Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
May. 31, 2015 | Jun. 25, 2015 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | SCHNITZER STEEL INDUSTRIES INC | |
Entity Central Index Key | 912,603 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 26,524,472 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 305,900 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May. 31, 2015 | Aug. 31, 2014 | May. 31, 2014 |
Current assets: | |||
Cash and Cash equivalents | $ 8,929 | $ 25,672 | $ 29,362 |
Accounts receivable, net of allowance for doubtful accounts of $2,644 and $2,720 | 117,311 | 189,359 | |
Inventories | 197,008 | 216,172 | |
Deferred income taxes | 6,804 | 6,865 | |
Refundable income taxes | 11,824 | 1,756 | |
Prepaid expenses and other current assets | 20,461 | 24,108 | |
Total current assets | 362,337 | 463,932 | |
Property, plant and equipment, net of accumulated depreciation of $678,687 and $659,872 | 432,309 | 523,433 | |
Investments in joint venture partnerships | 15,232 | 14,624 | |
Goodwill | 176,804 | 325,903 | |
Intangibles, net of accumulated amortization of $6,655 and $15,612 | 6,794 | 9,835 | |
Other assets | 16,823 | 17,483 | |
Total assets | 1,010,299 | 1,355,210 | |
Current liabilities: | |||
Short-term borrowings | 637 | 523 | |
Accounts payable | 67,889 | 103,453 | |
Accrued payroll and related liabilities | 20,039 | 32,127 | |
Environmental liabilities | 455 | 1,062 | |
Accrued income taxes | 0 | 3,202 | |
Other accrued liabilities | 38,465 | 36,903 | |
Total current liabilities | 127,485 | 177,270 | |
Deferred income taxes | 21,767 | 22,746 | |
Long-term debt, net of current maturities | 262,746 | 318,842 | |
Environmental liabilities, net of current portion | 46,871 | 47,287 | |
Other long-term liabilities | 15,116 | 13,088 | |
Total liabilities | $ 473,985 | $ 579,233 | |
Commitments and contingencies (Note 6) | |||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | |||
Preferred stock – 20,000 shares $1.00 par value authorized, none issued | |||
Additional paid-in capital | $ 24,601 | $ 19,164 | |
Retained earnings | 514,416 | 737,571 | |
Accumulated other comprehensive loss | (33,737) | (12,641) | $ (12,882) |
Total SSI shareholders’ equity | 532,066 | 770,784 | |
Noncontrolling interests | 4,248 | 5,193 | |
Total equity | 536,314 | 775,977 | $ 771,226 |
Total liabilities and equity | 1,010,299 | 1,355,210 | |
Class A Common Stock | |||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | |||
Common stock, value | 26,480 | 26,384 | |
Class B Common Stock | |||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | |||
Common stock, value | $ 306 | $ 306 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May. 31, 2015 | Aug. 31, 2014 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 2,644 | $ 2,720 |
Property, plant and equipment, accumulated depreciation | 678,687 | 659,872 |
Intangibles, accumulated amortization | $ 6,655 | $ 15,612 |
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ 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 | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares issued | 26,480,000 | 26,384,000 |
Common stock, shares outstanding | 26,480,000 | 26,384,000 |
Class B Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares issued | 306,000 | 306,000 |
Common stock, shares outstanding | 306,000 | 306,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 467,309 | $ 635,473 | $ 1,458,382 | $ 1,845,163 |
Operating expense: | ||||
Cost of goods sold | 424,312 | 584,420 | 1,338,976 | 1,693,565 |
Selling, general and administrative | 39,798 | 45,309 | 126,696 | 136,831 |
Income from joint ventures | (40) | (147) | (1,148) | (924) |
Goodwill impairment charge | 0 | 0 | 141,021 | 0 |
Other asset impairment charges | 1,281 | 532 | 45,119 | 1,460 |
Restructuring charges and other exit-related costs | 5,978 | 2,762 | 11,964 | 6,444 |
Operating income (loss) | (4,020) | 2,597 | (204,246) | 7,787 |
Interest expense | (2,375) | (2,529) | (7,044) | (7,944) |
Other income, net | 84 | 492 | 3,011 | 604 |
Income (loss) from continuing operations before income taxes | (6,311) | 560 | (208,279) | 447 |
Income tax (expense) benefit | (1,396) | 3,894 | 8,171 | 3,266 |
Income (loss) from continuing operations | (7,707) | 4,454 | (200,108) | 3,713 |
Loss from discontinued operations, net of tax | (1,234) | (330) | (6,314) | (2,315) |
Net income (loss) | (8,941) | 4,124 | (206,422) | 1,398 |
Net income attributable to noncontrolling interests | (687) | (1,014) | (1,318) | (2,726) |
Net income (loss) attributable to SSI | $ (9,628) | $ 3,110 | $ (207,740) | $ (1,328) |
Basic: | ||||
Income (loss) per share from continuing operations attributable to SSI | $ (0.31) | $ 0.13 | $ (7.46) | $ 0.04 |
Loss per share from discontinued operations attributable to SSI | (0.05) | (0.01) | (0.23) | (0.09) |
Net income (loss) per share attributable to SSI | (0.36) | 0.12 | (7.69) | (0.05) |
Diluted: | ||||
Income (loss) per share from continuing operations attributable to SSI | (0.31) | 0.13 | (7.46) | 0.04 |
Loss per share from discontinued operations attributable to SSI | (0.05) | (0.01) | (0.23) | (0.09) |
Net income (loss) per share attributable to SSI | $ (0.36) | $ 0.12 | $ (7.69) | $ (0.05) |
Weighted average number of common shares: | ||||
Basic | 27,043 | 26,853 | 27,003 | 26,811 |
Diluted | 27,043 | 27,017 | 27,003 | 26,811 |
Dividends declared per common share | $ 0.1875 | $ 0.1875 | $ 0.5625 | $ 0.5625 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (8,941) | $ 4,124 | $ (206,422) | $ 1,398 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 250 | 2,620 | (19,623) | (3,959) |
Cash flow hedges, net | 1,860 | 412 | (1,833) | 304 |
Pension obligations, net | 301 | 45 | 360 | 134 |
Total other comprehensive income (loss), net of tax | 2,411 | 3,077 | (21,096) | (3,521) |
Comprehensive income (loss) | (6,530) | 7,201 | (227,518) | (2,123) |
Less net income attributable to noncontrolling interests | (687) | (1,014) | (1,318) | (2,726) |
Comprehensive income (loss) attributable to SSI | $ (7,217) | $ 6,187 | $ (228,836) | $ (4,849) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (206,422) | $ 1,398 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Goodwill impairment charge | 141,021 | 0 |
Other asset impairment charges | 45,119 | 1,460 |
Other exit-related asset impairments and accelerated depreciation | 6,502 | 566 |
Depreciation and amortization | 52,420 | 60,114 |
Inventory write-down | 3,031 | 0 |
Deferred income taxes | (764) | 1,447 |
Undistributed equity in earnings of joint ventures | (1,148) | (924) |
Share-based compensation expense | 7,596 | 10,257 |
Excess tax benefit from share-based payment arrangements | (94) | (54) |
Gain on disposal of assets | (1,752) | (916) |
Unrealized foreign exchange gain (loss), net | (1,623) | 409 |
Bad debt (recoveries) expense, net | (112) | 399 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 60,639 | (16,849) |
Inventories | 25,833 | 18,107 |
Income taxes | (14,095) | (6,678) |
Prepaid expenses and other current assets | 2,844 | (2,418) |
Intangibles and other long-term assets | 560 | 590 |
Accounts payable | (29,405) | 2,245 |
Accrued payroll and related liabilities | (11,834) | (47) |
Other accrued liabilities | (558) | 2,609 |
Environmental liabilities | (348) | (332) |
Other long-term liabilities | 1,481 | (22) |
Distributed equity in earnings of joint ventures | 525 | 1,240 |
Net cash provided by operating activities | 79,416 | 72,601 |
Cash flows from investing activities: | ||
Capital expenditures | (23,433) | (29,100) |
Joint venture payments, net | 1 | (3,711) |
Proceeds from sale of assets | 2,403 | 1,822 |
Acquisitions, net of cash acquired | (150) | (2,160) |
Net cash used in investing activities | (21,179) | (33,149) |
Cash flows from financing activities: | ||
Proceeds from line of credit | 189,000 | 327,000 |
Repayment of line of credit | (189,000) | (335,500) |
Borrowings from long-term debt | 114,099 | 259,323 |
Repayment of long-term debt | (169,511) | (257,535) |
Taxes paid related to net share settlement of share-based payment arrangements | (1,360) | (676) |
Excess tax benefit from share-based payment arrangements | 94 | 54 |
Stock options exercised | 0 | 240 |
Distributions to noncontrolling interest | (2,263) | (1,794) |
Contingent consideration paid relating to business acquisitions | (759) | 0 |
Dividends paid | (15,110) | (14,976) |
Net cash used in financing activities | (74,810) | (23,864) |
Effect of exchange rate changes on cash | (170) | 293 |
Net increase (decrease) in cash and cash equivalents | (16,743) | 15,881 |
Cash and cash equivalents as of beginning of period | 25,672 | 13,481 |
Cash and cash equivalents as of end of period | $ 8,929 | $ 29,362 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
May. 31, 2015 | |
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, 2014 . The results for the three and nine months ended May 31, 2015 and 2014 are not necessarily indicative of the results of operations for the entire fiscal year. Accounting Changes In July 2013, an accounting standards update was issued that clarifies the financial statement presentation of certain unrecognized tax benefits. The amendments require that an unrecognized tax benefit be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that such carryforwards and losses are not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, in which case the unrecognized tax benefit should be presented in the financial statements as a liability. The Company adopted the new requirement in the first quarter of fiscal 2015 with no significant impact to the Unaudited Condensed Consolidated Financial Statements. Discontinued Operations The results of discontinued operations are presented separately, net of tax, from the results of ongoing operations for all periods presented. The expenses included in the results of discontinued operations are the direct operating expenses incurred by the disposed components that may be reasonably segregated from the costs of the ongoing operations of the Company. See Note 10 - Discontinued Operations 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 $19 million and $35 million as of May 31, 2015 and August 31, 2014 , respectively. 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 Unaudited Condensed Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. As of August 31, 2014, other assets were reported net of an allowance for credit losses on notes and other contractual receivables of $8 million . During the first quarter of fiscal 2015, the contractual receivables against which the $8 million allowance for credit losses was recorded were written off. As of May 31, 2015 and August 31, 2014 , the Company reported $2 million and $3 million of assets held for sale within prepaid expenses and other current assets in the Unaudited Condensed Consolidated Balance Sheets. See the Other Asset Impairment Charges section of this Note below for tabular presentation of impairment charges recorded by the Company during the three and nine months ended May 31, 2015 and 2014 for the initial and subsequent write-down of certain equipment held for sale to its fair value less cost to sell. 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. Long-Lived Assets The Company tests long-lived tangible and intangible assets for impairment at the asset group level, which is determined based on the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company tests its asset groups for impairment when certain triggering events or changes in circumstances indicate that the carrying value of the asset group may be impaired. If the carrying value of the asset group is not recoverable because it exceeds the Company’s estimate of future undiscounted cash flows from the use and eventual disposition of the asset group, an impairment loss is recognized by the amount the carrying value exceeds its fair value, if any. The impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value. Fair value is determined primarily using the cost and market approaches. During fiscal 2015, the Company recorded impairment charges on long-lived tangible and intangible assets associated with certain regional metals recycling operations and used auto parts store locations. These charges are reported in the Unaudited Condensed Consolidated Statements of Operations within other asset impairment charges or discontinued operations, if related to a component of the Company qualifying for discontinued operations reporting. Impairment charges on long-lived assets were as follows for the three and nine months ended May 31, 2015 (in thousands): Three Months Ended May 31, 2015 Nine Months Ended May 31, 2015 Other asset impairment charges: MRB $ 132 $ 41,676 Discontinued operations — 2,666 Total long-lived asset impairment charges $ 132 $ 44,342 The Company did not record impairment charges on long-lived tangible and intangible assets during the three and nine months ended May 31, 2014 . Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually during the fourth fiscal quarter and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. Impairment of goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). The Company has determined that its reporting units for which goodwill has been allocated are equivalent to the Company’s operating segments, as all of the components of each operating segment meet the criteria for aggregation. When testing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determines that an impairment is more likely than not, the Company is then required to perform the two-step quantitative impairment test, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. In the first step of the two-step quantitative impairment test, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of goodwill, an impairment loss will be recognized in an amount equal to that excess. The Company estimates the fair value of its reporting units using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based weighted average cost of capital (“WACC”) determined separately for each reporting unit. The determination of fair value involves the use of significant estimates and assumptions, including revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, discount rates, benefits associated with a taxable transaction and synergistic benefits available to market participants. In addition, to corroborate the reporting units’ valuation, the Company uses a market approach based on earnings multiple data and a reconciliation of the Company’s estimate of the aggregate fair value of the reporting units to the Company’s market capitalization, including consideration of a control premium. See Note 4 - Goodwill for further detail including the recognition of a goodwill impairment charge of $141 million during the second quarter of fiscal 2015. The Company tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The Company did not record any impairment charges on indefinite-lived intangible assets in any of the periods presented. Other Asset Impairment Charges The following impairment charges were recorded within other asset impairment charges in the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2015 and 2014 (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Long-lived assets $ 132 $ — $ 41,676 $ — Assets held for sale 1,009 — 2,558 928 Other 140 532 885 532 Total $ 1,281 $ 532 $ 45,119 $ 1,460 Derivative Financial Instruments The Company records derivative instruments in prepaid expenses and other current assets or other accrued liabilities in the Unaudited Condensed Consolidated Balance Sheets at fair value, and changes in the fair value are either recognized in other comprehensive income (loss) in the Unaudited Condensed Consolidated Statements of Comprehensive Loss or net income (loss) in the Unaudited 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 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 that 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. When available, quoted market prices or prices obtained through external sources are used to measure a derivative instrument’s fair value. The fair value of these instruments is a function of underlying forward commodity prices or foreign currency exchange rates, related volatility, counterparty creditworthiness and duration of the contracts. Cash flows from derivatives are recognized in the Unaudited Condensed Consolidated Statements of Cash Flows in a manner consistent with the underlying transactions. See 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 with these institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of May 31, 2015 . 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, credit insurance, 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 $48 million and $74 million of open letters of credit relating to accounts receivable as of May 31, 2015 and August 31, 2014 , 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. 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-related costs is measured at its fair value in the period in which the liability is incurred. Restructuring charges that directly involve a discontinued operation are included in the results of discontinued operations in all periods presented. See Note 7 - Restructuring Charges and Other Exit-Related Costs for further detail. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
May. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2014, an accounting standard update was issued that amends the requirements for reporting discontinued operations, which may include a component of an entity or a group of components of an entity. The amendments limit discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity's operations and financial results. The amendments require expanded disclosure about the assets, liabilities, revenues and expenses of discontinued operations. Further, the amendments require an entity to disclose the pretax profit or loss of an individually significant component that is being disposed of that does not qualify for discontinued operations reporting. The standard is applicable to the Company and is to be applied prospectively to all disposals or classifications as held for sale of components that occur beginning in the first quarter of fiscal 2016, and interim periods within that fiscal year, and all businesses that, on acquisition, are classified as held for sale that occur beginning in the first quarter of fiscal 2016, and interim periods within that fiscal year. Upon adoption, the standard will impact how the Company assesses and reports discontinued operations. In May 2014, an accounting standard update was issued that clarifies the principles for recognizing revenue. The guidance is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The standard is effective for the Company beginning in the first quarter of fiscal 2018, including interim periods within that fiscal year. Early application is not permitted. Upon becoming effective, the Company will apply the amendments in the updated standard either retrospectively to each prior reporting period presented, or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company is evaluating the impact of adopting this standard on its consolidated financial position, results of operations and cash flows. In April 2015, an accounting standard update was issued that amends the requirements for presenting debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the debt liability, consistent with the presentation of a debt discount. The standard is effective for the Company beginning in the first quarter of fiscal 2017, including interim periods within that fiscal year, and is to be applied retrospectively to each prior reporting period presented. The Company is evaluating the impact of adopting this standard on its consolidated financial position, results of operations and cash flows. In April 2015, an accounting standard update was issued that clarifies the accounting for cloud computing arrangements that include software licenses. The guidance requires that a cloud computing arrangement that includes a software license be accounted for in the same manner as the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, then it should be accounted for as a service contract. The standard is effective for the Company beginning in the first quarter of fiscal 2017, including interim periods within that fiscal year. The Company is evaluating the impact of adopting this standard on its consolidated financial position, results of operations and cash flows. |
Inventories
Inventories | 9 Months Ended |
May. 31, 2015 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): May 31, 2015 August 31, 2014 Processed and unprocessed scrap metal $ 90,852 $ 106,877 Semi-finished goods (billets) 8,884 12,920 Finished goods 57,417 59,039 Supplies 39,855 37,336 Total inventories $ 197,008 $ 216,172 |
Goodwill
Goodwill | 9 Months Ended |
May. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company tests the goodwill of each of its reporting units annually on July 1 and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. In the second quarter of fiscal 2015, management identified the combination of a significant further weakening in market conditions, continued constrained supply of raw materials due to the lower price environment which negatively impacted volumes, the planned idling or closure of certain production facilities and retail stores, the Company’s recent financial performance and a decline in the Company’s market capitalization during the first half of fiscal 2015 as a triggering event requiring an interim impairment test of goodwill allocated to its reporting units. In connection with the interim impairment test performed in the second quarter of fiscal 2015, the Company used a measurement date of February 1, 2015 . There were no triggering events identified during the third quarter of fiscal 2015 requiring an interim goodwill impairment test. For the MRB reporting unit with goodwill of $141 million as of February 1, 2015, the first step of the impairment test showed that the fair value of the MRB reporting unit was less than its carrying amount, indicating a potential impairment. Based on the second step of the impairment test, the Company concluded that no implied fair value of goodwill remained for the MRB reporting unit, resulting in an impairment of the entire carrying amount of MRB’s goodwill totaling $141 million . For the APB reporting unit with goodwill of $176 million as of February 1, 2015, the estimated fair value of the reporting unit exceeded its carrying value by approximately 20% . The projections used in the income approach for APB took into consideration the impact of current market conditions for ferrous and nonferrous commodities, the cost of obtaining adequate supply flows of end-of-life vehicles and recent trends of self-serve parts sales. The projections assumed a recovery of operating margins from current depressed levels over a multi-year period, including the benefits from recently initiated productivity improvements and cost-saving measures, but remaining significantly below the level of operating margins experienced in fiscal years 2010 and 2011. The market-based WACC used in the income approach for APB was 10.37% . The terminal growth rate used in the discounted cash flow model was 1% . Assuming all other components of the fair value estimate were held constant, an increase in the WACC of 1.5% or more or weaker than anticipated improvements in operating margins could result in a failure of the step one quantitative impairment test for the APB reporting unit. The Company also used a market approach based on earnings multiple data and the Company’s market capitalization to corroborate the reporting units’ valuations. The Company reconciled its market capitalization to the aggregated estimated fair value of its reporting units, including consideration of a control premium representing the estimated amount a market participant would pay to obtain a controlling interest. The implied control premium resulting from the difference between the Company's market capitalization (based on the average trading price of our Class A common stock for the two-week period ended February 1, 2015) and the higher aggregated estimated fair value of its reporting units was within the historical range of average and mean premiums observed on historical transactions within the steel-making, scrap processing and metals industries. The Company identified specific reconciling items, including market participant synergies, which supported the implied control premium as of February 1, 2015. The determination of fair value of the reporting units used to perform the first step of the impairment test requires judgment and involves significant estimates and assumptions about the expected future cash flows and the impact of market conditions on those assumptions. Due to the inherent uncertainty associated with forming these estimates, actual results could differ from those estimates. Future events and changing market conditions may impact the Company’s assumptions as to future revenue growth rates, pace and extent of operating margin and volume recovery, market-based WACC and other factors that may result in changes in the estimates of the Company’s reporting units’ fair value. Although management believes the assumptions used in testing the Company’s reporting units’ goodwill for impairment are reasonable, it is possible that market and economic conditions could deteriorate further or not improve as expected. Additional declines in or a lack of recovery of market conditions from current levels, a trend of weaker than anticipated financial performance including the pace and extent of operating margin recovery for the APB reporting unit, a further deterioration in the Company’s share price from current levels for a sustained period of time, or an increase in the market-based WACC, 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 nine months ended May 31, 2015 were as follows (in thousands): Metals Recycling Business Auto Parts Business Total Balance as of August 31, 2014 $ 146,108 $ 179,795 $ 325,903 Acquisitions — 201 201 Foreign currency translation adjustment (5,087 ) (3,192 ) (8,279 ) Goodwill impairment charge (141,021 ) — (141,021 ) Balance as of May 31, 2015 $ — $ 176,804 $ 176,804 Accumulated goodwill impairment charges were $462 million and $321 million as of May 31, 2015 and August 31, 2014 , respectively. |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
May. 31, 2015 | |
Short-term Debt [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings The Company has an unsecured, uncommitted $25 million credit line with Wells Fargo Bank, N.A. that expires April 1, 2016 . Interest rates are set by the bank at the time of borrowing. The Company had no borrowings outstanding under this credit line as of May 31, 2015 and August 31, 2014 . 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 | 9 Months Ended |
May. 31, 2015 | |
