Cover Page
Cover Page - shares | 9 Months Ended | |
May 31, 2021 | Jun. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-4304 | |
Entity Registrant Name | COMMERCIAL METALS COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-0725338 | |
Entity Address, Address Line One | 6565 N. MacArthur Blvd. | |
Entity Address, City or Town | Irving | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75039 | |
City Area Code | (214) | |
Local Phone Number | 689-4300 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | CMC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 120,586,589 | |
Entity Central Index Key | 0000022444 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --08-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||
Income Statement [Abstract] | |||||
Net sales | $ 1,845,041 | $ 1,341,683 | $ 4,699,114 | $ 4,067,354 | |
Costs and expenses: | |||||
Cost of goods sold | 1,533,768 | 1,116,353 | 3,936,930 | 3,385,963 | |
Selling, general and administrative expenses | 130,448 | 115,965 | 359,492 | 342,502 | |
Loss on debt extinguishment | 0 | 0 | 16,841 | 0 | |
Interest expense | 11,965 | 15,409 | 40,245 | 47,875 | |
Asset impairments | 277 | 5,983 | 4,345 | 6,513 | |
Total costs and expenses | 1,676,458 | 1,253,710 | 4,357,853 | 3,782,853 | |
Earnings from continuing operations before income taxes | 168,583 | 87,973 | 341,261 | 284,501 | |
Income taxes | 38,175 | 23,804 | 80,709 | 73,981 | |
Earnings from continuing operations | 130,408 | 64,169 | 260,552 | 210,520 | |
Earnings from discontinued operations before income taxes | 0 | 745 | 0 | 1,941 | |
Income taxes | 0 | 180 | 0 | 581 | |
Earnings from discontinued operations | 0 | 565 | 0 | 1,360 | |
Net earnings | $ 130,408 | $ 64,734 | $ 260,552 | $ 211,880 | |
Basic earnings per share: | |||||
Earnings from continuing operations (in USD per share) | [1] | $ 1.08 | $ 0.54 | $ 2.17 | $ 1.77 |
Earnings (loss) from discontinued operations (in USD per share) | [1] | 0 | 0 | 0 | 0.01 |
Net earnings (in USD per share) | [1] | 1.08 | 0.54 | 2.17 | 1.78 |
Diluted earnings per share: | |||||
Earnings from continuing operations (in USD per share) | [1] | 1.07 | 0.53 | 2.14 | 1.75 |
Earnings (loss) from discontinued operations (in USD per share) | [1] | 0 | 0 | 0 | 0.01 |
Net earnings (in USD per share) | [1] | $ 1.07 | $ 0.54 | $ 2.14 | $ 1.76 |
Average basic shares outstanding (shares) | 120,613,652 | 119,192,962 | 120,241,579 | 118,828,870 | |
Average diluted shares outstanding (shares) | 122,193,655 | 120,278,741 | 121,852,144 | 120,277,737 | |
[1] | *Earnings Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 130,408 | $ 64,734 | $ 260,552 | $ 211,880 |
Other comprehensive income (loss), net of income taxes: | ||||
Foreign currency translation adjustment | 11,775 | (8,035) | 4,852 | (2,179) |
Net unrealized gain (loss) on derivatives: | ||||
Unrealized holding gain (loss) | 12,145 | (5,143) | 21,032 | (8,075) |
Reclassification for gain included in net earnings | (616) | (81) | (929) | (253) |
Net unrealized gain (loss) on derivatives | 11,529 | (5,224) | 20,103 | (8,328) |
Defined benefit obligation: | ||||
Amortization of prior services | (14) | (8) | (41) | (24) |
Defined benefit obligation | (14) | (8) | (41) | (24) |
Other comprehensive income (loss) | 23,290 | (13,267) | 24,914 | (10,531) |
Comprehensive income | $ 153,698 | $ 51,467 | $ 285,466 | $ 201,349 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 443,120 | $ 542,103 |
Accounts receivable (less allowance for doubtful accounts of $6,688 and $9,597) | 1,073,115 | 880,728 |
Inventories, net | 833,101 | 625,393 |
Prepaid and other current assets | 169,139 | 165,879 |
Total current assets | 2,518,475 | 2,214,103 |
Property, plant and equipment, net | 1,562,503 | 1,571,067 |
Goodwill | 66,331 | 64,321 |
Other noncurrent assets | 243,766 | 232,237 |
Total assets | 4,391,075 | 4,081,728 |
Current liabilities: | ||
Accounts payable | 340,238 | 266,102 |
Accrued expenses and other payables | 456,394 | 461,012 |
Current maturities of long-term debt and short-term borrowings | 56,735 | 18,149 |
Total current liabilities | 853,367 | 745,263 |
Deferred income taxes | 118,335 | 130,810 |
Other noncurrent liabilities | 242,647 | 250,706 |
Long-term debt | 1,020,129 | 1,065,536 |
Total liabilities | 2,234,478 | 2,192,315 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 120,585,771 and 119,220,905 shares | 1,290 | 1,290 |
Additional paid-in capital | 361,433 | 358,912 |
Accumulated other comprehensive loss | (78,850) | (103,764) |
Retained earnings | 2,025,083 | 1,807,826 |
Less treasury stock 8,474,893 and 9,839,759 shares at cost | (152,590) | (175,063) |
Stockholders' equity | 2,156,366 | 1,889,201 |
Stockholders' equity attributable to noncontrolling interests | 231 | 212 |
Total stockholders' equity | 2,156,597 | 1,889,413 |
Total liabilities and stockholders' equity | $ 4,391,075 | $ 4,081,728 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 6,688 | $ 9,597 |
Common stock, par value (in USD per share) | $ 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 | 120,585,771 | 119,220,905 |
Treasury stock, shares | 8,474,893 | 9,839,759 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Cash flows from (used by) operating activities: | ||
Net earnings | $ 260,552 | $ 211,880 |
Adjustments to reconcile net earnings to cash flows from (used by) operating activities: | ||
Depreciation and amortization | 125,176 | 124,104 |
Stock-based compensation | 35,558 | 21,975 |
Deferred income taxes and other long-term taxes | (17,175) | 47,761 |
Loss on debt extinguishment | 16,841 | 0 |
Net gain on disposals of subsidiaries, assets and other | (9,390) | (5,476) |
Amortization of acquired unfavorable contract backlog | (4,540) | (18,676) |
Asset impairments | 4,345 | 6,513 |
Other | 243 | 1,933 |
Changes in operating assets and liabilities | (317,378) | 141,819 |
Net cash flows from operating activities | 94,232 | 531,833 |
Cash flows from (used by) investing activities: | ||
Capital expenditures | (127,395) | (134,092) |
Proceeds from the sale of property, plant and equipment and other | 25,890 | 14,091 |
Other | (2,500) | 974 |
Acquisitions, net of cash acquired | 0 | (9,850) |
Net cash flows used by investing activities: | (104,005) | (128,877) |
Cash flows from (used by) financing activities: | ||
Proceeds from issuance of long-term debt, net | 309,187 | 22,566 |
Repayments of long-term debt | (361,855) | (110,470) |
Debt extinguishment costs | (13,128) | 0 |
Debt issuance costs | (2,830) | 0 |
Proceeds from accounts receivable facilities | 145,864 | 171,133 |
Repayments under accounts receivable facilities | (118,312) | (171,285) |
Dividends | (43,295) | (42,768) |
Stock issued under incentive and purchase plans, net of forfeitures | (3,807) | (1,921) |
Contribution from noncontrolling interest | 19 | 16 |
Net cash flows used by financing activities | (88,157) | (132,729) |
Effect of exchange rate changes on cash | (423) | 210 |
Increase (decrease) in cash, restricted cash and cash equivalents | (98,353) | 270,437 |
Cash, restricted cash and cash equivalents at beginning of period | 446,611 | 464,166 |
Cash, restricted cash and cash equivalents at end of period | 446,611 | 464,166 |
Supplemental information: | ||
Cash paid for income taxes | 59,041 | 29,566 |
Cash paid for interest | 43,403 | 49,159 |
Noncash activities: | ||
Liabilities related to additions of property, plant and equipment | $ 16,601 | $ 31,881 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 443,120 | $ 462,110 |
Restricted Cash | 3,491 | 2,056 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | $ 446,611 | $ 464,166 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests |
Beginning balance at Aug. 31, 2019 | $ 1,624,057 | $ 1,290 | $ 358,668 | $ (124,126) | $ 1,585,379 | $ (197,350) | $ 196 |
Beginning balance, shares at Aug. 31, 2019 | 129,060,664 | ||||||
Beginning balance, treasury stock, shares at Aug. 31, 2019 | (11,135,726) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 211,880 | 211,880 | |||||
Other comprehensive income (loss) | (10,531) | ||||||
Dividends | (42,768) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (1,921) | (21,751) | $ 19,830 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 1,140,195 | ||||||
Stock-based compensation | 17,419 | 17,419 | |||||
Contribution from noncontrolling interest | 16 | 16 | |||||
Reclassification of share-based liability awards | 2,510 | 2,510 | |||||
Ending balance at May. 31, 2020 | 1,800,662 | $ 1,290 | 356,846 | (134,657) | 1,754,491 | $ (177,520) | 212 |
Ending balance, shares at May. 31, 2020 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at May. 31, 2020 | (9,995,531) | ||||||
Beginning balance at Feb. 29, 2020 | 1,758,055 | $ 1,290 | 351,481 | (121,390) | 1,704,045 | $ (177,583) | 212 |
Beginning balance, shares at Feb. 29, 2020 | 129,060,664 | ||||||
Beginning balance, treasury stock, shares at Feb. 29, 2020 | (9,998,775) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 64,734 | ||||||
Other comprehensive income (loss) | (13,267) | ||||||
Dividends | (14,288) | (14,288) | |||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 542 | 479 | $ 63 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 3,244 | ||||||
Stock-based compensation | 4,886 | 4,886 | |||||
Ending balance at May. 31, 2020 | 1,800,662 | $ 1,290 | 356,846 | (134,657) | 1,754,491 | $ (177,520) | 212 |
Ending balance, shares at May. 31, 2020 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at May. 31, 2020 | (9,995,531) | ||||||
Beginning balance at Aug. 31, 2020 | $ 1,889,413 | $ 1,290 | 358,912 | (103,764) | 1,807,826 | $ (175,063) | 212 |
Beginning balance, shares at Aug. 31, 2020 | 129,060,664 | 129,060,664 | |||||
Beginning balance, treasury stock, shares at Aug. 31, 2020 | (9,839,759) | (9,839,759) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 260,552 | 260,552 | |||||
Other comprehensive income (loss) | 24,914 | ||||||
Dividends | (43,295) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (3,807) | (26,280) | $ 22,473 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 1,364,866 | ||||||
Stock-based compensation | 23,381 | 23,381 | |||||
Contribution from noncontrolling interest | 19 | 19 | |||||
Reclassification of share-based liability awards | 5,420 | 5,420 | |||||
Ending balance at May. 31, 2021 | $ 2,156,597 | $ 1,290 | 361,433 | (78,850) | 2,025,083 | $ (152,590) | 231 |
Ending balance, shares at May. 31, 2021 | 129,060,664 | 129,060,664 | |||||
Ending balance, treasury stock, shares at May. 31, 2021 | (8,474,893) | (8,474,893) | |||||
Beginning balance at Feb. 28, 2021 | $ 2,009,492 | $ 1,290 | 354,620 | (102,140) | 1,909,443 | $ (153,952) | 231 |
Beginning balance, shares at Feb. 28, 2021 | 129,060,664 | ||||||
Beginning balance, treasury stock, shares at Feb. 28, 2021 | (8,552,449) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 130,408 | ||||||
Other comprehensive income (loss) | 23,290 | ||||||
Dividends | (14,768) | (14,768) | |||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 729 | (633) | $ 1,362 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 77,556 | ||||||
