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill | ' | ||||||||||||||||||||||||
The following table details the changes in the carrying amount of goodwill by reportable segment: | |||||||||||||||||||||||||
Americas | International | ||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Consolidated | |||||||||||||||||||
Balance, August 31, 2013 | $ | 7,267 | $ | 295 | $ | 57,144 | $ | 2,755 | $ | 2,118 | $ | 69,579 | |||||||||||||
Foreign currency translation | — | — | — | 121 | 33 | 154 | |||||||||||||||||||
Balance, November 30, 2013 | $ | 7,267 | $ | 295 | $ | 57,144 | $ | 2,876 | $ | 2,151 | $ | 69,733 | |||||||||||||
Businesses_Held_For_Sale_Disco1
Businesses Held For Sale, Discontinued Operations And Dispositions (Tables) | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Components of assets and liabilities of businesses held for sale | ' | ||||||||
The components of assets and liabilities of businesses held for sale are as follows. | |||||||||
(in thousands) | 30-Nov-13 | 31-Aug-13 | |||||||
Assets: | |||||||||
Accounts receivable | $ | — | $ | 20,313 | |||||
Inventories, net | — | 8,713 | |||||||
Other current assets | — | 3,683 | |||||||
Property, plant and equipment, net of accumulated depreciation and amortization | 1,085 | 10,459 | |||||||
Assets of businesses held for sale | $ | 1,085 | $ | 43,168 | |||||
Liabilities: | |||||||||
Accounts payable-trade | $ | — | $ | 7,615 | |||||
Accrued expenses and other payables | — | 3,251 | |||||||
Liabilities of businesses held for sale | $ | — | $ | 10,866 | |||||
Financial information for discontinued operations | ' | ||||||||
Financial information for discontinued operations was as follows: | |||||||||
Three Months Ended November 30, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Net Sales | $ | 17,298 | $ | 39,711 | |||||
Earnings from discontinued operations before income taxes | 22,845 | 1,250 | |||||||
Credit_Arrangements_Tables
Credit Arrangements (Tables) | 3 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Long-term debt, including the deferred gain from the termination of the interest rate swaps | ' | ||||||||||
Long-term debt, including the deferred gain from the termination of the interest rate swaps, was as follows: | |||||||||||
(in thousands) | Weighted Average | November 30, 2013 | August 31, 2013 | ||||||||
Interest Rate as of November 30, 2013 | |||||||||||
$400 million notes at 6.50% due July 2017 | 5.70% | $ | 410,775 | $ | 411,518 | ||||||
$500 million notes at 7.35% due August 2018 | 6.40% | 521,773 | 522,930 | ||||||||
$330 million notes at 4.875% due May 2023 | 4.90% | 330,000 | 330,000 | ||||||||
Other, including equipment notes | 20,987 | 19,594 | |||||||||
1,283,535 | 1,284,042 | ||||||||||
Less current maturities | 6,232 | 5,228 | |||||||||
$ | 1,277,303 | $ | 1,278,814 | ||||||||
Interest on these notes is payable semiannually. |
Derivatives_And_Risk_Managemen1
Derivatives And Risk Management (Tables) | 3 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Commodity contract commitments | ' | ||||||||||
The following table provides information regarding the Company's commodity contract commitments as of November 30, 2013: | |||||||||||
Commodity | Long/Short | Total | |||||||||
Aluminum | Long | 4,945 | MT | ||||||||
Aluminum | Short | 1,800 | MT | ||||||||
Copper | Long | 476 | MT | ||||||||
Copper | Short | 5,443 | MT | ||||||||
Zinc | Long | 7 | MT | ||||||||
MT =etric Ton | |||||||||||
Derivatives not designated as hedging instruments | ' | ||||||||||
The following tables summarize activities related to the Company's derivative instruments and hedged items recognized in the consolidated statements of operations: | |||||||||||
Three Months Ended November 30, | |||||||||||
Derivatives Not Designated as Hedging Instruments (in thousands) | Location | 2013 | 2012 | ||||||||
Commodity | Cost of goods sold | $ | 510 | $ | (411 | ) | |||||
Commodity | SG&A expenses | — | (588 | ) | |||||||
Foreign exchange | Net sales | (159 | ) | (11 | ) | ||||||
Foreign exchange | Cost of goods sold | (121 | ) | — | |||||||
Foreign exchange | SG&A expenses | (4,693 | ) | (36 | ) | ||||||
Other | Cost of goods sold | — | 15 | ||||||||
Loss before income taxes | $ | (4,463 | ) | $ | (1,031 | ) | |||||
Derivatives designated as fair value hedging instruments | ' | ||||||||||
Hedged items relate to firm commitments on commercial sales and purchases and capital expenditures. | |||||||||||
Derivatives Designated as Fair Value Hedging Instruments (in thousands) | Three Months Ended November 30, | ||||||||||
Location | 2013 | 2012 | |||||||||
Foreign exchange | Net sales | $ | (113 | ) | $ | — | |||||
Foreign exchange | Cost of goods sold | (127 | ) | (229 | ) | ||||||
Loss before income taxes | $ | (240 | ) | $ | (229 | ) | |||||
Hedged items designated as fair value hedging instruments | ' | ||||||||||
Hedged Items Designated as Fair Value Hedging Instruments (in thousands) | Three Months Ended November 30, | ||||||||||
Location | 2013 | 2012 | |||||||||
Foreign exchange | Net sales | $ | 93 | $ | (23 | ) | |||||
Foreign exchange | Cost of goods sold | 125 | 157 | ||||||||
Gain before income taxes | $ | 218 | $ | 134 | |||||||
Effective portion of derivatives designated as cash flow hedging instruments recognized In accumulated other comprehensive income (loss) | ' | ||||||||||
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss) (in thousands) | Three Months Ended November 30, | ||||||||||
2013 | 2012 | ||||||||||
Commodity | $ | (89 | ) | $ | 14 | ||||||
Foreign exchange | (1,528 | ) | 303 | ||||||||
Gain (loss), net of income taxes | $ | (1,617 | ) | $ | 317 | ||||||
Effective portion of derivatives designated as cash flow hedging instruments reclassified from accumulated other comprehensive income (loss) | ' | ||||||||||