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 nine months ended May 31, 2015 were as follows (in thousands): Reporting Segment Balance as of August 31, 2014 Liabilities Established (Released), Net Payments and Other Balance as of May 31, 2015 Short-Term Long-Term Metals Recycling Business $ 30,139 $ 278 $ (1,097 ) $ 29,320 $ 163 $ 29,157 Auto Parts Business 17,822 233 (349 ) 17,706 242 17,464 Corporate 388 — (88 ) 300 50 250 Total $ 48,349 $ 511 $ (1,534 ) $ 47,326 $ 455 $ 46,871 Metals Recycling Business (“MRB”) As of May 31, 2015 , MRB had environmental liabilities of $29 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 revised by the EPA and the revisions may be significant and could materially impact the scope or cost of remediation. 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 2017 or commence remediation activities until 2024. 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. Further, the Company has a cost sharing arrangement under which a third party is paying 50% of costs, net of insurance recoveries. 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 May 31, 2015 , the Company had environmental liabilities related to various MRB sites other than Portland Harbor of $28 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 May 31, 2015 , the Company had environmental liabilities related to various APB sites of $18 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 May 31, 2015 . 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 Other
Restructuring Charges and Other Exit-Related Costs | 9 Months Ended |
May. 31, 2015 | |
Restructuring Charges, Asset Impairment and Accelerated Depreciation, Including Discontinued Operations [Abstract] | |
Restructuring Charges and Other Exit-Related Costs | Restructuring Charges and Other Exit-Related Costs In the fourth quarter of fiscal 2012, the Company undertook a number of restructuring initiatives designed to extract greater synergies from the significant acquisitions and technology investments made in recent years, achieve further integration between MRB and APB, and realign the Company’s organization to support its future growth and decrease operating expenses by streamlining functions and reducing organizational layers (the “Q4'12 Plan”). 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 “Q1'14 Plan”). In the first quarter of fiscal 2015, the Company announced and began implementing additional productivity initiatives at APB to improve profitability through a combination of revenue drivers and cost reduction initiatives (the “Q1'15 Plan”). At the end of the second quarter of fiscal 2015, the Company initiated additional restructuring and exit-related initiatives by undertaking strategic actions consisting of idling underutilized assets at MRB and initiating the closure of seven APB stores to more closely align the Company's business to the prevalent market conditions. The Company expanded these initiatives in April 2015 by announcing measures aimed at further reducing the Company's annual operating expenses, primarily selling, general and administrative expenses, at Corporate, MRB and APB through headcount reductions, reducing organizational layers, consolidating shared service functions and other non-headcount measures. Collectively, these initiatives are referred to as the "Q2'15 Plan." The vast majority of the restructuring charges require the Company to make cash payments. In addition to the restructuring charges recorded related to these initiatives, the Company incurred other exit-related costs consisting of asset impairments and accelerated depreciation due to shortened useful lives in connection with site closures. Restructuring charges and other exit-related costs were comprised of the following (in thousands): Three Months Ended May 31, 2015 Three Months Ended May 31, 2014 Q1’14 Plan Q1’15 Plan Q2’15 Plan Total Charges Q4’12 Plan Q1’14 Plan Total Charges Restructuring charges: Severance costs $ (5 ) $ — $ 4,040 $ 4,035 $ (31 ) $ 2,192 $ 2,161 Contract termination costs 26 — 1,610 1,636 107 494 601 Other restructuring costs — — 1,609 1,609 — — — Total restructuring charges 21 — 7,259 7,280 76 2,686 2,762 Other exit-related costs: Asset impairments and accelerated depreciation — — 150 150 — — — Total other exit-related costs — — 150 150 — — — Total restructuring charges and other exit-related costs $ 21 $ — $ 7,409 $ 7,430 $ 76 $ 2,686 $ 2,762 Restructuring charges and other exit-related costs included in continuing operations $ 5,978 $ 2,762 Restructuring charges and other exit-related costs included in discontinued operations $ 1,452 $ — Nine Months Ended May 31, 2015 Nine Months Ended May 31, 2014 Q1’14 Plan Q1’15 Plan Q2’15 Plan Total Charges Q4’12 Plan Q1’14 Plan Total Charges Restructuring charges: Severance costs $ (35 ) $ 428 $ 4,580 $ 4,973 $ (44 ) $ 4,450 $ 4,406 Contract termination costs 335 — 1,689 2,024 675 523 1,198 Other restructuring costs — 1,223 1,702 2,925 — 410 410 Total restructuring charges 300 1,651 7,971 9,922 631 5,383 6,014 Other exit-related costs: Asset impairments and accelerated depreciation — — 6,502 6,502 — 566 566 Total other exit-related costs — — 6,502 6,502 — 566 566 Total restructuring charges and other exit-related costs $ 300 $ 1,651 $ 14,473 $ 16,424 $ 631 $ 5,949 $ 6,580 Restructuring charges and other exit-related costs included in continuing operations $ 11,964 $ 6,444 Restructuring charges and other exit-related costs included in discontinued operations $ 4,460 $ 136 Total Charges Q4'12 Plan Q1’14 Plan Q1'15 Plan Q2'15 Plan Total Total restructuring charges to date $ 13,549 $ 6,070 $ 1,651 $ 7,971 $ 29,241 Total expected restructuring charges $ 13,549 $ 6,100 $ 1,651 $ 10,400 $ 31,700 The following illustrates the reconciliation of the restructuring liability by major type of costs for the nine months ended May 31, 2015 (in thousands): All Other Plans Q2’15 Plan All Plans Balance 8/31/2014 Charges Payments and Other Balance 5/31/2015 Balance 8/31/2014 Charges Payments and Other Balance 5/31/2015 Total Charges to Date Total Expected Charges Severance costs $ 669 $ 393 $ (1,060 ) $ 2 $ — $ 4,580 $ (2,202 ) $ 2,378 $ 14,764 $ 16,400 Contract termination costs 1,489 335 (1,216 ) 608 — 1,689 — 1,689 7,077 7,200 Other restructuring costs — 1,223 (1,223 ) — — 1,702 (1,248 ) 454 7,400 8,100 Total $ 2,158 $ 1,951 $ (3,499 ) $ 610 $ — $ 7,971 $ (3,450 ) $ 4,521 $ 29,241 $ 31,700 Due to the immateriality of the activity and liability balances for each of the Q4'12 Plan, Q1'14 Plan and Q1'15 Plan, the reconciliation of the restructuring liability is provided in aggregate. The amounts of restructuring charges and other exit-related costs relating to each segment and discontinued operations were as follows (in thousands): Three Months Ended May 31, Nine Months Ended May 31, Total Charges to Date Total Expected Charges 2015 2014 2015 2014 Restructuring charges: Metals Recycling Business $ 2,907 $ 1,818 $ 3,484 $ 3,969 $ 12,163 $ 12,550 Auto Parts Business 1,110 466 2,776 826 4,305 5,250 Unallocated (Corporate) 1,811 478 1,868 1,083 10,979 12,000 Discontinued operations 1,452 — 1,794 136 1,794 1,900 Total restructuring charges 7,280 2,762 9,922 6,014 29,241 31,700 Other exit-related costs: Metals Recycling Business 150 — 3,385 566 3,951 Auto Parts Business — — 451 — 451 Discontinued operations — — 2,666 — 2,666 Total other exit-related costs 150 — 6,502 566 7,068 Total restructuring charges and other exit-related costs $ 7,430 $ 2,762 $ 16,424 $ 6,580 $ 36,309 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. |
Changes in Equity
Changes in Equity | 9 Months Ended |
May. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Changes in Equity | Changes in Equity The following is a summary of the changes in equity for the nine months ended May 31, 2015 and 2014 (in thousands): Fiscal 2015 Fiscal 2014 SSI Shareholders’ Equity Noncontrolling Interests Total Equity SSI Shareholders’ Equity Noncontrolling Interests Total Equity Balance - September 1 (Beginning of period) $ 770,784 $ 5,193 $ 775,977 $ 776,558 $ 4,641 $ 781,199 Net income (loss) (207,740 ) 1,318 (206,422 ) (1,328 ) 2,726 1,398 Other comprehensive loss, net of tax (21,096 ) — (21,096 ) (3,521 ) — (3,521 ) Distributions to noncontrolling interests — (2,263 ) (2,263 ) — (1,794 ) (1,794 ) Restricted stock withheld for taxes (1,360 ) — (1,360 ) (676 ) — (676 ) Stock options exercised — — — 240 — 240 Share-based compensation 7,596 — 7,596 10,257 — 10,257 Excess tax deficiency from stock options exercised and restricted stock units vested (703 ) — (703 ) (692 ) — (692 ) Dividends (15,415 ) — (15,415 ) (15,185 ) — (15,185 ) Balance - May 31 (End of period) $ 532,066 $ 4,248 $ 536,314 $ 765,653 $ 5,573 $ 771,226 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
May. 31, 2015 | |
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, were comprised of the following (in thousands): Three Months Ended May 31, 2015 Three Months Ended May 31, 2014 Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balances - February 28 (Beginning of period) $ (30,536 ) $ (1,977 ) $ (3,635 ) $ (36,148 ) $ (13,002 ) $ (2,728 ) $ (229 ) $ (15,959 ) Other comprehensive income before reclassifications 250 — 215 465 2,620 — 511 3,131 Income tax expense — — — — — — (128 ) (128 ) Other comprehensive income before reclassifications, net of tax 250 — 215 465 2,620 — 383 3,003 Amounts reclassified from accumulated other comprehensive loss — 473 1,645 2,118 — 71 37 108 Income tax benefit — (172 ) — (172 ) — (26 ) (8 ) (34 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 301 1,645 1,946 — 45 29 74 Net periodic other comprehensive income 250 301 1,860 2,411 2,620 45 412 3,077 Balances - May 31 (End of period) $ (30,286 ) $ (1,676 ) $ (1,775 ) $ (33,737 ) $ (10,382 ) $ (2,683 ) $ 183 $ (12,882 ) Nine Months Ended May 31, 2015 Nine Months Ended May 31, 2014 Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balances - September 1 (Beginning of period) $ (10,663 ) $ (2,036 ) $ 58 $ (12,641 ) $ (6,423 ) $ (2,817 ) $ (121 ) $ (9,361 ) Other comprehensive loss before reclassifications (19,623 ) — (4,921 ) (24,544 ) (3,959 ) — 205 (3,754 ) Income tax benefit (expense) — — 428 428 — — (51 ) (51 ) Other comprehensive income (loss) before reclassifications, net of tax (19,623 ) — (4,493 ) (24,116 ) (3,959 ) — 154 (3,805 ) Amounts reclassified from accumulated other comprehensive loss — 560 2,999 3,559 — 211 135 346 Income tax (benefit) expense — (200 ) (339 ) (539 ) — (77 ) 15 (62 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 360 2,660 3,020 — 134 150 284 Net periodic other comprehensive income (loss) (19,623 ) 360 (1,833 ) (21,096 ) (3,959 ) 134 304 (3,521 ) Balances - May 31 (End of period) $ (30,286 ) $ (1,676 ) $ (1,775 ) $ (33,737 ) $ (10,382 ) $ (2,683 ) $ 183 $ (12,882 ) Reclassifications from accumulated other comprehensive loss, both individually and in the aggregate, were immaterial to the impacted captions in the Unaudited Condensed Consolidated Statements of Operations. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
May. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In the third quarter of fiscal 2015, the Company ceased operations at seven auto parts stores, six of which qualified for discontinued operations reporting. The operations of the six qualifying stores had previously been reported within the APB reporting segment. Operating results of discontinued operations were comprised of the following (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Revenues $ 1,440 $ 3,994 $ 8,210 $ 11,896 Loss from discontinued operations before income taxes (1,812 ) (940 ) (7,070 ) (3,353 ) Income tax benefit 578 610 756 1,038 Loss from discontinued operations, net of tax $ (1,234 ) $ (330 ) $ (6,314 ) $ (2,315 ) |
Fair Value Disclosure
Fair Value Disclosure | 9 Months Ended |
May. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurements The following table presents information about the Company’s assets and liabilities measured at fair value as of May 31, 2015 and August 31, 2014 , 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 May 31, 2015 August 31, 2014 Assets: Foreign currency exchange forward contracts $ 52 $ 202 Level 2 Recurring Prepaid expenses and other current assets Total assets $ 52 $ 202 Liabilities: Contract termination costs $ (1,582 ) $ — Level 3 Non-recurring Other accrued liabilities Other long-term liabilities Foreign currency exchange forward contracts (2,001 ) (46 ) Level 2 Recurring Other accrued liabilities Total liabilities $ (3,583 ) $ (46 ) |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
May. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments 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. Once the U.S. dollar-denominated sales have been recognized and the corresponding receivables collected, the Company utilized foreign currency exchange forward contracts to sell Canadian dollars, achieving a result similar to net settling the contracts to sell U.S. dollars. The foreign currency exchange forward contracts to sell Canadian dollars are not designated as hedging instruments. As of May 31, 2015 , the Company had foreign currency exchange forward contracts with external counterparties to buy Canadian Dollars for a total notional amount of $20 million , which have various settlement dates through September 30, 2015 , and foreign currency exchange forward contracts with external counterparties to sell Canadian Dollars for a total notional amount of $3 million , all of which have a settlement date of June 30, 2015 . The contracts with external counterparties are reported at fair value in the Unaudited Condensed Consolidated Balance Sheets measured using quoted foreign currency exchange rates. The fair value of derivative instruments in the Unaudited Condensed Consolidated Balance Sheets is as follows (in thousands): Asset (Liability) Derivatives Balance Sheet Location May 31, 2015 August 31, 2014 Foreign currency exchange forward contracts Prepaid expenses and other current assets $ 52 $ 202 Foreign currency exchange forward contracts Other accrued liabilities $ (2,001 ) $ (46 ) The results of foreign currency exchange derivatives are comprised of the following (in thousands): Derivative Gain (Loss) Recognized Three Months Ended May 31, 2015 Three Months Ended May 31, 2014 Other Comprehensive Income (Loss) Revenues - Effective Portion Other Income (Expense), net Other Comprehensive Income (Loss) Revenues - Effective Portion Other Income (Expense), net Foreign currency exchange forward contracts - designated as cash flow hedges $ 215 $ (1,645 ) $ 27 $ 511 $ 37 $ 314 Foreign currency exchange forward contracts - not designated as cash flow hedges $ — $ — $ (143 ) $ — $ — $ (171 ) Derivative Gain (Loss) Recognized Nine Months Ended May 31, 2015 Nine Months Ended May 31, 2014 Other Comprehensive Income (Loss) Revenues - Effective Portion Other Income (Expense), net Other Comprehensive Income (Loss) Revenues - Effective Portion Other Income (Expense), net Foreign currency exchange forward contracts - designated as cash flow hedges $ (4,921 ) $ (2,999 ) $ 202 $ 205 $ 37 $ 314 Foreign currency exchange forward contracts - not designated as cash flow hedges $ — $ — $ (265 ) $ — $ — $ (171 ) There was no hedge ineffectiveness with respect to the forward currency exchange cash flow hedges for the three and nine months ended May 31, 2015 and 2014 . |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