Stock-based compensation | 7,446 | 7,446 | |||||
Ending balance at May. 31, 2021 | $ 2,156,597 | $ 1,290 | $ 361,433 | $ (78,850) | $ 2,025,083 | $ (152,590) | $ 231 |
Ending balance, shares at May. 31, 2021 | 129,060,664 | 129,060,664 | |||||
Ending balance, treasury stock, shares at May. 31, 2021 | (8,474,893) | (8,474,893) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in USD per share) | $ 0.12 | $ 0.12 | $ 0.36 | $ 0.36 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 9 Months Ended |
May 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting policies | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K for the year ended August 31, 2020 ("2020 Form 10-K") filed by Commercial Metals Company ("CMC," and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission (the "SEC") and include all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheets and the condensed consolidated statements of earnings, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the consolidated financial statements included in the 2020 Form 10-K. The results of operations for the three and nine month periods are not necessarily indicative of the results to be expected for the full fiscal year. Any reference in this Form 10-Q to the "corresponding period" relates to the relevant three or nine month period ended May 31, 2020. Any reference in this Form 10-Q to a year refers to the fiscal year ended August 31st of that year, unless otherwise noted. |
CHANGES IN BUSINESS
CHANGES IN BUSINESS | 9 Months Ended |
May 31, 2021 | |
Business Combinations [Abstract] | |
Changes in Business | Facility Closure and Disposition In October 2019, the Company closed the melting operations at its Rancho Cucamonga facility, which is part of the North America segment. In August 2020, the Company announced plans to sell the Rancho Cucamonga site and the Company ceased operations at this facility in January 2021. As a result, the Company recorded $13.4 million of expense in the nine months ended May 31, 2021, all of which was recorded in the first two quarters of 2021, and $0.9 million and $7.2 million of expense in the three and nine months ended May 31, 2020, respectively, related to asset impairments, severance, pension curtailment, environmental obligations and vendor agreement terminations. The disposition does not meet the criteria for discontinued operations, and a s of May 31, 2021, does not qualify for held for sale accounting. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
May 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive income (loss) | The following tables reflect the changes in accumulated other comprehensive income (loss) ("AOCI"): Three Months Ended May 31, 2021 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, March 1, 2021 $ (94,856) $ (2,760) $ (4,524) $ (102,140) Other comprehensive income (loss) before reclassifications 11,775 14,056 (14) 25,817 Amounts reclassified from AOCI — (719) — (719) Income tax benefit — (1,808) — (1,808) Net other comprehensive income (loss) 11,775 11,529 (14) 23,290 Balance, May 31, 2021 $ (83,081) $ 8,769 $ (4,538) $ (78,850) Nine Months Ended May 31, 2021 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, September 1, 2020 $ (87,933) $ (11,334) $ (4,497) $ (103,764) Other comprehensive income (loss) before reclassifications 4,852 25,028 (48) 29,832 Amounts reclassified from AOCI — (1,106) — (1,106) Income tax expense (benefit) — (3,819) 7 (3,812) Net other comprehensive income (loss) 4,852 20,103 (41) 24,914 Balance, May 31, 2021 $ (83,081) $ 8,769 $ (4,538) $ (78,850) Three Months Ended May 31, 2020 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, March 1, 2020 $ (115,642) $ (1,998) $ (3,750) $ (121,390) Other comprehensive loss before reclassifications (8,037) (6,350) (10) (14,397) Amounts reclassified to (from) AOCI 2 (98) — (96) Income tax expense — 1,224 2 1,226 Net other comprehensive loss (8,035) (5,224) (8) (13,267) Balance, May 31, 2020 $ (123,677) $ (7,222) $ (3,758) $ (134,657) Nine Months Ended May 31, 2020 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, September 1, 2019 $ (121,498) $ 1,106 $ (3,734) $ (124,126) Other comprehensive loss before reclassifications (2,179) (9,969) (34) (12,182) Amounts reclassified from AOCI — (312) — (312) Income tax expense — 1,953 10 1,963 Net other comprehensive loss (2,179) (8,328) (24) (10,531) Balance, May 31, 2020 $ (123,677) $ (7,222) $ (3,758) $ (134,657) Items reclassified out of AOCI were immaterial for the three and nine months ended May 31, 2021 and May 31, 2020. Thus, the corresponding line items in the condensed consolidated statements of earnings to which the items were reclassified are not presented. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
May 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 4. REVENUE RECOGNITION Each fabricated product contract sold by the North America segment represents a single performance obligation. Revenue from contracts where the Company provides fabricated product and installation services is recognized over time using an input measure, and these contracts represented 7% and 10% of net sales in the North America segment in the three and nine months ended May 31, 2021, respectively, and 11% and 12% of net sales in the North America segment in the three and nine months ended May 31, 2020, respectively. Revenue from contracts where the Company does not provide installation services is recognized over time using an output measure, and these contracts represented 9% of net sales in the North America segment in both the three and nine months ended May 31, 2021, and 12% and 11% in the three and nine months ended May 31, 2020, respectively. Remaining net sales in the North America segment were recognized at a point in time concurrent with the transfer of control, or as amounts were billed to the customer under an available practical expedient. The following table provides information about assets and liabilities from contracts with customers: (in thousands) May 31, 2021 August 31, 2020 Contract assets (included in accounts receivable) $ 67,906 $ 53,275 Contract liabilities (included in accrued expenses and other payables) 22,151 25,450 The entire contract liability as of August 31, 2020 was recognized as revenue in the nine months ended May 31, 2021. Remaining Performance Obligations Remaining performance obligations represent the transaction price of fabricated product contracts where revenue is recognized using an input or output measure for which work has not yet been performed. As of May 31, 2021, $776.7 million was allocated to remaining performance obligations in the North America segment related to those contracts. |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
May 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | NOTE 5. INVENTORIES, NET The majority of the Company's inventories are in the form of semi-finished and finished goods. Under the Company’s business model, products are sold to external customers in various stages, from semi-finished billets through fabricated steel, leading these categories to be combined. As such, at May 31, 2021 and August 31, 2020, work in process inventories were immaterial. At May 31, 2021 and August 31, 2020, the Company's raw materials inventories were $238.0 million and $123.9 million, respectively. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 9 Months Ended |
May 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangibles | Goodwill by reportable segment at May 31, 2021 is detailed in the following table: (in thousands) North America Europe Consolidated Goodwill, gross* $ 71,941 $ 4,590 $ 76,531 Accumulated impairment losses* (10,036) (164) (10,200) Goodwill, net* $ 61,905 $ 4,426 $ 66,331 _________________ * The change in balance from August 31, 2020 was immaterial. The total gross carrying amounts of the Company's intangible assets subject to amortization were $21.9 million and $22.1 million, and the total net carrying amounts were $11.0 million and $12.6 million at May 31, 2021 and August 31, 2020, respectively. These assets were included in other noncurrent assets on the Company's condensed consolidated balance sheets. Intangible amortization expense from continuing operations related to such intangible assets was immaterial for the three and nine months ended May 31, 2021 and 2020. Excluding goodwill, the Company did not have any significant intangible assets with indefinite lives at May 31, 2021. At May 31, 2021 and August 31, 2020, the net carrying amount of the acquired unfavorable contract backlog liability was $1.5 million and $6.0 million, respectively. Amortization of the acquired unfavorable contract backlog was $1.5 million and $4.5 million for the three and nine months ended May 31, 2021, respectively, and $4.4 million and $18.7 million for the corresponding periods, and was recorded as an increase to net sales in the Company’s condensed consolidated statements of earnings. |
LEASES
LEASES | 9 Months Ended |
May 31, 2021 | |
Leases [Abstract] | |
Operating Leases | The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheets: (in thousands) Classification in Condensed Consolidated Balance Sheets May 31, 2021 August 31, 2020 Assets: Operating assets Other noncurrent assets $ 114,774 $ 114,905 Finance assets Property, plant and equipment, net 54,501 50,642 Total leased assets $ 169,275 $ 165,547 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 26,799 $ 27,604 Long-term Other noncurrent liabilities 96,063 95,810 Total operating lease liabilities 122,862 123,414 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 15,613 14,373 Long-term Long-term debt 36,757 35,851 Total finance lease liabilities 52,370 50,224 Total lease liabilities $ 175,232 $ 173,638 The components of lease cost were as follows: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2021 2020 2021 2020 Operating lease expense $ 8,377 $ 9,129 $ 25,750 $ 26,734 Finance lease expense: Amortization of assets 3,270 3,343 9,729 8,228 Interest on lease liabilities 555 456 1,673 1,322 Total finance lease expense 3,825 3,799 11,402 9,550 Variable and short-term lease expense 4,584 4,233 13,871 12,547 Total lease expense $ 16,786 $ 17,161 $ 51,023 $ 48,831 The weighted average remaining lease term and discount rate for operating and finance leases are presented in the following table: May 31, 2021 August 31, 2020 Weighted average remaining lease term (years) Operating leases 6.4 6.3 Finance leases 3.7 3.8 Weighted average discount rate Operating leases 4.476 % 4.283 % Finance leases 4.194 % 4.270 % Cash flow and other information related to leases is included in the following table: Nine Months Ended May 31, (in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 25,862 $ 27,003 Operating cash outflows from finance leases 1,665 1,243 Financing cash outflows from finance leases 11,706 9,607 Right of use assets obtained in exchange for lease obligations: Operating leases $ 23,019 $ 38,363 Finance leases 14,002 16,277 Future maturities of lease liabilities at May 31, 2021 are presented in the following table: (in thousands) Operating Leases Finance Leases Year 1 $ 32,255 $ 17,495 Year 2 26,992 15,228 Year 3 21,553 12,637 Year 4 16,576 8,229 Year 5 12,303 2,238 Thereafter 32,922 758 Total lease payments 142,601 56,585 Less imputed interest 19,739 4,215 Present value of lease liabilities $ 122,862 $ 52,370 |