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss) (in thousands) | Three Months Ended November 30, | ||||||||||
Location | 2013 | 2012 | |||||||||
Commodity | Cost of goods sold | $ | (89 | ) | $ | — | |||||
Foreign exchange | Net sales | (231 | ) | 51 | |||||||
Foreign exchange | Cost of goods sold | (758 | ) | (41 | ) | ||||||
Foreign exchange | SG&A expenses | 12 | 10 | ||||||||
Interest rate | Interest expense | 86 | 102 | ||||||||
Gain (loss), net of income taxes | $ | (980 | ) | $ | 122 | ||||||
Derivative assets | ' | ||||||||||
The fair value of the Company's derivative instruments on the consolidated balance sheets was as follows: | |||||||||||
Derivative Assets (in thousands) | November 30, 2013 | August 31, 2013 | |||||||||
Commodity — not designated for hedge accounting | $ | 1,357 | $ | 1,066 | |||||||
Foreign exchange — designated for hedge accounting | 1,414 | 1,626 | |||||||||
Foreign exchange — not designated for hedge accounting | 1,971 | 1,238 | |||||||||
Derivative assets (other current assets and other assets)* | $ | 4,742 | $ | 3,930 | |||||||
Derivative liabilities | ' | ||||||||||
Derivative Liabilities (in thousands) | November 30, 2013 | August 31, 2013 | |||||||||
Commodity — designated for hedge accounting | $ | 39 | $ | 129 | |||||||
Commodity — not designated for hedge accounting | 1,302 | 1,268 | |||||||||
Foreign exchange — designated for hedge accounting | 889 | 432 | |||||||||
Foreign exchange — not designated for hedge accounting | 1,633 | 1,738 | |||||||||
Derivative liabilities (accrued expenses, other payables and long-term liabilities)* | $ | 3,863 | $ | 3,567 | |||||||
_________________ | |||||||||||
* Derivative assets and liabilities do not include the hedged items designated as fair value hedges. |
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Financial assets and financial liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||
The following tables summarize information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis: | |||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
(in thousands) | November 30, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||
(Level 1) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Money market investments (1) | $ | 371,574 | $ | 371,574 | $ | — | $ | — | |||||||||||
Commodity derivative assets (2) | 1,357 | 1,357 | — | — | |||||||||||||||
Foreign exchange derivative assets (2) | 3,385 | — | 3,385 | — | |||||||||||||||
Liabilities: | |||||||||||||||||||
Commodity derivative liabilities (2) | 1,341 | 1,302 | 39 | — | |||||||||||||||
Foreign exchange derivative liabilities (2) | 2,522 | — | 2,522 | — | |||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
(in thousands) | August 31, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||
(Level 1) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Money market investments (1) | $ | 236,727 | $ | 236,727 | $ | — | $ | — | |||||||||||
Commodity derivative assets (2) | 1,066 | 1,066 | — | — | |||||||||||||||
Foreign exchange derivative assets (2) | 2,864 | — | 2,864 | — | |||||||||||||||
Liabilities: | |||||||||||||||||||
Commodity derivative liabilities (2) | 1,397 | 1,268 | 129 | — | |||||||||||||||
Foreign exchange derivative liabilities (2) | 2,170 | — | 2,170 | — | |||||||||||||||
_________________ | |||||||||||||||||||
(1) Money market investments are short-term in nature, and the value is determined by broker quoted prices in active markets. The investment portfolio mix can change each period based on the Company's assessment of investment options. | |||||||||||||||||||
(2) Derivative assets and liabilities classified as Level 1 are commodity futures contracts valued based on quoted market prices in the London Metal Exchange or the New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Further discussion regarding the Company's use of derivatives and the classification of the assets and liabilities is included in Note 8, Derivatives and Risk Management. | |||||||||||||||||||
Financial assets and liabilities not required to be measured at fair value | ' | ||||||||||||||||||
The carrying values and estimated fair values of the Company's financial assets and liabilities that are not required to be measured at fair value on the consolidated balance sheets are as follows: | |||||||||||||||||||
November 30, 2013 | August 31, 2013 | ||||||||||||||||||
(in thousands) | Fair Value Hierarchy | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
$400 million notes at 6.50% due July 2017 (1) | Level 2 | $ | 410,775 | $ | 447,760 | $ | 411,518 | $ | 443,646 | ||||||||||
$500 million notes at 7.35% due August 2018 (1) | Level 2 | 521,773 | 574,840 | 522,930 | 570,429 | ||||||||||||||
$330 million notes at 4.875% due May 2023 (1) | Level 2 | 330,000 | 311,025 | 330,000 | 298,650 | ||||||||||||||
(1) The fair value of the notes is calculated based on indicated market values. |
Earnings_Per_Share_Attributabl1
Earnings Per Share Attributable To CMC (Tables) | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Calculations of the basic and diluted earnings per share | ' | ||||||||
The calculations of the basic and diluted earnings per share for the three months ended November 30, 2013 and 2012 are as follows: | |||||||||
Three Months Ended November 30, | |||||||||
(in thousands, except share data) | 2013 | 2012 | |||||||
Net earnings attributable to CMC | $ | 45,919 | $ | 49,717 | |||||
Basic earnings per share: | |||||||||
Shares outstanding for basic earnings per share | 117,070,499 | 116,336,504 | |||||||
Basic earnings per share attributable to CMC: | $ | 0.39 | $ | 0.43 | |||||
Diluted earnings per share: | |||||||||
Shares outstanding for basic earnings per share | 117,070,499 | 116,336,504 | |||||||
Effect of dilutive securities: | |||||||||