May. 31, 2015 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation In the first quarter of fiscal 2015, 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 268,988 restricted stock units (“RSUs”) and 268,988 performance share awards to the Company's key employees and officers under the Company’s 1993 Amended and Restated Stock Incentive Plan. The RSUs have a five -year term and vest 20% per year commencing October 31, 2015. The fair value of the RSUs granted was based on the market closing price of the underlying Class A common stock on the grant date and totaled $6 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 2015 and fiscal 2016. The performance targets are based on the Company's EBITDA (weighted at 50% ) and return on equity (weighted at 50% ) for the two years of the performance period, with award payouts ranging from a threshold of 50% to a maximum of 200% for each portion of the awards. 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 $6 million . In the second quarter of fiscal 2015, the Company granted deferred stock units ("DSU") to each of its non-employee directors under the Company's 1993 Stock Incentive Plan. Each DSU gives the director the right to receive one share of Class A common stock at a future date. The grant included an aggregate of 43,347 shares that will vest on the day before the Company's 2016 annual meeting, subject to continued Board service. The total value of these awards is not material. 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. |
Income Taxes
Income Taxes | 9 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the Company’s continuing operations for each of the three and nine months ended May 31, 2015 was an expense of 22.1% and a benefit of 3.9% , compared to a benefit of 695.4% and 730.6% , respectively, for the three and nine months ended May 31, 2014 . A reconciliation of the difference between the federal statutory rate and the Company’s effective rate is as follows: Three Months Ended May 31, Nine Months Ended May 31, 2015 (1) 2014 2015 (1) 2014 Federal statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State taxes, net of credits 4.7 (8.3 ) 1.2 (48.1 ) Foreign income taxed at different rates (0.5 ) (77.6 ) (7.4 ) (12.9 ) Non-deductible officers’ compensation (0.6 ) (2.4 ) (0.2 ) 2.3 Noncontrolling interests (0.8 ) 8.3 0.4 (9.5 ) Research and development credits 7.4 — 0.3 — Fixed asset tax basis adjustment — (406.0 ) — (513.5 ) Tax return to provision adjustment (6.5 ) (32.6 ) (0.2 ) (40.8 ) Valuation allowance on deferred tax assets (54.3 ) (195.7 ) (21.5 ) (158.0 ) Non-deductible goodwill (5.0 ) — (2.8 ) — Unrecognized tax benefits (4.0 ) (16.7 ) (0.6 ) 14.9 Other non-deductible expenses 2.7 (1.7 ) (0.4 ) 1.8 Other (0.2 ) 2.3 0.1 (1.8 ) Effective tax rate (22.1 )% (695.4 )% 3.9 % (730.6 )% _____________________________ (1) For periods with reported pre-tax losses, the effect of reconciling items with positive signs is tax benefit in excess of the benefit calculated by applying the federal statutory rate to the pre-tax loss. The effective tax rates for the third quarter and first nine months of fiscal 2015 were impacted primarily by the recognition of valuation allowances of $4 million and $46 million , respectively, on projected tax benefits in domestic and foreign taxing jurisdictions. The deferred tax assets for which a valuation allowance was recorded were related primarily to deductible temporary differences created in the first nine months of fiscal 2015 by goodwill and other asset impairment charges. The Company has valuation allowances on substantially all of its deferred tax assets as of May 31, 2015. The valuation allowance was recognized as a result of negative evidence, including recent losses, outweighing the more subjective positive evidence, indicating that it is more likely than not that the associated tax benefits will not be realized. Realization of deferred tax assets is dependent upon the Company generating a consistent trend of profitability to objectively forecast sufficient taxable income in domestic and foreign tax jurisdictions in future years to obtain benefit from the reversal of net deductible temporary differences and from utilization of net operating losses. The effective tax rate for the first nine months of fiscal 2014 was impacted primarily by a discrete tax benefit of $2 million related to the adjustment of the tax basis in certain fixed assets, as well as the impact of applying a projected annual effective tax rate in excess of the federal statutory rate to the low absolute level of pre-tax results for the period. The effective tax rate for the third quarter of fiscal 2014 benefited primarily from the fixed asset tax basis adjustment of $2 million and the partial realization of previously reserved tax benefits as a result of taxable income in a foreign jurisdiction generated during the period. The Company files federal and state income tax returns in the U.S. and foreign tax returns in Puerto Rico and Canada. For U.S. federal income tax returns, fiscal years 2011 to 2014 remain subject to examination. At this time, the Company is not under examination in any of its taxing jurisdictions. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
May. 31, 2015 | |
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 May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Income (loss) from continuing operations $ (7,707 ) $ 4,454 $ (200,108 ) $ 3,713 Net income attributable to noncontrolling interests (687 ) (1,014 ) (1,318 ) (2,726 ) Income (loss) from continuing operations attributable to SSI (8,394 ) 3,440 (201,426 ) 987 Loss from discontinued operations, net of tax (1,234 ) (330 ) (6,314 ) (2,315 ) Net income (loss) attributable to SSI $ (9,628 ) $ 3,110 $ (207,740 ) $ (1,328 ) Computation of shares: Weighted average common shares outstanding, basic 27,043 26,853 27,003 26,811 Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs — 164 — — Weighted average common shares outstanding, diluted 27,043 27,017 27,003 26,811 Common stock equivalent shares of 1,362,408 were considered antidilutive and were excluded from the calculation of diluted net loss per share for each of the three and nine months ended May 31, 2015 , compared to the 501,511 and 1,184,755 common stock equivalent shares for the three and nine months ended May 31, 2014 . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
May. 31, 2015 | |
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 $4 million and $8 million for the three months ended May 31, 2015 and 2014 , respectively, and $17 million and $22 million for the nine months ended May 31, 2015 and 2014 , respectively. Net advances to these joint ventures were zero and $2 million for the three months ended May 31, 2015 and 2014 , respectively, and zero and $4 million for the nine months ended May 31, 2015 and 2014 . Amounts receivable from joint venture partners were zero and $1 million as of May 31, 2015 and August 31, 2014 , respectively. Thomas D. Klauer, Jr., who had been President of the Company’s Auto Parts Business prior to his retirement on January 5, 2015 , is the sole shareholder of a corporation that is the 25% minority partner in a partnership in which the Company is the 75% partner and which operates five self-service stores in Northern California. Mr. Klauer’s 25% share of the profits of this partnership totaled $1 million through the date of his retirement in January 2015, and $1 million and $2 million for the three and nine months ended May 31, 2014 , respectively. The partnership leases properties from entities in which Mr. Klauer has ownership interests under agreements that expire in December 2020 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 through the date of his retirement in January 2015, and less than $1 million for each of the three and nine months ended May 31, 2014 . |
Segment Information
Segment Information | 9 Months Ended |
May. 31, 2015 | |
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 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 results of discontinued operations are excluded from segment operating income and are presented separately, net of tax, from the results of ongoing operations for all periods presented. The table below illustrates the Company’s operating results from continuing operations by reporting segment (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Revenues: Metals Recycling Business: Revenues $ 363,041 $ 516,841 $ 1,159,861 $ 1,542,840 Less: Intersegment revenues (37,899 ) (43,519 ) (137,909 ) (138,410 ) MRB external customer revenues 325,142 473,322 1,021,952 1,404,430 Auto Parts Business: Revenues 60,291 79,602 203,577 227,695 Less: Intersegment revenues (13,063 ) (19,490 ) (50,431 ) (58,580 ) APB external customer revenues 47,228 60,112 153,146 169,115 Steel Manufacturing Business: Revenues 94,939 102,039 283,284 271,618 Total revenues $ 467,309 $ 635,473 $ 1,458,382 $ 1,845,163 The table below illustrates the reconciliation of the Company’s segment operating income (loss) to income (loss) from continuing operations before income taxes (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Metals Recycling Business $ 1,017 $ 3,736 $ (183,740 ) $ 14,932 Auto Parts Business 3,145 7,702 3,812 19,981 Steel Manufacturing Business 4,343 4,594 14,350 9,912 Segment operating income (loss) 8,505 16,032 (165,578 ) 44,825 Restructuring charges and other exit-related costs (5,978 ) (2,762 ) (11,964 ) (6,444 ) Corporate and eliminations (6,547 ) (10,673 ) (26,704 ) (30,594 ) Operating income (loss) (4,020 ) 2,597 (204,246 ) 7,787 Interest expense (2,375 ) (2,529 ) (7,044 ) (7,944 ) Other income, net 84 492 3,011 604 Income (loss) from continuing operations before income taxes $ (6,311 ) $ 560 $ (208,279 ) $ 447 The following is a summary of the Company’s total assets by reporting segment (in thousands): May 31, 2015 August 31, 2014 Metals Recycling Business (1) $ 1,132,078 $ 1,343,771 Auto Parts Business 354,510 361,411 Steel Manufacturing Business 363,254 350,344 Total segment assets 1,849,842 2,055,526 Corporate and eliminations (839,543 ) (700,316 ) Total assets $ 1,010,299 $ 1,355,210 _____________________________ (1) MRB total assets include $15 million as of May 31, 2015 and August 31, 2014 , for investments in joint venture partnerships. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
May. 31, 2015 | |
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, 2014 . The results for the three and nine months ended May 31, 2015 and 2014 are not necessarily indicative of the results of operations for the entire fiscal year. |
Accounting Changes | Accounting Changes In July 2013, an accounting standards update was issued that clarifies the financial statement presentation of certain unrecognized tax benefits. The amendments require that an unrecognized tax benefit be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that such carryforwards and losses are not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, in which case the unrecognized tax benefit should be presented in the financial statements as a liability. The Company adopted the new requirement in the first quarter of fiscal 2015 with no significant impact to the Unaudited Condensed Consolidated Financial Statements. |
Discontinued Operations | Discontinued Operations The results of discontinued operations are presented separately, net of tax, from the results of ongoing operations for all periods presented. The expenses included in the results of discontinued operations are the direct operating expenses incurred by the disposed components that may be reasonably segregated from the costs of the ongoing operations of the Company. See Note 10 - Discontinued Operations 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 $19 million and $35 million as of May 31, 2015 and August 31, 2014 , respectively. |
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 Unaudited Condensed Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. As of August 31, 2014, other assets were reported net of an allowance for credit losses on notes and other contractual receivables of $8 million . During the first quarter of fiscal 2015, the contractual receivables against which the $8 million allowance for credit losses was recorded were written off. As of May 31, 2015 and August 31, 2014 , the Company reported $2 million and $3 million of assets held for sale within prepaid expenses and other current assets in the Unaudited Condensed Consolidated Balance Sheets. See the Other Asset Impairment Charges section of this Note below for tabular presentation of impairment charges recorded by the Company during the three and nine months ended May 31, 2015 and 2014 for the initial and subsequent write-down of certain equipment held for sale to its fair value less cost to sell. 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. |
