Document_and_Entity_Informatio
Document and Entity Information Document | 6 Months Ended | ||
Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Class A Common Stock [Member] | Class B Common Stock [Member] | ||
Entity Information [Line Items] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Feb-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Entity Registrant Name | 'SCHNITZER STEEL INDUSTRIES INC | ' | ' |
Entity Central Index Key | '0000912603 | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 26,324,268 | 305,900 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $20,403 | $13,481 |
Accounts receivable, net of allowance for doubtful accounts of $2,722 and $2,990 | 173,876 | 188,270 |
Inventories, net | 252,849 | 236,049 |
Deferred income taxes | 3,824 | 3,750 |
Refundable income taxes | 5,680 | 3,521 |
Prepaid expenses and other current assets | 21,966 | 22,159 |
Total current assets | 478,598 | 467,230 |
Property, plant and equipment, net of accumulated depreciation of $628,127 and $597,989 | 537,187 | 564,426 |
Investments in joint venture partnerships | 14,524 | 14,808 |
Goodwill | 324,831 | 327,264 |
Intangibles, net of accumulated amortization of $13,963 and $14,139 | 11,146 | 13,264 |
Other assets | 17,483 | 18,520 |
Total assets | 1,383,769 | 1,405,512 |
Current liabilities: | ' | ' |
Short-term borrowings | 696 | 9,174 |
Accounts payable | 91,771 | 96,348 |
Accrued payroll and related liabilities | 22,206 | 24,002 |
Environmental liabilities | 1,096 | 754 |
Accrued income taxes | 0 | 388 |
Other accrued liabilities | 37,052 | 35,468 |
Total current liabilities | 152,821 | 166,134 |
Deferred income taxes | 24,611 | 22,929 |
Long-term debt, net of current maturities | 378,217 | 372,663 |
Environmental liabilities, net of current portion | 48,403 | 49,040 |
Other long-term liabilities | 12,940 | 13,547 |
Total liabilities | 616,992 | 624,313 |
Commitments and contingencies (Note 6) | ' | ' |
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ' | ' |
Preferred stock b 20,000 shares $1.00 par value authorized, none issued | ' | ' |
Additional paid-in capital | 13,479 | 7,476 |
Retained earnings | 737,346 | 751,879 |
Accumulated other comprehensive loss | -15,959 | -9,361 |
Total SSI shareholdersb equity | 761,496 | 776,558 |
Noncontrolling interests | 5,281 | 4,641 |
Total equity | 766,777 | 781,199 |
Total liabilities and equity | 1,383,769 | 1,405,512 |
Class A Common Stock [Member] | ' | ' |
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ' | ' |
Common stock, value | 26,324 | 26,171 |
Class B Common Stock [Member] | ' | ' |
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ' | ' |
Common stock, value | $306 | $393 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Accounts receivable, allowance for doubtful accounts | $2,722 | $2,990 |
Property, plant and equipment, accumulated depreciation | 628,127 | 597,989 |
Intangibles, accumulated amortization | $13,963 | $14,139 |
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ' | ' |
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 [Member] | ' | ' |
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ' | ' |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, par value | $1 | $1 |
Common stock, shares issued | 26,324,000 | 26,171,000 |
Common stock, shares outstanding | 26,324,000 | 26,171,000 |
Class B Common Stock [Member] | ' | ' |
Schnitzer Steel Industries, Inc. (bSSIb) shareholdersb equity: | ' | ' |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, par value | $1 | $1 |
Common stock, shares issued | 306,000 | 393,000 |
Common stock, shares outstanding | 306,000 | 393,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Revenues | $626,147 | $662,210 | $1,213,891 | $1,255,030 |
Operating expense: | ' | ' | ' | ' |
Cost of goods sold | 571,140 | 600,786 | 1,113,558 | 1,142,670 |
Selling, general and administrative | 45,856 | 48,760 | 93,406 | 96,754 |
Income from joint ventures | -367 | -266 | -777 | -131 |
Other asset impairment charges | 928 | 0 | 928 | 0 |
Restructuring charges and other exit-related costs | 2,006 | 1,540 | 3,819 | 3,133 |
Operating income | 6,584 | 11,390 | 2,957 | 12,604 |
Interest expense | -2,816 | -2,354 | -5,517 | -4,371 |
Other income (expense), net | -142 | -49 | 33 | 271 |
Income (loss) before income taxes | 3,626 | 8,987 | -2,527 | 8,504 |
Income tax expense | -986 | -244 | -201 | -1,205 |
Net income (loss) | 2,640 | 8,743 | -2,728 | 7,299 |
Net income attributable to noncontrolling interests | -851 | -100 | -1,712 | -329 |
Net income (loss) attributable to SSI | $1,789 | $8,643 | ($4,440) | $6,970 |
Net income (loss) per share attributable to SSI: | ' | ' | ' | ' |
Basic | $0.07 | $0.32 | ($0.17) | $0.26 |
Diluted | $0.07 | $0.32 | ($0.17) | $0.26 |
Weighted average number of common shares: | ' | ' | ' | ' |
Basic | 26,825 | 26,640 | 26,790 | 26,597 |
Diluted | 26,947 | 26,781 | 26,790 | 26,751 |
Dividends declared per common share | $0.19 | $0.19 | $0.38 | $0.38 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | ||||
Net income (loss) | $2,640 | $8,743 | ($2,728) | $7,299 | ||||
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | -5,688 | [1] | -5,518 | [1] | -6,579 | [1] | -6,777 | [1] |
Cash flow hedges, net | -229 | [2] | 5 | [2] | -108 | [2] | 22 | [2] |
Pension obligations, net | 45 | [3] | 151 | [3] | 89 | [3] | 526 | [3] |
Total other comprehensive loss, net of tax | -5,872 | -5,362 | -6,598 | -6,229 | ||||
Comprehensive income (loss) | -3,232 | 3,381 | -9,326 | 1,070 | ||||
Less amounts attributable to noncontrolling interests: | ' | ' | ' | ' | ||||
Net income attributable to noncontrolling interests | -851 | -100 | -1,712 | -329 | ||||
Foreign currency translation adjustment attributable to redeemable noncontrolling interest | 0 | -886 | 0 | -1,059 | ||||
Total amounts attributable to noncontrolling interests | -851 | -986 | -1,712 | -1,388 | ||||
Comprehensive income (loss) attributable to SSI | ($4,083) | $2,395 | ($11,038) | ($318) | ||||
[1] | Net of tax benefit of zero, $(353) thousand, zero and $(444) thousand for each respective period. | |||||||
[2] | Net of tax expense (benefit) of $(76) thousand, $1 thousand, $(99) thousand and $24 thousand for each respective period. | |||||||
[3] | Net of tax expense of $26 thousand, $87 thousand, $51 thousand and $303 thousand for each respective period. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Foreign currency translation adjustments, tax benefit | $0 | ($353) | $0 | ($444) |
Cash flow hedges, tax expense (benefit) | -76 | 1 | -99 | 24 |
Pension obligations, tax expense | $26 | $87 | $51 | $303 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($2,728) | $7,299 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ' | ' |
Other asset impairment charges | 928 | 0 |
Exit-related asset impairment charges | 566 | 0 |
Depreciation and amortization | 41,047 | 41,573 |
Deferred income taxes | 1,803 | 2,919 |
Undistributed equity in earnings of joint ventures | -777 | -349 |
Share-based compensation expense | 7,180 | 7,156 |
Excess tax benefit from share-based payment arrangements | -54 | 0 |
(Gain) loss on disposal of assets | -66 | 188 |
Unrealized foreign exchange loss, net | 808 | 469 |
Bad debt expense (recoveries), net | 400 | -572 |
Changes in assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable | 5,342 | -32,168 |
Inventories | -7,581 | -45,736 |
Income taxes | -3,284 | 825 |
Prepaid expenses and other current assets | 1,464 | -11,312 |
Intangibles and other long-term assets | 273 | 378 |
Accounts payable | 1,758 | -10,595 |
Accrued payroll and related liabilities | -1,771 | 511 |
Other accrued liabilities | -115 | -5,366 |
Environmental liabilities | -337 | 21 |
Other long-term liabilities | -198 | -315 |
Distributed equity in earnings of joint ventures | 1,040 | 1,279 |
Net cash provided by (used in) operating activities | 45,698 | -43,795 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -21,064 | -47,823 |
Joint venture payments, net | -1,468 | -510 |
Proceeds from sale of assets | 635 | 711 |
Acquisitions, net of cash acquired | -2,160 | -22,667 |
Net cash used in investing activities | -24,057 | -70,289 |
Cash flows from financing activities: | ' | ' |
Proceeds from line of credit | 257,500 | 315,000 |
Repayment of line of credit | -266,000 | -315,000 |
Borrowings from long-term debt | 185,027 | 158,324 |
Repayment of long-term debt | -180,477 | -94,987 |
Taxes paid related to net share settlement of share-based payment arrangements | -676 | -1,161 |
Excess tax benefit from share-based payment arrangements | 54 | 0 |
Stock options exercised | 240 | 300 |
Contributions from noncontrolling interest | 0 | 1,970 |
Distributions to noncontrolling interest | -1,072 | -1,002 |
Dividends paid | -9,983 | -4,952 |
Net cash (used in) provided by financing activities | -15,387 | 58,492 |
Effect of exchange rate changes on cash | 668 | 269 |
Net increase (decrease) in cash and cash equivalents | 6,922 | -55,323 |
Cash and cash equivalents as of beginning of period | 13,481 | 89,863 |
Cash and cash equivalents as of end of period | $20,403 | $34,540 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||||||
The accompanying Unaudited Condensed Consolidated Financial Statements of Schnitzer Steel Industries, Inc. (the “Company”) have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10-Q, including Article 10 of Regulation S-X. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. In the opinion of management, all normal, recurring adjustments considered necessary for a fair statement have been included. Management suggests that these Unaudited Condensed Consolidated Financial Statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2013. The results for the three and six months ended February 28, 2014 and 2013 are not necessarily indicative of the results of operations for the entire year. | ||||||||||||||||||||||||
Revision of Previously Issued Financial Statements | ||||||||||||||||||||||||
In the first quarter of fiscal 2014, an error was identified in the classification of the cash outflow of $24.7 million for the purchase of a noncontrolling interest in a subsidiary as a use of cash in investing activities that, under generally accepted accounting principles, should have been reflected as a use of cash in financing activities in the Company’s consolidated statements of cash flows included in the previously reported financial statements for the nine months ended May 31, 2013 included in the Quarterly Report on Form 10-Q and for the year ended August 31, 2013 included in the 2013 Annual Report on Form 10-K. | ||||||||||||||||||||||||
The Company assessed the materiality of this classification error under the guidance in ASC 250-10 relating to SEC’s Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and concluded that the previously issued financial statements for the nine months ended May 31, 2013 and the year ended August 31, 2013 were not materially misstated. The Company also evaluated the impact of correcting the error through an adjustment to its financial statements and concluded, based on the guidance within ASC 250-10 relating to SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, to revise its previously issued financial statements to reflect the impact of the correction of the classification error. The consolidated statements of cash flows for the year ended August 31, 2013 and for the nine months ended May 31, 2013 will be revised in the Company’s 2014 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of fiscal 2014, respectively, to correct the classification error. | ||||||||||||||||||||||||
The revision had no impact on the Company’s consolidated balance sheets, consolidated results of operations, earnings (loss) per share and net cash provided by operating activities in the consolidated statements of cash flows. | ||||||||||||||||||||||||
The effect of the revision on the line items within the Company’s consolidated statement of cash flows for the nine months ended May 31, 2013 and the year ended August 31, 2013 is as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended May 31, 2013 | Year Ended August 31, 2013 | |||||||||||||||||||||||
As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||||
Investing Activities | ||||||||||||||||||||||||
Purchase of noncontrolling interest | $ | (24,734 | ) | $ | 24,734 | $ | — | $ | (24,734 | ) | $ | 24,734 | $ | — | ||||||||||
Net cash used in investing activities | (115,089 | ) | 24,734 | (90,355 | ) | (137,184 | ) | 24,734 | (112,450 | ) | ||||||||||||||
Financing Activities | ||||||||||||||||||||||||
Purchase of noncontrolling interest | — | (24,734 | ) | (24,734 | ) | — | (24,734 | ) | (24,734 | ) | ||||||||||||||
Net cash provided by (used in) financing | 60,023 | (24,734 | ) | 35,289 | 20,587 | (24,734 | ) | (4,147 | ) | |||||||||||||||
activities | ||||||||||||||||||||||||
Accounting Changes | ||||||||||||||||||||||||
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 Company adopted the new requirement in the first quarter of fiscal 2014 with no impact to the Company’s Unaudited Condensed Consolidated Financial Statements, except for the change in presentation. The Company has chosen to present amounts reclassified out of accumulated other comprehensive income in the notes to the financial statements. See Note 10 - Accumulated Other Comprehensive Loss for further detail. | ||||||||||||||||||||||||
During the first quarter of fiscal 2014, the Company elected to change its annual goodwill impairment testing date from February 28 to July 1 of each year. See Note 4 - Goodwill for further detail. | ||||||||||||||||||||||||
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 as of February 28, 2014 and August 31, 2013. | ||||||||||||||||||||||||
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 Condensed Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. Other assets are reported net of an allowance for credit losses on notes and other contractual receivables of $8 million as of February 28, 2014 and August 31, 2013. | ||||||||||||||||||||||||