Finance Leases | The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheets: (in thousands) Classification in Condensed Consolidated Balance Sheets May 31, 2021 August 31, 2020 Assets: Operating assets Other noncurrent assets $ 114,774 $ 114,905 Finance assets Property, plant and equipment, net 54,501 50,642 Total leased assets $ 169,275 $ 165,547 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 26,799 $ 27,604 Long-term Other noncurrent liabilities 96,063 95,810 Total operating lease liabilities 122,862 123,414 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 15,613 14,373 Long-term Long-term debt 36,757 35,851 Total finance lease liabilities 52,370 50,224 Total lease liabilities $ 175,232 $ 173,638 The components of lease cost were as follows: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2021 2020 2021 2020 Operating lease expense $ 8,377 $ 9,129 $ 25,750 $ 26,734 Finance lease expense: Amortization of assets 3,270 3,343 9,729 8,228 Interest on lease liabilities 555 456 1,673 1,322 Total finance lease expense 3,825 3,799 11,402 9,550 Variable and short-term lease expense 4,584 4,233 13,871 12,547 Total lease expense $ 16,786 $ 17,161 $ 51,023 $ 48,831 The weighted average remaining lease term and discount rate for operating and finance leases are presented in the following table: May 31, 2021 August 31, 2020 Weighted average remaining lease term (years) Operating leases 6.4 6.3 Finance leases 3.7 3.8 Weighted average discount rate Operating leases 4.476 % 4.283 % Finance leases 4.194 % 4.270 % Cash flow and other information related to leases is included in the following table: Nine Months Ended May 31, (in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 25,862 $ 27,003 Operating cash outflows from finance leases 1,665 1,243 Financing cash outflows from finance leases 11,706 9,607 Right of use assets obtained in exchange for lease obligations: Operating leases $ 23,019 $ 38,363 Finance leases 14,002 16,277 Future maturities of lease liabilities at May 31, 2021 are presented in the following table: (in thousands) Operating Leases Finance Leases Year 1 $ 32,255 $ 17,495 Year 2 26,992 15,228 Year 3 21,553 12,637 Year 4 16,576 8,229 Year 5 12,303 2,238 Thereafter 32,922 758 Total lease payments 142,601 56,585 Less imputed interest 19,739 4,215 Present value of lease liabilities $ 122,862 $ 52,370 |
CREDIT ARRANGEMENTS
CREDIT ARRANGEMENTS | 9 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
Credit arrangements | Long-term debt was as follows: (in thousands) Weighted Average Interest Rate as of May 31, 2021 May 31, 2021 August 31, 2020 2031 Notes 3.875% $ 300,000 $ — 2027 Notes 5.375% 300,000 300,000 2026 Notes 5.750% — 350,000 2023 Notes 4.875% 330,000 330,000 Poland Term Loan 1.710% 54,606 40,713 Short-term borrowings 1.000% 28,900 — Other 5.100% 19,492 21,329 Finance leases 52,370 50,224 Total debt 1,085,368 1,092,266 Less debt issuance costs 8,504 8,581 Total amounts outstanding 1,076,864 1,083,685 Less current maturities of long-term debt and short-term borrowings 56,735 18,149 Long-term debt $ 1,020,129 $ 1,065,536 In February 2021, the Company issued $300.0 million of 3.875% Senior Notes due February 2031 (the "2031 Notes"). Issuance costs associated with the 2031 Notes were approximately $4.9 million in the nine month period ended May 31, 2021. Interest on the 2031 Notes is payable semiannually. In May 2018, the Company issued $350.0 million of 5.750% Senior Notes due April 2026 (the "2026 Notes"). In February 2021, the Company accepted for purchase approximately $77.8 million of the outstanding principal amount of the 2026 Notes through a cash tender offer. Following the expiration of the cash tender offer on February 18, 2021, the Company redeemed the remaining outstanding principal amount of the 2026 Notes. In the nine months ended May 31, 2021, the Company recognized a $16.8 million loss on debt extinguishment related to the retirement of the 2026 Notes. In March 2021, the Company entered into a Fifth Amended and Restated Credit Agreement (as amended, the "Credit Agreement") with a revolving credit facility (the "Revolver") of $400.0 million and a maturity date in March 2026, replacing the Fourth Amended and Restated Credit Agreement with a revolving credit facility of $350.0 million and a maturity date in June 2022. The Company had no amounts drawn under the Revolver or the previous revolving credit facility at May 31, 2021 or August 31, 2020. The availability under the Revolver and the previous revolving credit facility was reduced by outstanding stand-by letters of credit totaling $3.0 million at May 31, 2021 and August 31, 2020. The Company has a Term Loan facility (the "Poland Term Loan") through its subsidiary, CMC Poland Sp. z.o.o. ("CMCP"), upon which an incremental principal amount of PLN 50.0 million, or $13.7 million, was drawn in March 2021. At May 31, 2021, the maximum amount available under the facility, PLN 200.0 million, or $54.6 million, was outstanding, compared to PLN 150.0 million, or $40.7 million, outstanding as of August 31, 2020. During the third quarter of 2021, the Company amended certain terms of the credit facilities in Poland through its subsidiary, CMCP, reducing the total credit facilities from PLN 275.0 million to PLN 250.0 million, or $68.3 million, as of May 31, 2021, and extending the expiration date from March 2022 to March 2024. No amounts were outstanding under these facilities as of May 31, 2021 or August 31, 2020. The available balance of these credit facilities was reduced by outstanding stand-by letters of credit, guarantees, and/or other financial assurance instruments, which totaled $0.9 million and $0.8 million at May 31, 2021 and August 31, 2020, respectively. The Company's debt agreements require compliance with certain non-financial and financial covenants, including an interest coverage ratio and a debt to capitalization ratio. At May 31, 2021, the Company was in compliance with all covenants contained in its debt agreements. Accounts Receivable Facilities In April 2021, the Company amended certain terms of the U.S. trade accounts receivable facility (the "U.S. Facility"), reducing the maximum facility from $200 million to $150 million and extending the expiration date from November 2021 to March 2023. The Company had no advance payments outstanding under the U.S. Facility at May 31, 2021 or August 31, 2020. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
May 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | The Company's global operations and product lines expose it to risks from fluctuations in metal commodity prices, foreign currency exchange rates, interest rates and natural gas, electricity and other energy prices. 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 price volatility in these commodities, (ii) foreign currency forward contracts that match the expected settlements for purchases and sales denominated in foreign currencies and (iii) energy derivatives to mitigate the risk related to price volatility of electricity and natural gas. At May 31, 2021, the notional values of the Company's foreign currency and commodity commitments were $274.1 million and $239.4 million, respectively. At August 31, 2020, the notional values of the Company's foreign currency and commodity contract commitments were $138.5 million and $195.8 million, respectively. The following table provides information regarding the Company's commodity contract commitments at May 31, 2021: Commodity Long/Short Total Aluminum Long 4,150 MT Aluminum Short 1,750 MT Copper Long 624 MT Copper Short 8,981 MT Electricity Long 1,917,000 MW(h) _________________ MT = Metric Ton MW(h) = Megawatt hour The Company designates only those contracts which closely match the terms of the underlying transaction as hedges for accounting purposes. Certain foreign currency and commodity contracts were not designated as hedges for accounting purposes, although management believes they are essential economic hedges. Commodity derivatives not designated as hedging instrument s resulted in a loss, before income taxes, of $7.9 million and $24.5 million, in the three and nine months ended May 31, 2021, respectively, and a gain , before income taxes, of $1.5 million and $1.9 million in the three and nine months ended May 31, 2020, respectively, primarily recorded in cost of goods sold within the condensed consolidated statements of earnings. Commodity derivatives accounted for as cash flow hedging instruments resulted in a net gain of $12.2 million and $21.0 million, in the three and nine months ended May 31, 2021, respectively, and a net loss of $5.2 million and $8.1 million, in the three and nine |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
May 31, 2021 | |
Fair Value Disclosures [Abstract] | |
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 within the Summary of Significant Accounting Policies footnote in the 2020 Form 10-K. 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) May 31, 2021 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 415,850 $ 415,850 $ — $ — Commodity derivative assets (2) 11,193 712 — 10,481 Foreign exchange derivative assets (2) 5,482 — 5,482 — Liabilities: Commodity derivative liabilities (2) 6,325 6,325 — — Foreign exchange derivative liabilities (2) 1,236 — 1,236 — Fair Value Measurements at Reporting Date Using (in thousands) August 31, 2020 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 449,824 $ 449,824 $ — $ — Commodity derivative assets (2) 202 202 — — Foreign exchange derivative assets (2) 1,484 — 1,484 — Liabilities: Commodity derivative liabilities (2) 19,000 3,993 — 15,007 Foreign exchange derivative liabilities (2) 459 — 459 — _________________ (1) Investment deposit accounts are short-term in nature, and the value is determined by principal plus interest. 