Share-based incentive/purchase plans | 1,086,112 | 757,123 | |||||||
Shares outstanding for diluted earnings per share | 118,156,611 | 117,093,627 | |||||||
Diluted earnings per share attributable to CMC: | $ | 0.39 | $ | 0.42 | |||||
Anti-dilutive shares not included above | 1,364,036 | 2,945,188 | |||||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of certain financial information from continuing operations by reportable segment | ' | ||||||||||||||||||||||||||||||||
The following is a summary of certain financial information from continuing operations by reportable segment: | |||||||||||||||||||||||||||||||||
Three Months Ended November 30, 2013 | |||||||||||||||||||||||||||||||||
Americas | International | ||||||||||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Corporate | Eliminations | Continuing Operations | |||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 293,475 | $ | 291,573 | $ | 353,992 | $ | 228,492 | $ | 509,174 | $ | 6,185 | $ | — | $ | 1,682,891 | |||||||||||||||||
Intersegment sales | 44,727 | 189,578 | 4,226 | 658 | 1,984 | — | (241,173 | ) | — | ||||||||||||||||||||||||
Net sales | 338,202 | 481,151 | 358,218 | 229,150 | 511,158 | 6,185 | (241,173 | ) | 1,682,891 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | 839 | 65,814 | 2,217 | 15,268 | 503 | (18,049 | ) | 597 | 67,189 | ||||||||||||||||||||||||
Total assets* | 281,102 | 594,224 | 608,313 | 499,366 | 858,567 | 1,182,688 | (493,199 | ) | 3,531,061 | ||||||||||||||||||||||||
Three Months Ended November 30, 2012 | |||||||||||||||||||||||||||||||||
Americas | International | ||||||||||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Corporate | Eliminations | Continuing Operations | |||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 307,471 | $ | 267,105 | $ | 352,747 | $ | 215,858 | $ | 603,535 | $ | 2,799 | $ | — | $ | 1,749,515 | |||||||||||||||||
Intersegment sales | 44,490 | 189,633 | 3,845 | 6,209 | 5,053 | — | (249,230 | ) | — | ||||||||||||||||||||||||
Net sales | 351,961 | 456,738 | 356,592 | 222,067 | 608,588 | 2,799 | (249,230 | ) | 1,749,515 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | 4,494 | 51,660 | 10,192 | 876 | 40,161 | (17,370 | ) | (660 | ) | 89,353 | |||||||||||||||||||||||
Total assets at August 31, 2013* | 309,599 | 598,478 | 631,510 | 487,613 | 838,413 | 1,075,594 | (496,946 | ) | 3,444,261 | ||||||||||||||||||||||||
* Excludes total assets from discontinued operations of $6.6 million at November 30, 2013 and $50.5 million at August 31, 2013. | |||||||||||||||||||||||||||||||||
Reconciliations of earnings from continuing operations to adjusted operating profit | ' | ||||||||||||||||||||||||||||||||
Reconciliations of earnings from continuing operations to adjusted operating profit are provided below: | |||||||||||||||||||||||||||||||||
Three Months Ended November 30, | |||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||
Earnings from continuing operations | $ | 31,961 | $ | 48,931 | |||||||||||||||||||||||||||||
Income taxes | 15,091 | 22,189 | |||||||||||||||||||||||||||||||
Interest expense | 19,578 | 17,024 | |||||||||||||||||||||||||||||||
Discounts on sales of accounts receivable | 559 | 1,209 | |||||||||||||||||||||||||||||||
Adjusted operating profit | $ | 67,189 | $ | 89,353 | |||||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (AOCI by Components) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance, August 31, 2013 | ($27,176) | ' |
Other comprehensive income (loss) before reclassifications | 18,375 | ' |
Amounts reclassified from AOCI | 978 | ' |
Net other comprehensive income (loss) | 19,353 | 23,412 |
Balance, November 30, 2013 | -7,823 | ' |
Foreign Currency Translation | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance, August 31, 2013 | -27,477 | ' |
Other comprehensive income (loss) before reclassifications | 19,442 | ' |
Amounts reclassified from AOCI | 0 | ' |
Net other comprehensive income (loss) | 19,442 | ' |
Balance, November 30, 2013 | -8,035 | ' |
Unrealized Gain (Loss) on Derivatives | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance, August 31, 2013 | 3,594 | ' |
Other comprehensive income (loss) before reclassifications | -1,617 | ' |
Amounts reclassified from AOCI | 980 | ' |
Net other comprehensive income (loss) | -637 | ' |
Balance, November 30, 2013 | 2,957 | ' |
Defined Benefit Plans Adjustment | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance, August 31, 2013 | -3,293 | ' |
Other comprehensive income (loss) before reclassifications | 550 | ' |
Amounts reclassified from AOCI | -2 | ' |
Net other comprehensive income (loss) | 548 | ' |
Balance, November 30, 2013 | ($2,745) | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Reclassification from AOCI) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Unrealized gain (loss) on derivatives: | ' | ' |
Income taxes (expense) benefit | $181 | ($49) |
Net of income taxes | -980 | 122 |
Unrealized gain (loss) on derivatives | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' |
Reclassification adjustments from AOCI on derivatives, before tax | -1,161 | ' |
Income taxes (expense) benefit | 181 | ' |
Net of income taxes | -980 | ' |
Unrealized gain (loss) on derivatives | Commodity | Cost of goods sold | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' |
Reclassification adjustments from AOCI on derivatives, before tax | -119 | ' |
Unrealized gain (loss) on derivatives | Foreign exchange | Cost of goods sold | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' |
Reclassification adjustments from AOCI on derivatives, before tax | -922 | ' |
Unrealized gain (loss) on derivatives | Foreign exchange | Net sales | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' |
Reclassification adjustments from AOCI on derivatives, before tax | -250 | ' |