As of February 28, 2014 and August 31, 2013, the Company reported $4 million and $3 million of assets held for sale within prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. During the second quarter of fiscal 2014, the Company recorded impairment charges for the initial and subsequent write-down of certain equipment held for sale to its fair value less cost to sell of $1 million, which are reported within other asset impairment charges in the Condensed Consolidated Statements of Operations. The Company determined 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. See Note 11 - Fair Value Measurements for further detail. | ||||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||
The Company records derivative instruments in prepaid expenses and other current assets or other accrued liabilities in the Condensed Consolidated Balance Sheets at fair value, and changes in the fair value are either recognized in other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income (Loss) or net income (loss) in the Condensed 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, in the period that the hedged transaction is deemed no longer likely to occur, or in the period the derivative is terminated. 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. Cash flows from derivatives are recognized in the Condensed Consolidated Statements of Cash Flows in a manner consistent with the underlying transactions. See Note 11 - Fair Value Measurements and Note 12 - Derivative Financial Instruments for further detail. | ||||||||||||||||||||||||
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, notes and other contractual receivables and derivative financial instruments. The majority of cash and cash equivalents are maintained with two major financial institutions (Bank of America and Wells Fargo Bank, N.A.). Balances in these institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of February 28, 2014. 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, cash deposits 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 $64 million and $94 million of open letters of credit relating to accounts receivable as of February 28, 2014 and August 31, 2013, respectively. The counterparties to the Company's derivative financial instruments are major financial institutions. | ||||||||||||||||||||||||
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. Derivative contracts are reported at fair value. See Note 11 - Fair Value Measurements and Note 12 - Derivative Financial Instruments for further detail. | ||||||||||||||||||||||||
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 within 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 the 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 11 - Fair Value Measurements for further detail. | ||||||||||||||||||||||||
Restructuring Charges | ||||||||||||||||||||||||
Restructuring charges consist of severance, contract termination and other restructuring-related 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 restructuring costs is measured at its fair value in the period in which the liability is incurred. See Note 7 - Restructuring Charges and Other Exit-Related Costs for further detail. | ||||||||||||||||||||||||
Employee Benefits | ||||||||||||||||||||||||
Prior to October 1, 2013, the Steelworkers Western Independent Shops Pension Plan (“WISPP”), a multiemployer plan benefiting union employees of the Steel Manufacturing Business, had an accumulated funding deficiency (i.e., a failure to satisfy the minimum funding requirements) and was certified in a Red Zone Status, as defined by the Pension Protection Act of 2006. As of October 1, 2013, the WISPP was no longer in Red Zone Status, having been certified by the plan’s actuaries as being in the Green Zone. |
Inventories_net
Inventories, net | 6 Months Ended | |||||||
Feb. 28, 2014 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventories, net | ' | |||||||
Inventories, net | ||||||||
Inventories, net consisted of the following (in thousands): | ||||||||
February 28, 2014 | August 31, 2013 | |||||||
Processed and unprocessed scrap metal | $ | 139,729 | $ | 132,485 | ||||
Semi-finished goods (billets) | 13,185 | 10,745 | ||||||
Finished goods | 62,341 | 56,830 | ||||||
Supplies | 37,594 | 35,989 | ||||||
Inventories, net | $ | 252,849 | $ | 236,049 | ||||
Business_Combinations
Business Combinations | 6 Months Ended |
Feb. 28, 2014 | |
Business Combinations [Abstract] | ' |
Business Combinations | ' |
Business Combinations | |
In November 2013, the Company acquired all of the equity interests of Pick A Part, Inc., a used auto parts business with one store in the Olympia metropolitan area in Washington, which expanded the Auto Parts Business’ presence in the Pacific Northwest and is near the Metals Recycling Business’ operations in Tacoma, Washington. The acquisition was not material to the Company’s financial position or results of operations. Pro forma operating results for the acquisition are not presented, since the aggregate results would not be significantly different than reported results. |
Goodwill
Goodwill | 6 Months Ended | |||||||||||
Feb. 28, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill | ' | |||||||||||
Goodwill | ||||||||||||
During the first quarter of fiscal 2014, the Company changed its annual goodwill impairment testing date from February 28 to July 1 of each year. The Company believes this new testing date is preferable because it allows the Company to better align the annual goodwill impairment testing procedures with the Company’s year-end financial reporting as well as its annual budgeting cycle and allows the Company visibility into fourth quarter operating results which are typically significant to its annual performance. The Company most recently performed an assessment of the goodwill in each of its reporting units during the fourth quarter of fiscal 2013. This change in accounting principle did not delay, accelerate or cause the Company to avoid an impairment charge. As a result of this change, the Company will complete its next annual goodwill impairment test during the fourth quarter of fiscal 2014. | ||||||||||||
There were no triggering events identified during the first or second quarters of fiscal 2014 requiring an interim goodwill impairment test of our reporting units. Additional sustained 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 sustained decline in the Company’s share price from current levels, or an increase in the market-based weighted-average cost of capital, among other factors, could significantly impact the impairment analysis and may result in future 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 six months ended February 28, 2014 were as follows (in thousands): | ||||||||||||
Metals Recycling Business | Auto Parts Business | Total | ||||||||||
Balance as of August 31, 2013 | $ | 147,213 | $ | 180,051 | $ | 327,264 | ||||||
Acquisitions | — | 586 | 586 | |||||||||
Acquisition accounting adjustments | — | (51 | ) | (51 | ) | |||||||
Foreign currency translation adjustment | (1,730 | ) | (1,238 | ) | (2,968 | ) | ||||||
Balance as of February 28, 2014 | $ | 145,483 | $ | 179,348 | $ | 324,831 | ||||||
Accumulated goodwill impairment charges were $321 million as of February 28, 2014 and August 31, 2013. |
ShortTerm_Borrowings_Notes
Short-Term Borrowings (Notes) | 6 Months Ended |
Feb. 28, 2014 | |
Short-term Debt [Abstract] | ' |
Short-term Debt [Text Block] | ' |
Short-Term Borrowings | |
The Company has an unsecured, uncommitted $25 million credit line with Wells Fargo Bank, N.A. As of March 1, 2014, the term of this credit facility was renewed and extended to March 1, 2015. Interest rates are set by the bank at the time of borrowing. The Company had zero and $9 million in borrowings outstanding under this credit line as of February 28, 2014 and August 31, 2013. 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 ratio and a maximum leverage ratio. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||||||
The Company evaluates the adequacy of its environmental liabilities on a quarterly basis. Adjustments to the liabilities are made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or expenditures are made for which liabilities were established. | |||||||||||||||||||||||||
Changes in the Company’s environmental liabilities for the six months ended February 28, 2014 were as follows (in thousands): | |||||||||||||||||||||||||
Reporting Segment | Balance as of August 31, 2013 | Liabilities Established (Released), Net | Payments and Other | Balance as of February 28, 2014 | Short-Term | Long-Term | |||||||||||||||||||
Metals Recycling Business | $ | 30,520 | $ | (312 | ) | $ | (231 | ) | $ | 29,977 | $ | 345 | $ | 29,632 | |||||||||||
Auto Parts Business | 18,774 | 373 | (120 | ) | 19,027 | 556 | 18,471 | ||||||||||||||||||
Corporate | 500 | — | (5 | ) | 495 | 195 | 300 | ||||||||||||||||||
Total | $ | 49,794 | $ | 61 | $ | (356 | ) | $ | 49,499 | $ | 1,096 | $ | 48,403 | ||||||||||||
Metals Recycling Business (“MRB”) | |||||||||||||||||||||||||
As of February 28, 2014, MRB had environmental liabilities of $30 million for the potential remediation of locations where it has conducted business and 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 2016. Responsibility for implementing and funding the 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 February 28, 2014, the Company had environmental liabilities related to various MRB sites other than Portland Harbor of $29 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 (“APB”) | |||||||||||||||||||||||||
As of February 28, 2014, 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”) | |||||||||||||||||||||||||
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 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 on 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 February 28, 2014. | |||||||||||||||||||||||||
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 Unaudited Condensed 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_and_Othe
Restructuring Charges and Other Exit-Related Costs | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||||||||||||||||||
Restructuring Costs and Asset Impairment Charges [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Restructuring Charges and Other Exit-Related Costs | ' | |||||||||||||||||||||||||||||||||||||||
Restructuring Charges and Other Exit-Related Costs | ||||||||||||||||||||||||||||||||||||||||
In the fourth quarter of fiscal 2012, the Company announced and 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, realign the Company’s organization to support its future growth and decrease operating expenses by streamlining functions and reducing organizational layers. These initiatives were substantially completed by the end of fiscal 2013. | ||||||||||||||||||||||||||||||||||||||||
In the first quarter of fiscal 2014, the Company announced and began implementing additional restructuring initiatives to further reduce its annual operating expenses through headcount reductions, productivity improvements, procurement savings and other operational efficiencies. The Company expects to incur restructuring charges of $5 million in connection with these initiatives, with substantially all of the charges expected to be incurred by the end of fiscal 2014. The vast majority of the restructuring charges will require the Company to make cash payments. | ||||||||||||||||||||||||||||||||||||||||
In addition to the restructuring charges recorded in connection with these initiatives, the Company incurred other exit-related costs consisting of asset impairments related to site closures. | ||||||||||||||||||||||||||||||||||||||||
Restructuring charges and other exit-related costs were comprised of the following (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended February 28, 2014 | Three Months Ended February 28, 2013 | |||||||||||||||||||||||||||||||||||||||
Q4’12 Plan | Q1’14 Plan | Total Charges | Q4’12 Plan | Q1’14 Plan | Total Charges | |||||||||||||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||||||||||||||||||
Severance costs | $ | (39 | ) | $ | 1,182 | $ | 1,143 | $ | 116 | $ | — | $ | 116 | |||||||||||||||||||||||||||
Contract termination costs | 106 | (9 | ) | 97 | 19 | — | 19 | |||||||||||||||||||||||||||||||||
Other restructuring costs | — | 200 | 200 | 1,405 | — | 1,405 | ||||||||||||||||||||||||||||||||||
Total restructuring charges | 67 | 1,373 | 1,440 | 1,540 | — | 1,540 | ||||||||||||||||||||||||||||||||||
Other exit-related costs: | ||||||||||||||||||||||||||||||||||||||||
Asset impairments | $ | — | $ | 566 | $ | 566 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
Total exit-related costs | — | 566 | 566 | — | — | — | ||||||||||||||||||||||||||||||||||
Total restructuring charges and exit-related costs | $ | 67 | $ | 1,939 | $ | 2,006 | $ | 1,540 | $ | — | $ | 1,540 | ||||||||||||||||||||||||||||
Six Months Ended February 28, 2014 | Six Months Ended February 28, 2013 | |||||||||||||||||||||||||||||||||||||||
Q4’12 Plan | Q1’14 Plan | Total Charges | Q4’12 Plan | Q1’14 Plan | Total Charges | |||||||||||||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||||||||||||||||||
Severance costs | $ | (13 | ) | $ | 2,259 | $ | 2,246 | $ | 1,055 | $ | — | $ | 1,055 | |||||||||||||||||||||||||||
Contract termination costs | 568 | 29 | 597 | 24 | — | 24 | ||||||||||||||||||||||||||||||||||
Other restructuring costs | — | 410 | 410 | 2,054 | — | 2,054 | ||||||||||||||||||||||||||||||||||
Total restructuring charges | 555 | 2,698 | 3,253 | 3,133 | — | 3,133 | ||||||||||||||||||||||||||||||||||
Other exit-related costs: | ||||||||||||||||||||||||||||||||||||||||
Asset impairments | $ | — | $ | 566 | $ | 566 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
Total exit-related costs | — | 566 | 566 | — | — | — | ||||||||||||||||||||||||||||||||||
Total restructuring charges and exit-related costs | $ | 555 | $ | 3,264 | $ | 3,819 | $ | 3,133 | $ | — | $ | 3,133 | ||||||||||||||||||||||||||||
Total Charges | ||||||||||||||||||||||||||||||||||||||||
Q4’12 Plan | Q1’14 Plan | Total | ||||||||||||||||||||||||||||||||||||||
Total restructuring charges to date | $ | 13,473 | $ | 2,698 | $ | 16,171 | ||||||||||||||||||||||||||||||||||
Total expected restructuring charges | $ | 13,500 | $ | 5,200 | $ | 18,700 | ||||||||||||||||||||||||||||||||||