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 New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Derivatives classified as Level 3 are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 9, Derivatives. The fair value estimate of the Level 3 commodity derivative is based on an internally developed discounted cash flow model primarily utilizing unobservable inputs in which there is little or no market data. The Company forecasts future energy rates using a range of historical prices ("floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow model. May 31, 2021 Unobservable Inputs Low High Average Floating rate (PLN) 217.38 296.36 251.10 May 31, 2020 Unobservable Inputs Low High Average Floating rate (PLN) 151.74 265.00 207.50 Below is a reconciliation of the beginning and ending balances of the Level 3 commodity derivative recognized in the condensed consolidated statements of comprehensive income. The fluctuation in energy rates over time may cause volatility in the fair value estimate and is the primary reason for unrealized gains and losses included in other comprehensive income ("OCI") in the three and nine months ended May 31, 2021 and 2020. (in thousands) Three Months Ended May 31, 2021 Balance, March 1, 2021 $ (4,285) Total gains, realized and unrealized Unrealized holding gain (1) 15,459 Reclassification for gain included in net earnings (2) (693) Balance, May 31, 2021 $ 10,481 (in thousands) Nine Months Ended May 31, 2021 Balance, September 1, 2020 $ (15,007) Total gains, realized and unrealized Unrealized holding gain (1) 26,434 Reclassification for gain included in net earnings (2) (946) Balance, May 31, 2021 $ 10,481 (in thousands) Three Months Ended May 31, 2020 Balance, March 1, 2020 $ (3,586) Total losses, realized and unrealized Unrealized holding loss (1) (6,443) Reclassification for loss included in net earnings (2) — Balance, May 31, 2020 $ (10,029) (in thousands) Nine Months Ended May 31, 2020 Balance, September 1, 2019 $ — New commodity contract 1,083 Total losses, realized and unrealized Unrealized holding loss (1) (11,112) Reclassification for loss included in net earnings (2) — Balance, May 31, 2020 $ (10,029) ________________ (1) Unrealized holding gains/(losses) are included in OCI in the condensed consolidated statements of comprehensive income. (2) (Gains)/losses included in net earnings are recorded in cost of goods sold in the condensed consolidated statements of earnings. There were no material non-recurring fair value remeasurements during the three and nine months ended May 31, 2021 or 2020. The carrying values of the Company's short-term items approximate 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 condensed consolidated balance sheets were as follows: May 31, 2021 August 31, 2020 (in thousands) Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value 2031 Notes (1) Level 2 $ 300,000 $ 298,455 $ — $ — 2027 Notes (1) Level 2 300,000 318,003 300,000 319,377 2023 Notes (1) Level 2 330,000 347,912 330,000 345,335 Poland Term Loan (2) Level 2 54,606 54,606 40,713 40,713 Short-term borrowings (2) Level 2 28,900 28,900 — — 2026 Notes (1) Level 2 — — 350,000 367,374 _________________ (1) The fair values of the Notes were determined based on indicated market values. (2) The Poland Term Loan and short-term borrowings contain variable interest rates, and as a result, the carrying values approximate fair value. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
May 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation plans | The Company's stock-based compensation plans are described in Note 15, Stock-Based Compensation Plans, to the consolidated financial statements in the 2020 Form 10-K. In general, restricted stock units granted in 2021 vest ratably over a period of three years. Subject to the achievement of performance targets established by the Compensation Committee of CMC's Board of Directors, performance stock units granted in 2021 vest after a period of three years. During the nine months ended May 31, 2021 and 2020, the Company granted the following awards under its stock-based compensation plans: May 31, 2021 May 31, 2020 (in thousands, except per share data) Shares Granted Weighted Average Grant Date Fair Value Shares Granted Weighted Average Grant Date Fair Value Equity method 1,512 $ 20.51 1,521 $ 18.32 Liability method 324 N/A 426 N/A During the three and nine months ended May 31, 2021, the Company recorded expense of $3.2 million and $5.0 million, respectively, for mark-to-market adjustments on liability awards, and recorded immaterial mark-to-market adjustments on liability awards for the three and nine months ended May 31, 2020. At May 31, 2021, the Company had outstanding 711,148 equivalent shares accounted for under the liability method. The Company expects 675,590 equivalent shares to vest. The following table summarizes total stock-based compensation expense, including fair value remeasurements, which was primarily included in selling, general and administrative expenses on the Company's condensed consolidated statements of earnings: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2021 2020 2021 2020 Stock-based compensation expense $ 13,800 $ 6,170 $ 35,558 $ 21,975 |
STOCKHOLDERS EQUITY AND EARNING
STOCKHOLDERS EQUITY AND EARNINGS PER SHARE | 9 Months Ended |
May 31, 2021 | |
Earnings Per Share [Abstract] | |
Stockholder's equity and earnings per share | The calculations of basic and diluted earnings per share from continuing operations were as follows: Three Months Ended May 31, Nine Months Ended May 31, (in thousands, except share data) 2021 2020 2021 2020 Earnings from continuing operations $ 130,408 $ 64,169 $ 260,552 $ 210,520 Basic earnings per share: Shares outstanding for basic earnings per share 120,613,652 119,192,962 120,241,579 118,828,870 Basic earnings per share from continuing operations $ 1.08 $ 0.54 $ 2.17 $ 1.77 Diluted earnings per share: Shares outstanding for basic earnings per share 120,613,652 119,192,962 120,241,579 118,828,870 Effect of dilutive securities: Stock-based incentive/purchase plans 1,580,003 1,085,779 1,610,565 1,448,867 Shares outstanding for diluted earnings per share 122,193,655 120,278,741 121,852,144 120,277,737 Diluted earnings per share from continuing operations $ 1.07 $ 0.53 $ 2.14 $ 1.75 Anti-dilutive shares not included above were immaterial for all periods presented. 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. During the first quarter of 2015, CMC's Board of Directors authorized a share repurchase program under which CMC may repurchase up to $100.0 million of shares of common stock. During the nine months ended May 31, 2021, CMC did not repurchase any shares of common stock. CMC had remaining authorization to repurchase $27.6 million of common stock at May 31, 2021. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 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. 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 at several sites, none of which are owned by the Company, and may be obligated under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") or similar state statutes 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 May 31, 2021 and August 31, 2020, the amounts accrued for cleanup and remediation costs in connection with CERCLA sites were immaterial. The estimation process is based on currently available information which is, in many cases, preliminary and incomplete. Total accrued environmental liabilities, including CERCLA sites, were $6.1 million and $3.4 million at May 31, 2021 and August 31, 2020, respectively, of which $2.5 million and $2.7 million were classified as other long-term liabilities at May 31, 2021 and August 31, 2020, respectively. These amounts have not been discounted to their present values. Due to evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties 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 condensed 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. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
May 31, 2021 | |
Segment Reporting [Abstract] | |
Business segments | The Company structures its business into two reportable segments: North America and Europe. See Note 1, Nature of Operations, in the 2020 Form 10-K for more information about the reportable segments, including the types of products and services from which each reportable segment derives its net sales. Corporate and Other contains earnings or losses on assets and liabilities related to the Company's Benefit Restoration Plan assets and short-term investments, expenses of the Company's corporate headquarters, interest expense related to its long-term debt and intercompany eliminations. The following is a summary of certain financial information from continuing operations by reportable segment: Three Months Ended May 31, 2021 (in thousands) North America Europe Corporate and Other Continuing Operations Net sales $ 1,558,068 $ 284,107 $ 2,866 $ 1,845,041 Adjusted EBITDA 207,330 50,005 (36,214) 221,121 Nine Months Ended May 31, 2021 (in thousands) North America Europe Corporate and Other Continuing Operations Net sales $ 4,010,567 $ 680,769 $ 7,778 $ 4,699,114 Adjusted EBITDA 534,576 80,582 (108,671) 506,487 Total assets at May 31, 2021 3,089,579 675,880 625,616 4,391,075 Three Months Ended May 31, 2020 (in thousands) North America Europe Corporate and Other Continuing Operations Net sales $ 1,167,081 $ 173,817 $ 785 $ 1,341,683 Adjusted EBITDA 159,394 14,270 (26,882) 146,782 Nine Months Ended May 31, 2020 (in thousands) North America Europe Corporate and Other Continuing Operations Net sales $ 3,545,084 $ 519,285 $ 2,985 $ 4,067,354 Adjusted EBITDA 486,957 39,080 (81,729) 444,308 Total assets at August 31, 2020 * 2,862,805 532,850 686,073 4,081,728 _________________ *Total assets listed in Corporate and Other at August 31, 2020 includes assets from discontinued operations. The following table presents a reconciliation of earnings from continuing operations to adjusted EBITDA from continuing operations: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2021 2020 2021 2020 Earnings from continuing operations $ 130,408 $ 64,169 $ 260,552 $ 210,520 Interest expense 11,965 15,409 40,245 47,875 Income taxes 38,175 23,804 80,709 73,981 Depreciation and amortization 41,804 41,765 125,176 124,095 Amortization of acquired unfavorable contract backlog (1,508) (4,348) (4,540) (18,676) Asset impairments 277 5,983 4,345 6,513 Adjusted EBITDA $ 221,121 $ 146,782 $ 506,487 $ 444,308 Disaggregation of Revenue The following tables display revenue by reportable segment from external customers, disaggregated by major source. The Company believes disaggregating by these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended May 31, 2021 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 346,614 $ 5,904 $ — $ 352,518 Steel products 626,084 215,088 — 841,172 Downstream products 475,714 56,444 — 532,158 Other 109,656 6,277 3,260 119,193 Net sales-unaffiliated customers 1,558,068 283,713 3,260 1,845,041 Intersegment net sales, eliminated on consolidation — 394 (394) — Net sales $ 1,558,068 $ 284,107 $ 2,866 $ 1,845,041 Nine Months Ended May 31, 2021 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 811,863 $ 13,509 $ — $ 825,372 Steel products 1,597,942 524,025 — 2,121,967 Downstream products 1,313,140 124,679 — 1,437,819 Other 287,622 17,244 9,090 313,956 Net sales-unaffiliated customers 4,010,567 679,457 9,090 4,699,114 Intersegment net sales, eliminated on consolidation — 1,312 (1,312) — Net sales $ 4,010,567 $ 680,769 $ 7,778 $ 4,699,114 Three Months Ended May 31, 2020 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 159,174 $ 2,499 $ — $ 161,673 Steel products 420,169 132,741 — 552,910 Downstream products 494,519 32,885 — 527,404 Other 93,219 5,340 1,137 99,696 Net sales-unaffiliated customers 1,167,081 173,465 1,137 1,341,683 Intersegment net sales, eliminated on consolidation — 352 (352) — Net sales $ 1,167,081 $ 173,817 $ 785 $ 1,341,683 Nine Months Ended May 31, 2020 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 534,109 $ 7,112 $ — $ 541,221 Steel products 1,298,980 410,010 — 1,708,990 Downstream products 1,436,011 84,843 — 1,520,854 Other 275,984 16,196 4,109 296,289 Net sales-unaffiliated customers 3,545,084 518,161 4,109 4,067,354 Intersegment net sales, eliminated on consolidation — 1,124 (1,124) — Net sales $ 3,545,084 $ 519,285 $ 2,985 $ 4,067,354 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
