Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Oct. 27, 2014 | Feb. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Trading Symbol | 'cmc | ' | ' |
Entity Registrant Name | 'COMMERCIAL METALS CO | ' | ' |
Entity Central Index Key | '0000022444 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Aug-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' |
I.R.S. Employer Identification No. | '750725338 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 118,157,462 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Minimum Percentage of Share Ownership Deemed Affiliates | ' | ' | 10.00% |
Entity Public Float | ' | ' | $2,268,936,572 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Net sales | $7,039,959 | $6,889,575 | $7,656,375 |
Costs and expenses: | ' | ' | ' |
Cost of goods sold | 6,344,300 | 6,227,238 | 6,939,748 |
Selling, general and administrative expenses | 469,934 | 468,611 | 481,746 |
Impairment of assets | 3,173 | 17,270 | 607 |
Interest expense | 77,741 | 69,608 | 69,487 |
Gain on sale of cost method investment | 0 | -26,088 | 0 |
Total costs and expenses | 6,895,148 | 6,756,639 | 7,491,588 |
Earnings from continuing operations before income taxes | 144,811 | 132,936 | 164,787 |
Income taxes (benefit) | 42,724 | 57,979 | -45,762 |
Earnings from continuing operations | 102,087 | 74,957 | 210,549 |
Earnings (loss) from discontinued operations before income taxes | 22,009 | 3,672 | -11,906 |
Income taxes (benefit) | 8,544 | 1,310 | -8,847 |
Earnings (loss) from discontinued operations | 13,465 | 2,362 | -3,059 |
Net earnings | 115,552 | 77,319 | 207,490 |
Less net earnings attributable to noncontrolling interests | 1 | 4 | 6 |
Net earnings attributable to CMC | $115,551 | $77,315 | $207,484 |
Basic earnings (loss) per share attributable to CMC: | ' | ' | ' |
Earnings from continuing operations | $0.87 | $0.64 | $1.82 |
Earnings (loss) from discontinued operations | $0.11 | $0.02 | ($0.03) |
Net earnings | $0.98 | $0.66 | $1.79 |
Diluted earnings (loss) per share attributable to CMC: | ' | ' | ' |
Earnings from continuing operations | $0.86 | $0.64 | $1.80 |
Earnings (loss) from discontinued operations | $0.11 | $0.02 | ($0.02) |
Net earnings | $0.97 | $0.66 | $1.78 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Net earnings | $115,552 | $77,319 | $207,490 |
Foreign currency translation adjustment and other: | ' | ' | ' |
Foreign currency translation adjustment and other during the year | 7,586 | -10,108 | -71,631 |
Reclassification for translation gain realized upon sale of investments in foreign entities | 0 | 0 | -4,675 |
Foreign currency translation adjustment and other | 7,586 | -10,108 | -76,306 |
Net unrealized gain (loss) on derivatives: | ' | ' | ' |
Unrealized holding gain (loss), net of income taxes of $(526), $2 and $(604) | -1,848 | 221 | -1,545 |
Reclassification for loss (gain) included in net earnings, net of income taxes of $237, $(128) and $132 | 1,268 | -337 | 578 |
Net unrealized loss on derivatives, net of income taxes of $(289), $(126) and $(472) | -580 | -116 | -967 |
Defined benefit obligation: | ' | ' | ' |
Net loss, net of income taxes of $14, $(51) and $(425) | -489 | -168 | -410 |
Amortization of net loss, net of income taxes of $212, $45 and $40 | 1,392 | 207 | 188 |
Amortization of prior service credit, net of income taxes of $(47), $(38) and $(2) | -242 | -170 | -15 |
Adjustment from plan changes, net of income taxes of $0, $309 and $(26) | 0 | 1,315 | -99 |
Defined benefit obligation, net of income taxes of $179, $265 and $(413) | 661 | 1,184 | -336 |
Other comprehensive income (loss) | 7,667 | -9,040 | -77,609 |
Comprehensive income | $123,219 | $68,279 | $129,881 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Taxes, unrealized holding gain (loss) on derivatives | ($526) | $2 | ($604) |
Taxes, reclassification for loss (gain) on derivatives included in net earnings | 237 | -128 | 132 |
Taxes, net unrealized loss on derivatives | -289 | -126 | -472 |
Taxes, net loss of defined benefit obligation | 14 | -51 | -425 |
Taxes, amortization of net loss of defined benefit obligation | 212 | 45 | 40 |
Taxes, amortization of prior service credit of defined benefit obligation | -47 | -38 | -2 |
Taxes, adjustment from plan changes of defined benefit obligation | 0 | 309 | -26 |
Taxes, defined benefit obligation | $179 | $265 | ($413) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $434,925 | $378,770 |
Accounts receivable (less allowance for doubtful accounts of $5,908 and $10,042) | 1,028,425 | 989,694 |
Inventories, net | 935,411 | 757,417 |
Current deferred tax assets | 49,455 | 76,994 |
Other | 105,575 | 163,320 |
Total current assets | 2,553,791 | 2,366,195 |
Property, plant and equipment: | ' | ' |
Land | 79,295 | 80,764 |
Buildings and improvements | 494,842 | 486,494 |
Equipment | 1,728,425 | 1,666,250 |
Construction in process | 30,591 | 18,476 |
Property, plant and equipment, Gross | 2,333,153 | 2,251,984 |
Less accumulated depreciation and amortization | -1,408,055 | -1,311,747 |
Property, plant and equipment, Net | 925,098 | 940,237 |
Goodwill | 74,319 | 69,579 |
Other assets | 135,312 | 118,790 |
Total assets | 3,688,520 | 3,494,801 |
Current liabilities: | ' | ' |
Accounts payable-trade | 423,807 | 342,678 |
Accounts payable-documentary letters of credit | 125,053 | 112,281 |
Accrued expenses and other payables | 322,000 | 314,949 |
Notes payable | 12,288 | 5,973 |
Current maturities of long-term debt | 8,005 | 5,228 |
Total current liabilities | 891,153 | 781,109 |
Deferred income taxes | 55,600 | 46,558 |
Other long-term liabilities | 112,134 | 118,165 |
Long-term debt | 1,281,042 | 1,278,814 |
Total liabilities | 2,339,929 | 2,224,646 |
Commitments and contingencies (Note 18) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock | 0 | 0 |
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 117,829,262 and 117,010,990 shares | 1,290 | 1,290 |
Additional paid-in capital | 359,338 | 363,772 |
Accumulated other comprehensive loss | -19,509 | -27,176 |
Retained earnings | 1,225,855 | 1,166,732 |
Less treasury stock, 11,231,402 and 12,049,674 shares at cost | -218,494 | -234,619 |
Stockholders' equity attributable to CMC | 1,348,480 | 1,269,999 |
Stockholders' equity attributable to noncontrolling interests | 111 | 156 |
Total equity | 1,348,591 | 1,270,155 |
Total liabilities and stockholders' equity | $3,688,520 | $3,494,801 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $5,908 | $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 | 117,829,262 | 117,010,990 |
Treasury stock, shares | 11,231,402 | 12,049,674 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Cash flows from (used by) operating activities: | ' | ' | ' |
Net earnings | $115,552 | $77,319 | $207,490 |
Adjustments to reconcile net earnings to cash flows from (used by) operating activities: | ' | ' | ' |
Depreciation and amortization | 136,004 | 136,548 | 137,310 |
Provision for losses on receivables, net | -1,760 | 4,430 | -2,463 |
Share-based compensation | 18,051 | 18,693 | 13,125 |
Amortization of interest rate swaps termination gain | -7,597 | -12,470 | -5,815 |
Loss on debt extinguishment | 0 | 4,758 | 0 |
Deferred income taxes (benefit) | 32,348 | 54,655 | -59,999 |
Tax expense (benefit) from stock-based plans | 4,426 | 1,444 | -1,968 |
Net gain on sale of a subsidiary, cost method investment and other | -31,356 | -25,371 | -11,932 |
Write-down of inventory | 4,000 | 3,003 | 13,917 |
Asset impairments | 3,498 | 17,270 | 3,316 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' | ' |
Accounts receivable | -143,397 | 11,065 | 68,260 |
Accounts receivable sold, net | 120,957 | -80,580 | -77,116 |
Inventories | -177,331 | 26,459 | 53,449 |
Other assets | -20,516 | 2,894 | 5,001 |
Accounts payable, accrued expenses and other payables | 90,604 | -87,375 | -157,025 |
Other long-term liabilities | -6,543 | -5,010 | 10,443 |
Net cash flows from operating activities | 136,940 | 147,732 | 195,993 |
Cash flows from (used by) investing activities: | ' | ' | ' |
Capital expenditures | -101,749 | -89,035 | -113,853 |
Proceeds from the sale of property, plant and equipment and other | 17,572 | 13,904 | 55,360 |
Proceeds from the sale of subsidiaries | 52,609 | 0 | 0 |
Acquisitions, net of cash acquired | -15,693 | 0 | 0 |
Proceeds from the sale of cost method investment | 0 | 28,995 | 0 |
Decrease in deposit for letters of credit | 0 | 0 | 31,053 |
Net cash flows used by investing activities | -47,261 | -46,136 | -27,440 |
Cash flows from (used by) financing activities: | ' | ' | ' |
Increase (decrease) in documentary letters of credit, net | 11,753 | -6,221 | -74,493 |
Short-term borrowings, net change | 6,315 | -19,524 | 18,607 |
Repayments on long-term debt | -7,677 | -204,856 | -64,801 |
Proceeds from termination of interest rate swaps | 0 | 0 | 52,733 |
Proceeds from issuance of long-term debt | 0 | 330,000 | 0 |
Payments for debt issuance costs | -431 | -4,684 | 0 |
Debt extinguishment costs | 0 | -4,557 | 0 |
Decrease (increase) in restricted cash | 18,000 | -18,620 | 0 |
Stock issued under incentive and purchase plans, net of forfeitures | -1,488 | 951 | -81 |
Cash dividends | -56,428 | -56,028 | -55,617 |
Tax benefit (expense) from stock-based plans | -4,426 | -1,444 | 1,968 |
Contribution from (purchase of) noncontrolling interests | -15 | 13 | -55 |
Net cash flows from (used by) financing activities | -34,397 | 15,030 | -121,739 |
Effect of exchange rate changes on cash | 873 | -278 | -6,782 |
Increase in cash and cash equivalents | 56,155 | 116,348 | 40,032 |
Cash and cash equivalents at beginning of year | 378,770 | 262,422 | 222,390 |
Cash and cash equivalents at end of year | $434,925 | $378,770 | $262,422 |
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, 2011 | $1,160,648 | $1,290 | $371,616 | $59,473 | $993,578 | ($265,532) | $223 |
Beginning balance, treasury stock, shares at Aug. 31, 2011 | ' | ' | ' | ' | ' | -13,526,901 | ' |
Beginning balance, shares at Aug. 31, 2011 | ' | 129,060,664 | ' | ' | ' | ' | ' |
Net earnings | 207,490 | ' | ' | ' | 207,484 | ' | 6 |
Other comprehensive income (loss) | -77,609 | ' | ' | -77,609 | ' | ' | ' |
Cash dividends ($0.48 per share) | -55,617 | ' | ' | ' | -55,617 | ' | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures | -81 | ' | -17,604 | ' | ' | 17,523 | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | ' | ' | ' | ' | ' | 817,661 | ' |
Stock-based compensation | 9,763 | ' | 9,763 | ' | ' | ' | ' |
Tax benefits (expense) from stock-based plans | 1,968 | ' | 1,968 | ' | ' | ' | ' |
Contribution from (purchase of) noncontrolling interests | -55 | ' | 35 | ' | ' | ' | -90 |
Ending balance at Aug. 31, 2012 | 1,246,507 | 1,290 | 365,778 | -18,136 | 1,145,445 | -248,009 | 139 |
Ending balance, treasury stock, shares at Aug. 31, 2012 | ' | ' | ' | ' | ' | -12,709,240 | ' |
Ending balance, shares at Aug. 31, 2012 | ' | 129,060,664 | ' | ' | ' | ' | ' |
Net earnings | 77,319 | ' | ' | ' | 77,315 | ' | 4 |
Other comprehensive income (loss) | -9,040 | ' | ' | -9,040 | ' | ' | ' |
Cash dividends ($0.48 per share) | -56,028 | ' | ' | ' | -56,028 | ' | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures | 951 | ' | -12,439 | ' | ' | 13,390 | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | ' | ' | ' | ' | ' | 659,566 | ' |
Stock-based compensation | 11,877 | ' | 11,877 | ' | ' | ' | ' |
Tax benefits (expense) from stock-based plans | -1,444 | ' | -1,444 | ' | ' | ' | ' |
Contribution from (purchase of) noncontrolling interests | 13 | ' | ' | ' | ' | ' | 13 |
Ending balance at Aug. 31, 2013 | 1,270,155 | 1,290 | 363,772 | -27,176 | 1,166,732 | -234,619 | 156 |
Ending balance, treasury stock, shares at Aug. 31, 2013 | -12,049,674 | ' | ' | ' | ' | -12,049,674 | ' |
Ending balance, shares at Aug. 31, 2013 | 129,060,664 | 129,060,664 | ' | ' | ' | ' | ' |
Net earnings | 115,552 | ' | ' | ' | 115,551 | ' | 1 |
Other comprehensive income (loss) | 7,667 | ' | ' | 7,667 | ' | ' | ' |
Cash dividends ($0.48 per share) | -56,428 | ' | ' | ' | -56,428 | ' | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures | -1,488 | ' | -17,613 | ' | ' | 16,125 | ' |
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | ' | ' | ' | ' | ' | 818,272 | ' |
Stock-based compensation | 17,574 | ' | 17,574 | ' | ' | ' | ' |
Tax benefits (expense) from stock-based plans | -4,426 | ' | -4,426 | ' | ' | ' | ' |
Contribution from (purchase of) noncontrolling interests | -15 | ' | 31 | ' | ' | ' | -46 |
Ending balance at Aug. 31, 2014 | $1,348,591 | $1,290 | $359,338 | ($19,509) | $1,225,855 | ($218,494) | $111 |
Ending balance, treasury stock, shares at Aug. 31, 2014 | -11,231,402 | ' | ' | ' | ' | -11,231,402 | ' |
Ending balance, shares at Aug. 31, 2014 | 129,060,664 | 129,060,664 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends per share | $0.48 | $0.48 | $0.48 |
NATURE_OF_OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Aug. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF OPERATIONS | ' |
NOTE 1. NATURE OF OPERATIONS | |
Nature of Operations | |
Through its global operations and marketing offices, Commercial Metals Company ("CMC," and together with its consolidated subsidiaries, the "Company") recycles ferrous and nonferrous scrap metal, operates steel mills, commonly referred to as "minimills," and steel fabrication facilities and trades and distributes steel and nonferrous metal products and other industrial products worldwide. | |
The Company has five business segments across two geographic divisions. The CMC Americas Division includes three segments: Americas Recycling, Americas Mills and Americas Fabrication. The CMC International Division includes two segments: International Mill and International Marketing and Distribution. | |
Americas Recycling | |
The Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. This segment sells scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers and other consumers. | |
Americas Mills | |
The Americas Mills segment manufactures finished long steel products including reinforcing bar ("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. This segment's products are sold to the construction, service center, transportation, steel warehousing, fabrication, energy, petrochemical and original equipment manufacturing industries. | |
Americas Fabrication | |
The Americas Fabrication segment consists of rebar and structural fabrication operations, fence post manufacturing facilities, construction-related product facilities and facilities that heat-treat steel to strengthen and provide flexibility. Fabricated steel products are used primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums and dams. | |
International Mill | |
The International Mill segment is comprised of all mill, recycling and fabrication operations located in Poland. This segment manufactures rebar, merchant bar and wire rod in Central Europe. In addition, this segment's fabrication operations sell fabricated rebar, fabricated mesh, assembled rebar cages and other rebar byproducts. The International Mill's products are sold primarily to fabricators, manufacturers, distributors and construction companies. | |
International Marketing and Distribution | |
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 two of the Company's marketing and distribution divisions headquartered in the United States and also operates a recycling facility in Singapore. The International Marketing and Distribution segment buys and sells primary and secondary metals, fabricated metals, semi-finished, long and flat steel products and other industrial products. This segment sells its products to customers, primarily manufacturers, in the steel, nonferrous metals, metal fabrication, chemical, refractory, construction and transportation industries. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||
Aug. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Consolidation | |||||
The consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries and a variable interest entity for which the Company is the primary beneficiary. Intercompany account balances and transactions have been eliminated. | |||||
Upon inception of an arrangement with a potential variable interest entity, the Company performs an assessment of the contractual agreements that define the ownership structure, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties when determining whether it is the primary beneficiary of the entity. The Company concludes that it is the primary beneficiary and consolidates the variable interest entity if it has both (a) the power to direct the activities that most significantly impact the economic performance of the variable interest entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the variable interest entity that potentially could be significant to the variable interest entity. The Company's assessment of whether it is the primary beneficiary of the variable interest entity is continuously performed. | |||||
The equity method of accounting is used for investments in affiliates in which the Company has the ability to exert significant influence, but does not have effective control. As of August 31, 2014, the Company has no investments accounted for under equity method of accounting. Investments in affiliates which are 20% or less owned are accounted for using the cost method of accounting. | |||||
Use of Estimates | |||||
The preparation of the Company's consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of net sales and expenses during the reporting period. Significant items subject to such estimates and assumptions include the valuation of assets received in acquisitions; the carrying value of long-lived assets, including goodwill; valuation allowances for receivables, inventories and deferred income taxes; share-based compensation; potential litigation claims and settlements; and environmental liabilities. Actual results could significantly differ from these estimates and assumptions. | |||||
Cash and Cash Equivalents | |||||
Cash and cash equivalents include cash on deposit and short-term, highly-liquid investments with maturities of three months or less at the date of purchase. The Company had restricted cash of $4.1 million held for operational purposes as of August 31, 2014 and $18.0 million serving as collateral for letters of credit obligations for its Australian subsidiary as of August 31, 2013. Restricted cash balances are included in other current assets on the Company's consolidated balance sheets. | |||||
Revenue Recognition | |||||
The Company recognizes sales when title passes to the customer either when goods are shipped or when they are delivered based upon the terms of the sale, there is persuasive evidence of an agreement, the price is fixed or determinable and collectability is reasonably assured. When the Company estimates that a firm purchase commitment will result in a loss, the Company accrues the entire loss as soon as it is probable and estimable. The Company accounts for certain fabrication projects based on the percentage of completion accounting method, based primarily on contract cost incurred to date compared to total estimated contract cost. Changes to total estimated contract cost, or loss, if any, are recognized in the period in which they are determined. Sales recognized in excess of amounts billed of $24.2 million and $24.3 million are classified as current assets and are reflected in accounts receivable on the Company's consolidated balances sheets as of August 31, 2014 and 2013, respectively. Shipping and other transportation costs billed to customers are included in net sales and the related costs incurred are reflected in cost of of goods sold in the Company's consolidated statements of operations. | |||||
Allowance for Doubtful Accounts | |||||
The Company maintains an allowance for doubtful accounts to reflect its estimate of the uncollectability of accounts receivable. These reserves are based on historical trends, current market conditions and customers' financial condition. | |||||
The Company maintains both corporate and divisional credit departments. Credit limits are set for each customer. Some of the Company's divisions use credit insurance or letters of credit to ensure prompt payment in accordance with the terms of sale. Generally, collateral is not required. Approximately 49% of total receivables at August 31, 2014 and 2013 were secured by credit insurance or letters of credit. | |||||
Inventories, net | |||||
Inventories are stated at the lower of cost or market. Inventory cost for most U.S. inventories is determined by the last-in, first-out ("LIFO") method. | |||||
During the fourth quarter of fiscal 2014, the Company elected to change the inventory costing method used by its International Mill segment from the first-in, first-out ("FIFO") method to the weighted average cost method. The Company believes the weighted average cost method is preferable because it more closely aligns with the physical flow of inventory. The weighted average cost method is the method used by the Company to monitor the financial results of the International Mill segment for operational and financial planning. Additionally, the information system within the segment calculates inventory at weighted average cost, thus adding an administrative burden to report inventories under the FIFO method. Because the change in accounting principle was immaterial in all prior periods, it was not applied retrospectively. The change did not have a material impact on the Company's consolidated financial statements as of and for the fiscal year ended August 31, 2014. The cost for the remaining international and U.S. inventories is determined by the FIFO method. | |||||
Elements of cost in finished goods inventory in addition to the cost of material include depreciation, amortization, utilities, consumable production supplies, maintenance, production, wages and transportation costs. Additionally, the costs of departments that support production, including materials management and quality control, are allocated to inventory. | |||||
Property, Plant and Equipment | |||||
Property, plant and equipment are recorded at cost. Maintenance is expensed as incurred. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. Depreciation and amortization is recorded on a straight-line basis over the following estimated useful lives: | |||||
Buildings | 7 | to | 40 | years | |
Land improvements | 3 | to | 25 | years | |
Leasehold improvements | 3 | to | 15 | years | |
Equipment | 3 | to | 25 | years | |
The Company evaluates impairment of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment charges are recorded on property, plant and equipment when the carrying value of the operations related to the asset, or group of assets, exceeds the undiscounted cash flows estimated to be generated by those operations. | |||||
Goodwill and Other Intangible Assets | |||||
Goodwill is tested for impairment at the reporting unit level annually in the fourth quarter and whenever events or circumstances indicate that the carrying value may not be recoverable. The Company's reporting units represent an operating segment or one level below an operating segment. | |||||
The Company utilizes the two-step quantitative approach to evaluate goodwill for impairment. The Company performs the first step of the test by comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the Company performs the second step of the test to measure the amount of impairment, if any. In the second step of the test, the Company allocates the fair value of the reporting unit to the assets and liabilities of the reporting unit to determine the implied fair value of the goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied value of goodwill, an impairment loss is recognized. | |||||
The fair value of each reporting unit is estimated using an income approach based on the present value of expected future cash flows and a market approach based on valuation metrics of comparable peer companies and a reconciliation of the Company's estimate of the aggregate fair value of the reporting units to the Company's market capitalization, including a control premium. The determination of fair value involves a number of significant assumptions and estimates including discount rates, volumes, prices, capital expenditures and the impact of current market conditions. These estimates could be materially impacted by adverse changes in these assumptions. | |||||
The annual goodwill impairment analysis in fiscal year 2014 did not result in any impairment charges at any of our reporting units. In fiscal 2013, the Company recorded goodwill impairment charges of $6.4 million, including foreign currency translation gains of $0.6 million, related to its Australian subsidiaries. See Note 7, Goodwill and Other Intangible Assets, for additional details of this impairment. As of August 31, 2014 and 2013, goodwill at one of the Company's reporting units within the Americas Fabrication reporting segment comprised $51.3 million of the Company's total goodwill. Goodwill at the Company's other reporting units was not material at August 31, 2014 and 2013. | |||||
Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment charges are recorded on finite-lived intangible assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. As of August 31, 2014, none of the Company's intangible assets with finite lives were impaired. | |||||
Environmental Costs | |||||
The Company accrues liabilities for environmental investigation and remediation costs when they are both probable and the amount can be reasonably estimated. Environmental costs are based upon estimates regarding the sites for which the Company will be responsible, the scope and cost of work to be performed at each site, the portion of costs that will be shared with other parties and the timing of remediation. Where timing and amounts cannot be reasonably determined, a range is estimated and the lower end of the range is recorded. | |||||
Stock-Based Compensation | |||||
The Company recognizes stock-based equity awards and liability awards at fair value in the financial statements. The fair value of each stock-based equity award is estimated at the date of grant using the Black-Scholes or Monte Carlo pricing model. Total compensation cost of the stock-based equity award is amortized over the requisite service period using the accelerated method of amortization for grants with graded vesting or using the straight-line method for grants with cliff vesting. Stock-based liability awards are measured at fair value at the end of each reporting period and will fluctuate based on the price of CMC common stock and performance relative to the targets. | |||||
Accounts Payable — Documentary Letters of Credit | |||||
In order to facilitate certain trade transactions, the Company utilizes documentary letters of credit to provide assurance of payment to its suppliers. These letters of credit are typically for payment at a future date conditional upon the bank determining the documentation presented to be in strict compliance with all terms and conditions of the letter of credit. Banks issue these letters of credit under uncommitted lines of credit, which are in addition to and separate from the Company's contractually committed revolving credit agreement. In some cases, if the Company's suppliers choose to discount the future dated obligation, the Company may pay the fee associated with the discount. | |||||
Income Taxes | |||||
CMC and its U.S. subsidiaries file a consolidated federal income tax return. Deferred income taxes are provided for temporary differences between financial statement and income tax bases of assets and liabilities. The principal differences are described in Note 14, Income Tax. Benefits from income tax credits are reflected currently in earnings. The Company intends to indefinitely reinvest all undistributed earnings of non-U.S. subsidiaries. The Company records income tax positions based on a more likely than not threshold that the tax positions will be sustained on examination by the taxing authorities having full knowledge of all relevant information. | |||||
Foreign Currencies | |||||
The functional currencies of the Company's Australian, German, Polish, United Kingdom and certain Chinese, Singaporean and Thai operations are their local currencies. The Company's remaining international subsidiaries' functional currency is the U.S. dollar. Translation adjustments are reported as a component of accumulated other comprehensive income (loss). Transaction gains (losses) from transactions denominated in currencies other than the functional currencies were $9.0 million, $(5.8) million and $2.2 million for the years ended August 31, 2014, 2013 and 2012, respectively, and are included in selling, general and administrative expenses in the Company's consolidated statements of operations. | |||||
Derivative Financial Instruments | |||||
The Company records derivative instruments on the balance sheet as assets or liabilities, measured at fair value. Gains or losses from the changes in the values of the derivative instruments and hedged items are recorded in the statements of operations, or are deferred if they are designated for hedge accounting and are highly effective in achieving offsetting changes in fair values or cash flows of the hedged items during the term of the hedge. | |||||
Fair Value | |||||
The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Level 1 represents unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 represents quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly. Level 3 represents valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||
Recent Accounting Pronouncements | |||||
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 U.S. GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosures 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 August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern and to provide disclosures in certain circumstances. The new guidance was issued to reduce diversity in the timing and content of footnote disclosures. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016. The Company does not expect this guidance to have a material impact on its consolidated financial statements. | |||||