Unrealized gain (loss) on derivatives | Foreign exchange | SG&A expenses | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' |
Reclassification adjustments from AOCI on derivatives, before tax | 14 | ' |
Unrealized gain (loss) on derivatives | Interest rate | Interest expense | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' |
Reclassification adjustments from AOCI on derivatives, before tax | 116 | ' |
Defined benefit obligation | ' | ' |
Defined benefit obligation: | ' | ' |
Income taxes (expense) benefit | -1 | ' |
Net of Income taxes | 2 | ' |
Defined benefit obligation | SG&A expenses | ' | ' |
Defined benefit obligation: | ' | ' |
Amortization of net gain | $3 | ' |
Sales_Of_Accounts_Receivable_N
Sales Of Accounts Receivable (Narrative) (Details) | 3 Months Ended | 3 Months Ended | |||||||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | |
USD ($) | USD ($) | Domestic [Member] | Domestic [Member] | International [Member] | International [Member] | Europe [Member] | Australia [Member] | Australia [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | AUD | USD ($) | ||||
entities | |||||||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of financial institutions | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Advances, maximum percentage of eligible receivables | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' |
Percentage of eligible receivables sold | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Sale of receivables maximum facility | ' | ' | $200,000,000 | ' | ' | ' | ' | 75,000,000 | ' |
Accounts receivable sold | ' | ' | 356,900,000 | 358,800,000 | 55,400,000 | 121,200,000 | ' | ' | 0 |
Advance payment received on sale of account receivable | ' | ' | 0 | 0 | 31,700,000 | 24,500,000 | ' | ' | ' |
Cash proceeds | 162,800,000 | 287,000,000 | ' | ' | ' | ' | ' | ' | ' |
Cash payments | 159,400,000 | 333,600,000 | ' | ' | ' | ' | ' | ' | ' |
Discounts on sales of accounts receivable | $559,000 | $1,209,000 | ' | ' | ' | ' | ' | ' | ' |
Sales_Of_Accounts_Receivable_A1
Sales Of Accounts Receivable (Activity of Deferred Purchase Price Receivables) (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
In Thousands, unless otherwise specified | Deferred Purchase Price Receivables [Member] | Deferred Purchase Price Receivables [Member] | Domestic [Member] | Domestic [Member] | Australia [Member] | Australia [Member] | Europe [Member] | Europe [Member] | ||
Deferred Purchase Price Receivables [Member] | Deferred Purchase Price Receivables [Member] | Deferred Purchase Price Receivables [Member] | Deferred Purchase Price Receivables [Member] | Deferred Purchase Price Receivables [Member] | Deferred Purchase Price Receivables [Member] | |||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $927,100 | $989,694 | $453,252 | $515,481 | $358,822 | $396,919 | $64,996 | $70,073 | $29,434 | $48,489 |
Transfers of accounts receivable | ' | ' | 1,037,205 | 1,206,746 | 840,571 | 936,630 | 73,120 | 126,908 | 123,514 | 143,208 |
Collections | ' | ' | -1,042,922 | -1,186,356 | -847,878 | -928,556 | -65,804 | -119,820 | -129,240 | -137,980 |
Program termination | ' | ' | -72,312 | ' | 0 | ' | -72,312 | ' | 0 | ' |
Ending balance | $927,100 | $989,694 | $375,223 | $535,871 | $351,515 | $404,993 | $0 | $77,161 | $23,708 | $53,717 |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Inventory, LIFO reserve | $189.60 | $185.50 |
Percentage of total inventory valued at LIFO | 39.00% | 43.00% |
Raw materials | $74.60 | $66.70 |
Goodwill_And_Other_Intangible_2
Goodwill And Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Gross carrying amounts of the Company's intangible assets | $43.30 | ' | $42.90 |
Amortization expense for intangible assets | $1.20 | $1.20 | ' |
Goodwill_And_Other_Intangible_3
Goodwill And Other Intangible Assets (Changes in the Carrying Amount of Goodwill) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Nov. 30, 2013 |
Goodwill [Roll Forward] | ' |
Balance, August 31, 2013 | $69,579 |
Foreign currency translation | 154 |
Balance, November 30, 2013 | 69,733 |
Americas Recycling [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance, August 31, 2013 | 7,267 |
Foreign currency translation | 0 |
Balance, November 30, 2013 | 7,267 |
Americas Mills [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance, August 31, 2013 | 295 |
Foreign currency translation | 0 |
Balance, November 30, 2013 | 295 |
Americas Fabrication [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance, August 31, 2013 | 57,144 |
Foreign currency translation | 0 |
Balance, November 30, 2013 | 57,144 |
International Mill [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance, August 31, 2013 | 2,755 |
Foreign currency translation | 121 |
Balance, November 30, 2013 | 2,876 |
International Marketing and Distribution [Member] | ' |
Goodwill [Roll Forward] | ' |
Balance, August 31, 2013 | 2,118 |
Foreign currency translation | 33 |
Balance, November 30, 2013 | $2,151 |
Businesses_Held_For_Sale_Disco2
Businesses Held For Sale, Discontinued Operations And Dispositions (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2012 | Oct. 17, 2013 | Nov. 30, 2013 | Nov. 30, 2012 | |
CMCS [Member] | Howell [Member] | Howell [Member] | Trinecke Zelezarny [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' |
Business divestiture disposal price | ' | ' | $3,900,000 | $58,500,000 | ' | $29,000,000 |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | ' | ' | ' | ' | 23,800,000 | ' |
Escrow receivable | ' | ' | ' | 4,200,000 | ' | ' |
Sale of Stock, Percentage of Ownership before Transaction | ' | ' | ' | ' | ' | 11.00% |
Cost-method investments, pre-tax gains | $0 | $26,088,000 | ' | ' | ' | $26,100,000 |
Businesses_Held_For_Sale_Disco3