May 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting principles | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K for the year ended August 31, 2020 ("2020 Form 10-K") filed by Commercial Metals Company ("CMC," and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission (the "SEC") and include all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheets and the condensed consolidated statements of earnings, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the consolidated financial statements included in the 2020 Form 10-K. The results of operations for the three and nine month periods are not necessarily indicative of the results to be expected for the full fiscal year. Any reference in this Form 10-Q to the "corresponding period" relates to the relevant three or nine month period ended May 31, 2020. Any reference in this Form 10-Q to a year refers to the fiscal year ended August 31st of that year, unless otherwise noted. |
Fair value measurement | The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined within the Summary of Significant Accounting Policies footnote in the 2020 Form 10-K. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
May 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following tables reflect the changes in accumulated other comprehensive income (loss) ("AOCI"): Three Months Ended May 31, 2021 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, March 1, 2021 $ (94,856) $ (2,760) $ (4,524) $ (102,140) Other comprehensive income (loss) before reclassifications 11,775 14,056 (14) 25,817 Amounts reclassified from AOCI — (719) — (719) Income tax benefit — (1,808) — (1,808) Net other comprehensive income (loss) 11,775 11,529 (14) 23,290 Balance, May 31, 2021 $ (83,081) $ 8,769 $ (4,538) $ (78,850) Nine Months Ended May 31, 2021 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, September 1, 2020 $ (87,933) $ (11,334) $ (4,497) $ (103,764) Other comprehensive income (loss) before reclassifications 4,852 25,028 (48) 29,832 Amounts reclassified from AOCI — (1,106) — (1,106) Income tax expense (benefit) — (3,819) 7 (3,812) Net other comprehensive income (loss) 4,852 20,103 (41) 24,914 Balance, May 31, 2021 $ (83,081) $ 8,769 $ (4,538) $ (78,850) Three Months Ended May 31, 2020 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, March 1, 2020 $ (115,642) $ (1,998) $ (3,750) $ (121,390) Other comprehensive loss before reclassifications (8,037) (6,350) (10) (14,397) Amounts reclassified to (from) AOCI 2 (98) — (96) Income tax expense — 1,224 2 1,226 Net other comprehensive loss (8,035) (5,224) (8) (13,267) Balance, May 31, 2020 $ (123,677) $ (7,222) $ (3,758) $ (134,657) Nine Months Ended May 31, 2020 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, September 1, 2019 $ (121,498) $ 1,106 $ (3,734) $ (124,126) Other comprehensive loss before reclassifications (2,179) (9,969) (34) (12,182) Amounts reclassified from AOCI — (312) — (312) Income tax expense — 1,953 10 1,963 Net other comprehensive loss (2,179) (8,328) (24) (10,531) Balance, May 31, 2020 $ (123,677) $ (7,222) $ (3,758) $ (134,657) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
May 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Information avout Assets and Liabilities from Contracts with Customers | The following table provides information about assets and liabilities from contracts with customers: (in thousands) May 31, 2021 August 31, 2020 Contract assets (included in accounts receivable) $ 67,906 $ 53,275 Contract liabilities (included in accrued expenses and other payables) 22,151 25,450 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
May 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | Goodwill by reportable segment at May 31, 2021 is detailed in the following table: (in thousands) North America Europe Consolidated Goodwill, gross* $ 71,941 $ 4,590 $ 76,531 Accumulated impairment losses* (10,036) (164) (10,200) Goodwill, net* $ 61,905 $ 4,426 $ 66,331 _________________ * The change in balance from August 31, 2020 was immaterial. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
May 31, 2021 | |
Leases [Abstract] | |
Schedule of Balance Sheet Components of Leases | The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheets: (in thousands) Classification in Condensed Consolidated Balance Sheets May 31, 2021 August 31, 2020 Assets: Operating assets Other noncurrent assets $ 114,774 $ 114,905 Finance assets Property, plant and equipment, net 54,501 50,642 Total leased assets $ 169,275 $ 165,547 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 26,799 $ 27,604 Long-term Other noncurrent liabilities 96,063 95,810 Total operating lease liabilities 122,862 123,414 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 15,613 14,373 Long-term Long-term debt 36,757 35,851 Total finance lease liabilities 52,370 50,224 Total lease liabilities $ 175,232 $ 173,638 |
Lease Cost | The components of lease cost were as follows: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2021 2020 2021 2020 Operating lease expense $ 8,377 $ 9,129 $ 25,750 $ 26,734 Finance lease expense: Amortization of assets 3,270 3,343 9,729 8,228 Interest on lease liabilities 555 456 1,673 1,322 Total finance lease expense 3,825 3,799 11,402 9,550 Variable and short-term lease expense 4,584 4,233 13,871 12,547 Total lease expense $ 16,786 $ 17,161 $ 51,023 $ 48,831 The weighted average remaining lease term and discount rate for operating and finance leases are presented in the following table: May 31, 2021 August 31, 2020 Weighted average remaining lease term (years) Operating leases 6.4 6.3 Finance leases 3.7 3.8 Weighted average discount rate Operating leases 4.476 % 4.283 % Finance leases 4.194 % 4.270 % |
Cash Flow and Other Information Related to Leases | Nine Months Ended May 31, (in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 25,862 $ 27,003 Operating cash outflows from finance leases 1,665 1,243 Financing cash outflows from finance leases 11,706 9,607 Right of use assets obtained in exchange for lease obligations: Operating leases $ 23,019 $ 38,363 Finance leases 14,002 16,277 |
Maturity of Operating Lease Liabilities | aturities of lease liabilities at May 31, 2021 are presented in the following table: (in thousands) Operating Leases Finance Leases Year 1 $ 32,255 $ 17,495 Year 2 26,992 15,228 Year 3 21,553 12,637 Year 4 16,576 8,229 Year 5 12,303 2,238 Thereafter 32,922 758 Total lease payments 142,601 56,585 Less imputed interest 19,739 4,215 Present value of lease liabilities $ 122,862 $ 52,370 |
Maturity of Finance Lease Liabilities | aturities of lease liabilities at May 31, 2021 are presented in the following table: (in thousands) Operating Leases Finance Leases Year 1 $ 32,255 $ 17,495 Year 2 26,992 15,228 Year 3 21,553 12,637 Year 4 16,576 8,229 Year 5 12,303 2,238 Thereafter 32,922 758 Total lease payments 142,601 56,585 Less imputed interest 19,739 4,215 Present value of lease liabilities $ 122,862 $ 52,370 |
CREDIT ARRANGEMENTS (Tables)
CREDIT ARRANGEMENTS (Tables) | 9 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term debt, including the deferred gain from the termination of the interest rate swaps | Long-term debt was as follows: (in thousands) Weighted Average Interest Rate as of May 31, 2021 May 31, 2021 August 31, 2020 2031 Notes 3.875% $ 300,000 $ — 2027 Notes 5.375% 300,000 300,000 2026 Notes 5.750% — 350,000 2023 Notes 4.875% 330,000 330,000 Poland Term Loan 1.710% 54,606 40,713 Short-term borrowings 1.000% 28,900 — Other 5.100% 19,492 21,329 Finance leases 52,370 50,224 Total debt 1,085,368 1,092,266 Less debt issuance costs 8,504 8,581 Total amounts outstanding 1,076,864 1,083,685 Less current maturities of long-term debt and short-term borrowings 56,735 18,149 Long-term debt $ 1,020,129 $ 1,065,536 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
May 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity contract commitments | The following table provides information regarding the Company's commodity contract commitments at May 31, 2021: Commodity Long/Short Total Aluminum Long 4,150 MT Aluminum Short 1,750 MT Copper Long 624 MT Copper Short 8,981 MT Electricity Long 1,917,000 MW(h) _________________ MT = Metric Ton |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
May 31, 2021 | |
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) May 31, 2021 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 415,850 $ 415,850 $ — $ — Commodity derivative assets (2) 11,193 712 — 10,481 Foreign exchange derivative assets (2) 5,482 — 5,482 — Liabilities: Commodity derivative liabilities (2) 6,325 6,325 — — Foreign exchange derivative liabilities (2) 1,236 — 1,236 — Fair Value Measurements at Reporting Date Using (in thousands) August 31, 2020 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 449,824 $ 449,824 $ — $ — Commodity derivative assets (2) 202 202 — — Foreign exchange derivative assets (2) 1,484 — 1,484 — Liabilities: Commodity derivative liabilities (2) 19,000 3,993 — 15,007 Foreign exchange derivative liabilities (2) 459 — 459 — _________________ (1) Investment deposit accounts are short-term in nature, and the value is determined by principal plus interest. 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 New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Derivatives classified as Level 3 are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 9, Derivatives. The fair value estimate of the Level 3 commodity derivative is based on an internally developed discounted cash flow model primarily utilizing unobservable inputs in which there is little or no market data. The Company forecasts future energy rates using a range of historical prices ("floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow model. May 31, 2021 Unobservable Inputs Low High Average Floating rate (PLN) 217.38 296.36 251.10 May 31, 2020 Unobservable Inputs Low High Average Floating rate (PLN) 151.74 265.00 207.50 |
