Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
Aug. 31, 2013 | Feb. 28, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | |
Class B Common Stock | Class A Common Stock | |||
Entity Information [Line Items] | ||||
Entity Registrant Name | SCHNITZER STEEL INDUSTRIES INC | |||
Entity Central Index Key | 912603 | |||
Current Fiscal Year End Date | -23 | |||
Entity Filer Category | Large Accelerated Filer | |||
Document Type | 10-K | |||
Document Period End Date | 31-Aug-13 | |||
Document Fiscal Year Focus | 2013 | |||
Document Fiscal Period Focus | FY | |||
Amendment Flag | FALSE | |||
Entity Common Stock, Shares Outstanding | 393,400 | 26,174,285 | ||
Entity Well-known Seasoned Issuer | Yes | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Public Float | $1,089,948,838 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $13,481 | $89,863 | ||
Accounts receivable, net | 188,270 | 137,313 | ||
Inventories, net | 236,049 | 246,992 | ||
Deferred income taxes | 3,750 | 6,362 | ||
Refundable income taxes | 3,521 | 7,671 | ||
Prepaid expenses and other current assets | 22,159 | 28,618 | ||
Total current assets | 467,230 | 516,819 | ||
Property, plant and equipment, net | 564,426 | [1] | 564,185 | [1] |
Investments in joint venture partnerships | 14,808 | 17,126 | ||
Goodwill | 327,264 | 635,491 | ||
Intangibles, net | 13,264 | 15,778 | ||
Other assets | 18,520 | 14,174 | ||
Total assets | 1,405,512 | 1,763,573 | ||
Current liabilities: | ||||
Short-term borrowings | 9,174 | 683 | ||
Accounts payable | 96,348 | 115,007 | ||
Accrued payroll and related liabilities | 24,002 | 22,130 | ||
Environmental liabilities | 754 | 2,185 | ||
Accrued income taxes | 388 | 38 | ||
Other accrued liabilities | 35,468 | 38,799 | ||
Total current liabilities | 166,134 | 178,842 | ||
Deferred income taxes | 22,929 | 85,447 | ||
Long-term debt, net of current maturities | 372,663 | 334,629 | ||
Environmental liabilities, net of current portion | 49,040 | 44,874 | ||
Other long-term liabilities | 13,547 | 11,837 | ||
Total liabilities | 624,313 | 655,629 | ||
Commitments and contingencies (Note 11) | ||||
Redeemable noncontrolling interest | 0 | 22,248 | ||
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ||||
Preferred stock b 20,000 shares $1.00 par value authorized, none issued | ||||
Additional paid-in capital | 7,476 | 816 | ||
Retained earnings | 751,879 | 1,056,024 | ||
Accumulated other comprehensive loss | -9,361 | -2,589 | ||
Total SSI shareholdersb equity | 776,558 | 1,080,583 | ||
Noncontrolling interests | 4,641 | 5,113 | ||
Total equity | 781,199 | 1,085,696 | ||
Total liabilities and equity | 1,405,512 | 1,763,573 | ||
Common Class A [Member] | ||||
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ||||
Common stock, value | 26,171 | 25,219 | ||
Class B Common Stock | ||||
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ||||
Common stock, value | $393 | $1,113 | ||
[1] | Property, plant and equipment, net includes $85 million and $67 million as of August 31, 2013 and 2012, respectively, at our Canadian locations. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock | ||
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, par value | $1 | $1 |
Common stock, shares issued | 26,171,000 | 25,219,000 |
Common stock, shares outstanding | 26,171,000 | 25,219,000 |
Class B Common Stock | ||
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, par value | $1 | $1 |
Common stock, shares issued | 393,000 | 1,113,000 |
Common stock, shares outstanding | 393,000 | 1,113,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |||
Revenues | $2,621,911 | $3,340,938 | $3,459,194 | |||
Operating expense: | ||||||
Cost of goods sold | 2,415,391 | 3,079,716 | 3,072,165 | |||
Selling, general and administrative | 193,533 | 205,178 | 205,687 | |||
Income from joint ventures | -1,183 | -2,636 | -4,622 | |||
Goodwill impairment charge | 321,000 | 0 | 0 | |||
Other asset impairment charges | 13,053 | 0 | 0 | |||
Restructuring charges | 7,906 | 5,012 | 0 | |||
Operating income (loss) | -327,789 | 53,668 | 185,964 | |||
Interest expense | -9,743 | -11,880 | -8,436 | |||
Other income, net | 83 | 1,168 | 3,277 | |||
Income (loss) from continuing operations before income taxes | -337,449 | 42,956 | 180,805 | |||
Income tax benefit (expense) | 57,426 | -14,039 | -57,168 | |||
Income (loss) from continuing operations | -280,023 | 28,917 | 123,637 | |||
Loss from discontinued operations, net of tax | 0 | 0 | -101 | |||
Net income (loss) | -280,023 | 28,917 | 123,536 | |||
Net income attributable to noncontrolling interests | -1,419 | -1,513 | -5,181 | |||
Net income (loss) attributable to SSI | -281,442 | 27,404 | 118,355 | |||
Basic: | ||||||
Income (loss) per share from continuing operations attributable to SSI | ($10.56) | $1 | $4.28 | |||
Loss per share from discontinued operations | $0 | $0 | $0 | |||
Net income (loss) per share attributable to SSI | ($10.56) | $1 | $4.28 | |||
Diluted: | ||||||
Income (loss) per share from continuing operations attributable to SSI | ($10.56) | $0.99 | $4.24 | |||
Loss per share from discontinued operations | $0 | $0 | ($0.01) | |||
Net income (loss) per share attributable to SSI | ($10.56) | $0.99 | $4.23 | |||
Weighted average number of common shares: | ||||||
Basic | 26,656 | 27,317 | 27,649 | |||
Diluted | 26,656 | 27,553 | 27,959 | |||
Dividends declared per common share | $0.75 | $0.41 | $0.07 | |||
Metal Recycling Business | ||||||
Operating expense: | ||||||
Income from joint ventures | -1,000 | -2,000 | -5,000 | |||
Goodwill impairment charge | 321,000 | |||||
Other asset impairment charges | 13,053 | |||||
Restructuring charges | 2,748 | 1,660 | ||||
Operating income (loss) | ($311,549) | [1] | $63,872 | [1] | $164,646 | [1] |
[1] | MRB operating income (loss) includes $1 million, $2 million and $5 million in income from joint ventures accounted for by the equity method in fiscal 2013, 2012 and 2011, respectively. The MRB operating loss for fiscal 2013 also includes a goodwill impairment charge of $321 million and other asset impairment charges of $13 million. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |||
Net income (loss) | ($280,023) | $28,917 | $123,536 | |||
Other comprehensive income (loss), net of tax | ||||||
Foreign currency translation adjustments | -9,051 | [1] | -2,143 | [1] | 3,541 | [1] |
Cash flow hedges, net | 20 | [2] | -116 | [2] | 91 | [2] |
Pension obligations, net | 3,289 | [3] | -2,220 | [3] | 969 | [3] |
Total other comprehensive income (loss), net of tax | -5,742 | -4,479 | 4,601 | |||
Comprehensive income (loss) | -285,765 | 24,438 | 128,137 | |||
Less amounts attributable to noncontrolling interests: | ||||||
Net income attributable to noncontrolling interests | -1,419 | -1,513 | -5,181 | |||
Foreign currency translation adjustment attributable to redeemable noncontrolling interest | -1,030 | 350 | -509 | |||
Total amounts attributable to noncontrolling interests | -2,449 | -1,163 | -5,690 | |||
Comprehensive income (loss) attributable to SSI | ($288,214) | $23,275 | $122,447 | |||
[1] | Net of tax expense (benefit) of $(387) thousand, $(109) thousand and $876 thousand for each respective period. | |||||
[2] | Net of tax expense (benefit) of $23 thousand, $(24) thousand and $52 thousand for each respective period. | |||||
[3] | Net of tax expense (benefit) of $1,890 thousand, $(1,290) thousand and $564 thousand for each respective period. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $1,890 | ($1,290) | $564 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 23 | -24 | 52 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | ($387) | ($109) | $876 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Noncontrolling Interests | Total SSI Shareholders' Equity | Class A Common Stock | Class B Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |||||
In Thousands, unless otherwise specified | |||||||||||||
Balance at Aug. 31, 2010 | $979,632 | $4,306 | $975,326 | $22,700 | $4,721 | $1,815 | $948,642 | ($2,552) | |||||
Balance, shares at Aug. 31, 2010 | 22,700 | 4,721 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 123,436 | [1] | 5,081 | [1] | 118,355 | [1] | 0 | 0 | 0 | 118,355 | [1] | 0 | [1] |
Other comprehensive income (loss), net of tax | 4,092 | [2] | 0 | [2] | 4,092 | [2] | 0 | 0 | 0 | 0 | [2] | 4,092 | [2] |
Distributions to noncontrolling interests | -2,863 | -2,863 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Share repurchases, shares | -254 | 0 | |||||||||||
Share repurchases | -10,303 | 0 | -10,303 | -254 | 0 | -10,049 | 0 | 0 | |||||
Restricted stock withheld for taxes, shares | -70 | 0 | |||||||||||
Restricted stock withheld for taxes | -3,800 | 0 | -3,800 | -70 | 0 | -3,730 | 0 | 0 | |||||
Issuance of restricted stock, shares | 185 | 0 | |||||||||||
Issuance of restricted stock | 0 | 0 | 0 | 185 | 0 | -185 | 0 | 0 | |||||
Stock options exercised, shares | 19 | 19 | 0 | ||||||||||
Stock options exercised | 567 | 0 | 567 | 19 | 0 | 548 | 0 | 0 | |||||
Class B common stock converted to Class A common stock, shares | 1,661 | -1,661 | |||||||||||
Class B common stock converted to Class A common stock | 0 | 0 | 0 | 1,661 | -1,661 | 0 | 0 | 0 | |||||
Share-based compensation expense | 12,830 | 0 | 12,830 | 0 | 0 | 12,830 | 0 | 0 | |||||
Excess tax deficiency from stock options exercised and restricted stock units vested | -467 | 0 | -467 | 0 | 0 | -467 | 0 | 0 | |||||
Cash dividends | -1,888 | -1,888 | 0 | 0 | 0 | -1,888 | 0 | ||||||
Balance at Aug. 31, 2011 | 1,101,236 | 6,524 | 1,094,712 | 24,241 | 3,060 | 762 | 1,065,109 | 1,540 | |||||
Balance, shares at Aug. 31, 2011 | 24,241 | 3,060 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 30,080 | [1] | 2,676 | [1] | 27,404 | [1] | 0 | 0 | 0 | 27,404 | [1] | 0 | [1] |
Other comprehensive income (loss), net of tax | -4,129 | [2] | 0 | [2] | -4,129 | [2] | 0 | 0 | 0 | 0 | [2] | -4,129 | [2] |
Distributions to noncontrolling interests | -4,087 | -4,087 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Share repurchases, shares | -1,124 | 0 | |||||||||||
Share repurchases | -33,194 | 0 | -33,194 | -1,124 | 0 | -6,570 | -25,500 | 0 | |||||
Restricted stock withheld for taxes, shares | -69 | 0 | |||||||||||
Restricted stock withheld for taxes | -2,307 | 0 | -2,307 | -69 | 0 | -2,238 | 0 | 0 | |||||
Issuance of restricted stock, shares | 199 | 0 | |||||||||||
Issuance of restricted stock | 0 | 0 | 0 | 199 | 0 | -199 | 0 | 0 | |||||
Stock options exercised, shares | 25 | 25 | 0 | ||||||||||
Stock options exercised | 608 | 0 | 608 | 25 | 0 | 583 | 0 | 0 | |||||
Class B common stock converted to Class A common stock, shares | 1,947 | -1,947 | |||||||||||
Class B common stock converted to Class A common stock | 0 | 0 | 0 | 1,947 | -1,947 | 0 | 0 | 0 | |||||
Share-based compensation expense | 9,618 | 0 | 9,618 | 0 | 0 | 9,618 | 0 | 0 | |||||
Excess tax deficiency from stock options exercised and restricted stock units vested | -1,140 | 0 | -1,140 | 0 | 0 | -1,140 | 0 | 0 | |||||
Cash dividends | -10,989 | 0 | -10,989 | 0 | 0 | 0 | -10,989 | 0 | |||||
Balance at Aug. 31, 2012 | 1,085,696 | 5,113 | 1,080,583 | 25,219 | 1,113 | 816 | 1,056,024 | -2,589 | |||||
Balance, shares at Aug. 31, 2012 | 25,219 | 1,113 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | -279,120 | [1] | 2,322 | [1] | -281,442 | [1] | 0 | 0 | 0 | -281,442 | [1] | 0 | [1] |
Other comprehensive income (loss), net of tax | -6,772 | [2] | 0 | [2] | -6,772 | [2] | 0 | 0 | 0 | 0 | [2] | -6,772 | [2] |
Distributions to noncontrolling interests | -2,794 | -2,794 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Restricted stock withheld for taxes, shares | -102 | 0 | |||||||||||
Restricted stock withheld for taxes | -2,673 | 0 | -2,673 | -102 | 0 | -2,571 | 0 | 0 | |||||
Issuance of restricted stock, shares | 319 | 0 | |||||||||||
Issuance of restricted stock | 0 | 0 | 0 | 319 | 0 | -319 | 0 | 0 | |||||
Stock options exercised, shares | 15 | 15 | 0 | ||||||||||
Stock options exercised | 316 | 0 | 316 | 15 | 0 | 301 | 0 | 0 | |||||
Class B common stock converted to Class A common stock, shares | 720 | -720 | |||||||||||
Class B common stock converted to Class A common stock | 0 | 0 | 0 | 720 | -720 | 0 | 0 | 0 | |||||
Share-based compensation expense | 11,475 | 0 | 11,475 | 0 | 0 | 11,475 | 0 | 0 | |||||
Excess tax deficiency from stock options exercised and restricted stock units vested | -2,226 | 0 | -2,226 | 0 | 0 | -2,226 | 0 | 0 | |||||
Adjustment to fair value of redeemable noncontrolling interest | -2,449 | 0 | -2,449 | 0 | 0 | 0 | -2,449 | 0 | |||||
Cash dividends | -20,254 | 0 | -20,254 | 0 | 0 | 0 | -20,254 | 0 | |||||
Balance at Aug. 31, 2013 | $781,199 | $4,641 | $776,558 | $26,171 | $393 | $7,476 | $751,879 | ($9,361) | |||||
Balance, shares at Aug. 31, 2013 | 26,171 | 393 | |||||||||||
[1] | Net income attributable to noncontrolling interests at August 31, 2013, 2012 and 2011 excludes $(903) thousand, $(1,163) thousand and $100 thousand, respectively, allocable to the redeemable noncontrolling interest, which, prior to its purchase on March 8, 2013, was reported in the mezzanine section of the Consolidated Balance Sheets at August 31, 2012 and 2011. See Note 13 - Redeemable Noncontrolling Interest for further detail. | ||||||||||||
[2] | Other comprehensive income (loss), net of tax for the years ended August 31, 2013, 2012 and 2011 excludes $(1,030) thousand, $350 thousand and $(509) thousand respectively, relating to the redeemable noncontrolling interest, which, prior to its purchase on March 8, 2013, was reported in the mezzanine section of the Consolidated Balance Sheets at August 31, 2012 and 2011. See Note 13 - Redeemable Noncontrolling Interest for further detail. |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Net income (loss) attributable to noncontrolling interest | ($903) | ($1,163) | $100 |
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | ($1,030) | $350 | ($509) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Cash flows from operating activities: | |||
Net income (loss) | ($280,023) | $28,917 | $123,536 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Goodwill impairment charge | 321,000 | 0 | 0 |
Other asset impairment charges | 13,053 | 0 | 0 |
Depreciation and amortization | 83,070 | 82,256 | 74,866 |
Deferred income taxes | -59,102 | 8,321 | 21,004 |
Undistributed equity in earnings of joint ventures | -1,183 | -2,307 | -4,622 |
Share-based compensation expense | 11,475 | 8,793 | 13,655 |
Excess tax benefit from share-based payment arrangements | -343 | -817 | -689 |
(Gain) loss on the disposal of assets | -131 | 135 | -1,529 |
Net gain on derivatives | 0 | 0 | -772 |
Unrealized foreign exchange (gain) loss, net | 1,583 | -334 | 758 |
Bad debt expense, net | 584 | 688 | 334 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | -79,118 | 81,701 | -91,715 |
Inventories | 46,826 | 94,095 | -45,268 |
Income taxes | 2,440 | -20,018 | 22,703 |
Prepaid expenses and other current assets | -13,852 | -4,010 | -11,486 |
Intangibles and other long-term assets | 977 | -82 | -133 |
Accounts payable | -10,901 | -26,074 | 45,447 |
Accrued payroll and related liabilities | 2,720 | -13,161 | 2,276 |
Other accrued liabilities | -1,770 | 6,500 | -15,676 |
Environmental liabilities | -146 | -2,201 | -97 |
Other long-term liabilities | 113 | 253 | -167 |
Distributed equity in earnings of joint ventures | 1,755 | 2,405 | 4,980 |
Net cash provided by operating activities | 39,289 | 244,790 | 140,463 |
Cash flows from investing activities: | |||
Capital expenditures | -90,381 | -78,560 | -104,964 |
Acquisitions, net of cash acquired | -25,366 | -6,567 | -293,880 |
Joint venture payments, net | -2,194 | -92 | -1,587 |
Proceeds from sale of assets | 5,491 | 953 | 530 |
Purchase of noncontrolling interest | -24,734 | 0 | 0 |
Net cash used in investing activities | -137,184 | -84,266 | -399,901 |
Cash flows from financing activities: | |||
Proceeds from line of credit | 545,500 | 495,500 | 655,500 |
Repayment of line of credit | -537,000 | -495,500 | -655,500 |
Borrowings from long-term debt | 265,858 | 439,070 | 811,531 |
Repayment of long-term debt | -230,923 | -507,745 | -508,675 |
Debt financing fees | 0 | -1,282 | -5,310 |
Repurchase of Class A common stock | 0 | -33,194 | -10,303 |
Taxes paid related to net share settlement of share-based payment arrangements | -2,673 | -2,307 | -3,800 |
Excess tax benefit from share-based payment arrangements | 343 | 817 | 689 |
Stock options exercised | 316 | 608 | 567 |
Contributions from noncontrolling interest | 1,970 | 4,008 | 0 |
Distributions to noncontrolling interest | -2,794 | -4,087 | -2,863 |
Contingent consideration paid relating to business acquisitions | 0 | -4,485 | 0 |
Dividends paid | -20,010 | -11,455 | -1,885 |
Net cash provided by (used in) financing activities | 20,587 | -120,052 | 279,951 |
Effect of exchange rate changes on cash | 926 | -71 | -1,393 |
Net increase (decrease) in cash and cash equivalents | -76,382 | 40,401 | 19,120 |
Cash and cash equivalents as of beginning of year | 89,863 | 49,462 | 30,342 |
Cash and cash equivalents as of end of year | 13,481 | 89,863 | 49,462 |
Cash paid (received) during the year for: | |||
Interest | 8,542 | 10,968 | 7,072 |
Income taxes paid (refunds received), net | ($483) | $24,517 | $14,330 |
Nature_of_Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2013 | |
Nature of Operations [Abstract] | |
Nature of Operations | Nature of Operations |
Founded in 1906, Schnitzer Steel Industries, Inc. (the “Company”), an Oregon corporation, is one of the nation’s largest recyclers of ferrous and nonferrous scrap metal, a leading recycler of used and salvaged vehicles and a manufacturer of finished steel products. | |
The Company operates in three reporting segments as follows: the Metals Recycling Business (“MRB”), the Auto Parts Business (“APB”) and the Steel Manufacturing Business (“SMB”). MRB buys, collects, processes, recycles, sells and brokers recycled metal by operating one of the largest metal recycling businesses in the United States (“U.S.”). APB is one of the country’s leading self-service used auto parts networks. Additionally, APB is a supplier of ferrous and nonferrous material including autobodies to MRB, which processes the autobodies into sellable recycled metal. SMB purchases recycled metal from MRB and uses its mini-mill to process the recycled metal into finished steel products. | |
As of August 31, 2013, all of the Company’s facilities were located in the U.S. and its territories and Canada. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Accounting Policies [Abstract] | |||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||
Principles of Consolidation | |||||
The Consolidated Financial Statements include the accounts of the Company and its majority-owned and wholly-owned subsidiaries. The equity method of accounting is used for investments in joint ventures over which the Company has significant influence but does not have effective control. All significant intercompany account balances, transactions, profits and losses have been eliminated. All transactions and relationships with potential variable interest entities are evaluated to determine whether the Company is the primary beneficiary of the entities, therefore requiring consolidation. The Company does not have any variable interest entities requiring consolidation. | |||||
Cash and Cash Equivalents | |||||
Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $31 million and $38 million as of August 31, 2013 and 2012, respectively. | |||||
Accounts Receivable, net | |||||
Accounts receivable represent amounts due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for doubtful accounts, are recorded at the invoiced amount and do not bear interest. The Company evaluates the collectability of its accounts receivable based on a combination of factors, including whether sales were made pursuant to letters of credit. In cases where management is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, management records a specific allowance against amounts due and reduces the net recognized receivable to the amount the Company believes will be collected. For all other customers, the Company maintains an allowance that considers the total receivables outstanding, historical collection rates and economic trends. Accounts are written off when all efforts to collect have been exhausted. The allowance for doubtful accounts was $3 million and $4 million as of August 31, 2013 and 2012, respectively. | |||||
Inventories, net | |||||
The Company’s inventories primarily consist of scrap metal (ferrous, nonferrous, processed and unprocessed), nonferrous recovered joint product (nonferrous arising from the manufacturing process), used and salvaged vehicles, semi-finished steel products (billets) and finished steel products (primarily rebar, merchant bar and wire rod). Inventories are stated at the lower of cost or market. MRB determines the cost of ferrous and nonferrous inventories using the average cost method and capitalizes substantially all direct costs and yard costs into inventory. MRB allocates material and production costs to joint products using the gross margin method. APB determines the cost for used and salvaged vehicle inventory based on the average price the Company pays for a vehicle and capitalizes the vehicle cost into inventory. SMB determines the cost of its finished steel product inventory based on weighted average costs and capitalizes all direct and indirect costs of manufacturing into inventory. Indirect costs of manufacturing include general plant costs, maintenance and yard costs. The Company considers estimated future selling prices when determining the estimated net realizable value for its inventory. As MRB generally sells its export recycled ferrous metal under contracts that provide for shipment within 30 to 60 days after the price is agreed, it utilizes the selling prices under committed contracts and sales orders for determining the estimated market price of quantities on hand that will be shipped under these contracts and orders. | |||||
The Company performs periodic physical inventories to verify the quantity of inventory on hand. Due to variations in product density, holding period and production processes utilized to manufacture the product, physical inventories will not necessarily detect all variances for metal inventory such that estimates of quantities are required. To mitigate this risk, the Company adjusts its ferrous physical inventories when the volume of a commodity is low and a physical inventory count can more accurately predict the remaining volume. | |||||
Property, Plant and Equipment, net | |||||
Property, plant and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, while routine repair and maintenance costs are expensed as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs and was not material to any of the periods presented. When assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and resulting gains or losses are generally included in operating expenses. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. | |||||
As of August 31, 2013, the useful lives used for depreciation and amortization were as follows: | |||||
Useful Life | |||||
(In Years) | |||||
Machinery and equipment | 3 to 40 | ||||
Land improvements | 3 to 35 | ||||
Buildings and leasehold improvements | 5 to 40 | ||||
Office equipment | 2 to 20 | ||||
Enterprise Resource Planning (“ERP”) systems | 11 to 17 | ||||
Long-lived assets are subject to an impairment assessment when certain triggering events or circumstances indicate that their carrying value may be impaired. If the carrying value exceeds the Company’s estimate of future undiscounted cash flows of the operations related to the asset, an impairment is recorded for the difference between the carrying amount and the fair value of the asset. There were no material impairments to the carrying value of long-lived assets during the years ended August 31, 2013, 2012 and 2011. | |||||
Investments in Joint Venture Partnerships | |||||
As of August 31, 2013 and 2012, the Company had five 50%-owned joint venture interests which were accounted for under the equity method of accounting and presented as part of MRB operations. The Company’s investments in equity method joint ventures have resulted in cumulative undistributed earnings of $11 million as of August 31, 2013 and 2012. A loss in value of an investment in a joint venture partnership that is other than a temporary decline is recognized. Management considers all available evidence to evaluate the realizable value of its investments including the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the joint venture business, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Once management determines that an other-than-temporary impairment exists, the investment is written down to its fair value, which establishes a new cost basis. The Company determines fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. | |||||
During the fiscal year ended August 31, 2013, the Company recorded an impairment charge related to an investment in a joint venture partnership of $2 million, which is reported within other asset impairment charges in the Consolidated Statements of Operations. See Note 20 - Related Party Transactions for further detail on transactions with joint ventures. | |||||
Goodwill and Other Intangible Assets, net | |||||
Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually during the second fiscal quarter and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. Impairment of goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). The Company has determined that its reporting units for which goodwill has been allocated are equivalent to the Company’s operating segments, as all of the components of each operating segment meet the criteria for aggregation. | |||||
Under the new accounting guidance issued by the FASB in September 2011 and effective for the Company in fiscal 2013, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determines that an impairment is more likely than not, the Company is then required to perform the two-step quantitative impairment test, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. | |||||
In the first step of the two-step quantitative impairment test, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of goodwill, an impairment loss will be recognized in an amount equal to that excess. | |||||
The Company estimates the fair value of its reporting units using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based weighted average cost of capital (“WACC”) determined separately for each reporting unit. The determination of fair value involves the use of significant estimates and assumptions, including revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, discount rates and synergistic benefits available to market participants. In addition, to corroborate the reporting units’ valuation, the Company uses a market approach based on earnings multiple data and a reconciliation of the Company’s estimate of the aggregate fair value of the reporting units to the Company’s market capitalization, including consideration of a control premium. | |||||
The Company tests indefinite-lived intangible assets for impairment by either comparing the carrying value of the intangible to the projected discounted cash flows from the intangible or using the relief from royalties method. If the carrying value exceeds the projected discounted cash flows attributed to the indefinite-lived intangible asset, the carrying value is no longer considered recoverable and the Company will record an impairment. The Company tests intangible assets subject to amortization for impairment when certain triggering events or circumstances indicate that their carrying value may be impaired. If the carrying value exceeds the Company’s estimate of future undiscounted cash flows of the operations related to the asset, an impairment is recorded for the difference between the carrying amount and the fair value of the asset. See Note 7 – Goodwill and Other Intangibles Assets, net for further detail. | |||||
Acquisitions | |||||
The Company recognizes the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. Contingent purchase consideration is recorded at fair value at the date of acquisition. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. Within one year from the date of acquisition, the Company may update the value allocated to the assets acquired and liabilities assumed and the resulting goodwill balances as a result of information received regarding the valuation of such assets and liabilities that was not available at the time of purchase. Measuring assets and liabilities at fair value requires the Company to determine the price that would be paid by a third party market participant based on the highest and best use of the assets or interests acquired. Acquisition costs are expensed as incurred. | |||||
Other Assets | |||||
The Company’s other assets, exclusive of prepaid expenses, consist primarily of receivables from insurers, notes and other contractual receivables, and assets held for sale. Other assets are reported within either prepaid expenses and other current assets or other assets in the Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. | |||||
Receivables from insurers represent the portion of insured losses expected to be recovered from the Company’s insurance carriers and are recorded at the time the Company records a liability for an insured loss. The receivable is recorded at an amount not to exceed the recorded loss and only if the terms of legally enforceable insurance contracts support that the insurance recovery will not be disputed and is deemed collectible. | |||||
Notes receivable consist primarily of loans to entities in the business of extracting scrap metal through demolition and other activities. Repayment of these loans is in either cash or scrap metal. Other contractual receivables consist primarily of amounts due from scrap and demolition entities under financial guarantee arrangements. The Company performs periodic reviews of its notes and other contractual receivables to identify credit risks and to assess the overall collectability of the receivables, which typically involves consideration of the value of collateral in the form of scrap metal extracted from demolition and construction projects. A note or other contractual receivable is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the agreement. Once a note or other contractual receivable has been identified as impaired, it is measured based on the present value of payments expected to be received, discounted at the receivable’s contractual interest rate, or for arrangements that are solely dependent on collateral for repayment, the estimated fair value of the collateral less estimated costs to sell. If the carrying value of the receivable exceeds its recoverable amount, an impairment is recorded for the difference. During the fiscal year ended August 31, 2013, the Company recorded an impairment charge related to other contractual receivables of $8 million, which represents the full amount of the allowance for credit losses on notes and other contractual receivables as of August 31, 2013, and which is reported within other asset impairment charges in the Consolidated Statements of Operations. | |||||
A long-lived asset is classified as held for sale upon meeting criteria specified in the accounting standards. An asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. An impairment loss is recognized for any initial or subsequent write-down of the asset to its fair value less cost to sell. The Company determines fair value using Level 3 inputs under the fair value hierarchy consisting of information provided by brokers and other external sources along with management’s own assumptions. During the fiscal year ended August 31, 2013, the Company recorded an impairment charge related to assets held for sale of $3 million, which is reported within other asset impairment charges in the Consolidated Statements of Operations. | |||||
Other Asset Impairment Charges | |||||
The following impairment charges were recorded within other asset impairment charges in the Consolidated Statements of Operations in fiscal 2013 (in thousand): | |||||