The following illustrates the reconciliation of the restructuring liability by major type of costs for the six months ended February 28, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Q4’12 Plan | Q1’14 Plan | Total Charges to Date | Total Expected Charges | |||||||||||||||||||||||||||||||||||||
Balance 8/31/2013 | Charges | Payments and Other | Balance 2/28/2014 | Balance 8/31/2013 | Charges | Payments and Other | Balance 2/28/2014 | |||||||||||||||||||||||||||||||||
Severance costs | $ | 278 | $ | (13 | ) | $ | (227 | ) | $ | 38 | $ | — | $ | 2,259 | $ | (1,300 | ) | $ | 959 | $ | 7,430 | $ | 9,600 | |||||||||||||||||
Contract termination costs | 3,027 | 568 | (1,835 | ) | 1,760 | — | 29 | (6 | ) | 23 | 4,266 | 4,600 | ||||||||||||||||||||||||||||
Other restructuring costs | — | — | — | — | — | 410 | (410 | ) | — | 4,475 | 4,500 | |||||||||||||||||||||||||||||
Total | $ | 3,305 | $ | 555 | $ | (2,062 | ) | $ | 1,798 | $ | — | $ | 2,698 | $ | (1,716 | ) | $ | 982 | $ | 16,171 | $ | 18,700 | ||||||||||||||||||
The amounts of restructuring charges and other exit-related costs relating to each segment were as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | Total Charges | Total Expected Charges | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | to Date | ||||||||||||||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||||||||||||||||||
Metals Recycling Business | $ | 860 | $ | 60 | $ | 2,152 | $ | 610 | $ | 6,560 | $ | 8,100 | ||||||||||||||||||||||||||||
Auto Parts Business | 435 | 24 | 496 | 211 | 968 | 1,500 | ||||||||||||||||||||||||||||||||||
Unallocated (Corporate) | 145 | 1,456 | 605 | 2,312 | 8,643 | 9,100 | ||||||||||||||||||||||||||||||||||
Total restructuring charges | 1,440 | 1,540 | 3,253 | 3,133 | 16,171 | 18,700 | ||||||||||||||||||||||||||||||||||
Other exit-related costs: | ||||||||||||||||||||||||||||||||||||||||
Metals Recycling Business | 566 | — | 566 | — | 566 | |||||||||||||||||||||||||||||||||||
Total exit-related costs | 566 | — | 566 | — | 566 | |||||||||||||||||||||||||||||||||||
Total restructuring charges and other exit-related costs | 2,006 | 1,540 | 3,819 | 3,133 | 16,737 | |||||||||||||||||||||||||||||||||||
The Company does not allocate restructuring charges and other exit-related costs to the segments’ operating results because management does not include this information in its measurement of the performance of the operating segments. |
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interest | 6 Months Ended | |||
Feb. 28, 2014 | ||||
Temporary Equity [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 assets of a Canadian business. 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 had the right to require the Company to purchase its interest in the Company’s acquisition subsidiary for fair value upon the occurrence of certain triggering events. | ||||
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. Prior to its purchase, 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. | ||||
Following is a reconciliation of the changes in the redeemable noncontrolling interest for the six months ended February 28, 2013 (in thousands): | ||||
Fiscal 2013 | ||||
Balances - September 1 (Beginning of period) | $ | 22,248 | ||
Net loss attributable to noncontrolling interest | (903 | ) | ||
Currency translation adjustment | (1,059 | ) | ||
Capital contributions from noncontrolling interest holder | 1,970 | |||
Adjustment to fair value | 2,504 | |||
Balances - February 28 (End of period) | $ | 24,760 | ||
Changes_in_Equity
Changes in Equity | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Changes in Equity | ' | |||||||||||||||||||||||
Changes in Equity | ||||||||||||||||||||||||
The following is a summary of the changes in equity for the six months ended February 28, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||
Fiscal 2014 | Fiscal 2013 | |||||||||||||||||||||||
SSI Shareholders’ | Noncontrolling | Total | SSI Shareholders’ | Noncontrolling | Total | |||||||||||||||||||
Equity | Interests | Equity | Equity | Interests | Equity | |||||||||||||||||||
Balances - September 1 (Beginning of period) | $ | 776,558 | $ | 4,641 | $ | 781,199 | $ | 1,080,583 | $ | 5,113 | $ | 1,085,696 | ||||||||||||
Net income (loss) (1) | (4,440 | ) | 1,712 | (2,728 | ) | 6,970 | 1,232 | 8,202 | ||||||||||||||||
Other comprehensive loss, net of tax(2) | (6,598 | ) | — | (6,598 | ) | (7,288 | ) | — | (7,288 | ) | ||||||||||||||
Distributions to noncontrolling interests | — | (1,072 | ) | (1,072 | ) | — | (1,002 | ) | (1,002 | ) | ||||||||||||||
Restricted stock withheld for taxes | (676 | ) | — | (676 | ) | (1,161 | ) | — | (1,161 | ) | ||||||||||||||
Stock options exercised | 240 | — | 240 | 300 | — | 300 | ||||||||||||||||||
Share-based compensation | 7,180 | — | 7,180 | 7,156 | — | 7,156 | ||||||||||||||||||
Excess tax deficiency from stock options exercised and restricted stock units vested | (674 | ) | — | (674 | ) | (852 | ) | — | (852 | ) | ||||||||||||||
Adjustments to fair value of redeemable noncontrolling interest | — | — | — | (2,504 | ) | — | (2,504 | ) | ||||||||||||||||
Cash dividends | (10,094 | ) | — | (10,094 | ) | (9,915 | ) | — | (9,915 | ) | ||||||||||||||
Balances - February 28 (End of period) | $ | 761,496 | $ | 5,281 | $ | 766,777 | $ | 1,073,289 | $ | 5,343 | $ | 1,078,632 | ||||||||||||
_____________________________ | ||||||||||||||||||||||||
-1 | Net income attributable to noncontrolling interests for the six months ended February 28, 2013 excludes net losses of $(903) thousand allocable to the redeemable noncontrolling interest. See Note 8 - Redeemable Noncontrolling Interest. | |||||||||||||||||||||||
-2 | Other comprehensive loss, net of tax for the six months ended February 28, 2013 excludes $(1) million relating to foreign currency translation adjustments for the redeemable noncontrolling interest. See Note 8 - Redeemable Noncontrolling Interest. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
Changes in accumulated other comprehensive loss, net of tax, for the three months ended February 28, 2014 were as follows: | ||||||||||||||||
Foreign Currency Translation Adjustments | Pension Obligations, net | Net Unrealized Gain/(Loss) on Cash Flow Hedges | Total | |||||||||||||
Balance as of November 30, 2013 | $ | (7,314 | ) | $ | (2,773 | ) | $ | — | $ | (10,087 | ) | |||||
Other comprehensive loss before reclassifications | (5,688 | ) | — | (305 | ) | (5,993 | ) | |||||||||
Income tax benefit | — | — | 76 | 76 | ||||||||||||
Other comprehensive loss before reclassifications, net of tax | (5,688 | ) | — | (229 | ) | (5,917 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 71 | — | 71 | ||||||||||||
Income tax expense | — | (26 | ) | — | (26 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | — | 45 | — | 45 | ||||||||||||
Net periodic other comprehensive income (loss) | (5,688 | ) | 45 | (229 | ) | (5,872 | ) | |||||||||
Balance as of February 28, 2014 | $ | (13,002 | ) | $ | (2,728 | ) | $ | (229 | ) | $ | (15,959 | ) | ||||
Changes in accumulated other comprehensive loss, net of tax, for the six months ended February 28, 2014 were as follows: | ||||||||||||||||
Foreign Currency Translation Adjustments | Pension Obligations, net | Net Unrealized Gain/(Loss) on Cash Flow Hedges | Total | |||||||||||||
Balance as of August 31, 2013 | $ | (6,423 | ) | $ | (2,817 | ) | $ | (121 | ) | $ | (9,361 | ) | ||||
Other comprehensive loss before reclassifications | (6,579 | ) | — | (305 | ) | (6,884 | ) | |||||||||
Income tax benefit | — | — | 76 | 76 | ||||||||||||
Other comprehensive loss before reclassifications, net of tax | (6,579 | ) | — | (229 | ) | (6,808 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 140 | 98 | 238 | ||||||||||||
Income tax (expense) benefit | — | (51 | ) | 23 | (28 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | — | 89 | 121 | 210 | ||||||||||||
Net periodic other comprehensive income (loss) | (6,579 | ) | 89 | (108 | ) | (6,598 | ) | |||||||||
Balance as of February 28, 2014 | $ | (13,002 | ) | $ | (2,728 | ) | $ | (229 | ) | $ | (15,959 | ) | ||||
Reclassifications from accumulated other comprehensive loss, both individually and in the aggregate, were immaterial to the Unaudited Condensed Consolidated Statements of Operations. |
Fair_Value_Measurements_Notes
Fair Value Measurements (Notes) | 6 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
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 February 28, 2014 and August 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized by the Company and the type of measurement. | ||||||||||||||
(in thousands) | Assets (Liabilities) at Fair Value | Fair Value Measurement Level | Type of Measurement | Balance Sheet Classification | ||||||||||
February 28, 2014 | August 31, 2013 | |||||||||||||
Assets: | ||||||||||||||
Assets held for sale | $ | 657 | $ | 2,902 | Level 3 | Non-recurring | Prepaid expenses and other current assets | |||||||
Impaired long-lived assets | 1,000 | — | Level 3 | Non-recurring | Property, plant and equipment, net | |||||||||
Investment in joint venture partnership | — | 3,261 | Level 3 | Non-recurring | Investments in joint venture partnerships | |||||||||
Total assets | $ | 1,657 | $ | 6,163 | ||||||||||
Liabilities: | ||||||||||||||
Contract termination costs | $ | — | $ | (1,672 | ) | Level 3 | Non-recurring | Other accrued liabilities and Other long-term liabilities | ||||||
Foreign currency exchange forward contracts | (316 | ) | — | Level 2 | Recurring | Other accrued liabilities | ||||||||
Total liabilities | $ | (316 | ) | $ | (1,672 | ) |
Derivative_Financial_Instrumen
Derivative Financial Instruments (Notes) | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||||||||
Derivative Financial Instruments | ||||||||||||||||
In the second quarter of fiscal 2014, the Company entered into a series of foreign currency exchange forward contracts to sell U.S. Dollars in order to hedge a portion of its exposure to fluctuating rates of exchange on anticipated U.S. Dollar-denominated sales by its Canadian subsidiary with a functional currency of the Canadian Dollar. The Company utilized intercompany foreign currency derivatives and offsetting derivatives with external counterparties in order to designate the intercompany derivatives as hedging instruments. As of February 28, 2014, the Company had six individual foreign currency exchange forward contracts with external counterparties for a total notional amount of $41 million, which have various settlement dates through September 30, 2014. The contracts with external counterparties are reported at fair value in the Condensed Consolidated Balance Sheets measured using quoted foreign currency exchange rates. See Note 11 - Fair Value Measurements for further detail. | ||||||||||||||||
The fair value of derivative instruments in the Condensed Consolidated Balance Sheets are as follows (in thousands): | ||||||||||||||||
Asset (Liability) Derivatives | ||||||||||||||||
Fair Value | ||||||||||||||||
Balance Sheet Location | 28-Feb-14 | 31-Aug-13 | ||||||||||||||
Foreign currency exchange forward contracts | Other accrued liabilities | $ | (316 | ) | $ | — | ||||||||||
The following table summarizes the results of cash flow hedging relationships for the three and six months ended February 28 (in thousands): | ||||||||||||||||
Derivative Gain (Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax | ||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign currency exchange forward contracts | $ | (229 | ) | $ | — | $ | (229 | ) | $ | — | ||||||
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended |
Feb. 28, 2014 | |
Share-based Compensation [Abstract] | ' |
Share-based Compensation | ' |
Share-Based Compensation | |
In the first quarter of fiscal 2014, as part of the annual awards under the Company’s Long-Term Incentive Plan, the Compensation Committee of the Company's Board of Directors granted 219,504 restricted stock units (“RSU”) and 219,504 performance share awards to the Company's key employees and officers under the Company’s 1993 Stock Incentive Plan, as amended. | |
The RSUs have a five-year term and vest 20% per year commencing October 31, 2014. The fair value of the RSUs granted is based on the market closing price of the underlying Class A common stock on the date of grant and totaled $7 million. The compensation expense associated with the RSUs is recognized over the requisite service period of the awards, net of forfeitures. | |
The performance-based awards have a two-year performance period consisting of the Company’s fiscal 2014 and fiscal 2015. The performance targets are based on divisional volume metrics (weighted at 50%) and divisional operating income metrics (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. Awards will be paid in Class A common stock as soon as practicable after October 31 following the end of the performance period. The estimated fair value of the performance-based awards at the date of grant was $7 million. | |
In the second quarter of fiscal 2014, the Company granted a deferred stock unit ("DSU") award to each of its non-employee directors under the Company's 1993 Stock Incentive Plan. John Carter, the Company's Chairman, and Tamara Lundgren, President and Chief Executive Officer, receive compensation pursuant to their employment agreements and do not receive DSUs. One DSU gives the director the right to receive one share of Class A common stock at a future date. The grant included a total of 30,848 shares that will vest on the day before the Company's 2015 annual meeting, subject to continued Board service. The total value of these awards is not material. |
Income_Taxes
Income Taxes | 6 Months Ended | |||||||||||
Feb. 28, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The effective tax rate for the Company’s operations for the three and six months ended February 28, 2014 was an expense of 27.2% and 8.0%, respectively, compared to 2.7% and 14.2%, respectively, for the three and six months ended February 28, 2013. | ||||||||||||
A reconciliation of the difference between the federal statutory rate and the Company’s effective rate is as follows: | ||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||
2014 | 2013 | 2014(1) | 2013 | |||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||
State taxes, net of credits | 0.5 | (0.5 | ) | 5.5 | (1.0 | ) | ||||||