Fair value, net derivative asset (liability) measured on recurring basis, unobservable input reconciliation | Below is a reconciliation of the beginning and ending balances of the Level 3 commodity derivative recognized in the condensed consolidated statements of comprehensive income. The fluctuation in energy rates over time may cause volatility in the fair value estimate and is the primary reason for unrealized gains and losses included in other comprehensive income ("OCI") in the three and nine months ended May 31, 2021 and 2020. (in thousands) Three Months Ended May 31, 2021 Balance, March 1, 2021 $ (4,285) Total gains, realized and unrealized Unrealized holding gain (1) 15,459 Reclassification for gain included in net earnings (2) (693) Balance, May 31, 2021 $ 10,481 (in thousands) Nine Months Ended May 31, 2021 Balance, September 1, 2020 $ (15,007) Total gains, realized and unrealized Unrealized holding gain (1) 26,434 Reclassification for gain included in net earnings (2) (946) Balance, May 31, 2021 $ 10,481 (in thousands) Three Months Ended May 31, 2020 Balance, March 1, 2020 $ (3,586) Total losses, realized and unrealized Unrealized holding loss (1) (6,443) Reclassification for loss included in net earnings (2) — Balance, May 31, 2020 $ (10,029) (in thousands) Nine Months Ended May 31, 2020 Balance, September 1, 2019 $ — New commodity contract 1,083 Total losses, realized and unrealized Unrealized holding loss (1) (11,112) Reclassification for loss included in net earnings (2) — Balance, May 31, 2020 $ (10,029) ________________ (1) Unrealized holding gains/(losses) are included in OCI in the condensed consolidated statements of comprehensive income. (2) (Gains)/losses included in net earnings are recorded in cost of goods sold in the condensed consolidated statements of earnings. |
Financial assets and liabilities not required to be measured at fair value | The carrying values and estimated fair values of the Company's financial assets and liabilities that are not required to be measured at fair value on the condensed consolidated balance sheets were as follows: May 31, 2021 August 31, 2020 (in thousands) Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value 2031 Notes (1) Level 2 $ 300,000 $ 298,455 $ — $ — 2027 Notes (1) Level 2 300,000 318,003 300,000 319,377 2023 Notes (1) Level 2 330,000 347,912 330,000 345,335 Poland Term Loan (2) Level 2 54,606 54,606 40,713 40,713 Short-term borrowings (2) Level 2 28,900 28,900 — — 2026 Notes (1) Level 2 — — 350,000 367,374 _________________ (1) The fair values of the Notes were determined based on indicated market values. (2) The Poland Term Loan and short-term borrowings contain variable interest rates, and as a result, the carrying values approximate fair value. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
May 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Based Awards Granted | During the nine months ended May 31, 2021 and 2020, the Company granted the following awards under its stock-based compensation plans: May 31, 2021 May 31, 2020 (in thousands, except per share data) Shares Granted Weighted Average Grant Date Fair Value Shares Granted Weighted Average Grant Date Fair Value Equity method 1,512 $ 20.51 1,521 $ 18.32 Liability method 324 N/A 426 N/A |
Schedule of Stock-based Compensation Expense | The following table summarizes total stock-based compensation expense, including fair value remeasurements, which was primarily included in selling, general and administrative expenses on the Company's condensed consolidated statements of earnings: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2021 2020 2021 2020 Stock-based compensation expense $ 13,800 $ 6,170 $ 35,558 $ 21,975 |
STOCKHOLDERS_ EQUITY AND EARNIN
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE (Tables) | 9 Months Ended |
May 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculations of the basic and diluted earnings per share from continuing operations | The calculations of basic and diluted earnings per share from continuing operations were as follows: Three Months Ended May 31, Nine Months Ended May 31, (in thousands, except share data) 2021 2020 2021 2020 Earnings from continuing operations $ 130,408 $ 64,169 $ 260,552 $ 210,520 Basic earnings per share: Shares outstanding for basic earnings per share 120,613,652 119,192,962 120,241,579 118,828,870 Basic earnings per share from continuing operations $ 1.08 $ 0.54 $ 2.17 $ 1.77 Diluted earnings per share: Shares outstanding for basic earnings per share 120,613,652 119,192,962 120,241,579 118,828,870 Effect of dilutive securities: Stock-based incentive/purchase plans 1,580,003 1,085,779 1,610,565 1,448,867 Shares outstanding for diluted earnings per share 122,193,655 120,278,741 121,852,144 120,277,737 Diluted earnings per share from continuing operations $ 1.07 $ 0.53 $ 2.14 $ 1.75 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
May 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of certain financial information from continuing operations by reportable segment | The following is a summary of certain financial information from continuing operations by reportable segment: Three Months Ended May 31, 2021 (in thousands) North America Europe Corporate and Other Continuing Operations Net sales $ 1,558,068 $ 284,107 $ 2,866 $ 1,845,041 Adjusted EBITDA 207,330 50,005 (36,214) 221,121 Nine Months Ended May 31, 2021 (in thousands) North America Europe Corporate and Other Continuing Operations Net sales $ 4,010,567 $ 680,769 $ 7,778 $ 4,699,114 Adjusted EBITDA 534,576 80,582 (108,671) 506,487 Total assets at May 31, 2021 3,089,579 675,880 625,616 4,391,075 Three Months Ended May 31, 2020 (in thousands) North America Europe Corporate and Other Continuing Operations Net sales $ 1,167,081 $ 173,817 $ 785 $ 1,341,683 Adjusted EBITDA 159,394 14,270 (26,882) 146,782 Nine Months Ended May 31, 2020 (in thousands) North America Europe Corporate and Other Continuing Operations Net sales $ 3,545,084 $ 519,285 $ 2,985 $ 4,067,354 Adjusted EBITDA 486,957 39,080 (81,729) 444,308 Total assets at August 31, 2020 * 2,862,805 532,850 686,073 4,081,728 _________________ |
Reconciliations of earnings from continuing operations to adjusted operating profit | The following table presents a reconciliation of earnings from continuing operations to adjusted EBITDA from continuing operations: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2021 2020 2021 2020 Earnings from continuing operations $ 130,408 $ 64,169 $ 260,552 $ 210,520 Interest expense 11,965 15,409 40,245 47,875 Income taxes 38,175 23,804 80,709 73,981 Depreciation and amortization 41,804 41,765 125,176 124,095 Amortization of acquired unfavorable contract backlog (1,508) (4,348) (4,540) (18,676) Asset impairments 277 5,983 4,345 6,513 Adjusted EBITDA $ 221,121 $ 146,782 $ 506,487 $ 444,308 |
Net sales by major product | The following tables display revenue by reportable segment from external customers, disaggregated by major source. The Company believes disaggregating by these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended May 31, 2021 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 346,614 $ 5,904 $ — $ 352,518 Steel products 626,084 215,088 — 841,172 Downstream products 475,714 56,444 — 532,158 Other 109,656 6,277 3,260 119,193 Net sales-unaffiliated customers 1,558,068 283,713 3,260 1,845,041 Intersegment net sales, eliminated on consolidation — 394 (394) — Net sales $ 1,558,068 $ 284,107 $ 2,866 $ 1,845,041 Nine Months Ended May 31, 2021 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 811,863 $ 13,509 $ — $ 825,372 Steel products 1,597,942 524,025 — 2,121,967 Downstream products 1,313,140 124,679 — 1,437,819 Other 287,622 17,244 9,090 313,956 Net sales-unaffiliated customers 4,010,567 679,457 9,090 4,699,114 Intersegment net sales, eliminated on consolidation — 1,312 (1,312) — Net sales $ 4,010,567 $ 680,769 $ 7,778 $ 4,699,114 Three Months Ended May 31, 2020 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 159,174 $ 2,499 $ — $ 161,673 Steel products 420,169 132,741 — 552,910 Downstream products 494,519 32,885 — 527,404 Other 93,219 5,340 1,137 99,696 Net sales-unaffiliated customers 1,167,081 173,465 1,137 1,341,683 Intersegment net sales, eliminated on consolidation — 352 (352) — Net sales $ 1,167,081 $ 173,817 $ 785 $ 1,341,683 Nine Months Ended May 31, 2020 (in thousands) North America Europe Corporate and Other Total Major product: Raw materials $ 534,109 $ 7,112 $ — $ 541,221 Steel products 1,298,980 410,010 — 1,708,990 Downstream products 1,436,011 84,843 — 1,520,854 Other 275,984 16,196 4,109 296,289 Net sales-unaffiliated customers 3,545,084 518,161 4,109 4,067,354 Intersegment net sales, eliminated on consolidation — 1,124 (1,124) — Net sales $ 3,545,084 $ 519,285 $ 2,985 $ 4,067,354 |
CHANGES IN BUSINESS (Details)
CHANGES IN BUSINESS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
May 31, 2021 | May 31, 2021 | May 31, 2020 | |
Business Combinations [Abstract] | |||
Facility closure costs | $ 0.9 | $ 13.4 | $ 7.2 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI by Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (102,140) | $ (121,390) | $ (103,764) | $ (124,126) |
Other comprehensive income before reclassifications | 25,817 | (14,397) | 29,832 | (12,182) |
Amounts reclassified from AOCI | (719) | (96) | (1,106) | (312) |
Income taxes | (1,808) | 1,226 | (3,812) | 1,963 |
Other comprehensive income (loss) | 23,290 | (13,267) | 24,914 | (10,531) |
Ending balance | (78,850) | (134,657) | (78,850) | (134,657) |
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (94,856) | (115,642) | (87,933) | (121,498) |
Other comprehensive income before reclassifications | 11,775 | (8,037) | 4,852 | (2,179) |
Amounts reclassified from AOCI | 0 | 2 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 11,775 | (8,035) | 4,852 | (2,179) |
Ending balance | (83,081) | (123,677) | (83,081) | (123,677) |
Unrealized Gain (Loss) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (2,760) | (1,998) | (11,334) | 1,106 |
Other comprehensive income before reclassifications | 14,056 | (6,350) | 25,028 | (9,969) |
Amounts reclassified from AOCI | (719) | (98) | (1,106) | (312) |
Income taxes | (1,808) | 1,224 | (3,819) | 1,953 |
Other comprehensive income (loss) | 11,529 | (5,224) | 20,103 | (8,328) |
Ending balance | 8,769 | (7,222) | 8,769 | (7,222) |
Defined Benefit Obligation | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (4,524) | (3,750) | (4,497) | (3,734) |
Other comprehensive income before reclassifications | (14) | (10) | (48) | (34) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Income taxes | 0 | 2 | 7 | 10 |
Other comprehensive income (loss) | (14) | (8) | (41) | (24) |
Ending balance | $ (4,538) | $ (3,758) | $ (4,538) | $ (3,758) |
REVENUE RECOGNITION - Revenue R
REVENUE RECOGNITION - Revenue Recognition Method (Details) - Americas Fabrication - Recognized over Time | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Fabricated Product and Installation Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract as percent of total segment revenue (percent) | 7.00% | 11.00% | 10.00% | 12.00% |
Fabricated Product without Installation Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract as percent of total segment revenue (percent) | 9.00% | 12.00% | 9.00% | 11.00% |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets (included in other current assets) | $ 67,906 | $ 53,275 |