Businesses Held For Sale, Discontinued Operations And Dispositions (Components Of Assets And Liabilities Of Businesses Held For Sale) (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Accounts receivable | $0 | $20,313 |
Inventories, net | 0 | 8,713 |
Other current assets | 0 | 3,683 |
Property, plant and equipment, net of accumulated depreciation and amortization | 1,085 | 10,459 |
Assets of businesses held for sale | 1,085 | 43,168 |
Liabilities: | ' | ' |
Accounts payable-trade | 0 | 7,615 |
Accrued expenses and other payables | 0 | 3,251 |
Liabilities of businesses held for sale | $0 | $10,866 |
Businesses_Held_For_Sale_Disco4
Businesses Held For Sale, Discontinued Operations And Dispositions (Financial Information for Discontinued Operations) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Earnings from discontinued operations before income taxes | $22,845 | $1,250 |
Segment, Discontinued Operations [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Net Sales | 17,298 | 39,711 |
Earnings from discontinued operations before income taxes | $22,845 | $1,250 |
Credit_Arrangements_Narrative_
Credit Arrangements (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | 31-May-13 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | 31-May-13 | |
CMCP [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | $330 million notes at 4.875% due May 2023 [Member] | $330 million notes at 4.875% due May 2023 [Member] | $330 million notes at 4.875% due May 2023 [Member] | Change of control triggering event | $200 million notes at 5.625% due November 2013 [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | $330,000,000 | $330,000,000 | $330,000,000 | ' | $200,000,000 |
Debt instrument, interest rate, stated percentage | ' | ' | ' | ' | ' | ' | ' | 4.88% | 4.88% | 4.88% | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | 15-May-23 | ' | ' | ' | ' |
Proceeds from issuance of debt, net of underwriting discounts and debt issuance costs | ' | ' | ' | ' | ' | ' | ' | 325,000,000 | ' | ' | ' | ' |
Debt extinguishment total cash outflow | ' | ' | ' | ' | ' | ' | ' | ' | 205.3 | ' | ' | ' |
Redemption purchase price to principal amount, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 101.00% | ' |
Repayments of Long-term debt | 1,551,000 | 1,284,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, current borrowing capacity | ' | ' | ' | ' | 66,300,000 | 300,000,000 | 50,000,000 | ' | ' | ' | ' | ' |
Revolving credit facility, maturity date | ' | ' | ' | ' | ' | 27-Dec-16 | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' |
Stand by letters of credit outstanding amount | ' | ' | ' | ' | ' | ' | 35,200,000 | ' | ' | ' | ' | ' |
Minimum interest coverage ratio | ' | ' | ' | ' | ' | 300.00% | ' | ' | ' | ' | ' | ' |
Actual interest coverage ratio | ' | ' | ' | ' | ' | 496.00% | ' | ' | ' | ' | ' | ' |
Maximum debt to capitalization ratio | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' |
Actual debt to capitalization ratio | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Net Proceeds From Termination Of Interest Rate Swaps | ' | ' | 52,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized deferred gain on termination of interest rate swaps | 32,500,000 | ' | ' | 34,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of interest rate swaps termination gain | 1,900,000 | 2,908,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period total borrowing | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Period total payments | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Interest paid | $9,500,000 | $4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit_Arrangements_Longterm_D
Credit Arrangements (Long-term Debt, Including the Deferred Gain from the Termination of the Interest Rate Swaps) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | |
Debt Instrument [Line Items] | ' | ' | ' |
Total long-term debt including current maturities | $1,283,535,000 | $1,284,042,000 | ' |
Current maturities of long-term debt | 6,232,000 | 5,228,000 | ' |
Long-term debt | 1,277,303,000 | 1,278,814,000 | ' |
$400 million notes at 6.50% due July 2017 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, face amount | 400,000,000 | 400,000,000 | ' |
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% | ' |
Debt instrument, maturity date | 'July 2017 | 'July 2017 | ' |
Weighted average interest rate | 5.70% | ' | ' |
Total long-term debt including current maturities | 410,775,000 | 411,518,000 | ' |
$500 million notes at 7.35% due August 2018 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, face amount | 500,000,000 | 500,000,000 | ' |
Debt instrument, interest rate, stated percentage | 7.35% | 7.35% | ' |
Debt instrument, maturity date | 'August 2018 | 'August 2018 | ' |
Weighted average interest rate | 6.40% | ' | ' |
Total long-term debt including current maturities | 521,773,000 | 522,930,000 | ' |
$330 million notes at 4.875% due May 2023 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, face amount | 330,000,000 | 330,000,000 | 330,000,000 |
Debt instrument, interest rate, stated percentage | 4.88% | 4.88% | 4.88% |
Debt instrument, maturity date | 'May 15, 2023 | 'May 15, 2023 | ' |
Weighted average interest rate | 4.90% | ' | ' |
Total long-term debt including current maturities | 330,000,000 | 330,000,000 | ' |
Other, including equipment notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Total long-term debt including current maturities | $20,987,000 | $19,594,000 | ' |
Derivatives_And_Risk_Managemen2
Derivatives And Risk Management (Narrative) (Details) (USD $) | Nov. 30, 2013 |
In Millions, unless otherwise specified | |
Foreign exchange [Member] | ' |
Derivative [Line Items] | ' |
Derivative, Notional Amount | $433.30 |
Commodity [Member] | ' |
Derivative [Line Items] | ' |