In August 2014, the FASB issued guidance providing a measurement alternative to the existing fair value measurement guidance for reporting entities that consolidate a collateralized financing entity in which 1) the financial assets and financial liabilities are measured at fair value except for those incidental financial assets and financial liabilities with their carrying values that approximate fair values and 2) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. When the measurement alternative is elected, the financial assets and liabilities of a collateralized financing entity will be measured using the more observable of the fair value of the financial assets and the fair value of the financial liabilities. This guidance is effective for public business entities for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. The Company does not expect this guidance to have a material impact on its consolidated financial statements. | |||||
In June 2014, the FASB issued guidance requiring entities to account for a performance target as a performance condition if the target affects vesting and could be achieved after the requisite service period. The new guidance did not introduce additional disclosure requirements and was issued to resolve diversity in practice. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015. The Company currently accounts for such performance targets in a manner consistent with the new guidance and does not expect this guidance to have a material impact on its consolidated financial statements. | |||||
In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016. Entities have the option to adopt this guidance either retrospectively or through a modified retrospective transition method. This new standard will supersede existing revenue guidance and affect the Company's revenue recognition process and the presentations or disclosures of the Company's consolidated financial statements and footnotes. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. | |||||
In April 2014, the FASB issued guidance changing the requirements for reporting discontinued operations if the disposal of a component of an entity, or a group of components of an entity, represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. The guidance requires expanded disclosures for discontinued operations and also requires entities to disclose the pre-tax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. The new guidance is effective prospectively for fiscal years, and interim periods within those years, beginning on or after December 15, 2014. The guidance will affect the Company's current practice of assessing discontinued operations and the presentation and disclosure in 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 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) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||||||
NOTE 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
Accumulated other comprehensive income (loss), net of income taxes, was comprised of the following: | |||||||||||||||||
(in thousands) | Foreign Currency Translation | Unrealized Gain (Loss) on Derivatives | Defined Benefit Obligation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Balance at September 1, 2011 | $ | 58,937 | $ | 4,677 | $ | (4,141 | ) | $ | 59,473 | ||||||||
Other comprehensive loss before reclassifications | (71,631 | ) | (1,545 | ) | (410 | ) | (73,586 | ) | |||||||||
Amounts reclassified from AOCI | (4,675 | ) | 578 | 74 | (4,023 | ) | |||||||||||
Net other comprehensive loss | (76,306 | ) | (967 | ) | (336 | ) | (77,609 | ) | |||||||||
Balance at August 31, 2012 | (17,369 | ) | 3,710 | (4,477 | ) | (18,136 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | (10,108 | ) | 221 | 1,147 | (8,740 | ) | |||||||||||
Amounts reclassified from AOCI | — | (337 | ) | 37 | (300 | ) | |||||||||||
Net other comprehensive income (loss) | (10,108 | ) | (116 | ) | 1,184 | (9,040 | ) | ||||||||||
Balance at August 31, 2013 | (27,477 | ) | 3,594 | (3,293 | ) | (27,176 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 7,586 | (1,848 | ) | (489 | ) | 5,249 | |||||||||||
Amounts reclassified from AOCI | — | 1,268 | 1,150 | 2,418 | |||||||||||||
Net other comprehensive income (loss) | 7,586 | (580 | ) | 661 | 7,667 | ||||||||||||
Balance at August 31, 2014 | $ | (19,891 | ) | $ | 3,014 | $ | (2,632 | ) | $ | (19,509 | ) | ||||||
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: | |||||||||||||||||
Year Ended August 31, | |||||||||||||||||
Components of AOCI (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||||
Foreign currency translation adjustments and other: | |||||||||||||||||
Reclassification for translation gain realized upon sale of investments in foreign entities | SG&A expenses | — | — | $ | 4,675 | ||||||||||||
Unrealized gain (loss) on derivatives: | |||||||||||||||||
Commodity | Cost of goods sold | $ | (160 | ) | $ | (260 | ) | $ | 43 | ||||||||
Foreign exchange | Net sales | (232 | ) | 60 | (1,072 | ) | |||||||||||
Foreign exchange | Cost of goods sold | (1,698 | ) | — | — | ||||||||||||
Foreign exchange | SG&A expenses | 53 | 48 | (516 | ) | ||||||||||||
Interest rate | Interest expense | 532 | 617 | 835 | |||||||||||||
(1,505 | ) | 465 | (710 | ) | |||||||||||||
Income tax effect | Income taxes (expense) benefit | 237 | (128 | ) | 132 | ||||||||||||
Net of income taxes | $ | (1,268 | ) | $ | 337 | $ | (578 | ) | |||||||||
Defined benefit obligation: | |||||||||||||||||
Amortization of net gain (loss) | SG&A expenses | $ | (1,604 | ) | $ | (252 | ) | $ | (228 | ) | |||||||
Amortization of prior service credit (cost) | SG&A expenses | 289 | 208 | 17 | |||||||||||||
Adjustment from plan changes | SG&A expenses | — | — | 125 | |||||||||||||
(1,315 | ) | (44 | ) | (86 | ) | ||||||||||||
Income tax effect | Income taxes (expense) benefit | 165 | 7 | 12 | |||||||||||||
Net of income taxes | $ | (1,150 | ) | $ | (37 | ) | $ | (74 | ) | ||||||||
Amounts in parentheses reduce earnings. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Aug. 31, 2014 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
NOTE 4. ACQUISITIONS | |
On June 13, 2014, the Company completed the purchase of substantially all of the assets of Newell Recycling of San Antonio, LP ("Newell Recycling"), a recycling facility in San Antonio, Texas. This acquisition continues the vertical integration model of the Company by providing raw materials for its CMC Steel Texas location, establishes a larger recycling presence in San Antonio, Texas, and provides an opportunity for continued growth of the Company's recycling operations in the central Texas area. The operating results of this facility are included in the Americas Mills reporting segment. | |
The acquisition of Newell Recycling was not material, individually or in the aggregate, to the Company's financial position or results of operations. Pro forma operating results for the acquisition are not presented, since the results would not be significantly different than reported results. | |
For the years ended August 31, 2013 and 2012, the Company did not have any business acquisitions. |
SALES_OF_ACCOUNTS_RECEIVABLE
SALES OF ACCOUNTS RECEIVABLE | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Transfers and Servicing [Abstract] | ' | ||||||||||||||||
SALES OF ACCOUNTS RECEIVABLE | ' | ||||||||||||||||
NOTE 5. SALES OF ACCOUNTS RECEIVABLE | |||||||||||||||||
During the fourth quarter of fiscal 2014, the Company entered into a third amended $200 million U.S. sale of accounts receivable program which expires on August 15, 2017. 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 trade accounts receivable generated by the Company. CMCRV sells the trade accounts receivable in their entirety to three financial institutions. Under the amended U.S. sale of accounts receivable program, with the consent of both CMCRV and the program's administrative agent, the amount advanced by the financial institutions can be increased to a maximum of $300 million for all trade accounts receivable sold. The remaining portion of the purchase price of the trade accounts receivable takes the form of subordinated notes from the respective financial institutions, these notes will be satisfied from the ultimate collection of the trade accounts receivable after payment of certain fees and other costs. The Company accounts for sales of the trade accounts receivable 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 U.S. sale of accounts receivable 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 11, Credit Arrangements. | |||||||||||||||||
At August 31, 2014 and 2013, under its U.S. sale of accounts receivable program, the Company had sold $389.6 million and $358.8 million of trade accounts receivable, respectively, to the financial institutions. At August 31, 2014, the Company had $55.0 million in advance payments outstanding on the sale of its trade accounts receivable. The Company had no advance payments outstanding on the sale of its trade accounts receivable at August 31, 2013. | |||||||||||||||||
In addition to the U.S. sale of accounts receivable program described above, the Company's international subsidiaries in Europe and Australia sell trade accounts receivable to financial institutions without recourse. These arrangements constitute true sales, and once the trade accounts receivable 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 obtain an advance of up to 90% of eligible trade accounts receivable sold under the terms of the arrangement. During the first quarter of fiscal 2014, the Company phased out its existing Australian program and entered into a new, one year renewable, trade accounts receivable sales program with a different financial institution. Under the new Australian program, trade accounts receivable balances are sold to a special purpose vehicle, which in turn sells 100% of the eligible trade accounts receivable of Commercial Metals Pty. Ltd., CMC Steel Distribution Pty. Ltd. and G.A.M. Steel Pty. Ltd. to the financial institution. Under the new Australian program, the financial institution will fund up to A$75.0 million for all trade accounts receivable sold, and the remaining portion of the purchase price of the trade accounts receivable is in the form of a subordinated note from the financial institution. This note will be satisfied from the ultimate collection of the trade accounts receivable after payment of certain fees and other costs. The Company accounts for sales of the trade accounts receivable 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. | |||||||||||||||||
In October 2014, the Company entered into a first amendment to its Australian program which extended the maturity date to October 2016. | |||||||||||||||||
At August 31, 2014 and 2013, under its European and Australian programs, the Company had sold $147.3 million and $121.2 million of trade accounts receivable, respectively, to third-party financial institutions and received advance payments of $90.5 million and $24.5 million, respectively. | |||||||||||||||||
For the years ended August 31, 2014, 2013 and 2012, cash proceeds from the U.S. and international sale of accounts receivable programs were $688.2 million, $1.0 billion and $1.9 billion, respectively, and cash payments to the owners of accounts receivable were $567.2 million, $1.1 billion and $1.9 billion, respectively. For a nominal servicing fee, the Company is responsible for servicing the accounts receivable for the U.S. and Australian programs. Discounts on U.S. and international sales of trade accounts receivable were $3.9 million, $3.9 million and $6.4 million for the years ended August 31, 2014, 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 U.S. and international sale of trade 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 U.S. and international sale of accounts receivable programs: | |||||||||||||||||
(in thousands) | Total | U.S. | Australia | Europe | |||||||||||||
Balance at September 1, 2011 | $ | 604,003 | $ | 510,136 | $ | 80,821 | $ | 13,046 | |||||||||
Transfers of accounts receivable | 5,558,246 | 4,388,366 | 509,691 | 660,189 | |||||||||||||
Collections | (5,646,768 | ) | (4,501,583 | ) | (520,439 | ) | (624,746 | ) | |||||||||
Balance at August 31, 2012 | $ | 515,481 | $ | 396,919 | $ | 70,073 | $ | 48,489 | |||||||||
Transfers of accounts receivable | 4,423,952 | 3,570,922 | 408,530 | 444,500 | |||||||||||||
Collections | (4,486,181 | ) | (3,609,019 | ) | (413,607 | ) | (463,555 | ) | |||||||||
Balance at August 31, 2013 | $ | 453,252 | $ | 358,822 | $ | 64,996 | $ | 29,434 | |||||||||
Transfers of accounts receivable | 4,243,471 | 3,347,103 | 487,583 | 408,785 | |||||||||||||
Collections | (4,239,242 | ) | (3,376,128 | ) | (446,196 | ) | (416,918 | ) | |||||||||
Program termination | (72,312 | ) | — | (72,312 | ) | — | |||||||||||
Balance at August 31, 2014 | $ | 385,169 | $ | 329,797 | $ | 34,071 | $ | 21,301 | |||||||||
INVENTORIES_NET
INVENTORIES, NET | 12 Months Ended |
Aug. 31, 2014 | |
Inventory Disclosure [Abstract] | ' |
INVENTORIES, NET | ' |
NOTE 6. INVENTORIES, NET | |
Inventories are stated at the lower of cost or market. Inventory cost for most U.S. inventories is determined by the LIFO method. At August 31, 2014 and 2013, 44% and 43%, respectively, of the Company's total net inventories were valued at LIFO. LIFO inventory reserves were $198.8 million and $185.5 million at August 31, 2014 and 2013, respectively. | |
During the fourth quarter of fiscal 2014, the Company elected to change the inventory costing method used by its International Mill segment from the FIFO method to the weighted average cost method. The Company believes the weighted average cost method is preferable because it more closely aligns with the physical flow of inventory. The weighted average cost method is the method used by the Company to monitor the financial results of the International Mill segment for operational and financial planning. Additionally, the information system deployed within the segment calculates inventory at weighted average cost, thus adding an administrative burden to report inventories under the FIFO method. Because the change in accounting principle was immaterial in all prior periods, it was not applied retrospectively. The change did not have a material impact on the Company's consolidated financial statements as of and for the fiscal year ended August 31, 2014. The cost for the remaining international and U.S. inventories is determined by the FIFO method. | |
The majority of the Company's inventories are in the form of finished goods with minimal work in process. At August 31, 2014 and 2013, $84.3 million and $66.7 million, before LIFO reserves, respectively, of the Company's inventories were in the form of raw materials. | |
During fiscal years 2014, 2013 and 2012, inventory in certain LIFO pools was reduced. This reduction resulted in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the cost of current purchases. The effects on net earnings for fiscal years 2014 and 2012 were not material. The effect for fiscal year 2013 increased net earnings by $3.5 million. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||||||||||||||||
NOTE 7. 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 at September 1, 2012 | $ | 7,267 | $ | 295 | $ | 57,144 | $ | 2,685 | $ | 9,506 | $ | 76,897 | |||||||||||||
Impairment | — | — | — | — | (6,331 | ) | (6,331 | ) | |||||||||||||||||
Translation | — | — | — | 70 | (1,057 | ) | (987 | ) | |||||||||||||||||
Balance at August 31, 2013 | $ | 7,267 | $ | 295 | $ | 57,144 | $ | 2,755 | $ | 2,118 | $ | 69,579 | |||||||||||||
Acquisition | — | 4,675 | — | — | — | 4,675 | |||||||||||||||||||
Translation | — | — | — | 21 | 44 | 65 | |||||||||||||||||||
Balance at August 31, 2014 | $ | 7,267 | $ | 4,970 | $ | 57,144 | $ | 2,776 | $ | 2,162 | $ | 74,319 | |||||||||||||
The annual goodwill impairment analysis did not result in any impairment charges in fiscal years 2014 and 2012. As a result of the Company's annual goodwill impairment analysis in the fourth quarter of fiscal 2013, the Company determined that the carrying amount of its Australian reporting unit exceeded its estimated fair value. The resulting impairment charge of $6.4 million, including a foreign currency translation gain of $0.6 million, was recorded within the International Marketing and Distribution reporting segment in the fiscal year ended August 31, 2013. The weakened Australian economy and in particular the demand for construction steel, coupled with continued operating performance below planned levels during 2013 and a weak forecast of future operating results were the contributing factors that lead to the impairment charges recorded in 2013. | |||||||||||||||||||||||||
Accumulated goodwill impairment charges were $9.8 million and $9.5 million as of August 31, 2014 and 2013. | |||||||||||||||||||||||||
As of August 31, 2014 and 2013, one of the Company's reporting units within the Americas Fabrication reporting segment comprised $51.3 million of the Company's total goodwill. | |||||||||||||||||||||||||
The following intangible assets subject to amortization are included in other noncurrent assets on the Company's consolidated balance sheets: | |||||||||||||||||||||||||
August 31, 2014 | August 31, 2013 | ||||||||||||||||||||||||
(in thousands) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Carrying Amount | Carrying Amount | ||||||||||||||||||||||||
Customer base | $ | 38,078 | $ | 25,989 | $ | 12,089 | $ | 33,625 | $ | 21,408 | $ | 12,217 | |||||||||||||
Favorable land leases | 11,661 | 2,075 | 9,586 | 6,257 | 612 | 5,645 | |||||||||||||||||||
Brand name | 3,216 | 1,452 | 1,764 | 2,942 | 946 | 1,996 | |||||||||||||||||||
Non-competition agreements | 779 | 40 | 739 | — | — | — | |||||||||||||||||||
Other | 101 | 45 | 56 | 101 | 38 | 63 | |||||||||||||||||||
Total | $ | 53,835 | $ | 29,601 | $ | 24,234 | $ | 42,925 | $ | 23,004 | $ | 19,921 | |||||||||||||
Excluding goodwill, there are no other significant intangible assets with indefinite lives. Amortization expense for intangible assets for the years ended August 31, 2014, 2013, and 2012 was $5.1 million, $4.9 million, and $5.9 million, respectively. At August 31, 2014, the weighted average remaining useful life of these intangible assets, excluding the favorable land leases was four years. The weighted average life of the favorable land leases was 51 years. Estimated amounts of amortization expense for the next five years are as follows: | |||||||||||||||||||||||||
Year Ended August 31, | (in thousands) | ||||||||||||||||||||||||
2015 | $ | 6,007 | |||||||||||||||||||||||
2016 | 4,387 | ||||||||||||||||||||||||
2017 | 820 | ||||||||||||||||||||||||
2018 | 1,470 | ||||||||||||||||||||||||
2019 | 1,533 | ||||||||||||||||||||||||
LONGLIVED_ASSET_IMPAIRMENT_AND
LONG-LIVED ASSET IMPAIRMENT AND FACILITY CLOSURE COSTS | 12 Months Ended |
Aug. 31, 2014 | |
Restructuring and Related Activities [Abstract] | ' |
LONG-LIVED ASSET IMPAIRMENT AND FACILITY CLOSURE COSTS | ' |
NOTE 8. LONG-LIVED ASSET IMPAIRMENT AND FACILITY CLOSURE COSTS | |
In the fourth quarter of fiscal 2014, the Company made the decision to exit its steel trading business headquartered in Zug, Switzerland. In connection with this decision, severance and other exit costs incurred by the Company were not material and were included in selling, general and administrative expenses in the Company's consolidated statements of operations. The remaining exit costs expected to be incurred are not material. The operation, which is included in the Company's International Marketing and Distribution reporting segment, will service existing customer commitments and the Company expects to wind down operations and liquidate any remaining inventories over the next several months. | |
Long-lived asset impairment charges were not material in fiscal 2014. | |
During the fourth quarter of fiscal 2013, the Company prepared an impairment analysis on its Australian operating units and determined the carrying values of certain fixed assets exceeded their fair values as determined utilizing market and cost approaches. Determining the fair value is judgmental in nature and requires the use of significant estimates and assumptions, considered to be level 3 fair value inputs. The resulting non-recurring impairment charges of $6.3 million, primarily related to the write-down of long-lived assets, were recorded within the International Marketing and Distribution reporting segment at August 31, 2013. As a result of the $6.3 million non-recurring impairment charges, the fair value of International Marketing and Distribution's fixed assets was $20.4 million at August 31, 2013. Long-lived asset impairment and facility closure costs associated with the Company's other operating units were approximately $4.6 million for the year ended August 31, 2013. | |
Long-lived asset impairment charges and facility closure costs were not material in fiscal 2012. |
SEVERANCE
SEVERANCE | 12 Months Ended |
Aug. 31, 2014 | |
Restructuring and Related Activities [Abstract] | ' |
SEVERANCE | ' |
NOTE 9. SEVERANCE | |
The Company recorded consolidated severance cost of $3.7 million, $6.1 million and $25.6 million for the years ended August 31, 2014, 2013 and 2012, respectively. The severance cost recorded during fiscal years 2014 and 2013 was not individually material to any of the Company's segments. The severance cost recorded during fiscal 2012 primarily related to the Company's discontinued operations. As of August 31, 2014 and 2013, the remaining liability to be paid in the future related to termination benefits was $0.9 million and $2.8 million, respectively. |
BUSINESSES_HELD_FOR_SALE_DISCO
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS | ' | ||||||||||||
NOTE 10. 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 Company did not have businesses classified as held for sale at August 31, 2014. The components of assets and liabilities of businesses held for sale were as follows. | |||||||||||||
(in thousands) | 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 | 10,459 | ||||||||||||
Assets of businesses held for sale | $ | 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 capital 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. Howell was previously an operating segment included in the Americas Mills reporting segment. | |||||||||||||
During fiscal 2012, the Company announced its decision to exit CMC Sisak, d.o.o. ("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 and has been presented as such for all periods presented. The results for fiscal 2012 consist of severance cost of $18.0 million associated with closing the facility and a pre-tax gain of $13.8 million for the sale of all of the shares of the CMCS operation, excluding $3.9 million in assets which were sold in the first quarter of 2013 with no impact to the consolidated statements of operations. | |||||||||||||
Financial information for discontinued operations was as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Revenue | $ | 17,298 | $ | 157,780 | $ | 202,632 | |||||||
Earnings (loss) before income taxes | 22,009 | 3,672 | (11,906 | ) | |||||||||
Dispositions | |||||||||||||
During the first quarter of fiscal 2014, the Company sold all of the outstanding capital stock of Howell for $58.5 million, of which $3.2 million was held in escrow as of August 31, 2014. During the second quarter of fiscal 2014, the Company made a $3.0 million working capital adjustment, which is included in the Company's estimated pre-tax gain of $23.8 million. The result of this sale was included in discontinued operations in the consolidated statement of operations for the year ended August 31, 2014. The Company disposed of the remaining assets held for sale of $1.1 million during the fourth quarter of fiscal 2014 with an immaterial impact to the consolidated statement of operations. | |||||||||||||
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 result of this sale was included in continuing operations in the consolidated statement of operations for the year ended August 31, 2013. The Trinecke investment was included in the International Marketing and Distribution reporting segment. | |||||||||||||
During fiscal 2012, the Company sold its rebar fabrication shop in Rosslau, Germany for $11.3 million, resulting in a loss of $3.8 million. The result of this sale was included in continuing operations in the consolidated statement of operations for the year ended August 31, 2012. Additionally during fiscal 2012, the Company completed the sale of two properties that were previously joist and deck locations. The results of these sales were included in discontinued operations in the consolidated statement of operations for the year ended August 31, 2012. |
CREDIT_ARRANGEMENTS
CREDIT ARRANGEMENTS | 12 Months Ended | ||||||||||
Aug. 31, 2014 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
CREDIT ARRANGEMENTS | ' | ||||||||||
NOTE 11. CREDIT ARRANGEMENTS | |||||||||||
On June 26, 2014, the Company entered into a fourth amended and restated credit agreement (the "Credit Agreement") with a revolving credit facility of $350.0 million and a maturity date of June 26, 2019, replacing the third amended and restated $300.0 million revolving credit facility with a maturity date of December 27, 2016. The maximum availability under the Credit Agreement can be increased to $500.0 million. The Company's obligation under its Credit Agreement is secured by its inventory. Consistent with the Company's previous revolving credit facility, the Credit Agreement's capacity includes $50.0 million for the issuance of stand-by letters of credit and was reduced by outstanding stand-by letters of credit which totaled $28.1 million at August 31, 2014. | |||||||||||
Under the Credit Agreement, the Company is required to comply with certain financial and non-financial covenants, including covenants to maintain: (i) an interest coverage ratio (consolidated EBITDA to consolidated interest expense, as each is defined in the Credit Agreement) of not less than 2.50 to 1.00 and (ii) a debt to capitalization ratio (consolidated funded debt to total capitalization, as each is defined in the Credit Agreement) that does not exceed 0.60 to 1.00. In addition, beginning on the date three months prior to each maturity date of the Company's 2017 Notes and 2018 Notes and each day thereafter that the 2017 Notes and the 2018 Notes are outstanding, the Company will be required to maintain liquidity of at least $150 million in excess of each of the outstanding aggregate principal amounts of the 2017 Notes and 2018 Notes. Loans under the Credit Agreement bear interest based on the Eurocurrency rate, a base rate, or the LIBOR rate. | |||||||||||
At August 31, 2014, the Company's interest coverage ratio was 4.94 to 1.00 and the Company's debt to capitalization ratio was 0.48 to 1.00. The Company had no amounts drawn under its revolving credit facilities at August 31, 2014 and 2013. | |||||||||||
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"). 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 pursuant to which the 2023 Notes were issued. Additionally, if a change of control triggering event occurs, as defined by the terms of the indenture governing the 2023 Notes, 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. | |||||||||||
As a result of redeeming the 2013 Notes, the Company recognized expenses of $4.8 million related to loss on early extinguishment of debt and write-off of unamortized debt issuance costs, discounts and premiums, all of which were included in selling, general and administrative expenses in the consolidated statements of operations for the year ended August 31, 2013. | |||||||||||
In August 2008, the Company issued $500.0 million of 7.35% senior unsecured notes due in August 2018 (the "2018 Notes"). In anticipation of the offering, the Company entered into hedge transactions which reduced the Company's effective interest rate on these notes to 6.40% per annum. Interest on these notes is payable semiannually. | |||||||||||
In July 2007, the Company issued $400.0 million of 6.50% senior unsecured notes due in July 2017 (the "2017 Notes"). In anticipation of the offering, the Company entered into hedge transactions which reduced the Company's effective interest rate on these notes to 5.74% per annum. Interest on these notes is payable semiannually. | |||||||||||
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 August 31, 2014 and 2013, the unamortized portion was $26.8 million and $34.4 million, respectively. Amortization of the deferred gain was $7.6 million, $12.5 million and $5.8 million for the years ended August 31, 2014, 2013 and 2012, respectively. | |||||||||||
The Company has uncommitted credit facilities available from U.S. and international banks. In general, these credit facilities are used to support trade letters of credit (including accounts payable settled under bankers' acceptances as described in Note 2, Summary of Significant Accounting Policies), 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: | |||||||||||
Weighted Average | August 31, | ||||||||||
(in thousands) | Interest Rate as of August 31, 2014 | 2014 | 2013 | ||||||||
$400 million notes at 6.50% due July 2017 | 5.74% | $ | 408,546 | $ | 411,518 | ||||||
$500 million notes at 7.35% due August 2018 | 6.40% | 518,305 | 522,930 | ||||||||
$330 million notes at 4.875% due May 2023 | 4.88% | 330,000 | 330,000 | ||||||||
Other, including equipment notes | 32,196 | 19,594 | |||||||||
1,289,047 | 1,284,042 | ||||||||||
Less current maturities | 8,005 | 5,228 | |||||||||
$ | 1,281,042 | $ | 1,278,814 | ||||||||
Interest on these notes is payable semiannually. | |||||||||||