2013 | |||||
Investment in joint venture partnership | $ | 2,411 | |||
Contractual receivable | 7,803 | ||||
Assets held for sale | 2,526 | ||||
Other | 313 | ||||
Total | $ | 13,053 | |||
Restructuring Charges | |||||
Restructuring charges consist of severance, contract termination and other exit costs. A liability for severance costs is typically recognized when the plan of termination has been communicated to the affected employees and is measured at its fair value at the communication date. Contract termination costs consist primarily of costs that will continue to be incurred under operating leases for their remaining terms without economic benefit to the Company. A liability for contract termination costs is recognized at the date the Company ceases using the rights conveyed by the lease contract and is measured at its fair value, which is determined based on the remaining contractual lease rentals reduced by estimated sublease rentals. A liability for other exit costs is measured at its fair value in the period in which the liability is incurred. See Note 12 - Restructuring Charges for further detail. | |||||
Accrued Workers’ Compensation Costs | |||||
The Company is self-insured for workers’ compensation claims with exposure limited by various stop-loss insurance policies. The Company estimates the costs of workers’ compensation claims based on the nature of the injury incurred and on guidelines established by the applicable state. An accrual is recorded based upon the amount of unpaid claims as of the balance sheet date. Accrued amounts recorded for individual claims are reviewed periodically as treatment progresses and adjusted to reflect additional information that becomes available. The estimated cost of claims incurred but not reported is included in the accrual. The Company accrued $10 million and $11 million for the estimated cost of workers’ compensation claims as of August 31, 2013 and 2012, respectively, which are included in other accrued liabilities in the Consolidated Balance Sheets. | |||||
Environmental Liabilities | |||||
The Company estimates future costs for known environmental remediation requirements and accrues for them on an undiscounted basis when it is probable that the Company has incurred a liability and the related costs can be reasonably estimated but the timing of incurring the estimated costs is unknown. The Company considers various factors when estimating its environmental liabilities. Adjustments to the liabilities are are recorded to selling, general and administrative expense and made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or when expenditures are made for which liabilities were established. Legal costs incurred in connection with environmental contingencies are expensed as incurred. | |||||
When only a wide range of estimated amounts can be reasonably established and no other amount within the range is a better estimate than another, the low end of the range is recorded in the financial statements. In a number of cases, it is possible that the Company may receive reimbursement through insurance or from other potentially responsible parties for a site. In these situations, recoveries of environmental remediation costs from other parties are recognized when the claim for recovery is actually realized. The amounts recorded for environmental liabilities are reviewed periodically as site assessment and remediation progresses at individual sites and adjusted to reflect additional information that becomes available. Due to evolving remediation technology, changing regulations, possible third party contributions, the subjective nature of the assumptions used and other factors, amounts accrued could vary significantly from amounts paid. See “Contingencies – Environmental” in Note 11 – Commitments and Contingencies for further detail. | |||||
Financial Instruments | |||||
The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, debt and derivative contracts. The Company uses the market approach to value its financial assets and liabilities, determined using available market information. The net carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short term nature of these instruments. For long-term debt, which is primarily at variable interest rates, fair value is estimated using observable inputs (Level 2) and approximates its carrying value. | |||||
Fair Value Measurements | |||||
Fair value is measured using inputs from the three levels of the fair value hierarchy. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are described as follows: | |||||
• | Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. | ||||
• | Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the determination of the fair value of the asset or liability, either directly or indirectly. | ||||
• | Level 3 – Unobservable inputs that are significant to the determination of fair value of the asset or liability. | ||||
When developing the fair value measurements, the Company uses quoted market prices whenever available or seeks to maximize the use of observable inputs and minimize the use of unobservable inputs when quoted market prices are not available. See Note 7 - Goodwill and Other Intangible Assets, net, Note 10 - Fair Value Measurements, Note 13 - Redeemable Noncontrolling Interest and Note 15 - Derivative Financial Instruments for further detail. | |||||
Derivatives | |||||
The Company records derivative instruments in other assets or other liabilities in the Consolidated Balance Sheets at fair value and changes in the fair value are either recognized in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets or net income (loss) in the Consolidated Statements of Operations, as applicable, depending on the nature of the underlying exposure, whether the derivative has been designated as a hedge, and if designated as a hedge, the extent to which the hedge is effective. Amounts included in accumulated other comprehensive income (loss) are reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the hedged transaction is deemed no longer likely to occur. For cash flow hedges, a formal assessment is made, both at the hedge’s inception and on an ongoing basis, to determine whether the derivatives that are designated as hedging instruments have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. To the extent the hedge is determined to be ineffective, the ineffective portion is immediately recognized in earnings. When available, quoted market prices or prices obtained through external sources are used to measure a derivative instrument’s fair value. The fair value of these instruments is a function of underlying forward commodity prices, related volatility, counterparty creditworthiness and duration of the contracts. Cash flows from derivatives are recognized in the Consolidated Statements of Cash Flows in a manner consistent with the underlying transactions. See Note 15 - Derivative Financial Instruments for further detail. | |||||
Derivative contracts for commodities used in normal business operations that are settled by physical delivery, among other criteria, are eligible for and may be designated as normal purchases and normal sales. Contracts that qualify as normal purchases or normal sales are not marked-to-market. The Company does not use derivative instruments for trading or speculative purposes. | |||||
Foreign Currency Translation and Transactions | |||||
Assets and liabilities of the Company’s operations in Canada are translated into U.S. dollars at the period-end exchange rate, revenues and expenses of these operations are translated into U.S. dollars at the average exchange rate for the period, and cash flows of these operations are translated into U.S. dollars using the exchange rates in effect at the time of the cash flows. Translation adjustments are not included in determining net income (loss) for the period, but are recorded in accumulated other comprehensive income (loss), a separate component of SSI shareholders’ equity. Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency of the Company, which is the U.S. dollar. Gains and losses on foreign currency transactions are generally required to be recognized in the determination of net income (loss) for the period. The Company records these gains and losses in other income, net in the Statements of Operations. Net realized and unrealized foreign currency transaction gains (losses) were not material for each of the years ended August 31, 2013, 2012 and 2011. | |||||
Redeemable Noncontrolling Interest | |||||
The Company issued common stock of one of its subsidiaries to the noncontrolling interest holder of that subsidiary that, prior to the Company’s purchase of that interest on March 8, 2013, had been redeemable both at the option of the holder and upon the occurrence of an event that was not solely within the Company’s control. Since redemption of the noncontrolling interest was outside of the Company’s control, this interest was presented on the Consolidated Balance Sheets in the mezzanine section under the caption redeemable noncontrolling interest. If the interest had been redeemed, the Company would have been required to purchase all of such interest at fair value on the date of redemption. Prior to its purchase by the Company on March 8, 2013, the redeemable noncontrolling interest was presented at the greater of its carrying amount (adjusted for the noncontrolling interest’s share of the allocation of income or loss of the subsidiary, dividends to and contributions from the noncontrolling interest) or its fair value as of each measurement date. Any adjustments to the carrying amount of the redeemable noncontrolling interest for changes in fair value prior to the Company’s purchase of the interest in March 2013 were recorded to retained earnings. See Note 13 – Redeemable Noncontrolling Interest for further detail. | |||||
Common Stock | |||||
Each share of Class A and Class B common stock is entitled to one vote. Additionally, each share of Class B common stock may be converted to one share of Class A common stock. As such, the Company reserves one share of Class A common stock for each share of Class B common stock outstanding. There are currently no meaningful distinctions between the rights of holders of Class A shares and Class B shares. | |||||
Shareholder Rights Plan | |||||
Under its shareholder rights plan, the Company issued a dividend distribution of one preferred share purchase right (a “Right”) for each share of Class A common stock or Class B common stock held by shareholders of record as of the close of business on April 4, 2006. The Rights generally become exercisable if a person or group has acquired 15% or more of the Company’s outstanding common stock or announces a tender offer or exchange offer which, if consummated, would result in ownership by a person or group of 15% or more of the Company’s outstanding common stock (“Acquiring Person”). Each Right entitles shareholders to buy one one-thousandth of a share of Series A Participating Preferred Stock (“Series A Shares”) of the Company at an exercise price of $110, subject to adjustments. Holders of Rights (other than an Acquiring Person) are entitled to receive upon exercise Series A Shares, or in lieu thereof, Class A common stock of the Company having a value of twice the Right’s then-current exercise price. The Series A Shares are not redeemable by the Company and have voting privileges and certain dividend and liquidation preferences. The Rights will expire on March 21, 2016, unless such date is extended or the Rights are redeemed or exchanged on an earlier date. | |||||
Share Repurchases | |||||
The Company accounts for the repurchase of stock at par value. All shares repurchased are deemed retired. Upon retirement of the shares, the Company records the difference between the weighted average cost of such shares and the par value of the stock as an adjustment to additional paid-in capital, with the excess to retained earnings when additional paid-in capital is not sufficient. | |||||
Revenue Recognition | |||||
The Company recognizes revenue when it has a contract or purchase order from a customer with a fixed price, the title and risk of loss transfer to the buyer and collectibility is reasonably assured. Title for both metal and finished steel products transfers based on contract terms. A significant portion of the Company’s ferrous export sales of recycled metal are made with letters of credit, reducing credit risk. However, domestic recycled ferrous metal sales, nonferrous sales and sales of finished steel are generally made on open account. Nonferrous export sales typically require a deposit prior to shipment. All sales made on open account are evaluated for collectibility prior to revenue recognition. Additionally, the Company recognizes revenues on partially loaded shipments when detailed documents support revenue recognition based on transfer of title and risk of loss. The Company reports revenue net of the payments made to the supplier of scrap metal when the supplier, and not the Company, is responsible for fulfillment, including the acceptability of the products purchased by the customer. For APB, retail revenues are recognized when customers pay for parts, and wholesale product revenues are recognized when customer weight certificates are received following shipments. Historically, there have been very few sales returns and adjustments that impact the ultimate collection of revenues; therefore, no material provisions have been made when the sale is recognized. The Company presents taxes assessed by governmental authorities collected from customers on a net basis. Therefore, the taxes are excluded from revenue and are shown as a liability on the Consolidated Balance Sheets until remitted. | |||||
Freight Costs | |||||
The Company classifies shipping and handling costs billed to customers as revenue and the related costs incurred as a component of cost of goods sold. | |||||
Share-Based Compensation | |||||
The Company recognizes compensation cost relating to share-based payment transactions over the vesting period, with the cost measured based on the grant-date fair value of the equity instruments issued, net of an estimated forfeiture rate. See Note 17 – Share-Based Compensation for further detail. | |||||
Income Taxes | |||||
Income taxes are accounted for using the asset and liability method. This requires the recognition of taxes currently payable or refundable and the recognition of deferred tax assets and liabilities for the future tax consequences of events that are recognized in one reporting period on the Consolidated Financial Statements but in a different reporting period on the tax returns. Tax credits are recognized as a reduction of income tax expense in the year the credit arises. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Tax benefits arising from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination by the relevant tax authorities. The amount recognized in the financial statements is the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. See Note 18 – Income Taxes for further detail. | |||||
Net Income (Loss) per Share | |||||
Basic net income (loss) per share attributable to SSI is computed by dividing net income (loss) by the weighted average number of outstanding common shares during the periods presented including vested deferred stock units (“DSUs”) and restricted stock units (“RSUs”). Diluted net income (loss) per share attributable to SSI is computed by dividing net income (loss) by the weighted average number of common shares outstanding, assuming dilution. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of performance shares, DSU and RSU awards using the treasury stock method. Certain of the Company’s stock options, RSUs and performance share awards were excluded from the calculation of diluted net income (loss) per share because they were antidilutive; however, these options and awards could be dilutive in the future. Net income attributable to noncontrolling interests is deducted from the income (loss) from continuing operations to arrive at the net income (loss) from continuing operations attributable to SSI for purposes of calculating net income (loss) per share. See Note 19 – Net Income (Loss) Per Share for further detail. | |||||
Use of Estimates | |||||
The preparation of the Company’s Consolidated Financial Statements in accordance with generally accepted accounting principles in the U.S. of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenue and expenses during the reporting period. Examples include valuation of assets received in acquisitions; revenue recognition; the allowance for doubtful accounts; estimates of contingencies, including environmental liabilities; goodwill and intangible asset valuation; valuation of investments in joint venture partnerships; other asset valuation; inventory valuation; redeemable noncontrolling interest valuation; pension plan assumptions; and the assessment of the valuation of deferred income taxes and income tax contingencies. Actual results may differ from estimated amounts. | |||||
Concentration of Credit Risk | |||||
Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable and notes and other contractual receivables. The majority of cash and cash equivalents are maintained with two major financial institutions (Bank of America and Wells Fargo Bank, N.A.). Balances with these institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of August 31, 2013. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up the Company’s customer base. The Company controls credit risk through credit approvals, credit limits, letters of credit or other collateral and monitoring procedures. The Company is exposed to a residual credit risk with respect to open letters of credit by virtue of the possibility of the failure of a bank providing a letter of credit. The Company had $94 million and $37 million of open letters of credit as of August 31, 2013 and 2012, respectively. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In December 2011, an accounting standard update was issued increasing disclosures regarding offsetting assets and liabilities. For financial instruments and derivative instruments, the standard requires disclosure of the gross amounts of recognized assets and liabilities, the amounts offset on the balance sheet, and the amounts subject to the offsetting requirements but not offset on the balance sheet. The standard is effective for the Company for fiscal year 2014 and interim periods therein and is to be applied retrospectively. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. | |
In July 2012, an accounting standard update was issued that simplifies how an entity tests indefinite-lived intangible assets for impairment by allowing an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The revised standard is effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. The Company early-adopted this standard for the annual impairment test performed in the second quarter of fiscal 2013.The adoption of this standard did not have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. | |
In February 2013, an accounting standards update was issued that amends the reporting of amounts reclassified out of accumulated other comprehensive income. This standard does not change the current requirements for reporting net income or other comprehensive income in the financial statements. However, the guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component, either on the face of the financial statement where net income is presented or in the notes to the financial statements. The standard is effective for the Company for fiscal 2014 and is to be applied prospectively. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial position, results of operations or cash flows. |
Inventories_net
Inventories, net | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Inventory, Net [Abstract] | ||||||||
Inventories, net | Inventories, net | |||||||
Inventories, net consisted of the following as of August 31 (in thousands): | ||||||||
2013 | 2012 | |||||||
Processed and unprocessed scrap metal | $ | 132,485 | $ | 152,930 | ||||
Semi-finished goods (billets) | 10,745 | 7,328 | ||||||
Finished goods | 56,830 | 49,988 | ||||||
Supplies | 35,989 | 36,746 | ||||||
Inventories, net | $ | 236,049 | $ | 246,992 | ||||
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Property, Plant and Equipment, net | Property, Plant and Equipment, net | |||||||
Property, plant and equipment, net consisted of the following as of August 31 (in thousands): | ||||||||
2013 | 2012 | |||||||
Machinery and equipment | $ | 696,776 | $ | 671,615 | ||||
Land and improvements | 251,793 | 231,925 | ||||||
Buildings and leasehold improvements | 114,313 | 91,411 | ||||||
Office equipment | 47,995 | 43,240 | ||||||
ERP systems | 15,246 | 15,246 | ||||||
Construction in progress | 36,292 | 46,476 | ||||||
Property, plant and equipment, gross | 1,162,415 | 1,099,913 | ||||||
Less: accumulated depreciation | (597,989 | ) | (535,728 | ) | ||||
Property, plant and equipment, net | $ | 564,426 | $ | 564,185 | ||||
Depreciation expense for property, plant and equipment, which includes amortization of assets under capital leases, was $78 million, $77 million and $68 million for the years ended August 31, 2013, 2012 and 2011, respectively. |
Business_Combinations
Business Combinations | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Business Combinations [Abstract] | ||||||||
Business Combinations | Business Combinations | |||||||
During fiscal 2013, the Company made the following acquisitions: | ||||||||
• | In December 2012, the Company acquired substantially all of the assets of Ralph’s Auto Supply (B.C.) Ltd., a used auto parts business with four stores in Richmond and Surrey, British Columbia, which expanded APB’s presence in Western Canada and is near MRB’s operations in Surrey, British Columbia. | |||||||
• | In December 2012, the Company acquired substantially all of the assets of U-Pick-It, Inc., a used auto parts business with two stores in the Kansas City metropolitan area in Missouri and Kansas, which expanded APB’s presence in the Midwestern U.S. | |||||||
• | In December 2012, the Company acquired all of the equity interests of Freetown Self Serve Used Auto Parts, LLC, Freetown Transfer Facility, LLC, Millis Used Auto Parts, Inc. and Millis Industries, Inc., which together operated a used auto parts and scrap metal recycling business with two stores in Massachusetts. This acquisition established a new APB presence in the Northeastern U.S. and expanded the nearby MRB operations. | |||||||
• | In June 2013, the Company acquired substantially all of the assets of Bill’s Auto Parts, Inc. and Perkins Horseshoe Works, Inc., which operated a used auto parts business with one store in Rhode Island. This acquisition expanded APB’s presence in the Northeastern U.S. and is near MRB’s operations. | |||||||
The aggregate consideration paid for these acquisitions was $26 million, which was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the date of acquisition. The excess of the aggregate consideration paid over the fair value of the identifiable net assets acquired of $20 million was recorded as goodwill, of which $18 million is expected to be deductible for tax purposes. Since the dates of acquisition, the acquired operations generated aggregate revenues from sales to third parties of $11 million and operating losses of $4 million through August 31, 2013, excluding the benefits realized from integrating the acquired businesses with our existing operations located in geographic proximity. | ||||||||
The acquisitions completed in fiscal 2013 were not material, individually or in the aggregate, to the Company’s financial position or results of operations. Pro forma operating results for the acquisitions are not presented, since the aggregate results would not be significantly different than reported results. | ||||||||
During fiscal 2012, the Company made the following acquisition: | ||||||||
• | In June 2012, the Company acquired substantially all of the assets of Rocky Mountain Salvage, Ltd., a metals recycler in Hinton, Alberta, which expanded MRB’s presence in Western Canada. | |||||||
The acquisition completed in fiscal 2012 was not material to the Company’s financial position or results of operations. Pro forma operating results for the fiscal 2012 acquisition is not presented, since the aggregate results would not be significantly different than reported results. | ||||||||
During fiscal 2011, the Company made the following acquisitions: | ||||||||
• | In September 2010, the Company acquired substantially all of the assets of SOS Metals Island Recycling, LLC, a metals recycler in Maui, Hawaii, to provide an additional source of scrap metal for the MRB Hawaii facility. | |||||||
• | In November 2010, the Company acquired substantially all of the assets utilized by Specialized Parts Planet, Inc. at its Stockton, California used auto parts facility, which expanded APB’s presence in the Western U.S. | |||||||
• | In December 2010, the Company acquired substantially all of the assets of Waco U-Pull It, Inc., a used auto parts store in Waco, Texas, which expanded APB’s presence in the Southwestern U.S. | |||||||
• | In December 2010, the Company acquired substantially all of the assets of Macon Iron & Paper Stock Co., a metals recycler with two yards in Macon, Georgia, which expanded MRB’s presence in the Southeastern U.S. | |||||||
• | In December 2010, the Company acquired substantially all of the assets of Steel Pacific Recycling Inc., a metals recycler with six yards on Vancouver Island, British Columbia, Canada, that previously supplied ferrous scrap to MRB’s Tacoma, Washington facility. This acquisition marked MRB’s initial expansion into Canada. | |||||||
• | In January 2011, the Company acquired substantially all of the assets of State Line Scrap Co., Inc., a metals recycler with one yard in Attleboro, Massachusetts, which expanded MRB’s presence in the Northeastern U.S. | |||||||
• | In January 2011, the Company acquired substantially all of the mobile car crushing assets of Northwest Recycling, Inc., based in Portland, Oregon, which provides scrap metal for MRB’s Portland, Oregon facility. | |||||||
• | In February 2011, the Company acquired substantially all of the assets of Ferrill’s Auto Parts, Inc., a used auto parts business with three stores in Seattle, Washington, which expanded APB’s presence in the Northwestern U.S. | |||||||
• | In March 2011, the Company acquired substantially all of the metals recycling business assets of Amix Salvage & Sales Ltd., which operated four metals recycling yards in British Columbia, Canada and two metals recycling yards in Alberta, Canada that previously supplied ferrous scrap to MRB’s Tacoma, Washington facility. This acquisition expanded MRB’s presence in Western Canada. As part of the consideration paid, the Company issued the seller common shares equal to 20% of the issued and outstanding capital stock of the Company’s acquisition subsidiary. | |||||||
• | In April 2011, the Company acquired substantially all of the assets of American Metal Group, Inc. and certain of its affiliates, a metals recycler with yards in San Jose and Santa Clara, California that previously supplied ferrous scrap to MRB’s Oakland, California facility. This acquisition expanded MRB’s presence in the Western U.S. | |||||||
The aggregate consideration paid for these acquisitions of $316 million, comprising $294 million in cash and $22 million in non-cash consideration ($20 million in shares of a subsidiary and $2 million in contingent consideration which was subsequently paid in cash in the third quarter of fiscal 2012) was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the date of acquisition. The excess of the aggregate purchase price over the fair value of the identifiable net assets acquired of $253 million was recorded as goodwill, of which $245 million is expected to be deductible for tax purposes. | ||||||||
The following unaudited pro forma summary presents the effect on the consolidated financial results of the Company of the businesses acquired during the year ended August 31, 2011 as though the businesses had been acquired as of the beginning of fiscal 2010 (in thousands): | ||||||||
2011 | 2010 | |||||||
Revenues | $ | 3,539,677 | $ | 2,466,547 | ||||
Operating income(1) | $ | 204,613 | $ | 149,328 | ||||
Net income(1) | $ | 134,921 | $ | 82,481 | ||||
Net income attributable to SSI(1) | $ | 127,954 | $ | 78,106 | ||||
_____________________________ | ||||||||
-1 | Excludes nonrecurring executive compensation paid to the management of acquired companies that will not be incurred in the future. | |||||||
These pro forma results are not necessarily indicative of what actual results would have been had these acquisitions occurred for the periods presented. In addition, the pro forma results are not intended to be a projection of future results and do not reflect any synergies that may be achieved from combining operations. | ||||||||
The following is a summary of the aggregate fair values of assets acquired and liabilities assumed for acquisitions completed during the year ended August 31, 2011 (in thousands): | ||||||||
Assets: | 2011 | |||||||
Cash and cash equivalents | $ | 285 | ||||||
Accounts receivable | 5,490 | |||||||
Inventories | 21,794 | |||||||
Prepaid expenses and other current assets | 777 | |||||||
Deferred tax assets | 2,499 | |||||||
Property, plant and equipment | 58,811 | |||||||
Intangible assets | 7,182 | |||||||
Other assets | 16 | |||||||
Goodwill | 253,336 | |||||||
Liabilities: | ||||||||
Short-term liabilities | (22,223 | ) | ||||||
Environmental liabilities | (9,083 | ) | ||||||
Long-term debt and capital lease obligations | (1,222 | ) | ||||||
Deferred tax liability - long-term | (1,646 | ) | ||||||
Net assets acquired(1) | $ | 316,016 | ||||||
_____________________________ | ||||||||
-1 | The acquisitions completed in fiscal 2013 and 2012 were not material, individually or in the aggregate, to the Company’s financial position or results of operations. | |||||||
The following table presents the fair value of intangible assets acquired with the acquisitions completed during the year ended August 31, 2011 (dollars in thousands): | ||||||||
Weighted | Acquisition Date | |||||||
Average Life | Fair Value | |||||||
In Years | ||||||||
Covenants not to compete | 4.8 | $ | 6,062 | |||||
Other intangible assets subject to amortization(1) | 1.5 | 863 | ||||||
Indefinite-lived intangible assets(2) | Indefinite | 257 | ||||||
Total | 4.4 | $ | 7,182 | |||||
_____________________________ | ||||||||
(1) | Other intangible assets subject to amortization include supply contracts, permits and licenses and leasehold interests. | |||||||
-2 | Indefinite-lived intangible assets include tradenames and real property options. | |||||||
The Company paid a premium (i.e., goodwill) over the fair value of the net tangible and identified intangible assets acquired in the transactions described above for a number of reasons, including but not limited to the following: | ||||||||
• | The Company will benefit from the assets and capabilities of these acquisitions, including additional resources, skills and industry expertise; | |||||||
• | The acquired businesses increase the Company’s market presence in new and existing regions; and | |||||||
• | The Company anticipates cost savings, efficiencies and synergies. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets, net | 12 Months Ended | |||||||||||||||
Aug. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net | |||||||||||||||
In the second quarter of fiscal 2013, the Company performed its annual goodwill impairment testing, proceeding directly to the two-step quantitative impairment test by comparing the fair value of each reporting unit with its carrying value, including goodwill. As a result of this test, the Company determined that the fair value of each reporting unit for which goodwill was allocated was in excess of its respective carrying value and, therefore, no goodwill impairment was identified. | ||||||||||||||||