Derivative, Notional Amount | $54.90 |
Derivatives_And_Risk_Managemen3
Derivatives And Risk Management (Commodity Contract Commitments) (Details) | Nov. 30, 2013 |
t | |
Aluminum [Member] | Long [Member] | ' |
Derivative [Line Items] | ' |
Commodity Contract Commitments | 4,945 |
Aluminum [Member] | Short [Member] | ' |
Derivative [Line Items] | ' |
Commodity Contract Commitments | 1,800 |
Copper [Member] | Long [Member] | ' |
Derivative [Line Items] | ' |
Commodity Contract Commitments | 476 |
Copper [Member] | Short [Member] | ' |
Derivative [Line Items] | ' |
Commodity Contract Commitments | 5,443 |
Zinc [Member] | Long [Member] | ' |
Derivative [Line Items] | ' |
Commodity Contract Commitments | 7 |
Derivatives_And_Risk_Managemen4
Derivatives And Risk Management (Derivatives Not Designated As Hedging Instruments) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for derivatives not designated as hedges | ($4,463) | ($1,031) |
Commodity [Member] | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for derivatives not designated as hedges | 510 | -411 |
Commodity [Member] | SG&A expenses [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for derivatives not designated as hedges | 0 | -588 |
Foreign exchange [Member] | Net sales | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for derivatives not designated as hedges | -159 | -11 |
Foreign exchange [Member] | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for derivatives not designated as hedges | -121 | 0 |
Foreign exchange [Member] | SG&A expenses [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for derivatives not designated as hedges | -4,693 | -36 |
Other [Member] | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for derivatives not designated as hedges | $0 | $15 |
Derivatives_And_Risk_Managemen5
Derivatives And Risk Management (Derivatives Designated As Fair Value Hedging Instruments) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for fair value hedges | ($240) | ($229) |
Foreign exchange [Member] | Net sales | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for fair value hedges | -113 | 0 |
Foreign exchange [Member] | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for fair value hedges | ($127) | ($229) |
Derivatives_And_Risk_Managemen6
Derivatives And Risk Management (Hedged Items Designated As Fair Value Hedging Instruments) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for hedged items of fair value hedges | $218 | $134 |
Foreign exchange [Member] | Net sales | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for hedged items of fair value hedges | 93 | -23 |
Foreign exchange [Member] | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) before income taxes for hedged items of fair value hedges | $125 | $157 |
Derivatives_And_Risk_Managemen7
Derivatives And Risk Management (Effective Portion Of Derivatives Designated As Cash Flow Hedging Instruments Recognized In Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges recognized in AOCI | ($1,617) | $317 |
Commodity [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges recognized in AOCI | -89 | 14 |
Foreign exchange [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges recognized in AOCI | ($1,528) | $303 |
Derivatives_And_Risk_Managemen8
Derivatives And Risk Management (Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges reclassified from AOCI | ($980) | $122 |
Commodity [Member] | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges reclassified from AOCI | -89 | 0 |
Foreign exchange [Member] | Net sales | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges reclassified from AOCI | -231 | 51 |
Foreign exchange [Member] | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges reclassified from AOCI | -758 | -41 |
Foreign exchange [Member] | SG&A expenses [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges reclassified from AOCI | 12 | 10 |
Interest rate | Interest expense | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss), net of income taxes, for cash flow hedges reclassified from AOCI | $86 | $102 |
Derivatives_And_Risk_Managemen9
Derivatives And Risk Management (Derivative Assets) (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets and other assets) | $4,742 | [1] | $3,930 | [1] |
Commodity [Member] | Not designated for hedge accounting [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets and other assets) | 1,357 | 1,066 | ||
Foreign exchange [Member] | Designated for hedge accounting [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets and other assets) | 1,414 | 1,626 | ||
Foreign exchange [Member] | Not designated for hedge accounting [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets and other assets) | $1,971 | $1,238 | ||
[1] | * Derivative assets and liabilities do not include the hedged items designated as fair value hedges. |
Recovered_Sheet1
Derivatives And Risk Management (Derivative Liabilities) (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses, other payables and long-term liabilities) | $3,863 | [1] | $3,567 | [1] |
Commodity [Member] | Designated for hedge accounting [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses, other payables and long-term liabilities) | 39 | 129 | ||
Commodity [Member] | Not designated for hedge accounting [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses, other payables and long-term liabilities) | 1,302 | 1,268 | ||
Foreign exchange [Member] | Designated for hedge accounting [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses, other payables and long-term liabilities) | 889 | 432 | ||
Foreign exchange [Member] | Not designated for hedge accounting [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses, other payables and long-term liabilities) | $1,633 | $1,738 | ||