Foreign income taxed at different rates | 1.7 | 0.6 | (18.2 | ) | 0.7 | |||||||
Section 199 deduction | (1.9 | ) | (11.9 | ) | 0.3 | (12.9 | ) | |||||
Non-deductible officers’ compensation | 0.7 | 0.5 | (0.3 | ) | 0.6 | |||||||
Noncontrolling interests | (2.3 | ) | (2.2 | ) | 1.1 | (5.1 | ) | |||||
Research and development credits | (0.3 | ) | (2.2 | ) | 0.3 | (3.6 | ) | |||||
Valuation allowance on deferred tax assets | (8.5 | ) | (16.8 | ) | (29.3 | ) | — | |||||
Unrecognized tax benefits | 1.4 | — | (2.0 | ) | — | |||||||
Other | 0.9 | 0.2 | (0.4 | ) | 0.5 | |||||||
Effective tax rate | 27.2 | % | 2.7 | % | (8.0 | )% | 14.2 | % | ||||
_____________________________ | ||||||||||||
-1 | For periods with reported pre-tax losses, the effect of reconciling items with positive (negative) signs is tax benefit in excess of (less than) the benefit calculated by applying the federal statutory rate to the pre-tax loss. | |||||||||||
The effective tax rate for the first six months of fiscal 2014 was impacted primarily by the recognition of a full valuation allowance on the current period benefit associated with foreign operations losses and the impact of the lower financial performance of foreign operations, which are taxed at more favorable rates. The effective tax rate for the second quarter of fiscal 2014 benefited primarily from the partial realization of previously reserved tax benefits in the foreign jurisdiction as a result of taxable income generated during the period. | ||||||||||||
The effective tax rate for the second quarter and first six months of fiscal 2013 benefited from increased domestic production activities deductions and research and development credits of $1 million. The effective tax rate for the second quarter of fiscal 2013 also benefited from the release of a valuation allowance on deferred tax assets of a foreign subsidiary of $2 million due to a change in the Company's facts and circumstances with respect to the feasibility of implementing a change in its foreign subsidiaries' operating structure which allowed the Company to rely on future forecasted taxable income and conclude that, at that time, it was more likely than not that the associated tax benefit would be realized. The valuation allowance had been recognized in the first quarter of fiscal 2013 as a result of an assessment indicating that, at that time, it was more likely than not that the associated tax benefit would not be realized. | ||||||||||||
The Company will continue to regularly assess the realizability of deferred tax assets. Changes in historical earnings performance and future earnings projections, among other factors, may cause the Company to adjust its valuation allowance on deferred tax assets, which would impact its results of operations in the period it determines that these factors have changed. | ||||||||||||
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. The Canadian and several state tax authorities are currently examining returns for fiscal years 2005 to 2012. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | ||||||||||||||||
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 (in thousands): | ||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) | $ | 2,640 | $ | 8,743 | $ | (2,728 | ) | $ | 7,299 | |||||||
Net income attributable to noncontrolling interests | (851 | ) | (100 | ) | (1,712 | ) | (329 | ) | ||||||||
Net income (loss) attributable to SSI | $ | 1,789 | $ | 8,643 | $ | (4,440 | ) | $ | 6,970 | |||||||
Computation of shares: | ||||||||||||||||
Weighted average common shares outstanding, basic | 26,825 | 26,640 | 26,790 | 26,597 | ||||||||||||
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs | 122 | 141 | — | 154 | ||||||||||||
Weighted average common shares outstanding, diluted | 26,947 | 26,781 | 26,790 | 26,751 | ||||||||||||
Common stock equivalent shares of 591,662 and 1,175,976 were considered antidilutive and were excluded from the calculation of diluted net income (loss) per share for the three and six months ended February 28, 2014, respectively, compared to 599,184 and 622,664 common stock equivalent shares for the three and six months ended February 28, 2013, respectively. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Feb. 28, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The Company purchases recycled metal from its joint venture operations at prices that approximate fair market value. These purchases totaled $7 million and $6 million for the three months ended February 28, 2014 and 2013, respectively, and $14 million and $12 million for the six months ended February 28, 2014 and 2013, respectively. Net advances to these joint ventures were $1 million for each of the three months ended February 28, 2014 and 2013, and $1 million for each of the six months ended February 28, 2014 and 2013. The Company owed $2 million and $3 million to joint ventures as of February 28, 2014 and August 31, 2013, respectively. Amounts receivable from joint venture partners were $1 million as of February 28, 2014 and August 31, 2013. | |
In connection with the acquisition of the assets of a metals recycling business in March 2011, the Company had 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 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. The Company paid $2 million and $4 million, primarily for barging services, under these agreements for the three and six months ended February 28, 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 less than $1 million for the three months ended February 28, 2014 and 2013, and $1 million for the six months ended February 28, 2014 and 2013. 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 less than $1 million for each of the three months ended February 28, 2014 and 2013, and for each of the six months ended February 28, 2014 and 2013. | |
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 February 28, 2014 and August 31, 2013. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The accounting standards for reporting information about operating segments define operating segments as components of an enterprise that engages in business activities from which it may earn revenues and incur expenses and 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 operating income 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 and other exit-related costs to the segment operating income 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 of each reporting segment does not reflect the operating income the reporting segment would report as a stand-alone business. | ||||||||||||||||
The table below illustrates the Company’s operating results by reporting segment (in thousands): | ||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
Metals Recycling Business: | ||||||||||||||||
Revenues | $ | 535,690 | $ | 576,191 | $ | 1,025,999 | $ | 1,070,652 | ||||||||
Less: Intersegment revenues | (45,140 | ) | (42,461 | ) | (94,893 | ) | (89,717 | ) | ||||||||
MRB external customer revenues | 490,550 | 533,730 | 931,106 | 980,935 | ||||||||||||
Auto Parts Business: | ||||||||||||||||
Revenues | 76,360 | 78,082 | 155,995 | 147,637 | ||||||||||||
Less: Intersegment revenues | (22,219 | ) | (20,849 | ) | (42,790 | ) | (36,818 | ) | ||||||||
APB external customer revenues | 54,141 | 57,233 | 113,205 | 110,819 | ||||||||||||
Steel Manufacturing Business: | ||||||||||||||||
Revenues | 81,456 | 71,247 | 169,580 | 163,276 | ||||||||||||
Total revenues | $ | 626,147 | $ | 662,210 | $ | 1,213,891 | $ | 1,255,030 | ||||||||
The table below illustrates the reconciliation of the Company’s segment operating income to income (loss) before income taxes (in thousands): | ||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Metals Recycling Business | $ | 10,605 | $ | 14,158 | $ | 11,195 | $ | 19,812 | ||||||||
Auto Parts Business | 4,575 | 6,711 | 10,184 | 13,075 | ||||||||||||
Steel Manufacturing Business | 3,573 | 1,041 | 5,318 | 4,445 | ||||||||||||
Segment operating income | 18,753 | 21,910 | 26,697 | 37,332 | ||||||||||||
Restructuring charges and other exit-related costs | (2,006 | ) | (1,540 | ) | (3,819 | ) | (3,133 | ) | ||||||||
Corporate and eliminations | (10,163 | ) | (8,980 | ) | (19,921 | ) | (21,595 | ) | ||||||||
Operating income | 6,584 | 11,390 | 2,957 | 12,604 | ||||||||||||
Interest expense | (2,816 | ) | (2,354 | ) | (5,517 | ) | (4,371 | ) | ||||||||
Other income (expense), net | (142 | ) | (49 | ) | 33 | 271 | ||||||||||
Income (loss) before income taxes | $ | 3,626 | $ | 8,987 | $ | (2,527 | ) | $ | 8,504 | |||||||
The following is a summary of the Company’s total assets by reporting segment (in thousands): | ||||||||||||||||
February 28, 2014 | August 31, 2013 | |||||||||||||||
Metals Recycling Business(1) | $ | 1,325,158 | $ | 1,316,202 | ||||||||||||
Auto Parts Business | 350,163 | 359,977 | ||||||||||||||
Steel Manufacturing Business | 336,696 | 330,282 | ||||||||||||||
Total segment assets | 2,012,017 | 2,006,461 | ||||||||||||||
Corporate and eliminations | (628,248 | ) | (600,949 | ) | ||||||||||||
Total assets | $ | 1,383,769 | $ | 1,405,512 | ||||||||||||
_____________________________ | ||||||||||||||||
-1 | MRB total assets include $15 million as of February 28, 2014 and August 31, 2013 for investments in joint venture partnerships. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Basis of Presentation | ' | |||||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||||||
The accompanying Unaudited Condensed Consolidated Financial Statements of Schnitzer Steel Industries, Inc. (the “Company”) have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10-Q, including Article 10 of Regulation S-X. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. In the opinion of management, all normal, recurring adjustments considered necessary for a fair statement have been included. Management suggests that these Unaudited Condensed Consolidated Financial Statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2013. The results for the three and six months ended February 28, 2014 and 2013 are not necessarily indicative of the results of operations for the entire year. | ||||||||||||||||||||||||
Revision of Previously Issued Financial Statements | ' | |||||||||||||||||||||||
Revision of Previously Issued Financial Statements | ||||||||||||||||||||||||
In the first quarter of fiscal 2014, an error was identified in the classification of the cash outflow of $24.7 million for the purchase of a noncontrolling interest in a subsidiary as a use of cash in investing activities that, under generally accepted accounting principles, should have been reflected as a use of cash in financing activities in the Company’s consolidated statements of cash flows included in the previously reported financial statements for the nine months ended May 31, 2013 included in the Quarterly Report on Form 10-Q and for the year ended August 31, 2013 included in the 2013 Annual Report on Form 10-K. | ||||||||||||||||||||||||
The Company assessed the materiality of this classification error under the guidance in ASC 250-10 relating to SEC’s Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and concluded that the previously issued financial statements for the nine months ended May 31, 2013 and the year ended August 31, 2013 were not materially misstated. The Company also evaluated the impact of correcting the error through an adjustment to its financial statements and concluded, based on the guidance within ASC 250-10 relating to SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, to revise its previously issued financial statements to reflect the impact of the correction of the classification error. The consolidated statements of cash flows for the year ended August 31, 2013 and for the nine months ended May 31, 2013 will be revised in the Company’s 2014 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of fiscal 2014, respectively, to correct the classification error. | ||||||||||||||||||||||||
The revision had no impact on the Company’s consolidated balance sheets, consolidated results of operations, earnings (loss) per share and net cash provided by operating activities in the consolidated statements of cash flows. | ||||||||||||||||||||||||
The effect of the revision on the line items within the Company’s consolidated statement of cash flows for the nine months ended May 31, 2013 and the year ended August 31, 2013 is as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended May 31, 2013 | Year Ended August 31, 2013 | |||||||||||||||||||||||
As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||||
Investing Activities | ||||||||||||||||||||||||
Purchase of noncontrolling interest | $ | (24,734 | ) | $ | 24,734 | $ | — | $ | (24,734 | ) | $ | 24,734 | $ | — | ||||||||||
Net cash used in investing activities | (115,089 | ) | 24,734 | (90,355 | ) | (137,184 | ) | 24,734 | (112,450 | ) | ||||||||||||||
Financing Activities | ||||||||||||||||||||||||
Purchase of noncontrolling interest | — | (24,734 | ) | (24,734 | ) | — | (24,734 | ) | (24,734 | ) | ||||||||||||||
Net cash provided by (used in) financing | 60,023 | (24,734 | ) | 35,289 | 20,587 | (24,734 | ) | (4,147 | ) | |||||||||||||||
activities | ||||||||||||||||||||||||
Accounting Changes | ' | |||||||||||||||||||||||
Accounting Changes | ||||||||||||||||||||||||
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 Company adopted the new requirement in the first quarter of fiscal 2014 with no impact to the Company’s Unaudited Condensed Consolidated Financial Statements, except for the change in presentation. The Company has chosen to present amounts reclassified out of accumulated other comprehensive income in the notes to the financial statements. See Note 10 - Accumulated Other Comprehensive Loss for further detail. | ||||||||||||||||||||||||
During the first quarter of fiscal 2014, the Company elected to change its annual goodwill impairment testing date from February 28 to July 1 of each year. See Note 4 - Goodwill for further detail. | ||||||||||||||||||||||||
Cash and Cash Equivalents | ' | |||||||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||
Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $31 million as of February 28, 2014 and August 31, 2013. | ||||||||||||||||||||||||
Other Assets | ' | |||||||||||||||||||||||