CMC Poland Sp.z.o.o. ("CMCP") has uncommitted credit facilities of $64.0 million with several banks with expiration dates ranging from October 2014 to March 2015. During fiscal 2014, CMCP had total borrowings of $111.7 million and total repayments of $111.7 million under these credit facilities. At August 31, 2014 and 2013, there were no material amounts outstanding under these credit facilities. | |||||||||||
The scheduled maturities of the Company's long-term debt are as follows: | |||||||||||
Year Ending August 31, | (in thousands) | ||||||||||
2015 | $ | 8,005 | |||||||||
2016 | 7,274 | ||||||||||
2017 | 406,748 | ||||||||||
2018 | 505,776 | ||||||||||
2019 | 3,338 | ||||||||||
Thereafter | 331,055 | ||||||||||
Total excluding deferred gain of interest rate swaps | 1,262,196 | ||||||||||
Deferred gain of interest rate swaps | 26,851 | ||||||||||
Total long-term debt including current maturities | $ | 1,289,047 | |||||||||
Interest capitalized in the cost of property, plant and equipment constructed in fiscal 2014 was not material. Interest of $1.0 million and $1.3 million was capitalized in the cost of property, plant and equipment constructed in fiscal 2013 and 2012, respectively. Cash paid for interest for the years ended August 31, 2014, 2013 and 2012 was $85.6 million, $82.5 million and $74.1 million, respectively. |
DERIVATIVES_AND_RISK_MANAGEMEN
DERIVATIVES AND RISK MANAGEMENT | 12 Months Ended | ||||||||||||||
Aug. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||
DERIVATIVES AND RISK MANAGEMENT | ' | ||||||||||||||
NOTE 12. 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 (i) metal commodity futures and forward contracts to mitigate the risk of unanticipated changes in gross margin due to the volatility of the commodities' prices, (ii) foreign currency forward contracts that match the expected settlements for purchases and sales denominated in foreign currencies and (iii) 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 August 31, 2014, the notional value of the Company's foreign currency contract commitments and its commodity contract commitments was $406.6 million and $59.6 million, respectively. At August 31, 2013, the notional value of the Company's foreign currency contract commitments and its commodity contract commitments was $331.0 million and $49.3 million, respectively. | |||||||||||||||
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 years ended August 31, 2014 and 2013. 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: | |||||||||||||||
Year Ended August 31, | |||||||||||||||
Derivatives Not Designated as Hedging Instruments (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||
Commodity | Cost of goods sold | $ | 2,504 | $ | 2,456 | $ | 4,496 | ||||||||
Foreign exchange | Net sales | 473 | — | (199 | ) | ||||||||||
Foreign exchange | Cost of goods sold | (1,078 | ) | — | (537 | ) | |||||||||
Foreign exchange | SG&A expenses | (4,135 | ) | 5,089 | (872 | ) | |||||||||
Other | Cost of goods sold | — | 9 | — | |||||||||||
Gain (loss) before income taxes | $ | (2,236 | ) | $ | 7,554 | $ | 2,888 | ||||||||
The Company's fair value hedges are designated for accounting purposes with the gains or losses on the hedged items offsetting the gains or losses on the related derivative transactions. Hedged items relate to firm commitments on commercial sales and purchases and capital expenditures. | |||||||||||||||
During fiscal 2012, the Company terminated its interest rate swap transactions having a notional value of $800 million. The Company's interest rate swap transactions resulted in a $6.5 million reduction in interest expense for the year ended August 31, 2012. This amount represents the net of the Company's periodic variable-rate interest obligation and the swap counterparty's fixed-rate interest obligation. See Note 11, Credit Arrangements for additional information. | |||||||||||||||
Derivatives Designated as Fair Value | Year Ended August 31, | ||||||||||||||
Hedging Instruments (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||
Foreign exchange | Net sales | $ | 93 | $ | (151 | ) | $ | — | |||||||
Foreign exchange | Cost of goods sold | (1,465 | ) | 2,241 | — | ||||||||||
Foreign exchange | SG&A expenses | — | — | 383 | |||||||||||
Interest rate | Interest expense | — | — | 10,561 | |||||||||||
Gain (loss) before income taxes | $ | (1,372 | ) | $ | 2,090 | $ | 10,944 | ||||||||
Hedged Items Designated as Fair Value | Year Ended August 31, | ||||||||||||||
Hedging Instruments (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||
Foreign exchange | Net sales | $ | (91 | ) | $ | 153 | $ | — | |||||||
Foreign exchange | Cost of goods sold | 1,469 | (2,241 | ) | — | ||||||||||
Foreign exchange | SG&A expenses | — | — | (383 | ) | ||||||||||
Interest rate | Interest expense | — | — | (10,561 | ) | ||||||||||
Gain (loss) before income taxes | $ | 1,378 | $ | (2,088 | ) | $ | (10,944 | ) | |||||||
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss) (in thousands) | August 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Commodity | $ | (54 | ) | $ | (218 | ) | $ | — | |||||||
Foreign exchange | (1,794 | ) | 439 | (1,545 | ) | ||||||||||
Gain (loss), net of income taxes | $ | (1,848 | ) | $ | 221 | $ | (1,545 | ) | |||||||
Effective Portion of Derivatives Designated as Cash Flow | Year Ended August 31, | ||||||||||||||
Hedging Instruments Reclassified from | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||
Commodity | Cost of goods sold | $ | (104 | ) | $ | (169 | ) | $ | 27 | ||||||
Foreign exchange | Net sales | (213 | ) | 46 | (826 | ) | |||||||||
Foreign exchange | Cost of goods sold | (1,349 | ) | 20 | — | ||||||||||
Foreign exchange | SG&A expenses | 52 | 39 | (300 | ) | ||||||||||
Interest rate | Interest expense | 346 | 401 | 521 | |||||||||||
Gain (loss), net of income taxes | $ | (1,268 | ) | $ | 337 | $ | (578 | ) | |||||||
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 August 31, 2014 and 2013. The fair value of the Company's derivative instruments on the consolidated balance sheets was as follows: | |||||||||||||||
Derivative Assets (in thousands) | August 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Commodity — designated for hedge accounting | $ | 42 | $ | — | |||||||||||
Commodity — not designated for hedge accounting | 869 | 1,066 | |||||||||||||
Foreign exchange — designated for hedge accounting | 136 | 1,626 | |||||||||||||
Foreign exchange — not designated for hedge accounting | 1,853 | 1,238 | |||||||||||||
Derivative assets (other current assets)* | $ | 2,900 | $ | 3,930 | |||||||||||
Derivative Liabilities (in thousands) | August 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Commodity — designated for hedge accounting | $ | 6 | $ | 129 | |||||||||||
Commodity — not designated for hedge accounting | 162 | 1,268 | |||||||||||||
Foreign exchange — designated for hedge accounting | 325 | 432 | |||||||||||||
Foreign exchange — not designated for hedge accounting | 1,010 | 1,738 | |||||||||||||
Derivative liabilities (accrued expenses and other payables)* | $ | 1,503 | $ | 3,567 | |||||||||||
_________________________ | |||||||||||||||
* Derivative assets and liabilities do not include the hedged items designated as fair value hedges. | |||||||||||||||
As of August 31, 2014 and 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 were not entered into for trading purposes. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||||
NOTE 13. 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) | August 31, 2014 | 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) | $ | 200,487 | $ | 200,487 | $ | — | $ | — | |||||||||||
Commodity derivative assets (2) | 911 | 911 | — | — | |||||||||||||||
Foreign exchange derivative assets (2) | 1,989 | — | 1,989 | — | |||||||||||||||
Liabilities: | |||||||||||||||||||
Commodity derivative liabilities (2) | 168 | 162 | 6 | — | |||||||||||||||
Foreign exchange derivative liabilities (2) | 1,335 | — | 1,335 | — | |||||||||||||||
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 derivative instruments and the classification of the assets and liabilities is included in Note 12, Derivatives and Risk Management. | |||||||||||||||||||
There were no material non-recurring fair value remeasurements during the year ended August 31, 2014. | |||||||||||||||||||
Property, plant and equipment held for sale (Level 3) measured at fair value on a non-recurring basis at August 31, 2013 was $3.9 million based on appraised values. During the fourth quarter of fiscal 2013, the Company prepared an impairment analysis on its Australian operating unit and determined the carrying value of certain fixed assets exceeded their fair value as determined utilizing market and cost approaches. Determining fair value is judgmental in nature and requires the use of significant estimates and assumptions, considered to be level 3 inputs. The resulting non-recurring impairment charges of $6.3 million were recorded within the International Marketing and Distribution reporting segment at August 31, 2013. As a result of the non-recurring impairment charges, the fair value of International Marketing and Distribution's fixed assets was $20.4 million at August 31, 2013. The Company did not have other assets or intangible assets measured at fair value on a non-recurring basis at August 31, 2013. | |||||||||||||||||||
The carrying values of the Company's short-term items, including the deferred purchase price 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: | |||||||||||||||||||
August 31, 2014 | 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 | $ | 408,546 | $ | 438,200 | $ | 411,518 | $ | 443,646 | ||||||||||
$500 million notes at 7.35% due August 2018 (1) | Level 2 | 518,305 | 567,560 | 522,930 | 570,429 | ||||||||||||||
$330 million notes at 4.875% due May 2023 (1) | Level 2 | 330,000 | 325,050 | 330,000 | 298,650 | ||||||||||||||
_________________ | |||||||||||||||||||
(1) The fair value of the notes is determined based on indicated market values. |
INCOME_TAX
INCOME TAX | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAX | ' | ||||||||||||
NOTE 14. INCOME TAX | |||||||||||||
The components of earnings from continuing operations before income taxes (benefit) are as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 108,882 | $ | 147,204 | $ | 116,400 | |||||||
Foreign | 35,929 | (14,268 | ) | 48,387 | |||||||||
Total | $ | 144,811 | $ | 132,936 | $ | 164,787 | |||||||
The income taxes (benefit) included in the consolidated statements of operations are as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
United States | $ | 11,798 | $ | 849 | $ | 1,560 | |||||||
Foreign | 2,965 | 1,970 | 419 | ||||||||||
State and local | 4,157 | 1,815 | 3,411 | ||||||||||
Current taxes | $ | 18,920 | $ | 4,634 | $ | 5,390 | |||||||
Deferred: | |||||||||||||
United States | $ | 30,427 | $ | 45,908 | $ | (65,710 | ) | ||||||
Foreign | 4,457 | 4,980 | 7,130 | ||||||||||
State and local | (2,536 | ) | 3,767 | (1,419 | ) | ||||||||
Deferred taxes (benefit) | $ | 32,348 | $ | 54,655 | $ | (59,999 | ) | ||||||
Total income taxes (benefit) on income | $ | 51,268 | $ | 59,289 | $ | (54,609 | ) | ||||||
Income taxes (benefit) on discontinued operations | 8,544 | 1,310 | (8,847 | ) | |||||||||
Income taxes (benefit) on continuing operations | $ | 42,724 | $ | 57,979 | $ | (45,762 | ) | ||||||
A reconciliation of the federal statutory rate to the Company's effective income tax rate from continuing operations is as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income tax expense (benefit) at statutory rate of 35% | $ | 50,684 | $ | 46,528 | $ | 57,675 | |||||||
State and local taxes | 88 | 3,460 | 4,596 | ||||||||||
Section 199 manufacturing deduction | (1,199 | ) | — | — | |||||||||
Foreign rate differential | (5,940 | ) | (3,295 | ) | (9,909 | ) | |||||||
Change in valuation allowance | 22,079 | 14,264 | 10,033 | ||||||||||
Deferred compensation | (4,164 | ) | (2,890 | ) | (1,094 | ) | |||||||
Nontaxable foreign interest | (16,506 | ) | (5,445 | ) | — | ||||||||
Disposition of foreign subsidiaries | — | 6,292 | (102,104 | ) | |||||||||
Australian reorganization | — | (7,245 | ) | — | |||||||||
Research and experimentation tax credits | — | — | (11,500 | ) | |||||||||
Other | (2,318 | ) | 6,310 | 6,541 | |||||||||
Income tax expense (benefit) on continuing operations | $ | 42,724 | $ | 57,979 | $ | (45,762 | ) | ||||||
Effective income tax rates from continuing operations | 29.5 | % | 43.6 | % | (27.8 | )% | |||||||
The Company's effective income tax rate from discontinued operations for the years ended August 31, 2014, 2013 and 2012 was 38.8%, 35.7% and 74.3%, respectively. | |||||||||||||
The Company's effective income tax rate from continuing operations was 29.5% for the year ended August 31, 2014. It was lower than the statutory income tax rate of 35% because the Company had income from operations in countries which have lower income tax rates than the United States, notably Poland, which has a statutory income tax rate of 19%. In addition the Company realized a benefit under Section 199 of the Internal Revenue Code related to domestic production activity income and had non-taxable net holding gain on assets segregated to fund the nonqualified benefit restoration plan ("BRP Plan"). | |||||||||||||
For the year ended August 31, 2013, the effective income tax rate from continuing operations was 43.6%; higher than the U.S. statutory income tax rate of 35%. The income tax rate was primarily driven by a $14.3 million increase in the Company's valuation allowances on deferred tax assets in jurisdictions that more likely than not will not be realized. The increase in the valuation allowances was primarily related to unfavorable results reported by the Company's Australian operations during fiscal 2013 that led these operations to a three year cumulative loss position. As a result, the Company determined that is was more likely than not that the deferred tax assets associated with the Australian operations would not be realized. | |||||||||||||
During the year ended August 31, 2012, the Company recognized an income tax loss in the amount of $291.0 million related to its investments in its Croatian subsidiary. As a result, an income tax benefit of $102.1 million was recorded from these losses in continuing operations for the year ended August 31, 2012. The Company reported and disclosed the investment loss on its U.S. income tax return as ordinary worthless stock and bad debt deductions. This income tax benefit was the primary reason for the variance from the statutory income tax rate of 35%. | |||||||||||||
The Company made net payments of $11.8 million and received net refunds of $7.6 million for income taxes for the years ended August 31, 2014 and 2013, respectively. The Company made net payments of $17.2 million for income taxes for the year ended August 31, 2012. | |||||||||||||
The income tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows: | |||||||||||||
August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Deferred compensation and employee benefits | $ | 51,956 | $ | 56,504 | |||||||||
Net operating losses and credits | 68,736 | 99,200 | |||||||||||
Reserves and other accrued expenses | 45,246 | 34,375 | |||||||||||
Allowance for doubtful accounts | 3,760 | 5,020 | |||||||||||
Intangibles | 6,707 | 8,153 | |||||||||||
Other | 8,766 | 12,879 | |||||||||||
Total deferred tax assets | 185,171 | 216,131 | |||||||||||
Valuation allowance for deferred tax assets | (69,762 | ) | (48,837 | ) | |||||||||
Deferred tax assets, net | $ | 115,409 | $ | 167,294 | |||||||||
Deferred tax liabilities: | |||||||||||||
Fixed assets | $ | 99,016 | $ | 113,547 | |||||||||
Inventory | 8,320 | 10,219 | |||||||||||
Other | 4,066 | 5,354 | |||||||||||
Total deferred tax liabilities | $ | 111,402 | $ | 129,120 | |||||||||
Deferred tax assets, net of deferred tax liabilities | $ | 4,007 | $ | 38,174 | |||||||||
Net operating losses giving rise to deferred tax assets consist of $307.0 million state net operating losses that expire during the tax years ending from 2015 to 2034 and foreign net operating losses of $178.8 million that expire during the tax years beginning in 2015. These assets will be reduced as income tax expense is recognized in future periods. | |||||||||||||
The Company maintains a valuation allowance to reduce certain deferred tax assets to amounts that are more likely than not to be realized. During the year ended August 31, 2014, the Company recorded a valuation allowance in the amount of $20.9 million primarily for the benefit of net operating loss carryforwards in both U.S. state and foreign jurisdictions due to the uncertainty of their realization. During the year ended August 31, 2013, the Company recorded a valuation allowance in the amount of $23.1 million primarily for the benefit of net operating loss carryforwards in certain jurisdictions due to the uncertainty of their realization. | |||||||||||||
In general, it is the practice and intention of the Company to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of August 31, 2014, the Company has not made a provision for U.S. or additional foreign withholding taxes on approximately $488.3 million of the excess of the amount for financial reporting over the income tax basis of investments in foreign subsidiaries that is indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. | |||||||||||||
The unrecognized income tax benefits as of August 31, 2014, 2013 and 2012 were $27.3 million, $28.6 million and $27.4 million respectively, of which $12.0 million, $13.3 million and $10.1 million, if recognized, would have impacted the Company's effective income tax rate at the end of fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized income tax benefits is as follows: | |||||||||||||
August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Balance at September 1 | $ | 28,551 | $ | 27,384 | $ | 10,762 | |||||||
Change in tax positions of current year | — | 1,255 | — | ||||||||||
Change for tax positions of prior years | (1,202 | ) | — | 18,006 | |||||||||
Reductions due to settlements with taxing authorities | — | (88 | ) | (600 | ) | ||||||||
Reductions due to statute of limitations lapse | — | — | (784 | ) | |||||||||
Balance at August 31 | $ | 27,349 | $ | 28,551 | $ | 27,384 | |||||||
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 liability for uncertain income tax positions. At August 31, 2014 and 2013, the Company had accrued interest and penalties related to uncertain tax positions of $3.4 million and $2.8 million, respectively. | |||||||||||||
During the twelve months ending August 31, 2015, it is reasonably possible that the statute of limitations pertaining to positions of the Company in prior year income tax returns may lapse 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 $16.9 million, which would reduce the provision for income taxes on earnings by $2.7 million. | |||||||||||||
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: | |||||||||||||
U.S. Federal — 2009 and forward | |||||||||||||
U.S. States — 2009 and forward | |||||||||||||
Foreign — 2007 and forward | |||||||||||||
The Company is under examination by the Internal Revenue Service and state revenue authorities from 2009 to 2011. Management believes the Company's recorded income tax liabilities as of August 31, 2014 sufficiently reflect the anticipated outcome of these examinations. |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
STOCK-BASED COMPENSATION PLANS | ' | ||||||||||||||||||||
NOTE 15. STOCK-BASED COMPENSATION PLANS | |||||||||||||||||||||
The Company's stock-based compensation plans provide for the issuance of incentive and non-qualified stock options, restricted stock and units, stock appreciation rights and performance-based awards. The Compensation Committee of the Board of Directors (the "Compensation Committee") approves all awards that are granted under the Company's stock-based compensation plans. Stock-based compensation expense for the years ended August 31, 2014, 2013 and 2012 of $18.1 million, $18.7 million and $13.1 million, respectively, is mainly included in selling, general and administrative expenses on the Company's consolidated statements of operations. As of August 31, 2014, total unrecognized compensation cost related to unvested stock-based compensation arrangements was $24.4 million, which is expected to be recognized over a weighted-average period of three years, except for certain restricted stock units granted during fiscal 2014, which will vest over a weighted-average period of four years. | |||||||||||||||||||||
The following table summarizes the total awards granted: | |||||||||||||||||||||
Stock | Restricted Stock | Performance | |||||||||||||||||||
Options/SARs | Awards/Units | Awards | |||||||||||||||||||
2014 Grants | — | 1,191,544 | 450,233 | ||||||||||||||||||
2013 Grants | 244,403 | 1,149,696 | 640,002 | ||||||||||||||||||
2012 Grants | 927,312 | 829,001 | 693,472 | ||||||||||||||||||
As of August 31, 2014, CMC had 15,286,763 shares available for future grants. | |||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||
Restricted stock units issued under the Company's stock-based compensation plans provide that shares awarded may not be sold, transferred, pledged or assigned until service-based restrictions have elapsed. The restricted stock units granted to U.S. employees generally vest and are converted to CMC common stock in three equal installments on each of the first three anniversaries of the date of grant. The restricted stock units granted to non-U.S. employees generally vest and are settled in cash in three equal installments on each of the first three anniversaries of the date of grant. Generally, upon termination of employment, restricted stock awards that have not vested are forfeited. Upon death, disability or qualifying retirement a pro-rata portion of the unvested restricted stock awarded will vest and become payable. | |||||||||||||||||||||
Certain restricted stock units granted during fiscal 2014 will vest and either convert to CMC common stock or settle in cash after a specified service period; 25% vest two years from the date of grant; 25% vest three years from the date of grant and; the remaining 50% vest four years from the date of grant. | |||||||||||||||||||||
The estimated fair value of the stock-settled restricted stock units is based on the closing price of CMC common stock on the date of grant, discounted for the expected dividend yield through the vesting period. Compensation cost related to the stock-settled restricted stock units is recognized ratably over the service period and is included in equity on the Company's consolidated balance sheets. The fair value of the cash-settled restricted stock units is remeasured each reporting period and is recognized ratably over the service period. The liability related to the cash-settled restricted stock units is included in accrued expenses and other payables on the Company's consolidated balance sheets. | |||||||||||||||||||||
Performance Stock Units | |||||||||||||||||||||
Performance stock units issued under the Company's stock-based compensation plans provide that shares awarded may not be sold, transferred, pledged or assigned until service-based restrictions have elapsed and any performance objectives have been attained as established by the Compensation Committee. Recipients of these awards generally must be actively employed by and providing services to the Company on the last day of the performance period in order to receive an award payout. Upon death, disability or qualifying retirement a pro-rata portion of the performance stock units will vest and become payable at the end of the performance period. | |||||||||||||||||||||
Compensation cost for performance stock units is accrued based on the probable outcome of specified performance conditions, net of estimated forfeitures. The Company accrues compensation cost if it is probable that the performance conditions will be met. The Company reassesses the probability of meeting the specified performance conditions at the end of each reporting period and adjusts compensation cost, as necessary, based on the probability of achieving the performance conditions. If the performance conditions are not met at the end of the performance period, the Company reverses the related compensation cost. | |||||||||||||||||||||
Performance targets established by the Compensation Committee for performance stock units awarded in fiscal 2013 are weighted 75% based on the Company's cumulative EBITDA targets for fiscal years 2013, 2014 and 2015, as approved by the Company's Board of Directors in the respective year's business plan, and 25% based on a three year relative total stockholder return metric. Performance stock units awarded to U.S. participants will be settled in CMC common stock. Award payouts range from a threshold of 50% to a maximum of 200% for each portion of the target awards. The performance stock units associated with the cumulative EBITDA targets have been classified as liability awards since the final EBITDA target will not be set until the third year of the performance period. Consequently, these awards are included in accrued expenses and other payables on the Company's consolidated balance sheets. The fair value of these performance stock units is remeasured each reporting period and is recognized ratably over the service period. The performance stock units associated with the total stockholder return metric were valued at fair value on the date of grant using the Monte Carlo pricing model and are included in equity on the Company's consolidated balance sheets. | |||||||||||||||||||||
Performance stock units awarded to non-U.S. participants in fiscal 2013 will be settled in cash. The fair value of the performance stock units is remeasured each reporting period and is recognized ratably over the service period. The liability related to these awards is included in accrued expenses and other payables on the Company's consolidated balance sheets. | |||||||||||||||||||||
Performance targets established by the Compensation Committee for performance stock units awarded in fiscal 2012 are weighted 50% based on the Company's EBITDA targets and 50% based on Company's return on net assets ("RONA") targets for fiscal years 2012, 2013 and 2014, as approved by the Company's Board of Directors. Performance stock units awarded in fiscal 2012 will be settled in cash. Consequently, these awards are included in accrued expenses and other payables on the Company's consolidated balance sheets. The fair value of the fiscal 2012 performance stock units is remeasured each reporting period and is recognized ratably over the service period. At August 31, 2014, the Company reassessed the probability of achieving the specified performance conditions related to performance stock units awarded in fiscal 2012 and determined the Company will not meet the EBITDA and RONA targets at the end of the service period. As a result, the compensation cost previously recognized for these performance stock units was reversed in fiscal 2014. | |||||||||||||||||||||
In fiscal 2013, the Company reassessed the probability of achieving the specified performance conditions related to performance stock units awarded in fiscal 2011 and determined the Company did not meet the EBITDA and RONA targets at the end of the service period. In addition, the Compensation Committee determined that the Company did not meet the total stockholder return vesting criteria at the end of the performance period for performance stock units awarded in fiscal 2010. As a result, the compensation cost previously recognized for these performance stock units was reversed in fiscal 2013. | |||||||||||||||||||||
Information for restricted stock units and performance stock units, excluding the cash component, is as follows: | |||||||||||||||||||||
Number | Weighted Average | ||||||||||||||||||||
Grant-Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Outstanding as of September 1, 2011 | 2,394,140 | $ | 13.44 | ||||||||||||||||||
Granted | 489,118 | 10.68 | |||||||||||||||||||
Vested | (773,947 | ) | 13.9 | ||||||||||||||||||
Forfeited | (425,739 | ) | 10.56 | ||||||||||||||||||
Outstanding as of August 31, 2012 | 1,683,572 | 13.16 | |||||||||||||||||||
Granted | 1,159,451 | 13.6 | |||||||||||||||||||
Vested | (537,303 | ) | 13.35 | ||||||||||||||||||
Forfeited | (398,302 | ) | 12.22 | ||||||||||||||||||
Outstanding as of August 31, 2013 | 1,907,418 | 13.57 | |||||||||||||||||||
Granted | 1,275,355 | 16.89 | |||||||||||||||||||
Vested | (737,870 | ) | 13.55 | ||||||||||||||||||
Forfeited | (364,323 | ) | 14.94 | ||||||||||||||||||
Outstanding as of August 31, 2014 | 2,080,580 | $ | 15.37 | ||||||||||||||||||
The total fair value of shares vested during fiscal years 2014, 2013 and 2012 was $10.0 million, $7.2 million and $10.7 million, respectively. | |||||||||||||||||||||
The Company granted 390,562 equivalent shares of restricted stock units and performance stock units accounted for as liability awards during the year ended August 31, 2014. As of August 31, 2014, the Company had 1,617,014 equivalent shares of awards outstanding and expects 1,537,212 equivalent shares to vest. | |||||||||||||||||||||
Stock Appreciation Rights and Stock Options | |||||||||||||||||||||
Stock appreciation rights and stock options are awarded to certain employees with an exercise price equal to the market value of CMC common stock on the date of grant. No stock appreciation rights or stock options were granted during the year ended August 31, 2014. Stock appreciation rights and stock options issued during the year ended August 31, 2013 and 2012 are exercisable ratably over the three year vesting period and have a contractual term of seven years. The estimated fair value of stock appreciation rights and stock options granted under the Company's plans during the years ended August 31, 2013 and 2012 of $0.6 million and $3.0 million, respectively, was estimated on the date of grant using the Black-Scholes Option Pricing Model with the following assumptions: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Risk-free interest rate | 0.41 | % | 0.43 | % | |||||||||||||||||
Expected life, years | 3 | 3 | |||||||||||||||||||