Long-Lived Assets | Long-Lived Assets The Company tests long-lived tangible and intangible assets for impairment at the asset group level, which is determined based on the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company tests its asset groups for impairment when certain triggering events or changes in circumstances indicate that the carrying value of the asset group may be impaired. If the carrying value of the asset group is not recoverable because it exceeds the Company’s estimate of future undiscounted cash flows from the use and eventual disposition of the asset group, an impairment loss is recognized by the amount the carrying value exceeds its fair value, if any. The impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value. Fair value is determined primarily using the cost and market approaches. During fiscal 2015, the Company recorded impairment charges on long-lived tangible and intangible assets associated with certain regional metals recycling operations and used auto parts store locations. These charges are reported in the Unaudited Condensed Consolidated Statements of Operations within other asset impairment charges or discontinued operations, if related to a component of the Company qualifying for discontinued operations reporting. Impairment charges on long-lived assets were as follows for the three and nine months ended May 31, 2015 (in thousands): Three Months Ended May 31, 2015 Nine Months Ended May 31, 2015 Other asset impairment charges: MRB $ 132 $ 41,676 Discontinued operations — 2,666 Total long-lived asset impairment charges $ 132 $ 44,342 The Company did not record impairment charges on long-lived tangible and intangible assets during the three and nine months ended May 31, 2014 . |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually during the fourth fiscal quarter and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. Impairment of goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). The Company has determined that its reporting units for which goodwill has been allocated are equivalent to the Company’s operating segments, as all of the components of each operating segment meet the criteria for aggregation. When testing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determines that an impairment is more likely than not, the Company is then required to perform the two-step quantitative impairment test, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. In the first step of the two-step quantitative impairment test, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of goodwill, an impairment loss will be recognized in an amount equal to that excess. The Company estimates the fair value of its reporting units using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based weighted average cost of capital (“WACC”) determined separately for each reporting unit. The determination of fair value involves the use of significant estimates and assumptions, including revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, discount rates, benefits associated with a taxable transaction and synergistic benefits available to market participants. In addition, to corroborate the reporting units’ valuation, the Company uses a market approach based on earnings multiple data and a reconciliation of the Company’s estimate of the aggregate fair value of the reporting units to the Company’s market capitalization, including consideration of a control premium. See Note 4 - Goodwill for further detail including the recognition of a goodwill impairment charge of $141 million during the second quarter of fiscal 2015. The Company tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The Company did not record any impairment charges on indefinite-lived intangible assets in any of the periods presented. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records derivative instruments in prepaid expenses and other current assets or other accrued liabilities in the Unaudited Condensed Consolidated Balance Sheets at fair value, and changes in the fair value are either recognized in other comprehensive income (loss) in the Unaudited Condensed Consolidated Statements of Comprehensive Loss or net income (loss) in the Unaudited 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 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 that 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. When available, quoted market prices or prices obtained through external sources are used to measure a derivative instrument’s fair value. The fair value of these instruments is a function of underlying forward commodity prices or foreign currency exchange rates, related volatility, counterparty creditworthiness and duration of the contracts. Cash flows from derivatives are recognized in the Unaudited Condensed Consolidated Statements of Cash Flows in a manner consistent with the underlying transactions. See 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 with these institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of May 31, 2015 . 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, credit insurance, 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 $48 million and $74 million of open letters of credit relating to accounts receivable as of May 31, 2015 and August 31, 2014 , 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. |
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-related costs is measured at its fair value in the period in which the liability is incurred. Restructuring charges that directly involve a discontinued operation are included in the results of discontinued operations in all periods presented. See Note 7 - Restructuring Charges and Other Exit-Related Costs for further detail. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Asset Impairments [Table Text Block] | Impairment charges on long-lived assets were as follows for the three and nine months ended May 31, 2015 (in thousands): Three Months Ended May 31, 2015 Nine Months Ended May 31, 2015 Other asset impairment charges: MRB $ 132 $ 41,676 Discontinued operations — 2,666 Total long-lived asset impairment charges $ 132 $ 44,342 The following impairment charges were recorded within other asset impairment charges in the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2015 and 2014 (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Long-lived assets $ 132 $ — $ 41,676 $ — Assets held for sale 1,009 — 2,558 928 Other 140 532 885 532 Total $ 1,281 $ 532 $ 45,119 $ 1,460 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
May. 31, 2015 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following (in thousands): May 31, 2015 August 31, 2014 Processed and unprocessed scrap metal $ 90,852 $ 106,877 Semi-finished goods (billets) 8,884 12,920 Finished goods 57,417 59,039 Supplies 39,855 37,336 Total inventories $ 197,008 $ 216,172 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
May. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The gross changes in the carrying amount of goodwill by reporting segment for the nine months ended May 31, 2015 were as follows (in thousands): Metals Recycling Business Auto Parts Business Total Balance as of August 31, 2014 $ 146,108 $ 179,795 $ 325,903 Acquisitions — 201 201 Foreign currency translation adjustment (5,087 ) (3,192 ) (8,279 ) Goodwill impairment charge (141,021 ) — (141,021 ) Balance as of May 31, 2015 $ — $ 176,804 $ 176,804 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
May. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Reserves For Environmental Liabilities | Changes in the Company’s environmental liabilities for the nine months ended May 31, 2015 were as follows (in thousands): Reporting Segment Balance as of August 31, 2014 Liabilities Established (Released), Net Payments and Other Balance as of May 31, 2015 Short-Term Long-Term Metals Recycling Business $ 30,139 $ 278 $ (1,097 ) $ 29,320 $ 163 $ 29,157 Auto Parts Business 17,822 233 (349 ) 17,706 242 17,464 Corporate 388 — (88 ) 300 50 250 Total $ 48,349 $ 511 $ (1,534 ) $ 47,326 $ 455 $ 46,871 |
Restructuring Charges and Oth29
Restructuring Charges and Other Exit-Related Costs (Tables) | 9 Months Ended |
May. 31, 2015 | |
Restructuring Charges, Asset Impairment and Accelerated Depreciation, Including Discontinued Operations [Abstract] | |
Restructuring and Related Costs | Restructuring charges and other exit-related costs were comprised of the following (in thousands): Three Months Ended May 31, 2015 Three Months Ended May 31, 2014 Q1’14 Plan Q1’15 Plan Q2’15 Plan Total Charges Q4’12 Plan Q1’14 Plan Total Charges Restructuring charges: Severance costs $ (5 ) $ — $ 4,040 $ 4,035 $ (31 ) $ 2,192 $ 2,161 Contract termination costs 26 — 1,610 1,636 107 494 601 Other restructuring costs — — 1,609 1,609 — — — Total restructuring charges 21 — 7,259 7,280 76 2,686 2,762 Other exit-related costs: Asset impairments and accelerated depreciation — — 150 150 — — — Total other exit-related costs — — 150 150 — — — Total restructuring charges and other exit-related costs $ 21 $ — $ 7,409 $ 7,430 $ 76 $ 2,686 $ 2,762 Restructuring charges and other exit-related costs included in continuing operations $ 5,978 $ 2,762 Restructuring charges and other exit-related costs included in discontinued operations $ 1,452 $ — Nine Months Ended May 31, 2015 Nine Months Ended May 31, 2014 Q1’14 Plan Q1’15 Plan Q2’15 Plan Total Charges Q4’12 Plan Q1’14 Plan Total Charges Restructuring charges: Severance costs $ (35 ) $ 428 $ 4,580 $ 4,973 $ (44 ) $ 4,450 $ 4,406 Contract termination costs 335 — 1,689 2,024 675 523 1,198 Other restructuring costs — 1,223 1,702 2,925 — 410 410 Total restructuring charges 300 1,651 7,971 9,922 631 5,383 6,014 Other exit-related costs: Asset impairments and accelerated depreciation — — 6,502 6,502 — 566 566 Total other exit-related costs — — 6,502 6,502 — 566 566 Total restructuring charges and other exit-related costs $ 300 $ 1,651 $ 14,473 $ 16,424 $ 631 $ 5,949 $ 6,580 Restructuring charges and other exit-related costs included in continuing operations $ 11,964 $ 6,444 Restructuring charges and other exit-related costs included in discontinued operations $ 4,460 $ 136 Total Charges Q4'12 Plan Q1’14 Plan Q1'15 Plan Q2'15 Plan Total Total restructuring charges to date $ 13,549 $ 6,070 $ 1,651 $ 7,971 $ 29,241 Total expected restructuring charges $ 13,549 $ 6,100 $ 1,651 $ 10,400 $ 31,700 |
Schedule of Restructuring Reserve by Type of Cost | The following illustrates the reconciliation of the restructuring liability by major type of costs for the nine months ended May 31, 2015 (in thousands): All Other Plans Q2’15 Plan All Plans Balance 8/31/2014 Charges Payments and Other Balance 5/31/2015 Balance 8/31/2014 Charges Payments and Other Balance 5/31/2015 Total Charges to Date Total Expected Charges Severance costs $ 669 $ 393 $ (1,060 ) $ 2 $ — $ 4,580 $ (2,202 ) $ 2,378 $ 14,764 $ 16,400 Contract termination costs 1,489 335 (1,216 ) 608 — 1,689 — 1,689 7,077 7,200 Other restructuring costs — 1,223 (1,223 ) — — 1,702 (1,248 ) 454 7,400 8,100 Total $ 2,158 $ 1,951 $ (3,499 ) $ 610 $ — $ 7,971 $ (3,450 ) $ 4,521 $ 29,241 $ 31,700 |
Schedule of Restructuring and Related Activities By Segment | The amounts of restructuring charges and other exit-related costs relating to each segment and discontinued operations were as follows (in thousands): Three Months Ended May 31, Nine Months Ended May 31, Total Charges to Date Total Expected Charges 2015 2014 2015 2014 Restructuring charges: Metals Recycling Business $ 2,907 $ 1,818 $ 3,484 $ 3,969 $ 12,163 $ 12,550 Auto Parts Business 1,110 466 2,776 826 4,305 5,250 Unallocated (Corporate) 1,811 478 1,868 1,083 10,979 12,000 Discontinued operations 1,452 — 1,794 136 1,794 1,900 Total restructuring charges 7,280 2,762 9,922 6,014 29,241 31,700 Other exit-related costs: Metals Recycling Business 150 — 3,385 566 3,951 Auto Parts Business — — 451 — 451 Discontinued operations — — 2,666 — 2,666 Total other exit-related costs 150 — 6,502 566 7,068 Total restructuring charges and other exit-related costs $ 7,430 $ 2,762 $ 16,424 $ 6,580 $ 36,309 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 9 Months Ended |
May. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following is a summary of the changes in equity for the nine months ended May 31, 2015 and 2014 (in thousands): Fiscal 2015 Fiscal 2014 SSI Shareholders’ Equity Noncontrolling Interests Total Equity SSI Shareholders’ Equity Noncontrolling Interests Total Equity Balance - September 1 (Beginning of period) $ 770,784 $ 5,193 $ 775,977 $ 776,558 $ 4,641 $ 781,199 Net income (loss) (207,740 ) 1,318 (206,422 ) (1,328 ) 2,726 1,398 Other comprehensive loss, net of tax (21,096 ) — (21,096 ) (3,521 ) — (3,521 ) Distributions to noncontrolling interests — (2,263 ) (2,263 ) — (1,794 ) (1,794 ) Restricted stock withheld for taxes (1,360 ) — (1,360 ) (676 ) — (676 ) Stock options exercised — — — 240 — 240 Share-based compensation 7,596 — 7,596 10,257 — 10,257 Excess tax deficiency from stock options exercised and restricted stock units vested (703 ) — (703 ) (692 ) — (692 ) Dividends (15,415 ) — (15,415 ) (15,185 ) — (15,185 ) Balance - May 31 (End of period) $ 532,066 $ 4,248 $ 536,314 $ 765,653 $ 5,573 $ 771,226 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
May. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive loss, net of tax, were comprised of the following (in thousands): Three Months Ended May 31, 2015 Three Months Ended May 31, 2014 Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balances - February 28 (Beginning of period) $ (30,536 ) $ (1,977 ) $ (3,635 ) $ (36,148 ) $ (13,002 ) $ (2,728 ) $ (229 ) $ (15,959 ) Other comprehensive income before reclassifications 250 — 215 465 2,620 — 511 3,131 Income tax expense — — — — — — (128 ) (128 ) Other comprehensive income before reclassifications, net of tax 250 — 215 465 2,620 — 383 3,003 Amounts reclassified from accumulated other comprehensive loss — 473 1,645 2,118 — 71 37 108 Income tax benefit — (172 ) — (172 ) — (26 ) (8 ) (34 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 301 1,645 1,946 — 45 29 74 Net periodic other comprehensive income 250 301 1,860 2,411 2,620 45 412 3,077 Balances - May 31 (End of period) $ (30,286 ) $ (1,676 ) $ (1,775 ) $ (33,737 ) $ (10,382 ) $ (2,683 ) $ 183 $ (12,882 ) Nine Months Ended May 31, 2015 Nine Months Ended May 31, 2014 Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balances - September 1 (Beginning of period) $ (10,663 ) $ (2,036 ) $ 58 $ (12,641 ) $ (6,423 ) $ (2,817 ) $ (121 ) $ (9,361 ) Other comprehensive loss before reclassifications (19,623 ) — (4,921 ) (24,544 ) (3,959 ) — 205 (3,754 ) Income tax benefit (expense) — — 428 428 — — (51 ) (51 ) Other comprehensive income (loss) before reclassifications, net of tax (19,623 ) — (4,493 ) (24,116 ) (3,959 ) — 154 (3,805 ) Amounts reclassified from accumulated other comprehensive loss — 560 2,999 3,559 — 211 135 346 Income tax (benefit) expense — (200 ) (339 ) (539 ) — (77 ) 15 (62 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 360 2,660 3,020 — 134 150 284 Net periodic other comprehensive income (loss) (19,623 ) 360 (1,833 ) (21,096 ) (3,959 ) 134 304 (3,521 ) Balances - May 31 (End of period) $ (30,286 ) $ (1,676 ) $ (1,775 ) $ (33,737 ) $ (10,382 ) $ (2,683 ) $ 183 $ (12,882 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
May. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Operating results of discontinued operations were comprised of the following (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Revenues $ 1,440 $ 3,994 $ 8,210 $ 11,896 Loss from discontinued operations before income taxes (1,812 ) (940 ) (7,070 ) (3,353 ) Income tax benefit 578 610 756 1,038 Loss from discontinued operations, net of tax $ (1,234 ) $ (330 ) $ (6,314 ) $ (2,315 ) |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 9 Months Ended |
May. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following table presents information about the Company’s assets and liabilities measured at fair value as of May 31, 2015 and August 31, 2014 , 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 May 31, 2015 August 31, 2014 Assets: Foreign currency exchange forward contracts $ 52 $ 202 Level 2 Recurring Prepaid expenses and other current assets Total assets $ 52 $ 202 Liabilities: Contract termination costs $ (1,582 ) $ — Level 3 Non-recurring Other accrued liabilities Other long-term liabilities Foreign currency exchange forward contracts (2,001 ) (46 ) Level 2 Recurring Other accrued liabilities Total liabilities $ (3,583 ) $ (46 ) |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 9 Months Ended |
May. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position | The fair value of derivative instruments in the Unaudited Condensed Consolidated Balance Sheets is as follows (in thousands): Asset (Liability) Derivatives Balance Sheet Location May 31, 2015 August 31, 2014 Foreign currency exchange forward contracts Prepaid expenses and other current assets $ 52 $ 202 Foreign currency exchange forward contracts Other accrued liabilities $ (2,001 ) $ (46 ) The results of foreign currency exchange derivatives are comprised of the following (in thousands): Derivative Gain (Loss) Recognized Three Months Ended May 31, 2015 Three Months Ended May 31, 2014 Other Comprehensive Income (Loss) Revenues - Effective Portion Other Income (Expense), net Other Comprehensive Income (Loss) Revenues - Effective Portion Other Income (Expense), net Foreign currency exchange forward contracts - designated as cash flow hedges $ 215 $ (1,645 ) $ 27 $ 511 $ 37 $ 314 Foreign currency exchange forward contracts - not designated as cash flow hedges $ — $ — $ (143 ) $ — $ — $ (171 ) Derivative Gain (Loss) Recognized Nine Months Ended May 31, 2015 Nine Months Ended May 31, 2014 Other Comprehensive Income (Loss) Revenues - Effective Portion Other Income (Expense), net Other Comprehensive Income (Loss) Revenues - Effective Portion Other Income (Expense), net Foreign currency exchange forward contracts - designated as cash flow hedges $ (4,921 ) $ (2,999 ) $ 202 $ 205 $ 37 $ 314 Foreign currency exchange forward contracts - not designated as cash flow hedges $ — $ — $ (265 ) $ — $ — $ (171 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the difference between the federal statutory rate and the Company’s effective rate is as follows: Three Months Ended May 31, Nine Months Ended May 31, 2015 (1) 2014 2015 (1) 2014 Federal statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State taxes, net of credits 4.7 (8.3 ) 1.2 (48.1 ) Foreign income taxed at different rates (0.5 ) (77.6 ) (7.4 ) (12.9 ) Non-deductible officers’ compensation (0.6 ) (2.4 ) (0.2 ) 2.3 Noncontrolling interests (0.8 ) 8.3 0.4 (9.5 ) Research and development credits 7.4 — 0.3 — Fixed asset tax basis adjustment — (406.0 ) — (513.5 ) Tax return to provision adjustment (6.5 ) (32.6 ) (0.2 ) (40.8 ) Valuation allowance on deferred tax assets (54.3 ) (195.7 ) (21.5 ) (158.0 ) Non-deductible goodwill (5.0 ) — (2.8 ) — Unrecognized tax benefits (4.0 ) (16.7 ) (0.6 ) 14.9 Other non-deductible expenses 2.7 (1.7 ) (0.4 ) 1.8 Other (0.2 ) 2.3 0.1 (1.8 ) Effective tax rate (22.1 )% (695.4 )% 3.9 % (730.6 )% _____________________________ (1) For periods with reported pre-tax losses, the effect of reconciling items with positive signs is tax benefit in excess of the benefit calculated by applying the federal statutory rate to the pre-tax loss. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
May. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings 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 May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Income (loss) from continuing operations $ (7,707 ) $ 4,454 $ (200,108 ) $ 3,713 Net income attributable to noncontrolling interests (687 ) (1,014 ) (1,318 ) (2,726 ) Income (loss) from continuing operations attributable to SSI (8,394 ) 3,440 (201,426 ) 987 Loss from discontinued operations, net of tax (1,234 ) (330 ) (6,314 ) (2,315 ) Net income (loss) attributable to SSI $ (9,628 ) $ 3,110 $ (207,740 ) $ (1,328 ) Computation of shares: Weighted average common shares outstanding, basic 27,043 26,853 27,003 26,811 Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs — 164 — — Weighted average common shares outstanding, diluted 27,043 27,017 27,003 26,811 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
May. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The table below illustrates the Company’s operating results from continuing operations by reporting segment (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Revenues: Metals Recycling Business: Revenues $ 363,041 $ 516,841 $ 1,159,861 $ 1,542,840 Less: Intersegment revenues (37,899 ) (43,519 ) (137,909 ) (138,410 ) MRB external customer revenues 325,142 473,322 1,021,952 1,404,430 Auto Parts Business: Revenues 60,291 79,602 203,577 227,695 Less: Intersegment revenues (13,063 ) (19,490 ) (50,431 ) (58,580 ) APB external customer revenues 47,228 60,112 153,146 169,115 Steel Manufacturing Business: Revenues 94,939 102,039 283,284 271,618 Total revenues $ 467,309 $ 635,473 $ 1,458,382 $ 1,845,163 |
Reconciliation of Operating Income from Segments to Consolidated | The table below illustrates the reconciliation of the Company’s segment operating income (loss) to income (loss) from continuing operations before income taxes (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2015 2014 2015 2014 Metals Recycling Business $ 1,017 $ 3,736 $ (183,740 ) $ 14,932 Auto Parts Business 3,145 7,702 3,812 19,981 Steel Manufacturing Business 4,343 4,594 14,350 9,912 Segment operating income (loss) 8,505 16,032 (165,578 ) 44,825 Restructuring charges and other exit-related costs (5,978 ) (2,762 ) (11,964 ) (6,444 ) Corporate and eliminations (6,547 ) (10,673 ) (26,704 ) (30,594 ) Operating income (loss) (4,020 ) 2,597 (204,246 ) 7,787 Interest expense (2,375 ) (2,529 ) (7,044 ) (7,944 ) Other income, net 84 492 3,011 604 Income (loss) from continuing operations before income taxes $ (6,311 ) $ 560 $ (208,279 ) $ 447 |
Reconciliation of Assets from Segment to Consolidated | The following is a summary of the Company’s total assets by reporting segment (in thousands): May 31, 2015 August 31, 2014 Metals Recycling Business (1) $ 1,132,078 $ 1,343,771 Auto Parts Business 354,510 361,411 Steel Manufacturing Business 363,254 350,344 Total segment assets 1,849,842 2,055,526 Corporate and eliminations (839,543 ) (700,316 ) Total assets $ 1,010,299 $ 1,355,210 _____________________________ (1) MRB total assets include $15 million as of May 31, 2015 and August 31, 2014 , for investments in joint venture partnerships. |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Details) - USD ($) | Feb. 01, 2015 | May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 |
Schedule of Asset Impairments [Line Items] | ||||||
Long-lived assets | $ 132,000 | $ 0 | $ 41,676,000 | $ 0 | ||
Total long-lived asset impairment charges | 132,000 | 44,342,000 | ||||
Assets held for sale | 1,009,000 | 0 | 2,558,000 | 928,000 | ||
Other | 140,000 | 532,000 | 885,000 | 532,000 | ||
Other Asset Impairment Charges | 1,281,000 | 532,000 | 45,119,000 | 1,460,000 | ||
Book Overdrafts | 19,000,000 | $ 19,000,000 | $ 35,000,000 | |||
Number of Days Used To Determine Short Term Highly Liquid Investments Treatment As Cash Equivalents | 90 days | |||||
Financing Receivable, Allowance for Credit Losses | 8,000,000 | |||||
Assets Held-for-sale, Current | 2,000,000 | $ 2,000,000 | 3,000,000 | |||
Goodwill impairment charge | $ 141,021,000 | 0 | $ 0 | 141,021,000 | $ 0 | |
Cash, FDIC Insured Amount | 250,000 | 250,000 | ||||
Customer Issued Letters Of Credit | 48,000,000 | 48,000,000 | $ 74,000,000 | |||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment | Auto Parts Stores | ||||||
Schedule of Asset Impairments [Line Items] | ||||||
Discontinued operations | 0 | 2,666,000 | ||||
Metals Recycling Business | ||||||
Schedule of Asset Impairments [Line Items] | ||||||
Long-lived assets | $ 132,000 | 41,676,000 | ||||
Goodwill impairment charge | $ 141,021,000 | $ 141,021,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | May. 31, 2015 | Aug. 31, 2014 |
Inventory, Net [Abstract] | ||
Processed and unprocessed scrap metal | $ 90,852 | $ 106,877 |
Semi-finished goods (billets) | 8,884 | 12,920 |
Finished goods | 57,417 | 59,039 |
Supplies | 39,855 | 37,336 |
Total inventories | $ 197,008 | $ 216,172 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Feb. 01, 2015 | May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 |
Goodwill [Line Items] | ||||||
Measurement Date for Goodwill Impairment Test | Feb. 1, 2015 | |||||
Goodwill | $ 176,804 | $ 325,903 | $ 325,903 | |||
Goodwill impairment charge | $ 141,021 | 0 | $ 0 | 141,021 | $ 0 | |
Goodwill [Roll Forward] | ||||||
Goodwill, beginning of period | 325,903 | |||||
Goodwill, Acquired During Period | 201 | |||||
Foreign currency translation adjustment | (8,279) | |||||
Goodwill impairment charge | (141,021) | 0 | $ 0 | (141,021) | $ 0 | |
Goodwill,end of period | 176,804 | 176,804 | ||||
Accumulated impairment loss | 462,000 | 321,000 | ||||
Metals Recycling Business | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 141,021 | 0 | 146,108 | 146,108 | ||
Goodwill impairment charge | 141,021 | 141,021 | ||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning of period | 146,108 | |||||
Goodwill, Acquired During Period | 0 | |||||
Foreign currency translation adjustment | (5,087) | |||||
Goodwill impairment charge | (141,021) | (141,021) | ||||
Goodwill,end of period | 141,021 | 0 | 0 | |||
Auto Parts Business | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 176,000 | 176,804 | 179,795 | $ 179,795 | ||
Goodwill impairment charge | 0 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning of period | 179,795 | |||||
Goodwill, Acquired During Period | 201 | |||||
Foreign currency translation adjustment | (3,192) | |||||
Goodwill impairment charge | 0 | |||||
Goodwill,end of period | $ 176,000 | $ 176,804 | $ 176,804 | |||
Auto Parts Business | Goodwill | Income Approach Valuation Technique | ||||||
Goodwill [Line Items] | ||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 20.00% | |||||
Weighted Average Cost of Capital | 10.37% | |||||
Fair Value Inputs, Terminal Growth Rate | 1.00% | |||||
Weighted Average Cost of Capital Sensitivity Analysis, Percent | 1.50% |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - Wells Fargo Bank NA - USD ($) $ in Millions | 9 Months Ended | |
May. 31, 2015 | Aug. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25 | |
Line of Credit Facility, Expiration Date | Apr. 1, 2016 | |
Line of Credit Facility, Amount Outstanding | $ 0 | $ 0 |
Commitments and Contingencies42
Commitments and Contingencies (Details) | Mar. 30, 2012USD ($)alternatives | May. 31, 2015USD ($)potentially_responsible_partyT | Aug. 31, 2014USD ($) |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | $ 48,349,000 | ||
Liabilities Established (Released), Net | 511,000 | ||
Payments and Other | (1,534,000) | ||
Ending balance | 47,326,000 | ||
Short-Term | 455,000 | $ 1,062,000 | |
Long-Term | 46,871,000 | $ 47,287,000 | |
Corporate | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 388,000 | ||
Liabilities Established (Released), Net | 0 | ||
Payments and Other | (88,000) | ||
Ending balance | 300,000 | ||
Short-Term | 50,000 | ||
Long-Term | 250,000 | ||
Metals Recycling Business | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 30,139,000 | ||
Liabilities Established (Released), Net | 278,000 | ||
Payments and Other | (1,097,000) | ||
Ending balance | 29,320,000 | ||
Short-Term | 163,000 | ||
Long-Term | 29,157,000 | ||
Auto Parts Business | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 17,822,000 | ||
Liabilities Established (Released), Net | 233,000 | ||
Payments and Other | (349,000) | ||
Ending balance | 17,706,000 | ||