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 Condensed Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. Other assets are reported net of an allowance for credit losses on notes and other contractual receivables of $8 million as of February 28, 2014 and August 31, 2013. | ||||||||||||||||||||||||
As of February 28, 2014 and August 31, 2013, the Company reported $4 million and $3 million of assets held for sale within prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. During the second quarter of fiscal 2014, the Company recorded impairment charges for the initial and subsequent write-down of certain equipment held for sale to its fair value less cost to sell of $1 million, which are reported within other asset impairment charges in the Condensed Consolidated Statements of Operations. The Company determined 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. See Note 11 - Fair Value Measurements for further detail. | ||||||||||||||||||||||||
Derivatives Financial Instruments | ' | |||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||
The Company records derivative instruments in prepaid expenses and other current assets or other accrued liabilities in the Condensed Consolidated Balance Sheets at fair value, and changes in the fair value are either recognized in other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income (Loss) or net income (loss) in the Condensed 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, in the period that the hedged transaction is deemed no longer likely to occur, or in the period the derivative is terminated. 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. Cash flows from derivatives are recognized in the Condensed Consolidated Statements of Cash Flows in a manner consistent with the underlying transactions. See Note 11 - Fair Value Measurements and Note 12 - Derivative Financial Instruments for further detail. | ||||||||||||||||||||||||
Concentration Of Credit Risk | ' | |||||||||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||||||||||
Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable, notes and other contractual receivables and derivative financial instruments. The majority of cash and cash equivalents are maintained with two major financial institutions (Bank of America and Wells Fargo Bank, N.A.). Balances in these institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of February 28, 2014. 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, cash deposits 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 $64 million and $94 million of open letters of credit relating to accounts receivable as of February 28, 2014 and August 31, 2013, respectively. The counterparties to the Company's derivative financial instruments are major financial institutions. | ||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||
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. Derivative contracts are reported at fair value. See Note 11 - Fair Value Measurements and Note 12 - Derivative Financial Instruments for further detail. | ||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
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 within 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 the 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 11 - Fair Value Measurements for further detail. | ||||||||||||||||||||||||
Restructuring Charges | ' | |||||||||||||||||||||||
Restructuring Charges | ||||||||||||||||||||||||
Restructuring charges consist of severance, contract termination and other restructuring-related 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 restructuring costs is measured at its fair value in the period in which the liability is incurred. See Note 7 - Restructuring Charges and Other Exit-Related Costs for further detail. | ||||||||||||||||||||||||
Employee Benefits | ' | |||||||||||||||||||||||
Employee Benefits | ||||||||||||||||||||||||
Prior to October 1, 2013, the Steelworkers Western Independent Shops Pension Plan (“WISPP”), a multiemployer plan benefiting union employees of the Steel Manufacturing Business, had an accumulated funding deficiency (i.e., a failure to satisfy the minimum funding requirements) and was certified in a Red Zone Status, as defined by the Pension Protection Act of 2006. As of October 1, 2013, the WISPP was no longer in Red Zone Status, having been certified by the plan’s actuaries as being in the Green Zone. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | ' | |||||||||||||||||||||||
The effect of the revision on the line items within the Company’s consolidated statement of cash flows for the nine months ended May 31, 2013 and the year ended August 31, 2013 is as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended May 31, 2013 | Year Ended August 31, 2013 | |||||||||||||||||||||||
As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||||
Investing Activities | ||||||||||||||||||||||||
Purchase of noncontrolling interest | $ | (24,734 | ) | $ | 24,734 | $ | — | $ | (24,734 | ) | $ | 24,734 | $ | — | ||||||||||
Net cash used in investing activities | (115,089 | ) | 24,734 | (90,355 | ) | (137,184 | ) | 24,734 | (112,450 | ) | ||||||||||||||
Financing Activities | ||||||||||||||||||||||||
Purchase of noncontrolling interest | — | (24,734 | ) | (24,734 | ) | — | (24,734 | ) | (24,734 | ) | ||||||||||||||
Net cash provided by (used in) financing | 60,023 | (24,734 | ) | 35,289 | 20,587 | (24,734 | ) | (4,147 | ) | |||||||||||||||
activities |
Inventories_net_Tables
Inventories, net (Tables) | 6 Months Ended | |||||||
Feb. 28, 2014 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories, net consisted of the following (in thousands): | ||||||||
February 28, 2014 | August 31, 2013 | |||||||
Processed and unprocessed scrap metal | $ | 139,729 | $ | 132,485 | ||||
Semi-finished goods (billets) | 13,185 | 10,745 | ||||||
Finished goods | 62,341 | 56,830 | ||||||
Supplies | 37,594 | 35,989 | ||||||
Inventories, net | $ | 252,849 | $ | 236,049 | ||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | |||||||||||
Feb. 28, 2014 | ||||||||||||
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 six months ended February 28, 2014 were as follows (in thousands): | ||||||||||||
Metals Recycling Business | Auto Parts Business | Total | ||||||||||
Balance as of August 31, 2013 | $ | 147,213 | $ | 180,051 | $ | 327,264 | ||||||
Acquisitions | — | 586 | 586 | |||||||||
Acquisition accounting adjustments | — | (51 | ) | (51 | ) | |||||||
Foreign currency translation adjustment | (1,730 | ) | (1,238 | ) | (2,968 | ) | ||||||
Balance as of February 28, 2014 | $ | 145,483 | $ | 179,348 | $ | 324,831 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule Of Reserves For Environmental Liabilities [Table Text Block] | ' | ||||||||||||||||||||||||
Changes in the Company’s environmental liabilities for the six months ended February 28, 2014 were as follows (in thousands): | |||||||||||||||||||||||||
Reporting Segment | Balance as of August 31, 2013 | Liabilities Established (Released), Net | Payments and Other | Balance as of February 28, 2014 | Short-Term | Long-Term | |||||||||||||||||||
Metals Recycling Business | $ | 30,520 | $ | (312 | ) | $ | (231 | ) | $ | 29,977 | $ | 345 | $ | 29,632 | |||||||||||
Auto Parts Business | 18,774 | 373 | (120 | ) | 19,027 | 556 | 18,471 | ||||||||||||||||||
Corporate | 500 | — | (5 | ) | 495 | 195 | 300 | ||||||||||||||||||
Total | $ | 49,794 | $ | 61 | $ | (356 | ) | $ | 49,499 | $ | 1,096 | $ | 48,403 | ||||||||||||
Restructuring_Charges_and_Othe1
Restructuring Charges and Other Exit-Related Costs (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||||||||||||||||||
Restructuring Costs and Asset Impairment Charges [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
Restructuring charges and other exit-related costs were comprised of the following (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended February 28, 2014 | Three Months Ended February 28, 2013 | |||||||||||||||||||||||||||||||||||||||
Q4’12 Plan | Q1’14 Plan | Total Charges | Q4’12 Plan | Q1’14 Plan | Total Charges | |||||||||||||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||||||||||||||||||
Severance costs | $ | (39 | ) | $ | 1,182 | $ | 1,143 | $ | 116 | $ | — | $ | 116 | |||||||||||||||||||||||||||
Contract termination costs | 106 | (9 | ) | 97 | 19 | — | 19 | |||||||||||||||||||||||||||||||||
Other restructuring costs | — | 200 | 200 | 1,405 | — | 1,405 | ||||||||||||||||||||||||||||||||||
Total restructuring charges | 67 | 1,373 | 1,440 | 1,540 | — | 1,540 | ||||||||||||||||||||||||||||||||||
Other exit-related costs: | ||||||||||||||||||||||||||||||||||||||||
Asset impairments | $ | — | $ | 566 | $ | 566 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
Total exit-related costs | — | 566 | 566 | — | — | — | ||||||||||||||||||||||||||||||||||
Total restructuring charges and exit-related costs | $ | 67 | $ | 1,939 | $ | 2,006 | $ | 1,540 | $ | — | $ | 1,540 | ||||||||||||||||||||||||||||
Six Months Ended February 28, 2014 | Six Months Ended February 28, 2013 | |||||||||||||||||||||||||||||||||||||||
Q4’12 Plan | Q1’14 Plan | Total Charges | Q4’12 Plan | Q1’14 Plan | Total Charges | |||||||||||||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||||||||||||||||||
Severance costs | $ | (13 | ) | $ | 2,259 | $ | 2,246 | $ | 1,055 | $ | — | $ | 1,055 | |||||||||||||||||||||||||||
Contract termination costs | 568 | 29 | 597 | 24 | — | 24 | ||||||||||||||||||||||||||||||||||
Other restructuring costs | — | 410 | 410 | 2,054 | — | 2,054 | ||||||||||||||||||||||||||||||||||
Total restructuring charges | 555 | 2,698 | 3,253 | 3,133 | — | 3,133 | ||||||||||||||||||||||||||||||||||
Other exit-related costs: | ||||||||||||||||||||||||||||||||||||||||
Asset impairments | $ | — | $ | 566 | $ | 566 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
Total exit-related costs | — | 566 | 566 | — | — | — | ||||||||||||||||||||||||||||||||||
Total restructuring charges and exit-related costs | $ | 555 | $ | 3,264 | $ | 3,819 | $ | 3,133 | $ | — | $ | 3,133 | ||||||||||||||||||||||||||||
Total Charges | ||||||||||||||||||||||||||||||||||||||||
Q4’12 Plan | Q1’14 Plan | Total | ||||||||||||||||||||||||||||||||||||||
Total restructuring charges to date | $ | 13,473 | $ | 2,698 | $ | 16,171 | ||||||||||||||||||||||||||||||||||
Total expected restructuring charges | $ | 13,500 | $ | 5,200 | $ | 18,700 | ||||||||||||||||||||||||||||||||||
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 six months ended February 28, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Q4’12 Plan | Q1’14 Plan | Total Charges to Date | Total Expected Charges | |||||||||||||||||||||||||||||||||||||
Balance 8/31/2013 | Charges | Payments and Other | Balance 2/28/2014 | Balance 8/31/2013 | Charges | Payments and Other | Balance 2/28/2014 | |||||||||||||||||||||||||||||||||
Severance costs | $ | 278 | $ | (13 | ) | $ | (227 | ) | $ | 38 | $ | — | $ | 2,259 | $ | (1,300 | ) | $ | 959 | $ | 7,430 | $ | 9,600 | |||||||||||||||||
Contract termination costs | 3,027 | 568 | (1,835 | ) | 1,760 | — | 29 | (6 | ) | 23 | 4,266 | 4,600 | ||||||||||||||||||||||||||||
Other restructuring costs | — | — | — | — | — | 410 | (410 | ) | — | 4,475 | 4,500 | |||||||||||||||||||||||||||||
Total | $ | 3,305 | $ | 555 | $ | (2,062 | ) | $ | 1,798 | $ | — | $ | 2,698 | $ | (1,716 | ) | $ | 982 | $ | 16,171 | $ | 18,700 | ||||||||||||||||||
Schedule of Restructuring and Related Activities By Segment [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
The amounts of restructuring charges and other exit-related costs relating to each segment were as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | Total Charges | Total Expected Charges | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | to Date | ||||||||||||||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||||||||||||||||||
Metals Recycling Business | $ | 860 | $ | 60 | $ | 2,152 | $ | 610 | $ | 6,560 | $ | 8,100 | ||||||||||||||||||||||||||||
Auto Parts Business | 435 | 24 | 496 | 211 | 968 | 1,500 | ||||||||||||||||||||||||||||||||||
Unallocated (Corporate) | 145 | 1,456 | 605 | 2,312 | 8,643 | 9,100 | ||||||||||||||||||||||||||||||||||
Total restructuring charges | 1,440 | 1,540 | 3,253 | 3,133 | 16,171 | 18,700 | ||||||||||||||||||||||||||||||||||
Other exit-related costs: | ||||||||||||||||||||||||||||||||||||||||
Metals Recycling Business | 566 | — | 566 | — | 566 | |||||||||||||||||||||||||||||||||||
Total exit-related costs | 566 | — | 566 | — | 566 | |||||||||||||||||||||||||||||||||||
Total restructuring charges and other exit-related costs | 2,006 | 1,540 | 3,819 | 3,133 | 16,737 | |||||||||||||||||||||||||||||||||||
The Company does not allocate restructuring charges and other exit-related costs to the segments’ operating results because management does not include this information in its measurement of the performance of the operating segments. |
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interest (Tables) | 6 Months Ended | |||
Feb. 28, 2014 | ||||
Temporary Equity [Abstract] | ' | |||
Redeemable Noncontrolling Interest [Table Text Block] | ' | |||
Following is a reconciliation of the changes in the redeemable noncontrolling interest for the six months ended February 28, 2013 (in thousands): | ||||
Fiscal 2013 | ||||
Balances - September 1 (Beginning of period) | $ | 22,248 | ||
Net loss attributable to noncontrolling interest | (903 | ) | ||
Currency translation adjustment | (1,059 | ) | ||
Capital contributions from noncontrolling interest holder | 1,970 | |||
Adjustment to fair value | 2,504 | |||
Balances - February 28 (End of period) | $ | 24,760 | ||
Changes_in_Equity_Tables
Changes in Equity (Tables) | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | ' | |||||||||||||||||||||||
The following is a summary of the changes in equity for the six months ended February 28, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||
Fiscal 2014 | Fiscal 2013 | |||||||||||||||||||||||
SSI Shareholders’ | Noncontrolling | Total | SSI Shareholders’ | Noncontrolling | Total | |||||||||||||||||||
Equity | Interests | Equity | Equity | Interests | Equity | |||||||||||||||||||
Balances - September 1 (Beginning of period) | $ | 776,558 | $ | 4,641 | $ | 781,199 | $ | 1,080,583 | $ | 5,113 | $ | 1,085,696 | ||||||||||||