In the fourth quarter of fiscal 2013, management identified the combination of the continued challenging market conditions, the constrained supply of raw materials, the Company’s recent financial performance and the lack of recovery of the Company’s market capitalization as a triggering event requiring an interim impairment test of goodwill allocated to its reporting units. The first step of the impairment test showed that the fair value of the MRB reporting unit was less than its carrying amount, indicating a potential impairment. Based on the second step of the impairment test, the Company concluded that the implied fair value of goodwill for the MRB reporting unit was less than its carrying amount, resulting in a partial impairment charge of MRB’s goodwill totaling $321 million. | ||||||||||||||||
The determination of fair value of the reporting units used to perform the first step of the impairment test requires judgment and involves significant estimates and assumptions about the expected future cash flows and the impact of market conditions on those assumptions. Due to the inherent uncertainty associated with forming these estimates, actual results could differ from those estimates. Future events and changing market conditions may impact the Company’s assumptions as to future revenue growth rates, pace and extent of operating margin and volume recovery, market-based WACC and other factors that may result in changes in the estimates of the Company’s reporting units’ fair value. Although management believes the assumptions used in testing the Company’s reporting units’ goodwill for impairment are reasonable, it is possible that market and economic conditions could deteriorate further or not improve as expected. Additional declines in or a lack of recovery in market conditions from current levels, a trend of weaker than anticipated Company financial performance including the pace and extent of operating margin and volume recovery, a further decline in the Company’s share price from current levels, or an increase in the market-based WACC, among other factors, could significantly impact the impairment analysis and may result in further goodwill impairment charges that, if incurred, could have a material adverse effect on the Company’s financial condition and results of operations. | ||||||||||||||||
The gross changes in the carrying amount of goodwill by reporting segment for the years ended August 31, 2013 and 2012 were as follows (in thousands): | ||||||||||||||||
MRB | APB | Total | ||||||||||||||
Balance as of August 31, 2011 | $ | 464,646 | $ | 163,159 | $ | 627,805 | ||||||||||
Acquisitions | 1,454 | — | 1,454 | |||||||||||||
Purchase price adjustments | 1,540 | — | 1,540 | |||||||||||||
Purchase accounting adjustments | 5,361 | 541 | 5,902 | |||||||||||||
Foreign currency translation adjustment | (1,047 | ) | (163 | ) | (1,210 | ) | ||||||||||
Balance as of August 31, 2012 | 471,954 | 163,537 | 635,491 | |||||||||||||
Acquisitions | 1,744 | 17,634 | 19,378 | |||||||||||||
Purchase accounting adjustments | 135 | 614 | 749 | |||||||||||||
Foreign currency translation adjustment | (5,620 | ) | (1,734 | ) | (7,354 | ) | ||||||||||
Goodwill impairment charges | (321,000 | ) | — | (321,000 | ) | |||||||||||
Balance as of August 31, 2013 | $ | 147,213 | $ | 180,051 | $ | 327,264 | ||||||||||
Accumulated goodwill impairment charges were $321 million and zero as of August 31, 2013 and 2012. | ||||||||||||||||
The following table presents the Company’s intangible assets as of August 31 (in thousands): | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Covenants not to compete | $ | 20,183 | $ | (10,796 | ) | $ | 25,041 | $ | (13,231 | ) | ||||||
Supply contracts | 2,264 | (1,725 | ) | 5,274 | (4,274 | ) | ||||||||||
Other intangible assets subject to amortization(1) | 3,783 | (1,618 | ) | 3,231 | (1,518 | ) | ||||||||||
Indefinite-lived intangibles(2) | 1,173 | — | 1,255 | — | ||||||||||||
Total | $ | 27,403 | $ | (14,139 | ) | $ | 34,801 | $ | (19,023 | ) | ||||||
_____________________________ | ||||||||||||||||
-1 | Other intangible assets subject to amortization include tradenames, marketing agreements, employment agreements, leasehold interests, permits and licenses and real property options. | |||||||||||||||
-2 | Indefinite-lived intangibles include tradenames, permits and licenses and real property options. | |||||||||||||||
Total intangible asset amortization expense was $5 million for the years ended August 31, 2013 and 2012 and $7 million for the year ended August 31, 2011. | ||||||||||||||||
The estimated amortization expense, based on current intangible asset balances, during the next five fiscal years and thereafter is as follows (in thousands): | ||||||||||||||||
Years Ending August 31, | Estimated | |||||||||||||||
Amortization | ||||||||||||||||
Expense | ||||||||||||||||
2014 | $ | 3,999 | ||||||||||||||
2015 | 2,386 | |||||||||||||||
2016 | 1,324 | |||||||||||||||
2017 | 762 | |||||||||||||||
2018 | 445 | |||||||||||||||
Thereafter | 3,175 | |||||||||||||||
Total | $ | 12,091 | ||||||||||||||
ShortTerm_Borrowings
Short-Term Borrowings | 12 Months Ended |
Aug. 31, 2013 | |
Short-term Debt [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings |
The Company has an unsecured, uncommitted $25 million credit line with Wells Fargo Bank, N.A. that expires on March 1, 2014. Interest rates are set by the bank at the time of borrowing. The interest rate on amounts outstanding under this credit line was 2.1% as of August 31, 2013. The Company had $9 million in borrowings outstanding under this credit line as of August 31, 2013, and no borrowings outstanding as of August 31, 2012. The credit agreement contains various representations and warranties, events of default and financial and other covenants, including covenants regarding maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||
Long-Term Debt | Long-Term Debt | ||||||||||||
Long-term debt consisted of the following as of August 31 (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Bank unsecured revolving credit facility, interest at LIBOR plus a spread | $ | 359,971 | $ | 325,292 | |||||||||
Tax-exempt economic development revenue bonds due January 2021, interest payable monthly at a variable rate (0.12% as of August 31, 2013), secured by a letter of credit | 7,700 | 7,700 | |||||||||||
Capital lease obligations due through April 2031 | 5,666 | 2,320 | |||||||||||
Total long-term debt | 373,337 | 335,312 | |||||||||||
Less current maturities | (674 | ) | (683 | ) | |||||||||
Long-term debt, net of current maturities | $ | 372,663 | $ | 334,629 | |||||||||
The Company’s credit facility, which provides for revolving loans of $670 million and C$30 million, matures in April 2017 pursuant to an unsecured committed bank credit agreement with Bank of America, N.A. as administrative agent, and other lenders party thereto. Interest rates on outstanding indebtedness under the agreement are based, at the Company’s option, on either the London Interbank Offered Rate (or the Canadian equivalent) plus a spread of between 1.25% and 2.25%, with the amount of the spread based on a pricing grid tied to the Company’s leverage ratio, or the greater of the prime rate, the federal funds rate plus 0.5% or the British Bankers Association LIBOR Rate plus 1.75%. In addition, annual commitment fees are payable on the unused portion of the credit facility at rates between 0.15% and 0.35% based on a pricing grid tied to the Company’s leverage ratio. The Company had borrowings outstanding under the credit facility of $360 million and $325 million as of August 31, 2013 and 2012, respectively. The weighted average interest rate on amounts outstanding under this facility was 1.98% and 2.06% as of August 31, 2013 and 2012, respectively. The credit agreement contains various representations and warranties, events of default and financial and other covenants, including covenants regarding maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. | |||||||||||||
Principal payments on long-term debt and capital lease obligations during the next five fiscal years and thereafter are as follows (in thousands): | |||||||||||||
Years Ending August 31, | Long-Term | Capital | Total | ||||||||||
Debt | Lease | ||||||||||||
Obligations | |||||||||||||
2014 | $ | — | $ | 1,575 | $ | 1,575 | |||||||
2015 | — | 1,237 | 1,237 | ||||||||||
2016 | — | 1,096 | 1,096 | ||||||||||
2017 | 359,971 | 1,089 | 361,060 | ||||||||||
2018 | — | 845 | 845 | ||||||||||
Thereafter | 7,700 | 4,415 | 12,115 | ||||||||||
Total | 367,671 | 10,257 | 377,928 | ||||||||||
Amounts representing interest and executory costs | — | (4,591 | ) | (4,591 | ) | ||||||||
Total less interest | $ | 367,671 | $ | 5,666 | $ | 373,337 | |||||||
The Company maintains stand-by letters of credit to provide for certain obligations including workers’ compensation and performance bonds. As of August 31, 2013 and 2012, the Company had $18 million outstanding under these arrangements. |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | |||||||||
Aug. 31, 2013 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||
The following table presents information about the Company’s assets and liabilities measured at fair value as of August 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized by the Company and the type of measurement. | ||||||||||
As of August 31, 2013 | ||||||||||
(in thousands) | Assets (Liabilities) at Fair Value | Fair Value Measurement Level | Type of Measurement | Balance Sheet Classification | ||||||
Assets: | ||||||||||
Assets held for sale | $ | 2,902 | Level 3 | Non-recurring | Prepaid expenses and other current assets | |||||
Investment in joint venture partnership | 3,261 | Level 3 | Non-recurring | Investments in joint venture partnerships | ||||||
Total assets | $ | 6,163 | ||||||||
Liabilities: | ||||||||||
Contract termination costs | $ | (1,672 | ) | Level 3 | Non-recurring | Other accrued liabilities and Other long-term liabilities | ||||
Total liabilities | $ | (1,672 | ) | |||||||
There were no material assets and liabilities measured at fair value as of August 31, 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||||||||||||||||||||||
Commitments | ||||||||||||||||||||||||||||||||||||
The Company leases a portion of its capital equipment and certain of its facilities under leases that expire at various dates through fiscal 2047. Rent expense was $28 million for fiscal 2013 and 2012, respectively, and $25 million for fiscal 2011. | ||||||||||||||||||||||||||||||||||||
The table below sets forth the Company’s future minimum obligations under non-cancelable operating leases as of August 31, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||
Years ending August 31, | Operating | |||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||
2014 | $ | 21,101 | ||||||||||||||||||||||||||||||||||
2015 | 18,027 | |||||||||||||||||||||||||||||||||||
2016 | 12,076 | |||||||||||||||||||||||||||||||||||
2017 | 9,980 | |||||||||||||||||||||||||||||||||||
2018 | 7,138 | |||||||||||||||||||||||||||||||||||
Thereafter | 36,281 | |||||||||||||||||||||||||||||||||||
Total | $ | 104,603 | ||||||||||||||||||||||||||||||||||
Contingencies – Environmental | ||||||||||||||||||||||||||||||||||||
Changes in the Company’s environmental liabilities for the years ended August 31, 2013 and 2012 were as follows (in thousands): | ||||||||||||||||||||||||||||||||||||
Reporting | Balance | Liabilities Established | Payments | Ending | Liabilities Established | Payments | Ending | Short-Term | Long-Term | |||||||||||||||||||||||||||
Segment | 8/31/11 | (Released), | Balance 8/31/2012 | (Released), | Balance 8/31/2013 | |||||||||||||||||||||||||||||||
Net(1) | Net(1) | |||||||||||||||||||||||||||||||||||
MRB | $ | 25,655 | $ | 5,380 | $ | (176 | ) | $ | 30,859 | $ | (69 | ) | $ | (270 | ) | $ | 30,520 | $ | 200 | $ | 30,320 | |||||||||||||||
APB | 15,200 | 1,000 | — | 16,200 | 2,574 | — | 18,774 | 554 | 18,220 | |||||||||||||||||||||||||||
Corporate | — | — | — | — | 500 | — | 500 | — | 500 | |||||||||||||||||||||||||||
Total | $ | 40,855 | $ | 6,380 | $ | (176 | ) | $ | 47,059 | $ | 3,005 | $ | (270 | ) | $ | 49,794 | $ | 754 | $ | 49,040 | ||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||||||
-1 | During fiscal 2013 and 2012, the Company recorded $3 million and $8 million, respectively, in purchase accounting for environmental liabilities related to properties acquired or leased in connection with business combinations. | |||||||||||||||||||||||||||||||||||
Metals Recycling Business | ||||||||||||||||||||||||||||||||||||
As of August 31, 2013, MRB had environmental liabilities of $31 million for the potential remediation of locations where it has conducted business or has environmental liabilities from historical or recent activities. | ||||||||||||||||||||||||||||||||||||
Portland Harbor | ||||||||||||||||||||||||||||||||||||
In December 2000, the Company was notified by the United States Environmental Protection Agency (“EPA”) under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) that it is one of the potentially responsible parties (“PRPs”) that own or operate or formerly owned or operated sites which are part of or adjacent to the Portland Harbor Superfund site (the “Site”). The precise nature and extent of any cleanup of the Site, the parties to be involved, the process to be followed for any cleanup and the allocation of the costs for any cleanup among responsible parties have not yet been determined, but the process of identifying additional PRPs and beginning allocation of costs is underway. It is unclear to what extent the Company will be liable for environmental costs or natural resource damage claims or third party contribution or damage claims with respect to the Site. While the Company participated in certain preliminary Site study efforts, it is not party to the consent order entered into by the EPA with certain other PRPs, referred to as the “Lower Willamette Group” (“LWG”), for a remedial investigation/feasibility study (“RI/FS”). | ||||||||||||||||||||||||||||||||||||
During fiscal 2007, the Company and certain other parties agreed to an interim settlement with the LWG under which the Company made a cash contribution to the LWG RI/FS. The Company has also joined with more than 80 other PRPs, including the LWG, in a voluntary process to establish an allocation of costs at the Site. These parties have selected an allocation team and have entered into an allocation process design agreement. The LWG has also commenced federal court litigation, which has been stayed, seeking to bring additional parties into the allocation process. | ||||||||||||||||||||||||||||||||||||
In January 2008, the Natural Resource Damages Trustee Council (“Trustees”) for Portland Harbor invited the Company and other PRPs to participate in funding and implementing the Natural Resource Injury Assessment for the Site. Following meetings among the Trustees and the PRPs, a funding and participation agreement was negotiated under which the participating PRPs agreed to fund the first phase of the natural resource damage assessment. The Company joined in that Phase I agreement and paid a portion of those costs. The Company did not participate in funding the second phase of the natural resource damage assessment. | ||||||||||||||||||||||||||||||||||||
On March 30, 2012, the LWG submitted to the EPA and made available on its website a draft feasibility study (“draft FS”) for the Site based on approximately ten years of work and $100 million in costs classified by the LWG as investigation related. The draft FS identifies ten possible remedial alternatives which range in estimated cost from approximately $170 million to $250 million (net present value) for the least costly alternative to approximately $1.08 billion to $1.76 billion (net present value) for the most costly and estimates a range of two to 28 years to implement the remedial work, depending on the selected alternative. The draft FS does not determine who is responsible for remediation costs, define the precise cleanup boundaries or select remedies. The draft FS is being reviewed and is likely to be subject to revisions, which could be significant, prior to its approval by the EPA. While the draft FS is an important step in the EPA’s development of a proposed plan for addressing the Site, a final decision on the nature and extent of the required remediation will occur only after the EPA has prepared a proposed plan for public review and issued a record of decision (“ROD”). Currently available information indicates that the EPA does not expect to issue its final ROD selecting a remedy for the Site until at least 2015. Responsibility for implementing and funding EPA’s selected remedy will be determined in a separate allocation process, which is currently underway. | ||||||||||||||||||||||||||||||||||||
Because there has not been a determination of the total cost of the investigations, the remediation that will be required, the amount of natural resource damages or how the costs of the ongoing investigations and any remedy and natural resource damages will be allocated among the PRPs, the Company believes it is not possible to reasonably estimate the amount or range of costs which it is likely or reasonably possible that the Company may incur in connection with the Site, although such costs could be material to the Company’s financial position, results of operations, cash flows and liquidity. Among the facts currently not known or available are detailed information on the history of ownership of and the nature of the uses of and activities and operations performed on each property within the Site, which are factors that will play a substantial role in determining the allocation of investigation and remedy costs among the PRPs. The Company has insurance policies that it believes will provide reimbursement for costs it incurs for defense and remediation in connection with the Site, although there is no assurance that those policies will cover all of the costs which the Company may incur. The Company previously recorded a liability for its estimated share of the costs of the investigation of $1 million. | ||||||||||||||||||||||||||||||||||||
The Oregon Department of Environmental Quality is separately providing oversight of voluntary investigations by the Company involving the Company’s sites adjacent to the Portland Harbor which are focused on controlling any current “uplands” releases of contaminants into the Willamette River. No liabilities have been established in connection with these investigations because the extent of contamination (if any) and the Company’s responsibility for the contamination (if any) has not yet been determined. | ||||||||||||||||||||||||||||||||||||
Other MRB Sites | ||||||||||||||||||||||||||||||||||||
As of August 31, 2013, the Company had environmental liabilities related to various MRB sites other than Portland Harbor of $30 million. The liabilities relate to the potential future remediation of soil contamination, groundwater contamination and storm water runoff issues and were not individually material at any site. | ||||||||||||||||||||||||||||||||||||
Auto Parts Business | ||||||||||||||||||||||||||||||||||||
As of August 31, 2013, the Company had environmental liabilities related to various APB sites of $19 million. The liabilities relate to the potential future remediation of soil contamination, groundwater contamination and storm water runoff issues and were not individually material at any site. | ||||||||||||||||||||||||||||||||||||
Steel Manufacturing Business | ||||||||||||||||||||||||||||||||||||
SMB’s electric arc furnace generates dust (“EAF dust”) that is classified as hazardous waste by the EPA because of its zinc and lead content. As a result, the Company captures the EAF dust and ships it in specialized rail cars to a domestic firm that applies a treatment that allows the EAF dust to be delisted as hazardous waste so it can be disposed of as a non-hazardous solid waste. | ||||||||||||||||||||||||||||||||||||
SMB has an operating permit issued under Title V of the Clean Air Act Amendments of 1990, which governs certain air quality standards. The permit is based upon an annual production capacity of 950 thousand tons. The permit was first issued in 1998 and has since been renewed through February 1, 2018. | ||||||||||||||||||||||||||||||||||||
SMB had no environmental liabilities as of August 31, 2013. | ||||||||||||||||||||||||||||||||||||
Other than the Portland Harbor Superfund site, which is discussed above, management currently believes that adequate provision has been made for the potential impact of these issues and that the ultimate outcomes will not have a material adverse effect on the Consolidated Financial Statements of the Company as a whole. Historically, the amounts the Company has ultimately paid for such remediation activities have not been material in any given period. | ||||||||||||||||||||||||||||||||||||
In addition, the Company is party to various legal proceedings arising in the normal course of business. Management believes that adequate provisions have been made for these contingencies. The Company does not anticipate that the resolution of legal proceedings arising in the normal course of business will have a material adverse effect on its results of operations, financial condition, or cash flows. |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Restructuring Charges [Abstract] | ||||||||||||||||||||||||||||||||||||
Restructuring Charges | Note 12 - Restructuring Charges | |||||||||||||||||||||||||||||||||||
In the fourth quarter of fiscal 2012, the Company undertook a number of restructuring initiatives designed to extract greater synergies from the significant acquisitions and technology investments made in recent years, achieve further integration between MRB and APB, and realign the Company’s organization to support its future growth and decrease operating expenses by streamlining functions and reducing organizational layers. | ||||||||||||||||||||||||||||||||||||
The Company incurred restructuring charges of $8 million and $5 million in fiscal 2013 and 2012, respectively. The remaining charges are expected to be incurred by the end of fiscal 2017. The vast majority of the restructuring charges require the Company to make cash payments. | ||||||||||||||||||||||||||||||||||||
The following illustrates the reconciliation of the restructuring liability by major type of costs for the years ended August 31, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||||||||||||
Balance 8/31/2011 | Charges | Payments and Other | Balance 8/31/2012 | Charges | Payments and Other | Balance 8/31/2013 | Total Charges to Date | Total Expected Charges | ||||||||||||||||||||||||||||
Severance costs | — | 2,741 | (264 | ) | $ | 2,477 | $ | 2,443 | $ | (4,642 | ) | $ | 278 | $ | 5,184 | $ | 5,200 | |||||||||||||||||||
Contract termination costs | — | 440 | (26 | ) | 414 | 3,229 | (616 | ) | 3,027 | 3,669 | 3,800 | |||||||||||||||||||||||||
Other exit costs | — | 1,831 | (1,767 | ) | 64 | 2,234 | (2,298 | ) | — | 4,065 | 4,100 | |||||||||||||||||||||||||
Total | $ | — | $ | 5,012 | $ | (2,057 | ) | $ | 2,955 | $ | 7,906 | $ | (7,556 | ) | $ | 3,305 | $ | 12,918 | $ | 13,100 | ||||||||||||||||
Restructuring charges by reporting segment were as follows (in thousands): | ||||||||||||||||||||||||||||||||||||
Fiscal 2012 Charges | Fiscal 2013 Charges | Total Charges to Date | Total Expected Charges | |||||||||||||||||||||||||||||||||
Metals Recycling Business | $ | 1,660 | $ | 2,748 | $ | 4,408 | $ | 4,500 | ||||||||||||||||||||||||||||
Auto Parts Business | 233 | 239 | 472 | 500 | ||||||||||||||||||||||||||||||||
Corporate | 3,119 | 4,919 | 8,038 | 8,100 | ||||||||||||||||||||||||||||||||
Total | $ | 5,012 | $ | 7,906 | $ | 12,918 | $ | 13,100 | ||||||||||||||||||||||||||||
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interest | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Temporary Equity Disclosure [Abstract] | ||||||||
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest | |||||||
In March 2011, the Company, through a wholly-owned acquisition subsidiary, acquired substantially all of the metals recycling business assets of Amix Salvage & Sales Ltd. As part of the purchase consideration, the Company issued the seller common shares equal to 20% of the issued and outstanding capital stock of the Company’s acquisition subsidiary. Under the terms of an agreement related to the acquisition, the noncontrolling interest holder has the right to require the Company to purchase its interest in the Company’s acquisition subsidiary for fair value. The noncontrolling interest becomes redeemable within 60 days after the later of (i) the third anniversary of the date of the acquisition and (ii) the date on which certain principals of the minority shareholder are no longer employed by the Company. | ||||||||
On March 8, 2013, the Company entered into an agreement with the noncontrolling interest holder for the purchase of all of the outstanding noncontrolling interest in the Company’s subsidiary for $25 million. In the second quarter of fiscal 2013, the Company adjusted the redeemable noncontrolling interest to its fair value corresponding to the purchase price of $25 million, with the difference between the adjusted carrying value and fair value recorded as a reduction to retained earnings. | ||||||||
Prior to the second quarter of fiscal 2013, the noncontrolling interest was presented at its adjusted carrying value, which approximated its fair value. The Company determined fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. The determination of fair value requires management to apply significant judgment in formulating estimates and assumptions used in the discounted cash flow model, including primarily revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, terminal year growth rates and an appropriate discount rate. The present value of future cash flows was determined using a market-based weighted average cost of capital including a subject-company risk premium. The Company also used a market approach based on earnings multiple data to corroborate the fair value estimates of the noncontrolling interest determined using the discounted cash flow model. | ||||||||
Following is a reconciliation of the changes in the redeemable noncontrolling interest for the years ended August 31 (in thousands): | ||||||||
2013 | 2012 | |||||||
Balances - Beginning of period | $ | 22,248 | $ | 19,053 | ||||
Net loss attributable to noncontrolling interest | (903 | ) | (1,163 | ) | ||||
Currency translation adjustment | (1,030 | ) | 350 | |||||
Capital contributions from noncontrolling interest holder | 1,970 | 4,008 | ||||||
Adjustment to fair value | 2,449 | — | ||||||
Purchase | (24,734 | ) | — | |||||
Balances - End of period | $ | — | $ | 22,248 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||
The components of accumulated other comprehensive loss, net of tax, are as follows as of August 31 (in thousands): | ||||||||
2013 | 2012 | |||||||
Foreign currency translation adjustment | $ | (6,423 | ) | $ | 3,658 | |||
Pension obligations, net | (2,817 | ) | (6,106 | ) | ||||
Net unrealized loss on cash flow hedges | (121 | ) | (141 | ) | ||||
Total accumulated other comprehensive loss | $ | (9,361 | ) | $ | (2,589 | ) |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended |
Aug. 31, 2013 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments |
Foreign Currency Exchange Rate Risk Management | |
To manage exposure to foreign exchange rate risk, the Company may enter into foreign currency forward contracts to stabilize the U.S. dollar amount of the transaction at settlement. When such contracts are not designated as hedging instruments for accounting purposes, the realized and unrealized gains and losses on settled and unsettled forward contracts measured at fair value are recognized as other income or expense in the Consolidated Statements of Operations. | |
The Company entered into forward contracts to mitigate exposure to exchange rate fluctuations on Euro-denominated fixed asset purchases, which were designated as qualifying cash flow hedges for accounting purposes. These foreign currency forward contracts are measured using forward exchange rates based on observable exchange rates quoted in an active market and are classified as Level 2 fair value measurements under the fair value hierarchy. In the first quarter of fiscal 2012, the Company determined that certain forecasted transactions were no longer probable, de-designated these contracts as hedges and subsequently terminated the contracts. The nominal amount and fair value of these contracts, the amounts reclassified from accumulated other comprehensive loss and the realized losses recorded in other income, net were not material to the Consolidated Financial Statements. | |
Natural gas price risk management | |
In order to minimize the volatility of its natural gas costs, SMB entered into a take-or-pay natural gas contract that obligated it to purchase a minimum of 2,000 MMBTUs per day through October 31, 2010, whether or not the amount was utilized. The contract expired on May 31, 2011. The contract met the definition of a derivative instrument and was carried at fair value determined using a forward price curve based on observable market price quotations at a major natural gas trading hub, under consideration of non- performance risk, which is considered a Level 2 fair value measurement under the fair value hierarchy. A portion of the natural gas contract equivalent to 20,000 MMBTU per month was designated as a cash flow hedge. All amounts recognized for the effective and ineffective portion of the hedge and for the undesignated portion of the natural gas contract were not material for fiscal 2011. |
Employee_Benefits
Employee Benefits | 12 Months Ended |
Aug. 31, 2013 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits |
The Company and certain of its subsidiaries have qualified and nonqualified retirement plans covering substantially all employees. These plans include a defined benefit pension plan, a supplemental executive retirement benefit plan (“SERBP”), multiemployer pension plans and defined contribution plans. | |
Defined Benefit Pension Plan and Supplemental Executive Retirement Benefit Plan | |
The Company maintains a qualified defined benefit pension plan for certain nonunion employees. Effective June 30, 2006, the Company froze this plan and ceased accruing further benefits. The Company reflects the funded status of the defined benefit pension plan as a net asset or liability in its Consolidated Balance Sheets. Changes in its funded status are recognized in comprehensive income (loss). Net periodic pension benefit cost was not material for the years ended August 31, 2013, 2012 and 2011. The fair value of the plan assets was $17 million as of August 31, 2013 and 2012, and the projected benefit obligation was $15 million and $18 million as of August 31, 2013 and 2012, respectively. The plan was fully funded with the plan assets exceeding the projected benefit obligation by $3 million as of August 31, 2013 and underfunded with the projected benefit obligation exceeding the plan assets by $1 million as of August 31, 2012. Plan assets were comprised of $17 million of Level 1 investments as of August 31, 2013 and $16 million of Level 1 investments and $1 million of Level 2 investments as of August 31, 2012. Level 1 investments are valued based on quoted market prices of identical securities in the principal market. Level 2 investments are valued at the net asset value of the fund which is provided by the fund’s manager and independent administrator. No contributions are expected to be made to the defined benefit pension plan in the future; however, changes in the discount rate or actual investment returns that are lower than the long-term expected return on plan assets could result in the need for the Company to make additional contributions. The assumed discount rate used to calculate the projected benefit obligations was 4.73% and 3.67% as of August 31, 2013 and 2012, respectively. The Company estimates future annual benefit payments to be between $1 million and $3 million per year. | |