Short-Term | 242,000 | ||
Long-Term | 17,464,000 | ||
Steel Manufacturing Business | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Ending balance | $ 0 | ||
Annual production capacity | T | 950,000 | ||
Permit Expiration Date | Feb. 1, 2018 | ||
Portland Harbor Superfund Site | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Ending balance | $ 1,000,000 | ||
Site Contingency Number of Remedial Alternatives | alternatives | 10 | ||
Third Party Transaction Percentage Of Shared Legal And Consulting Costs | 50.00% | ||
Other Metals Recycling Business Sites | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Ending balance | $ 28,000,000 | ||
Minimum | Portland Harbor Superfund Site | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Number Of Potentially Responsible Parties | potentially_responsible_party | 80 | ||
Site Contingency, Estimated Time Frame to Remediate | 2 years | ||
Maximum | Portland Harbor Superfund Site | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Site Contingency, Estimated Time Frame to Remediate | 28 years | ||
Lower Willamette Group | Portland Harbor Superfund Site | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Site Contingency Period Of Feasibility Study | 10 years | ||
Feasibility Study Investigation Costs | $ 100,000,000 | ||
Potential Responsible Parties | Minimum | Portland Harbor Superfund Site | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Site Contingency Least Costly Remediation Plan | 170,000,000 | ||
Site Contingency Most Costly Remediation Plan | 1,080,000,000 | ||
Potential Responsible Parties | Maximum | Portland Harbor Superfund Site | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Site Contingency Least Costly Remediation Plan | 250,000,000 | ||
Site Contingency Most Costly Remediation Plan | $ 1,760,000,000 |
Restructuring Charges and Oth43
Restructuring Charges and Other Exit-Related Costs Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 7,280 | $ 2,762 | $ 9,922 | $ 6,014 |
Total restructuring charges and other exit-related costs | 7,430 | 2,762 | 16,424 | 6,580 |
Total restructuring charges to date | 29,241 | 29,241 | ||
Total expected restructuring charges | 31,700 | 31,700 | ||
Q1’14 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 21 | 2,686 | 300 | 5,383 |
Total restructuring charges and other exit-related costs | 21 | 2,686 | 300 | 5,949 |
Total restructuring charges to date | 6,070 | 6,070 | ||
Total expected restructuring charges | 6,100 | 6,100 | ||
Q1’15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 1,651 | ||
Total restructuring charges and other exit-related costs | 0 | 1,651 | ||
Total restructuring charges to date | 1,651 | 1,651 | ||
Total expected restructuring charges | 1,651 | 1,651 | ||
Q2'15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 7,259 | 7,971 | ||
Total restructuring charges and other exit-related costs | 7,409 | 14,473 | ||
Total restructuring charges to date | 7,971 | 7,971 | ||
Total expected restructuring charges | 10,400 | 10,400 | ||
Q4’12 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 76 | 631 | ||
Total restructuring charges and other exit-related costs | 76 | 631 | ||
Total restructuring charges to date | 13,549 | 13,549 | ||
Total expected restructuring charges | 13,549 | 13,549 | ||
Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 4,035 | 2,161 | 4,973 | 4,406 |
Total restructuring charges to date | 14,764 | 14,764 | ||
Total expected restructuring charges | 16,400 | 16,400 | ||
Severance costs | Q1’14 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (5) | 2,192 | (35) | 4,450 |
Severance costs | Q1’15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 428 | ||
Severance costs | Q2'15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 4,040 | 4,580 | ||
Severance costs | Q4’12 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (31) | (44) | ||
Contract termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,636 | 601 | 2,024 | 1,198 |
Total restructuring charges to date | 7,077 | 7,077 | ||
Total expected restructuring charges | 7,200 | 7,200 | ||
Contract termination costs | Q1’14 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 26 | 494 | 335 | 523 |
Contract termination costs | Q1’15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | ||
Contract termination costs | Q2'15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,610 | 1,689 | ||
Contract termination costs | Q4’12 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 107 | 675 | ||
Other restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,609 | 0 | 2,925 | 410 |
Total restructuring charges to date | 7,400 | 7,400 | ||
Total expected restructuring charges | 8,100 | 8,100 | ||
Other restructuring costs | Q1’14 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | 0 | 410 |
Other restructuring costs | Q1’15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 1,223 | ||
Other restructuring costs | Q2'15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,609 | 1,702 | ||
Other restructuring costs | Q4’12 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | ||
Asset impairments and accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 150 | 0 | 6,502 | 566 |
Asset impairments and accelerated depreciation | Q1’14 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | 0 | 0 | 566 |
Asset impairments and accelerated depreciation | Q1’15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | 0 | ||
Asset impairments and accelerated depreciation | Q2'15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 150 | 6,502 | ||
Asset impairments and accelerated depreciation | Q4’12 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | 0 | ||
Total other exit-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 150 | 0 | 6,502 | 566 |
Total other exit-related costs | Q1’14 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | 0 | 0 | 566 |
Total other exit-related costs | Q1’15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | 0 | ||
Total other exit-related costs | Q2'15 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 150 | 6,502 | ||
Total other exit-related costs | Q4’12 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | 0 | ||
Segment Reconciling Items | Continuing Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges and other exit-related costs | 5,978 | 2,762 | 11,964 | 6,444 |
Segment Reconciling Items | Discontinued Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,452 | 0 | 1,794 | 136 |
Total restructuring charges and other exit-related costs | 1,452 | 0 | 4,460 | 136 |
Total restructuring charges to date | 1,794 | 1,794 | ||
Total expected restructuring charges | 1,900 | 1,900 | ||
Segment Reconciling Items | Asset impairments and accelerated depreciation | Discontinued Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | 0 | 2,666 | 0 |
Segment Reconciling Items | Total other exit-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | $ 150 | $ 0 | $ 6,502 | $ 566 |
Restructuring Charges and Oth44
Restructuring Charges and Other Exit-Related Costs Restructuring Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 7,280 | $ 2,762 | $ 9,922 | $ 6,014 |
Total restructuring charges to date | 29,241 | 29,241 | ||
Total expected restructuring charges | 31,700 | 31,700 | ||
All Other Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 2,158 | |||
Restructuring charges | 1,951 | |||
Payments and Other | (3,499) | |||
Restructuring reserve, ending balance | 610 | 610 | ||
Q2'15 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Restructuring charges | 7,259 | 7,971 | ||
Payments and Other | (3,450) | |||
Restructuring reserve, ending balance | 4,521 | 4,521 | ||
Total restructuring charges to date | 7,971 | 7,971 | ||
Total expected restructuring charges | 10,400 | 10,400 | ||
Severance costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 4,035 | 2,161 | 4,973 | 4,406 |
Total restructuring charges to date | 14,764 | 14,764 | ||
Total expected restructuring charges | 16,400 | 16,400 | ||
Severance costs | All Other Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 669 | |||
Restructuring charges | 393 | |||
Payments and Other | (1,060) | |||
Restructuring reserve, ending balance | 2 | 2 | ||
Severance costs | Q2'15 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Restructuring charges | 4,040 | 4,580 | ||
Payments and Other | (2,202) | |||
Restructuring reserve, ending balance | 2,378 | 2,378 | ||
Contract termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1,636 | 601 | 2,024 | 1,198 |
Total restructuring charges to date | 7,077 | 7,077 | ||
Total expected restructuring charges | 7,200 | 7,200 | ||
Contract termination costs | All Other Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 1,489 | |||
Restructuring charges | 335 | |||
Payments and Other | (1,216) | |||
Restructuring reserve, ending balance | 608 | 608 | ||
Contract termination costs | Q2'15 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Restructuring charges | 1,610 | 1,689 | ||
Payments and Other | 0 | |||
Restructuring reserve, ending balance | 1,689 | 1,689 | ||
Other restructuring costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1,609 | $ 0 | 2,925 | $ 410 |
Total restructuring charges to date | 7,400 | 7,400 | ||
Total expected restructuring charges | 8,100 | 8,100 | ||
Other restructuring costs | All Other Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Restructuring charges | 1,223 | |||
Payments and Other | (1,223) | |||
Restructuring reserve, ending balance | 0 | 0 | ||
Other restructuring costs | Q2'15 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Restructuring charges | 1,609 | 1,702 | ||
Payments and Other | (1,248) | |||
Restructuring reserve, ending balance | $ 454 | $ 454 |
Restructuring Charges and Oth45
Restructuring Charges and Other Exit-Related Costs Restructuring Charges and Other Exit-Related Costs by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 7,280 | $ 2,762 | $ 9,922 | $ 6,014 |
Total restructuring charges and other exit-related costs | 7,430 | 2,762 | 16,424 | 6,580 |
Total restructuring charges to date | 29,241 | 29,241 | ||
Total expected restructuring charges | 31,700 | 31,700 | ||
Total restructuring charges and other exit-related costs, incurred to date | 36,309 | 36,309 | ||
Asset impairments and accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 150 | 0 | 6,502 | 566 |
Total other exit-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 150 | 0 | 6,502 | 566 |
Operating Segments | Metals Recycling Business | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,907 | 1,818 | 3,484 | 3,969 |
Total restructuring charges to date | 12,163 | 12,163 | ||
Total expected restructuring charges | 12,550 | 12,550 | ||
Operating Segments | Metals Recycling Business | Asset impairments and accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 150 | 0 | 3,385 | 566 |
Total restructuring charges and other exit-related costs, incurred to date | 3,951 | 3,951 | ||
Operating Segments | Auto Parts Business | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,110 | 466 | 2,776 | 826 |
Total restructuring charges to date | 4,305 | 4,305 | ||
Total expected restructuring charges | 5,250 | 5,250 | ||
Operating Segments | Auto Parts Business | Asset impairments and accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | 0 | 451 | 0 |
Total restructuring charges and other exit-related costs, incurred to date | 451 | 451 | ||
Unallocated (Corporate) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,811 | 478 | 1,868 | 1,083 |
Total restructuring charges to date | 10,979 | 10,979 | ||
Total expected restructuring charges | 12,000 | 12,000 | ||
Segment Reconciling Items | Total other exit-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 150 | 0 | 6,502 | 566 |
Total restructuring charges and other exit-related costs, incurred to date | 7,068 | 7,068 | ||
Discontinued Operations | Segment Reconciling Items | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,452 | 0 | 1,794 | 136 |
Total restructuring charges and other exit-related costs | 1,452 | 0 | 4,460 | 136 |
Total restructuring charges to date | 1,794 | 1,794 | ||
Total expected restructuring charges | 1,900 | 1,900 | ||
Discontinued Operations | Segment Reconciling Items | Asset impairments and accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs, including discontinued operations | 0 | $ 0 | 2,666 | $ 0 |
Total restructuring charges and other exit-related costs, incurred to date | $ 2,666 | $ 2,666 |
Changes in Equity (Details)
Changes in Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance - September 1 (Beginning of period) | $ 775,977 | $ 781,199 | ||
Net income (loss) | $ (8,941) | $ 4,124 | (206,422) | 1,398 |
Other comprehensive loss, net of tax | 2,411 | 3,077 | (21,096) | (3,521) |
Distributions to noncontrolling interests | (2,263) | (1,794) | ||
Restricted stock withheld for taxes | (1,360) | (676) | ||
Stock options exercised | 0 | 240 | ||
Share-based compensation | 7,596 | 10,257 | ||
Excess tax deficiency from stock options exercised and restricted stock units vested | (703) | (692) | ||
Dividends | (15,415) | (15,185) | ||
Balance - May 31 (End of period) | 536,314 | 771,226 | 536,314 | 771,226 |
SSI Shareholders’ Equity | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance - September 1 (Beginning of period) | 770,784 | 776,558 | ||
Net income (loss) | (207,740) | (1,328) | ||
Other comprehensive loss, net of tax | (21,096) | (3,521) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Restricted stock withheld for taxes | (1,360) | (676) | ||
Stock options exercised | 0 | 240 | ||
Share-based compensation | 7,596 | 10,257 | ||
Excess tax deficiency from stock options exercised and restricted stock units vested | (703) | (692) | ||
Dividends | (15,415) | (15,185) | ||
Balance - May 31 (End of period) | 532,066 | 765,653 | 532,066 | 765,653 |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance - September 1 (Beginning of period) | 5,193 | 4,641 | ||