Contract liabilities (included in accrued expenses and other payables) | $ 22,151 | $ 25,450 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligations (Details) $ in Millions | May 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 776.7 |
INVENTORIES, NET (Narrative) (D
INVENTORIES, NET (Narrative) (Details) - USD ($) $ in Millions | May 31, 2021 | Aug. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 238 | $ 123.9 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Goodwill [Line Items] | ||
Goodwill, gross | $ 76,531 | |
Accumulated impairment losses | (10,200) | |
Goodwill, net | 66,331 | $ 64,321 |
North America | ||
Goodwill [Line Items] | ||
Goodwill, gross | 71,941 | |
Accumulated impairment losses | (10,036) | |
Goodwill, net | 61,905 | |
Europe | ||
Goodwill [Line Items] | ||
Goodwill, gross | 4,590 | |
Accumulated impairment losses | (164) | |
Goodwill, net | $ 4,426 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | Aug. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Gross carrying amounts of the intangible assets subject to amortization | $ 21,900 | $ 21,900 | $ 22,100 | ||
Net carrying amount of intangible assets subject to amortization | 11,000 | 11,000 | 12,600 | ||
Carrying amount of acquired unfavorable contract backlog liability | 1,500 | 1,500 | $ 6,000 | ||
Amortization of unfavorable contract backlog | $ 1,500 | $ 4,400 | $ 4,500 | $ 18,700 |
LEASES - Balance Sheet Componen
LEASES - Balance Sheet Components (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Leased Assets [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 114,774 | $ 114,905 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 54,501 | 50,642 |
Right-of-Use Asset | 169,275 | 165,547 |
Lessee, Operating Lease, Description [Abstract] | ||
Operating Lease, Liability, Current | $ 26,799 | 27,604 |
Operating lease liabilities, Current [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | |
Operating Lease, Liability, Noncurrent | $ 96,063 | 95,810 |
Operating lease liabilities, Long-term [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Operating Lease, Liability, Total | $ 122,862 | 123,414 |
Lessee, Finance Lease, Description [Abstract] | ||
Finance Lease, Liability, Current | 15,613 | 14,373 |
Finance Lease, Liability, Noncurrent | 36,757 | 35,851 |
Finance Lease, Liability, Total | 52,370 | 50,224 |
Lease Liability | $ 175,232 | $ 173,638 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 8,377 | $ 9,129 | $ 25,750 | $ 26,734 |
Finance lease expense: | ||||
Amortization of assets | 3,270 | 3,343 | 9,729 | 8,228 |
Interest on lease liabilities | 555 | 456 | 1,673 | 1,322 |
Total finance lease expense | 3,825 | 3,799 | 11,402 | 9,550 |
Variable and short-term lease expense | 4,584 | 4,233 | 13,871 | 12,547 |
Total lease expense | $ 16,786 | $ 17,161 | $ 51,023 | $ 48,831 |
LEASES - Weighted Average Lease
LEASES - Weighted Average Lease Terms and Discount Rates (Details) | May 31, 2021 | Aug. 31, 2020 |
Leases [Abstract] | ||
Operating leases, remaining term | 6 years 4 months 24 days | 6 years 3 months 18 days |
Finance leases, remaining term | 3 years 8 months 12 days | 3 years 9 months 18 days |
Operating leases, weighted average discount rate | 4.476% | 4.283% |
Finance leases, weighted average discount rate | 4.194% | 4.27% |
LEASES - Cash Flow and Other In
LEASES - Cash Flow and Other Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 25,862 | $ 27,003 |
Operating cash outflows from finance leases | 1,665 | 1,243 |
Financing cash outflows from finance leases | 11,706 | 9,607 |
Right-of-Use Assets Obtained in Exchange for Lease Obligations [Abstract] | ||
Operating leases | 23,019 | 38,363 |
Finance leases | $ 14,002 | $ 16,277 |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Year 1 | $ 32,255 | |
Year 2 | 26,992 | |
Year 3 | 21,553 | |
Year 4 | 16,576 | |
Year 5 | 12,303 | |
Thereafter | 32,922 | |
Total lease payments | 142,601 | |
Less imputed interest | 19,739 | |
Present value of lease liabilities | 122,862 | $ 123,414 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
Year 1 | 17,495 | |
Year 2 | 15,228 | |
Year 3 | 12,637 | |
Year 4 | 8,229 | |
Year 5 | 2,238 | |
Thereafter | 758 | |
Total lease payments | 56,585 | |
Less imputed interest | 4,215 | |
Present value of lease liabilities | $ 52,370 | $ 50,224 |
CREDIT ARRANGEMENTS (Long-term
CREDIT ARRANGEMENTS (Long-term Debt, Including the Deferred Gain from the Termination of the Interest Rate Swaps) (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,085,368 | $ 1,092,266 |
Less debt issuance costs | 8,504 | 8,581 |
Total amounts outstanding | 1,076,864 | 1,083,685 |
Less current maturities of long-term debt | 56,735 | 18,149 |
Long-term debt | $ 1,020,129 | 1,065,536 |
2031 Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.875% | |
Total debt | $ 300,000 | 0 |
Less debt issuance costs | 4,900 | |
2031 Notes | Significant Other Observable Inputs (Level 2) | Fair Value | ||
Debt Instrument [Line Items] | ||
Total debt | $ 298,455 | 0 |
2027 Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.375% | |
Total debt | $ 300,000 | 300,000 |
2027 Notes | Significant Other Observable Inputs (Level 2) | Fair Value | ||
Debt Instrument [Line Items] | ||
Total debt | $ 318,003 | $ 319,377 |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.75% | 5.75% |
Total debt | $ 0 | $ 350,000 |
2026 Notes | Significant Other Observable Inputs (Level 2) | Fair Value | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | 367,374 |
2023 Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.875% | |
Total debt | $ 330,000 | 330,000 |
2023 Notes | Significant Other Observable Inputs (Level 2) | Fair Value | ||
Debt Instrument [Line Items] | ||
Total debt | $ 347,912 | 345,335 |
Poland Term Loan | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.71% | |
Total debt | $ 54,606 | 40,713 |
Poland Term Loan | Revolving credit facility | Significant Other Observable Inputs (Level 2) | Fair Value | ||
Debt Instrument [Line Items] | ||
Total debt | $ 54,606 | 40,713 |
Other | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.10% | |
Total debt | $ 19,492 | 21,329 |
Finance leases | ||
Debt Instrument [Line Items] | ||
Total debt | $ 52,370 | 50,224 |
Short-term borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | |
Weighted average interest rate, short term | 1.00% | |
Short-term borrowings | Significant Other Observable Inputs (Level 2) | Fair Value | ||
Debt Instrument [Line Items] | ||
Total debt | $ 28,900 | $ 0 |
CREDIT ARRANGEMENTS (Narrative)
CREDIT ARRANGEMENTS (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Feb. 28, 2021USD ($) | May 31, 2021USD ($) | May 31, 2020USD ($) | May 31, 2021USD ($) | May 31, 2020USD ($) | May 31, 2021PLN (zł) | Apr. 01, 2021USD ($) | Feb. 28, 2021PLN (zł) | Aug. 31, 2020USD ($) | Aug. 31, 2020PLN (zł) | |
Debt Instrument [Line Items] | ||||||||||
Financial liabilities | $ 1,085,368,000 | $ 1,085,368,000 | $ 1,092,266,000 | |||||||
Less debt issuance costs | 8,504,000 | 8,504,000 | 8,581,000 | |||||||
Loss on debt extinguishment | 0 | $ 0 | (16,841,000) | $ 0 | ||||||
Advances outstanding under transfer of receivables programs | 28,900,000 | 28,900,000 | zł 105,900,000 | |||||||
2026 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Early Repayment of Senior Debt | $ 77,800,000 | |||||||||
Financial liabilities | $ 0 | $ 0 | $ 350,000,000 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | |||||
Loss on debt extinguishment | 16,800,000 | |||||||||
2031 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Financial liabilities | $ 300,000,000 | $ 300,000,000 | $ 0 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.875% | 3.875% | 3.875% | |||||||
Less debt issuance costs | $ 4,900,000 | $ 4,900,000 | ||||||||
CMCP | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility current borrowing capacity | 68,300,000 | 68,300,000 | zł 250,000,000 | zł 275,000,000 | ||||||
CMCP | Poland Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stand by letters of credit outstanding amount | 900,000 | 900,000 | 800,000 | |||||||
Term loan, maximum principal amount | 13,700,000 | 13,700,000 | 50,000,000 | |||||||
Financial liabilities | 54,600,000 | 54,600,000 | zł 200,000,000 | 40,700,000 | zł 150,000,000 | |||||
Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility, amount drawn | 0 | 0 | 0 | |||||||
Revolving credit facility | Poland Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Financial liabilities | $ 54,606,000 | $ 54,606,000 | $ 40,713,000 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.71% | 1.71% | 1.71% | |||||||
Stand-by letters of credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stand by letters of credit outstanding amount | $ 3,000,000 | $ 3,000,000 | ||||||||
Poland Program | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Transfer of accounts receivable program limit | 60,100,000 | 60,100,000 | zł 220,000,000 | |||||||
The Revolver Maturity Date in March 2026 | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility current borrowing capacity | 400,000,000 | 400,000,000 | ||||||||
Revolving Credit Facility Maturity Date in June 2022 | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility current borrowing capacity | $ 350,000,000 | $ 350,000,000 | ||||||||
U.S. Program | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Transfer of accounts receivable program limit | $ 200,000,000 | $ 150,000,000 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | Aug. 31, 2020 | |
Derivative [Line Items] | |||||
Unrealized holding gain (loss) | $ 12,145 | $ (5,143) | $ 21,032 | $ (8,075) | |
Foreign exchange | |||||
Derivative [Line Items] | |||||
Derivative notional amount | 274,100 | 274,100 | $ 138,500 | ||
Commodity | |||||
Derivative [Line Items] | |||||
Derivative notional amount | 239,400 | 239,400 | $ 195,800 | ||
Unrealized holding gain (loss) | $ 12,200 | $ (5,200) | $ 21,000 | $ (8,100) |
DERIVATIVES (Commodity Contract
DERIVATIVES (Commodity Contract Commitments) (Details) MWh in Thousands | 9 Months Ended |
May 31, 2021MWht | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 4,150 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract commitments | 1,750 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 624 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract commitments | 8,981 |
Electricity | Long | |
Derivative [Line Items] | |
Commodity contract commitment, electricity | MWh | 1,917 |
DERIVATIVES (Derivatives Not De
DERIVATIVES (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity derivatives accounted for as cash flow hedging instruments | $ 12,145 | $ (5,143) | $ 21,032 | $ (8,075) |
Commodity | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity derivatives accounted for as cash flow hedging instruments | 12,200 | (5,200) | 21,000 | (8,100) |
Commodity | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) before income taxes for derivatives not designated as hedges | $ (7,900) | $ 1,500 | $ (24,500) | $ 1,900 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) | 9 Months Ended |
May 31, 2021levels | |
Fair Value Disclosures [Abstract] | |