The Company also has a nonqualified SERBP for certain executives. A restricted trust fund has been established with assets invested in life insurance policies that can be used for plan benefits, although the fund is subject to claims of the Company’s general creditors. The trust fund is included in other assets and the pension liability is included in other long-term liabilities in the Company’s Consolidated Balance Sheets. The trust fund is valued at $2 million as of August 31, 2013 and 2012. The trust fund assets’ gains and losses are included in other income, net in the Company’s Consolidated Statements of Operations. The benefit obligation and the unfunded amount were $3 million and $4 million as of August 31, 2013 and 2012, respectively. Net periodic cost under the SERBP was not material for the years ended August 31, 2013, 2012 and 2011. | |
Because the defined benefit pension plan and the SERBP are not material to the Consolidated Financial Statements, other disclosures required by U.S. GAAP have been omitted. | |
Multiemployer Pension Plans | |
The Company contributes to 13 multiemployer pension plans in accordance with its collective bargaining agreements. Multiemployer pension plans are defined benefit plans sponsored by multiple employers in accordance with one or more collective bargaining agreements. The plans are jointly managed by trustees that include representatives from both management and labor unions. Contributions to the plans are made based upon a fixed rate per hour worked and are agreed to by contributing employers and the unions in collective bargaining. Benefit levels are set by a joint board of trustees based on the advice of an independent actuary regarding the level of benefits that agreed-upon contributions can be expected to support. To the extent that the pension obligation of other participating employers is unfunded, the Company may be required to make additional contributions in the future to fund these obligations. | |
One of the multiemployer plans that the Company contributes to is the Steelworkers Western Independent Shops Pension Plan (“WISPP”, EIN 90-0169564, Plan No. 001) benefiting the union employees of SMB, which are covered by a collective bargaining agreement that will expire on March 31, 2016. The WISPP had a certified zone status, as required by the Pension Protection Act of 2006, of Red for the plan’s year-end at September 30, 2012 and 2011, respectively. The zone status is based on information the Company received from the plan’s administrator and is certified by the plan’s actuary. The WISPP is considered to be in the Red Zone because there was a projected deficiency in the funding standard account within one year. The WISPP did not utilize any extended amortization provisions in its calculation of zone status. As a result of being in Red Zone Status, the WISPP has adopted a rehabilitation plan which requires annual contribution rate increases of 6%. The rehabilitation plan was adopted by all contributing employers. The Company was not required to pay a surcharge to the WISPP. The Company contributed $3 million to the WISPP for the year ended August 31, 2013, and $2 million for each of the years ended August 31, 2012 and 2011. These contributions represented more than 5% of total contributions to the WISPP for each year. | |
In 2004, the Internal Revenue Service (“IRS”) approved a seven-year extension of the period over which the WISPP may amortize unfunded liabilities, conditioned upon maintenance of certain minimum funding levels. Based on the actuarial valuation for the WISPP as of October 1, 2012, the funded percentage (based on the ratio of the market value of assets to the accumulated benefits liability (present value of accrued benefits) using the valuation method prescribed by the IRS) was 72.3%, which is below the targeted funding ratio specified in the agreement with the IRS. As a result, the WISPP is in the process of seeking relief from the specified funding requirement from the IRS. If the WISPP cannot obtain relief, revocation by the IRS of the amortization extension retroactively to the 2002 plan year could occur and result in a material liability for the Company’s share of the resulting funding deficiency, the extent of which currently cannot be estimated. | |
Company contributions to all of the multiemployer plans were $4 million for the years ended August 31, 2013 and 2012, and $3 million for the year ended August 31, 2011. | |
Defined Contribution Plans | |
The Company has several defined contribution plans covering certain employees. Company contributions to the defined contribution plans totaled $2 million for the year ended August 31, 2013, and $3 million for the years ended August 31, 2012 and 2011. |
Sharebased_Compensation
Share-based Compensation | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||||||
The Company’s 1993 Stock Incentive Plan, as amended, (“the Plan”) was established for its employees, consultants and directors. There are 12.2 million shares of Class A common stock reserved for issuance under the Plan, of which 5.7 million are available for future grants as of August 31, 2013. Share-based compensation expense was $11 million, $9 million and $14 million for the years ended August 31, 2013, 2012 and 2011, respectively. Tax benefits used for option exercises and vesting of restricted stock units were not material for all periods presented. | |||||||||||||
Restricted Stock Units | |||||||||||||
The Plan provides for the issuance of RSUs. The estimated fair value of the RSUs is based on the market closing price of the underlying Class A common stock on the date of grant. The compensation expense associated with RSUs is recognized over the respective requisite service period of the awards, net of estimated forfeitures. | |||||||||||||
During the years ended August 31, 2013, 2012 and 2011, the Compensation Committee granted 217,001 RSUs, 146,481 RSUs and 135,255 RSUs, respectively, to its key employees, officers and employee directors under the Plan. The RSUs have a five-year term and vest 20% per year commencing June 1 of the year after grant, except for an immaterial number of awards granted with different terms. The estimated fair value of the RSUs granted during the years ended August 31, 2013, 2012 and 2011 was $7 million, $6 million and $7 million, respectively. | |||||||||||||
A summary of the Company’s restricted stock unit activity is as follows: | |||||||||||||
Number of | Weighted | Fair Value(1) | |||||||||||
Shares | Average Grant | ||||||||||||
(in thousands) | Date Fair Value | ||||||||||||
Outstanding as of August 31, 2010 | 311 | $ | 53.55 | ||||||||||
Granted | 135 | $ | 53.65 | ||||||||||
Vested | (94 | ) | 51.86 | $ | 57.63 | ||||||||
Forfeited | (4 | ) | 52.42 | ||||||||||
Outstanding as of August 31, 2011 | 348 | $ | 54.06 | ||||||||||
Granted | 146 | $ | 42.63 | ||||||||||
Vested | (148 | ) | 52.93 | $ | 28.43 | ||||||||
Forfeited | (43 | ) | 51.47 | ||||||||||
Outstanding as of August 31, 2012 | 303 | $ | 49.46 | ||||||||||
Granted | 217 | $ | 30.36 | ||||||||||
Vested | (174 | ) | 46.04 | $ | 24.69 | ||||||||
Forfeited | (35 | ) | 40.02 | ||||||||||
Outstanding as of August 31, 2013 | 311 | $ | 39.11 | ||||||||||
_____________________________ | |||||||||||||
-1 | Amounts represent the value of the Company’s Class A common stock on the date that the restricted stock units vested. | ||||||||||||
The Company recognized compensation expense associated with RSUs of $6 million for the year ended August 31, 2013 and $7 million for the years ended August 31, 2012 and 2011. As of August 31, 2013, total unrecognized compensation costs related to unvested RSUs amounted to $8 million, which is expected to be recognized over a weighted average period of 2.6 years. | |||||||||||||
Performance Share Awards | |||||||||||||
The Plan authorizes performance-based awards to certain employees subject to certain conditions and restrictions. A participant generally must be employed by the Company on October 31 following the end of the performance period to receive an award payout, although adjusted awards will be paid if employment terminates earlier on account of death, disability, retirement, termination without cause after the first year of the performance period or a sale of the Company or the reporting segments for which the participant works. Awards will be paid in Class A common stock as soon as practicable after October 31 following the end of the performance period. | |||||||||||||
The Company accrues compensation cost for performance share awards based on the probable outcome of specified performance conditions, net of estimated forfeitures. The Company accrues compensation cost if it is probable that the performance conditions will be achieved. The Company reassesses whether achievement of the performance conditions are probable at each reporting date. If it is probable that the actual performance results will exceed the stated target performance conditions, the Company accrues additional compensation cost for the additional performance shares to be awarded. If, upon reassessment, it is no longer probable that the actual performance results will exceed the stated target performance conditions, or that it is no longer probable that the target performance condition will be achieved, the Company reverses any recognized compensation cost for shares no longer probable of being issued. If the performance conditions are not achieved at the end of the service period, all related compensation cost previously recognized is reversed. | |||||||||||||
Fiscal 2011 – 2013 Performance Share Awards | |||||||||||||
The Compensation Committee approved performance-based awards under the Plan with a grant date of December 3, 2010. The Compensation Committee established performance targets based on the Company’s earnings per share (weighted at 50%) and the average return on capital employed on a divisional basis (weighted at 50%) for the three years of the performance period, with award payouts ranging from a threshold of 50% to a maximum of 200% for each portion of the awards. | |||||||||||||
Fiscal 2013 – 2014 Performance Share Awards | |||||||||||||
The Compensation Committee approved performance-based awards under the Plan with a grant date of July 24, 2012. The Compensation Committee established performance targets based on the Company’s EBITDA (weighted at 50%) and return on equity (weighted at 50%) for the two years of the performance period, with award payouts ranging from a threshold of 50% to a maximum of 200% for each portion of the awards. | |||||||||||||
Fiscal 2014 – 2015 Performance Share Awards | |||||||||||||
The Compensation Committee approved performance-based awards under the Plan with a grant date of August 13, 2013. The Compensation Committee established performance targets based on the Company’s EBITDA (weighted at 50%) and return on equity (weighted at 50%) for the two years of the performance period, with award payouts ranging from a threshold of 50% to a maximum of 200% for each portion of the awards. | |||||||||||||
A summary of the Company’s performance-based awards activity is as follows: | |||||||||||||
Number of | Weighted | Fair Value(1) | |||||||||||
Shares | Average Grant | ||||||||||||
(in thousands) | Date Fair Value | ||||||||||||
Outstanding as of August 31, 2010 | 266 | $ | 47.95 | ||||||||||
Granted | 115 | $ | 59.45 | ||||||||||
Vested | (90 | ) | 63.82 | $ | 52.13 | ||||||||
Forfeited | (6 | ) | 53.35 | ||||||||||
Outstanding as of August 31, 2011 | 285 | $ | 47.48 | ||||||||||
Granted | 278 | $ | 25.98 | ||||||||||
Vested | (54 | ) | 25.42 | $ | 43.9 | ||||||||
Forfeited | (63 | ) | 36.53 | ||||||||||
Outstanding as of August 31, 2012 | 446 | $ | 38.33 | ||||||||||
Granted | 267 | $ | 28.48 | ||||||||||
Vested | (98 | ) | 47.1 | $ | 28.51 | ||||||||
Forfeited | (42 | ) | 35.21 | ||||||||||
Outstanding as of August 31, 2013 | 573 | $ | 32.47 | ||||||||||
_____________________________ | |||||||||||||
-1 | Amounts represent the weighted average value of the Company’s Class A common stock on the date that the performance share awards vested. | ||||||||||||
Compensation expense associated with performance-based awards was calculated using management’s current estimate of the expected level of achievement of the performance targets under the Plan. Compensation expense for anticipated awards based on the Company’s financial performance was $3 million, $1 million and $6 million for the years ended August 31, 2013, 2012 and 2011, respectively. As of August 31, 2013, unrecognized compensation costs related to non-vested performance shares amounted to $7 million, which is expected to be recognized over a weighted average period of 1.5 years. | |||||||||||||
Deferred Stock Units | |||||||||||||
The Deferred Compensation Plan for Non-Employee Directors (“DSU Plan”) provides for the issuance of DSUs to non-employee directors to be granted under the Plan. One DSU gives the director the right to receive one share of Class A common stock at a future date. Immediately following the annual meeting of shareholders, each non-employee director will receive DSUs which will become fully vested on the day before the next annual meeting, subject to continued service on the Board. The compensation expense associated with the DSUs granted is recognized over the respective requisite service period of the awards. | |||||||||||||
The Company will issue Class A common stock to a director pursuant to vested DSUs in a lump sum in January of the first year after the director ceases to be a director of the Company, subject to the right of the director to elect an installment payment program under the DSU Plan. | |||||||||||||
DSUs granted during the years ended August 31, 2013, 2012 and 2011 were for a total of 29,167 shares, 18,202 shares and 17,459 shares, respectively. The compensation expense associated with DSUs and the total value of shares vested during each of the years ended August 31, 2013, 2012 and 2011, as well as the unrecognized compensation expense as of August 31, 2013, were not material. | |||||||||||||
Stock Options | |||||||||||||
Under the Plan, stock options are granted to employees at exercise prices that are set at the sole discretion of the Board of Directors. The fair value of each option grant under the Plan is estimated at the date of grant using the Black-Scholes Option Pricing Model, which utilizes assumptions related to volatility, the risk-free interest rate, the dividend yield and employee exercise behavior. Expected volatilities utilized in the model are based on the historical volatility of the Company’s stock price. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected term of the options is based on an analysis of expected post-vesting exercise behavior including historical exercise patterns when available. | |||||||||||||
The stock options granted during the year ended August 31, 2012 vest on the two-year anniversary of the grant date and have a contractual term of five years with an exercise price set at a 20% premium compared to the Company’s stock price on the date of grant. The estimated fair value of the granted options was $3 million, which was determined using the Black-Scholes Option Pricing Model with the following assumptions: | |||||||||||||
2012 | |||||||||||||
Risk-free interest rate | 0.48 | % | |||||||||||
Expected dividend yield | 2.59 | % | |||||||||||
Expected term (in years) | 3.75 | ||||||||||||
Expected volatility | 58.15 | % | |||||||||||
Fair value of option | $ | 9.29 | |||||||||||
No options were granted in fiscal 2013 and 2011. | |||||||||||||
A summary of the Company’s stock option activity and related information is as follows: | |||||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||||
Exercise | Remaining | (in thousands)(1) | |||||||||||
Price | Contractual | ||||||||||||
Term (in years) | |||||||||||||
Outstanding as of August 31, 2010 | 338 | $ | 28.51 | 4.8 | $ | 5,324 | |||||||
Exercised | (19 | ) | $ | 28.7 | |||||||||
Outstanding as of August 31, 2011 | 319 | $ | 28.5 | 3.9 | $ | 5,430 | |||||||
Granted | 323 | $ | 34.75 | ||||||||||
Exercised | (25 | ) | 24.03 | ||||||||||
Canceled | (5 | ) | 34.59 | ||||||||||
Outstanding as of August 31, 2012 | 612 | $ | 31.94 | 3.9 | $ | 459 | |||||||
Exercised | (15 | ) | $ | 20.48 | |||||||||
Canceled | (42 | ) | 34.39 | ||||||||||
Outstanding as of August 31, 2013 | 555 | $ | 32.07 | 3.1 | 47 | ||||||||
_____________________________ | |||||||||||||
-1 | Amounts represent the difference between the exercise price and the closing price of the Company’s stock on the last trading day of the corresponding fiscal year, multiplied by the number of in-the-money options. | ||||||||||||
As of August 31, 2013 the total number of unvested stock options was 307,855. The aggregate intrinsic value of stock options exercised, which was less than $1 million for the years ended August 31, 2013 and 2012, respectively, and $1 million for the year ended August 31, 2011, represents the difference between the exercise price and the value of the Company’s stock at the time of exercise. No stock options vested in the years ended August 31, 2013 and 2012, and the total fair value of stock options vested was immaterial for the year ended August 31, 2011. Compensation expense associated with stock options, the total proceeds received from option exercises and the tax benefits realized from options exercised were not material during each of the years ended August 31, 2013, 2012 and 2011. As of August 31, 2013, unrecognized compensation costs related to non-vested stock options amounted to $1 million, which is expected to be recognized over a weighted average period of one year. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Aug. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income (loss) from continuing operations before income taxes was as follows for the years ended August 31 (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | (196,289 | ) | $ | 54,304 | $ | 171,329 | |||||
Foreign | (141,160 | ) | (11,348 | ) | 9,476 | |||||||
Total | $ | (337,449 | ) | $ | 42,956 | $ | 180,805 | |||||
Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 556 | $ | 5,267 | $ | 33,499 | ||||||
State | 356 | 453 | 2,583 | |||||||||
Foreign | 764 | (2 | ) | 82 | ||||||||
Total current tax expense (benefit) | $ | 1,676 | $ | 5,718 | $ | 36,164 | ||||||
Deferred: | ||||||||||||
Federal | $ | (58,194 | ) | $ | 13,166 | $ | 19,164 | |||||
State | (264 | ) | (2,748 | ) | 383 | |||||||
Foreign | (644 | ) | (2,097 | ) | 1,457 | |||||||
Total deferred tax expense (benefit) | (59,102 | ) | 8,321 | 21,004 | ||||||||
Total income tax expense (benefit) | $ | (57,426 | ) | $ | 14,039 | $ | 57,168 | |||||
A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of credits | 1.2 | (5.7 | ) | 0.7 | ||||||||
Foreign income taxed at different rates | (3.5 | ) | 4.2 | (0.6 | ) | |||||||
Section 199 deduction | 0.5 | (0.3 | ) | (1.0 | ) | |||||||
Non-deductible officers’ compensation | (0.1 | ) | 1.5 | 0.3 | ||||||||
Noncontrolling interests | 0.2 | (2.2 | ) | (1.0 | ) | |||||||
Research and development credits | 0.2 | (2.0 | ) | (0.5 | ) | |||||||
Valuation allowance on deferred tax assets | (8.6 | ) | — | — | ||||||||
Non-deductible goodwill | (7.1 | ) | — | — | ||||||||
Foreign interest income | — | 0.7 | — | |||||||||
Other | (0.8 | ) | 1.5 | (1.3 | ) | |||||||
Effective tax rate | 17 | % | 32.7 | % | 31.6 | % | ||||||
In fiscal 2013, the effective tax rate differed from the U.S. federal statutory rate of 35% primarily due to the recognition of a valuation allowance of $29 million on deferred tax assets mainly related to a foreign subsidiary, the impact of the non-deductible portion of the goodwill impairment charge and the impact of the foreign tax rate differential on operating losses recorded by our foreign subsidiaries. The deferred tax assets at the foreign subsidiary for which a valuation allowance was recorded were related primarily to deductible temporary differences created in fiscal 2013 by the impairment charge of goodwill and by net operating losses at the subsidiary. The valuation allowance was recognized as a result of negative evidence, including recent losses at the subsidiary, outweighing the more subjective positive evidence, indicating that it is more likely than not that the associated tax benefit will not be realized. Realization of the foreign subsidiary’s deferred tax assets is dependent upon the Company generating a consistent trend of profitability to objectively forecast sufficient taxable income in the foreign tax jurisdiction in future years to obtain benefit from the reversal of net deductible temporary differences and from utilization of net operating losses. Management believes that it is more likely than not that the Company will realize the benefits of its deferred tax assets, net of valuation allowances, as of August 31, 2013. | ||||||||||||
In fiscal 2012 the effective tax rate differed from the U.S. federal statutory rate of 35% primarily due to state tax benefits and research and development credits, partially offset by the adverse impact of foreign subsidiaries’ results taxed at different tax rates. | ||||||||||||
During the fourth quarter of fiscal 2011, the Company recorded an adjustment to correct an error that originated in a prior period pertaining to deferred tax liabilities related to the Company’s investment in a subsidiary. The correction of this error resulted in a reduction of income tax expense and an increase to net income of $3 million for the year ended August 31, 2011. Management determined that this error was not material to any previously reported consolidated financial statements and the resulting correction was not material to the Consolidated Financial Statements for the year ended August 31, 2011. | ||||||||||||
Deferred tax assets and liabilities were comprised of the following as of August 31 (in thousands): | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Environmental liabilities | $ | 12,390 | $ | 11,165 | ||||||||
Employee benefit accruals | 9,378 | 9,784 | ||||||||||
State income tax and other | 2,478 | 5,384 | ||||||||||
Net operating loss carryforwards | 11,758 | 5,699 | ||||||||||
State credit carryforwards | 5,360 | 4,374 | ||||||||||
Inventory valuation methods | 1,390 | 1,560 | ||||||||||
Amortizable goodwill and other intangibles | 38,820 | — | ||||||||||
Valuation allowances | (29,696 | ) | (795 | ) | ||||||||
Total deferred tax assets | $ | 51,878 | $ | 37,171 | ||||||||
Deferred tax liabilities: | ||||||||||||
Amortizable goodwill and other intangibles | $ | — | $ | 20,452 | ||||||||
Accelerated depreciation and other basis differences | 68,609 | 90,544 | ||||||||||
Prepaid expense acceleration | 2,418 | 2,365 | ||||||||||
Foreign currency translation adjustment | 30 | 1,987 | ||||||||||
Total deferred tax liabilities | 71,057 | 115,348 | ||||||||||
Net deferred tax liability | $ | 19,179 | $ | 78,177 | ||||||||
As of August 31, 2013, foreign operating loss carryforwards were $48 million, which expire if not used between 2014 and 2033. State credit carryforwards will expire if not used between 2014 and 2025. | ||||||||||||
Accounting for Uncertainty in Income Taxes | ||||||||||||
The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits, as of the beginning of the year | $ | 491 | $ | 303 | $ | 1,631 | ||||||
Reductions for tax positions of prior years | (31 | ) | (143 | ) | (75 | ) | ||||||
Settlements with tax authorities | — | — | (875 | ) | ||||||||
Additions for tax positions of the current year | 66 | 331 | 160 | |||||||||
Reductions for lapse of statutes | — | — | (538 | ) | ||||||||
Unrecognized tax benefits, as of the end of the year | $ | 526 | $ | 491 | $ | 303 | ||||||
The Company does not anticipate any material changes to the reserve in the next 12 months. | ||||||||||||
The recognized amounts of tax-related penalties and interest were not material for all periods presented. | ||||||||||||
The Company files federal and state income tax returns in the U.S. and foreign tax returns in Puerto Rico and Canada. The federal statute of limitations has expired for fiscal 2009 and prior years. Canadian and multiple state tax authorities are currently examining the Company’s income tax returns for fiscal years 2005 to 2012. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | |||||||||||
Aug. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Share | |||||||||||
The following table sets forth the information used to compute basic and diluted net income (loss) per share attributable to SSI for the years ended August 31 (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income (loss) from continuing operations | $ | (280,023 | ) | $ | 28,917 | $ | 123,637 | |||||
Net income attributable to noncontrolling interests | (1,419 | ) | (1,513 | ) | (5,181 | ) | ||||||
Income (loss) from continuing operations attributable to SSI | (281,442 | ) | 27,404 | 118,456 | ||||||||
Loss from discontinued operations, net of tax | — | — | (101 | ) | ||||||||
Net income (loss) attributable to SSI | $ | (281,442 | ) | $ | 27,404 | $ | 118,355 | |||||
Computation of shares: | ||||||||||||
Weighted average common shares outstanding, basic | 26,656 | 27,317 | 27,649 | |||||||||
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs | — | 236 | 310 | |||||||||
Weighted average common shares outstanding, diluted | 26,656 | 27,553 | 27,959 | |||||||||
Common stock equivalent shares of 957,235, 69,081 and 39,820 were considered antidilutive and were excluded from the calculation of diluted net income (loss) per share for the years ended August 31, 2013, 2012 and 2011, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2013 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions |
The Company purchases recycled metal from its joint venture operations at prices that approximate fair market value. These purchases totaled $26 million, $41 million and $48 million for the years ended August 31, 2013, 2012 and 2011, respectively. Advances to (payments from) these joint ventures were $2 million, less than $1 million and $(2) million for the years ended August 31, 2013, 2012 and 2011, respectively. The Company owed $3 million and $2 million to joint ventures as of August 31, 2013 and 2012, respectively. Amounts receivable from joint venture partners were $1 million as of August 31, 2013 and 2012. | |
In November 2010, the Company and a joint venture partner entered into a series of agreements to facilitate the expansion of their joint venture operations in order to increase the flow of scrap into MRB yards. In order to fund this growth, the Company and its joint venture partner each contributed an additional $2 million in equity to the joint venture. | |
In connection with the acquisition of the metals recycling business assets of Amix Salvage and Sales Ltd. in March 2011, the Company entered into a series of agreements to obtain barging and other services and lease property with entities owned by the minority shareholder of the Company’s subsidiary that operates its MRB facilities in Vancouver, British Columbia and Alberta, Canada. On March 8, 2013, the Company purchased the noncontrolling interest in that subsidiary and, as a result, those entities under common ownership of the former minority shareholder ceased to be related parties of the Company. Prior to its purchase of the noncontrolling interest, the Company paid $5 million, $9 million and $3 million primarily for barging services under these agreements for the years ended August 31, 2013, 2012 and 2011, respectively. Amounts payable to entities affiliated with the minority shareholder were less than $1 million as of August 31, 2012. | |
In connection with the acquisition of a metals recycling business in fiscal 2011, the Company entered into an agreement with the selling parties, one of which is an employee of the Company, whereby the selling parties agreed to indemnify the Company for property improvements in excess of a contractually defined threshold on property owned by the selling parties and leased to the Company. The Company recognized an amount receivable of $1 million as of August 31, 2012 under the agreement, for which payment was received in the first quarter of fiscal 2013. | |
Thomas D. Klauer, Jr., President of the Company’s Auto Parts Business, is the sole shareholder of a corporation that is the 25% minority partner in a partnership in which the Company is the 75% partner and which operates five self-service stores in Northern California. Mr. Klauer’s 25% share of the profits of this partnership totaled $1 million for the year ended August 31, 2013 and $2 million for each of the years ended August 31, 2012 and 2011. The partnership leases properties from entities in which Mr. Klauer has ownership interests under agreements that expire in March 2016 with options to renew the leases, upon expiration, for multiple periods. The rent paid by the partnership to the entities in which Mr. Klauer has ownership interests was $1 million in each of the years ended August 31, 2013, 2012 and 2011. | |
Certain members of the Schnitzer family own significant interests in, or are related to owners of, MMGL Corp (“MMGL”, formerly known as Schnitzer Investment Corp.), which is engaged in the real estate business and was a subsidiary of the Company prior to 1989. MMGL is considered a related party for financial reporting purposes. The Company and MMGL are both potentially responsible parties with respect to Portland Harbor, which has been designated as a Superfund site since December 2000. The Company and MMGL have worked together in response to Portland Harbor matters, and the Company has paid all of the legal and consulting fees for the joint defense, in part due to its environmental indemnity obligation to MMGL with respect to the Portland scrap metal operations property. The Company and MMGL have agreed to an equitable cost sharing arrangement with respect to defense costs under which MMGL will pay 50% of the legal and consulting costs, net of insurance recoveries. The amounts receivable from (payable to) MMGL vary from period-to-period because of the timing of incurring legal and consulting fees, payments for cost reimbursements and insurance recoveries. Amounts receivable from MMGL under this agreement were less than $1 million as of August 31, 2013 and 2012. | |
William Furman, a director of the Company, is the Chairman and Chief Executive Officer of The Greenbrier Companies (with its subsidiaries, “Greenbrier”). During the year ended August 31, 2011, the Company engaged in a series of transactions with Greenbrier in which the Company sold as well as purchased goods on an arm’s length’s basis. During the year ended August 31, 2011, the Company sold goods to Greenbrier in the amount of less than $1 million. Purchases of goods from Greenbrier were less than $1 million during the year ended August 31, 2011. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment Information | Segment Information | ||||||||||||||||||||
The accounting standards for reporting information about operating segments define an operating segment as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses for which discrete financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company is organized by line of business. While the Chief Executive Officer evaluates results in a number of different ways, the line of business management structure is the primary basis for which the allocation of resources and financial results are assessed. Under the aforementioned criteria, the Company operates in three operating and reporting segments: metal purchasing, processing, recycling and selling (MRB), used auto parts (APB) and mini-mill steel manufacturing (SMB). Additionally, the Company is a noncontrolling partner in joint ventures, which are either in the metals recycling business or are suppliers of unprocessed metal. | |||||||||||||||||||||
MRB buys and processes ferrous and nonferrous metal for sale to foreign and other domestic steel producers or their representatives and to SMB. MRB also purchases ferrous metal from other processors for shipment directly to SMB. | |||||||||||||||||||||