Net income (loss) | 1,318 | 2,726 | ||
Other comprehensive loss, net of tax | 0 | 0 | ||
Distributions to noncontrolling interests | (2,263) | (1,794) | ||
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 | ||
Dividends | 0 | 0 | ||
Balance - May 31 (End of period) | $ 4,248 | $ 5,573 | $ 4,248 | $ 5,573 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Beginning balance | $ (36,148) | $ (15,959) | $ (12,641) | $ (9,361) |
Other comprehensive income (loss) before reclassifications | 465 | 3,131 | (24,544) | (3,754) |
Income tax benefit (expense) | 0 | (128) | 428 | (51) |
Other comprehensive income (loss) before reclassifications, net of tax | 465 | 3,003 | (24,116) | (3,805) |
Amounts reclassified from accumulated other comprehensive loss | 2,118 | 108 | 3,559 | 346 |
Income tax (benefit) expense | (172) | (34) | (539) | (62) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 1,946 | 74 | 3,020 | 284 |
Total other comprehensive income (loss), net of tax | 2,411 | 3,077 | (21,096) | (3,521) |
Ending balance | (33,737) | (12,882) | (33,737) | (12,882) |
Foreign Currency Translation Adjustments | ||||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Beginning balance | (30,536) | (13,002) | (10,663) | (6,423) |
Other comprehensive income (loss) before reclassifications | 250 | 2,620 | (19,623) | (3,959) |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 250 | 2,620 | (19,623) | (3,959) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 250 | 2,620 | (19,623) | (3,959) |
Ending balance | (30,286) | (10,382) | (30,286) | (10,382) |
Pension Obligations, net | ||||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Beginning balance | (1,977) | (2,728) | (2,036) | (2,817) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 473 | 71 | 560 | 211 |
Income tax (benefit) expense | (172) | (26) | (200) | (77) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 301 | 45 | 360 | 134 |
Total other comprehensive income (loss), net of tax | 301 | 45 | 360 | 134 |
Ending balance | (1,676) | (2,683) | (1,676) | (2,683) |
Net Unrealized Gain (Loss) on Cash Flow Hedges | ||||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Beginning balance | (3,635) | (229) | 58 | (121) |
Other comprehensive income (loss) before reclassifications | 215 | 511 | (4,921) | 205 |
Income tax benefit (expense) | 0 | (128) | 428 | (51) |
Other comprehensive income (loss) before reclassifications, net of tax | 215 | 383 | (4,493) | 154 |
Amounts reclassified from accumulated other comprehensive loss | 1,645 | 37 | 2,999 | 135 |
Income tax (benefit) expense | 0 | (8) | (339) | 15 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 1,645 | 29 | 2,660 | 150 |
Total other comprehensive income (loss), net of tax | 1,860 | 412 | (1,833) | 304 |
Ending balance | $ (1,775) | $ 183 | $ (1,775) | $ 183 |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015USD ($)store | May. 31, 2014USD ($) | May. 31, 2015USD ($)store | May. 31, 2014USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from discontinued operations before income taxes | $ (1,812) | $ (940) | $ (7,070) | $ (3,353) |
Income tax benefit | 578 | 610 | 756 | 1,038 |
Loss from discontinued operations, net of tax | $ (1,234) | (330) | $ (6,314) | (2,315) |
Auto Parts Stores | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of Stores | store | 7 | 7 | ||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment | Auto Parts Stores | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of Stores | store | 6 | 6 | ||
Revenues | $ 1,440 | $ 3,994 | $ 8,210 | $ 11,896 |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) - USD ($) $ in Thousands | May. 31, 2015 | Aug. 31, 2014 |
Assets: | ||
Total assets | $ 52 | $ 202 |
Liabilities: | ||
Total liabilities | (3,583) | (46) |
Prepaid expenses and other current assets | Recurring | Level 2 | ||
Assets: | ||
Foreign currency exchange forward contracts | 52 | 202 |
Other accrued liabilities and other long-term liabilities | Non-recurring | Level 3 | ||
Liabilities: | ||
Contract termination costs | (1,582) | 0 |
Other accrued liabilities | Recurring | Level 2 | ||
Liabilities: | ||
Foreign currency exchange forward contracts | $ (2,001) | $ (46) |
Derivative Financial Instrume50
Derivative Financial Instruments (Details) - Not Designated as Hedging Instrument $ in Millions | May. 31, 2015USD ($) |
Foreign Exchange Forward To Buy Canadian Currency | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 20 |
Foreign Exchange Forward to Sell Canadian Currency | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 3 |
Derivative Financial Instrume51
Derivative Financial Instruments Derivative Instruments in Statement of Financial Position and Statement of Financial Performance, Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | Aug. 31, 2014 | |
Derivative [Line Items] | |||||
Derivative Gain (Loss) Recognized in Other Income (Expense), net - Not Designated as Cash Flow Hedges | $ (143) | $ (171) | $ (265) | $ (171) | |
Cash Flow Hedging | Foreign currency exchange forward contracts | |||||
Derivative [Line Items] | |||||
Derivative Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 215 | 511 | (4,921) | 205 | |
Derivative Gain (Loss) Recognized in Revenues - Effective Portion | (1,645) | 37 | (2,999) | 37 | |
Derivative Gain (Loss) Recognized in Other Income (Expense), net - Designated as Cash Flow Hedges | 27 | $ 314 | 202 | $ 314 | |
Not Designated as Hedging Instrument | Prepaid expenses and other current assets | Foreign currency exchange forward contracts | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 52 | 52 | $ 202 | ||
Not Designated as Hedging Instrument | Other accrued liabilities | Foreign currency exchange forward contracts | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | $ (2,001) | $ (2,001) | $ (46) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Nov. 30, 2014 | Feb. 28, 2015 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity Instruments Other than Options, Grants in Period | 268,988 | |
Award Vesting Period | 5 years | |
Annual Vesting Percent | 20.00% | |
Equity Instruments Other Than Options Grants In Period Total Fair Value | $ 6 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity Instruments Other than Options, Grants in Period | 268,988 | |
Award Vesting Period | 2 years | |
Equity Instruments Other Than Options Grants In Period Total Fair Value | $ 6 | |
Weight Based on the Company's EBITDA Used In Calculation Of Performance Targets | 50.00% | |
Weight Based on Return on Equity Used In Calculation Of Performance Targets | 50.00% | |
Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Based Awards Award Payouts Threshold | 50.00% | |
Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Based Awards Award Payouts Threshold | 200.00% | |
Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity Instruments Other than Options, Grants in Period | 43,347 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Federal statutory rate | 35.00% | [1] | 35.00% | 35.00% | [1] | 35.00% |
State taxes, net of credits | 4.70% | (8.30%) | 1.20% | (48.10%) | ||
Foreign income taxed at different rates | (0.50%) | (77.60%) | (7.40%) | (12.90%) | ||
Non-deductible officers’ compensation | (0.60%) | (2.40%) | (0.20%) | 2.30% | ||
Noncontrolling interests | (0.80%) | 8.30% | 0.40% | (9.50%) | ||
Research and development credits | 7.40% | 0.00% | 0.30% | 0.00% | ||
Fixed asset tax basis adjustment | (0.00%) | (406.00%) | (0.00%) | (513.50%) | ||
Tax return to provision adjustment | (6.50%) | (32.60%) | (0.20%) | (40.80%) | ||
Valuation allowance on deferred tax assets | (54.30%) | (195.70%) | (21.50%) | (158.00%) | ||
Non-deductible goodwill | (5.00%) | (0.00%) | (2.80%) | (0.00%) | ||
Unrecognized tax benefits | (4.00%) | (16.70%) | (0.60%) | 14.90% | ||
Other non-deductible expenses | 2.70% | (1.70%) | (0.40%) | 1.80% | ||
Other | (0.20%) | 2.30% | 0.10% | (1.80%) | ||
Effective tax rate | (22.10%) | (695.40%) | 3.90% | (730.60%) | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | $ 4 | $ 46 | ||||
Tax Benefit Recognized on Fixed Asset Adjustments in Tax Basis Amount | $ 2 | $ 2 | ||||
[1] | For periods with reported pre-tax losses, the effect of reconciling items with positive signs is tax benefit in excess of the benefit calculated by applying the federal statutory rate to the pre-tax loss. |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations | $ (7,707) | $ 4,454 | $ (200,108) | $ 3,713 |
Net income attributable to noncontrolling interests | (687) | (1,014) | (1,318) | (2,726) |
Income (loss) from continuing operations attributable to SSI | (8,394) | 3,440 | (201,426) | 987 |
Loss from discontinued operations, net of tax | (1,234) | (330) | (6,314) | (2,315) |
Net income (loss) attributable to SSI | $ (9,628) | $ 3,110 | $ (207,740) | $ (1,328) |
Computation of shares: | ||||
Weighted average common shares outstanding, basic | 27,043,000 | 26,853,000 | 27,003,000 | 26,811,000 |
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs and RSUs | 0 | 164,000 | 0 | 0 |
Weighted average common shares outstanding, diluted | 27,043,000 | 27,017,000 | 27,003,000 | 26,811,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,362,408 | 501,511 | 1,362,408 | 1,184,755 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||
May. 31, 2015USD ($)store | May. 31, 2014USD ($) | Jan. 05, 2015USD ($) | May. 31, 2015USD ($)store | May. 31, 2014USD ($) | Aug. 31, 2014USD ($) | |
Corporate Joint Venture | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases from joint ventures | $ 4 | $ 8 | $ 17 | $ 22 | ||
Net advances | 0 | 2 | 0 | 4 | ||
Accounts Receivable, Related Parties | $ 0 | $ 0 | $ 1 | |||
Auto Parts Business Segment President | Partnership Interest | ||||||
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 Number Of Stores | store | 5 | 5 | ||||
Related Party Transaction Related Party Share Of Profit | 1 | $ 1 | 2 | |||
Lease Expiration Date | Dec. 31, 2020 | |||||
Related Party Transaction Rent Expense (Less Than $1 Million For the Three and Nine Month Periods Ended May 31, 2014, and The Year-to-Date Period Ended January 5, 2015.) | $ 1 | $ 1 | $ 1 |
Segment Information (Details)
Segment Information (Details) | 9 Months Ended |
May. 31, 2015segments | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Number of Reportable Segments | 3 |
Segment Information Segment Rev
Segment Information Segment Revenue Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 467,309 | $ 635,473 | $ 1,458,382 | $ 1,845,163 |
Metals Recycling Business | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 325,142 | 473,322 | 1,021,952 | 1,404,430 |
Auto Parts Business | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 47,228 | 60,112 | 153,146 | 169,115 |
Steel Manufacturing Business | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 94,939 | 102,039 | 283,284 | 271,618 |
Operating Segments | Metals Recycling Business | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 363,041 | 516,841 | 1,159,861 | 1,542,840 |
Operating Segments | Auto Parts Business | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 60,291 | 79,602 | 203,577 | 227,695 |
Less: Intersegment revenues | Metals Recycling Business | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (37,899) | (43,519) | (137,909) | (138,410) |
Less: Intersegment revenues | Auto Parts Business | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (13,063) | $ (19,490) | $ (50,431) | $ (58,580) |
Segment Information Segment Ope
Segment Information Segment Operating Income Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | May. 31, 2015 | May. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ (4,020) | $ 2,597 | $ (204,246) | $ 7,787 |
Restructuring charges and other exit-related costs | (5,978) | (2,762) | (11,964) | (6,444) |
Interest expense | (2,375) | (2,529) | (7,044) | (7,944) |
Other income, net | 84 | 492 | 3,011 | 604 |
Income (loss) from continuing operations before income taxes | (6,311) | 560 | (208,279) | 447 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 8,505 | 16,032 | (165,578) | 44,825 |
Operating Segments | Metals Recycling Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 1,017 | 3,736 | (183,740) | 14,932 |
Operating Segments | Auto Parts Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 3,145 | 7,702 | 3,812 | 19,981 |
Operating Segments | Steel Manufacturing Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 4,343 | 4,594 | 14,350 | 9,912 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges and other exit-related costs | (5,978) | (2,762) | (11,964) | (6,444) |
Corporate and eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ (6,547) | $ (10,673) | $ (26,704) | $ (30,594) |
Segment Information Segment Ass
Segment Information Segment Assets Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | May. 31, 2015 | Aug. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 1,010,299 | $ 1,355,210 | |
Investments in joint venture partnerships | 15,232 | 14,624 | |
Metals Recycling Business | |||
Segment Reporting Information [Line Items] | |||
Investments in joint venture partnerships | 15,000 | 15,000 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,849,842 | 2,055,526 | |
Operating Segments | Metals Recycling Business | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 1,132,078 | 1,343,771 |
Operating Segments | Auto Parts Business | |||
Segment Reporting Information [Line Items] | |||
Assets | 354,510 | 361,411 | |
Operating Segments | Steel Manufacturing Business | |||
Segment Reporting Information [Line Items] | |||
Assets | 363,254 | 350,344 | |
Corporate and eliminations | |||
Segment Reporting Information [Line Items] | |||
Assets | $ (839,543) | $ (700,316) | |
[1] | MRB total assets include $15 million as of May 31, 2015 and August 31, 2014, for investments in joint venture partnerships. |