[1] | * Derivative assets and liabilities do not include the hedged items designated as fair value hedges. |
Fair_Value_Narrative_Details
Fair Value (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Nov. 30, 2013 |
levels | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Number of fair value hierarchy | 3 |
Fair value, inputs, level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Plant, property and equipment | 3.8 |
Fair_Value_Financial_Assets_an
Fair Value (Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Money market investments [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | $371,574 | [1] | $236,727 | [1] |
Commodity derivatives [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 1,357 | [2] | 1,066 | [2] |
Liabilities, Fair Value Disclosure, Recurring | 1,341 | [2] | 1,397 | [2] |
Foreign exchange derivatives [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 3,385 | [2] | 2,864 | [2] |
Liabilities, Fair Value Disclosure, Recurring | 2,522 | [2] | 2,170 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market investments [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 371,574 | [1] | 236,727 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commodity derivatives [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 1,357 | [2] | 1,066 | [2] |
Liabilities, Fair Value Disclosure, Recurring | 1,302 | [2] | 1,268 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign exchange derivatives [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 0 | [2] | 0 | [2] |
Liabilities, Fair Value Disclosure, Recurring | 0 | [2] | 0 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | Money market investments [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 0 | [1] | 0 | [1] |
Significant Other Observable Inputs (Level 2) [Member] | Commodity derivatives [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 0 | [2] | 0 | [2] |
Liabilities, Fair Value Disclosure, Recurring | 39 | [2] | 129 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | Foreign exchange derivatives [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 3,385 | [2] | 2,864 | [2] |
Liabilities, Fair Value Disclosure, Recurring | 2,522 | [2] | 2,170 | [2] |
Significant Unobservable Inputs (Level 3) [Member] | Money market investments [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs (Level 3) [Member] | Commodity derivatives [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 0 | [2] | 0 | [2] |
Liabilities, Fair Value Disclosure, Recurring | 0 | [2] | 0 | [2] |
Significant Unobservable Inputs (Level 3) [Member] | Foreign exchange derivatives [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Recurring | 0 | [2] | 0 | [2] |
Liabilities, Fair Value Disclosure, Recurring | $0 | [2] | $0 | [2] |
[1] | Money market investments are short-term in nature, and the value is determined by broker quoted prices in active markets. The investment portfolio mix can change each period based on the Company's assessment of investment options. | |||
[2] | Derivative assets and liabilities classified as Level 1 are commodity futures contracts valued based on quoted market prices in the London Metal Exchange or the New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Further discussion regarding the Company's use of derivatives and the classification of the assets and liabilities is included in Note 8, Derivatives and Risk Management. |
Fair_Value_Financial_Assets_an1
Fair Value (Financial Assets and Liabilities Not Required to Be Measured at Fair Value) (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | $1,283,535 | $1,284,042 | ||
$400 million notes at 6.50% due July 2017 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | 410,775 | 411,518 | ||
$400 million notes at 6.50% due July 2017 [Member] | Level 2 [Member] | Carrying Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | 410,775 | 411,518 | ||
$400 million notes at 6.50% due July 2017 [Member] | Level 2 [Member] | Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | 447,760 | [1] | 443,646 | [1] |
$500 million notes at 7.35% due August 2018 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | 521,773 | 522,930 | ||
$500 million notes at 7.35% due August 2018 [Member] | Level 2 [Member] | Carrying Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | 521,773 | 522,930 | ||
$500 million notes at 7.35% due August 2018 [Member] | Level 2 [Member] | Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | 574,840 | [1] | 570,429 | [1] |
$330 million notes at 4.875% due May 2023 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | 330,000 | 330,000 | ||
$330 million notes at 4.875% due May 2023 [Member] | Level 2 [Member] | Carrying Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | 330,000 | 330,000 | ||
$330 million notes at 4.875% due May 2023 [Member] | Level 2 [Member] | Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt and Capital Lease Obligations | $311,025 | [1] | $298,650 | [1] |
[1] | (1) The fair value of the notes is calculated based on indicated market values. |
Income_Tax_Narrative_Details
Income Tax (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax rate from continuing operations | 32.10% | 31.20% |
Effective income tax rate from discontinued operations | 38.90% | 37.00% |
Net income tax payments | $1.40 | $0.30 |
Gross unrecognized tax benefits | 28.6 | 27.4 |
Possible unrecognized tax benefits reduction during the next twelve months | $17.90 | ' |
Sharebased_Compensation_Plans_
Share-based Compensation Plans (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | 5.5 | $4.50 | ' |
SARs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
SARs, granted, number | ' | 200,000 | ' |
Granted, weighted average exercise price | ' | $14.12 | ' |
Vesting period in years | ' | ' | '3 years |
Contractual term | '7 years | ' | ' |