APB purchases used and salvaged vehicles, sells parts from those vehicles through its retail facilities and wholesale operations, and sells the remaining portion of the vehicles to metal recyclers, including MRB. | |||||||||||||||||||||
SMB operates a steel mini-mill that produces a wide range of finished steel products using recycled metal and other raw materials. | |||||||||||||||||||||
Intersegment sales from MRB to SMB are made at rates that approximate export market prices for shipments from the West Coast of the U.S. In addition, the Company has intersegment sales of autobodies from APB to MRB at rates that approximate market prices. These intercompany sales tend to produce intercompany profits which are not recognized until the finished products are ultimately sold to third parties. | |||||||||||||||||||||
The information provided below is obtained from internal information that is provided to the Company’s chief operating decision maker for the purpose of corporate management. The Company uses segment operating income (loss) to measure segment performance. The Company does not allocate corporate interest income and expense, income taxes, other income and expenses related to corporate activity or corporate expense for management and administrative services that benefit all three segments. In addition, the Company does not allocate restructuring charges to the segment operating income (loss) because management does not include this information in its measurement of the performance of the operating segments. Because of this unallocated income and expense, the operating income (loss) of each reporting segment does not reflect the operating income (loss) the reporting segment would report as a stand-alone business. All amounts presented exclude the results of operations of the Company’s discontinued full-service used auto parts operation. | |||||||||||||||||||||
The following is a summary of the Company’s total assets as of August 31 (in thousands): | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Total assets: | |||||||||||||||||||||
Metals Recycling Business(1) | $ | 1,316,202 | $ | 1,696,296 | |||||||||||||||||
Auto Parts Business | 359,977 | 329,327 | |||||||||||||||||||
Steel Manufacturing Business | 330,282 | 322,398 | |||||||||||||||||||
Total segment assets | 2,006,461 | 2,348,021 | |||||||||||||||||||
Corporate and eliminations | (600,949 | ) | (584,448 | ) | |||||||||||||||||
Total assets | $ | 1,405,512 | $ | 1,763,573 | |||||||||||||||||
Property, plant and equipment, net (2) | $ | 564,426 | $ | 564,185 | |||||||||||||||||
_____________________________ | |||||||||||||||||||||
-1 | MRB total assets include $15 million and $17 million as of August 31, 2013 and 2012, respectively, for investments in joint venture partnerships. | ||||||||||||||||||||
-2 | Property, plant and equipment, net includes $85 million and $67 million as of August 31, 2013 and 2012, respectively, at our Canadian locations. | ||||||||||||||||||||
The table below illustrates the Company’s results by reporting segment for the years ended August 31 (in thousands): | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Metals Recycling Business: | |||||||||||||||||||||
Revenues | $ | 2,210,484 | $ | 2,948,707 | $ | 3,070,004 | |||||||||||||||
Less: Intersegment revenues | (178,341 | ) | (183,906 | ) | (169,331 | ) | |||||||||||||||
MRB external customer revenues | 2,032,143 | 2,764,801 | 2,900,673 | ||||||||||||||||||
Auto Parts Business: | |||||||||||||||||||||
Revenues | 313,306 | 316,884 | 319,833 | ||||||||||||||||||
Less: Intersegment revenues | (75,992 | ) | (73,974 | ) | (78,795 | ) | |||||||||||||||
APB external customer revenues | 237,314 | 242,910 | 241,038 | ||||||||||||||||||
Steel Manufacturing Business: | |||||||||||||||||||||
Revenues | 352,454 | 333,227 | 317,483 | ||||||||||||||||||
Total revenues | $ | 2,621,911 | $ | 3,340,938 | $ | 3,459,194 | |||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||
Metals Recycling Business | $ | 58,964 | $ | 57,855 | $ | 49,773 | |||||||||||||||
Auto Parts Business | 11,793 | 10,920 | 10,131 | ||||||||||||||||||
Steel Manufacturing Business | 9,072 | 9,436 | 10,782 | ||||||||||||||||||
Segment depreciation and amortization | 79,829 | 78,211 | 70,686 | ||||||||||||||||||
Corporate | 3,241 | 4,045 | 4,180 | ||||||||||||||||||
Total depreciation and amortization | $ | 83,070 | $ | 82,256 | $ | 74,866 | |||||||||||||||
Capital expenditures: | |||||||||||||||||||||
Metals Recycling Business | $ | 61,930 | $ | 60,212 | $ | 88,917 | |||||||||||||||
Auto Parts Business | 12,769 | 7,525 | 7,099 | ||||||||||||||||||
Steel Manufacturing Business | 7,582 | 5,556 | 3,328 | ||||||||||||||||||
Segment capital expenditures | 82,281 | 73,293 | 99,344 | ||||||||||||||||||
Corporate | 8,100 | 5,267 | 5,620 | ||||||||||||||||||
Total capital expenditures | $ | 90,381 | $ | 78,560 | $ | 104,964 | |||||||||||||||
Reconciliation of the Company’s segment operating income (loss) to income (loss) from continuing operations before income taxes: | |||||||||||||||||||||
Metals Recycling Business(1) | $ | (311,549 | ) | $ | 63,872 | $ | 164,646 | ||||||||||||||
Auto Parts Business | 24,539 | 33,304 | 64,027 | ||||||||||||||||||
Steel Manufacturing Business | 6,541 | (2,081 | ) | 2,562 | |||||||||||||||||
Segment operating income (loss) | (280,469 | ) | 95,095 | 231,235 | |||||||||||||||||
Restructuring charges | (7,906 | ) | (5,012 | ) | — | ||||||||||||||||
Corporate and eliminations | (39,414 | ) | (36,415 | ) | (45,271 | ) | |||||||||||||||
Operating income (loss) | (327,789 | ) | 53,668 | 185,964 | |||||||||||||||||
Interest expense | (9,743 | ) | (11,880 | ) | (8,436 | ) | |||||||||||||||
Other income, net | 83 | 1,168 | 3,277 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (337,449 | ) | $ | 42,956 | $ | 180,805 | ||||||||||||||
_____________________________ | |||||||||||||||||||||
-1 | MRB operating income (loss) includes $1 million, $2 million and $5 million in income from joint ventures accounted for by the equity method in fiscal 2013, 2012 and 2011, respectively. The MRB operating loss for fiscal 2013 also includes a goodwill impairment charge of $321 million and other asset impairment charges of $13 million. | ||||||||||||||||||||
The following revenues from external customers are presented based on the sales destination and by major product for the years ended August 31 (in thousands): | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Revenues based on sales destination: | |||||||||||||||||||||
Foreign | $ | 1,657,736 | $ | 2,284,152 | $ | 2,471,737 | |||||||||||||||
Domestic | 964,175 | 1,056,786 | 987,457 | ||||||||||||||||||
Total revenues from external customers | $ | 2,621,911 | $ | 3,340,938 | $ | 3,459,194 | |||||||||||||||
Major product information: | |||||||||||||||||||||
Ferrous scrap metal | $ | 1,500,115 | $ | 2,117,055 | $ | 2,259,229 | |||||||||||||||
Nonferrous scrap metal and other | 532,028 | 647,746 | 641,444 | ||||||||||||||||||
Auto parts | 237,314 | 242,910 | 241,038 | ||||||||||||||||||
Finished steel products | 346,982 | 332,719 | 317,338 | ||||||||||||||||||
Semi-finished steel products | 5,472 | 508 | 145 | ||||||||||||||||||
Total revenues from external customers | $ | 2,621,911 | $ | 3,340,938 | $ | 3,459,194 | |||||||||||||||
In fiscal 2013, 2012 and 2011, there were no external customers that accounted for more than 10% of the Company’s consolidated revenues. Sales to customers in foreign countries are a significant part of the Company’s business. The schedule below identifies those foreign countries in which the Company’s sales exceeded 10% of consolidated revenues in any of the last three years ended August 31 (in thousands): | |||||||||||||||||||||
2013 | % of | 2012 | % of | 2011 | % of | ||||||||||||||||
Revenue | Revenue | Revenue | |||||||||||||||||||
China | $ | 562,558 | 21.5 | % | $ | 719,979 | 22 | % | $ | 884,744 | 25.6 | % | |||||||||
Turkey | 341,418 | 13 | % | 435,558 | 13 | % | N/A | N/A | |||||||||||||
South Korea | N/A | N/A | $ | 397,525 | 12 | % | N/A | N/A | |||||||||||||
_____________________________ | |||||||||||||||||||||
-1 | N/A - sales were less than the 10% threshold and as such disclosure is not applicable. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Aug. 31, 2013 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) | |||||||||||||||
In the opinion of management, this unaudited quarterly financial summary includes all adjustments necessary to present fairly the results for the periods represented (in thousands, except per share amounts): | ||||||||||||||||
Fiscal 2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 592,820 | $ | 662,210 | $ | 710,295 | $ | 656,586 | ||||||||
Operating income (loss) | $ | 1,213 | $ | 11,390 | $ | 7,187 | $ | (347,579 | ) | |||||||
Net income (loss) attributable to SSI | $ | (1,671 | ) | $ | 8,643 | $ | 820 | $ | (289,234 | ) | ||||||
Basic net income (loss) per share attributable to SSI | $ | (0.06 | ) | $ | 0.32 | $ | 0.03 | $ | (10.82 | ) | ||||||
Diluted net income (loss) per share attributable to SSI | $ | (0.06 | ) | $ | 0.32 | $ | 0.03 | $ | (10.82 | ) | ||||||
Fiscal 2012 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 812,176 | $ | 886,612 | $ | 879,865 | $ | 762,285 | ||||||||
Operating income (loss) | $ | 14,970 | $ | 17,987 | $ | 22,078 | $ | (1,367 | ) | |||||||
Net income (loss) attributable to SSI | $ | 7,018 | $ | 9,630 | $ | 11,241 | $ | (485 | ) | |||||||
Basic net income (loss) per share attributable to SSI | $ | 0.26 | $ | 0.35 | $ | 0.41 | $ | (0.02 | ) | |||||||
Diluted net income (loss) per share attributable to SSI | $ | 0.25 | $ | 0.35 | $ | 0.4 | $ | (0.02 | ) | |||||||
In the fourth quarter of fiscal 2013, the Company recorded a goodwill impairment charge of $321 million, other asset impairment charges of $13 million, restructuring charges of $3 million and a valuation allowance on deferred tax assets of $29 million. See Note 2 - Summary of Significant Accounting Policies, Note 7 - Goodwill and Other Intangible Assets, net and Note 18 – Income Taxes for further detail. | ||||||||||||||||
During the fourth quarter of fiscal 2012, the Company approved certain restructuring initiatives aimed at reducing operating costs, which resulted in the recognition of restructuring charges. The aggregate effect of restructuring charges recorded during the fourth quarter of fiscal 2012 was a reduction of operating income by $5 million. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | Schedule II – Valuation and Qualifying Accounts | ||||||||||||||||
For the Years Ended August 31, 2013, 2012 and 2011 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Description | Balance at | Charges to cost | Deductions | Balance at | |||||||||||||
beginning | and expenses | end of | |||||||||||||||
of period | period | ||||||||||||||||
Fiscal 2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 4,459 | $ | 584 | $ | (2,053 | ) | $ | 2,990 | ||||||||
Allowance for notes and other contractual receivables | $ | — | $ | 7,803 | $ | — | $ | 7,803 | |||||||||
Deferred tax valuation allowance | $ | 794 | $ | 28,902 | $ | — | $ | 29,696 | |||||||||
Fiscal 2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 6,148 | $ | 688 | $ | (2,377 | ) | $ | 4,459 | ||||||||
Deferred tax valuation allowance | $ | 589 | $ | 218 | $ | (13 | ) | $ | 794 | ||||||||
Fiscal 2011 | |||||||||||||||||
Allowance for doubtful accounts | $ | 6,209 | $ | 334 | $ | (395 | ) | $ | 6,148 | ||||||||
Deferred tax valuation allowance | $ | 855 | $ | 189 | $ | (455 | ) | $ | 589 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Aug. 31, 2013 | ||
Accounting Policies [Abstract] | ||
Principles of Consolidation [Policy Text Block] | Principles of Consolidation | |
The Consolidated Financial Statements include the accounts of the Company and its majority-owned and wholly-owned subsidiaries. The equity method of accounting is used for investments in joint ventures over which the Company has significant influence but does not have effective control. All significant intercompany account balances, transactions, profits and losses have been eliminated. All transactions and relationships with potential variable interest entities are evaluated to determine whether the Company is the primary beneficiary of the entities, therefore requiring consolidation. The Company does not have any variable interest entities requiring consolidation. | ||
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents | |
Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $31 million and $38 million as of August 31, 2013 and 2012, respectively. | ||
Accounts Receivable, net [Policy Text Block] | Accounts Receivable, net | |
Accounts receivable represent amounts due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for doubtful accounts, are recorded at the invoiced amount and do not bear interest. The Company evaluates the collectability of its accounts receivable based on a combination of factors, including whether sales were made pursuant to letters of credit. In cases where management is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, management records a specific allowance against amounts due and reduces the net recognized receivable to the amount the Company believes will be collected. For all other customers, the Company maintains an allowance that considers the total receivables outstanding, historical collection rates and economic trends. Accounts are written off when all efforts to collect have been exhausted. The allowance for doubtful accounts was $3 million and $4 million as of August 31, 2013 and 2012, respectively. | ||
Inventories, net [Policy Text Block] | Inventories, net | |
The Company’s inventories primarily consist of scrap metal (ferrous, nonferrous, processed and unprocessed), nonferrous recovered joint product (nonferrous arising from the manufacturing process), used and salvaged vehicles, semi-finished steel products (billets) and finished steel products (primarily rebar, merchant bar and wire rod). Inventories are stated at the lower of cost or market. MRB determines the cost of ferrous and nonferrous inventories using the average cost method and capitalizes substantially all direct costs and yard costs into inventory. MRB allocates material and production costs to joint products using the gross margin method. APB determines the cost for used and salvaged vehicle inventory based on the average price the Company pays for a vehicle and capitalizes the vehicle cost into inventory. SMB determines the cost of its finished steel product inventory based on weighted average costs and capitalizes all direct and indirect costs of manufacturing into inventory. Indirect costs of manufacturing include general plant costs, maintenance and yard costs. The Company considers estimated future selling prices when determining the estimated net realizable value for its inventory. As MRB generally sells its export recycled ferrous metal under contracts that provide for shipment within 30 to 60 days after the price is agreed, it utilizes the selling prices under committed contracts and sales orders for determining the estimated market price of quantities on hand that will be shipped under these contracts and orders. | ||
The Company performs periodic physical inventories to verify the quantity of inventory on hand. Due to variations in product density, holding period and production processes utilized to manufacture the product, physical inventories will not necessarily detect all variances for metal inventory such that estimates of quantities are required. To mitigate this risk, the Company adjusts its ferrous physical inventories when the volume of a commodity is low and a physical inventory count can more accurately predict the remaining volume. | ||
Property, Plant and Equipment, net [Policy Text Block] | Property, Plant and Equipment, net | |
Property, plant and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, while routine repair and maintenance costs are expensed as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs and was not material to any of the periods presented. When assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and resulting gains or losses are generally included in operating expenses. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. | ||
As of August 31, 2013, the useful lives used for depreciation and amortization were as follows: | ||
Useful Life | ||
(In Years) | ||
Machinery and equipment | 3 to 40 | |
Land improvements | 3 to 35 | |
Buildings and leasehold improvements | 5 to 40 | |
Office equipment | 2 to 20 | |
Enterprise Resource Planning (“ERP”) systems | 11 to 17 | |
Long-lived assets are subject to an impairment assessment when certain triggering events or circumstances indicate that their carrying value may be impaired. If the carrying value exceeds the Company’s estimate of future undiscounted cash flows of the operations related to the asset, an impairment is recorded for the difference between the carrying amount and the fair value of the asset. There were no material impairments to the carrying value of long-lived assets during the years ended August 31, 2013, 2012 and 2011. | ||
Equity Method Investments, Policy [Policy Text Block] | Investments in Joint Venture Partnerships | |
As of August 31, 2013 and 2012, the Company had five 50%-owned joint venture interests which were accounted for under the equity method of accounting and presented as part of MRB operations. The Company’s investments in equity method joint ventures have resulted in cumulative undistributed earnings of $11 million as of August 31, 2013 and 2012. A loss in value of an investment in a joint venture partnership that is other than a temporary decline is recognized. Management considers all available evidence to evaluate the realizable value of its investments including the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the joint venture business, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Once management determines that an other-than-temporary impairment exists, the investment is written down to its fair value, which establishes a new cost basis. The Company determines fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. | ||
During the fiscal year ended August 31, 2013, the Company recorded an impairment charge related to an investment in a joint venture partnership of $2 million, which is reported within other asset impairment charges in the Consolidated Statements of Operations. See Note 20 - Related Party Transactions for further detail on transactions with joint ventures. | ||
Goodwill and Other Intangible Assets, net [Policy Text Block] | Goodwill and Other Intangible Assets, net | |
Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually during the second fiscal quarter and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. Impairment of goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). The Company has determined that its reporting units for which goodwill has been allocated are equivalent to the Company’s operating segments, as all of the components of each operating segment meet the criteria for aggregation. | ||
Under the new accounting guidance issued by the FASB in September 2011 and effective for the Company in fiscal 2013, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determines that an impairment is more likely than not, the Company is then required to perform the two-step quantitative impairment test, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. | ||
In the first step of the two-step quantitative impairment test, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of goodwill, an impairment loss will be recognized in an amount equal to that excess. | ||
The Company estimates the fair value of its reporting units using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based weighted average cost of capital (“WACC”) determined separately for each reporting unit. The determination of fair value involves the use of significant estimates and assumptions, including revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, discount rates and synergistic benefits available to market participants. In addition, to corroborate the reporting units’ valuation, the Company uses a market approach based on earnings multiple data and a reconciliation of the Company’s estimate of the aggregate fair value of the reporting units to the Company’s market capitalization, including consideration of a control premium. | ||
The Company tests indefinite-lived intangible assets for impairment by either comparing the carrying value of the intangible to the projected discounted cash flows from the intangible or using the relief from royalties method. If the carrying value exceeds the projected discounted cash flows attributed to the indefinite-lived intangible asset, the carrying value is no longer considered recoverable and the Company will record an impairment. The Company tests intangible assets subject to amortization for impairment when certain triggering events or circumstances indicate that their carrying value may be impaired. If the carrying value exceeds the Company’s estimate of future undiscounted cash flows of the operations related to the asset, an impairment is recorded for the difference between the carrying amount and the fair value of the asset. See Note 7 – Goodwill and Other Intangibles Assets, net for further detail. | ||
Acquisitions [Policy Text Block] | Acquisitions | |
The Company recognizes the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. Contingent purchase consideration is recorded at fair value at the date of acquisition. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. Within one year from the date of acquisition, the Company may update the value allocated to the assets acquired and liabilities assumed and the resulting goodwill balances as a result of information received regarding the valuation of such assets and liabilities that was not available at the time of purchase. Measuring assets and liabilities at fair value requires the Company to determine the price that would be paid by a third party market participant based on the highest and best use of the assets or interests acquired. Acquisition costs are expensed as incurred. | ||
Other Assets [Policy Text Block] | Other Assets | |
The Company’s other assets, exclusive of prepaid expenses, consist primarily of receivables from insurers, notes and other contractual receivables, and assets held for sale. Other assets are reported within either prepaid expenses and other current assets or other assets in the Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. | ||
Receivables from insurers represent the portion of insured losses expected to be recovered from the Company’s insurance carriers and are recorded at the time the Company records a liability for an insured loss. The receivable is recorded at an amount not to exceed the recorded loss and only if the terms of legally enforceable insurance contracts support that the insurance recovery will not be disputed and is deemed collectible. | ||
Notes receivable consist primarily of loans to entities in the business of extracting scrap metal through demolition and other activities. Repayment of these loans is in either cash or scrap metal. Other contractual receivables consist primarily of amounts due from scrap and demolition entities under financial guarantee arrangements. The Company performs periodic reviews of its notes and other contractual receivables to identify credit risks and to assess the overall collectability of the receivables, which typically involves consideration of the value of collateral in the form of scrap metal extracted from demolition and construction projects. A note or other contractual receivable is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the agreement. Once a note or other contractual receivable has been identified as impaired, it is measured based on the present value of payments expected to be received, discounted at the receivable’s contractual interest rate, or for arrangements that are solely dependent on collateral for repayment, the estimated fair value of the collateral less estimated costs to sell. If the carrying value of the receivable exceeds its recoverable amount, an impairment is recorded for the difference. During the fiscal year ended August 31, 2013, the Company recorded an impairment charge related to other contractual receivables of $8 million, which represents the full amount of the allowance for credit losses on notes and other contractual receivables as of August 31, 2013, and which is reported within other asset impairment charges in the Consolidated Statements of Operations. | ||
A long-lived asset is classified as held for sale upon meeting criteria specified in the accounting standards. An asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. An impairment loss is recognized for any initial or subsequent write-down of the asset to its fair value less cost to sell. The Company determines fair value using Level 3 inputs under the fair value hierarchy consisting of information provided by brokers and other external sources along with management’s own assumptions. During the fiscal year ended August 31, 2013, the Company recorded an impairment charge related to assets held for sale of $3 million, which is reported within other asset impairment charges in the Consolidated Statements of Operations. | ||
Restructuring Charges [Policy Text Block] | Restructuring Charges | |
Restructuring charges consist of severance, contract termination and other exit costs. A liability for severance costs is typically recognized when the plan of termination has been communicated to the affected employees and is measured at its fair value at the communication date. Contract termination costs consist primarily of costs that will continue to be incurred under operating leases for their remaining terms without economic benefit to the Company. A liability for contract termination costs is recognized at the date the Company ceases using the rights conveyed by the lease contract and is measured at its fair value, which is determined based on the remaining contractual lease rentals reduced by estimated sublease rentals. A liability for other exit costs is measured at its fair value in the period in which the liability is incurred. See Note 12 - Restructuring Charges for further detail. | ||
Accrued Workers' Compensation Costs [Policy Text Block] | Accrued Workers’ Compensation Costs | |
The Company is self-insured for workers’ compensation claims with exposure limited by various stop-loss insurance policies. The Company estimates the costs of workers’ compensation claims based on the nature of the injury incurred and on guidelines established by the applicable state. An accrual is recorded based upon the amount of unpaid claims as of the balance sheet date. Accrued amounts recorded for individual claims are reviewed periodically as treatment progresses and adjusted to reflect additional information that becomes available. The estimated cost of claims incurred but not reported is included in the accrual. The Company accrued $10 million and $11 million for the estimated cost of workers’ compensation claims as of August 31, 2013 and 2012, respectively, which are included in other accrued liabilities in the Consolidated Balance Sheets. | ||
Environmental Liabilities [Policy Text Block] | Environmental Liabilities | |
The Company estimates future costs for known environmental remediation requirements and accrues for them on an undiscounted basis when it is probable that the Company has incurred a liability and the related costs can be reasonably estimated but the timing of incurring the estimated costs is unknown. The Company considers various factors when estimating its environmental liabilities. Adjustments to the liabilities are are recorded to selling, general and administrative expense and made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or when expenditures are made for which liabilities were established. Legal costs incurred in connection with environmental contingencies are expensed as incurred. | ||
When only a wide range of estimated amounts can be reasonably established and no other amount within the range is a better estimate than another, the low end of the range is recorded in the financial statements. In a number of cases, it is possible that the Company may receive reimbursement through insurance or from other potentially responsible parties for a site. In these situations, recoveries of environmental remediation costs from other parties are recognized when the claim for recovery is actually realized. The amounts recorded for environmental liabilities are reviewed periodically as site assessment and remediation progresses at individual sites and adjusted to reflect additional information that becomes available. Due to evolving remediation technology, changing regulations, possible third party contributions, the subjective nature of the assumptions used and other factors, amounts accrued could vary significantly from amounts paid. See “Contingencies – Environmental” in Note 11 – Commitments and Contingencies for further detail. | ||
Financial Instruments [Policy Text Block] | Financial Instruments | |
The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, debt and derivative contracts. The Company uses the market approach to value its financial assets and liabilities, determined using available market information. The net carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short term nature of these instruments. For long-term debt, which is primarily at variable interest rates, fair value is estimated using observable inputs (Level 2) and approximates its carrying value. | ||
Fair Value Measurements [Policy Text Block] | Fair Value Measurements | |
Fair value is measured using inputs from the three levels of the fair value hierarchy. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are described as follows: | ||
• | Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. | |
• | Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the determination of the fair value of the asset or liability, either directly or indirectly. | |
• | Level 3 – Unobservable inputs that are significant to the determination of fair value of the asset or liability. | |
When developing the fair value measurements, the Company uses quoted market prices whenever available or seeks to maximize the use of observable inputs and minimize the use of unobservable inputs when quoted market prices are not available. See Note 7 - Goodwill and Other Intangible Assets, net, Note 10 - Fair Value Measurements, Note 13 - Redeemable Noncontrolling Interest and Note 15 - Derivative Financial Instruments for further detail. | ||
Derivatives [Policy Text Block] | Derivatives | |
The Company records derivative instruments in other assets or other liabilities in the Consolidated Balance Sheets at fair value and changes in the fair value are either recognized in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets or net income (loss) in the Consolidated Statements of Operations, as applicable, depending on the nature of the underlying exposure, whether the derivative has been designated as a hedge, and if designated as a hedge, the extent to which the hedge is effective. Amounts included in accumulated other comprehensive income (loss) are reclassified to earnings in the period in which earnings are impacted by the hedged items or in the period that the hedged transaction is deemed no longer likely to occur. For cash flow hedges, a formal assessment is made, both at the hedge’s inception and on an ongoing basis, to determine whether the derivatives that are designated as hedging instruments have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. To the extent the hedge is determined to be ineffective, the ineffective portion is immediately recognized in earnings. When available, quoted market prices or prices obtained through external sources are used to measure a derivative instrument’s fair value. The fair value of these instruments is a function of underlying forward commodity prices, related volatility, counterparty creditworthiness and duration of the contracts. Cash flows from derivatives are recognized in the Consolidated Statements of Cash Flows in a manner consistent with the underlying transactions. See Note 15 - Derivative Financial Instruments for further detail. | ||