Expected volatility | 43 | % | 59 | % | |||||||||||||||||
Expected dividend yield | 3.4 | % | 4.14 | % | |||||||||||||||||
Weighted average grant-date fair value per share | $ | 3.38 | $ | 3.67 | |||||||||||||||||
Combined activity for the Company's stock appreciation rights and stock options, excluding the cash component, is as follows: | |||||||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||
Exercise | Remaining | ||||||||||||||||||||
Price | Contractual Life | ||||||||||||||||||||
(Years) | |||||||||||||||||||||
Outstanding as of September 1, 2011 | 2,807,498 | $ | 27.45 | ||||||||||||||||||
Granted | 828,463 | 11.63 | |||||||||||||||||||
Exercised | (361,478 | ) | 12.34 | ||||||||||||||||||
Forfeited/Expired | (343,991 | ) | 27.78 | ||||||||||||||||||
Outstanding as of August 31, 2012 | 2,930,492 | $ | 24.81 | 3.3 | $ | 1,104,590 | |||||||||||||||
Granted | 185,004 | 14.25 | |||||||||||||||||||
Exercised | (4,105 | ) | 11.6 | ||||||||||||||||||
Forfeited/Expired | (457,961 | ) | 24.91 | ||||||||||||||||||
Outstanding as of August 31, 2013 | 2,653,430 | $ | 24.07 | 2.8 | $ | 2,867,175 | |||||||||||||||
Granted | — | — | |||||||||||||||||||
Exercised | (223,473 | ) | 11.84 | ||||||||||||||||||
Forfeited/Expired | (992,926 | ) | 32.93 | ||||||||||||||||||
Outstanding as of August 31, 2014 | 1,437,031 | $ | 19.85 | 2.7 | $ | 4,384,668 | |||||||||||||||
Exercisable at August 31, 2014 | 1,018,397 | $ | 22.95 | 2.1 | $ | 2,307,463 | |||||||||||||||
Remaining unvested stock appreciation rights and stock options expected to vest | 397,703 | $ | 12.32 | ||||||||||||||||||
The total intrinsic value of stock appreciation rights and stock options exercised during fiscal year 2014 was $1.7 million. The aggregate intrinsic value of stock appreciation rights and stock options exercised during fiscal 2013 and 2012 was not material. | |||||||||||||||||||||
Information related to stock appreciation rights and stock options as of August 31, 2014 is summarized below: | |||||||||||||||||||||
Stock Appreciation Rights and Stock Options Outstanding | Stock Appreciation Rights and Stock Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life (In Years) | Weighted | Number Exercisable | Weighted Average Remaining Contractual Life (In Years) | Weighted | |||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Price | Price | ||||||||||||||||||||
$11.00 | - | 14.68 | 868,245 | 3.7 | $ | 12.3 | 456,081 | 3.2 | $ | 12.34 | |||||||||||
$16.54 | - | 16.83 | 121,706 | 3.5 | $ | 16.81 | 115,236 | 3.4 | $ | 16.82 | |||||||||||
$32.82 | - | 35.38 | 447,080 | 0.7 | $ | 35.36 | 447,080 | 0.7 | $ | 35.36 | |||||||||||
1,437,031 | 2.7 | $ | 19.85 | 1,018,397 | 2.1 | $ | 22.95 | ||||||||||||||
No cash-settled stock appreciation rights were granted during the year ended August 31, 2014. As of August 31, 2014, the Company had 104,589 equivalent shares of cash-settled stock appreciation rights outstanding and expects 99,360 equivalent shares of cash-settled stock appreciation rights to vest. | |||||||||||||||||||||
During the year ended August 31, 2013, the Company awarded 59,399 equivalent shares of stock appreciation rights to non-U.S. employees, which are settled in cash. The fair value of these stock appreciation rights is remeasured each reporting period and is recognized ratably over the service period. The liability related to these awards is included in accrued expenses and other payables on the Company's consolidated balance sheets. | |||||||||||||||||||||
Stock Purchase Plan | |||||||||||||||||||||
Almost all U.S. resident employees with one year of service at the beginning of each calendar year may participate in the Company's employee stock purchase plan. Each eligible employee may purchase up to 400 shares annually. The Board of Directors establishes the purchase discount of 15% based on market prices on specified dates for the years ended August 31, 2014, 2013 and 2012. Yearly activity of the stock purchase plan is as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares subscribed | 228,780 | 281,460 | 299,210 | ||||||||||||||||||
Price per share | $ | 16.97 | $ | 12.61 | $ | 11.85 | |||||||||||||||
Shares purchased | 221,570 | 211,580 | 198,300 | ||||||||||||||||||
Price per share | $ | 12.61 | $ | 11.85 | $ | 11.76 | |||||||||||||||
Shares available for future issuance | 3,955,314 | ||||||||||||||||||||
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended |
Aug. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
CAPITAL STOCK | ' |
NOTE 16. CAPITAL STOCK | |
Treasury Stock | |
CMC did not purchase any shares during the years ended August 31, 2014 and 2013 and had remaining authorization to purchase 8,259,647 shares of its common stock at August 31, 2014. | |
On October 27, 2014, the Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $100.0 million of CMC's outstanding common stock. This new program replaces the existing program, which has been terminated by the Company's Board of Directors in connection with the approval of the new program. The Company intends to repurchase shares from time to time for cash in open market transactions or in privately-negotiated transactions in accordance with applicable federal securities laws. The timing and the amount of repurchases, if any, will be determined by the Company's management based on its evaluation of market conditions, capital allocation alternatives and other factors. The new share repurchase program does not require the Company to acquire any dollar amount or number of shares of CMC's common stock and may be modified, suspended, extended or terminated by the Company at any time without prior notice. | |
Preferred Stock | |
Preferred stock has a par value of $1.00 per share, with 2,000,000 shares authorized. It may be issued in series, and the shares of each series have such rights and preferences as may be fixed by CMC's Board of Directors when authorizing the issuance of that particular series. There are no shares of preferred stock outstanding. | |
Stockholder Rights Plan | |
On July 30, 2011, CMC's Board of Directors adopted a stockholder rights plan ("Rights Plan") pursuant to which the Board declared a dividend to stockholders of record as of August 11, 2011, of one Preferred Stock Purchase Right ("Right") on each outstanding share of CMC common stock. On December 6, 2012, the Company terminated the Rights Plan. No Rights were exercised, traded or redeemed under the Rights Plan. |
EMPLOYEES_RETIREMENT_PLANS
EMPLOYEES' RETIREMENT PLANS | 12 Months Ended |
Aug. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
EMPLOYEES' RETIREMENT PLANS | ' |
NOTE 17. EMPLOYEES' RETIREMENT PLANS | |
Substantially all employees in the U.S. are covered by a defined contribution profit sharing and savings plan. This tax qualified plan is maintained and contributions are made in accordance with the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The Company also provides certain eligible executives' benefits pursuant to its BRP Plan equal to amounts that would have been available under the tax qualified ERISA plan, but were subject to the limitations of ERISA, tax laws and regulations. Company expenses, a portion of which are discretionary, for these plans were $19.3 million, $15.9 million and $13.0 million for the years ended August 31, 2014, 2013 and 2012, respectively, and are included in selling, general and administrative expenses in the Company's consolidated statements of operations. | |
The deferred compensation liability under the BRP Plan was $78.0 million and $78.8 million at August 31, 2014 and 2013, respectively, and is included in other long-term liabilities on the Company's consolidated balance sheets. Though under no obligation to fund the plan, the Company has segregated assets in a trust with a current value of $69.5 million and $59.4 million at August 31, 2014 and 2013, respectively, and such assets are included in other long-term assets on the Company's consolidated balance sheets. The net holding gain on these segregated assets was $13.3 million, $9.9 million and $5.3 million for the years ended August 31, 2014, 2013 and 2012, respectively, and is included in net sales in the Company's consolidated statements of operations. | |
A certain number of employees, primarily outside of the U.S., participate in defined benefit plans that are maintained in accordance with local regulations. The Company's expenses for these plans were $2.0 million, $3.6 million and $2.2 million for the years ended August 31, 2014, 2013 and 2012, respectively, and are included in selling, general and administrative expenses in the Company's consolidated statements of operations. The Company recognizes the unfunded status of the defined benefit plans as a liability with a corresponding reduction to accumulated other comprehensive income, net of income taxes. At August 31, 2014 and 2013, the Company's liability related to the unfunded status of the defined benefit plans was $2.4 million and $3.5 million, respectively, and is included in other long-term liabilities on the Company's consolidated balance sheets. | |
Because the defined benefit pension plans are not material to the Company's consolidated financial statements, disclosures that would have otherwise been required by U.S. GAAP have been omitted. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Aug. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 18. COMMITMENTS AND CONTINGENCIES | |||||
Minimum lease commitments payable by the Company for noncancelable operating leases are as follows: | |||||
Year Ending August 31, | (in thousands) | ||||
2015 | $ | 33,754 | |||
2016 | 26,300 | ||||
2017 | 21,170 | ||||
2018 | 14,509 | ||||
2019 | 11,327 | ||||
Thereafter | 28,131 | ||||
Total | $ | 135,191 | |||
Total rental expense was $46.8 million, $46.6 million and $43.9 million in fiscal years 2014, 2013 and 2012, respectively. | |||||
Legal and Environmental Matters | |||||
In the ordinary course of conducting its business, the Company becomes involved in litigation, administrative proceedings and governmental investigations, including environmental matters. | |||||
On September 18, 2008, the Company was served with a purported 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, alleged 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 purported to be brought on behalf of a class consisting of all parties who purchased steel products directly from the defendants between January 1, 2005 and September 2008 (collectively, the "Direct Purchaser Plaintiffs"), sought treble damages and costs, including reasonable attorney fees and pre- and post-judgment interest. | |||||
On March 14, 2014, the Company entered into a final settlement agreement with the Direct Purchaser Plaintiffs. As part of that final settlement, in April 2014, the Company paid approximately $4.0 million to the Direct Purchaser Plaintiffs in consideration for the full and final release of all claims of the Direct Purchaser Plaintiffs. The Company maintains that the claims lacked merit and that it has full and complete defenses to all of the claims asserted against it. However, the Company agreed to enter into the settlement agreement to avoid further expense, inconvenience, and distraction of burdensome and protracted litigation. On October 17, 2014, the court granted final approval of the settlement. | |||||
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 purported 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 as of the date of these financial statements, the Company cannot reasonably estimate a range of loss relating to these cases. | |||||
The Company has received notices from the U.S. Environmental Protection Agency ("EPA") or state agencies with similar responsibility that it is considered a potentially responsible party ("PRP") at several sites, none owned by the Company, and may be obligated under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ("CERCLA") or similar state statute to conduct remedial investigations, feasibility studies, remediation and/or removal of alleged releases of hazardous substances or to reimburse the EPA for such activities. The Company is involved in litigation or administrative proceedings with regard to several of these sites in which the Company is contesting, or at the appropriate time may contest, its liability at the sites. In addition, the Company has received information requests with regard to other sites which may be under consideration by the EPA as potential CERCLA sites. Some of these environmental matters or other proceedings may result in fines, penalties or judgments being assessed against the Company. At August 31, 2014 and 2013, the Company had $0.7 million and $0.9 million, respectively, accrued for cleanup and remediation costs in connection with CERCLA sites. The estimation process is based on currently available information, which is in many cases preliminary and incomplete. Total environmental liabilities, including CERCLA sites, were $6.2 million and $9.0 million as of August 31, 2014 and 2013, of which $2.3 million and $5.0 million were classified as other long-term liabilities as of August 31, 2014 and 2013. Due to evolving remediation technology, changing regulations, possible third-party contributions, the inherent shortcomings of the estimation process and other factors, amounts accrued could vary significantly from amounts paid. Historically, the amounts the Company has ultimately paid for such remediation activities have not been material. | |||||
Management believes that adequate provisions have been made in the Company's consolidated financial statements for the potential impact of these contingencies, and that the outcomes of the suits and proceedings described above, and other miscellaneous litigation and proceedings now pending, will not have a material adverse effect on the business, results of operations, or financial condition of the Company. | |||||
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 had no exposure as of August 31, 2014. The Company's maximum exposure was $3.5 million as of August 31, 2013. |
EARNINGS_PER_SHARE_ATTRIBUTABL
EARNINGS PER SHARE ATTRIBUTABLE TO CMC | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO CMC | ' | ||||||||||||
NOTE 19. EARNINGS PER SHARE ATTRIBUTABLE TO CMC | |||||||||||||
The calculations of basic and diluted earnings per share from continuing operations were as follows: | |||||||||||||
August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Earnings from continuing operations | $ | 102,087 | $ | 74,957 | $ | 210,549 | |||||||
Basic earnings per share: | |||||||||||||
Shares outstanding for basic earnings per share | 117,496,270 | 116,677,836 | 115,861,986 | ||||||||||
Basic earnings per share from continuing operations attributable to CMC | $ | 0.87 | $ | 0.64 | $ | 1.82 | |||||||
Diluted earnings per share: | |||||||||||||
Shares outstanding for basic earnings per share | 117,496,270 | 116,677,836 | 115,861,986 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock-based incentive/purchase plans | 1,110,836 | 875,116 | 921,174 | ||||||||||
Shares outstanding for diluted earnings per share | 118,607,106 | 117,552,952 | 116,783,160 | ||||||||||
Diluted earnings per share from continuing operations attributable to CMC | $ | 0.86 | $ | 0.64 | $ | 1.8 | |||||||
Anti-dilutive shares not included above | 679,916 | 1,492,206 | 2,804,492 | ||||||||||
_______________________ | |||||||||||||
All stock options and stock appreciation rights expire during fiscal 2020. | |||||||||||||
The Company's restricted stock is included in the number of shares of common stock issued and outstanding, but omitted from the basic earnings per share calculation until the shares vest. |
ACCRUED_EXPENSES_AND_OTHER_PAY
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
ACCRUED EXPENSES AND OTHER PAYABLES | ' | ||||||||
NOTE 20. ACCRUED EXPENSES AND OTHER PAYABLES | |||||||||
Significant accrued expenses and other payables were as follows: | |||||||||
August 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Salaries and incentive compensation | $ | 115,840 | $ | 77,849 | |||||
Advance billings on contracts | 41,645 | 53,089 | |||||||
Taxes other than income taxes | 39,998 | 46,480 | |||||||
Insurance | 25,239 | 24,911 | |||||||
Inventory | 17,181 | 11,311 | |||||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | ' | ||||||||||||||||||||||||||||||||
NOTE 21. BUSINESS SEGMENTS | |||||||||||||||||||||||||||||||||
The Company's operating segments engage in business activities from which they may earn revenues and incur expenses and for which discrete financial information is available. Operating results for the operating segments are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segments and to assess performance. The Company's chief operating decision maker is identified as the Chief Executive Officer. Operating segments are aggregated for reporting purposes when the operating segments are identified as similar in accordance with the basic principles and aggregation criteria in the accounting standards. The Company's reporting segments are based primarily on product lines and secondarily on geographic area. The reporting 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 reporting segments: Americas Recycling, Americas Mills, Americas Fabrication, International Mill and International Marketing and Distribution. See Note 1, Nature of Operations, for more information about the reporting segments, including the types of products and services from which each reporting segment derives its revenues. | |||||||||||||||||||||||||||||||||
Corporate contains expenses of the Company's corporate headquarters and interest expense related to its long-term debt. | |||||||||||||||||||||||||||||||||
The financial information presented for the Americas Mills segment excludes Howell. Additionally, the financial information presented for the International Mill segment excludes the operations of CMCS. These operations have been classified as discontinued operations in the consolidated statements of operations. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions for more information. | |||||||||||||||||||||||||||||||||
The Company uses adjusted operating profit (loss), a non-GAAP financial measure, to compare and to evaluate the financial performance of its segments. Adjusted operating profit (loss) is the sum of the Company's earnings from continuing operations before income taxes (benefit), interest expense and discounts on sales of accounts receivable. Intersegment sales are generally priced at prevailing market prices. Certain corporate administrative expenses are allocated to the segments based upon the nature of the expense. The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies. | |||||||||||||||||||||||||||||||||
The following is a summary of certain financial information from continuing operations by reportable segment: | |||||||||||||||||||||||||||||||||
Americas | International | ||||||||||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Corporate | Eliminations | Continuing Operations | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 1,176,907 | $ | 1,198,249 | $ | 1,523,573 | $ | 822,224 | $ | 2,304,723 | $ | 14,283 | $ | — | $ | 7,039,959 | |||||||||||||||||
Intersegment sales | 190,163 | 793,085 | 13,912 | 969 | 21,789 | — | (1,019,918 | ) | — | ||||||||||||||||||||||||
Net sales | 1,367,070 | 1,991,334 | 1,537,485 | 823,193 | 2,326,512 | 14,283 | (1,019,918 | ) | 7,039,959 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | (3,222 | ) | 247,703 | 6,196 | 30,632 | 17,757 | (72,347 | ) | (302 | ) | 226,417 | ||||||||||||||||||||||
Interest expense* | 2,700 | 7,059 | 10,222 | 4,608 | 8,900 | 44,252 | — | 77,741 | |||||||||||||||||||||||||
Capital expenditures** | 16,771 | 31,781 | 13,798 | 30,770 | 1,722 | 6,907 | — | 101,749 | |||||||||||||||||||||||||
Depreciation and amortization*** | 16,424 | 45,392 | 19,192 | 32,776 | 4,150 | 21,243 | — | 139,177 | |||||||||||||||||||||||||
Total assets**** | 296,564 | 647,437 | 691,765 | 466,449 | 949,016 | 1,100,995 | (470,716 | ) | 3,681,510 | ||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 1,225,604 | $ | 1,060,337 | $ | 1,427,785 | $ | 819,889 | $ | 2,344,128 | $ | 11,832 | $ | — | $ | 6,889,575 | |||||||||||||||||
Intersegment sales | 166,145 | 759,183 | 14,906 | 6,155 | 11,444 | — | (957,833 | ) | — | ||||||||||||||||||||||||
Net sales | 1,391,749 | 1,819,520 | 1,442,691 | 826,044 | 2,355,572 | 11,832 | (957,833 | ) | 6,889,575 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | 3,170 | 204,333 | 28,033 | 890 | 35,617 | (66,453 | ) | 848 | 206,438 | ||||||||||||||||||||||||
Interest expense* | 9 | (101 | ) | 83 | 992 | 4,369 | 64,256 | — | 69,608 | ||||||||||||||||||||||||
Capital expenditures** | 21,261 | 37,216 | 5,605 | 15,155 | 1,015 | 7,552 | — | 87,804 | |||||||||||||||||||||||||
Depreciation and amortization*** | 13,453 | 42,925 | 22,302 | 33,238 | 17,988 | 21,096 | — | 151,002 | |||||||||||||||||||||||||
Total assets**** | 309,599 | 598,478 | 631,510 | 487,613 | 838,413 | 1,075,594 | (496,946 | ) | 3,444,261 | ||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 1,418,717 | $ | 1,206,651 | $ | 1,366,944 | $ | 955,730 | $ | 2,700,300 | $ | 8,033 | $ | — | $ | 7,656,375 | |||||||||||||||||
Intersegment sales | 187,444 | 777,070 | 14,694 | 77,627 | 27,019 | — | (1,083,854 | ) | — | ||||||||||||||||||||||||
Net sales | 1,606,161 | 1,983,721 | 1,381,638 | 1,033,357 | 2,727,319 | 8,033 | (1,083,854 | ) | 7,656,375 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | 39,446 | 235,918 | (15,697 | ) | 23,044 | 47,287 | (83,035 | ) | (6,251 | ) | 240,712 | ||||||||||||||||||||||
Interest expense* | 1,933 | 12,995 | 10,809 | 10,090 | 6,548 | 27,112 | — | 69,487 | |||||||||||||||||||||||||
Capital expenditures** | 40,329 | 38,140 | 4,389 | 14,016 | 3,314 | 8,197 | — | 108,385 | |||||||||||||||||||||||||
Depreciation and amortization*** | 13,260 | 40,704 | 22,056 | 32,306 | 5,821 | 20,295 | — | 134,442 | |||||||||||||||||||||||||
Total assets**** | 285,136 | 615,070 | 629,970 | 529,160 | 870,933 | 961,654 | (494,053 | ) | 3,397,870 | ||||||||||||||||||||||||
________________________ | |||||||||||||||||||||||||||||||||
* Includes intercompany interest expense (income) in the segments and is all eliminated within Corporate. | |||||||||||||||||||||||||||||||||
** Excludes capital expenditures from discontinued operations of $1.2 million and $5.5 million for the years ended August 31, 2013 and 2012, respectively. There were no capital expenditures from discontinued operations for the year ended August 31, 2014. | |||||||||||||||||||||||||||||||||
*** Includes asset impairment charges. | |||||||||||||||||||||||||||||||||
**** Excludes total assets from discontinued operations of $7.0 million at August 31, 2014, $50.5 million at August 31, 2013 and $43.4 million at August 31, 2012. | |||||||||||||||||||||||||||||||||
Reconciliations of earnings from continuing operations to adjusted operating profit are provided below: | |||||||||||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Earnings from continuing operations | $ | 102,087 | $ | 74,957 | $ | 210,549 | |||||||||||||||||||||||||||
Income taxes (benefit) | 42,724 | 57,979 | (45,762 | ) | |||||||||||||||||||||||||||||
Interest expense | 77,741 | 69,608 | 69,487 | ||||||||||||||||||||||||||||||
Discounts on sales of accounts receivable | 3,865 | 3,894 | 6,438 | ||||||||||||||||||||||||||||||
Adjusted operating profit from continuing operations | $ | 226,417 | $ | 206,438 | $ | 240,712 | |||||||||||||||||||||||||||
The following represents the Company's external net sales from continuing operations by major product and geographic area: | |||||||||||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Major product information: | |||||||||||||||||||||||||||||||||
Steel products | $ | 4,746,404 | $ | 4,318,072 | $ | 4,699,226 | |||||||||||||||||||||||||||
Ferrous scrap | 659,578 | 646,263 | 763,772 | ||||||||||||||||||||||||||||||
Industrial materials | 659,251 | 928,472 | 1,147,386 | ||||||||||||||||||||||||||||||
Nonferrous scrap | 639,961 | 682,611 | 765,349 | ||||||||||||||||||||||||||||||
Construction materials | 199,154 | 189,046 | 177,827 | ||||||||||||||||||||||||||||||
Nonferrous products | 8,761 | 5,674 | 2,689 | ||||||||||||||||||||||||||||||
Other | 126,850 | 119,437 | 100,126 | ||||||||||||||||||||||||||||||
Net sales | $ | 7,039,959 | $ | 6,889,575 | $ | 7,656,375 | |||||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Geographic area: | |||||||||||||||||||||||||||||||||
United States | $ | 4,510,080 | $ | 4,107,231 | $ | 4,503,786 | |||||||||||||||||||||||||||
Europe | 1,215,150 | 1,108,196 | 1,313,611 | ||||||||||||||||||||||||||||||
Asia | 786,512 | 1,094,458 | 1,018,675 | ||||||||||||||||||||||||||||||
Australia/New Zealand | 425,277 | 488,108 | 617,919 | ||||||||||||||||||||||||||||||
Other | 102,940 | 91,582 | 202,384 | ||||||||||||||||||||||||||||||
Net sales | $ | 7,039,959 | $ | 6,889,575 | $ | 7,656,375 | |||||||||||||||||||||||||||
The following table represents long-lived assets by geographic area: | |||||||||||||||||||||||||||||||||
August 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
United States | $ | 871,326 | $ | 868,643 | $ | 907,009 | |||||||||||||||||||||||||||
Europe | 243,280 | 239,899 | 250,392 | ||||||||||||||||||||||||||||||
Australia/New Zealand | 11,309 | 12,446 | 36,097 | ||||||||||||||||||||||||||||||
Asia | 8,814 | 7,618 | 7,917 | ||||||||||||||||||||||||||||||
Total long-lived assets | $ | 1,134,729 | $ | 1,128,606 | $ | 1,201,415 | |||||||||||||||||||||||||||
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||
NOTE 22. QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
Summarized quarterly financial data for fiscal 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended 2014 | |||||||||||||||||
(in thousands except per share data) | Nov. 30 | Feb. 28 | 31-May | Aug. 31 | |||||||||||||
Net sales* | $ | 1,682,891 | $ | 1,649,098 | $ | 1,804,774 | $ | 1,903,196 | |||||||||
Gross profit* | 181,093 | 145,190 | 183,298 | 186,078 | |||||||||||||
Net earnings attributable to CMC | 45,919 | 11,143 | 23,563 | 34,926 | |||||||||||||
Basic EPS attributable to CMC | 0.39 | 0.09 | 0.2 | 0.29 | |||||||||||||
Diluted EPS attributable to CMC | 0.39 | 0.09 | 0.2 | 0.29 | |||||||||||||
Three Months Ended 2013 | |||||||||||||||||
(in thousands except per share data) | Nov. 30 | Feb. 29 | 31-May | Aug. 31 | |||||||||||||
Net sales* | $ | 1,749,515 | $ | 1,688,665 | $ | 1,752,534 | $ | 1,698,861 | |||||||||
Gross profit* | 186,665 | 139,365 | 175,519 | 160,788 | |||||||||||||
Net earnings attributable to CMC | 49,717 | 4,577 | 18,964 | 4,057 | |||||||||||||
Basic EPS attributable to CMC | 0.43 | 0.04 | 0.16 | 0.03 | |||||||||||||
Diluted EPS attributable to CMC | 0.42 | 0.04 | 0.16 | 0.03 | |||||||||||||
_________________________ | |||||||||||||||||
* Excludes divisions classified as discontinued operations. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Aug. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 23. RELATED PARTY TRANSACTIONS | |
The Company had no significant related party transactions for the years ended August 31, 2014 and 2013. | |
During the first quarter of fiscal 2013, the Company completed the sale of its 11% ownership interest in Trinecke. See Note 10, Businesses Held for Sale, Discontinued Operations and Disposals. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 24. SUBSEQUENT EVENTS | |
In September 2014, the Company made the decision to exit its steel distribution business in Australia. Despite focused efforts and substantial progress to stabilize and improve the results of the Australian distribution business, the Company determined that achieving acceptable financial returns would take additional time and investment. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II b VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended | |||||||||||||||||||||||
Aug. 31, 2014 | ||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ' | |||||||||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ||||||||||||||||||||||||
Additions | Deductions | |||||||||||||||||||||||
Description (in thousands) | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Charged to Costs and Expenses | Charged to Other Accounts | Balance at End of Period | ||||||||||||||||||
Year Ended August 31, 2014 | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 10,042 | 647 | 842 | (1) | (1,544 | ) | (4,079 | ) | (2) | $ | 5,908 | ||||||||||||
Deferred tax valuation allowance | 48,837 | 24,964 | (4,039 | ) | 69,762 | |||||||||||||||||||
Year Ended August 31, 2013 | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 9,480 | 4,980 | 193 | (1) | (550 | ) | (4,061 | ) | (2) | $ | 10,042 | ||||||||||||
Deferred tax valuation allowance | 25,779 | 25,119 | (2,061 | ) | 48,837 | |||||||||||||||||||
Year ended August 31, 2012 | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 16,095 | 2,017 | (3,423 | ) | (1) | (4,480 | ) | (729 | ) | (2) | $ | 9,480 | |||||||||||
Deferred tax valuation allowance | $ | 75,289 | 11,855 | (356 | ) | (61,009 | ) | $ | 25,779 | |||||||||||||||
-1 | Recoveries and translation adjustments. | |||||||||||||||||||||||
-2 | Uncollectable accounts charged to the allowance. For the years ended August 31, 2014, 2013 and 2012, $(1,010), $(1,163) and $(5,864) were reclassified to the fair value of the deferred purchase price under our sale of receivables program, respectively. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||
Aug. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Consolidation | ' | ||||
Consolidation | |||||
The consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries and a variable interest entity for which the Company is the primary beneficiary. Intercompany account balances and transactions have been eliminated. | |||||