RSUs And PSUs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares granted | 1,100,000 | 1,300,000 | ' |
Weighted average grant-date fair value | 16.75 | $12.99 | ' |
Vesting period in years | '3 years | ' | ' |
Certain RSUs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period in years | '4 years | ' | ' |
PSU [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period in years | '3 years | ' | '3 years |
Share-Based Liability Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares granted | 59,565 | 204,069 | ' |
Equivalent number of shares outstanding | 2,016,522 | ' | ' |
Equivalent number of shares expected to vest | 1,717,684 | ' | ' |
Earnings_Per_Share_Attributabl2
Earnings Per Share Attributable To CMC (Calculations of the Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' |
Net earnings attributable to CMC | $45,919 | $49,717 |
Basic earnings per share: | ' | ' |
Shares outstanding for basic earnings per share | 117,070,499 | 116,336,504 |
Basic earnings per share attributable to CMC: | $0.39 | $0.43 |
Diluted earnings per share: | ' | ' |
Shares outstanding for basic earnings per share | 117,070,499 | 116,336,504 |
Effect of dilutive securities: | ' | ' |
Share-based incentive/purchase plans | 1,086,112 | 757,123 |
Shares outstanding for diluted earnings per share | 118,156,611 | 117,093,627 |
Diluted earnings per share attributable to CMC: | $0.39 | $0.42 |
Anti-dilutive shares not included above | 1,364,036 | 2,945,188 |
Earnings_Per_Share_Attributabl3
Earnings Per Share Attributable To CMC (Narrative) (Details) | 3 Months Ended |
Nov. 30, 2013 | |
Earnings Per Share [Abstract] | ' |
Treasury Stock, Shares, Acquired | 0 |
Remaining number of shares authorized to be purchased | 8,259,647 |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Details) (USD $) | Nov. 30, 2013 | Sep. 18, 2008 |
In Millions, unless otherwise specified | states | entities |
Guarantee of Indebtedness of Others [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Maximum credit facility | 4 | ' |
Guarantor obligations, maximum exposure | 2.8 | ' |
Class Action Antitrust Lawsuit [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Number of steel manufacturing companies | ' | 9 |
Number of states | 28 | ' |
Business_Segments_Narrative_De
Business Segments (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2013 | Aug. 31, 2013 |
segments | Segment, Discontinued Operations [Member] | Segment, Discontinued Operations [Member] | |
Number of operating segments | 5 | ' | ' |
Total assets | ' | $6.60 | $50.50 |
Business_Segments_Summary_of_C
Business Segments (Summary of Certain Financial Information from Continuing Operations by Reportable Segment) (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | $1,682,891 | $1,749,515 | ' | ||
Adjusted operating profit (loss) | 67,189 | 89,353 | ' | ||
Segment, Continuing Operations [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | 1,682,891 | 1,749,515 | ' | ||
Intersegment sales | 0 | 0 | ' | ||
Net sales | 1,682,891 | 1,749,515 | ' | ||
Adjusted operating profit (loss) | 67,189 | 89,353 | ' | ||
Total assets | 3,531,061 | [1] | ' | 3,444,261 | [1] |
Americas Recycling [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | 293,475 | 307,471 | ' | ||
Intersegment sales | 44,727 | 44,490 | ' | ||
Net sales | 338,202 | 351,961 | ' | ||
Adjusted operating profit (loss) | 839 | 4,494 | ' | ||
Total assets | 281,102 | [1] | ' | 309,599 | [1] |
Americas Mills [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | 291,573 | 267,105 | ' | ||
Intersegment sales | 189,578 | 189,633 | ' | ||
Net sales | 481,151 | 456,738 | ' | ||
Adjusted operating profit (loss) | 65,814 | 51,660 | ' | ||
Total assets | 594,224 | [1] | ' | 598,478 | [1] |
Americas Fabrication [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | 353,992 | 352,747 | ' | ||
Intersegment sales | 4,226 | 3,845 | ' | ||
Net sales | 358,218 | 356,592 | ' | ||
Adjusted operating profit (loss) | 2,217 | 10,192 | ' | ||
Total assets | 608,313 | [1] | ' | 631,510 | [1] |
International Mill [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | 228,492 | 215,858 | ' | ||
Intersegment sales | 658 | 6,209 | ' | ||
Net sales | 229,150 | 222,067 | ' | ||
Adjusted operating profit (loss) | 15,268 | 876 | ' | ||
Total assets | 499,366 | [1] | ' | 487,613 | [1] |
International Marketing and Distribution [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | 509,174 | 603,535 | ' | ||
Intersegment sales | 1,984 | 5,053 | ' | ||
Net sales | 511,158 | 608,588 | ' | ||
Adjusted operating profit (loss) | 503 | 40,161 | ' | ||
Total assets | 858,567 | [1] | ' | 838,413 | [1] |
Corporate [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | 6,185 | 2,799 | ' | ||
Intersegment sales | 0 | 0 | ' | ||
Net sales | 6,185 | 2,799 | ' | ||
Adjusted operating profit (loss) | -18,049 | -17,370 | ' | ||
Total assets | 1,182,688 | [1] | ' | 1,075,594 | [1] |
Eliminations [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales-unaffiliated customers | 0 | 0 | ' | ||
Intersegment sales | -241,173 | -249,230 | ' | ||
Net sales | -241,173 | -249,230 | ' | ||
Adjusted operating profit (loss) | 597 | -660 | ' | ||
Total assets | ($493,199) | [1] | ' | ($496,946) | [1] |
[1] | Excludes total assets from discontinued operations of $6.6 million at NovemberB 30, 2013 and $50.5 million at AugustB 31, 2013. |
Business_Segments_Reconciliati
Business Segments (Reconciliations of Earnings from Continuing Operations to Adjusted Operating Profit) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Segment Reporting [Abstract] | ' | ' |
Earnings from continuing operations | $31,961 | $48,931 |
Income taxes | 15,091 | 22,189 |
Interest expense | 19,578 | 17,024 |
Discounts on sales of accounts receivable | 559 | 1,209 |
Adjusted operating profit | $67,189 | $89,353 |