Derivative contracts for commodities used in normal business operations that are settled by physical delivery, among other criteria, are eligible for and may be designated as normal purchases and normal sales. Contracts that qualify as normal purchases or normal sales are not marked-to-market. The Company does not use derivative instruments for trading or speculative purposes. | ||
Foreign Currency Exchange Rate Risk Management | ||
To manage exposure to foreign exchange rate risk, the Company may enter into foreign currency forward contracts to stabilize the U.S. dollar amount of the transaction at settlement. When such contracts are not designated as hedging instruments for accounting purposes, the realized and unrealized gains and losses on settled and unsettled forward contracts measured at fair value are recognized as other income or expense in the Consolidated Statements of Operations. | ||
Foreign Currency Translation and Transactions [Policy Text Block] | Foreign Currency Translation and Transactions | |
Assets and liabilities of the Company’s operations in Canada are translated into U.S. dollars at the period-end exchange rate, revenues and expenses of these operations are translated into U.S. dollars at the average exchange rate for the period, and cash flows of these operations are translated into U.S. dollars using the exchange rates in effect at the time of the cash flows. Translation adjustments are not included in determining net income (loss) for the period, but are recorded in accumulated other comprehensive income (loss), a separate component of SSI shareholders’ equity. Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency of the Company, which is the U.S. dollar. Gains and losses on foreign currency transactions are generally required to be recognized in the determination of net income (loss) for the period. The Company records these gains and losses in other income, net in the Statements of Operations. Net realized and unrealized foreign currency transaction gains (losses) were not material for each of the years ended August 31, 2013, 2012 and 2011. | ||
Redeemable Noncontrolling Interest [Policy Text Block] | Redeemable Noncontrolling Interest | |
The Company issued common stock of one of its subsidiaries to the noncontrolling interest holder of that subsidiary that, prior to the Company’s purchase of that interest on March 8, 2013, had been redeemable both at the option of the holder and upon the occurrence of an event that was not solely within the Company’s control. Since redemption of the noncontrolling interest was outside of the Company’s control, this interest was presented on the Consolidated Balance Sheets in the mezzanine section under the caption redeemable noncontrolling interest. If the interest had been redeemed, the Company would have been required to purchase all of such interest at fair value on the date of redemption. Prior to its purchase by the Company on March 8, 2013, the redeemable noncontrolling interest was presented at the greater of its carrying amount (adjusted for the noncontrolling interest’s share of the allocation of income or loss of the subsidiary, dividends to and contributions from the noncontrolling interest) or its fair value as of each measurement date. Any adjustments to the carrying amount of the redeemable noncontrolling interest for changes in fair value prior to the Company’s purchase of the interest in March 2013 were recorded to retained earnings. See Note 13 – Redeemable Noncontrolling Interest for further detail. | ||
The Company determined fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. The determination of fair value requires management to apply significant judgment in formulating estimates and assumptions used in the discounted cash flow model, including primarily revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, terminal year growth rates and an appropriate discount rate. The present value of future cash flows was determined using a market-based weighted average cost of capital including a subject-company risk premium. The Company also used a market approach based on earnings multiple data to corroborate the fair value estimates of the noncontrolling interest determined using the discounted cash flow model. | ||
Common Stock [Policy Text Block] | Common Stock | |
Each share of Class A and Class B common stock is entitled to one vote. Additionally, each share of Class B common stock may be converted to one share of Class A common stock. As such, the Company reserves one share of Class A common stock for each share of Class B common stock outstanding. There are currently no meaningful distinctions between the rights of holders of Class A shares and Class B shares. | ||
Shareholder Rights Plan [Policy Text Block] | Shareholder Rights Plan | |
Under its shareholder rights plan, the Company issued a dividend distribution of one preferred share purchase right (a “Right”) for each share of Class A common stock or Class B common stock held by shareholders of record as of the close of business on April 4, 2006. The Rights generally become exercisable if a person or group has acquired 15% or more of the Company’s outstanding common stock or announces a tender offer or exchange offer which, if consummated, would result in ownership by a person or group of 15% or more of the Company’s outstanding common stock (“Acquiring Person”). Each Right entitles shareholders to buy one one-thousandth of a share of Series A Participating Preferred Stock (“Series A Shares”) of the Company at an exercise price of $110, subject to adjustments. Holders of Rights (other than an Acquiring Person) are entitled to receive upon exercise Series A Shares, or in lieu thereof, Class A common stock of the Company having a value of twice the Right’s then-current exercise price. The Series A Shares are not redeemable by the Company and have voting privileges and certain dividend and liquidation preferences. The Rights will expire on March 21, 2016, unless such date is extended or the Rights are redeemed or exchanged on an earlier date. | ||
Share Repurchases [Policy Text Block] | Share Repurchases | |
The Company accounts for the repurchase of stock at par value. All shares repurchased are deemed retired. Upon retirement of the shares, the Company records the difference between the weighted average cost of such shares and the par value of the stock as an adjustment to additional paid-in capital, with the excess to retained earnings when additional paid-in capital is not sufficient. | ||
Revenue Recognition [Policy Text Block] | Revenue Recognition | |
The Company recognizes revenue when it has a contract or purchase order from a customer with a fixed price, the title and risk of loss transfer to the buyer and collectibility is reasonably assured. Title for both metal and finished steel products transfers based on contract terms. A significant portion of the Company’s ferrous export sales of recycled metal are made with letters of credit, reducing credit risk. However, domestic recycled ferrous metal sales, nonferrous sales and sales of finished steel are generally made on open account. Nonferrous export sales typically require a deposit prior to shipment. All sales made on open account are evaluated for collectibility prior to revenue recognition. Additionally, the Company recognizes revenues on partially loaded shipments when detailed documents support revenue recognition based on transfer of title and risk of loss. The Company reports revenue net of the payments made to the supplier of scrap metal when the supplier, and not the Company, is responsible for fulfillment, including the acceptability of the products purchased by the customer. For APB, retail revenues are recognized when customers pay for parts, and wholesale product revenues are recognized when customer weight certificates are received following shipments. Historically, there have been very few sales returns and adjustments that impact the ultimate collection of revenues; therefore, no material provisions have been made when the sale is recognized. The Company presents taxes assessed by governmental authorities collected from customers on a net basis. Therefore, the taxes are excluded from revenue and are shown as a liability on the Consolidated Balance Sheets until remitted. | ||
Freight Costs [Policy Text Block] | Freight Costs | |
The Company classifies shipping and handling costs billed to customers as revenue and the related costs incurred as a component of cost of goods sold. | ||
Share-Based Compensation [Policy Text Block] | Share-Based Compensation | |
The Company recognizes compensation cost relating to share-based payment transactions over the vesting period, with the cost measured based on the grant-date fair value of the equity instruments issued, net of an estimated forfeiture rate. See Note 17 – Share-Based Compensation for further detail. | ||
Income Taxes [Policy Text Block] | Income Taxes | |
Income taxes are accounted for using the asset and liability method. This requires the recognition of taxes currently payable or refundable and the recognition of deferred tax assets and liabilities for the future tax consequences of events that are recognized in one reporting period on the Consolidated Financial Statements but in a different reporting period on the tax returns. Tax credits are recognized as a reduction of income tax expense in the year the credit arises. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Tax benefits arising from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination by the relevant tax authorities. The amount recognized in the financial statements is the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. See Note 18 – Income Taxes for further detail. | ||
Net Income (Loss) per Share [Policy Text Block] | Net Income (Loss) per Share | |
Basic net income (loss) per share attributable to SSI is computed by dividing net income (loss) by the weighted average number of outstanding common shares during the periods presented including vested deferred stock units (“DSUs”) and restricted stock units (“RSUs”). Diluted net income (loss) per share attributable to SSI is computed by dividing net income (loss) by the weighted average number of common shares outstanding, assuming dilution. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of performance shares, DSU and RSU awards using the treasury stock method. Certain of the Company’s stock options, RSUs and performance share awards were excluded from the calculation of diluted net income (loss) per share because they were antidilutive; however, these options and awards could be dilutive in the future. Net income attributable to noncontrolling interests is deducted from the income (loss) from continuing operations to arrive at the net income (loss) from continuing operations attributable to SSI for purposes of calculating net income (loss) per share. See Note 19 – Net Income (Loss) Per Share for further detail. | ||
Use of Estimates [Policy Text Block] | Use of Estimates | |
The preparation of the Company’s Consolidated Financial Statements in accordance with generally accepted accounting principles in the U.S. of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenue and expenses during the reporting period. Examples include valuation of assets received in acquisitions; revenue recognition; the allowance for doubtful accounts; estimates of contingencies, including environmental liabilities; goodwill and intangible asset valuation; valuation of investments in joint venture partnerships; other asset valuation; inventory valuation; redeemable noncontrolling interest valuation; pension plan assumptions; and the assessment of the valuation of deferred income taxes and income tax contingencies. Actual results may differ from estimated amounts. | ||
Concentration Of Credit Risk [Policy Text Block] | Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable and notes and other contractual receivables. The majority of cash and cash equivalents are maintained with two major financial institutions (Bank of America and Wells Fargo Bank, N.A.). Balances with these institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of August 31, 2013. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up the Company’s customer base. The Company controls credit risk through credit approvals, credit limits, letters of credit or other collateral and monitoring procedures. The Company is exposed to a residual credit risk with respect to open letters of credit by virtue of the possibility of the failure of a bank providing a letter of credit. The Company had $94 million and $37 million of open letters of credit as of August 31, 2013 and 2012, respectively. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of Asset Impairments [Table Text Block] | The following impairment charges were recorded within other asset impairment charges in the Consolidated Statements of Operations in fiscal 2013 (in thousand): | |||||||
2013 | ||||||||
Investment in joint venture partnership | $ | 2,411 | ||||||
Contractual receivable | 7,803 | |||||||
Assets held for sale | 2,526 | |||||||
Other | 313 | |||||||
Total | $ | 13,053 | ||||||
Property, Plant and Equipment [Table Text Block] | As of August 31, 2013, the useful lives used for depreciation and amortization were as follows: | |||||||
Useful Life | ||||||||
(In Years) | ||||||||
Machinery and equipment | 3 to 40 | |||||||
Land improvements | 3 to 35 | |||||||
Buildings and leasehold improvements | 5 to 40 | |||||||
Office equipment | 2 to 20 | |||||||
Enterprise Resource Planning (“ERP”) systems | 11 to 17 | |||||||
Property, plant and equipment, net consisted of the following as of August 31 (in thousands): | ||||||||
2013 | 2012 | |||||||
Machinery and equipment | $ | 696,776 | $ | 671,615 | ||||
Land and improvements | 251,793 | 231,925 | ||||||
Buildings and leasehold improvements | 114,313 | 91,411 | ||||||
Office equipment | 47,995 | 43,240 | ||||||
ERP systems | 15,246 | 15,246 | ||||||
Construction in progress | 36,292 | 46,476 | ||||||
Property, plant and equipment, gross | 1,162,415 | 1,099,913 | ||||||
Less: accumulated depreciation | (597,989 | ) | (535,728 | ) | ||||
Property, plant and equipment, net | $ | 564,426 | $ | 564,185 | ||||
Inventories_net_Tables
Inventories, net (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Inventory, Net [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories, net consisted of the following as of August 31 (in thousands): | |||||||
2013 | 2012 | |||||||
Processed and unprocessed scrap metal | $ | 132,485 | $ | 152,930 | ||||
Semi-finished goods (billets) | 10,745 | 7,328 | ||||||
Finished goods | 56,830 | 49,988 | ||||||
Supplies | 35,989 | 36,746 | ||||||
Inventories, net | $ | 236,049 | $ | 246,992 | ||||
Property_Plant_and_Equipment_n1
Property, Plant and Equipment, net (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | As of August 31, 2013, the useful lives used for depreciation and amortization were as follows: | |||||||
Useful Life | ||||||||
(In Years) | ||||||||
Machinery and equipment | 3 to 40 | |||||||
Land improvements | 3 to 35 | |||||||
Buildings and leasehold improvements | 5 to 40 | |||||||
Office equipment | 2 to 20 | |||||||
Enterprise Resource Planning (“ERP”) systems | 11 to 17 | |||||||
Property, plant and equipment, net consisted of the following as of August 31 (in thousands): | ||||||||
2013 | 2012 | |||||||
Machinery and equipment | $ | 696,776 | $ | 671,615 | ||||
Land and improvements | 251,793 | 231,925 | ||||||
Buildings and leasehold improvements | 114,313 | 91,411 | ||||||
Office equipment | 47,995 | 43,240 | ||||||
ERP systems | 15,246 | 15,246 | ||||||
Construction in progress | 36,292 | 46,476 | ||||||
Property, plant and equipment, gross | 1,162,415 | 1,099,913 | ||||||
Less: accumulated depreciation | (597,989 | ) | (535,728 | ) | ||||
Property, plant and equipment, net | $ | 564,426 | $ | 564,185 | ||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Business Combinations [Abstract] | ||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma summary presents the effect on the consolidated financial results of the Company of the businesses acquired during the year ended August 31, 2011 as though the businesses had been acquired as of the beginning of fiscal 2010 (in thousands): | |||||||
2011 | 2010 | |||||||
Revenues | $ | 3,539,677 | $ | 2,466,547 | ||||
Operating income(1) | $ | 204,613 | $ | 149,328 | ||||
Net income(1) | $ | 134,921 | $ | 82,481 | ||||
Net income attributable to SSI(1) | $ | 127,954 | $ | 78,106 | ||||
_____________________________ | ||||||||
-1 | Excludes nonrecurring executive compensation paid to the management of acquired companies that will not be incurred in the future. | |||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following is a summary of the aggregate fair values of assets acquired and liabilities assumed for acquisitions completed during the year ended August 31, 2011 (in thousands): | |||||||
Assets: | 2011 | |||||||
Cash and cash equivalents | $ | 285 | ||||||
Accounts receivable | 5,490 | |||||||
Inventories | 21,794 | |||||||
Prepaid expenses and other current assets | 777 | |||||||
Deferred tax assets | 2,499 | |||||||
Property, plant and equipment | 58,811 | |||||||
Intangible assets | 7,182 | |||||||
Other assets | 16 | |||||||
Goodwill | 253,336 | |||||||
Liabilities: | ||||||||
Short-term liabilities | (22,223 | ) | ||||||
Environmental liabilities | (9,083 | ) | ||||||
Long-term debt and capital lease obligations | (1,222 | ) | ||||||
Deferred tax liability - long-term | (1,646 | ) | ||||||
Net assets acquired(1) | $ | 316,016 | ||||||
_____________________________ | ||||||||
-1 | The acquisitions completed in fiscal 2013 and 2012 were not material, individually or in the aggregate, to the Company’s financial position or results of operations. | |||||||
Schedule Of Intangible Assets Acquired As Part Of Business Combination [Table Text Block] | The following table presents the fair value of intangible assets acquired with the acquisitions completed during the year ended August 31, 2011 (dollars in thousands): | |||||||
Weighted | Acquisition Date | |||||||
Average Life | Fair Value | |||||||
In Years | ||||||||
Covenants not to compete | 4.8 | $ | 6,062 | |||||
Other intangible assets subject to amortization(1) | 1.5 | 863 | ||||||
Indefinite-lived intangible assets(2) | Indefinite | 257 | ||||||
Total | 4.4 | $ | 7,182 | |||||
_____________________________ | ||||||||
(1) | Other intangible assets subject to amortization include supply contracts, permits and licenses and leasehold interests. | |||||||
-2 | Indefinite-lived intangible assets include tradenames and real property options. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended | |||||||||||||||
Aug. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of Goodwill [Table Text Block] | The gross changes in the carrying amount of goodwill by reporting segment for the years ended August 31, 2013 and 2012 were as follows (in thousands): | |||||||||||||||
MRB | APB | Total | ||||||||||||||
Balance as of August 31, 2011 | $ | 464,646 | $ | 163,159 | $ | 627,805 | ||||||||||
Acquisitions | 1,454 | — | 1,454 | |||||||||||||
Purchase price adjustments | 1,540 | — | 1,540 | |||||||||||||
Purchase accounting adjustments | 5,361 | 541 | 5,902 | |||||||||||||
Foreign currency translation adjustment | (1,047 | ) | (163 | ) | (1,210 | ) | ||||||||||
Balance as of August 31, 2012 | 471,954 | 163,537 | 635,491 | |||||||||||||
Acquisitions | 1,744 | 17,634 | 19,378 | |||||||||||||
Purchase accounting adjustments | 135 | 614 | 749 | |||||||||||||
Foreign currency translation adjustment | (5,620 | ) | (1,734 | ) | (7,354 | ) | ||||||||||
Goodwill impairment charges | (321,000 | ) | — | (321,000 | ) | |||||||||||
Balance as of August 31, 2013 | $ | 147,213 | $ | 180,051 | $ | 327,264 | ||||||||||
Schedule of Intangible Assets by Major Class [Table Text Block] | The following table presents the Company’s intangible assets as of August 31 (in thousands): | |||||||||||||||
2013 | 2012 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Covenants not to compete | $ | 20,183 | $ | (10,796 | ) | $ | 25,041 | $ | (13,231 | ) | ||||||
Supply contracts | 2,264 | (1,725 | ) | 5,274 | (4,274 | ) | ||||||||||
Other intangible assets subject to amortization(1) | 3,783 | (1,618 | ) | 3,231 | (1,518 | ) | ||||||||||
Indefinite-lived intangibles(2) | 1,173 | — | 1,255 | — | ||||||||||||
Total | $ | 27,403 | $ | (14,139 | ) | $ | 34,801 | $ | (19,023 | ) | ||||||
_____________________________ | ||||||||||||||||
-1 | Other intangible assets subject to amortization include tradenames, marketing agreements, employment agreements, leasehold interests, permits and licenses and real property options. | |||||||||||||||
-2 | Indefinite-lived intangibles include tradenames, permits and licenses and real property options. | |||||||||||||||
Schedule of Expected Amortization Expense [Table Text Block] | The estimated amortization expense, based on current intangible asset balances, during the next five fiscal years and thereafter is as follows (in thousands): | |||||||||||||||
Years Ending August 31, | Estimated | |||||||||||||||
Amortization | ||||||||||||||||
Expense | ||||||||||||||||
2014 | $ | 3,999 | ||||||||||||||
2015 | 2,386 | |||||||||||||||
2016 | 1,324 | |||||||||||||||
2017 | 762 | |||||||||||||||
2018 | 445 | |||||||||||||||
Thereafter | 3,175 | |||||||||||||||
Total | $ | 12,091 | ||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||
Schedule Of Long Term Debt And Capital Lease Obligations [Table Text Block] | Long-term debt consisted of the following as of August 31 (in thousands): | ||||||||||||
2013 | 2012 | ||||||||||||
Bank unsecured revolving credit facility, interest at LIBOR plus a spread | $ | 359,971 | $ | 325,292 | |||||||||
Tax-exempt economic development revenue bonds due January 2021, interest payable monthly at a variable rate (0.12% as of August 31, 2013), secured by a letter of credit | 7,700 | 7,700 | |||||||||||
Capital lease obligations due through April 2031 | 5,666 | 2,320 | |||||||||||
Total long-term debt | 373,337 | 335,312 | |||||||||||
Less current maturities | (674 | ) | (683 | ) | |||||||||
Long-term debt, net of current maturities | $ | 372,663 | $ | 334,629 | |||||||||
Schedule Of Maturities Of Long Term Debt and Capital Lease Obligations [Table Text Block] | Principal payments on long-term debt and capital lease obligations during the next five fiscal years and thereafter are as follows (in thousands): | ||||||||||||
Years Ending August 31, | Long-Term | Capital | Total | ||||||||||
Debt | Lease | ||||||||||||
Obligations | |||||||||||||
2014 | $ | — | $ | 1,575 | $ | 1,575 | |||||||
2015 | — | 1,237 | 1,237 | ||||||||||
2016 | — | 1,096 | 1,096 | ||||||||||
2017 | 359,971 | 1,089 | 361,060 | ||||||||||
2018 | — | 845 | 845 | ||||||||||
Thereafter | 7,700 | 4,415 | 12,115 | ||||||||||
Total | 367,671 | 10,257 | 377,928 | ||||||||||
Amounts representing interest and executory costs | — | (4,591 | ) | (4,591 | ) | ||||||||
Total less interest | $ | 367,671 | $ | 5,666 | $ | 373,337 | |||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | |||||||||
Aug. 31, 2013 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table presents information about the Company’s assets and liabilities measured at fair value as of August 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized by the Company and the type of measurement. | |||||||||
As of August 31, 2013 | ||||||||||
(in thousands) | Assets (Liabilities) at Fair Value | Fair Value Measurement Level | Type of Measurement | Balance Sheet Classification | ||||||
Assets: | ||||||||||
Assets held for sale | $ | 2,902 | Level 3 | Non-recurring | Prepaid expenses and other current assets | |||||
Investment in joint venture partnership | 3,261 | Level 3 | Non-recurring | Investments in joint venture partnerships | ||||||
Total assets | $ | 6,163 | ||||||||
Liabilities: | ||||||||||
Contract termination costs | $ | (1,672 | ) | Level 3 | Non-recurring | Other accrued liabilities and Other long-term liabilities | ||||
Total liabilities | $ | (1,672 | ) |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule Of Future Minimum Obligations [Table Text Block] | The table below sets forth the Company’s future minimum obligations under non-cancelable operating leases as of August 31, 2013 (in thousands): | |||||||||||||||||||||||||||||||||||
Years ending August 31, | Operating | |||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||
2014 | $ | 21,101 | ||||||||||||||||||||||||||||||||||
2015 | 18,027 | |||||||||||||||||||||||||||||||||||
2016 | 12,076 | |||||||||||||||||||||||||||||||||||
2017 | 9,980 | |||||||||||||||||||||||||||||||||||
2018 | 7,138 | |||||||||||||||||||||||||||||||||||
Thereafter | 36,281 | |||||||||||||||||||||||||||||||||||
Total | $ | 104,603 | ||||||||||||||||||||||||||||||||||
Schedule Of Reserves For Environmental Liabilities [Table Text Block] | Changes in the Company’s environmental liabilities for the years ended August 31, 2013 and 2012 were as follows (in thousands): | |||||||||||||||||||||||||||||||||||
Reporting | Balance | Liabilities Established | Payments | Ending | Liabilities Established | Payments | Ending | Short-Term | Long-Term | |||||||||||||||||||||||||||
Segment | 8/31/11 | (Released), | Balance 8/31/2012 | (Released), | Balance 8/31/2013 | |||||||||||||||||||||||||||||||
Net(1) | Net(1) | |||||||||||||||||||||||||||||||||||
MRB | $ | 25,655 | $ | 5,380 | $ | (176 | ) | $ | 30,859 | $ | (69 | ) | $ | (270 | ) | $ | 30,520 | $ | 200 | $ | 30,320 | |||||||||||||||
APB | 15,200 | 1,000 | — | 16,200 | 2,574 | — | 18,774 | 554 | 18,220 | |||||||||||||||||||||||||||
Corporate | — | — | — | — | 500 | — | 500 | — | 500 | |||||||||||||||||||||||||||
Total | $ | 40,855 | $ | 6,380 | $ | (176 | ) | $ | 47,059 | $ | 3,005 | $ | (270 | ) | $ | 49,794 | $ | 754 | $ | 49,040 | ||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||||||||||
-1 | During fiscal 2013 and 2012, the Company recorded $3 million and $8 million, respectively, in purchase accounting for environmental liabilities related to properties acquired or leased in connection with business combinations. |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Restructuring Charges [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following illustrates the reconciliation of the restructuring liability by major type of costs for the years ended August 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||||||||
Balance 8/31/2011 | Charges | Payments and Other | Balance 8/31/2012 | Charges | Payments and Other | Balance 8/31/2013 | Total Charges to Date | Total Expected Charges | ||||||||||||||||||||||||||||
Severance costs | — | 2,741 | (264 | ) | $ | 2,477 | $ | 2,443 | $ | (4,642 | ) | $ | 278 | $ | 5,184 | $ | 5,200 | |||||||||||||||||||
Contract termination costs | — | 440 | (26 | ) | 414 | 3,229 | (616 | ) | 3,027 | 3,669 | 3,800 | |||||||||||||||||||||||||
Other exit costs | — | 1,831 | (1,767 | ) | 64 | 2,234 | (2,298 | ) | — | 4,065 | 4,100 | |||||||||||||||||||||||||
Total | $ | — | $ | 5,012 | $ | (2,057 | ) | $ | 2,955 | $ | 7,906 | $ | (7,556 | ) | $ | 3,305 | $ | 12,918 | $ | 13,100 | ||||||||||||||||
Schedule of Restructuring and Related Activities By Segment [Table Text Block] | Restructuring charges by reporting segment were as follows (in thousands): | |||||||||||||||||||||||||||||||||||
Fiscal 2012 Charges | Fiscal 2013 Charges | Total Charges to Date | Total Expected Charges | |||||||||||||||||||||||||||||||||
Metals Recycling Business | $ | 1,660 | $ | 2,748 | $ | 4,408 | $ | 4,500 | ||||||||||||||||||||||||||||
Auto Parts Business | 233 | 239 | 472 | 500 | ||||||||||||||||||||||||||||||||
Corporate | 3,119 | 4,919 | 8,038 | 8,100 | ||||||||||||||||||||||||||||||||
Total | $ | 5,012 | $ | 7,906 | $ | 12,918 | $ | 13,100 | ||||||||||||||||||||||||||||
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interest (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Temporary Equity Disclosure [Abstract] | ||||||||
Redeemable Noncontrolling Interest [Table Text Block] | Following is a reconciliation of the changes in the redeemable noncontrolling interest for the years ended August 31 (in thousands): | |||||||
2013 | 2012 | |||||||
Balances - Beginning of period | $ | 22,248 | $ | 19,053 | ||||
Net loss attributable to noncontrolling interest | (903 | ) | (1,163 | ) | ||||
Currency translation adjustment | (1,030 | ) | 350 | |||||
Capital contributions from noncontrolling interest holder | 1,970 | 4,008 | ||||||
Adjustment to fair value | 2,449 | — | ||||||
Purchase | (24,734 | ) | — | |||||
Balances - End of period | $ | — | $ | 22,248 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | The components of accumulated other comprehensive loss, net of tax, are as follows as of August 31 (in thousands): | |||||||
2013 | 2012 | |||||||
Foreign currency translation adjustment | $ | (6,423 | ) | $ | 3,658 | |||
Pension obligations, net | (2,817 | ) | (6,106 | ) | ||||
Net unrealized loss on cash flow hedges | (121 | ) | (141 | ) | ||||
Total accumulated other comprehensive loss | $ | (9,361 | ) | $ | (2,589 | ) |
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of the Company’s restricted stock unit activity is as follows: | ||||||||||||
Number of | Weighted | Fair Value(1) | |||||||||||
Shares | Average Grant | ||||||||||||
(in thousands) | Date Fair Value | ||||||||||||
Outstanding as of August 31, 2010 | 311 | $ | 53.55 | ||||||||||
Granted | 135 | $ | 53.65 | ||||||||||
Vested | (94 | ) | 51.86 | $ | 57.63 | ||||||||
Forfeited | (4 | ) | 52.42 | ||||||||||
Outstanding as of August 31, 2011 | 348 | $ | 54.06 | ||||||||||
Granted | 146 | $ | 42.63 | ||||||||||
Vested | (148 | ) | 52.93 | $ | 28.43 | ||||||||
Forfeited | (43 | ) | 51.47 | ||||||||||
Outstanding as of August 31, 2012 | 303 | $ | 49.46 | ||||||||||
Granted | 217 | $ | 30.36 | ||||||||||
Vested | (174 | ) | 46.04 | $ | 24.69 | ||||||||
Forfeited | (35 | ) | 40.02 | ||||||||||
Outstanding as of August 31, 2013 | 311 | $ | 39.11 | ||||||||||
_____________________________ | |||||||||||||
-1 | Amounts represent the value of the Company’s Class A common stock on the date that the restricted stock units vested. | ||||||||||||
Schedule of Share-based Compensation, Performance Activity [Table Text Block] | A summary of the Company’s performance-based awards activity is as follows: | ||||||||||||
Number of | Weighted | Fair Value(1) | |||||||||||
Shares | Average Grant | ||||||||||||
(in thousands) | Date Fair Value | ||||||||||||
Outstanding as of August 31, 2010 | 266 | $ | 47.95 | ||||||||||
Granted | 115 | $ | 59.45 | ||||||||||
Vested | (90 | ) | 63.82 | $ | 52.13 | ||||||||
Forfeited | (6 | ) | 53.35 | ||||||||||
Outstanding as of August 31, 2011 | 285 | $ | 47.48 | ||||||||||
Granted | 278 | $ | 25.98 | ||||||||||
Vested | (54 | ) | 25.42 | $ | 43.9 | ||||||||
Forfeited | (63 | ) | 36.53 | ||||||||||
Outstanding as of August 31, 2012 | 446 | $ | 38.33 | ||||||||||
Granted | 267 | $ | 28.48 | ||||||||||
Vested | (98 | ) | 47.1 | $ | 28.51 | ||||||||
Forfeited | (42 | ) | 35.21 | ||||||||||
Outstanding as of August 31, 2013 | 573 | $ | 32.47 | ||||||||||
_____________________________ | |||||||||||||
-1 | Amounts represent the weighted average value of the Company’s Class A common stock on the date that the performance share awards vested. | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The estimated fair value of the granted options was $3 million, which was determined using the Black-Scholes Option Pricing Model with the following assumptions: | ||||||||||||
2012 | |||||||||||||
Risk-free interest rate | 0.48 | % | |||||||||||
Expected dividend yield | 2.59 | % | |||||||||||
Expected term (in years) | 3.75 | ||||||||||||
Expected volatility | 58.15 | % | |||||||||||
Fair value of option | $ | 9.29 | |||||||||||