Upon inception of an arrangement with a potential variable interest entity, the Company performs an assessment of the contractual agreements that define the ownership structure, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties when determining whether it is the primary beneficiary of the entity. The Company concludes that it is the primary beneficiary and consolidates the variable interest entity if it has both (a) the power to direct the activities that most significantly impact the economic performance of the variable interest entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the variable interest entity that potentially could be significant to the variable interest entity. The Company's assessment of whether it is the primary beneficiary of the variable interest entity is continuously performed. | |||||
The equity method of accounting is used for investments in affiliates in which the Company has the ability to exert significant influence, but does not have effective control. As of August 31, 2014, the Company has no investments accounted for under equity method of accounting. Investments in affiliates which are 20% or less owned are accounted for using the cost method of accounting. | |||||
Use of Estimates | ' | ||||
Use of Estimates | |||||
The preparation of the Company's consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of net sales and expenses during the reporting period. Significant items subject to such estimates and assumptions include the valuation of assets received in acquisitions; the carrying value of long-lived assets, including goodwill; valuation allowances for receivables, inventories and deferred income taxes; share-based compensation; potential litigation claims and settlements; and environmental liabilities. Actual results could significantly differ from these estimates and assumptions. | |||||
Cash and Cash Equivalents | ' | ||||
Cash and Cash Equivalents | |||||
Cash and cash equivalents include cash on deposit and short-term, highly-liquid investments with maturities of three months or less at the date of purchase. The Company had restricted cash of $4.1 million held for operational purposes as of August 31, 2014 and $18.0 million serving as collateral for letters of credit obligations for its Australian subsidiary as of August 31, 2013. Restricted cash balances are included in other current assets on the Company's consolidated balance sheets. | |||||
Revenue Recognition | ' | ||||
Revenue Recognition | |||||
The Company recognizes sales when title passes to the customer either when goods are shipped or when they are delivered based upon the terms of the sale, there is persuasive evidence of an agreement, the price is fixed or determinable and collectability is reasonably assured. When the Company estimates that a firm purchase commitment will result in a loss, the Company accrues the entire loss as soon as it is probable and estimable. The Company accounts for certain fabrication projects based on the percentage of completion accounting method, based primarily on contract cost incurred to date compared to total estimated contract cost. Changes to total estimated contract cost, or loss, if any, are recognized in the period in which they are determined. Sales recognized in excess of amounts billed of $24.2 million and $24.3 million are classified as current assets and are reflected in accounts receivable on the Company's consolidated balances sheets as of August 31, 2014 and 2013, respectively. Shipping and other transportation costs billed to customers are included in net sales and the related costs incurred are reflected in cost of of goods sold in the Company's consolidated statements of operations. | |||||
Allowance for Doubtful Accounts | ' | ||||
Allowance for Doubtful Accounts | |||||
The Company maintains an allowance for doubtful accounts to reflect its estimate of the uncollectability of accounts receivable. These reserves are based on historical trends, current market conditions and customers' financial condition. | |||||
The Company maintains both corporate and divisional credit departments. Credit limits are set for each customer. Some of the Company's divisions use credit insurance or letters of credit to ensure prompt payment in accordance with the terms of sale. Generally, collateral is not required. Approximately 49% of total receivables at August 31, 2014 and 2013 were secured by credit insurance or letters of credit. | |||||
Inventories, net | ' | ||||
Inventories, net | |||||
Inventories are stated at the lower of cost or market. Inventory cost for most U.S. inventories is determined by the last-in, first-out ("LIFO") method. | |||||
During the fourth quarter of fiscal 2014, the Company elected to change the inventory costing method used by its International Mill segment from the first-in, first-out ("FIFO") method to the weighted average cost method. The Company believes the weighted average cost method is preferable because it more closely aligns with the physical flow of inventory. The weighted average cost method is the method used by the Company to monitor the financial results of the International Mill segment for operational and financial planning. Additionally, the information system within the segment calculates inventory at weighted average cost, thus adding an administrative burden to report inventories under the FIFO method. Because the change in accounting principle was immaterial in all prior periods, it was not applied retrospectively. The change did not have a material impact on the Company's consolidated financial statements as of and for the fiscal year ended August 31, 2014. The cost for the remaining international and U.S. inventories is determined by the FIFO method. | |||||
Elements of cost in finished goods inventory in addition to the cost of material include depreciation, amortization, utilities, consumable production supplies, maintenance, production, wages and transportation costs. Additionally, the costs of departments that support production, including materials management and quality control, are allocated to inventory. | |||||
Property, Plant and Equipment | ' | ||||
Property, Plant and Equipment | |||||
Property, plant and equipment are recorded at cost. Maintenance is expensed as incurred. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. Depreciation and amortization is recorded on a straight-line basis over the following estimated useful lives: | |||||
Buildings | 7 | to | 40 | years | |
Land improvements | 3 | to | 25 | years | |
Leasehold improvements | 3 | to | 15 | years | |
Equipment | 3 | to | 25 | years | |
The Company evaluates impairment of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment charges are recorded on property, plant and equipment when the carrying value of the operations related to the asset, or group of assets, exceeds the undiscounted cash flows estimated to be generated by those operations. | |||||
Goodwill and Other Intangible Assets | ' | ||||
Goodwill and Other Intangible Assets | |||||
Goodwill is tested for impairment at the reporting unit level annually in the fourth quarter and whenever events or circumstances indicate that the carrying value may not be recoverable. The Company's reporting units represent an operating segment or one level below an operating segment. | |||||
The Company utilizes the two-step quantitative approach to evaluate goodwill for impairment. The Company performs the first step of the test by comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the Company performs the second step of the test to measure the amount of impairment, if any. In the second step of the test, the Company allocates the fair value of the reporting unit to the assets and liabilities of the reporting unit to determine the implied fair value of the goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied value of goodwill, an impairment loss is recognized. | |||||
The fair value of each reporting unit is estimated using an income approach based on the present value of expected future cash flows and a market approach based on valuation metrics of comparable peer companies and a reconciliation of the Company's estimate of the aggregate fair value of the reporting units to the Company's market capitalization, including a control premium. The determination of fair value involves a number of significant assumptions and estimates including discount rates, volumes, prices, capital expenditures and the impact of current market conditions. These estimates could be materially impacted by adverse changes in these assumptions. | |||||
The annual goodwill impairment analysis in fiscal year 2014 did not result in any impairment charges at any of our reporting units. In fiscal 2013, the Company recorded goodwill impairment charges of $6.4 million, including foreign currency translation gains of $0.6 million, related to its Australian subsidiaries. See Note 7, Goodwill and Other Intangible Assets, for additional details of this impairment. As of August 31, 2014 and 2013, goodwill at one of the Company's reporting units within the Americas Fabrication reporting segment comprised $51.3 million of the Company's total goodwill. Goodwill at the Company's other reporting units was not material at August 31, 2014 and 2013. | |||||
Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment charges are recorded on finite-lived intangible assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. As of August 31, 2014, none of the Company's intangible assets with finite lives were impaired. | |||||
Environmental Costs | ' | ||||
Environmental Costs | |||||
The Company accrues liabilities for environmental investigation and remediation costs when they are both probable and the amount can be reasonably estimated. Environmental costs are based upon estimates regarding the sites for which the Company will be responsible, the scope and cost of work to be performed at each site, the portion of costs that will be shared with other parties and the timing of remediation. Where timing and amounts cannot be reasonably determined, a range is estimated and the lower end of the range is recorded. | |||||
Stock-Based Compensation | ' | ||||
Stock-Based Compensation | |||||
The Company recognizes stock-based equity awards and liability awards at fair value in the financial statements. The fair value of each stock-based equity award is estimated at the date of grant using the Black-Scholes or Monte Carlo pricing model. Total compensation cost of the stock-based equity award is amortized over the requisite service period using the accelerated method of amortization for grants with graded vesting or using the straight-line method for grants with cliff vesting. Stock-based liability awards are measured at fair value at the end of each reporting period and will fluctuate based on the price of CMC common stock and performance relative to the targets. | |||||
Accounts Payable - Documentary Letters of Credit | ' | ||||
Accounts Payable — Documentary Letters of Credit | |||||
In order to facilitate certain trade transactions, the Company utilizes documentary letters of credit to provide assurance of payment to its suppliers. These letters of credit are typically for payment at a future date conditional upon the bank determining the documentation presented to be in strict compliance with all terms and conditions of the letter of credit. Banks issue these letters of credit under uncommitted lines of credit, which are in addition to and separate from the Company's contractually committed revolving credit agreement. In some cases, if the Company's suppliers choose to discount the future dated obligation, the Company may pay the fee associated with the discount. | |||||
Income Taxes | ' | ||||
Income Taxes | |||||
CMC and its U.S. subsidiaries file a consolidated federal income tax return. Deferred income taxes are provided for temporary differences between financial statement and income tax bases of assets and liabilities. The principal differences are described in Note 14, Income Tax. Benefits from income tax credits are reflected currently in earnings. The Company intends to indefinitely reinvest all undistributed earnings of non-U.S. subsidiaries. The Company records income tax positions based on a more likely than not threshold that the tax positions will be sustained on examination by the taxing authorities having full knowledge of all relevant information. | |||||
Foreign Currencies | ' | ||||
Foreign Currencies | |||||
The functional currencies of the Company's Australian, German, Polish, United Kingdom and certain Chinese, Singaporean and Thai operations are their local currencies. The Company's remaining international subsidiaries' functional currency is the U.S. dollar. Translation adjustments are reported as a component of accumulated other comprehensive income (loss). Transaction gains (losses) from transactions denominated in currencies other than the functional currencies were $9.0 million, $(5.8) million and $2.2 million for the years ended August 31, 2014, 2013 and 2012, respectively, and are included in selling, general and administrative expenses in the Company's consolidated statements of operations. | |||||
Derivative Financial Instruments | ' | ||||
Derivative Financial Instruments | |||||
The Company records derivative instruments on the balance sheet as assets or liabilities, measured at fair value. Gains or losses from the changes in the values of the derivative instruments and hedged items are recorded in the statements of operations, or are deferred if they are designated for hedge accounting and are highly effective in achieving offsetting changes in fair values or cash flows of the hedged items during the term of the hedge. | |||||
Fair Value | ' | ||||
Fair Value | |||||
The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Level 1 represents unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 represents quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly. Level 3 represents valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||
Recent Accounting Pronouncements | ' | ||||
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 U.S. GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosures 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 August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern and to provide disclosures in certain circumstances. The new guidance was issued to reduce diversity in the timing and content of footnote disclosures. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016. The Company does not expect this guidance to have a material impact on its consolidated financial statements. | |||||
In August 2014, the FASB issued guidance providing a measurement alternative to the existing fair value measurement guidance for reporting entities that consolidate a collateralized financing entity in which 1) the financial assets and financial liabilities are measured at fair value except for those incidental financial assets and financial liabilities with their carrying values that approximate fair values and 2) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. When the measurement alternative is elected, the financial assets and liabilities of a collateralized financing entity will be measured using the more observable of the fair value of the financial assets and the fair value of the financial liabilities. This guidance is effective for public business entities for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. The Company does not expect this guidance to have a material impact on its consolidated financial statements. | |||||
In June 2014, the FASB issued guidance requiring entities to account for a performance target as a performance condition if the target affects vesting and could be achieved after the requisite service period. The new guidance did not introduce additional disclosure requirements and was issued to resolve diversity in practice. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015. The Company currently accounts for such performance targets in a manner consistent with the new guidance and does not expect this guidance to have a material impact on its consolidated financial statements. | |||||
In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016. Entities have the option to adopt this guidance either retrospectively or through a modified retrospective transition method. This new standard will supersede existing revenue guidance and affect the Company's revenue recognition process and the presentations or disclosures of the Company's consolidated financial statements and footnotes. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. | |||||
In April 2014, the FASB issued guidance changing the requirements for reporting discontinued operations if the disposal of a component of an entity, or a group of components of an entity, represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. The guidance requires expanded disclosures for discontinued operations and also requires entities to disclose the pre-tax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. The new guidance is effective prospectively for fiscal years, and interim periods within those years, beginning on or after December 15, 2014. The guidance will affect the Company's current practice of assessing discontinued operations and the presentation and disclosure in 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 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. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||
Aug. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Estimated useful lives for depreciation and amortization | ' | ||||
Depreciation and amortization is recorded on a straight-line basis over the following estimated useful lives: | |||||
Buildings | 7 | to | 40 | years | |
Land improvements | 3 | to | 25 | years | |
Leasehold improvements | 3 | to | 15 | years | |
Equipment | 3 | to | 25 | years | |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
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, was comprised of the following: | |||||||||||||||||
(in thousands) | Foreign Currency Translation | Unrealized Gain (Loss) on Derivatives | Defined Benefit Obligation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Balance at September 1, 2011 | $ | 58,937 | $ | 4,677 | $ | (4,141 | ) | $ | 59,473 | ||||||||
Other comprehensive loss before reclassifications | (71,631 | ) | (1,545 | ) | (410 | ) | (73,586 | ) | |||||||||
Amounts reclassified from AOCI | (4,675 | ) | 578 | 74 | (4,023 | ) | |||||||||||
Net other comprehensive loss | (76,306 | ) | (967 | ) | (336 | ) | (77,609 | ) | |||||||||
Balance at August 31, 2012 | (17,369 | ) | 3,710 | (4,477 | ) | (18,136 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | (10,108 | ) | 221 | 1,147 | (8,740 | ) | |||||||||||
Amounts reclassified from AOCI | — | (337 | ) | 37 | (300 | ) | |||||||||||
Net other comprehensive income (loss) | (10,108 | ) | (116 | ) | 1,184 | (9,040 | ) | ||||||||||
Balance at August 31, 2013 | (27,477 | ) | 3,594 | (3,293 | ) | (27,176 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 7,586 | (1,848 | ) | (489 | ) | 5,249 | |||||||||||
Amounts reclassified from AOCI | — | 1,268 | 1,150 | 2,418 | |||||||||||||
Net other comprehensive income (loss) | 7,586 | (580 | ) | 661 | 7,667 | ||||||||||||
Balance at August 31, 2014 | $ | (19,891 | ) | $ | 3,014 | $ | (2,632 | ) | $ | (19,509 | ) | ||||||
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: | |||||||||||||||||
Year Ended August 31, | |||||||||||||||||
Components of AOCI (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||||
Foreign currency translation adjustments and other: | |||||||||||||||||
Reclassification for translation gain realized upon sale of investments in foreign entities | SG&A expenses | — | — | $ | 4,675 | ||||||||||||
Unrealized gain (loss) on derivatives: | |||||||||||||||||
Commodity | Cost of goods sold | $ | (160 | ) | $ | (260 | ) | $ | 43 | ||||||||
Foreign exchange | Net sales | (232 | ) | 60 | (1,072 | ) | |||||||||||
Foreign exchange | Cost of goods sold | (1,698 | ) | — | — | ||||||||||||
Foreign exchange | SG&A expenses | 53 | 48 | (516 | ) | ||||||||||||
Interest rate | Interest expense | 532 | 617 | 835 | |||||||||||||
(1,505 | ) | 465 | (710 | ) | |||||||||||||
Income tax effect | Income taxes (expense) benefit | 237 | (128 | ) | 132 | ||||||||||||
Net of income taxes | $ | (1,268 | ) | $ | 337 | $ | (578 | ) | |||||||||
Defined benefit obligation: | |||||||||||||||||
Amortization of net gain (loss) | SG&A expenses | $ | (1,604 | ) | $ | (252 | ) | $ | (228 | ) | |||||||
Amortization of prior service credit (cost) | SG&A expenses | 289 | 208 | 17 | |||||||||||||
Adjustment from plan changes | SG&A expenses | — | — | 125 | |||||||||||||
(1,315 | ) | (44 | ) | (86 | ) | ||||||||||||
Income tax effect | Income taxes (expense) benefit | 165 | 7 | 12 | |||||||||||||
Net of income taxes | $ | (1,150 | ) | $ | (37 | ) | $ | (74 | ) | ||||||||
Amounts in parentheses reduce earnings. |
SALES_OF_ACCOUNTS_RECEIVABLE_A
SALES OF ACCOUNTS RECEIVABLE (Activity of the Deferred Purchase Price Receivables) (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Transfers and Servicing [Abstract] | ' | ||||||||||||||||
Activity of the deferred purchase price receivables | ' | ||||||||||||||||
The following tables summarize the activity of the deferred purchase price receivables for the U.S. and international sale of accounts receivable programs: | |||||||||||||||||
(in thousands) | Total | U.S. | Australia | Europe | |||||||||||||
Balance at September 1, 2011 | $ | 604,003 | $ | 510,136 | $ | 80,821 | $ | 13,046 | |||||||||
Transfers of accounts receivable | 5,558,246 | 4,388,366 | 509,691 | 660,189 | |||||||||||||
Collections | (5,646,768 | ) | (4,501,583 | ) | (520,439 | ) | (624,746 | ) | |||||||||
Balance at August 31, 2012 | $ | 515,481 | $ | 396,919 | $ | 70,073 | $ | 48,489 | |||||||||
Transfers of accounts receivable | 4,423,952 | 3,570,922 | 408,530 | 444,500 | |||||||||||||
Collections | (4,486,181 | ) | (3,609,019 | ) | (413,607 | ) | (463,555 | ) | |||||||||
Balance at August 31, 2013 | $ | 453,252 | $ | 358,822 | $ | 64,996 | $ | 29,434 | |||||||||
Transfers of accounts receivable | 4,243,471 | 3,347,103 | 487,583 | 408,785 | |||||||||||||
Collections | (4,239,242 | ) | (3,376,128 | ) | (446,196 | ) | (416,918 | ) | |||||||||
Program termination | (72,312 | ) | — | (72,312 | ) | — | |||||||||||
Balance at August 31, 2014 | $ | 385,169 | $ | 329,797 | $ | 34,071 | $ | 21,301 | |||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||
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 at September 1, 2012 | $ | 7,267 | $ | 295 | $ | 57,144 | $ | 2,685 | $ | 9,506 | $ | 76,897 | |||||||||||||
Impairment | — | — | — | — | (6,331 | ) | (6,331 | ) | |||||||||||||||||
Translation | — | — | — | 70 | (1,057 | ) | (987 | ) | |||||||||||||||||
Balance at August 31, 2013 | $ | 7,267 | $ | 295 | $ | 57,144 | $ | 2,755 | $ | 2,118 | $ | 69,579 | |||||||||||||
Acquisition | — | 4,675 | — | — | — | 4,675 | |||||||||||||||||||
Translation | — | — | — | 21 | 44 | 65 | |||||||||||||||||||
Balance at August 31, 2014 | $ | 7,267 | $ | 4,970 | $ | 57,144 | $ | 2,776 | $ | 2,162 | $ | 74,319 | |||||||||||||
Intangible assets subject to amortization | ' | ||||||||||||||||||||||||
The following intangible assets subject to amortization are included in other noncurrent assets on the Company's consolidated balance sheets: | |||||||||||||||||||||||||
August 31, 2014 | August 31, 2013 | ||||||||||||||||||||||||
(in thousands) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Carrying Amount | Carrying Amount | ||||||||||||||||||||||||
Customer base | $ | 38,078 | $ | 25,989 | $ | 12,089 | $ | 33,625 | $ | 21,408 | $ | 12,217 | |||||||||||||
Favorable land leases | 11,661 | 2,075 | 9,586 | 6,257 | 612 | 5,645 | |||||||||||||||||||
Brand name | 3,216 | 1,452 | 1,764 | 2,942 | 946 | 1,996 | |||||||||||||||||||
Non-competition agreements | 779 | 40 | 739 | — | — | — | |||||||||||||||||||
Other | 101 | 45 | 56 | 101 | 38 | 63 | |||||||||||||||||||
Total | $ | 53,835 | $ | 29,601 | $ | 24,234 | $ | 42,925 | $ | 23,004 | $ | 19,921 | |||||||||||||
Estimated future amortization expense of intangible assets | ' | ||||||||||||||||||||||||
Estimated amounts of amortization expense for the next five years are as follows: | |||||||||||||||||||||||||
Year Ended August 31, | (in thousands) | ||||||||||||||||||||||||
2015 | $ | 6,007 | |||||||||||||||||||||||
2016 | 4,387 | ||||||||||||||||||||||||
2017 | 820 | ||||||||||||||||||||||||
2018 | 1,470 | ||||||||||||||||||||||||
2019 | 1,533 | ||||||||||||||||||||||||
BUSINESSES_HELD_FOR_SALE_DISCO1
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
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 were as follows. | |||||||||||||
(in thousands) | 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 | 10,459 | ||||||||||||
Assets of businesses held for sale | $ | 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: | |||||||||||||
Year Ended August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Revenue | $ | 17,298 | $ | 157,780 | $ | 202,632 | |||||||
Earnings (loss) before income taxes | 22,009 | 3,672 | (11,906 | ) | |||||||||
CREDIT_ARRANGEMENTS_Tables
CREDIT ARRANGEMENTS (Tables) | 12 Months Ended | ||||||||||
Aug. 31, 2014 | |||||||||||
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: | |||||||||||
Weighted Average | August 31, | ||||||||||
(in thousands) | Interest Rate as of August 31, 2014 | 2014 | 2013 | ||||||||
$400 million notes at 6.50% due July 2017 | 5.74% | $ | 408,546 | $ | 411,518 | ||||||
$500 million notes at 7.35% due August 2018 | 6.40% | 518,305 | 522,930 | ||||||||
$330 million notes at 4.875% due May 2023 | 4.88% | 330,000 | 330,000 | ||||||||
Other, including equipment notes | 32,196 | 19,594 | |||||||||
1,289,047 | 1,284,042 | ||||||||||
Less current maturities | 8,005 | 5,228 | |||||||||
$ | 1,281,042 | $ | 1,278,814 | ||||||||
Scheduled maturities of the Company's long-term debt | ' | ||||||||||
The scheduled maturities of the Company's long-term debt are as follows: | |||||||||||
Year Ending August 31, | (in thousands) | ||||||||||
2015 | $ | 8,005 | |||||||||
2016 | 7,274 | ||||||||||
2017 | 406,748 | ||||||||||
2018 | 505,776 | ||||||||||
2019 | 3,338 | ||||||||||
Thereafter | 331,055 | ||||||||||
Total excluding deferred gain of interest rate swaps | 1,262,196 | ||||||||||
Deferred gain of interest rate swaps | 26,851 | ||||||||||
Total long-term debt including current maturities | $ | 1,289,047 | |||||||||
DERIVATIVES_AND_RISK_MANAGEMEN1
DERIVATIVES AND RISK MANAGEMENT (Tables) | 12 Months Ended | ||||||||||||||
Aug. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||
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: | |||||||||||||||
Year Ended August 31, | |||||||||||||||
Derivatives Not Designated as Hedging Instruments (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||
Commodity | Cost of goods sold | $ | 2,504 | $ | 2,456 | $ | 4,496 | ||||||||
Foreign exchange | Net sales | 473 | — | (199 | ) | ||||||||||
Foreign exchange | Cost of goods sold | (1,078 | ) | — | (537 | ) | |||||||||
Foreign exchange | SG&A expenses | (4,135 | ) | 5,089 | (872 | ) | |||||||||
Other | Cost of goods sold | — | 9 | — | |||||||||||
Gain (loss) before income taxes | $ | (2,236 | ) | $ | 7,554 | $ | 2,888 | ||||||||
Derivatives Designated as Fair Value Hedging Instruments | ' | ||||||||||||||
Derivatives Designated as Fair Value | Year Ended August 31, | ||||||||||||||
Hedging Instruments (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||
Foreign exchange | Net sales | $ | 93 | $ | (151 | ) | $ | — | |||||||
Foreign exchange | Cost of goods sold | (1,465 | ) | 2,241 | — | ||||||||||
Foreign exchange | SG&A expenses | — | — | 383 | |||||||||||
Interest rate | Interest expense | — | — | 10,561 | |||||||||||
Gain (loss) before income taxes | $ | (1,372 | ) | $ | 2,090 | $ | 10,944 | ||||||||
Hedged Items Designated as Fair Value Hedging Instruments | ' | ||||||||||||||
Hedged Items Designated as Fair Value | Year Ended August 31, | ||||||||||||||
Hedging Instruments (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||
Foreign exchange | Net sales | $ | (91 | ) | $ | 153 | $ | — | |||||||
Foreign exchange | Cost of goods sold | 1,469 | (2,241 | ) | — | ||||||||||
Foreign exchange | SG&A expenses | — | — | (383 | ) | ||||||||||
Interest rate | Interest expense | — | — | (10,561 | ) | ||||||||||
Gain (loss) before income taxes | $ | 1,378 | $ | (2,088 | ) | $ | (10,944 | ) | |||||||
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) | August 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Commodity | $ | (54 | ) | $ | (218 | ) | $ | — | |||||||
Foreign exchange | (1,794 | ) | 439 | (1,545 | ) | ||||||||||
Gain (loss), net of income taxes | $ | (1,848 | ) | $ | 221 | $ | (1,545 | ) | |||||||
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 | Year Ended August 31, | ||||||||||||||
Hedging Instruments Reclassified from | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) (in thousands) | Location | 2014 | 2013 | 2012 | |||||||||||
Commodity | Cost of goods sold | $ | (104 | ) | $ | (169 | ) | $ | 27 | ||||||
Foreign exchange | Net sales | (213 | ) | 46 | (826 | ) | |||||||||
Foreign exchange | Cost of goods sold | (1,349 | ) | 20 | — | ||||||||||
Foreign exchange | SG&A expenses | 52 | 39 | (300 | ) | ||||||||||
Interest rate | Interest expense | 346 | 401 | 521 | |||||||||||
Gain (loss), net of income taxes | $ | (1,268 | ) | $ | 337 | $ | (578 | ) | |||||||
Derivative Assets | ' | ||||||||||||||
The fair value of the Company's derivative instruments on the consolidated balance sheets was as follows: | |||||||||||||||
Derivative Assets (in thousands) | August 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Commodity — designated for hedge accounting | $ | 42 | $ | — | |||||||||||
Commodity — not designated for hedge accounting | 869 | 1,066 | |||||||||||||
Foreign exchange — designated for hedge accounting | 136 | 1,626 | |||||||||||||
Foreign exchange — not designated for hedge accounting | 1,853 | 1,238 | |||||||||||||
Derivative assets (other current assets)* | $ | 2,900 | $ | 3,930 | |||||||||||
Derivative Liabilities | ' | ||||||||||||||