Net income (loss) (1) | (4,440 | ) | 1,712 | (2,728 | ) | 6,970 | 1,232 | 8,202 | ||||||||||||||||
Other comprehensive loss, net of tax(2) | (6,598 | ) | — | (6,598 | ) | (7,288 | ) | — | (7,288 | ) | ||||||||||||||
Distributions to noncontrolling interests | — | (1,072 | ) | (1,072 | ) | — | (1,002 | ) | (1,002 | ) | ||||||||||||||
Restricted stock withheld for taxes | (676 | ) | — | (676 | ) | (1,161 | ) | — | (1,161 | ) | ||||||||||||||
Stock options exercised | 240 | — | 240 | 300 | — | 300 | ||||||||||||||||||
Share-based compensation | 7,180 | — | 7,180 | 7,156 | — | 7,156 | ||||||||||||||||||
Excess tax deficiency from stock options exercised and restricted stock units vested | (674 | ) | — | (674 | ) | (852 | ) | — | (852 | ) | ||||||||||||||
Adjustments to fair value of redeemable noncontrolling interest | — | — | — | (2,504 | ) | — | (2,504 | ) | ||||||||||||||||
Cash dividends | (10,094 | ) | — | (10,094 | ) | (9,915 | ) | — | (9,915 | ) | ||||||||||||||
Balances - February 28 (End of period) | $ | 761,496 | $ | 5,281 | $ | 766,777 | $ | 1,073,289 | $ | 5,343 | $ | 1,078,632 | ||||||||||||
_____________________________ | ||||||||||||||||||||||||
-1 | Net income attributable to noncontrolling interests for the six months ended February 28, 2013 excludes net losses of $(903) thousand allocable to the redeemable noncontrolling interest. See Note 8 - Redeemable Noncontrolling Interest. | |||||||||||||||||||||||
-2 | Other comprehensive loss, net of tax for the six months ended February 28, 2013 excludes $(1) million relating to foreign currency translation adjustments for the redeemable noncontrolling interest. See Note 8 - Redeemable Noncontrolling Interest. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||||||
Changes in accumulated other comprehensive loss, net of tax, for the three months ended February 28, 2014 were as follows: | ||||||||||||||||
Foreign Currency Translation Adjustments | Pension Obligations, net | Net Unrealized Gain/(Loss) on Cash Flow Hedges | Total | |||||||||||||
Balance as of November 30, 2013 | $ | (7,314 | ) | $ | (2,773 | ) | $ | — | $ | (10,087 | ) | |||||
Other comprehensive loss before reclassifications | (5,688 | ) | — | (305 | ) | (5,993 | ) | |||||||||
Income tax benefit | — | — | 76 | 76 | ||||||||||||
Other comprehensive loss before reclassifications, net of tax | (5,688 | ) | — | (229 | ) | (5,917 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 71 | — | 71 | ||||||||||||
Income tax expense | — | (26 | ) | — | (26 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | — | 45 | — | 45 | ||||||||||||
Net periodic other comprehensive income (loss) | (5,688 | ) | 45 | (229 | ) | (5,872 | ) | |||||||||
Balance as of February 28, 2014 | $ | (13,002 | ) | $ | (2,728 | ) | $ | (229 | ) | $ | (15,959 | ) | ||||
Changes in accumulated other comprehensive loss, net of tax, for the six months ended February 28, 2014 were as follows: | ||||||||||||||||
Foreign Currency Translation Adjustments | Pension Obligations, net | Net Unrealized Gain/(Loss) on Cash Flow Hedges | Total | |||||||||||||
Balance as of August 31, 2013 | $ | (6,423 | ) | $ | (2,817 | ) | $ | (121 | ) | $ | (9,361 | ) | ||||
Other comprehensive loss before reclassifications | (6,579 | ) | — | (305 | ) | (6,884 | ) | |||||||||
Income tax benefit | — | — | 76 | 76 | ||||||||||||
Other comprehensive loss before reclassifications, net of tax | (6,579 | ) | — | (229 | ) | (6,808 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 140 | 98 | 238 | ||||||||||||
Income tax (expense) benefit | — | (51 | ) | 23 | (28 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | — | 89 | 121 | 210 | ||||||||||||
Net periodic other comprehensive income (loss) | (6,579 | ) | 89 | (108 | ) | (6,598 | ) | |||||||||
Balance as of February 28, 2014 | $ | (13,002 | ) | $ | (2,728 | ) | $ | (229 | ) | $ | (15,959 | ) | ||||
Reclassifications from accumulated other comprehensive loss, both individually and in the aggregate, were immaterial to the Unaudited Condensed Consolidated Statements of Operations. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
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 February 28, 2014 and August 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized by the Company and the type of measurement. | ||||||||||||||
(in thousands) | Assets (Liabilities) at Fair Value | Fair Value Measurement Level | Type of Measurement | Balance Sheet Classification | ||||||||||
February 28, 2014 | August 31, 2013 | |||||||||||||
Assets: | ||||||||||||||
Assets held for sale | $ | 657 | $ | 2,902 | Level 3 | Non-recurring | Prepaid expenses and other current assets | |||||||
Impaired long-lived assets | 1,000 | — | Level 3 | Non-recurring | Property, plant and equipment, net | |||||||||
Investment in joint venture partnership | — | 3,261 | Level 3 | Non-recurring | Investments in joint venture partnerships | |||||||||
Total assets | $ | 1,657 | $ | 6,163 | ||||||||||
Liabilities: | ||||||||||||||
Contract termination costs | $ | — | $ | (1,672 | ) | Level 3 | Non-recurring | Other accrued liabilities and Other long-term liabilities | ||||||
Foreign currency exchange forward contracts | (316 | ) | — | Level 2 | Recurring | Other accrued liabilities | ||||||||
Total liabilities | $ | (316 | ) | $ | (1,672 | ) |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | ' | |||||||||||||||
The fair value of derivative instruments in the Condensed Consolidated Balance Sheets are as follows (in thousands): | ||||||||||||||||
Asset (Liability) Derivatives | ||||||||||||||||
Fair Value | ||||||||||||||||
Balance Sheet Location | 28-Feb-14 | 31-Aug-13 | ||||||||||||||
Foreign currency exchange forward contracts | Other accrued liabilities | $ | (316 | ) | $ | — | ||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | |||||||||||||||
The following table summarizes the results of cash flow hedging relationships for the three and six months ended February 28 (in thousands): | ||||||||||||||||
Derivative Gain (Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax | ||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign currency exchange forward contracts | $ | (229 | ) | $ | — | $ | (229 | ) | $ | — | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||||||||||
Feb. 28, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
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 rate is as follows: | ||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||
2014 | 2013 | 2014(1) | 2013 | |||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||
State taxes, net of credits | 0.5 | (0.5 | ) | 5.5 | (1.0 | ) | ||||||
Foreign income taxed at different rates | 1.7 | 0.6 | (18.2 | ) | 0.7 | |||||||
Section 199 deduction | (1.9 | ) | (11.9 | ) | 0.3 | (12.9 | ) | |||||
Non-deductible officers’ compensation | 0.7 | 0.5 | (0.3 | ) | 0.6 | |||||||
Noncontrolling interests | (2.3 | ) | (2.2 | ) | 1.1 | (5.1 | ) | |||||
Research and development credits | (0.3 | ) | (2.2 | ) | 0.3 | (3.6 | ) | |||||
Valuation allowance on deferred tax assets | (8.5 | ) | (16.8 | ) | (29.3 | ) | — | |||||
Unrecognized tax benefits | 1.4 | — | (2.0 | ) | — | |||||||
Other | 0.9 | 0.2 | (0.4 | ) | 0.5 | |||||||
Effective tax rate | 27.2 | % | 2.7 | % | (8.0 | )% | 14.2 | % | ||||
_____________________________ | ||||||||||||
-1 | For periods with reported pre-tax losses, the effect of reconciling items with positive (negative) signs is tax benefit in excess of (less than) the benefit calculated by applying the federal statutory rate to the pre-tax loss. |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | ||||||||||||||||
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 (in thousands): | ||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) | $ | 2,640 | $ | 8,743 | $ | (2,728 | ) | $ | 7,299 | |||||||
Net income attributable to noncontrolling interests | (851 | ) | (100 | ) | (1,712 | ) | (329 | ) | ||||||||
Net income (loss) attributable to SSI | $ | 1,789 | $ | 8,643 | $ | (4,440 | ) | $ | 6,970 | |||||||
Computation of shares: | ||||||||||||||||
Weighted average common shares outstanding, basic | 26,825 | 26,640 | 26,790 | 26,597 | ||||||||||||
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs | 122 | 141 | — | 154 | ||||||||||||
Weighted average common shares outstanding, diluted | 26,947 | 26,781 | 26,790 | 26,751 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Feb. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||
The table below illustrates the Company’s operating results by reporting segment (in thousands): | ||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
Metals Recycling Business: | ||||||||||||||||
Revenues | $ | 535,690 | $ | 576,191 | $ | 1,025,999 | $ | 1,070,652 | ||||||||
Less: Intersegment revenues | (45,140 | ) | (42,461 | ) | (94,893 | ) | (89,717 | ) | ||||||||
MRB external customer revenues | 490,550 | 533,730 | 931,106 | 980,935 | ||||||||||||
Auto Parts Business: | ||||||||||||||||
Revenues | 76,360 | 78,082 | 155,995 | 147,637 | ||||||||||||
Less: Intersegment revenues | (22,219 | ) | (20,849 | ) | (42,790 | ) | (36,818 | ) | ||||||||
APB external customer revenues | 54,141 | 57,233 | 113,205 | 110,819 | ||||||||||||
Steel Manufacturing Business: | ||||||||||||||||
Revenues | 81,456 | 71,247 | 169,580 | 163,276 | ||||||||||||
Total revenues | $ | 626,147 | $ | 662,210 | $ | 1,213,891 | $ | 1,255,030 | ||||||||
Reconciliation of Operating Income from Segments to Consolidated [Table Text Block] | ' | |||||||||||||||
The table below illustrates the reconciliation of the Company’s segment operating income to income (loss) before income taxes (in thousands): | ||||||||||||||||
Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Metals Recycling Business | $ | 10,605 | $ | 14,158 | $ | 11,195 | $ | 19,812 | ||||||||
Auto Parts Business | 4,575 | 6,711 | 10,184 | 13,075 | ||||||||||||
Steel Manufacturing Business | 3,573 | 1,041 | 5,318 | 4,445 | ||||||||||||
Segment operating income | 18,753 | 21,910 | 26,697 | 37,332 | ||||||||||||
Restructuring charges and other exit-related costs | (2,006 | ) | (1,540 | ) | (3,819 | ) | (3,133 | ) | ||||||||
Corporate and eliminations | (10,163 | ) | (8,980 | ) | (19,921 | ) | (21,595 | ) | ||||||||
Operating income | 6,584 | 11,390 | 2,957 | 12,604 | ||||||||||||
Interest expense | (2,816 | ) | (2,354 | ) | (5,517 | ) | (4,371 | ) | ||||||||
Other income (expense), net | (142 | ) | (49 | ) | 33 | 271 | ||||||||||
Income (loss) before income taxes | $ | 3,626 | $ | 8,987 | $ | (2,527 | ) | $ | 8,504 | |||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | |||||||||||||||
The following is a summary of the Company’s total assets by reporting segment (in thousands): | ||||||||||||||||
February 28, 2014 | August 31, 2013 | |||||||||||||||
Metals Recycling Business(1) | $ | 1,325,158 | $ | 1,316,202 | ||||||||||||
Auto Parts Business | 350,163 | 359,977 | ||||||||||||||
Steel Manufacturing Business | 336,696 | 330,282 | ||||||||||||||
Total segment assets | 2,012,017 | 2,006,461 | ||||||||||||||
Corporate and eliminations | (628,248 | ) | (600,949 | ) | ||||||||||||
Total assets | $ | 1,383,769 | $ | 1,405,512 | ||||||||||||
_____________________________ | ||||||||||||||||
-1 | MRB total assets include $15 million as of February 28, 2014 and August 31, 2013 for investments in joint venture partnerships. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 | Aug. 31, 2013 | 31-May-13 | Aug. 31, 2013 | 31-May-13 | Aug. 31, 2013 | Nov. 30, 2013 | |
Scenario, Previously Reported [Member] | Scenario, Previously Reported [Member] | Restatement Adjustment [Member] | Restatement Adjustment [Member] | Prior Year Statement of Cash Flows Classification Error [Member] | |||||||
Prior Period Error Correction, Statement of Cash Flows Classification | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,700,000 |
Investing Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of noncontrolling interest | ' | ' | ' | ' | 0 | 0 | -24,734,000 | -24,734,000 | 24,734,000 | 24,734,000 | ' |
Net cash used in investing activities | ' | ' | -24,057,000 | -70,289,000 | -90,355,000 | -112,450,000 | -115,089,000 | -137,184,000 | 24,734,000 | 24,734,000 | ' |
Financing Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of noncontrolling interest | ' | ' | ' | ' | -24,734,000 | -24,734,000 | 0 | 0 | -24,734,000 | -24,734,000 | ' |
Net cash provided by (used in) financing activities | ' | ' | -15,387,000 | 58,492,000 | 35,289,000 | -4,147,000 | 60,023,000 | 20,587,000 | -24,734,000 | -24,734,000 | ' |
Assets Held-for-sale, Current | 4,000,000 | ' | 4,000,000 | ' | ' | 3,000,000 | ' | ' | ' | ' | ' |
Other asset impairment charges | 928,000 | 0 | 928,000 | 0 | ' | ' | ' | ' | ' | ' | ' |
Number of Days Used To Determine Short Term Highly Liquid Investments Treatment As Cash Equivalents | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' |
Book Overdrafts | 31,000,000 | ' | 31,000,000 | ' | ' | 31,000,000 | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses | 8,000,000 | ' | 8,000,000 | ' | ' | 8,000,000 | ' | ' | ' | ' | ' |
Cash, FDIC Insured Amount | 250,000 | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Customer Issued Letters Of Credit | $64,000,000 | ' | $64,000,000 | ' | ' | $94,000,000 | ' | ' | ' | ' | ' |
Inventories_net_Details
Inventories, net (Details) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Processed and unprocessed scrap metal | $139,729 | $132,485 |
Semi-finished goods (billets) | 13,185 | 10,745 |
Finished goods | 62,341 | 56,830 |
Supplies | 37,594 | 35,989 |
Inventories, net | $252,849 | $236,049 |
Business_Combinations_Details
Business Combinations (Details) (Pick A Part, Inc. [Member]) | Nov. 30, 2013 |
store | |
Pick A Part, Inc. [Member] | ' |
Business Acquisition [Line Items] | ' |
Number of Stores | 1 |
Goodwill_Details
Goodwill (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Aug. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss | $321,000 | $321,000 |
Goodwill [Roll Forward] | ' | ' |
Goodwill, beginning of period | 327,264 | ' |
Acquisitions | 586 | ' |
Acquisition accounting adjustments | -51 | ' |
Foreign currency translation adjustment | -2,968 | ' |
Goodwill, end of period | 324,831 | ' |