No options were granted in fiscal 2013 and 2011. | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the Company’s stock option activity and related information is as follows: | ||||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||||
Exercise | Remaining | (in thousands)(1) | |||||||||||
Price | Contractual | ||||||||||||
Term (in years) | |||||||||||||
Outstanding as of August 31, 2010 | 338 | $ | 28.51 | 4.8 | $ | 5,324 | |||||||
Exercised | (19 | ) | $ | 28.7 | |||||||||
Outstanding as of August 31, 2011 | 319 | $ | 28.5 | 3.9 | $ | 5,430 | |||||||
Granted | 323 | $ | 34.75 | ||||||||||
Exercised | (25 | ) | 24.03 | ||||||||||
Canceled | (5 | ) | 34.59 | ||||||||||
Outstanding as of August 31, 2012 | 612 | $ | 31.94 | 3.9 | $ | 459 | |||||||
Exercised | (15 | ) | $ | 20.48 | |||||||||
Canceled | (42 | ) | 34.39 | ||||||||||
Outstanding as of August 31, 2013 | 555 | $ | 32.07 | 3.1 | 47 | ||||||||
_____________________________ | |||||||||||||
-1 | Amounts represent the difference between the exercise price and the closing price of the Company’s stock on the last trading day of the corresponding fiscal year, multiplied by the number of in-the-money options. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Aug. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income (loss) from continuing operations before income taxes was as follows for the years ended August 31 (in thousands): | |||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | (196,289 | ) | $ | 54,304 | $ | 171,329 | |||||
Foreign | (141,160 | ) | (11,348 | ) | 9,476 | |||||||
Total | $ | (337,449 | ) | $ | 42,956 | $ | 180,805 | |||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands): | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 556 | $ | 5,267 | $ | 33,499 | ||||||
State | 356 | 453 | 2,583 | |||||||||
Foreign | 764 | (2 | ) | 82 | ||||||||
Total current tax expense (benefit) | $ | 1,676 | $ | 5,718 | $ | 36,164 | ||||||
Deferred: | ||||||||||||
Federal | $ | (58,194 | ) | $ | 13,166 | $ | 19,164 | |||||
State | (264 | ) | (2,748 | ) | 383 | |||||||
Foreign | (644 | ) | (2,097 | ) | 1,457 | |||||||
Total deferred tax expense (benefit) | (59,102 | ) | 8,321 | 21,004 | ||||||||
Total income tax expense (benefit) | $ | (57,426 | ) | $ | 14,039 | $ | 57,168 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows: | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of credits | 1.2 | (5.7 | ) | 0.7 | ||||||||
Foreign income taxed at different rates | (3.5 | ) | 4.2 | (0.6 | ) | |||||||
Section 199 deduction | 0.5 | (0.3 | ) | (1.0 | ) | |||||||
Non-deductible officers’ compensation | (0.1 | ) | 1.5 | 0.3 | ||||||||
Noncontrolling interests | 0.2 | (2.2 | ) | (1.0 | ) | |||||||
Research and development credits | 0.2 | (2.0 | ) | (0.5 | ) | |||||||
Valuation allowance on deferred tax assets | (8.6 | ) | — | — | ||||||||
Non-deductible goodwill | (7.1 | ) | — | — | ||||||||
Foreign interest income | — | 0.7 | — | |||||||||
Other | (0.8 | ) | 1.5 | (1.3 | ) | |||||||
Effective tax rate | 17 | % | 32.7 | % | 31.6 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities were comprised of the following as of August 31 (in thousands): | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Environmental liabilities | $ | 12,390 | $ | 11,165 | ||||||||
Employee benefit accruals | 9,378 | 9,784 | ||||||||||
State income tax and other | 2,478 | 5,384 | ||||||||||
Net operating loss carryforwards | 11,758 | 5,699 | ||||||||||
State credit carryforwards | 5,360 | 4,374 | ||||||||||
Inventory valuation methods | 1,390 | 1,560 | ||||||||||
Amortizable goodwill and other intangibles | 38,820 | — | ||||||||||
Valuation allowances | (29,696 | ) | (795 | ) | ||||||||
Total deferred tax assets | $ | 51,878 | $ | 37,171 | ||||||||
Deferred tax liabilities: | ||||||||||||
Amortizable goodwill and other intangibles | $ | — | $ | 20,452 | ||||||||
Accelerated depreciation and other basis differences | 68,609 | 90,544 | ||||||||||
Prepaid expense acceleration | 2,418 | 2,365 | ||||||||||
Foreign currency translation adjustment | 30 | 1,987 | ||||||||||
Total deferred tax liabilities | 71,057 | 115,348 | ||||||||||
Net deferred tax liability | $ | 19,179 | $ | 78,177 | ||||||||
Summary of Income Tax Contingencies [Table Text Block] | The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands): | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits, as of the beginning of the year | $ | 491 | $ | 303 | $ | 1,631 | ||||||
Reductions for tax positions of prior years | (31 | ) | (143 | ) | (75 | ) | ||||||
Settlements with tax authorities | — | — | (875 | ) | ||||||||
Additions for tax positions of the current year | 66 | 331 | 160 | |||||||||
Reductions for lapse of statutes | — | — | (538 | ) | ||||||||
Unrecognized tax benefits, as of the end of the year | $ | 526 | $ | 491 | $ | 303 | ||||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 12 Months Ended | |||||||||||
Aug. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | The following table sets forth the information used to compute basic and diluted net income (loss) per share attributable to SSI for the years ended August 31 (in thousands): | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Income (loss) from continuing operations | $ | (280,023 | ) | $ | 28,917 | $ | 123,637 | |||||
Net income attributable to noncontrolling interests | (1,419 | ) | (1,513 | ) | (5,181 | ) | ||||||
Income (loss) from continuing operations attributable to SSI | (281,442 | ) | 27,404 | 118,456 | ||||||||
Loss from discontinued operations, net of tax | — | — | (101 | ) | ||||||||
Net income (loss) attributable to SSI | $ | (281,442 | ) | $ | 27,404 | $ | 118,355 | |||||
Computation of shares: | ||||||||||||
Weighted average common shares outstanding, basic | 26,656 | 27,317 | 27,649 | |||||||||
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs | — | 236 | 310 | |||||||||
Weighted average common shares outstanding, diluted | 26,656 | 27,553 | 27,959 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | The following is a summary of the Company’s total assets as of August 31 (in thousands): | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Total assets: | |||||||||||||||||||||
Metals Recycling Business(1) | $ | 1,316,202 | $ | 1,696,296 | |||||||||||||||||
Auto Parts Business | 359,977 | 329,327 | |||||||||||||||||||
Steel Manufacturing Business | 330,282 | 322,398 | |||||||||||||||||||
Total segment assets | 2,006,461 | 2,348,021 | |||||||||||||||||||
Corporate and eliminations | (600,949 | ) | (584,448 | ) | |||||||||||||||||
Total assets | $ | 1,405,512 | $ | 1,763,573 | |||||||||||||||||
Property, plant and equipment, net (2) | $ | 564,426 | $ | 564,185 | |||||||||||||||||
_____________________________ | |||||||||||||||||||||
-1 | MRB total assets include $15 million and $17 million as of August 31, 2013 and 2012, respectively, for investments in joint venture partnerships. | ||||||||||||||||||||
-2 | Property, plant and equipment, net includes $85 million and $67 million as of August 31, 2013 and 2012, respectively, at our Canadian locations. | ||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The table below illustrates the Company’s results by reporting segment for the years ended August 31 (in thousands): | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Metals Recycling Business: | |||||||||||||||||||||
Revenues | $ | 2,210,484 | $ | 2,948,707 | $ | 3,070,004 | |||||||||||||||
Less: Intersegment revenues | (178,341 | ) | (183,906 | ) | (169,331 | ) | |||||||||||||||
MRB external customer revenues | 2,032,143 | 2,764,801 | 2,900,673 | ||||||||||||||||||
Auto Parts Business: | |||||||||||||||||||||
Revenues | 313,306 | 316,884 | 319,833 | ||||||||||||||||||
Less: Intersegment revenues | (75,992 | ) | (73,974 | ) | (78,795 | ) | |||||||||||||||
APB external customer revenues | 237,314 | 242,910 | 241,038 | ||||||||||||||||||
Steel Manufacturing Business: | |||||||||||||||||||||
Revenues | 352,454 | 333,227 | 317,483 | ||||||||||||||||||
Total revenues | $ | 2,621,911 | $ | 3,340,938 | $ | 3,459,194 | |||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||
Metals Recycling Business | $ | 58,964 | $ | 57,855 | $ | 49,773 | |||||||||||||||
Auto Parts Business | 11,793 | 10,920 | 10,131 | ||||||||||||||||||
Steel Manufacturing Business | 9,072 | 9,436 | 10,782 | ||||||||||||||||||
Segment depreciation and amortization | 79,829 | 78,211 | 70,686 | ||||||||||||||||||
Corporate | 3,241 | 4,045 | 4,180 | ||||||||||||||||||
Total depreciation and amortization | $ | 83,070 | $ | 82,256 | $ | 74,866 | |||||||||||||||
Capital expenditures: | |||||||||||||||||||||
Metals Recycling Business | $ | 61,930 | $ | 60,212 | $ | 88,917 | |||||||||||||||
Auto Parts Business | 12,769 | 7,525 | 7,099 | ||||||||||||||||||
Steel Manufacturing Business | 7,582 | 5,556 | 3,328 | ||||||||||||||||||
Segment capital expenditures | 82,281 | 73,293 | 99,344 | ||||||||||||||||||
Corporate | 8,100 | 5,267 | 5,620 | ||||||||||||||||||
Total capital expenditures | $ | 90,381 | $ | 78,560 | $ | 104,964 | |||||||||||||||
Reconciliation of the Company’s segment operating income (loss) to income (loss) from continuing operations before income taxes: | |||||||||||||||||||||
Metals Recycling Business(1) | $ | (311,549 | ) | $ | 63,872 | $ | 164,646 | ||||||||||||||
Auto Parts Business | 24,539 | 33,304 | 64,027 | ||||||||||||||||||
Steel Manufacturing Business | 6,541 | (2,081 | ) | 2,562 | |||||||||||||||||
Segment operating income (loss) | (280,469 | ) | 95,095 | 231,235 | |||||||||||||||||
Restructuring charges | (7,906 | ) | (5,012 | ) | — | ||||||||||||||||
Corporate and eliminations | (39,414 | ) | (36,415 | ) | (45,271 | ) | |||||||||||||||
Operating income (loss) | (327,789 | ) | 53,668 | 185,964 | |||||||||||||||||
Interest expense | (9,743 | ) | (11,880 | ) | (8,436 | ) | |||||||||||||||
Other income, net | 83 | 1,168 | 3,277 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (337,449 | ) | $ | 42,956 | $ | 180,805 | ||||||||||||||
_____________________________ | |||||||||||||||||||||
-1 | MRB operating income (loss) includes $1 million, $2 million and $5 million in income from joint ventures accounted for by the equity method in fiscal 2013, 2012 and 2011, respectively. The MRB operating loss for fiscal 2013 also includes a goodwill impairment charge of $321 million and other asset impairment charges of $13 million. | ||||||||||||||||||||
Schedule Of Revenues From External Customers by Sales Destination, Reporting Segment And Major Product [Table Text Block] | The following revenues from external customers are presented based on the sales destination and by major product for the years ended August 31 (in thousands): | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Revenues based on sales destination: | |||||||||||||||||||||
Foreign | $ | 1,657,736 | $ | 2,284,152 | $ | 2,471,737 | |||||||||||||||
Domestic | 964,175 | 1,056,786 | 987,457 | ||||||||||||||||||
Total revenues from external customers | $ | 2,621,911 | $ | 3,340,938 | $ | 3,459,194 | |||||||||||||||
Major product information: | |||||||||||||||||||||
Ferrous scrap metal | $ | 1,500,115 | $ | 2,117,055 | $ | 2,259,229 | |||||||||||||||
Nonferrous scrap metal and other | 532,028 | 647,746 | 641,444 | ||||||||||||||||||
Auto parts | 237,314 | 242,910 | 241,038 | ||||||||||||||||||
Finished steel products | 346,982 | 332,719 | 317,338 | ||||||||||||||||||
Semi-finished steel products | 5,472 | 508 | 145 | ||||||||||||||||||
Total revenues from external customers | $ | 2,621,911 | $ | 3,340,938 | $ | 3,459,194 | |||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The schedule below identifies those foreign countries in which the Company’s sales exceeded 10% of consolidated revenues in any of the last three years ended August 31 (in thousands): | ||||||||||||||||||||
2013 | % of | 2012 | % of | 2011 | % of | ||||||||||||||||
Revenue | Revenue | Revenue | |||||||||||||||||||
China | $ | 562,558 | 21.5 | % | $ | 719,979 | 22 | % | $ | 884,744 | 25.6 | % | |||||||||
Turkey | 341,418 | 13 | % | 435,558 | 13 | % | N/A | N/A | |||||||||||||
South Korea | N/A | N/A | $ | 397,525 | 12 | % | N/A | N/A | |||||||||||||
_____________________________ | |||||||||||||||||||||
-1 | N/A - sales were less than the 10% threshold and as such disclosure is not applicable. |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Aug. 31, 2013 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | In the opinion of management, this unaudited quarterly financial summary includes all adjustments necessary to present fairly the results for the periods represented (in thousands, except per share amounts): | |||||||||||||||
Fiscal 2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 592,820 | $ | 662,210 | $ | 710,295 | $ | 656,586 | ||||||||
Operating income (loss) | $ | 1,213 | $ | 11,390 | $ | 7,187 | $ | (347,579 | ) | |||||||
Net income (loss) attributable to SSI | $ | (1,671 | ) | $ | 8,643 | $ | 820 | $ | (289,234 | ) | ||||||
Basic net income (loss) per share attributable to SSI | $ | (0.06 | ) | $ | 0.32 | $ | 0.03 | $ | (10.82 | ) | ||||||
Diluted net income (loss) per share attributable to SSI | $ | (0.06 | ) | $ | 0.32 | $ | 0.03 | $ | (10.82 | ) | ||||||
Fiscal 2012 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 812,176 | $ | 886,612 | $ | 879,865 | $ | 762,285 | ||||||||
Operating income (loss) | $ | 14,970 | $ | 17,987 | $ | 22,078 | $ | (1,367 | ) | |||||||
Net income (loss) attributable to SSI | $ | 7,018 | $ | 9,630 | $ | 11,241 | $ | (485 | ) | |||||||
Basic net income (loss) per share attributable to SSI | $ | 0.26 | $ | 0.35 | $ | 0.41 | $ | (0.02 | ) | |||||||
Diluted net income (loss) per share attributable to SSI | $ | 0.25 | $ | 0.35 | $ | 0.4 | $ | (0.02 | ) | |||||||
Nature_of_Operations_Details
Nature of Operations (Details) | 12 Months Ended |
Aug. 31, 2013 | |
segments | |
Nature of Operations [Abstract] | |
Number of reporting segments | 3 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Significant Accounting Policies [Line Items] | ||||
Number of days used to determine short term highly liquid investments treatment as cash equivalents (in days) | 90 days | |||
Book Overdrafts | $31,000,000 | $31,000,000 | $38,000,000 | |
Allowance for Doubtful Accounts Receivable | 3,000,000 | 3,000,000 | 4,000,000 | |
Number of equity method investments | 5 | 5 | 5 | |
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |
Retained Earnings, Undistributed Earnings from Equity Method Investees | 11,000,000 | 11,000,000 | 11,000,000 | |
Investment in joint venture partnership | 2,411,000 | |||
Contractual receivable | 7,803,000 | |||
Assets held for sale | 2,526,000 | |||
Other | 313,000 | |||
Total | 13,053,000 | 13,053,000 | 0 | 0 |
Workers' Compensation Liability | 10,000,000 | 10,000,000 | 11,000,000 | |
Redeemable Noncontrolling Interest Purchase Date | 8-Mar-13 | |||
Number Of Preferred Share Purchase Rights Per Share of Common Stock | 1 | |||
Rights Expiration Date | 21-Mar-16 | |||
Cash, FDIC Insured Amount | 250,000 | 250,000 | ||
Customer Issued Letters Of Credit | 94,000,000 | 94,000,000 | 37,000,000 | |
Metal Recycling Business | ||||
Significant Accounting Policies [Line Items] | ||||
Total | $13,053,000 | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Percent Of Common Stock Required To Be Acquired To Exercise Preferred Share Purchase Rights | 15.00% | 15.00% | ||
Minimum | Metal Recycling Business | ||||
Significant Accounting Policies [Line Items] | ||||
Shipment period (in days) | 30 days | |||
Minimum | Machinery and equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 3 years | |||
Minimum | Land improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 3 years | |||
Minimum | Buildings and leasehold improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 5 years | |||
Minimum | Office equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 2 years | |||
Minimum | Enterprise Resource Planning systems | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 11 years | |||
Maximum | Metal Recycling Business | ||||
Significant Accounting Policies [Line Items] | ||||
Shipment period (in days) | 60 days | |||
Maximum | Machinery and equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 40 years | |||
Maximum | Land improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 35 years | |||
Maximum | Buildings and leasehold improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 40 years | |||
Maximum | Office equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 20 years | |||
Maximum | Enterprise Resource Planning systems | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 17 years | |||
Class A Common Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Number Of Votes Per Share Of Common Stock | 1 | |||
Number Of Shares Class B Common Stock Convertible To | 1 | |||
Number of Shares of Common Stock Reserved For Class B Stock | 1 | |||
Class B Common Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Number Of Votes Per Share Of Common Stock | 1 | |||
Series A Preferred Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Class Of Warrant Or Right Number Of Shares Conversion Rate | 0.001 | 0.001 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 110 | 110 |
Inventories_net_Details
Inventories, net (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Processed and unprocessed scrap metal | $132,485 | $152,930 |
Semi-finished goods (billets) | 10,745 | 7,328 |
Finished goods | 56,830 | 49,988 |
Supplies | 35,989 | 36,746 |
Inventories, net | $236,049 | $246,992 |
Property_Plant_and_Equipment_n2
Property, Plant and Equipment, net (Details) (USD $) | 12 Months Ended | ||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $1,162,415,000 | $1,099,913,000 | |||
Less: accumulated depreciation | -597,989,000 | -535,728,000 | |||
Property, plant and equipment, net | 564,426,000 | [1] | 564,185,000 | [1] | |
Depreciation and amortization expense | 78,000,000 | 77,000,000 | 68,000,000 | ||
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 696,776,000 | 671,615,000 | |||
Land and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 251,793,000 | 231,925,000 | |||
Buildings and leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 114,313,000 | 91,411,000 | |||
Office equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 47,995,000 | 43,240,000 | |||
ERP systems | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 15,246,000 | 15,246,000 | |||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $36,292,000 | $46,476,000 | |||
[1] | Property, plant and equipment, net includes $85 million and $67 million as of August 31, 2013 and 2012, respectively, at our Canadian locations. |
Business_Combinations_Details
Business Combinations (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Aug. 31, 2013 | Aug. 31, 2011 | Aug. 31, 2010 | Aug. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Jan. 31, 2011 | Feb. 28, 2011 | Mar. 31, 2011 | Mar. 31, 2011 | ||
Subsidiaries | Ralphs Auto Supply (B.C.) Ltd | U-Pick-It | Freetown - Millis Used Auto Parts | Billbs Auto Parts, Inc. | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | Macon Iron And Paper Stock Co. | Steel Pacific Recycling Inc. | State Line Scrap Co. Inc. | Ferrills Auto Parts Inc. | Amix Salvage And Sales Ltd. | Amix Salvage And Sales Ltd. | ||||||
Common Stock | store | store | store | store | Wholly Owned Acquisition Subsidiary | yd | yd | yd | store | BRITISH COLUMBIA | ALBERTA | |||||||||
yd | yd | |||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business Acquisition Number of Stores | 4 | 2 | 2 | 1 | 3 | |||||||||||||||
Business Acquisition Number Of Yards | 2 | 6 | 1 | 4 | 2 | |||||||||||||||
Business Combination, Consideration Transferred | $26,000,000 | $316,000,000 | ||||||||||||||||||
Goodwill | 327,264,000 | 635,491,000 | 627,805,000 | 20,000,000 | 253,336,000 | |||||||||||||||
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 18,000,000 | 245,000,000 | ||||||||||||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 11,000,000 | |||||||||||||||||||
Business Combination, Pro Forma Information, Operating Income (Loss) of Acquiree since Acquisition Date, Actual | -4,000,000 | |||||||||||||||||||
Business Acquisition Equity Interests Issued Or Issuable Percent Of Shares Issued | 20.00% | |||||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | 294,000,000 | |||||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Other Consideration | 22,000,000 | |||||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Equity Interests Issued and Issuable | 20,000,000 | |||||||||||||||||||
Business Acquisition, Contingent Consideration, at Fair Value | 2,000,000 | |||||||||||||||||||
Unaudited pro forma summary [Abstract] | ||||||||||||||||||||
Revenues | 3,539,677,000 | 2,466,547,000 | ||||||||||||||||||
Operating income | 204,613,000 | [1] | 149,328,000 | [1] | ||||||||||||||||
Net income | 134,921,000 | [1] | 82,481,000 | [1] | ||||||||||||||||
Net income attributable to SSI | 127,954,000 | [1] | 78,106,000 | [1] | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | 285,000 | |||||||||||||||||||
Accounts receivable | 5,490,000 | |||||||||||||||||||
Inventories | 21,794,000 | |||||||||||||||||||
Prepaid expenses and other current assets | 777,000 | |||||||||||||||||||
Deferred tax assets | 2,499,000 | |||||||||||||||||||
Property, plant and equipment | 58,811,000 | |||||||||||||||||||
Intangible assets | 7,182,000 | |||||||||||||||||||
Other assets | 16,000 | |||||||||||||||||||
Goodwill | 327,264,000 | 635,491,000 | 627,805,000 | 20,000,000 | 253,336,000 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Short-term liabilities | -22,223,000 | |||||||||||||||||||
Environmental liabilities | -9,083,000 | |||||||||||||||||||
Long-term debt and capital lease obligations | -1,222,000 | |||||||||||||||||||
Deferred tax liability - long-term | -1,646,000 | |||||||||||||||||||
Net assets acquired | $316,016,000 | [2] | ||||||||||||||||||
[1] | Excludes nonrecurring executive compensation paid to the management of acquired companies that will not be incurred in the future. | |||||||||||||||||||
[2] | The acquisitions completed in fiscal 2013 and 2012 were not material, individually or in the aggregate, to the Companybs financial position or results of operations. |
Business_Combinations_Intangib
Business Combinations Intangible Assets Acquired (Details) (Series of Individually Immaterial Business Acquisitions, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2011 | |
Acquired Intangible Assets [Line Items] | ||
Weighted Average Life In Years | 4 years 5 months | |
Total Acquisition Date Fair Value | $7,182 | |
Acquisition Date Fair Value | 257 | [1] |
Covenants not to compete | ||
Acquired Intangible Assets [Line Items] | ||
Weighted Average Life In Years | 4 years 9 months | |
Acquisition Date Fair Value | 6,062 | |
Other intangible assets subject to amortization | ||
Acquired Intangible Assets [Line Items] | ||
Weighted Average Life In Years | 1 year 6 months | |
Acquisition Date Fair Value | $863 | [2] |
[1] | Indefinite-lived intangible assets include tradenames and real property options. | |
[2] | Other intangible assets subject to amortization include supply contracts, permits and licenses and leasehold interests. |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets, net (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Goodwill [Line Items] | ||||
Goodwill impairment charge | $321,000,000 | $321,000,000 | $0 | $0 |
Goodwill, Impaired, Accumulated Impairment Loss | 321,000,000 | 321,000,000 | 0 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | 635,491,000 | 627,805,000 | ||
Acquisitions | 19,378,000 | 1,454,000 | ||
Purchase price adjustments | 1,540,000 | |||
Purchase accounting adjustments | 749,000 | 5,902,000 | ||
Foreign currency translation adjustment | -7,354,000 | -1,210,000 | ||
Goodwill, impairment charges | -321,000,000 | -321,000,000 | 0 | 0 |
Goodwill, end of period | 327,264,000 | 327,264,000 | 635,491,000 | 627,805,000 |
MRB | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge | 321,000,000 | |||
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | 471,954,000 | 464,646,000 | ||
Acquisitions | 1,744,000 | 1,454,000 | ||
Purchase price adjustments | 1,540,000 | |||
Purchase accounting adjustments | 135,000 | 5,361,000 | ||
Foreign currency translation adjustment | -5,620,000 | -1,047,000 | ||
Goodwill, impairment charges | -321,000,000 | |||
Goodwill, end of period | 147,213,000 | 147,213,000 | 471,954,000 | |
APB | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge | 0 | |||
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | 163,537,000 | 163,159,000 | ||
Acquisitions | 17,634,000 | 0 | ||
Purchase price adjustments | 0 | |||
Purchase accounting adjustments | 614,000 | 541,000 | ||
Foreign currency translation adjustment | -1,734,000 | -163,000 | ||
Goodwill, impairment charges | 0 | |||
Goodwill, end of period | $180,051,000 | $180,051,000 | $163,537,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets, net Intangible Assets (Details) (USD $) | 12 Months Ended | ||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |||
Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $1,173,000 | [1] | $1,255,000 | [1] | |
Total Gross Carrying Amount | 27,403,000 | 34,801,000 | |||
Accumulated Amortization | -14,139,000 | -19,023,000 | |||
Amortization of intangible assets | 5,000,000 | 5,000,000 | 7,000,000 | ||
Estimated amortization expense: | |||||
2014 | 3,999,000 | ||||
2015 | 2,386,000 | ||||
2016 | 1,324,000 | ||||
2017 | 762,000 | ||||
2018 | 445,000 | ||||
Thereafter | 3,175,000 | ||||
Total | 12,091,000 | ||||
Covenants not to compete | |||||
Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 20,183,000 | 25,041,000 | |||
Accumulated Amortization | -10,796,000 | -13,231,000 | |||
Supply contracts | |||||
Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 2,264,000 | 5,274,000 | |||
Accumulated Amortization | -1,725,000 | -4,274,000 | |||
Other intangible assets subject to amortization | |||||
Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 3,783,000 | [2] | 3,231,000 | [2] | |
Accumulated Amortization | ($1,618,000) | [2] | ($1,518,000) | [2] | |
[1] | Indefinite-lived intangibles include tradenames, permits and licenses and real property options. | ||||
[2] | Other intangible assets subject to amortization include tradenames, marketing agreements, employment agreements, leasehold interests, permits and licenses and real property options. |
ShortTerm_Borrowings_Details
Short-Term Borrowings (Details) (Wells Fargo Bank NA, USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Wells Fargo Bank NA | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $25,000,000 | |
Line of Credit Facility, Expiration Date | 1-Mar-14 | |
Short-term Debt, Weighted Average Interest Rate | 2.10% | |
Line of Credit Facility, Amount Outstanding | $9,000,000 | $0 |
LongTerm_Debt_Details
Long-Term Debt (Details) | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | |
USD ($) | USD ($) | For Certain Obligations, Workers Compensation and Performance Bonds | For Certain Obligations, Workers Compensation and Performance Bonds | Capital Lease Obligations | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | Bank of America NA And Other Lenders | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | Minimum | Maximum | Interest Rate Option 1 | Interest Rate Option 1 | Interest Rate Option 1 | Interest Rate Option 2 | Interest Rate Option 3 | ||||
Minimum | Maximum | |||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Bank unsecured revolving credit facility, interest at LIBOR plus a spread | $359,971,000 | $325,292,000 | ||||||||||||||
Tax-exempt economic development revenue bonds due January 2021, interest payable monthly at a variable rate (0.12% as of August 31, 2013), secured by a letter of credit | 7,700,000 | 7,700,000 | ||||||||||||||
Tax-exempt economic development revenue bonds, variable interest rate | 0.12% | |||||||||||||||
Tax Exempt Economic Development Revenue Bond Due Date | 31-Jan-21 | |||||||||||||||
Capital lease obligations due through April 2031 | 5,666,000 | 2,320,000 | ||||||||||||||
Capital lease obligations due date | 30-Apr-31 | |||||||||||||||
Total Long-term debt | 373,337,000 | 335,312,000 | ||||||||||||||
Less current maturities | -674,000 | -683,000 | ||||||||||||||
Long-term debt, net of current maturities | 372,663,000 | 334,629,000 | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 670,000,000 | 30,000,000 | ||||||||||||||
Debt Instrument, Description of Variable Rate Basis | London Interbank Offered Rate (or the Canadian equivalent) | greater of the prime rate, the federal funds rate | British Bankers Association LIBOR Rate | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 2.25% | 0.50% | 1.75% | ||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | 0.35% | ||||||||||||||
Line of Credit Facility, Expiration Date | 30-Apr-17 | |||||||||||||||
Line of Credit Facility, Amount Outstanding | 359,971,000 | 325,292,000 | ||||||||||||||
Long-term Debt, Weighted Average Interest Rate | 1.98% | 2.06% | ||||||||||||||
Letters of Credit Outstanding, Amount | $18,000,000 | $18,000,000 |
LongTerm_Debt_Principal_Paymen
Long-Term Debt - Principal Payments on Long-term Debt and Capital Lease Obligations (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-term Debt, by Maturity [Abstract] | ||
2014 | $0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 359,971 | |
2018 | 0 | |
Thereafter | 7,700 | |
Total | 367,671 | |
Amounts representing interest and executory costs | 0 | |
Total long-term debt | 367,671 | |
Capital Leases, Future Minimum Payments, Net Minimum Payments [Abstract] | ||
2014 | 1,575 | |
2015 | 1,237 | |
2016 | 1,096 | |
2017 | 1,089 | |
2018 | 845 | |
Thereafter | 4,415 | |
Total | 10,257 | |
Amounts representing interest and executory costs | -4,591 | |
Total less interest | 5,666 | 2,320 |
Long Term Debt and Capital Lease Obligations Due [Abstract] | ||
2014 | 1,575 | |
2015 | 1,237 | |
2016 | 1,096 | |
2017 | 361,060 | |
2018 | 845 | |
Thereafter | 12,115 | |
Total | 377,928 | |
Amounts representing interest and executory costs | -4,591 | |
Total Long-term debt | $373,337 | $335,312 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (USD $) | Aug. 31, 2013 |
In Thousands, unless otherwise specified | |
Assets: | |
Total Assets | $6,163 |
Liabilities: | |
Total liabilities | -1,672 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |
Assets: | |
Assets held for sale | 2,902 |
Investments in joint venture partnerships | 3,261 |
Liabilities: | |
Contract termination costs | ($1,672) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating Leases, Rent Expense, Net | $28,000,000 | $25,000,000 |
Future minimum obligations under non-cancelable operating leases: | ||
2014 | 21,101,000 | |
2015 | 18,027,000 | |
2016 | 12,076,000 | |
2017 | 9,980,000 | |
2018 | 7,138,000 | |
Thereafter | 36,281,000 | |
Total | $104,603,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies Contingencies Environmental (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Mar. 30, 2012 | Aug. 31, 2013 | Mar. 30, 2012 | Aug. 31, 2013 | Mar. 30, 2012 | Mar. 30, 2012 | Mar. 30, 2012 | Mar. 30, 2012 | |||||||
Corporate | Corporate | Metal Recycling Business | Metal Recycling Business | Auto Parts Business | Auto Parts Business | Steel Manufacturing Business | Portland Harbor Superfund Site | Portland Harbor Superfund Site | Other Metals Recycling Business Sites | Minimum | Minimum | Maximum | Potential Responsible Parties | Potential Responsible Parties | Lower Willamette Group | |||||||||
T | alternatives | Portland Harbor Superfund Site | Portland Harbor Superfund Site | Portland Harbor Superfund Site | Minimum | Maximum | Portland Harbor Superfund Site | |||||||||||||||||
potentially_responsible_party | Portland Harbor Superfund Site | Portland Harbor Superfund Site | ||||||||||||||||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||||||||||||||||||||
Beginning balance | $47,059,000 | $40,855,000 | $0 | $0 | $30,859,000 | $25,655,000 | $16,200,000 | $15,200,000 | $0 | $1,000,000 | $30,000,000 | |||||||||||||
Liabilities Established (Released), Net | 3,005,000 | [1] | 6,380,000 | [1] | 500,000 | 0 | -69,000 | [1] | 5,380,000 | [1] | 2,574,000 | [1] | 1,000,000 | [1] | ||||||||||