Number of fair value hierarchy | 3 |
FAIR VALUE (Financial Assets an
FAIR VALUE (Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Significant Unobservable Inputs (Level 3) | Minimum | Commodity | Valuation Technique, Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Energy floating rate | $ 217.38 | |
Significant Unobservable Inputs (Level 3) | Maximum | Commodity | Valuation Technique, Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Energy floating rate | 296.36 | |
Significant Unobservable Inputs (Level 3) | Average | Commodity | Valuation Technique, Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Energy floating rate | 251.10 | |
Fair value, measurements, recurring | Money market investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | 415,850,000 | $ 449,824,000 |
Fair value, measurements, recurring | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 11,193,000 | 202,000 |
Derivative liabilities | 6,325,000 | 19,000,000 |
Fair value, measurements, recurring | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5,482,000 | 1,484,000 |
Derivative liabilities | 1,236,000 | 459,000 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | 415,850,000 | 449,824,000 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 712,000 | 202,000 |
Derivative liabilities | 6,325,000 | 3,993,000 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Money market investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | 0 | 0 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5,482,000 | 1,484,000 |
Derivative liabilities | 1,236,000 | 459,000 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Money market investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | 0 | 0 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 10,481,000 | 0 |
Derivative liabilities | 0 | 15,007,000 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Fair Value (Reconciliation of C
Fair Value (Reconciliation of Commodity Derivative Recognized in Other Comprehensive Income) (Details) - Commodity - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
May 31, 2021 | May 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ (4,285) | $ (15,007) |
Ending balance | 10,481 | 10,481 |
Recognized in earnings | $ (693) | $ (946) |
FAIR VALUE (Financial Assets _2
FAIR VALUE (Financial Assets and Liabilities Not Required to Be Measured at Fair Value) (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | $ 1,085,368 | $ 1,092,266 |
2031 Notes | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 300,000 | 0 |
2031 Notes | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 298,455 | 0 |
2027 Notes | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 300,000 | 300,000 |
2027 Notes | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 318,003 | 319,377 |
2026 Notes | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 0 | 350,000 |
2026 Notes | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 0 | 367,374 |
2023 Notes | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 330,000 | 330,000 |
2023 Notes | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 347,912 | 345,335 |
Short-term borrowings | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 0 | |
Short-term borrowings | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 28,900 | 0 |
Revolving credit facility | Poland Term Loan | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 54,606 | 40,713 |
Revolving credit facility | Poland Term Loan | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | $ 54,606 | $ 40,713 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2019 | May 31, 2021 | May 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period in years | 3 years | |||
Stock-based compensation | $ 13,800 | $ 6,170 | $ 35,558 | $ 21,975 |
Share-based Payment Arrangement, Expense | $ 3,200 | $ 5,000 | ||
Equity method awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 1,512,000 | 1,521,000 | ||
Weighted average grant-date fair value | $ 20.51 | $ 18.32 | ||
Liability method awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 324,000 | 426,000 | ||
Equivalent shares outstanding | 711,148 | 711,148 | ||
Equivalent shares expected to vest | 675,590 | 675,590 |
STOCKHOLDERS EQUITY AND EARNI_2
STOCKHOLDERS EQUITY AND EARNINGS PER SHARE (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
May 31, 2021 | May 31, 2021 | Feb. 28, 2015 | |
Earnings Per Share [Abstract] | |||
Stock repurchase program, authorized amount | $ 100,000,000 | ||
Stock repurchase program, shares purchased (shares) | 0 | 0 | |
Stock repurchase program, remaining authorized repurchase amount | $ 27,600,000 | $ 27,600,000 |
STOCKHOLDERS EQUITY AND EARNI_3
STOCKHOLDERS EQUITY AND EARNINGS PER SHARE (Calculations of the Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||
Earnings Per Share [Abstract] | |||||
Earnings from continuing operations | $ 130,408 | $ 64,169 | $ 260,552 | $ 210,520 | |
Basic earnings per share: | |||||
Shares outstanding for basic earnings per share (shares) | 120,613,652 | 119,192,962 | 120,241,579 | 118,828,870 | |
Basic earnings per share from continuing operations (in USD per share) | [1] | $ 1.08 | $ 0.54 | $ 2.17 | $ 1.77 |
Diluted earnings per share: | |||||
Shares outstanding for basic earnings per share (shares) | 120,613,652 | 119,192,962 | 120,241,579 | 118,828,870 | |
Effect of dilutive securities: | |||||
Stock-based incentive/purchase plans (shares) | 1,580,003 | 1,085,779 | 1,610,565 | 1,448,867 | |
Shares outstanding for diluted earnings per share (shares) | 122,193,655 | 120,278,741 | 121,852,144 | 120,277,737 | |
Diluted earnings per share from continuing operations (in USD per share) | [1] | $ 1.07 | $ 0.53 | $ 2.14 | $ 1.75 |
[1] | *Earnings Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - CERCLA sites - USD ($) $ in Millions | May 31, 2021 | Aug. 31, 2020 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 6.1 | $ 3.4 |
Accrued environmental loss contingencies, noncurrent | $ 2.5 | $ 2.7 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) | 9 Months Ended |
May 31, 2021segments | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
BUSINESS SEGMENTS (Summary of C
BUSINESS SEGMENTS (Summary of Certain Financial Information from Continuing Operations by Reportable Segment and Major Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2021 | Aug. 31, 2020 | May 31, 2020 | May 31, 2021 | May 31, 2020 | Aug. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 1,845,041 | $ 1,341,683 | $ 4,699,114 | $ 4,067,354 | ||
Adjusted EBITDA | 221,121 | 146,782 | 506,487 | 444,308 | ||
Total assets | 4,391,075 | $ 4,081,728 | 4,391,075 | $ 4,081,728 | ||
Segments | Continuing Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,845,041 | 1,341,683 | 4,699,114 | 4,067,354 | ||
Adjusted EBITDA | 221,121 | 146,782 | 506,487 | 444,308 | ||
Total assets | 4,391,075 | 4,081,728 | 4,391,075 | 4,081,728 | ||
Segments | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,558,068 | 1,167,081 | 4,010,567 | 3,545,084 | ||
Adjusted EBITDA | 207,330 | 159,394 | 534,576 | 486,957 | ||
Total assets | 3,089,579 | 2,862,805 | 3,089,579 | 2,862,805 | ||
Segments | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 284,107 | 173,817 | 680,769 | 519,285 | ||
Adjusted EBITDA | 50,005 | 14,270 | 80,582 | 39,080 | ||
Total assets | 675,880 | 532,850 | 675,880 | 532,850 | ||
Segments | Unaffiliated Customers | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,845,041 | 1,341,683 | 4,699,114 | 4,067,354 | ||
Segments | Unaffiliated Customers | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,558,068 | 1,167,081 | 4,010,567 | 3,545,084 | ||
Segments | Unaffiliated Customers | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 283,713 | 173,465 | 679,457 | 518,161 | ||
Segments | Raw materials | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 352,518 | 161,673 | 825,372 | 541,221 | ||
Segments | Raw materials | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 346,614 | 159,174 | 811,863 | 534,109 | ||
Segments | Raw materials | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 5,904 | 2,499 | 13,509 | 7,112 | ||
Segments | Steel Products | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 841,172 | 552,910 | 2,121,967 | 1,708,990 | ||
Segments | Steel Products | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 626,084 | 420,169 | 1,597,942 | 1,298,980 | ||
Segments | Steel Products | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 215,088 | 132,741 | 524,025 | 410,010 | ||
Segments | Downstream products | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 532,158 | 527,404 | 1,437,819 | 1,520,854 | ||
Segments | Downstream products | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 475,714 | 494,519 | 1,313,140 | 1,436,011 | ||
Segments | Downstream products | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 56,444 | 32,885 | 124,679 | 84,843 | ||
Segments | Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 119,193 | 99,696 | 313,956 | 296,289 | ||
Segments | Other | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 109,656 | 93,219 | 287,622 | 275,984 | ||
Segments | Other | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 6,277 | 5,340 | 17,244 | 16,196 | ||
Segments | Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 2,866 | 7,778 | ||||
Adjusted EBITDA | (36,214) | |||||
Total assets | 625,616 | 686,073 | 625,616 | 686,073 | ||
Segments | Corporate | Unaffiliated Customers | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 3,260 | 1,137 | 9,090 | 4,109 | ||
Segments | Corporate | Raw materials | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Segments | Corporate | Steel Products | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Segments | Corporate | Downstream products | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Segments | Corporate | Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 3,260 | 1,137 | 9,090 | 4,109 | ||
Segments | Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 785 | 2,985 | ||||
Adjusted EBITDA | $ (26,882) | (108,671) | $ (81,729) | |||
Intersegment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Intersegment | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Intersegment | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 394 | 352 | 1,312 | 1,124 | ||
Intersegment | Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ (394) | $ (352) | $ (1,312) | $ (1,124) |
BUSINESS SEGMENTS (Reconciliati
BUSINESS SEGMENTS (Reconciliations of Earnings from Continuing Operations to Adjusted Operating Profit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Segment Reporting [Abstract] | ||||
Earnings from continuing operations | $ 130,408 | $ 64,169 | $ 260,552 | $ 210,520 |
Interest expense | 11,965 | 15,409 | 40,245 | 47,875 |
Income taxes | 38,175 | 23,804 | 80,709 | 73,981 |
Depreciation and amortization | 41,804 | 41,765 | 125,176 | 124,095 |
Amortization of acquired unfavorable contract backlog | (1,508) | (4,348) | (4,540) | (18,676) |
Asset impairments | 277 | 5,983 | ||
Adjusted EBITDA | $ 221,121 | $ 146,782 | $ 506,487 | $ 444,308 |