Metals Recycling Business [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, beginning of period | 147,213 | ' |
Acquisitions | 0 | ' |
Acquisition accounting adjustments | 0 | ' |
Foreign currency translation adjustment | -1,730 | ' |
Goodwill, end of period | 145,483 | ' |
Auto Parts Business [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, beginning of period | 180,051 | ' |
Acquisitions | 586 | ' |
Acquisition accounting adjustments | -51 | ' |
Foreign currency translation adjustment | -1,238 | ' |
Goodwill, end of period | $179,348 | ' |
ShortTerm_Borrowings_Details
Short-Term Borrowings (Details) (Wells Fargo Bank NA [Member], USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2014 | Aug. 31, 2013 |
Wells Fargo Bank NA [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $25 | ' |
Line of Credit Facility, Expiration Date | 1-Mar-15 | ' |
Line of Credit Facility, Amount Outstanding | $0 | $9 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 6 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||
Feb. 28, 2014 | Aug. 31, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Mar. 30, 2012 | Feb. 28, 2014 | Mar. 30, 2012 | Feb. 28, 2014 | Mar. 30, 2012 | Mar. 30, 2012 | Mar. 30, 2012 | Mar. 30, 2012 | |
Corporate [Member] | Metals Recycling Business [Member] | Auto Parts Business [Member] | Steel Manufacturing Business [Member] | Portland Harbor Superfund Site [Member] | Portland Harbor Superfund Site [Member] | Other Metals Recycling Business Sites [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Lower Willamette Group [Member] | Potential Responsible Parties [Member] | Potential Responsible Parties [Member] | |||
T | alternatives | Portland Harbor Superfund Site [Member] | Portland Harbor Superfund Site [Member] | Portland Harbor Superfund Site [Member] | Portland Harbor Superfund Site [Member] | Minimum [Member] | Maximum [Member] | ||||||||
potentially_responsible_party | Portland Harbor Superfund Site [Member] | Portland Harbor Superfund Site [Member] | |||||||||||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $49,794,000 | ' | $500,000 | $30,520,000 | $18,774,000 | ' | $1,000,000 | ' | $29,000,000 | ' | ' | ' | ' | ' | ' |
Liabilities Established (Released), Net | 61,000 | ' | 0 | -312,000 | 373,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments and Other | -356,000 | ' | -5,000 | -231,000 | -120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance | 49,499,000 | ' | 495,000 | 29,977,000 | 19,027,000 | 0 | 1,000,000 | ' | 29,000,000 | ' | ' | ' | ' | ' | ' |
Short-Term | 1,096,000 | 754,000 | 195,000 | 345,000 | 556,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-Term | 48,403,000 | 49,040,000 | 300,000 | 29,632,000 | 18,471,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Potentially Responsible Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80 | ' | ' | ' | ' |
Site Contingency Period Of 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Permit Expiration Date | ' | ' | ' | ' | ' | 1-Feb-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_Charges_and_Othe2
Restructuring Charges and Other Exit-Related Costs (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Total expected restructuring charges | $18,700 |
Q1'14 Plan [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Total expected restructuring charges | $5,200 |
Restructuring_Charges_and_Othe3
Restructuring Charges and Other Exit-Related Costs Restructuring and Related Costs (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | $1,440 | $1,540 | $3,253 | $3,133 |
Restructuring charges and other exit-related costs | 2,006 | 1,540 | 3,819 | 3,133 |
Total restructuring charges to date | ' | ' | 16,171 | ' |
Total expected restructuring charges | ' | ' | 18,700 | ' |
Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 67 | 1,540 | 555 | 3,133 |
Restructuring charges and other exit-related costs | 67 | 1,540 | 555 | 3,133 |
Total restructuring charges to date | ' | ' | 13,473 | ' |
Total expected restructuring charges | ' | ' | 13,500 | ' |
Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 1,373 | 0 | 2,698 | 0 |
Restructuring charges and other exit-related costs | 1,939 | 0 | 3,264 | 0 |
Total restructuring charges to date | ' | ' | 2,698 | ' |
Total expected restructuring charges | ' | ' | 5,200 | ' |
Severance costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 1,143 | 116 | 2,246 | 1,055 |
Total restructuring charges to date | ' | ' | 7,430 | ' |
Total expected restructuring charges | ' | ' | 9,600 | ' |
Severance costs [Member] | Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | -39 | 116 | -13 | 1,055 |
Severance costs [Member] | Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 1,182 | 0 | 2,259 | 0 |
Contract termination costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 97 | 19 | 597 | 24 |
Total restructuring charges to date | ' | ' | 4,266 | ' |
Total expected restructuring charges | ' | ' | 4,600 | ' |
Contract termination costs [Member] | Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 106 | 19 | 568 | 24 |
Contract termination costs [Member] | Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | -9 | 0 | 29 | 0 |
Other restructuring costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 200 | 1,405 | 410 | 2,054 |
Total restructuring charges to date | ' | ' | 4,475 | ' |
Total expected restructuring charges | ' | ' | 4,500 | ' |
Other restructuring costs [Member] | Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 0 | 1,405 | 0 | 2,054 |
Other restructuring costs [Member] | Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 200 | 0 | 410 | 0 |
Asset impairments [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | 566 | 0 | 566 | 0 |
Asset impairments [Member] | Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | 0 | 0 | 0 | 0 |
Asset impairments [Member] | Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | 566 | 0 | 566 | 0 |
Other Exit Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | 566 | 0 | 566 | 0 |
Total restructuring charges to date | ' | ' | 566 | ' |
Other Exit Costs [Member] | Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | 0 | 0 | 0 | 0 |
Other Exit Costs [Member] | Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | $566 | $0 | $566 | $0 |
Restructuring_Charges_and_Othe4
Restructuring Charges and Other Exit-Related Costs Reserve Rollforward (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Charges | $1,440 | $1,540 | $3,253 | $3,133 |
Total restructuring charges to date | ' | ' | 16,171 | ' |
Total expected restructuring charges | ' | ' | 18,700 | ' |
Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | ' | 3,305 | ' |
Charges | 67 | 1,540 | 555 | 3,133 |
Payments and Other | ' | ' | -2,062 | ' |
Restructuring reserve, ending balance | 1,798 | ' | 1,798 | ' |
Total restructuring charges to date | ' | ' | 13,473 | ' |
Total expected restructuring charges | ' | ' | 13,500 | ' |
Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | ' | 0 | ' |
Charges | 1,373 | 0 | 2,698 | 0 |
Payments and Other | ' | ' | -1,716 | ' |
Restructuring reserve, ending balance | 982 | ' | 982 | ' |
Total restructuring charges to date | ' | ' | 2,698 | ' |
Total expected restructuring charges | ' | ' | 5,200 | ' |
Severance costs [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Charges | 1,143 | 116 | 2,246 | 1,055 |
Total restructuring charges to date | ' | ' | 7,430 | ' |
Total expected restructuring charges | ' | ' | 9,600 | ' |
Severance costs [Member] | Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | ' | 278 | ' |
Charges | -39 | 116 | -13 | 1,055 |
Payments and Other | ' | ' | -227 | ' |
Restructuring reserve, ending balance | 38 | ' | 38 | ' |
Severance costs [Member] | Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | ' | 0 | ' |
Charges | 1,182 | 0 | 2,259 | 0 |
Payments and Other | ' | ' | -1,300 | ' |
Restructuring reserve, ending balance | 959 | ' | 959 | ' |
Contract termination costs [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Charges | 97 | 19 | 597 | 24 |
Total restructuring charges to date | ' | ' | 4,266 | ' |
Total expected restructuring charges | ' | ' | 4,600 | ' |
Contract termination costs [Member] | Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | ' | 3,027 | ' |
Charges | 106 | 19 | 568 | 24 |
Payments and Other | ' | ' | -1,835 | ' |
Restructuring reserve, ending balance | 1,760 | ' | 1,760 | ' |
Contract termination costs [Member] | Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | ' | 0 | ' |
Charges | -9 | 0 | 29 | 0 |
Payments and Other | ' | ' | -6 | ' |
Restructuring reserve, ending balance | 23 | ' | 23 | ' |
Other restructuring costs [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Charges | 200 | 1,405 | 410 | 2,054 |
Total restructuring charges to date | ' | ' | 4,475 | ' |
Total expected restructuring charges | ' | ' | 4,500 | ' |
Other restructuring costs [Member] | Q4'12 Plan [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | ' | 0 | ' |
Charges | 0 | 1,405 | 0 | 2,054 |
Payments and Other | ' | ' | 0 | ' |
Restructuring reserve, ending balance | 0 | ' | 0 | ' |
Other restructuring costs [Member] | Q1'14 Plan [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | ' | 0 | ' |
Charges | 200 | 0 | 410 | 0 |
Payments and Other | ' | ' | -410 | ' |
Restructuring reserve, ending balance | $0 | ' | $0 | ' |
Restructuring_Charges_and_Othe5
Restructuring Charges and Other Exit-Related Costs Restructuring Charges and Other Exit-Related Costs by Segment (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | $1,440 | $1,540 | $3,253 | $3,133 |
Restructuring charges and other exit-related costs | 2,006 | 1,540 | 3,819 | 3,133 |
Total restructuring charges to date | ' | ' | 16,171 | ' |
Total expected restructuring charges | ' | ' | 18,700 | ' |
Restructuring and related cost, including other exit-related costs, cost incurred to date | ' | ' | 16,737 | ' |
Asset impairments [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | 566 | 0 | 566 | 0 |
Other Exit Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | 566 | 0 | 566 | 0 |
Total restructuring charges to date | ' | ' | 566 | ' |
Metals Recycling Business [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 860 | 60 | 2,152 | 610 |
Total restructuring charges to date | ' | ' | 6,560 | ' |
Total expected restructuring charges | ' | ' | 8,100 | ' |
Metals Recycling Business [Member] | Asset impairments [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and other exit-related costs | 566 | 0 | 566 | 0 |
Total restructuring charges to date | ' | ' | 566 | ' |
Auto Parts Business [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 435 | 24 | 496 | 211 |
Total restructuring charges to date | ' | ' | 968 | ' |
Total expected restructuring charges | ' | ' | 1,500 | ' |
Unallocated (Corporate) [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 145 | 1,456 | 605 | 2,312 |
Total restructuring charges to date | ' | ' | 8,643 | ' |
Total expected restructuring charges | ' | ' | $9,100 | ' |
Redeemable_Noncontrolling_Inte2
Redeemable Noncontrolling Interest (Details) (USD $) | 0 Months Ended | 6 Months Ended | 1 Months Ended | |
Mar. 08, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Mar. 31, 2011 | |
Common Stock [Member] | ||||
Subsidiaries [Member] | ||||
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% |
Redeemable Noncontrolling Interest Purchase Date | ' | 8-Mar-13 | ' | ' |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $25,000,000 | ' | ' | ' |
Redeemable Noncontrolling Interest, Equity, Fair Value | ' | ' | 25,000,000 | ' |
Increase (Decrease) in Temporary Equity [Roll Forward] | ' | ' | ' | ' |
Balances - September 1 (Beginning of period) | ' | ' | 22,248,000 | ' |
Net loss attributable to noncontrolling interest | ' | ' | 903,000 | ' |
Currency translation adjustment | ' | ' | -1,059,000 | ' |
Capital contributions from noncontrolling interest holder | ' | ' | 1,970,000 | ' |
Adjustments to fair value | ' | ' | 2,504,000 | ' |
Balances - February 28 (End of period) | ' | ' | $24,760,000 | ' |
Changes_in_Equity_Details
Changes in Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | |
Balances - September 1 (Beginning of period) | ' | ' | $781,199 | $1,085,696 | |
Net income (loss) | ' | ' | -2,728 | 8,202 | [1] |
Other comprehensive loss, net of tax | ' | ' | -6,598 | -7,288 | [2] |
Distributions to noncontrolling interests | ' | ' | -1,072 | -1,002 | |
Restricted stock withheld for taxes | ' | ' | -676 | -1,161 | |
Stock options exercised | ' | ' | 240 | 300 | |
Share-based compensation | ' | ' | 7,180 | 7,156 | |
Excess tax deficiency from stock options exercised and restricted stock units vested | ' | ' | -674 | -852 | |
Adjustments to fair value of redeemable noncontrolling interest | ' | ' | 0 | -2,504 | |
Cash dividends | ' | ' | -10,094 | -9,915 | |
Balances - February 28 (End of period) | 766,777 | 1,078,632 | 766,777 | 1,078,632 | |
Net loss attributable to redeemable noncontrolling interest | ' | ' | ' | 903 | |
Foreign currency translation adjustment attributable to redeemable noncontrolling interest | 0 | -886 | 0 | -1,059 | |
Parent [Member] | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | |
Balances - September 1 (Beginning of period) | ' | ' | 776,558 | 1,080,583 | |
Net income (loss) | ' | ' | -4,440 | 6,970 | |
Other comprehensive loss, net of tax | ' | ' | -6,598 | -7,288 | [2] |
Distributions to noncontrolling interests | ' | ' | 0 | 0 | |
Restricted stock withheld for taxes | ' | ' | -676 | -1,161 | |
Stock options exercised | ' | ' | 240 | 300 | |
Share-based compensation | ' | ' | 7,180 | 7,156 | |
Excess tax deficiency from stock options exercised and restricted stock units vested | ' | ' | -674 | -852 | |
Adjustments to fair value of redeemable noncontrolling interest | ' | ' | 0 | -2,504 | |
Cash dividends | ' | ' | -10,094 | -9,915 | |
Balances - February 28 (End of period) | 761,496 | 1,073,289 | 761,496 | 1,073,289 | |
Noncontrolling Interest [Member] | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | |
Balances - September 1 (Beginning of period) | ' | ' | 4,641 | 5,113 | |
Net income (loss) | ' | ' | 1,712 | 1,232 | [1] |
Other comprehensive loss, net of tax | ' | ' | 0 | 0 | [2] |
Distributions to noncontrolling interests | ' | ' | -1,072 | -1,002 | |
Restricted stock withheld for taxes | ' | ' | 0 | 0 | |
Stock options exercised | ' | ' | 0 | 0 | |