Derivative Liabilities (in thousands) | August 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Commodity — designated for hedge accounting | $ | 6 | $ | 129 | |||||||||||
Commodity — not designated for hedge accounting | 162 | 1,268 | |||||||||||||
Foreign exchange — designated for hedge accounting | 325 | 432 | |||||||||||||
Foreign exchange — not designated for hedge accounting | 1,010 | 1,738 | |||||||||||||
Derivative liabilities (accrued expenses and other payables)* | $ | 1,503 | $ | 3,567 | |||||||||||
_________________________ | |||||||||||||||
* Derivative assets and liabilities do not include the hedged items designated as fair value hedges. |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||
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) | August 31, 2014 | 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) | $ | 200,487 | $ | 200,487 | $ | — | $ | — | |||||||||||
Commodity derivative assets (2) | 911 | 911 | — | — | |||||||||||||||
Foreign exchange derivative assets (2) | 1,989 | — | 1,989 | — | |||||||||||||||
Liabilities: | |||||||||||||||||||
Commodity derivative liabilities (2) | 168 | 162 | 6 | — | |||||||||||||||
Foreign exchange derivative liabilities (2) | 1,335 | — | 1,335 | — | |||||||||||||||
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 derivative instruments and the classification of the assets and liabilities is included in Note 12, Derivatives and Risk Management. | |||||||||||||||||||
Financial assets and liabilities that are 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: | |||||||||||||||||||
August 31, 2014 | 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 | $ | 408,546 | $ | 438,200 | $ | 411,518 | $ | 443,646 | ||||||||||
$500 million notes at 7.35% due August 2018 (1) | Level 2 | 518,305 | 567,560 | 522,930 | 570,429 | ||||||||||||||
$330 million notes at 4.875% due May 2023 (1) | Level 2 | 330,000 | 325,050 | 330,000 | 298,650 | ||||||||||||||
_________________ | |||||||||||||||||||
(1) The fair value of the notes is determined based on indicated market values. |
INCOME_TAX_Tables
INCOME TAX (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of earnings from continuing operations before income taxes (benefit) | ' | ||||||||||||
The components of earnings from continuing operations before income taxes (benefit) are as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 108,882 | $ | 147,204 | $ | 116,400 | |||||||
Foreign | 35,929 | (14,268 | ) | 48,387 | |||||||||
Total | $ | 144,811 | $ | 132,936 | $ | 164,787 | |||||||
Income taxes (benefit) included in the consolidated statements of operations | ' | ||||||||||||
The income taxes (benefit) included in the consolidated statements of operations are as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
United States | $ | 11,798 | $ | 849 | $ | 1,560 | |||||||
Foreign | 2,965 | 1,970 | 419 | ||||||||||
State and local | 4,157 | 1,815 | 3,411 | ||||||||||
Current taxes | $ | 18,920 | $ | 4,634 | $ | 5,390 | |||||||
Deferred: | |||||||||||||
United States | $ | 30,427 | $ | 45,908 | $ | (65,710 | ) | ||||||
Foreign | 4,457 | 4,980 | 7,130 | ||||||||||
State and local | (2,536 | ) | 3,767 | (1,419 | ) | ||||||||
Deferred taxes (benefit) | $ | 32,348 | $ | 54,655 | $ | (59,999 | ) | ||||||
Total income taxes (benefit) on income | $ | 51,268 | $ | 59,289 | $ | (54,609 | ) | ||||||
Income taxes (benefit) on discontinued operations | 8,544 | 1,310 | (8,847 | ) | |||||||||
Income taxes (benefit) on continuing operations | $ | 42,724 | $ | 57,979 | $ | (45,762 | ) | ||||||
Reconciliation of the federal statutory rate to effective tax rate from continuing operations | ' | ||||||||||||
A reconciliation of the federal statutory rate to the Company's effective income tax rate from continuing operations is as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income tax expense (benefit) at statutory rate of 35% | $ | 50,684 | $ | 46,528 | $ | 57,675 | |||||||
State and local taxes | 88 | 3,460 | 4,596 | ||||||||||
Section 199 manufacturing deduction | (1,199 | ) | — | — | |||||||||
Foreign rate differential | (5,940 | ) | (3,295 | ) | (9,909 | ) | |||||||
Change in valuation allowance | 22,079 | 14,264 | 10,033 | ||||||||||
Deferred compensation | (4,164 | ) | (2,890 | ) | (1,094 | ) | |||||||
Nontaxable foreign interest | (16,506 | ) | (5,445 | ) | — | ||||||||
Disposition of foreign subsidiaries | — | 6,292 | (102,104 | ) | |||||||||
Australian reorganization | — | (7,245 | ) | — | |||||||||
Research and experimentation tax credits | — | — | (11,500 | ) | |||||||||
Other | (2,318 | ) | 6,310 | 6,541 | |||||||||
Income tax expense (benefit) on continuing operations | $ | 42,724 | $ | 57,979 | $ | (45,762 | ) | ||||||
Effective income tax rates from continuing operations | 29.5 | % | 43.6 | % | (27.8 | )% | |||||||
Tax effects of significant temporary differences giving rise to deferred tax assets and liabilities | ' | ||||||||||||
The income tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows: | |||||||||||||
August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Deferred compensation and employee benefits | $ | 51,956 | $ | 56,504 | |||||||||
Net operating losses and credits | 68,736 | 99,200 | |||||||||||
Reserves and other accrued expenses | 45,246 | 34,375 | |||||||||||
Allowance for doubtful accounts | 3,760 | 5,020 | |||||||||||
Intangibles | 6,707 | 8,153 | |||||||||||
Other | 8,766 | 12,879 | |||||||||||
Total deferred tax assets | 185,171 | 216,131 | |||||||||||
Valuation allowance for deferred tax assets | (69,762 | ) | (48,837 | ) | |||||||||
Deferred tax assets, net | $ | 115,409 | $ | 167,294 | |||||||||
Deferred tax liabilities: | |||||||||||||
Fixed assets | $ | 99,016 | $ | 113,547 | |||||||||
Inventory | 8,320 | 10,219 | |||||||||||
Other | 4,066 | 5,354 | |||||||||||
Total deferred tax liabilities | $ | 111,402 | $ | 129,120 | |||||||||
Deferred tax assets, net of deferred tax liabilities | $ | 4,007 | $ | 38,174 | |||||||||
Reconciliation of the beginning and ending amounts of unrecognized tax benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized income tax benefits is as follows: | |||||||||||||
August 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Balance at September 1 | $ | 28,551 | $ | 27,384 | $ | 10,762 | |||||||
Change in tax positions of current year | — | 1,255 | — | ||||||||||
Change for tax positions of prior years | (1,202 | ) | — | 18,006 | |||||||||
Reductions due to settlements with taxing authorities | — | (88 | ) | (600 | ) | ||||||||
Reductions due to statute of limitations lapse | — | — | (784 | ) | |||||||||
Balance at August 31 | $ | 27,349 | $ | 28,551 | $ | 27,384 | |||||||
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Total awards granted | ' | ||||||||||||||||||||
The following table summarizes the total awards granted: | |||||||||||||||||||||
Stock | Restricted Stock | Performance | |||||||||||||||||||
Options/SARs | Awards/Units | Awards | |||||||||||||||||||
2014 Grants | — | 1,191,544 | 450,233 | ||||||||||||||||||
2013 Grants | 244,403 | 1,149,696 | 640,002 | ||||||||||||||||||
2012 Grants | 927,312 | 829,001 | 693,472 | ||||||||||||||||||
Restricted stock units and performance stock units, excluding the cash component | ' | ||||||||||||||||||||
Information for restricted stock units and performance stock units, excluding the cash component, is as follows: | |||||||||||||||||||||
Number | Weighted Average | ||||||||||||||||||||
Grant-Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Outstanding as of September 1, 2011 | 2,394,140 | $ | 13.44 | ||||||||||||||||||
Granted | 489,118 | 10.68 | |||||||||||||||||||
Vested | (773,947 | ) | 13.9 | ||||||||||||||||||
Forfeited | (425,739 | ) | 10.56 | ||||||||||||||||||
Outstanding as of August 31, 2012 | 1,683,572 | 13.16 | |||||||||||||||||||
Granted | 1,159,451 | 13.6 | |||||||||||||||||||
Vested | (537,303 | ) | 13.35 | ||||||||||||||||||
Forfeited | (398,302 | ) | 12.22 | ||||||||||||||||||
Outstanding as of August 31, 2013 | 1,907,418 | 13.57 | |||||||||||||||||||
Granted | 1,275,355 | 16.89 | |||||||||||||||||||
Vested | (737,870 | ) | 13.55 | ||||||||||||||||||
Forfeited | (364,323 | ) | 14.94 | ||||||||||||||||||
Outstanding as of August 31, 2014 | 2,080,580 | $ | 15.37 | ||||||||||||||||||
Valuation assumptions for stock appreciation rights and stock options | ' | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Risk-free interest rate | 0.41 | % | 0.43 | % | |||||||||||||||||
Expected life, years | 3 | 3 | |||||||||||||||||||
Expected volatility | 43 | % | 59 | % | |||||||||||||||||
Expected dividend yield | 3.4 | % | 4.14 | % | |||||||||||||||||
Weighted average grant-date fair value per share | $ | 3.38 | $ | 3.67 | |||||||||||||||||
Combined activity for stock appreciation rights and stock options, excluding the cash component | ' | ||||||||||||||||||||
Combined activity for the Company's stock appreciation rights and stock options, excluding the cash component, is as follows: | |||||||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||
Exercise | Remaining | ||||||||||||||||||||
Price | Contractual Life | ||||||||||||||||||||
(Years) | |||||||||||||||||||||
Outstanding as of September 1, 2011 | 2,807,498 | $ | 27.45 | ||||||||||||||||||
Granted | 828,463 | 11.63 | |||||||||||||||||||
Exercised | (361,478 | ) | 12.34 | ||||||||||||||||||
Forfeited/Expired | (343,991 | ) | 27.78 | ||||||||||||||||||
Outstanding as of August 31, 2012 | 2,930,492 | $ | 24.81 | 3.3 | $ | 1,104,590 | |||||||||||||||
Granted | 185,004 | 14.25 | |||||||||||||||||||
Exercised | (4,105 | ) | 11.6 | ||||||||||||||||||
Forfeited/Expired | (457,961 | ) | 24.91 | ||||||||||||||||||
Outstanding as of August 31, 2013 | 2,653,430 | $ | 24.07 | 2.8 | $ | 2,867,175 | |||||||||||||||
Granted | — | — | |||||||||||||||||||
Exercised | (223,473 | ) | 11.84 | ||||||||||||||||||
Forfeited/Expired | (992,926 | ) | 32.93 | ||||||||||||||||||
Outstanding as of August 31, 2014 | 1,437,031 | $ | 19.85 | 2.7 | $ | 4,384,668 | |||||||||||||||
Exercisable at August 31, 2014 | 1,018,397 | $ | 22.95 | 2.1 | $ | 2,307,463 | |||||||||||||||
Remaining unvested stock appreciation rights and stock options expected to vest | 397,703 | $ | 12.32 | ||||||||||||||||||
Stock appreciation rights and stock options | ' | ||||||||||||||||||||
Information related to stock appreciation rights and stock options as of August 31, 2014 is summarized below: | |||||||||||||||||||||
Stock Appreciation Rights and Stock Options Outstanding | Stock Appreciation Rights and Stock Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life (In Years) | Weighted | Number Exercisable | Weighted Average Remaining Contractual Life (In Years) | Weighted | |||||||||||||||
Average | Average | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Price | Price | ||||||||||||||||||||
$11.00 | - | 14.68 | 868,245 | 3.7 | $ | 12.3 | 456,081 | 3.2 | $ | 12.34 | |||||||||||
$16.54 | - | 16.83 | 121,706 | 3.5 | $ | 16.81 | 115,236 | 3.4 | $ | 16.82 | |||||||||||
$32.82 | - | 35.38 | 447,080 | 0.7 | $ | 35.36 | 447,080 | 0.7 | $ | 35.36 | |||||||||||
1,437,031 | 2.7 | $ | 19.85 | 1,018,397 | 2.1 | $ | 22.95 | ||||||||||||||
Yearly activity of the stock purchase plan | ' | ||||||||||||||||||||
Yearly activity of the stock purchase plan is as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares subscribed | 228,780 | 281,460 | 299,210 | ||||||||||||||||||
Price per share | $ | 16.97 | $ | 12.61 | $ | 11.85 | |||||||||||||||
Shares purchased | 221,570 | 211,580 | 198,300 | ||||||||||||||||||
Price per share | $ | 12.61 | $ | 11.85 | $ | 11.76 | |||||||||||||||
Shares available for future issuance | 3,955,314 | ||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Aug. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Minimum lease commitments payable for noncancelable operating leases | ' | ||||
Minimum lease commitments payable by the Company for noncancelable operating leases are as follows: | |||||
Year Ending August 31, | (in thousands) | ||||
2015 | $ | 33,754 | |||
2016 | 26,300 | ||||
2017 | 21,170 | ||||
2018 | 14,509 | ||||
2019 | 11,327 | ||||
Thereafter | 28,131 | ||||
Total | $ | 135,191 | |||
EARNINGS_PER_SHARE_ATTRIBUTABL1
EARNINGS PER SHARE ATTRIBUTABLE TO CMC (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Calculations of basic and diluted earnings per share from continuing operations | ' | ||||||||||||
The calculations of basic and diluted earnings per share from continuing operations were as follows: | |||||||||||||
August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Earnings from continuing operations | $ | 102,087 | $ | 74,957 | $ | 210,549 | |||||||
Basic earnings per share: | |||||||||||||
Shares outstanding for basic earnings per share | 117,496,270 | 116,677,836 | 115,861,986 | ||||||||||
Basic earnings per share from continuing operations attributable to CMC | $ | 0.87 | $ | 0.64 | $ | 1.82 | |||||||
Diluted earnings per share: | |||||||||||||
Shares outstanding for basic earnings per share | 117,496,270 | 116,677,836 | 115,861,986 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock-based incentive/purchase plans | 1,110,836 | 875,116 | 921,174 | ||||||||||
Shares outstanding for diluted earnings per share | 118,607,106 | 117,552,952 | 116,783,160 | ||||||||||
Diluted earnings per share from continuing operations attributable to CMC | $ | 0.86 | $ | 0.64 | $ | 1.8 | |||||||
Anti-dilutive shares not included above | 679,916 | 1,492,206 | 2,804,492 | ||||||||||
_______________________ | |||||||||||||
All stock options and stock appreciation rights expire during fiscal 2020. |
ACCRUED_EXPENSES_AND_OTHER_PAY1
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Significant accrued expenses and other payables | ' | ||||||||
Significant accrued expenses and other payables were as follows: | |||||||||
August 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Salaries and incentive compensation | $ | 115,840 | $ | 77,849 | |||||
Advance billings on contracts | 41,645 | 53,089 | |||||||
Taxes other than income taxes | 39,998 | 46,480 | |||||||
Insurance | 25,239 | 24,911 | |||||||
Inventory | 17,181 | 11,311 | |||||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
Americas | International | ||||||||||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Corporate | Eliminations | Continuing Operations | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 1,176,907 | $ | 1,198,249 | $ | 1,523,573 | $ | 822,224 | $ | 2,304,723 | $ | 14,283 | $ | — | $ | 7,039,959 | |||||||||||||||||
Intersegment sales | 190,163 | 793,085 | 13,912 | 969 | 21,789 | — | (1,019,918 | ) | — | ||||||||||||||||||||||||
Net sales | 1,367,070 | 1,991,334 | 1,537,485 | 823,193 | 2,326,512 | 14,283 | (1,019,918 | ) | 7,039,959 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | (3,222 | ) | 247,703 | 6,196 | 30,632 | 17,757 | (72,347 | ) | (302 | ) | 226,417 | ||||||||||||||||||||||
Interest expense* | 2,700 | 7,059 | 10,222 | 4,608 | 8,900 | 44,252 | — | 77,741 | |||||||||||||||||||||||||
Capital expenditures** | 16,771 | 31,781 | 13,798 | 30,770 | 1,722 | 6,907 | — | 101,749 | |||||||||||||||||||||||||
Depreciation and amortization*** | 16,424 | 45,392 | 19,192 | 32,776 | 4,150 | 21,243 | — | 139,177 | |||||||||||||||||||||||||
Total assets**** | 296,564 | 647,437 | 691,765 | 466,449 | 949,016 | 1,100,995 | (470,716 | ) | 3,681,510 | ||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 1,225,604 | $ | 1,060,337 | $ | 1,427,785 | $ | 819,889 | $ | 2,344,128 | $ | 11,832 | $ | — | $ | 6,889,575 | |||||||||||||||||
Intersegment sales | 166,145 | 759,183 | 14,906 | 6,155 | 11,444 | — | (957,833 | ) | — | ||||||||||||||||||||||||
Net sales | 1,391,749 | 1,819,520 | 1,442,691 | 826,044 | 2,355,572 | 11,832 | (957,833 | ) | 6,889,575 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | 3,170 | 204,333 | 28,033 | 890 | 35,617 | (66,453 | ) | 848 | 206,438 | ||||||||||||||||||||||||
Interest expense* | 9 | (101 | ) | 83 | 992 | 4,369 | 64,256 | — | 69,608 | ||||||||||||||||||||||||
Capital expenditures** | 21,261 | 37,216 | 5,605 | 15,155 | 1,015 | 7,552 | — | 87,804 | |||||||||||||||||||||||||
Depreciation and amortization*** | 13,453 | 42,925 | 22,302 | 33,238 | 17,988 | 21,096 | — | 151,002 | |||||||||||||||||||||||||
Total assets**** | 309,599 | 598,478 | 631,510 | 487,613 | 838,413 | 1,075,594 | (496,946 | ) | 3,444,261 | ||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 1,418,717 | $ | 1,206,651 | $ | 1,366,944 | $ | 955,730 | $ | 2,700,300 | $ | 8,033 | $ | — | $ | 7,656,375 | |||||||||||||||||
Intersegment sales | 187,444 | 777,070 | 14,694 | 77,627 | 27,019 | — | (1,083,854 | ) | — | ||||||||||||||||||||||||
Net sales | 1,606,161 | 1,983,721 | 1,381,638 | 1,033,357 | 2,727,319 | 8,033 | (1,083,854 | ) | 7,656,375 | ||||||||||||||||||||||||
Adjusted operating profit (loss) | 39,446 | 235,918 | (15,697 | ) | 23,044 | 47,287 | (83,035 | ) | (6,251 | ) | 240,712 | ||||||||||||||||||||||
Interest expense* | 1,933 | 12,995 | 10,809 | 10,090 | 6,548 | 27,112 | — | 69,487 | |||||||||||||||||||||||||
Capital expenditures** | 40,329 | 38,140 | 4,389 | 14,016 | 3,314 | 8,197 | — | 108,385 | |||||||||||||||||||||||||
Depreciation and amortization*** | 13,260 | 40,704 | 22,056 | 32,306 | 5,821 | 20,295 | — | 134,442 | |||||||||||||||||||||||||
Total assets**** | 285,136 | 615,070 | 629,970 | 529,160 | 870,933 | 961,654 | (494,053 | ) | 3,397,870 | ||||||||||||||||||||||||
________________________ | |||||||||||||||||||||||||||||||||
* Includes intercompany interest expense (income) in the segments and is all eliminated within Corporate. | |||||||||||||||||||||||||||||||||
** Excludes capital expenditures from discontinued operations of $1.2 million and $5.5 million for the years ended August 31, 2013 and 2012, respectively. There were no capital expenditures from discontinued operations for the year ended August 31, 2014. | |||||||||||||||||||||||||||||||||
*** Includes asset impairment charges. | |||||||||||||||||||||||||||||||||
**** Excludes total assets from discontinued operations of $7.0 million at August 31, 2014, $50.5 million at August 31, 2013 and $43.4 million at August 31, 2012. | |||||||||||||||||||||||||||||||||
Reconciliations of earnings from continuing operations to adjusted operating profit | ' | ||||||||||||||||||||||||||||||||
Reconciliations of earnings from continuing operations to adjusted operating profit are provided below: | |||||||||||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Earnings from continuing operations | $ | 102,087 | $ | 74,957 | $ | 210,549 | |||||||||||||||||||||||||||
Income taxes (benefit) | 42,724 | 57,979 | (45,762 | ) | |||||||||||||||||||||||||||||
Interest expense | 77,741 | 69,608 | 69,487 | ||||||||||||||||||||||||||||||
Discounts on sales of accounts receivable | 3,865 | 3,894 | 6,438 | ||||||||||||||||||||||||||||||
Adjusted operating profit from continuing operations | $ | 226,417 | $ | 206,438 | $ | 240,712 | |||||||||||||||||||||||||||
External net sales from continuing operations by major product | ' | ||||||||||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Major product information: | |||||||||||||||||||||||||||||||||
Steel products | $ | 4,746,404 | $ | 4,318,072 | $ | 4,699,226 | |||||||||||||||||||||||||||
Ferrous scrap | 659,578 | 646,263 | 763,772 | ||||||||||||||||||||||||||||||
Industrial materials | 659,251 | 928,472 | 1,147,386 | ||||||||||||||||||||||||||||||
Nonferrous scrap | 639,961 | 682,611 | 765,349 | ||||||||||||||||||||||||||||||
Construction materials | 199,154 | 189,046 | 177,827 | ||||||||||||||||||||||||||||||
Nonferrous products | 8,761 | 5,674 | 2,689 | ||||||||||||||||||||||||||||||
Other | 126,850 | 119,437 | 100,126 | ||||||||||||||||||||||||||||||
Net sales | $ | 7,039,959 | $ | 6,889,575 | $ | 7,656,375 | |||||||||||||||||||||||||||
External net sales from continuing operations by geographic area | ' | ||||||||||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Geographic area: | |||||||||||||||||||||||||||||||||
United States | $ | 4,510,080 | $ | 4,107,231 | $ | 4,503,786 | |||||||||||||||||||||||||||
Europe | 1,215,150 | 1,108,196 | 1,313,611 | ||||||||||||||||||||||||||||||
Asia | 786,512 | 1,094,458 | 1,018,675 | ||||||||||||||||||||||||||||||
Australia/New Zealand | 425,277 | 488,108 | 617,919 | ||||||||||||||||||||||||||||||
Other | 102,940 | 91,582 | 202,384 | ||||||||||||||||||||||||||||||
Net sales | $ | 7,039,959 | $ | 6,889,575 | $ | 7,656,375 | |||||||||||||||||||||||||||
Long-lived assets by geographic area | ' | ||||||||||||||||||||||||||||||||
The following table represents long-lived assets by geographic area: | |||||||||||||||||||||||||||||||||
August 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
United States | $ | 871,326 | $ | 868,643 | $ | 907,009 | |||||||||||||||||||||||||||
Europe | 243,280 | 239,899 | 250,392 | ||||||||||||||||||||||||||||||
Australia/New Zealand | 11,309 | 12,446 | 36,097 | ||||||||||||||||||||||||||||||
Asia | 8,814 | 7,618 | 7,917 | ||||||||||||||||||||||||||||||
Total long-lived assets | $ | 1,134,729 | $ | 1,128,606 | $ | 1,201,415 | |||||||||||||||||||||||||||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Summarized quarterly financial data | ' | ||||||||||||||||
Summarized quarterly financial data for fiscal 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended 2014 | |||||||||||||||||
(in thousands except per share data) | Nov. 30 | Feb. 28 | 31-May | Aug. 31 | |||||||||||||
Net sales* | $ | 1,682,891 | $ | 1,649,098 | $ | 1,804,774 | $ | 1,903,196 | |||||||||
Gross profit* | 181,093 | 145,190 | 183,298 | 186,078 | |||||||||||||
Net earnings attributable to CMC | 45,919 | 11,143 | 23,563 | 34,926 | |||||||||||||
Basic EPS attributable to CMC | 0.39 | 0.09 | 0.2 | 0.29 | |||||||||||||
Diluted EPS attributable to CMC | 0.39 | 0.09 | 0.2 | 0.29 | |||||||||||||
Three Months Ended 2013 | |||||||||||||||||
(in thousands except per share data) | Nov. 30 | Feb. 29 | 31-May | Aug. 31 | |||||||||||||
Net sales* | $ | 1,749,515 | $ | 1,688,665 | $ | 1,752,534 | $ | 1,698,861 | |||||||||
Gross profit* | 186,665 | 139,365 | 175,519 | 160,788 | |||||||||||||
Net earnings attributable to CMC | 49,717 | 4,577 | 18,964 | 4,057 | |||||||||||||
Basic EPS attributable to CMC | 0.43 | 0.04 | 0.16 | 0.03 | |||||||||||||
Diluted EPS attributable to CMC | 0.42 | 0.04 | 0.16 | 0.03 | |||||||||||||
_________________________ | |||||||||||||||||
* Excludes divisions classified as discontinued operations. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions. |
NATURE_OF_OPERATIONS_Narrative
NATURE OF OPERATIONS (Narrative) (Details) | 12 Months Ended |
Aug. 31, 2014 | |
Components | |
segments | |
Number of business segments | 5 |
Number of geographic divisions | 2 |
CMC Americas Division | ' |
Number of business segments | 3 |
CMC International Division | ' |
Number of business segments | 2 |
United States | ' |
Number of divisions | 2 |
Singapore | ' |
Number of recycling facilities | 1 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
levels | |||
Equity method investment | $0 | ' | ' |
Restricted cash | 4,100,000 | 18,000,000 | ' |
Goodwill impairment charges | 0 | 6,331,000 | 0 |
Goodwill | 74,319,000 | 69,579,000 | 76,897,000 |
Impairment of intangible assets with finite lives | 0 | ' | ' |
Transaction gains (losses) | 9,000,000 | -5,800,000 | 2,200,000 |
Number of fair value hierarchy | 3 | ' | ' |
One reporting unit within Americas Fabrication | ' | ' | ' |
Goodwill | 51,300,000 | 51,300,000 | ' |
Australia | ' | ' | ' |
Goodwill impairment charges | ' | 6,400,000 | ' |
Foreign currency translation gain related to goodwill impairment | ' | 600,000 | ' |
Receivables secured by credit insurance or letters of credit | ' | ' | ' |
Percentage of accounts receivable secured by credit insurance or letters of credit | 49.00% | 49.00% | ' |
Certain fabrication projects | ' | ' | ' |
Sales recognized in excess of amounts billed | $24,200,000 | $24,300,000 | ' |
Maximum | ' | ' | ' |
Cost method investment ownership percentage | 20.00% | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Property, Plant and Equipment) (Details) | 12 Months Ended |
Aug. 31, 2014 | |
Buildings | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '7 years |
Buildings | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '40 years |
Land improvements | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '3 years |
Land improvements | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '25 years |
Leasehold improvements | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '3 years |
Leasehold improvements | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '15 years |
Equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '3 years |
Equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '25 years |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI by Components) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance | ($27,176) | ($18,136) | $59,473 |
Other comprehensive income (loss) before reclassifications | 5,249 | -8,740 | -73,586 |
Amounts reclassified from AOCI | 2,418 | -300 | -4,023 |
Other comprehensive income (loss) | 7,667 | -9,040 | -77,609 |
Balance | -19,509 | -27,176 | -18,136 |
Foreign Currency Translation | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance | -27,477 | -17,369 | 58,937 |
Other comprehensive income (loss) before reclassifications | 7,586 | -10,108 | -71,631 |
Amounts reclassified from AOCI | 0 | 0 | -4,675 |
Other comprehensive income (loss) | 7,586 | -10,108 | -76,306 |
Balance | -19,891 | -27,477 | -17,369 |
Unrealized Gain (Loss) on Derivatives | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance | 3,594 | 3,710 | 4,677 |
Other comprehensive income (loss) before reclassifications | -1,848 | 221 | -1,545 |
Amounts reclassified from AOCI | 1,268 | -337 | 578 |
Other comprehensive income (loss) | -580 | -116 | -967 |
Balance | 3,014 | 3,594 | 3,710 |
Defined Benefit Obligation | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance | -3,293 | -4,477 | -4,141 |
Other comprehensive income (loss) before reclassifications | -489 | 1,147 | -410 |
Amounts reclassified from AOCI | 1,150 | 37 | 74 |
Other comprehensive income (loss) | 661 | 1,184 | -336 |
Balance | ($2,632) | ($3,293) | ($4,477) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassification out of accumulated other comprehensive income (loss)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Unrealized gain (loss) on derivatives: | ' | ' | ' |
Income taxes (expense) benefit | $237 | ($128) | $132 |
Net of income taxes | -1,268 | 337 | -578 |
Foreign currency translation adjustments and other | SG&A expenses | ' | ' | ' |
Foreign currency translation adjustments and other: | ' | ' | ' |
Reclassification for translation gain realized upon sale of investments in foreign entities | 0 | 0 | 4,675 |
Unrealized gain (loss) on derivatives | ' | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' | ' |
Reclassification adjustments from AOCI on derivatives, before Tax | -1,505 | 465 | -710 |
Income taxes (expense) benefit | 237 | -128 | 132 |
Net of income taxes | -1,268 | 337 | -578 |
Unrealized gain (loss) on derivatives | Commodity | Cost of goods sold | ' | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' | ' |
Reclassification adjustments from AOCI on derivatives, before Tax | -160 | -260 | 43 |
Unrealized gain (loss) on derivatives | Foreign exchange | Cost of goods sold | ' | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' | ' |
Reclassification adjustments from AOCI on derivatives, before Tax | -1,698 | 0 | 0 |
Unrealized gain (loss) on derivatives | Foreign exchange | Net sales | ' | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' | ' |
Reclassification adjustments from AOCI on derivatives, before Tax | -232 | 60 | -1,072 |
Unrealized gain (loss) on derivatives | Foreign exchange | SG&A expenses | ' | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' | ' |
Reclassification adjustments from AOCI on derivatives, before Tax | 53 | 48 | -516 |
Unrealized gain (loss) on derivatives | Interest rate | Interest expense | ' | ' | ' |
Unrealized gain (loss) on derivatives: | ' | ' | ' |
Reclassification adjustments from AOCI on derivatives, before Tax | 532 | 617 | 835 |
Defined benefit obligation | ' | ' | ' |
Defined benefit obligation: | ' | ' | ' |
Reclassification adjustments from AOCI, pension and other postretirement benefit plans, before tax | -1,315 | -44 | -86 |
Income taxes (expense) benefit | 165 | 7 | 12 |
Net of income taxes | -1,150 | -37 | -74 |
Defined benefit obligation | SG&A expenses | ' | ' | ' |
Defined benefit obligation: | ' | ' | ' |
Amortization of net gain (loss) | -1,604 | -252 | -228 |
Amortization of prior service credit (cost) | 289 | 208 | 17 |
Adjustment from plan changes | $0 | $0 | $125 |
ACQUISITIONS_Narrative_Details
ACQUISITIONS (Narrative) (Details) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
entities | entities | |
Business Combinations [Abstract] | ' | ' |
Number of business acquisitions | 0 | 0 |
SALES_OF_ACCOUNTS_RECEIVABLE_N
SALES OF ACCOUNTS RECEIVABLE (Narrative) (Details) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | |
USD ($) | USD ($) | USD ($) | U.S. | U.S. | European program | Australian program | European and Australian programs | European and Australian programs | |
USD ($) | USD ($) | AUD | USD ($) | USD ($) | |||||
entities | |||||||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current advance limit for accounts receivable sold | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | ' |
Number of financial institutions | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Maximum advance limit for accounts receivable sold | ' | ' | ' | 300,000,000 | ' | ' | 75,000,000 | ' | ' |
Trade accounts receivable sold | ' | ' | ' | 389,600,000 | 358,800,000 | ' | ' | 147,300,000 | 121,200,000 |
Advance payment received on sale of account receivable | ' | ' | ' | 55,000,000 | 0 | ' | ' | 90,500,000 | 24,500,000 |
Advances, maximum percentage of eligible receivables | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' |