Payments | -270,000 | -176,000 | 0 | -270,000 | -176,000 | 0 | 0 | |||||||||||||||||
Ending balance | 49,794,000 | 47,059,000 | 500,000 | 0 | 30,520,000 | 30,859,000 | 18,774,000 | 16,200,000 | 0 | 1,000,000 | 30,000,000 | |||||||||||||
Short-Term | 754,000 | 2,185,000 | 0 | 200,000 | 554,000 | |||||||||||||||||||
Long-Term | 49,040,000 | 44,874,000 | 500,000 | 30,320,000 | 18,220,000 | |||||||||||||||||||
Accrual for Environmental Loss Contingencies, Increase (Decrease) for Acquisitions and Divestitures | 3,000,000 | 8,000,000 | ||||||||||||||||||||||
Number of Potentially Responsible Parties | 80 | |||||||||||||||||||||||
Site Contingency Number of Years For Feasibility Study | 10 years | |||||||||||||||||||||||
Feasibility Study Investigation Costs | 100,000,000 | |||||||||||||||||||||||
Site Contingency Number of Remedial Alternatives | 10 | |||||||||||||||||||||||
Site Contingency Least Costly Remediation Plan | 170,000,000 | 250,000,000 | ||||||||||||||||||||||
Site Contingency Most Costly Remediation Plan | $1,080,000,000 | $1,760,000,000 | ||||||||||||||||||||||
Site Contingency, Estimated Time Frame to Remediate | 2 years | 28 years | ||||||||||||||||||||||
Annual production capacity | 950,000 | |||||||||||||||||||||||
[1] | During fiscal 2013 and 2012, the Company recorded $3 million and $8 million, respectively, in purchase accounting for environmental liabilities related to properties acquired or leased in connection with business combinations. |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $3,000 | $7,906 | $5,012 | $0 |
Total charges to date | 12,918 | |||
Total expected charges | 13,100 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 2,955 | 0 | ||
Restructuring charges | 3,000 | 7,906 | 5,012 | 0 |
Payments and Other | -7,556 | -2,057 | ||
Restructuring reserve, ending balance | 3,305 | 3,305 | 2,955 | 0 |
Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,443 | 2,741 | ||
Total charges to date | 5,184 | |||
Total expected charges | 5,200 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 2,477 | 0 | ||
Restructuring charges | 2,443 | 2,741 | ||
Payments and Other | -4,642 | -264 | ||
Restructuring reserve, ending balance | 278 | 278 | 2,477 | |
Contract termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3,229 | 440 | ||
Total charges to date | 3,669 | |||
Total expected charges | 3,800 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 414 | 0 | ||
Restructuring charges | 3,229 | 440 | ||
Payments and Other | -616 | -26 | ||
Restructuring reserve, ending balance | 3,027 | 3,027 | 414 | |
Other exit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,234 | 1,831 | ||
Total charges to date | 4,065 | |||
Total expected charges | 4,100 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 64 | 0 | ||
Restructuring charges | 2,234 | 1,831 | ||
Payments and Other | -2,298 | -1,767 | ||
Restructuring reserve, ending balance | 0 | 0 | 64 | |
Metal Recycling Business | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,748 | 1,660 | ||
Total charges to date | 4,408 | |||
Total expected charges | 4,500 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 2,748 | 1,660 | ||
Auto Parts Business | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 239 | 233 | ||
Total charges to date | 472 | |||
Total expected charges | 500 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 239 | 233 | ||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 4,919 | 3,119 | ||
Total charges to date | 8,038 | |||
Total expected charges | 8,100 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $4,919 | $3,119 |
Redeemable_Noncontrolling_Inte2
Redeemable Noncontrolling Interest (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Feb. 28, 2013 | Mar. 31, 2011 | Aug. 31, 2013 | |
Subsidiaries | Maximum | |||||
Common Stock | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | 31-Mar-11 | |||||
Business Acquisition Equity Interests Issued Or Issuable Percent Of Shares Issued | 20.00% | |||||
Period In Which Noncontrolling Interest Becomes Redeemable | 60 days | |||||
Redeemable Noncontrolling Interest Purchase Date | 8-Mar-13 | |||||
Purchase of noncontrolling interest | $24,734,000 | $0 | ||||
Redeemable Noncontrolling Interest, Equity, Fair Value | 25,000,000 | |||||
Increase (Decrease) in Redeemable Noncontrolling Interest [Roll Forward] | ||||||
Balances - September 1 (Beginning of period) | 22,248,000 | 19,053,000 | ||||
Net income (loss) attributable to noncontrolling interest | -903,000 | -1,163,000 | 100,000 | |||
Currency translation adjustment | -1,030,000 | 350,000 | ||||
Capital contributions from noncontrolling interest holder | 1,970,000 | 4,008,000 | ||||
Adjustment to fair value | 2,449,000 | 0 | ||||
Purchase | -24,734,000 | 0 | ||||
Balances - August 31 (End of period) | $0 | $22,248,000 | $19,053,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustment | ($6,423) | $3,658 |
Pension obligations, net | -2,817 | -6,106 |
Net unrealized loss on cash flow hedges | -121 | -141 |
Total accumulated other comprehensive loss | ($9,361) | ($2,589) |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) | 12 Months Ended | 25 Months Ended | 26 Months Ended |
Aug. 31, 2013 | Oct. 31, 2010 | Oct. 31, 2010 | |
Take Or Pay Natural Gas Contract | Take Or Pay Natural Gas Contract | ||
MMBTU | MMBTU | ||
Derivative [Line Items] | |||
Derivative Unconditional Purchase Obligation Number Of Units Per Day (in MMBTUs) | 2,000 | ||
Unconditional Purchase Obligation Contract Expiration Date | 31-May-11 | ||
Derivative Unconditional Purchase Obligation Number of Units Per Month Designated as Cash Flow Hedge (in MMBTUs) | 20,000 |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Oct. 01, 2012 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||
Defined Contribution Plan, Period Contributions | $2 | $3 | $3 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 17 | 17 | ||
Defined Benefit Plan, Benefit Obligation | 15 | 18 | ||
Defined Benefit Plan, Funded Status of Plan | 3 | -1 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.73% | 3.67% | ||
Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 17 | 16 | ||
Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||
Multiemployer Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of Multiemployer Plans | 13 | |||
Multiemployer Plan, Period Contributions | 4 | 4 | 3 | |
Steelworkers Western Independent Shops Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | 31-Mar-16 | |||
Multiemployer Plans, Annual Contribution Rate Increase | 0.06 | |||
IRC 412(e) Funded Ratio | 72.30% | |||
Multiemployer Plan, Period Contributions | 3 | 2 | 2 | |
Supplemental Employee Retirement Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 2 | 2 | ||
Defined Benefit Plan, Benefit Obligation | 3 | 4 | ||
Defined Benefit Plan, Funded Status of Plan | -3 | -4 | ||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 1 | |||
Minimum | Steelworkers Western Independent Shops Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Rehabilitation Plan Contributions As A Percent Of Total Contributions | 5.00% | 5.00% | 5.00% | |
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $3 |
Sharebased_Compensation_Detail
Share-based Compensation (Details) (USD $) | 12 Months Ended | |||||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2010 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Allocated Share-based Compensation Expense | $11,000,000 | $9,000,000 | $14,000,000 | |||||
Weighted Average Grant Date Fair Value: | ||||||||
Restricted Stock or Unit Expense | 6,000,000 | 7,000,000 | 7,000,000 | |||||
Share based Compensation Arrangement by Share based Payment Award, Options, Grants in Period, Total Fair Value | 3,000,000 | |||||||
Options Outstanding: | ||||||||
Outstanding, Beginning Balance | 612,000 | 319,000 | 338,000 | |||||
Granted | 0 | 323,000 | 0 | |||||
Exercised | -15,000 | -25,000 | -19,000 | |||||
Canceled | -42,000 | -5,000 | ||||||
Outstanding, Ending Balance | 555,000 | 612,000 | 319,000 | 338,000 | ||||
Weighted Average Exercise Price: | ||||||||
Weighted Average Exercise Price, Beginning of Period | $31.94 | $28.50 | $28.51 | |||||
Weighted Average Grant Date Fair Value | $34.75 | |||||||
Exercises, Weighted Average Exercise Price | $20.48 | $24.03 | $28.70 | |||||
Canceled, Weighted Average Exercise Price | $34.39 | $34.59 | ||||||
Weighted Average Exercise Price, End of Period | $32.07 | $31.94 | $28.50 | $28.51 | ||||
Weighted Average Remaining Contractual Term | 3 years 1 month | 3 years 11 months | 3 years 11 months | 4 years 10 months | ||||
Aggregate Intrinsic Value | 47,000 | [1] | 459,000 | [1] | 5,430,000 | [1] | 5,324,000 | [1] |
Number of Nonvested Options Outstanding | 307,855 | |||||||
Options, Exercises in Period, Total Intrinsic Value (Less than $1 million for the years ended August 31, 2013 and 2012) | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Class A Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Award, Number of Shares Authorized | 12,200,000 | |||||||
Share-based Payment Award, Number of Shares Available for Grant | 5,700,000 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Award, Award Vesting Period | 5 years | |||||||
Share Based Payment Award Equity Instruments Other Than Options Vesting Percent | 20.00% | |||||||
Share Based Payment Award Equity Instruments Other Than Options Grants In Period Total Fair Value | 7,000,000 | 6,000,000 | 7,000,000 | |||||
Number of Shares: | ||||||||
Outstanding, Beginning Balance | 303,000 | 348,000 | 311,000 | |||||
Granted | 217,001 | 146,481 | 135,255 | |||||
Vested | -174,000 | -148,000 | -94,000 | |||||
Forfeited | -35,000 | -43,000 | -4,000 | |||||
Outstanding, Ending Balance | 311,000 | 303,000 | 348,000 | |||||
Weighted Average Grant Date Fair Value: | ||||||||
Weighted Average Grant Date Fair Value, Beginning of Period | $49.46 | $54.06 | $53.55 | |||||
Granted, Weighted Average Grant Date Fair Value | $30.36 | $42.63 | $53.65 | |||||
Vested, Weighted Average Grant Date Fair Value | $46.04 | $52.93 | $51.86 | |||||
Forfeitured, Weighted Average Grant Date Fair Value | $40.02 | $51.47 | $52.42 | |||||
Weighted Average Grant Date Fair Value, End of Period | $39.11 | $49.46 | $54.06 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 8,000,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months 23 days | |||||||
Restricted Stock Units (RSUs) | Class A Common Stock | ||||||||
Weighted Average Grant Date Fair Value: | ||||||||
Fair Value | $24.69 | [2] | $28.43 | [2] | $57.63 | [2] | ||
Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Allocated Share-based Compensation Expense | 3,000,000 | 1,000,000 | 6,000,000 | |||||
Number of Shares: | ||||||||
Outstanding, Beginning Balance | 446,000 | 285,000 | 266,000 | |||||
Granted | 267,000 | 278,000 | 115,000 | |||||
Vested | -98,000 | -54,000 | -90,000 | |||||
Forfeited | -42,000 | -63,000 | -6,000 | |||||
Outstanding, Ending Balance | 573,000 | 446,000 | 285,000 | |||||
Weighted Average Grant Date Fair Value: | ||||||||
Weighted Average Grant Date Fair Value, Beginning of Period | $38.33 | $47.48 | $47.95 | |||||
Granted, Weighted Average Grant Date Fair Value | $28.48 | $25.98 | $59.45 | |||||
Vested, Weighted Average Grant Date Fair Value | $47.10 | $25.42 | $63.82 | |||||
Forfeitured, Weighted Average Grant Date Fair Value | $35.21 | $36.53 | $53.35 | |||||
Weighted Average Grant Date Fair Value, End of Period | $32.47 | $38.33 | $47.48 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 7,000,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 5 months 22 days | |||||||
Performance Shares | Class A Common Stock | ||||||||
Weighted Average Grant Date Fair Value: | ||||||||
Fair Value | $28.51 | [3] | $43.90 | [3] | $52.13 | [3] | ||
Performance Share Awards 2011 to 2013 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Grant Date | 3-Dec-10 | |||||||
Share Based Compensation Weight Based On Earnings Per Share Used In Calculation Of Performance Targets | 50.00% | |||||||
Share Based Compensation Weight Based on Divisional Average Return On Capital Used In Calculation Of Performance Targets | 50.00% | |||||||
Performance Share Awards 2011 to 2013 Plan | Minimum | ||||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Award Payouts Threshold | 50.00% | |||||||
Performance Share Awards 2011 to 2013 Plan | Maximum | ||||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Award Payouts Threshold | 200.00% | |||||||
Performance Share Awards 2013 to 2014 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Award, Award Vesting Period | 2 years | |||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Grant Date | 24-Jul-12 | |||||||
Share Based Compensation Weight Based on EBITDA Used in Calculation of Performance Targets | 50.00% | |||||||
Share Based Compensation Weight Based on Return on Equity Used in Calculation of Performance Targets | 50.00% | |||||||
Performance Share Awards 2013 to 2014 Plan | Minimum | ||||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Award Payouts Threshold | 50.00% | |||||||
Performance Share Awards 2013 to 2014 Plan | Maximum | ||||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Award Payouts Threshold | 200.00% | |||||||
Performance Share Awards 2014 to 2015 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Award, Award Vesting Period | 2 years | |||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Grant Date | 13-Aug-13 | |||||||
Share Based Compensation Weight Based on EBITDA Used in Calculation of Performance Targets | 50.00% | |||||||
Share Based Compensation Weight Based on Return on Equity Used in Calculation of Performance Targets | 50.00% | |||||||
Performance Share Awards 2014 to 2015 Plan | Minimum | ||||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Award Payouts Threshold | 50.00% | |||||||
Performance Share Awards 2014 to 2015 Plan | Maximum | ||||||||
Weighted Average Grant Date Fair Value: | ||||||||
Performance Based Awards Award Payouts Threshold | 200.00% | |||||||
Deferred Stock Units | ||||||||
Number of Shares: | ||||||||
Granted | 29,167 | 18,202 | 17,459 | |||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Award, Award Vesting Period | 2 years | |||||||
Weighted Average Grant Date Fair Value: | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $1,000,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Term | 5 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Exercise Price Premium | 20.00% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||||
Risk-free interest rate | 0.48% | |||||||
Expected dividend yield | 2.59% | |||||||
Expected term (in years) | 3 years 9 months | |||||||
Expected volatility | 58.15% | |||||||
Fair value of option | $9.29 | |||||||
[1] | Amounts represent the difference between the exercise price and the closing price of the Companybs stock on the last trading day of the corresponding fiscal year, multiplied by the number of in-the-money options. | |||||||
[2] | Amounts represent the value of the Companybs ClassB A common stock on the date that the restricted stock units vested. | |||||||
[3] | Amounts represent the weighted average value of the Companybs ClassB A common stock on the date that the performance share awards vested. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Income from continuing operations before income taxes [Abstract] | ||||
United States | ($196,289,000) | $54,304,000 | $171,329,000 | |
Foreign | -141,160,000 | -11,348,000 | 9,476,000 | |
Income (loss) from continuing operations before income taxes | -337,449,000 | 42,956,000 | 180,805,000 | |
Current [Abstract] | ||||
Federal | 556,000 | 5,267,000 | 33,499,000 | |
State | 356,000 | 453,000 | 2,583,000 | |
Foreign | 764,000 | -2,000 | 82,000 | |
Total current tax expense (benefit) | 1,676,000 | 5,718,000 | 36,164,000 | |
Deferred [Abstract] | ||||
Federal | -58,194,000 | 13,166,000 | 19,164,000 | |
State | -264,000 | -2,748,000 | 383,000 | |
Foreign | -644,000 | -2,097,000 | 1,457,000 | |
Total deferred tax expense (benefit) | -59,102,000 | 8,321,000 | 21,004,000 | |
Total income tax expense (benefit) | -57,426,000 | 14,039,000 | 57,168,000 | |
Reconciliation of the difference between the federal statutory rate and the Company's effective tax rate [Abstract] | ||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | |
State taxes, net of credits | 1.20% | -5.70% | 0.70% | |
Foreign income taxed at different rates | -3.50% | 4.20% | -0.60% | |
Section 199 deduction | 0.50% | -0.30% | -1.00% | |
Non-deductible officers' compensation | -0.10% | 1.50% | 0.30% | |
Noncontrolling interests | 0.20% | -2.20% | -1.00% | |
Research and development credits | 0.20% | -2.00% | -0.50% | |
Valuation allowance on deferred tax assets | -8.60% | 0.00% | 0.00% | |
Non-deductible goodwill | -7.10% | 0.00% | 0.00% | |
Foreign interest income | 0.00% | 0.70% | 0.00% | |
Other | -0.80% | 1.50% | -1.30% | |
Effective tax rate | 17.00% | 32.70% | 31.60% | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 29,000,000 | |||
Deferred tax assets [Abstract] | ||||
Environmental liabilities | 12,390,000 | 12,390,000 | 11,165,000 | |
Employee benefit accruals | 9,378,000 | 9,378,000 | 9,784,000 | |
State income tax and other | 2,478,000 | 2,478,000 | 5,384,000 | |
Net operating loss carryforwards | 11,758,000 | 11,758,000 | 5,699,000 | |
State credit carryforwards | 5,360,000 | 5,360,000 | 4,374,000 | |
Inventory valuation methods | 1,390,000 | 1,390,000 | 1,560,000 | |
Amortizable goodwill and other intangibles | 38,820,000 | 38,820,000 | 0 | |
Valuation allowance | -29,696,000 | -29,696,000 | -795,000 | |
Total deferred tax assets | 51,878,000 | 51,878,000 | 37,171,000 | |
Deferred tax liabilities [Abstract] | ||||
Amortizable goodwill and other intangibles | 0 | 0 | 20,452,000 | |
Accelerated depreciation and basis differences | 68,609,000 | 68,609,000 | 90,544,000 | |
Prepaid expense acceleration | 2,418,000 | 2,418,000 | 2,365,000 | |
Foreign currency translation adjustment | 30,000 | 30,000 | 1,987,000 | |
Total deferred tax liabilities | 71,057,000 | 71,057,000 | 115,348,000 | |
Net deferred tax liability | 19,179,000 | 19,179,000 | 78,177,000 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits, as of the beginning of the year | 491,000 | 303,000 | 1,631,000 | |
Reductions for tax positions of prior years | -31,000 | -143,000 | -75,000 | |
Settlements with tax authorities | 0 | 0 | -875,000 | |
Additions for tax positions of the current year | 66,000 | 331,000 | 160,000 | |
Reductions for lapse of statutes | 0 | 0 | -538,000 | |
Unrecognized tax benefits, as of the end of the year | 526,000 | 526,000 | 491,000 | 303,000 |
Foreign Country | ||||
Deferred tax liabilities [Abstract] | ||||
Operating Loss Carryforwards | 48,000,000 | 48,000,000 | ||
Foreign Country | Minimum | ||||
Deferred tax liabilities [Abstract] | ||||
Operating Loss Carryforwards, Expiration Dates | 31-Aug-14 | |||
Foreign Country | Maximum | ||||
Deferred tax liabilities [Abstract] | ||||
Operating Loss Carryforwards, Expiration Dates | 31-Aug-33 | |||
State and Local Jurisdiction | Minimum | ||||
Deferred tax liabilities [Abstract] | ||||
Tax Credit Carryforward, Expiration Date | 31-Aug-14 | |||
State and Local Jurisdiction | Maximum | ||||
Deferred tax liabilities [Abstract] | ||||
Tax Credit Carryforward, Expiration Date | 31-Aug-25 | |||
Deferred Tax Liabilities Correction | ||||
Reconciliation of the difference between the federal statutory rate and the Company's effective tax rate [Abstract] | ||||
Correction of error resulting in reduction of income tax expense | $3,000,000 |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Earnings Per Share [Abstract] | |||||||||||
Income (loss) from continuing operations | ($280,023) | $28,917 | $123,637 | ||||||||
Net income attributable to noncontrolling interests | -1,419 | -1,513 | -5,181 | ||||||||
Income (loss) from continuing operations attributable to SSI | -281,442 | 27,404 | 118,456 | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | -101 | ||||||||
Net income (loss) attributable to SSI | ($289,234) | $820 | $8,643 | ($1,671) | ($485) | $11,241 | $9,630 | $7,018 | ($281,442) | $27,404 | $118,355 |
Computation of shares: | |||||||||||
Weighted average common shares outstanding, basic | 26,656,000 | 27,317,000 | 27,649,000 | ||||||||
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs | 0 | 236,000 | 310,000 | ||||||||
Weighted average common shares outstanding, diluted | 26,656,000 | 27,553,000 | 27,959,000 | ||||||||
Antidilutive securities excluded from computation of earnings per share | 957,235 | 69,081 | 39,820 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2010 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Related Party Transaction [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | 31-Mar-11 | |||
Redeemable Noncontrolling Interest Purchase Date | 8-Mar-13 | |||
Corporate Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Purchases from Related Party | $26 | $41 | $48 | |
Advances to joint ventures (Less Than $1 Million For the Year Ended August 31, 2012) | 2 | 1 | ||
Payments from joint ventures | 2 | |||
Due to Affiliate | 3 | 2 | ||
Accounts Receivable, Related Parties (MMGL - Immediate Family Member of Management or Principal Owner, Less Than $1 Million as of August 31, 2013 and 2012) | 1 | 1 | ||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | 2 | |||
Minority Shareholder Of Subsidiary | Amix Salvage And Sales Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | 31-Mar-11 | |||
Redeemable Noncontrolling Interest Purchase Date | 8-Mar-13 | |||
Related Party Transaction, Expenses from Transactions with Related Party | 5 | 9 | 3 | |
Accounts Payable, Related Parties (Less Than $1 Million As Of August 31, 2012) | 1 | |||
Other Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Accounts Receivable, Related Parties (MMGL - Immediate Family Member of Management or Principal Owner, Less Than $1 Million as of August 31, 2013 and 2012) | 1 | |||
Auto Parts Business Segment President | Partnership Interest | ||||
Related Party Transaction [Line Items] | ||||
Related Party Noncontrolling Ownership Percentage By Noncontrolling Owners | 25.00% | |||
Related Party Noncontrolling Ownership Percentage By Parent | 75.00% | |||
Related Party Number Of Stores | 5 | |||
Related Party Transaction Related Party Share Of Profit | 1 | 2 | 2 | |
Lease Expiration Date | 31-Mar-16 | |||
Related Party Transaction Rent Expense | 1 | 1 | 1 | |
Immediate Family Member of Management or Principal Owner | ||||
Related Party Transaction [Line Items] | ||||
Accounts Receivable, Related Parties (MMGL - Immediate Family Member of Management or Principal Owner, Less Than $1 Million as of August 31, 2013 and 2012) | 1 | 1 | ||
Related Party Transaction Percentage Of Shared Legal And Consulting Costs | 50.00% | |||
Director | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Revenues from Transactions with Related Party (Less Than $1 Million For The Year Ended August 31, 2011) | 1 | |||
Related Parties Amount in Cost of Sales (Less Than $1 Million For The Year Ended August 31, 2011) | $1 |
Segment_Information_Details
Segment Information (Details) | 12 Months Ended |
Aug. 31, 2013 | |
segments | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Number of Operating Segments | 3 |
Segment_Information_Segment_As
Segment Information - Segment Assets (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $1,405,512 | $1,763,573 | ||
Property, plant and equipment, net | 564,426 | [1] | 564,185 | [1] |
Investments in joint venture partnerships | 14,808 | 17,126 | ||
Metal Recycling Business | ||||
Segment Reporting Information [Line Items] | ||||
Investments in joint venture partnerships | 15,000 | 17,000 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,006,461 | 2,348,021 | ||
Operating Segments | Metal Recycling Business | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,316,202 | [2] | 1,696,296 | [2] |
Operating Segments | Auto Parts Business | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 359,977 | 329,327 | ||
Operating Segments | Steel Manufacturing Business | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 330,282 | 322,398 | ||
Corporate and Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | -600,949 | -584,448 | ||
CANADA | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment, net | $85,000 | $67,000 | ||
[1] | Property, plant and equipment, net includes $85 million and $67 million as of August 31, 2013 and 2012, respectively, at our Canadian locations. | |||
[2] | MRB total assets include $15 million and $17 million as of August 31, 2013 and 2012, respectively, for investments in joint venture partnerships. |
Segment_Information_Segment_Re
Segment Information - Segment Revenue and Segment Reconciliation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | $2,621,911 | $3,340,938 | $3,459,194 | |||||||||||
Depreciation and amortization | 83,070 | 82,256 | 74,866 | |||||||||||
Capital expenditures | 90,381 | 78,560 | 104,964 | |||||||||||
Operating Income (loss) | -347,579 | 7,187 | 11,390 | 1,213 | -1,367 | 22,078 | 17,987 | 14,970 | -327,789 | 53,668 | 185,964 | |||
Restructuring charges | -3,000 | -7,906 | -5,012 | 0 | ||||||||||
Interest expense | -9,743 | -11,880 | -8,436 | |||||||||||
Other income, net | 83 | 1,168 | 3,277 | |||||||||||
Income (loss) from continuing operations before income taxes | -337,449 | 42,956 | 180,805 | |||||||||||
Income from joint ventures | 1,183 | 2,636 | 4,622 | |||||||||||
Goodwill impairment charge | 321,000 | 321,000 | 0 | 0 | ||||||||||
Other asset impairment charges | 13,053 | 13,053 | 0 | 0 | ||||||||||
Metal Recycling Business | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 2,032,143 | 2,764,801 | 2,900,673 | |||||||||||
Depreciation and amortization | 58,964 | 57,855 | 49,773 | |||||||||||
Capital expenditures | 61,930 | 60,212 | 88,917 | |||||||||||
Operating Income (loss) | -311,549 | [1] | 63,872 | [1] | 164,646 | [1] | ||||||||
Restructuring charges | -2,748 | -1,660 | ||||||||||||
Income from joint ventures | 1,000 | 2,000 | 5,000 | |||||||||||
Goodwill impairment charge | 321,000 | |||||||||||||
Other asset impairment charges | 13,053 | |||||||||||||
Auto Parts Business | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 237,314 | 242,910 | 241,038 | |||||||||||
Depreciation and amortization | 11,793 | 10,920 | 10,131 | |||||||||||
Capital expenditures | 12,769 | 7,525 | 7,099 | |||||||||||
Operating Income (loss) | 24,539 | 33,304 | 64,027 | |||||||||||
Restructuring charges | -239 | -233 | ||||||||||||
Goodwill impairment charge | 0 | |||||||||||||
Steel Manufacturing Business | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 352,454 | 333,227 | 317,483 | |||||||||||
Depreciation and amortization | 9,072 | 9,436 | 10,782 | |||||||||||
Capital expenditures | 7,582 | 5,556 | 3,328 | |||||||||||
Operating Income (loss) | 6,541 | -2,081 | 2,562 | |||||||||||
Operating Segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Depreciation and amortization | 79,829 | 78,211 | 70,686 | |||||||||||
Capital expenditures | 82,281 | 73,293 | 99,344 | |||||||||||
Operating Income (loss) | -280,469 | 95,095 | 231,235 | |||||||||||
Operating Segments | Metal Recycling Business | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 2,210,484 | 2,948,707 | 3,070,004 | |||||||||||
Operating Segments | Auto Parts Business | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 313,306 | 316,884 | 319,833 | |||||||||||
Less: Intersegment Revenues | Metal Recycling Business | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | -178,341 | -183,906 | -169,331 | |||||||||||
Less: Intersegment Revenues | Auto Parts Business | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | -75,992 | -73,974 | -78,795 | |||||||||||
Corporate | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Depreciation and amortization | 3,241 | 4,045 | 4,180 | |||||||||||
Capital expenditures | 8,100 | 5,267 | 5,620 | |||||||||||
Segment Reconciling Items | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Restructuring charges | -7,906 | -5,012 | 0 | |||||||||||
Corporate and Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating Income (loss) | ($39,414) | ($36,415) | ($45,271) | |||||||||||
[1] | MRB operating income (loss) includes $1 million, $2 million and $5 million in income from joint ventures accounted for by the equity method in fiscal 2013, 2012 and 2011, respectively. The MRB operating loss for fiscal 2013 also includes a goodwill impairment charge of $321 million and other asset impairment charges of $13 million. |
Segment_Information_Segment_De
Segment Information - Segment Destination and Product (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Segment Reporting Information [Line Items] | |||
Revenues | $2,621,911 | $3,340,938 | $3,459,194 |
Ferrous scrap metal | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,500,115 | 2,117,055 | 2,259,229 |
Nonferrous scrap metal and other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 532,028 | 647,746 | 641,444 |
Auto parts | |||
Segment Reporting Information [Line Items] | |||
Revenues | 237,314 | 242,910 | 241,038 |
Finished steel products | |||
Segment Reporting Information [Line Items] | |||
Revenues | 346,982 | 332,719 | 317,338 |
Semi-finished steel products | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,472 | 508 | 145 |
Foreign | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,657,736 | 2,284,152 | 2,471,737 |
Domestic | |||
Segment Reporting Information [Line Items] | |||
Revenues | $964,175 | $1,056,786 | $987,457 |
Segment_Information_Segment_Co
Segment Information - Segment Concentration (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
customer | customer | customer | |
Segment Reporting Information [Line Items] | |||
Number Of External Customers With More Than 10% of Consolidated Revenue | 0 | 0 | 0 |
Revenues | $2,621,911 | $3,340,938 | $3,459,194 |
China | |||
Segment Reporting Information [Line Items] | |||
Revenues | 562,558 | 719,979 | 884,744 |
Turkey | |||
Segment Reporting Information [Line Items] | |||
Revenues | 341,418 | 435,558 | |
South Korea | |||
Segment Reporting Information [Line Items] | |||
Revenues | $397,525 | ||
Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Sales | China | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 21.50% | 22.00% | 25.60% |
Sales | Turkey | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 13.00% | |
Sales | South Korea | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 12.00% |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Revenues | $656,586,000 | $710,295,000 | $662,210,000 | $592,820,000 | $762,285,000 | $879,865,000 | $886,612,000 | $812,176,000 | $2,621,911,000 | $3,340,938,000 | $3,459,194,000 |
Operating income (loss) | -347,579,000 | 7,187,000 | 11,390,000 | 1,213,000 | -1,367,000 | 22,078,000 | 17,987,000 | 14,970,000 | -327,789,000 | 53,668,000 | 185,964,000 |
Net income (loss) attributable to SSI | -289,234,000 | 820,000 | 8,643,000 | -1,671,000 | -485,000 | 11,241,000 | 9,630,000 | 7,018,000 | -281,442,000 | 27,404,000 | 118,355,000 |
Basic net income (loss) per share attributable to SSI | ($10.82) | $0.03 | $0.32 | ($0.06) | ($0.02) | $0.41 | $0.35 | $0.26 | ($10.56) | $1 | $4.28 |
Diluted net income (loss) per share attributable to SSI | ($10.82) | $0.03 | $0.32 | ($0.06) | ($0.02) | $0.40 | $0.35 | $0.25 | ($10.56) | $0.99 | $4.23 |
Goodwill, Impairment Loss | 321,000,000 | 321,000,000 | 0 | 0 | |||||||
Other asset impairment charges | 13,053,000 | 13,053,000 | 0 | 0 | |||||||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 29,000,000 | ||||||||||
Restructuring charges | $3,000,000 | $7,906,000 | $5,012,000 | $0 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $4,459 | $6,148 | $6,209 |
Charges to cost and expenses | 584 | 688 | 334 |
Deductions | -2,053 | -2,377 | -395 |
Balance at end of period | 2,990 | 4,459 | 6,148 |
Allowance for notes and other contractual receivables | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 0 | ||
Charges to cost and expenses | 7,803 | ||
Deductions | 0 | ||
Balance at end of period | 7,803 | ||
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 794 | 589 | 855 |
Charges to cost and expenses | 28,902 | 218 | 189 |
Deductions | 0 | -13 | -455 |
Balance at end of period | $29,696 | $794 | $589 |