Share-based compensation | ' | ' | 0 | 0 | |
Excess tax deficiency from stock options exercised and restricted stock units vested | ' | ' | 0 | 0 | |
Adjustments to fair value of redeemable noncontrolling interest | ' | ' | 0 | 0 | |
Cash dividends | ' | ' | 0 | 0 | |
Balances - February 28 (End of period) | $5,281 | $5,343 | $5,281 | $5,343 | |
[1] | Net income attributable to noncontrolling interests for the six months ended FebruaryB 28, 2013 excludes net losses of $(903) thousand allocable to the redeemable noncontrolling interest. See Note 8 - Redeemable Noncontrolling Interest. | ||||
[2] | Other comprehensive loss, net of tax for the six months ended FebruaryB 28, 2013 excludes $(1) million relating to foreign currency translation adjustments for the redeemable noncontrolling interest. See Note 8 - Redeemable Noncontrolling Interest. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Increase (Decrease) In Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ($10,087) | ' | ($9,361) | ' |
Other comprehensive loss before reclassifications | -5,993 | ' | -6,884 | ' |
Income tax benefit | 76 | ' | 76 | ' |
Other comprehensive loss before reclassifications, net of tax | -5,917 | ' | -6,808 | ' |
Amounts reclassified from accumulated other comprehensive loss | 71 | ' | 238 | ' |
Income tax (expense) benefit | -26 | ' | -28 | ' |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 45 | ' | 210 | ' |
Total other comprehensive loss, net of tax | -5,872 | -5,362 | -6,598 | -6,229 |
Ending balance | -15,959 | ' | -15,959 | ' |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' | ' |
Increase (Decrease) In Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Beginning balance | -7,314 | ' | -6,423 | ' |
Other comprehensive loss before reclassifications | -5,688 | ' | -6,579 | ' |
Income tax benefit | 0 | ' | 0 | ' |
Other comprehensive loss before reclassifications, net of tax | -5,688 | ' | -6,579 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | ' | 0 | ' |
Income tax (expense) benefit | 0 | ' | 0 | ' |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | ' | 0 | ' |
Total other comprehensive loss, net of tax | -5,688 | ' | -6,579 | ' |
Ending balance | -13,002 | ' | -13,002 | ' |
Pension Obligations, net [Member] | ' | ' | ' | ' |
Increase (Decrease) In Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Beginning balance | -2,773 | ' | -2,817 | ' |
Other comprehensive loss before reclassifications | 0 | ' | 0 | ' |
Income tax benefit | 0 | ' | 0 | ' |
Other comprehensive loss before reclassifications, net of tax | 0 | ' | 0 | ' |
Amounts reclassified from accumulated other comprehensive loss | 71 | ' | 140 | ' |
Income tax (expense) benefit | -26 | ' | -51 | ' |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 45 | ' | 89 | ' |
Total other comprehensive loss, net of tax | 45 | ' | 89 | ' |
Ending balance | -2,728 | ' | -2,728 | ' |
Net Unrealized Gain/(Loss) on Cash Flow Hedges [Member] | ' | ' | ' | ' |
Increase (Decrease) In Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Beginning balance | 0 | ' | -121 | ' |
Other comprehensive loss before reclassifications | -305 | ' | -305 | ' |
Income tax benefit | 76 | ' | 76 | ' |
Other comprehensive loss before reclassifications, net of tax | -229 | ' | -229 | ' |
Amounts reclassified from accumulated other comprehensive loss | 0 | ' | 98 | ' |
Income tax (expense) benefit | 0 | ' | 23 | ' |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | ' | 121 | ' |
Total other comprehensive loss, net of tax | -229 | ' | -108 | ' |
Ending balance | ($229) | ' | ($229) | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Total assets | $1,657 | $6,163 |
Liabilities: | ' | ' |
Total liabilities | -316 | -1,672 |
Prepaid expenses and other current assets [Member] | Nonrecurring [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Assets held for sale | 657 | 2,902 |
Property, plant and equipment [Member] | Nonrecurring [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Impaired long-lived assets | 1,000 | 0 |
Investments in and advance to affiliates, subsidiaries, associates, and joint ventures [Member] | Nonrecurring [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Investment in joint venture partnership | 0 | 3,261 |
Other accrued liabilities and other long-term liabilities [Member] | Nonrecurring [Member] | Level 3 [Member] | ' | ' |
Liabilities: | ' | ' |
Contract termination costs | 0 | 1,672 |
Other accrued liabilities [Member] | Recurring [Member] | Level 2 [Member] | ' | ' |
Liabilities: | ' | ' |
Foreign currency exchange forward contracts | ($316) | $0 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | Feb. 28, 2014 |
In Millions, unless otherwise specified | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Number of Foreign Currency Derivatives Held | 6 |
Derivative, Notional Amount | $41 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments Derivative Instruments in Statement of Financial Position, Fair Value (Details) (Other Current Liabilities [Member], Not Designated as Hedging Instrument [Member], Foreign Exchange Contract [Member], USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Foreign currency exchange forward contracts | ($316) | $0 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments Derivative Gain (Loss) Recognized in AOCI (Details) (Foreign Exchange Contract [Member], Cash Flow Hedging [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Foreign currency exchange forward contracts | ($229) | $0 | ($229) | $0 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Feb. 28, 2014 |
Restricted Stock Units (RSUs) [Member] | Performance Shares [Member] | Performance Share Awards 2014 to 2015 Market Share and Operating Income Plan [Member] | Performance Share Awards 2014 to 2015 Market Share and Operating Income Plan [Member] | Performance Share Awards 2014 to 2015 Market Share and Operating Income Plan [Member] | Deferred Stock Units [Member] | |
Minimum [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 219,504 | 219,504 | ' | ' | ' | 30,848 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | '2 years | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Annual Vesting Percent | 20.00% | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Total Fair Value | $7 | $7 | ' | ' | ' | ' |
Share Based Compensation Weight Based on Market Share Improvement Used In Calculation Of Performance Targets | ' | ' | 50.00% | ' | ' | ' |
Share Based Compensation Weight Based on Divisional Operating Income Metrics Used In Calculation Of Performance Targets | ' | ' | 50.00% | ' | ' | ' |
Performance Based Awards Award Payouts Threshold | ' | ' | ' | 50.00% | 200.00% | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | |
Effective tax rate, continuing operations | 27.20% | 2.70% | -8.00% | 14.20% | |
Tax Benefit Recognized On Qualified Production Activities and Research and Development Credits | ' | $1 | ' | $1 | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | ' | $2 | ' | ' | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' | ' | |
Federal statutory rate | 35.00% | 35.00% | 35.00% | [1] | 35.00% |
State taxes, net of credits | 0.50% | -0.50% | 5.50% | -1.00% | |
Foreign income taxed at different rates | 1.70% | 0.60% | -18.20% | 0.70% | |
Section 199 deduction | -1.90% | -11.90% | 0.30% | -12.90% | |
Non-deductible officersb compensation | 0.70% | 0.50% | -0.30% | 0.60% | |
Noncontrolling interests | -2.30% | -2.20% | 1.10% | -5.10% | |
Research and development credits | -0.30% | -2.20% | 0.30% | -3.60% | |
Valuation allowance on deferred tax assets | -8.50% | -16.80% | -29.30% | 0.00% | |
Unrecognized tax benefits | 1.40% | 0.00% | -2.00% | 0.00% | |
Other | 0.90% | 0.20% | -0.40% | 0.50% | |
Effective tax rate | 27.20% | 2.70% | -8.00% | 14.20% | |
[1] | For periods with reported pre-tax losses, the effect of reconciling items with positive (negative) signs is tax benefit in excess of (less than) the benefit calculated by applying the federal statutory rate to the pre-tax loss. |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) | $2,640 | $8,743 | ($2,728) | $7,299 |
Net income attributable to noncontrolling interests | -851 | -100 | -1,712 | -329 |
Net income (loss) attributable to SSI | $1,789 | $8,643 | ($4,440) | $6,970 |
Computation of shares: | ' | ' | ' | ' |
Weighted average common shares outstanding, basic | 26,825,000 | 26,640,000 | 26,790,000 | 26,597,000 |
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs | 122,000 | 141,000 | 0 | 154,000 |
Weighted average common shares outstanding, diluted | 26,947,000 | 26,781,000 | 26,790,000 | 26,751,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 591,662 | 599,184 | 1,175,976 | 622,664 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Aug. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | ' | ' | 31-Mar-11 | ' | ' |
Redeemable Noncontrolling Interest Purchase Date | ' | ' | 8-Mar-13 | ' | ' |
Partnership Interest [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Number Of Stores | 5 | ' | 5 | ' | ' |
Corporate Joint Venture [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Purchases from Joint Ventures | $7 | $6 | $14 | $12 | ' |
Net advances to joint ventures, net | 1 | 1 | 1 | 1 | ' |
Due to Affiliate | 2 | ' | 2 | ' | 3 |
Accounts Receivable, Related Parties (MMGL - Immediate Family Member of Management or Principal, Less Than $1 Million as of February 28, 2014 and August 31, 2013) | 1 | ' | 1 | ' | 1 |
Minority Shareholder Of Subsidiary [Member] | Amix Salvage And Sales Ltd [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | ' | 2 | ' | 4 | ' |
Auto Parts Business Segment President [Member] | Partnership Interest [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Noncontrolling Ownership Percentage By Noncontrolling Owners | 25.00% | ' | 25.00% | ' | ' |
Related Party Noncontrolling Ownership Percentage By Parent | 75.00% | ' | 75.00% | ' | ' |
Related Party Transaction Related Party Share Of Profit (Less Than $1 Million For The Three Month Periods Ended February 28, 2014 and 2013) | 1 | 1 | 1 | 1 | ' |
Lease Expiration Date | ' | ' | 31-Mar-16 | ' | ' |
Related Party Transaction Rent Expense (Less Than $1 Million For the Three and Six Month Periods Ended February 28, 2014 and 2013) | 1 | 1 | 1 | 1 | ' |
Immediate Family Member of Management or Principal Owner [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Accounts Receivable, Related Parties (MMGL - Immediate Family Member of Management or Principal, Less Than $1 Million as of February 28, 2014 and August 31, 2013) | $1 | ' | $1 | ' | $1 |
Related Party Transaction Percentage Of Shared Legal And Consulting Costs | ' | ' | 50.00% | ' | ' |
Segment_Information_Details
Segment Information (Details) | 6 Months Ended |
Feb. 28, 2014 | |
segments | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 3 |
Number of Reportable Segments | 3 |
Segment_Information_Segment_Re
Segment Information Segment Revenue Reconciliation to Consolidated (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $626,147 | $662,210 | $1,213,891 | $1,255,030 |
Metals Recycling Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 490,550 | 533,730 | 931,106 | 980,935 |
Auto Parts Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 54,141 | 57,233 | 113,205 | 110,819 |
Steel Manufacturing Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 81,456 | 71,247 | 169,580 | 163,276 |
Operating Segments [Member] | Metals Recycling Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 535,690 | 576,191 | 1,025,999 | 1,070,652 |
Operating Segments [Member] | Auto Parts Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 76,360 | 78,082 | 155,995 | 147,637 |
Less: Intersegment revenues | Metals Recycling Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | -45,140 | -42,461 | -94,893 | -89,717 |
Less: Intersegment revenues | Auto Parts Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | ($22,219) | ($20,849) | ($42,790) | ($36,818) |
Segment_Information_Segment_Op
Segment Information Segment Operating Income Reconciliation to Consolidated (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | $6,584 | $11,390 | $2,957 | $12,604 |
Restructuring charges and other exit-related costs | -2,006 | -1,540 | -3,819 | -3,133 |
Interest expense | -2,816 | -2,354 | -5,517 | -4,371 |
Other income (expense), net | -142 | -49 | 33 | 271 |
Income (loss) before income taxes | 3,626 | 8,987 | -2,527 | 8,504 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | 18,753 | 21,910 | 26,697 | 37,332 |
Restructuring charges and other exit-related costs | -2,006 | -1,540 | -3,819 | -3,133 |
Operating Segments [Member] | Metals Recycling Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | 10,605 | 14,158 | 11,195 | 19,812 |
Operating Segments [Member] | Auto Parts Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | 4,575 | 6,711 | 10,184 | 13,075 |
Operating Segments [Member] | Steel Manufacturing Business [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | 3,573 | 1,041 | 5,318 | 4,445 |
Corporate and eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | ($10,163) | ($8,980) | ($19,921) | ($21,595) |
Segment_Information_Segment_As
Segment Information Segment Assets Reconciliation to Consolidated (Details) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | $1,383,769 | $1,405,512 | ||
Investments in joint venture partnerships | 14,524 | 14,808 | ||
Metals Recycling Business [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Investments in joint venture partnerships | 14,524 | 14,808 | ||
Operating Segments [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 2,012,017 | 2,006,461 | ||
Operating Segments [Member] | Metals Recycling Business [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 1,325,158 | [1] | 1,316,202 | [1] |
Operating Segments [Member] | Auto Parts Business [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 350,163 | 359,977 | ||
Operating Segments [Member] | Steel Manufacturing Business [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 336,696 | 330,282 | ||
Corporate and eliminations [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | ($628,248) | ($600,949) | ||
[1] | MRB total assets include $15 million as of FebruaryB 28, 2014 and AugustB 31, 2013 for investments in joint venture partnerships. |