Percentage of eligible receivables sold | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Proceed from sales of receivables | 688,200,000 | 1,000,000,000 | 1,900,000,000 | ' | ' | ' | ' | ' | ' |
Cash payment to owners of receivables | 567,200,000 | 1,100,000,000 | 1,900,000,000 | ' | ' | ' | ' | ' | ' |
Discount on domestic and international sales of trade accounts receivables | $3,900,000 | $3,900,000 | $6,400,000 | ' | ' | ' | ' | ' | ' |
SALES_OF_ACCOUNTS_RECEIVABLE_A1
SALES OF ACCOUNTS RECEIVABLE (Activity of the Deferred Purchase Price Receivables) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' |
Ending balance | $1,028,425 | $989,694 | ' |
Deferred purchase price receivables | ' | ' | ' |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' |
Beginning balance | 453,252 | 515,481 | 604,003 |
Transfers of accounts receivable | 4,243,471 | 4,423,952 | 5,558,246 |
Collections | -4,239,242 | -4,486,181 | -5,646,768 |
Program termInation | -72,312 | ' | ' |
Ending balance | 385,169 | 453,252 | 515,481 |
Deferred purchase price receivables | U.S. | ' | ' | ' |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' |
Beginning balance | 358,822 | 396,919 | 510,136 |
Transfers of accounts receivable | 3,347,103 | 3,570,922 | 4,388,366 |
Collections | -3,376,128 | -3,609,019 | -4,501,583 |
Program termInation | 0 | ' | ' |
Ending balance | 329,797 | 358,822 | 396,919 |
Deferred purchase price receivables | Australia | ' | ' | ' |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' |
Beginning balance | 64,996 | 70,073 | 80,821 |
Transfers of accounts receivable | 487,583 | 408,530 | 509,691 |
Collections | -446,196 | -413,607 | -520,439 |
Program termInation | -72,312 | ' | ' |
Ending balance | 34,071 | 64,996 | 70,073 |
Deferred purchase price receivables | Europe | ' | ' | ' |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' |
Beginning balance | 29,434 | 48,489 | 13,046 |
Transfers of accounts receivable | 408,785 | 444,500 | 660,189 |
Collections | -416,918 | -463,555 | -624,746 |
Program termInation | 0 | ' | ' |
Ending balance | $21,301 | $29,434 | $48,489 |
INVENTORIES_NET_Narrative_Deta
INVENTORIES, NET (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2014 |
Inventory Disclosure [Abstract] | ' | ' |
Percentage of total net inventories were valued at LIFO | 43.00% | 44.00% |
LIFO inventory reserves | $185.50 | $198.80 |
Raw materials | 66.7 | 84.3 |
Effect of LIFO inventory liquidation on income | $3.50 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Goodwill impairment charges | $0 | $6,331,000 | $0 |
Goodwill | 74,319,000 | 69,579,000 | 76,897,000 |
Accumulated goodwill impairment charges | 9,800,000 | 9,500,000 | ' |
Amortization expense for intangible assets | 5,100,000 | 4,900,000 | 5,900,000 |
Favorable land leases | ' | ' | ' |
Weighted average remaining useful lives | '51 years | ' | ' |
Intangible assets excluding favorable land leases | ' | ' | ' |
Weighted average remaining useful lives | '4 years | ' | ' |
Australia | ' | ' | ' |
Goodwill impairment charges | ' | 6,400,000 | ' |
Foreign currency translation gain related to goodwill impairment | ' | 600,000 | ' |
One reporting unit within Americas Fabrication | ' | ' | ' |
Goodwill | $51,300,000 | $51,300,000 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Changes in the Carrying Amount of Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | $69,579 | $76,897 | ' |
Impairment | 0 | -6,331 | 0 |
Translation | 65 | -987 | ' |
Acquisition | 4,675 | ' | ' |
Goodwill, ending balance | 74,319 | 69,579 | 76,897 |
Americas Recycling | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | 7,267 | 7,267 | ' |
Impairment | ' | 0 | ' |
Translation | 0 | 0 | ' |
Acquisition | 0 | ' | ' |
Goodwill, ending balance | 7,267 | 7,267 | ' |
Americas Mills | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | 295 | 295 | ' |
Impairment | ' | 0 | ' |
Translation | 0 | 0 | ' |
Acquisition | 4,675 | ' | ' |
Goodwill, ending balance | 4,970 | 295 | ' |
Americas Fabrication | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | 57,144 | 57,144 | ' |
Impairment | ' | 0 | ' |
Translation | 0 | 0 | ' |
Acquisition | 0 | ' | ' |
Goodwill, ending balance | 57,144 | 57,144 | ' |
International Mill | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | 2,755 | 2,685 | ' |
Impairment | ' | 0 | ' |
Translation | 21 | 70 | ' |
Acquisition | 0 | ' | ' |
Goodwill, ending balance | 2,776 | 2,755 | ' |
International Marketing and Distribution | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | 2,118 | 9,506 | ' |
Impairment | ' | -6,331 | ' |
Translation | 44 | -1,057 | ' |
Acquisition | 0 | ' | ' |
Goodwill, ending balance | $2,162 | $2,118 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $53,835 | $42,925 |
Accumulated Amortization | 29,601 | 23,004 |
Net | 24,234 | 19,921 |
Customer base | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 38,078 | 33,625 |
Accumulated Amortization | 25,989 | 21,408 |
Net | 12,089 | 12,217 |
Favorable land leases | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 11,661 | 6,257 |
Accumulated Amortization | 2,075 | 612 |
Net | 9,586 | 5,645 |
Brand name | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 3,216 | 2,942 |
Accumulated Amortization | 1,452 | 946 |
Net | 1,764 | 1,996 |
Non-competition agreements | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 779 | 0 |
Accumulated Amortization | 40 | 0 |
Net | 739 | 0 |
Other | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 101 | 101 |
Accumulated Amortization | 45 | 38 |
Net | $56 | $63 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Estimated Future Amortization Expense) (Details) (USD $) | Aug. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
2015 | $6,007 |
2016 | 4,387 |
2017 | 820 |
2018 | 1,470 |
2019 | $1,533 |
LONGLIVED_ASSET_IMPAIRMENT_AND1
LONG-LIVED ASSET IMPAIRMENT AND FACILITY CLOSURE COSTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Asset impairment and facility closure costs | $3,498,000 | $17,270,000 | $3,316,000 |
International Marketing and Distribution | ' | ' | ' |
Plant, property and equipment | ' | 20,400,000 | ' |
Australia | ' | ' | ' |
Non-recurring impairment charges | ' | 6,300,000 | ' |
Other operating units [Member] | ' | ' | ' |
Asset impairment and facility closure costs | ' | $4,600,000 | ' |
SEVERANCE_Narrative_Details
SEVERANCE (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Restructuring and Related Activities [Abstract] | ' | ' | ' |
Severance costs | $3.70 | $6.10 | $25.60 |
Liability related to termination benefits | $0.90 | $2.80 | ' |
BUSINESSES_HELD_FOR_SALE_DISCO2
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2014 | Nov. 30, 2012 | Aug. 31, 2012 | Nov. 30, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | |
Howell | Howell | Howell | Howell | CMCS | CMCS | Trinecke Zelezarny | Trinecke Zelezarny | Fabrication shop in Germany | Previously joist and deck operations | ||||
properties | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets of businesses held for sale | $0 | $43,168,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance expense | 3,700,000 | 6,100,000 | 25,600,000 | ' | ' | ' | ' | ' | 18,000,000 | ' | ' | ' | ' |
Pre-tax gain | ' | ' | ' | ' | ' | ' | 23,800,000 | ' | 13,800,000 | ' | ' | ' | ' |
Business divestiture disposal price | ' | ' | ' | 1,100,000 | ' | 58,500,000 | ' | 3,900,000 | ' | 29,000,000 | ' | 11,300,000 | ' |
Escrow receivable | ' | ' | ' | 3,200,000 | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' |
Working capital adjustment | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership before transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' | ' |
Pretax gain on disposal, continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26,100,000 | ($3,800,000) | ' |
Number of Properties Sold During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
BUSINESSES_HELD_FOR_SALE_DISCO3
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS (Components of Assets and Liabilities for Businesses Held for Sale) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Accounts receivable | ' | $20,313 |
Inventories, net | ' | 8,713 |
Other current assets | ' | 3,683 |
Property, plant and equipment, net of accumulated depreciation and amortization | ' | 10,459 |
Assets of businesses held for sale | 0 | 43,168 |
Liabilities: | ' | ' |
Accounts payable-trade | ' | 7,615 |
Accrued expenses and other payables | ' | 3,251 |
Liabilities of businesses held for sale | ' | $10,866 |
BUSINESSES_HELD_FOR_SALE_DISCO4
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS (Financial Information for Discontinued Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Earnings (loss) before taxes | $22,009 | $3,672 | ($11,906) |
Discontinued operations | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | 17,298 | 157,780 | 202,632 |
Earnings (loss) before taxes | $22,009 | $3,672 | ($11,906) |
CREDIT_ARRANGEMENTS_Narrative_
CREDIT ARRANGEMENTS (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | 31-May-13 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | |
CMCP | Revolving credit agreement | Stand-by letters of credit | $330 million notes at 4.875% due May 2023 | $330 million notes at 4.875% due May 2023 | Change of control triggering event | $200 million notes at 5.625% due November 2013 | $200 million notes at 5.625% due November 2013 | $500 million notes at 7.35% due August 2018 | $500 million notes at 7.35% due August 2018 | $400 million notes at 6.50% due July 2017 | $400 million notes at 6.50% due July 2017 | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility current borrowing capacity | ' | ' | ' | $64,000,000 | $350,000,000 | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maturity date | ' | ' | ' | ' | 26-Jun-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility expired borrowing capacity | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stand by letters of credit outstanding amount | ' | ' | ' | ' | ' | 28,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum interest coverage ratio | ' | ' | ' | ' | 250.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum debt to capitalization ratio | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum liquidity required | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual interest coverage ratio | ' | ' | ' | ' | 494.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual debt to capitalization ratio | ' | ' | ' | ' | 48.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, issuance date | ' | ' | ' | ' | 26-Jun-14 | ' | 20-May-13 | ' | ' | ' | ' | 4-Aug-08 | ' | 17-Jul-07 | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | 330,000,000 | ' | ' | ' | 200,000,000 | 500,000,000 | 500,000,000 | 400,000,000 | 400,000,000 |
Debt instrument, interest rate, stated percentage | ' | ' | ' | ' | ' | ' | 4.88% | ' | ' | ' | 5.63% | 7.35% | 7.35% | 6.50% | 6.50% |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | 15-May-23 | ' | ' | ' | ' | 15-Aug-18 | ' | 15-Jul-17 | ' |
proceeds from debt, net of underwriting discounts and issuance costs | ' | ' | ' | ' | ' | ' | ' | 325,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt extinguishment total cash outflow | ' | ' | ' | ' | ' | ' | ' | ' | ' | 205,300,000 | ' | ' | ' | ' | ' |
Redemption purchase price to principal amount, percentage | ' | ' | ' | ' | ' | ' | 100.00% | ' | 101.00% | ' | ' | ' | ' | ' | ' |
Loss on debt extinguishment | 0 | 4,758,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.40% | ' | 5.74% | ' |
Net proceeds from termination of interest rate swaps | 0 | 0 | 52,733,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred gain of interest rate swaps | 26,800,000 | 34,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of interest rate swaps termination gain | 7,597,000 | 12,470,000 | 5,815,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual total borrowing | ' | ' | ' | 111,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual total payments | ' | ' | ' | 111,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest costs capitalized | ' | 1,000,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest paid | $85,600,000 | $82,500,000 | $74,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CREDIT_ARRANGEMENTS_Longterm_D
CREDIT ARRANGEMENTS (Long-term Debt) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | 31-May-13 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | |||
$200 million notes at 5.625% due November 2013 | $400 million notes at 6.50% due July 2017 | $400 million notes at 6.50% due July 2017 | $500 million notes at 7.35% due August 2018 | $500 million notes at 7.35% due August 2018 | $330 million notes at 4.875% due May 2023 | $330 million notes at 4.875% due May 2023 | Other, including equipment notes | Other, including equipment notes | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt instrument, face amount | ' | ' | $200,000,000 | $400,000,000 | $400,000,000 | $500,000,000 | $500,000,000 | $330,000,000 | ' | ' | ' | |||
Debt instrument, interest rate, stated percentage | ' | ' | 5.63% | 6.50% | 6.50% | 7.35% | 7.35% | 4.88% | ' | ' | ' | |||
Debt instrument, maturity date | ' | ' | ' | 'July 2017 | 'July 2017 | 'August 2018 | 'August 2018 | 'May 15, 2023 | ' | ' | ' | |||
Weighted average interest rate | ' | ' | ' | 5.74% | ' | 6.40% | ' | 4.88% | ' | ' | ' | |||
Total long-term debt including current maturities | 1,289,047,000 | 1,284,042,000 | ' | 408,546,000 | [1] | 411,518,000 | 518,305,000 | [1] | 522,930,000 | 330,000,000 | [1] | 330,000,000 | 32,196,000 | 19,594,000 |
Current maturities of long-term debt | 8,005,000 | 5,228,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Long-term debt | $1,281,042,000 | $1,278,814,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | (1) The fair value of the notes is determined based on indicated market values. |
CREDIT_ARRANGEMENTS_CREDIT_ARR
CREDIT ARRANGEMENTS CREDIT ARRANGEMENTS (Scheduled Maturities of Long-term Debt) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' |
2015 | $8,005 | $5,228 |
2016 | 7,274 | ' |
2017 | 406,748 | ' |
2018 | 505,776 | ' |
2019 | 3,338 | ' |
Thereafter | 331,055 | ' |
Total excluding deferred gain of interest rate swaps | 1,262,196 | ' |
Deferred gain of interest rate swaps | 26,851 | ' |
Total long-term debt including current maturities | $1,289,047 | $1,284,042 |
DERIVATIVES_AND_RISK_MANAGEMEN2
DERIVATIVES AND RISK MANAGEMENT (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 |
Foreign exchange | Foreign exchange | Commodity | Commodity | ||
Derivative [Line Items] | ' | ' | ' | ' | ' |
Notional value of contract commitments | ' | $406.60 | $331 | $59.60 | $49.30 |
Notional value of interest rate swap terminated | 800 | ' | ' | ' | ' |
Reduction in interest expense related to interest rate swap | $6.50 | ' | ' | ' | ' |
DERIVATIVES_AND_RISK_MANAGEMEN3
DERIVATIVES AND RISK MANAGEMENT (Derivatives Not Designated as Hedging Instruments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives not designated as hedging instruments | ($2,236) | $7,554 | $2,888 |
Commodity | Cost of goods sold | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives not designated as hedging instruments | 2,504 | 2,456 | 4,496 |
Foreign exchange | Cost of goods sold | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives not designated as hedging instruments | -1,078 | 0 | -537 |
Foreign exchange | Net sales | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives not designated as hedging instruments | 473 | 0 | -199 |
Foreign exchange | SG&A expenses | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives not designated as hedging instruments | -4,135 | 5,089 | -872 |
Other | Cost of goods sold | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives not designated as hedging instruments | $0 | $9 | $0 |
DERIVATIVES_AND_RISK_MANAGEMEN4
DERIVATIVES AND RISK MANAGEMENT (Derivatives Designated as Fair Value Hedging Instruments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives designated as fair value hedging instruments | ($1,372) | $2,090 | $10,944 |
Foreign exchange | Net sales | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives designated as fair value hedging instruments | 93 | -151 | 0 |
Foreign exchange | Cost of goods sold | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives designated as fair value hedging instruments | -1,465 | 2,241 | 0 |
Foreign exchange | SG&A expenses | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives designated as fair value hedging instruments | 0 | 0 | 383 |
Interest rate | Interest expense | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for derivatives designated as fair value hedging instruments | $0 | $0 | $10,561 |
DERIVATIVES_AND_RISK_MANAGEMEN5
DERIVATIVES AND RISK MANAGEMENT (Hedged Items Designated as Fair Value Hedging Instruments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for hedged items designated as fair value hedging instruments | $1,378 | ($2,088) | ($10,944) |
Foreign exchange | Net sales | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for hedged items designated as fair value hedging instruments | -91 | 153 | 0 |
Foreign exchange | Cost of goods sold | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for hedged items designated as fair value hedging instruments | 1,469 | -2,241 | 0 |
Foreign exchange | SG&A expenses | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for hedged items designated as fair value hedging instruments | 0 | 0 | -383 |
Interest rate | Interest expense | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) before taxes for hedged items designated as fair value hedging instruments | $0 | $0 | ($10,561) |
DERIVATIVES_AND_RISK_MANAGEMEN6
DERIVATIVES AND RISK MANAGEMENT (Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain, (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments recognized in AOCI | ($1,848) | $221 | ($1,545) |
Commodity | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain, (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments recognized in AOCI | -54 | -218 | 0 |
Foreign exchange | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain, (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments recognized in AOCI | ($1,794) | $439 | ($1,545) |
DERIVATIVES_AND_RISK_MANAGEMEN7
DERIVATIVES AND RISK MANAGEMENT (Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments reclassified from AOCI | ($1,268) | $337 | ($578) |
Commodity | Cost of goods sold | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments reclassified from AOCI | -104 | -169 | 27 |
Foreign exchange | Cost of goods sold | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments reclassified from AOCI | -1,349 | 20 | 0 |
Foreign exchange | Net sales | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments reclassified from AOCI | -213 | 46 | -826 |
Foreign exchange | SG&A expenses | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments reclassified from AOCI | 52 | 39 | -300 |
Interest rate | Interest expense | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss), net of taxes for effective portion of derivatives designated as cash flow hedging instruments reclassified from AOCI | $346 | $401 | $521 |
DERIVATIVES_AND_RISK_MANAGEMEN8
DERIVATIVES AND RISK MANAGEMENT (Derivative Assets) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets) | $2,900 | [1] | $3,930 | [1] |
Commodity | Designated | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets) | 42 | 0 | ||
Commodity | Not designated | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets) | 869 | 1,066 | ||
Foreign exchange | Designated | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets) | 136 | 1,626 | ||
Foreign exchange | Not designated | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets (other current assets) | $1,853 | $1,238 | ||
[1] | * Derivative assets and liabilities do not include the hedged items designated as fair value hedges. |
DERIVATIVES_AND_RISK_MANAGEMEN9
DERIVATIVES AND RISK MANAGEMENT (Derivative Liabilities) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses and other payables) | $1,503 | [1] | $3,567 | [1] |
Commodity | Designated | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses and other payables) | 6 | 129 | ||
Commodity | Not designated | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses and other payables) | 162 | 1,268 | ||
Foreign exchange | Designated | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses and other payables) | 325 | 432 | ||
Foreign exchange | Not designated | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liabilities (accrued expenses and other payables) | $1,010 | $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 $) | 12 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 |
levels | International Marketing and Distribution | Australia | Level 3 | |
Fair value, measurements, nonrecurring | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ' | ' |
Number of fair value hierarchy | 3 | ' | ' | ' |
Plant, property and equipment | ' | $20.40 | ' | $3.90 |
Non-recurring impairment charges | ' | ' | $6.30 | ' |
FAIR_VALUE_Financial_Assets_an
FAIR VALUE (Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | $2,900 | [1] | $3,930 | [1] |
Fair value, measurements, recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market investments | 200,487 | [2] | 236,727 | [2] |
Fair value, measurements, recurring | Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market investments | 200,487 | [2] | 236,727 | [2] |
Fair value, measurements, recurring | Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market investments | 0 | [2] | 0 | [2] |
Fair value, measurements, recurring | Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market investments | 0 | [2] | 0 | [2] |
Fair value, measurements, recurring | Commodity | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 911 | [3] | 1,066 | [3] |
Derivative liabilities | 168 | [3] | 1,397 | [3] |
Fair value, measurements, recurring | Commodity | Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 911 | [3] | 1,066 | [3] |
Derivative liabilities | 162 | [3] | 1,268 | [3] |
Fair value, measurements, recurring | Commodity | Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 0 | [3] | 0 | [3] |
Derivative liabilities | 6 | [3] | 129 | [3] |
Fair value, measurements, recurring | Commodity | Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 0 | [3] | 0 | [3] |
Fair value, measurements, recurring | Foreign exchange | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 1,989 | [3] | 2,864 | [3] |
Derivative liabilities | 1,335 | [3] | 2,170 | [3] |
Fair value, measurements, recurring | Foreign exchange | Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 0 | [3] | 0 | [3] |
Derivative liabilities | 0 | [3] | 0 | [3] |
Fair value, measurements, recurring | Foreign exchange | Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 1,989 | [3] | 2,864 | [3] |
Derivative liabilities | 1,335 | [3] | 2,170 | [3] |
Fair value, measurements, recurring | Foreign exchange | Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative assets | 0 | [3] | 0 | [3] |
Derivative liabilities | $0 | [3] | $0 | [3] |
[1] | * Derivative assets and liabilities do not include the hedged items designated as fair value hedges. | |||
[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. | |||
[3] | (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 derivative instruments and the classification of the assets and liabilities is included in Note 12, Derivatives and Risk Management. |
FAIR_VALUE_FAIR_VALUE_Financia
FAIR VALUE FAIR VALUE (Financial Assets and Liabilities Not Required to Be Measured at Fair Value) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | $1,289,047 | $1,284,042 | ||
$400 million notes at 6.50% due July 2017 | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | 408,546 | [1] | 411,518 | |
$400 million notes at 6.50% due July 2017 | Level 2 | Carrying Value | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | 408,546 | 411,518 | [1] | |
$400 million notes at 6.50% due July 2017 | Level 2 | Fair Value | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | 438,200 | [1] | 443,646 | [1] |
$500 million notes at 7.35% due August 2018 | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | 518,305 | [1] | 522,930 | |
$500 million notes at 7.35% due August 2018 | Level 2 | Carrying Value | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | 518,305 | 522,930 | [1] | |
$500 million notes at 7.35% due August 2018 | Level 2 | Fair Value | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | 567,560 | [1] | 570,429 | [1] |
$330 million notes at 4.875% due May 2023 | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | 330,000 | [1] | 330,000 | |
$330 million notes at 4.875% due May 2023 | Level 2 | Carrying Value | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | 330,000 | 330,000 | [1] | |
$330 million notes at 4.875% due May 2023 | Level 2 | Fair Value | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Financial liabilities | $325,050 | [1] | $298,650 | [1] |
[1] | (1) The fair value of the notes is determined based on indicated market values. |
INCOME_TAX_Narrative_Details
INCOME TAX (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2012 | |
Forecast | State | Foreign | Valuation allowance, net operating loss carryforwards | Valuation allowance, net operating loss carryforwards | Poland | Croatian subsidiary | |||||
Effective tax rate from discontinued operations | 38.80% | 35.70% | 74.30% | ' | ' | ' | ' | ' | ' | ' | ' |
Effective income tax rates from continuing operations | 29.50% | 43.60% | -27.80% | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory tax rate | 35.00% | 35.00% | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.00% | ' |
Change in valuation allowance | $22,079,000 | $14,264,000 | $10,033,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Tax loss related to investment in subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 291,000,000 |
Tax benefit related to investment in subsidiary | 0 | -6,292,000 | 102,104,000 | ' | ' | ' | ' | ' | ' | ' | 102,100,000 |
Net Income tax payments (refunds) | 11,800,000 | -7,600,000 | 17,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating losses carry forward | ' | ' | ' | ' | ' | 307,000,000 | 178,800,000 | ' | ' | ' | ' |
Valuation allowance against deferred tax assets | ' | ' | ' | ' | ' | ' | ' | 20,900,000 | 23,100,000 | ' | ' |
Indefinitely reinvested foreign earnings | 488,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits | 27,349,000 | 28,551,000 | 27,384,000 | 10,762,000 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | 12,000,000 | 13,300,000 | 10,100,000 | ' | 2,700,000 | ' | ' | ' | ' | ' | ' |
Accrued interest and penalties on unrecognized tax benefits | 3,400,000 | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Possible unrecognized tax benefit reversal in next 12 months | $16,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAX_Components_of_Earni
INCOME TAX (Components of Earnings from Continuing Operations before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States | $108,882 | $147,204 | $116,400 |
Foreign | 35,929 | -14,268 | 48,387 |
Earnings from continuing operations before income taxes | $144,811 | $132,936 | $164,787 |
INCOME_TAX_Income_Taxes_Includ
INCOME TAX (Income Taxes Included in the Consolidated Statements of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Current: | ' | ' | ' |
United States | $11,798 | $849 | $1,560 |
Foreign | 2,965 | 1,970 | 419 |
State and local | 4,157 | 1,815 | 3,411 |
Current taxes | 18,920 | 4,634 | 5,390 |
Deferred: | ' | ' | ' |
United States | 30,427 | 45,908 | -65,710 |
Foreign | 4,457 | 4,980 | 7,130 |
State and local | -2,536 | 3,767 | -1,419 |
Deferred taxes (benefit) | 32,348 | 54,655 | -59,999 |
Total income taxes (benefit) on income | 51,268 | 59,289 | -54,609 |
Income taxes (benefit) on discontinued operations | 8,544 | 1,310 | -8,847 |
Income taxes (benefit) on continuing operations | $42,724 | $57,979 | ($45,762) |
INCOME_TAX_Reconciliation_of_F
INCOME TAX (Reconciliation of Federal Statutory Rate to Effective Tax Rate from Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Reconciliation Of Statutory Federal Tax Rate [Line Items] | ' | ' | ' |
Income tax expense (benefit) at statutory rate of 35% | $50,684 | $46,528 | $57,675 |
State and local taxes | 88 | 3,460 | 4,596 |
Section 199 manufacturing deduction | -1,199 | 0 | 0 |
Foreign rate differential | -5,940 | -3,295 | -9,909 |
Change in valuation allowance | 22,079 | 14,264 | 10,033 |
Deferred compensation | -4,164 | -2,890 | -1,094 |
Nontaxable foreign interest | -16,506 | -5,445 | 0 |
Disposition of foreign subsidiaries | 0 | 6,292 | -102,104 |
Australian reorganization | 0 | -7,245 | 0 |
Research and experimentation tax credits | 0 | 0 | -11,500 |
Other | -2,318 | 6,310 | 6,541 |
Income tax expense (benefit) on continuing operations | $42,724 | $57,979 | ($45,762) |
Effective income tax rates from continuing operations | 29.50% | 43.60% | -27.80% |
INCOME_TAX_Deferred_Tax_Assets
INCOME TAX (Deferred Tax Assets and Liabilities) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Deferred compensation and employee benefits | $51,956 | $56,504 |
Net operating losses and credits | 68,736 | 99,200 |
Reserves and other accrued expenses | 45,246 | 34,375 |
Allowance for doubtful accounts | 3,760 | 5,020 |
Intangibles | 6,707 | 8,153 |
Other | 8,766 | 12,879 |
Total deferred tax assets | 185,171 | 216,131 |
Valuation allowance for deferred tax assets | -69,762 | -48,837 |
Deferred tax assets, net | 115,409 | 167,294 |
Deferred tax liabilities: | ' | ' |
Fixed assets | 99,016 | 113,547 |
Inventory | 8,320 | 10,219 |
Other | 4,066 | 5,354 |
Total deferred tax liabilities | 111,402 | 129,120 |
Deferred tax assets, net of deferred tax liabilities | $4,007 | $38,174 |
INCOME_TAX_Unrecognized_Tax_Be
INCOME TAX (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized Tax Benefits, Beginning Balance | $28,551 | $27,384 | $10,762 |
Change in tax positions of current year | 0 | 1,255 | 0 |
Change for tax positions of prior years | -1,202 | 0 | 18,006 |
Reductions due to settlements with taxing authorities | 0 | -88 | -600 |
Reductions due to statute of limitations lapse | 0 | 0 | -784 |
Unrecognized Tax Benefits, Ending Balance | $27,349 | $28,551 | $27,384 |
STOCKBASED_COMPENSATION_PLANS_1
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $18.10 | $18.70 | $13.10 |
Total unrecognized compensation cost | 24.4 | ' | ' |
Period of unrecognized compensation to be recognized | '3 years | ' | ' |
Shares available for future grants | 15,286,763 | ' | ' |
Fair value of shares vested | 10 | 7.2 | 10.7 |
Equivalent shares of SARs outstanding | 1,437,031 | ' | ' |
Restricted stock units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock awards and performance stock units, granted, shares | 1,191,544 | 1,149,696 | 829,001 |
Restricted stock units | United States | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting frequency | 3 | ' | ' |
Vesting period | '3 years | ' | ' |
Restricted stock units | Non-U.S. | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting frequency | 3 | ' | ' |
Vesting period | '3 years | ' | ' |
Certain restricted stock units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Period of unrecognized compensation to be recognized | '4 years | ' | ' |
Vesting in two years | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting percentage | 25.00% | ' | ' |
Vesting period | '2 years | ' | ' |
Vesting in three years | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting percentage | 25.00% | ' | ' |
Vesting period | '3 years | ' | ' |
Vesting in four years | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting percentage | 50.00% | ' | ' |
Vesting period | '4 years | ' | ' |
Performance stock units awarded in fiscal 2013 | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Payout percentage | 50.00% | ' | ' |
Performance stock units awarded in fiscal 2013 | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Payout percentage | 200.00% | ' | ' |
Performance stock units awarded in fiscal 2013 | EBITDA | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage that performance targets are weighted | 75.00% | ' | ' |
Performance stock units awarded in fiscal 2013 | Relative total stockholder return | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage that performance targets are weighted | 25.00% | ' | ' |
Performance stock units awarded in fiscal 2012 | EBITDA | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage that performance targets are weighted | 50.00% | ' | ' |
Performance stock units awarded in fiscal 2012 | RONA | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage that performance targets are weighted | 50.00% | ' | ' |
Liability awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock awards and performance stock units, granted, shares | 390,562 | ' | ' |
Equivalent number of awards outstanding | 1,617,014 | ' | ' |
Equivalent number of shares expected to vest | 1,537,212 | ' | ' |
Stock appreciation rights and stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | ' | '3 years | '3 years |
Stock appreciation rights and stock options, granted, number | 0 | 244,403 | 927,312 |
Stock appreciation rights and stock options, contractual term | ' | '7 years | '7 years |
Fair value of stock appreciation rights and stock options granted | ' | 0.6 | 3 |
Total intrinsic value of stock appreciation rights and stock options exercised | $1.70 | ' | ' |
Cash-settled stock appreciation rights | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock appreciation rights and stock options, granted, number | 0 | 59,399 | ' |
Equivalent shares of SARs outstanding | 104,589 | ' | ' |
Equivalent number of shares expected to vest | 99,360 | ' | ' |
Employee stock purchase plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Maximum number of shares per employee | 400 | ' | ' |
Purchase discount from market price | 15.00% | 15.00% | 15.00% |
STOCKBASED_COMPENSATION_PLANS_2
STOCK-BASED COMPENSATION PLANS (Stock-Based Awards Granted) (Details) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
StockOptions/SARs | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted, number | 0 | 244,403 | 927,312 |
Restricted Stock Awards/Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted, number | 1,191,544 | 1,149,696 | 829,001 |
Performance Awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted, number | 450,233 | 640,002 | 693,472 |
STOCKBASED_COMPENSATION_PLANS_3
STOCK-BASED COMPENSATION PLANS (Restricted Stock Awards and Performance Stock Units Excluding the Cash Component) (Details) (Restricted stock units and performance stock units excluding the cash component, USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Restricted stock units and performance stock units excluding the cash component | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding number, beginning balance | 1,907,418 | 1,683,572 | 2,394,140 |
Granted, number | 1,275,355 | 1,159,451 | 489,118 |
Vested, number | -737,870 | -537,303 | -773,947 |
Forfeited, number | -364,323 | -398,302 | -425,739 |
Outstanding number, ending balance | 2,080,580 | 1,907,418 | 1,683,572 |
Outstanding, weighted average grant-date fair value, beginning balance | $13.57 | $13.16 | $13.44 |
Granted, weighted average grant-date fair value | $16.89 | $13.60 | $10.68 |
Vested, weighted average grant-date fair value | $13.55 | $13.35 | $13.90 |
Forfeited, weighted average grant-date fair value | $14.94 | $12.22 | $10.56 |
Outstanding, weighted average grant-date fair value, ending balance | $15.37 | $13.57 | $13.16 |
STOCKBASED_COMPENSATION_PLANS_4
STOCK-BASED COMPENSATION PLANS (Assumptions Used in Estimating Fair Value of Stock Options and SARs) (Details) (Stock appreciation rights and stock options, USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Stock appreciation rights and stock options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | 0.41% | 0.43% |
Expected life, years | '3 years | '3 years |
Expected volatility | 43.00% | 59.00% |
Expected dividend yield | 3.40% | 4.14% |
Weighted average grant-date fair value per share | $3.38 | $3.67 |
STOCKBASED_COMPENSATION_PLANS_5
STOCK-BASED COMPENSATION PLANS (Combined Activity for Stock Appreciation Rights and Stock Options Excluding the Cash Component) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding, number, ending balance | 1,437,031 | ' | ' |
Exercisable, number | 1,018,397 | ' | ' |
Outstanding, weighted average exercise price, ending balance | $19.85 | ' | ' |
Exercisable, weighted average exercise price | $22.95 | ' | ' |
Outstanding, weighted average remaining contractual life (years) | '2 years 8 months 23 days | ' | ' |
Exercisable, weighted average remaining contractual life (years) | '2 years 1 month 1 day | ' | ' |
Stock appreciation rights and stock options excluding the cash component | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding, number, beginning balance | 2,653,430 | 2,930,492 | 2,807,498 |
Granted, number | 0 | 185,004 | 828,463 |
Exercised, number | -223,473 | -4,105 | -361,478 |
Forfeited / expired, number | -992,926 | -457,961 | -343,991 |
Outstanding, number, ending balance | 1,437,031 | 2,653,430 | 2,930,492 |
Exercisable, number | 1,018,397 | ' | ' |
Outstanding, weighted average exercise price, beginning balance | $24.07 | $24.81 | $27.45 |
Granted, weighted average exercise price | $0 | $14.25 | $11.63 |
Exercised, weighted average exercise price | $11.84 | $11.60 | $12.34 |
Forfeited / expired, weighted average exercise price | $32.93 | $24.91 | $27.78 |
Outstanding, weighted average exercise price, ending balance | $19.85 | $24.07 | $24.81 |
Exercisable, weighted average exercise price | $22.95 | ' | ' |
Outstanding, weighted average remaining contractual life (years) | '2 years 8 months 23 days | '2 years 9 months 18 days | '3 years 3 months 18 days |
Exercisable, weighted average remaining contractual life (years) | '2 years 1 month 1 day | ' | ' |
Outstanding, aggregated intrinsic value | $4,384,668 | $2,867,175 | $1,104,590 |
Exercisable, aggregated intrinsic value | $2,307,463 | ' | ' |
Remaining unvested stock appreciation rights and stock options expected to vest, number | 397,703 | ' | ' |
Remaining unvested options and SARs expected to vest, weighted average exercise price | $12.32 | ' | ' |
STOCKBASED_COMPENSATION_PLANS_6
STOCK-BASED COMPENSATION PLANS (Information Related To Stock Appreciation Rights And Stock Options) (Details) (USD $) | 12 Months Ended |
Aug. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding, number | 1,437,031 |
Outstanding, weighted average remaining contractual life (in years) | '2 years 8 months 23 days |
Outstanding, weighted average exercise price | $19.85 |
Exercisable, number | 1,018,397 |
Exercisable, weighted average remaining contractual life (in years) | '2 years 1 month 1 day |
Exercisable, weighted average exercise price | $22.95 |
$11.00-14.68 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of exercise prices, lower range limit | $11 |
Range of exercise prices, upper range limit | $14.68 |
Outstanding, number | 868,245 |
Outstanding, weighted average remaining contractual life (in years) | '3 years 8 months 7 days |
Outstanding, weighted average exercise price | $12.30 |
Exercisable, number | 456,081 |
Exercisable, weighted average remaining contractual life (in years) | '3 years 1 month 27 days |
Exercisable, weighted average exercise price | $12.34 |
$16.54-16.83 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of exercise prices, lower range limit | $16.54 |
Range of exercise prices, upper range limit | $16.83 |
Outstanding, number | 121,706 |
Outstanding, weighted average remaining contractual life (in years) | '3 years 6 months 15 days |
Outstanding, weighted average exercise price | $16.81 |
Exercisable, number | 115,236 |
Exercisable, weighted average remaining contractual life (in years) | '3 years 5 months 7 days |
Exercisable, weighted average exercise price | $16.82 |
$32.82-35.38 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of exercise prices, lower range limit | $32.82 |
Range of exercise prices, upper range limit | $35.38 |
Outstanding, number | 447,080 |
Outstanding, weighted average remaining contractual life (in years) | '0 years 7 months 25 days |
Outstanding, weighted average exercise price | $35.36 |
Exercisable, number | 447,080 |
Exercisable, weighted average remaining contractual life (in years) | '0 years 7 months 25 days |
Exercisable, weighted average exercise price | $35.36 |
STOCKBASED_COMPENSATION_PLANS_7
STOCK-BASED COMPENSATION PLANS (Yearly Activity of Stock Purchase Plan) (Details) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares available for future issuance | 15,286,763 | ' | ' |
Employee stock purchase plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares subscribed | 228,780 | 281,460 | 299,210 |
Price per share | $16.97 | $12.61 | $11.85 |
Shares purchased | 221,570 | 211,580 | 198,300 |
Price per share | $12.61 | $11.85 | $11.76 |
Shares available for future issuance | 3,955,314 | ' | ' |
CAPITAL_STOCK_Narrative_Detail
CAPITAL STOCK (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Aug. 11, 2011 | Aug. 31, 2014 | Aug. 31, 2013 | Oct. 27, 2014 |
right | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Share repurchase program, authorized amount | ' | ' | ' | $100 |
Treasury stock, shares, purchased | ' | 0 | 0 | ' |
Remaining number of shares authorized to purchase | ' | 8,259,647 | ' | ' |
Preferred stock, par value per share | ' | $1 | ' | ' |
Preferred stock, shares authorized | ' | 2,000,000 | ' | ' |
Preferred stock, shares outstanding | ' | 0 | ' | ' |
Dividend, number of Preferred Stock Purchase Right per each common stock | 1 | ' | ' | ' |
EMPLOYEES_RETIREMENT_PLANS_Nar
EMPLOYEES' RETIREMENT PLANS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
United States | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Compensation expense under defined contribution profit sharing and savings plan and BRP Plan | $19.30 | $15.90 | $13 |
BRP plan | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Deferred compensation liability | 78 | 78.8 | ' |
Current value of segregated assets | 69.5 | 59.4 | ' |
Net holding gain on segregated assets | 13.3 | 9.9 | 5.3 |
Defined benefit plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Company expenses for defined benefit plans | 2 | 3.6 | 2.2 |
Liability related to unfunded status of defined benefit plans | $2.40 | $3.50 | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Apr. 30, 2014 | Sep. 18, 2008 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 |
Guarantee agreement | Guarantee agreement | United States District Court | United States District Court | Federal court | CERCLA sites | CERCLA sites | ||||
entities | states | |||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total rental expense | $46.80 | $46.60 | $43.90 | ' | ' | ' | ' | ' | ' | ' |
Number of steel manufacturing companies | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' |
Litigation settlement amount | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' |
Number of states | ' | ' | ' | ' | ' | ' | ' | 28 | ' | ' |
Total environmental liabilities | 6.2 | 9 | ' | ' | ' | ' | ' | ' | 0.7 | 0.9 |
Long-term environmental liabilities | 2.3 | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum credit facility | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' |
Maximum exposure | ' | ' | ' | $0 | $3.50 | ' | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Minimum Lease Commitments Payable for Noncancelable Operating Leases) (Details) (USD $) | Aug. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2015 | $33,754 |
2016 | 26,300 |
2017 | 21,170 |
2018 | 14,509 |
2019 | 11,327 |
Thereafter | 28,131 |
Total | $135,191 |
EARNINGS_PER_SHARE_ATTRIBUTABL2
EARNINGS PER SHARE ATTRIBUTABLE TO CMC (Calculations of Basic and Diluted Earnings Per Share) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' |
Earnings from continuing operations | $102,087 | $74,957 | $210,549 |
Basic earnings per share: | ' | ' | ' |
Shares outstanding for basic earnings per share | 117,496,270 | 116,677,836 | 115,861,986 |
Basic earnings per share from continuing operations attributable to CMC | $0.87 | $0.64 | $1.82 |
Diluted earnings per share: | ' | ' | ' |
Shares outstanding for basic earnings per share | 117,496,270 | 116,677,836 | 115,861,986 |
Effect of dilutive securities: | ' | ' | ' |
Stock-based incentive/purchase plans | 1,110,836 | 875,116 | 921,174 |
Shares outstanding for diluted earnings per share | 118,607,106 | 117,552,952 | 116,783,160 |
Diluted earnings per share from continuing operations attributable to CMC | $0.86 | $0.64 | $1.80 |
Anti-dilutive shares not included above | 679,916 | 1,492,206 | 2,804,492 |
ACCRUED_EXPENSES_AND_OTHER_PAY2
ACCRUED EXPENSES AND OTHER PAYABLES (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Salaries and incentive compensation | $115,840 | $77,849 |
Advance billings on contracts | 41,645 | 53,089 |
Taxes other than income taxes | 39,998 | 46,480 |
Insurance | 25,239 | 24,911 |
Inventory | $17,181 | $11,311 |
BUSINESS_SEGMENTS_Narrative_De
BUSINESS SEGMENTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
segments | |||
Number of reporting segments | 5 | ' | ' |
Capital expenditures | $101,749 | $89,035 | $113,853 |
Total assets | 3,688,520 | 3,494,801 | ' |
Discontinued operations | ' | ' | ' |
Capital expenditures | 0 | 1,200 | 5,500 |
Total assets | $7,000 | $50,500 | $43,400 |
BUSINESS_SEGMENTS_Summary_of_C
BUSINESS SEGMENTS (Summary of Certain Financial Information from Continuing Operations by Reportable Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | $1,903,196 | [1] | $1,804,774 | [1] | $1,649,098 | [1] | $1,682,891 | [1] | $1,698,861 | [1] | $1,752,534 | [1] | $1,688,665 | [1] | $1,749,515 | [1] | $7,039,959 | $6,889,575 | $7,656,375 | |||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 77,741 | 69,608 | 69,487 | |||||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 101,749 | 89,035 | 113,853 | |||||||||||
Total assets | 3,688,520 | ' | ' | ' | 3,494,801 | ' | ' | ' | 3,688,520 | 3,494,801 | ' | |||||||||||
Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 7,039,959 | 6,889,575 | 7,656,375 | |||||||||||
Americas Recycling | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,176,907 | 1,225,604 | 1,418,717 | |||||||||||
Americas Mills | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,198,249 | 1,060,337 | 1,206,651 | |||||||||||
Americas Fabrication | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,523,573 | 1,427,785 | 1,366,944 | |||||||||||
International Mill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 822,224 | 819,889 | 955,730 | |||||||||||
International Marketing and Distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,304,723 | 2,344,128 | 2,700,300 | |||||||||||
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 14,283 | 11,832 | 8,033 | |||||||||||
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||||||||||
Segments | Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 7,039,959 | 6,889,575 | 7,656,375 | |||||||||||
Adjusted operating profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 226,417 | 206,438 | 240,712 | |||||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 77,741 | [2] | 69,608 | [2] | 69,487 | [2] | ||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 101,749 | [3] | 87,804 | [3] | 108,385 | [3] | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 139,177 | [4] | 151,002 | [4] | 134,442 | [4] | ||||||||
Total assets | 3,681,510 | [5] | ' | ' | ' | 3,444,261 | [5] | ' | ' | ' | 3,681,510 | [5] | 3,444,261 | [5] | 3,397,870 | [5] | ||||||
Segments | Americas Recycling | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,367,070 | 1,391,749 | 1,606,161 | |||||||||||
Adjusted operating profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -3,222 | 3,170 | 39,446 | |||||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,700 | [2] | 9 | [2] | 1,933 | [2] | ||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 16,771 | [3] | 21,261 | [3] | 40,329 | [3] | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 16,424 | [4] | 13,453 | [4] | 13,260 | [4] | ||||||||
Total assets | 296,564 | [5] | ' | ' | ' | 309,599 | [5] | ' | ' | ' | 296,564 | [5] | 309,599 | [5] | 285,136 | [5] | ||||||
Segments | Americas Mills | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,991,334 | 1,819,520 | 1,983,721 | |||||||||||
Adjusted operating profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 247,703 | 204,333 | 235,918 | |||||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 7,059 | [2] | -101 | [2] | 12,995 | [2] | ||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 31,781 | [3] | 37,216 | [3] | 38,140 | [3] | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 45,392 | [4] | 42,925 | [4] | 40,704 | [4] | ||||||||
Total assets | 647,437 | [5] | ' | ' | ' | 598,478 | [5] | ' | ' | ' | 647,437 | [5] | 598,478 | [5] | 615,070 | [5] | ||||||
Segments | Americas Fabrication | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,537,485 | 1,442,691 | 1,381,638 | |||||||||||
Adjusted operating profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 6,196 | 28,033 | -15,697 | |||||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 10,222 | [2] | 83 | [2] | 10,809 | [2] | ||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 13,798 | [3] | 5,605 | [3] | 4,389 | [3] | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 19,192 | [4] | 22,302 | [4] | 22,056 | [4] | ||||||||
Total assets | 691,765 | [5] | ' | ' | ' | 631,510 | [5] | ' | ' | ' | 691,765 | [5] | 631,510 | [5] | 629,970 | [5] | ||||||
Segments | International Mill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 823,193 | 826,044 | 1,033,357 | |||||||||||
Adjusted operating profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 30,632 | 890 | 23,044 | |||||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 4,608 | [2] | 992 | [2] | 10,090 | [2] | ||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 30,770 | [3] | 15,155 | [3] | 14,016 | [3] | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 32,776 | [4] | 33,238 | [4] | 32,306 | [4] | ||||||||
Total assets | 466,449 | [5] | ' | ' | ' | 487,613 | [5] | ' | ' | ' | 466,449 | [5] | 487,613 | [5] | 529,160 | [5] | ||||||
Segments | International Marketing and Distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,326,512 | 2,355,572 | 2,727,319 | |||||||||||
Adjusted operating profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 17,757 | 35,617 | 47,287 | |||||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 8,900 | [2] | 4,369 | [2] | 6,548 | [2] | ||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,722 | [3] | 1,015 | [3] | 3,314 | [3] | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 4,150 | [4] | 17,988 | [4] | 5,821 | [4] | ||||||||
Total assets | 949,016 | [5] | ' | ' | ' | 838,413 | [5] | ' | ' | ' | 949,016 | [5] | 838,413 | [5] | 870,933 | [5] | ||||||
Segments | Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 14,283 | 11,832 | 8,033 | |||||||||||
Adjusted operating profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -72,347 | -66,453 | -83,035 | |||||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 44,252 | [2] | 64,256 | [2] | 27,112 | [2] | ||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 6,907 | [3] | 7,552 | [3] | 8,197 | [3] | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 21,243 | [4] | 21,096 | [4] | 20,295 | [4] | ||||||||
Total assets | 1,100,995 | [5] | ' | ' | ' | 1,075,594 | [5] | ' | ' | ' | 1,100,995 | [5] | 1,075,594 | [5] | 961,654 | [5] | ||||||
Segments | Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | -1,019,918 | -957,833 | -1,083,854 | |||||||||||
Adjusted operating profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -302 | 848 | -6,251 | |||||||||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 0 | [2] | 0 | [2] | ||||||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [3] | 0 | [3] | 0 | [3] | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [4] | 0 | [4] | 0 | [4] | ||||||||
Total assets | -470,716 | [5] | ' | ' | ' | -496,946 | [5] | ' | ' | ' | -470,716 | [5] | -496,946 | [5] | -494,053 | [5] | ||||||
Intersegment | Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||||||||||
Intersegment | Americas Recycling | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 190,163 | 166,145 | 187,444 | |||||||||||
Intersegment | Americas Mills | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 793,085 | 759,183 | 777,070 | |||||||||||
Intersegment | Americas Fabrication | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 13,912 | 14,906 | 14,694 | |||||||||||
Intersegment | International Mill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 969 | 6,155 | 77,627 | |||||||||||
Intersegment | International Marketing and Distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 21,789 | 11,444 | 27,019 | |||||||||||
Intersegment | Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||||||||||
Intersegment | Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ($1,019,918) | ($957,833) | ($1,083,854) | |||||||||||
[1] | Excludes divisions classified as discontinued operations. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions. | |||||||||||||||||||||
[2] | Includes intercompany interest expense (income)B in the segments and is all eliminated within Corporate. | |||||||||||||||||||||
[3] | Excludes capital expenditures from discontinued operations of $1.2 million and $5.5 million for the years ended AugustB 31, 2013 and 2012, respectively. | |||||||||||||||||||||
[4] | Includes asset impairment charges. | |||||||||||||||||||||
[5] | Excludes total assets from discontinued operations of $7.0 million at AugustB 31, 2014, $50.5 million at AugustB 31, 2013 and $43.4 million at AugustB 31, 2012. |
BUSINESS_SEGMENTS_Reconciliati
BUSINESS SEGMENTS (Reconciliations of Earnings from Continuing Operations to Adjusted Operating Profit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Earnings from continuing operations | $102,087 | $74,957 | $210,549 |
Income taxes (benefit) | 42,724 | 57,979 | -45,762 |
Interest expense | 77,741 | 69,608 | 69,487 |
Discounts on sales of accounts receivable | 3,900 | 3,900 | 6,400 |
Continuing operations | ' | ' | ' |
Discounts on sales of accounts receivable | 3,865 | 3,894 | 6,438 |
Adjusted operating profit (loss) from continuing operations | $226,417 | $206,438 | $240,712 |
BUSINESS_SEGMENTS_External_Net
BUSINESS SEGMENTS (External Net Sales from Continuing Operations by Major Product) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | ||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $1,903,196 | [1] | $1,804,774 | [1] | $1,649,098 | [1] | $1,682,891 | [1] | $1,698,861 | [1] | $1,752,534 | [1] | $1,688,665 | [1] | $1,749,515 | [1] | $7,039,959 | $6,889,575 | $7,656,375 |
Steel products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 4,746,404 | 4,318,072 | 4,699,226 | ||||||||
Ferrous scrap | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 659,578 | 646,263 | 763,772 | ||||||||
Industrial materials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 659,251 | 928,472 | 1,147,386 | ||||||||
Nonferrous scrap | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 639,961 | 682,611 | 765,349 | ||||||||
Construction materials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 199,154 | 189,046 | 177,827 | ||||||||
Nonferrous products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 8,761 | 5,674 | 2,689 | ||||||||
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $126,850 | $119,437 | $100,126 | ||||||||
[1] | Excludes divisions classified as discontinued operations. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions. |
BUSINESS_SEGMENTS_External_Net1
BUSINESS SEGMENTS (External Net Sales from Continuing Operations by Geographic Area) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $1,903,196 | [1] | $1,804,774 | [1] | $1,649,098 | [1] | $1,682,891 | [1] | $1,698,861 | [1] | $1,752,534 | [1] | $1,688,665 | [1] | $1,749,515 | [1] | $7,039,959 | $6,889,575 | $7,656,375 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 4,510,080 | 4,107,231 | 4,503,786 | ||||||||
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,215,150 | 1,108,196 | 1,313,611 | ||||||||
Asia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 786,512 | 1,094,458 | 1,018,675 | ||||||||
Australia/New Zealand | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 425,277 | 488,108 | 617,919 | ||||||||
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $102,940 | $91,582 | $202,384 | ||||||||
[1] | Excludes divisions classified as discontinued operations. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions. |
BUSINESS_SEGMENTS_BUSINESS_SEG
BUSINESS SEGMENTS BUSINESS SEGMENTS (Long-Lived Assets by Geographic Area) (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | $1,134,729 | $1,128,606 | $1,201,415 |
United States | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 871,326 | 868,643 | 907,009 |
Europe | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 243,280 | 239,899 | 250,392 |
Australia/New Zealand | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 11,309 | 12,446 | 36,097 |
Other | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | $8,814 | $7,618 | $7,917 |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $1,903,196 | [1] | $1,804,774 | [1] | $1,649,098 | [1] | $1,682,891 | [1] | $1,698,861 | [1] | $1,752,534 | [1] | $1,688,665 | [1] | $1,749,515 | [1] | $7,039,959 | $6,889,575 | $7,656,375 |
Gross profit | 186,078 | [1] | 183,298 | [1] | 145,190 | [1] | 181,093 | [1] | 160,788 | [1] | 175,519 | [1] | 139,365 | [1] | 186,665 | [1] | ' | ' | ' |
Net earnings attributable to CMC | $34,926 | $23,563 | $11,143 | $45,919 | $4,057 | $18,964 | $4,577 | $49,717 | $115,551 | $77,315 | $207,484 | ||||||||
Basic EPS attributable to CMC | $0.29 | $0.20 | $0.09 | $0.39 | $0.03 | $0.16 | $0.04 | $0.43 | $0.98 | $0.66 | $1.79 | ||||||||
Diluted EPS attributable to CMC | $0.29 | $0.20 | $0.09 | $0.39 | $0.03 | $0.16 | $0.04 | $0.42 | $0.97 | $0.66 | $1.78 | ||||||||
[1] | Excludes divisions classified as discontinued operations. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions. |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (Trinecke) | 3 Months Ended |
Nov. 30, 2012 | |
Trinecke | ' |
Related Party Transaction [Line Items] | ' |
Percentage of ownership before transaction | 11.00% |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II b VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |||
Allowance for doubtful accounts | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Period | $10,042 | $9,480 | $16,095 | |||
Additions, Charged to Cost and Expense | 647 | 4,980 | 2,017 | |||
Additions, Charged to Other Accounts | 842 | [1] | 193 | [1] | -3,423 | [1] |
Deductions, Charged to Cost and Expense | -1,544 | -550 | -4,480 | |||
Deductions, Charged to Other Accounts | -4,079 | [2] | -4,061 | [2] | -729 | [2] |
Balance at End of Period | 5,908 | 10,042 | 9,480 | |||
Deferred tax valuation allowance | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Period | 48,837 | 25,779 | 75,289 | |||
Additions, Charged to Cost and Expense | 24,964 | 25,119 | 11,855 | |||
Additions, Charged to Other Accounts | ' | ' | ' | |||
Deductions, Charged to Cost and Expense | -4,039 | -2,061 | -356 | |||
Deductions, Charged to Other Accounts | ' | ' | -61,009 | |||
Balance at End of Period | $69,762 | $48,837 | $25,779 | |||
[1] | Recoveries and translation adjustments. | |||||
[2] | Uncollectable accounts charged to the allowance. For the years ended AugustB 31, 2014, 2013 and 2012, $(1,010), $(1,163) and $(5,864) were reclassified to the fair value of the deferred purchase price under our sale of receivables program, respectively. |
SCHEDULE_II_VALUATION_AND_QUAL2
SCHEDULE II b VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Narrative) (Details) (Allowance for doubtful accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Allowance for doubtful accounts | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Amounts reclassified to the fair value of the deferred purchase price | ($1,010) | ($1,163) | ($5,864) |