Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Feb. 29, 2016 | Apr. 01, 2016 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Feb. 29, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | SCHNITZER STEEL INDUSTRIES INC | |
Entity Central Index Key | 912,603 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Accelerated Filer | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 26,450,095 | |
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 | Feb. 29, 2016 | Aug. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 8,940 | $ 22,755 |
Accounts receivable, net of allowance for doubtful accounts of $2,345 and $2,496 | 81,159 | 111,492 |
Inventories | 146,030 | 156,532 |
Deferred income taxes | 0 | 2,792 |
Refundable income taxes | 7,123 | 7,263 |
Prepaid expenses and other current assets | 17,720 | 21,531 |
Total current assets | 260,972 | 322,365 |
Property, plant and equipment, net of accumulated depreciation of $703,561 and $679,035 | 393,768 | 427,554 |
Investments in joint ventures | 12,699 | 15,320 |
Goodwill | 166,276 | 175,676 |
Intangibles, net of accumulated amortization of $3,788 and $6,918 | 5,477 | 6,353 |
Other assets | 12,981 | 15,031 |
Total assets | 852,173 | 962,299 |
Current liabilities: | ||
Short-term borrowings | 620 | 584 |
Accounts payable | 53,083 | 57,105 |
Accrued payroll and related liabilities | 16,658 | 25,478 |
Environmental liabilities | 882 | 924 |
Accrued income taxes | 0 | 148 |
Other accrued liabilities | 34,090 | 36,207 |
Total current liabilities | 105,333 | 120,446 |
Deferred income taxes | 16,933 | 19,138 |
Long-term debt, net of current maturities | 197,219 | 227,572 |
Environmental liabilities, net of current portion | 44,894 | 45,869 |
Other long-term liabilities | 10,722 | 10,723 |
Total liabilities | $ 375,101 | $ 423,748 |
Commitments and contingencies (Note 6) | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Preferred stock – 20,000 shares $1.00 par value authorized, none issued | $ 0 | $ 0 |
Additional paid-in capital | 23,494 | 26,211 |
Retained earnings | 463,257 | 520,066 |
Accumulated other comprehensive loss | (40,078) | (38,522) |
Total SSI shareholders’ equity | 473,423 | 534,535 |
Noncontrolling interests | 3,649 | 4,016 |
Total equity | 477,072 | 538,551 |
Total liabilities and equity | 852,173 | 962,299 |
Class A Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | 26,444 | 26,474 |
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 | Feb. 29, 2016 | Aug. 31, 2015 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 2,345 | $ 2,496 |
Property, plant and equipment, accumulated depreciation | 703,561 | 679,035 |
Intangibles, accumulated amortization | $ 3,788 | $ 6,918 |
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 26,444,000 | 26,474,000 |
Common stock, shares outstanding | 26,444,000 | 26,474,000 |
Class B Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
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 | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 289,077 | $ 437,449 | $ 610,275 | $ 991,073 |
Operating expense: | ||||
Cost of goods sold | 259,670 | 406,649 | 544,524 | 914,664 |
Selling, general and administrative | 33,599 | 42,167 | 72,017 | 86,898 |
(Income) loss from joint ventures | 290 | (609) | 319 | (1,109) |
Goodwill impairment charge | 8,845 | 141,021 | 8,845 | 141,021 |
Other asset impairment charges | 18,458 | 43,838 | 18,458 | 43,838 |
Restructuring charges and other exit-related costs | 5,291 | 5,394 | 7,216 | 5,987 |
Operating loss | (37,076) | (201,011) | (41,104) | (200,226) |
Interest expense | (2,015) | (2,295) | (3,874) | (4,669) |
Other income, net | 438 | 1,993 | 845 | 2,925 |
Loss from continuing operations before income taxes | (38,653) | (201,313) | (44,133) | (201,970) |
Income tax benefit (expense) | (1,293) | 9,673 | (715) | 9,566 |
Loss from continuing operations | (39,946) | (191,640) | (44,848) | (192,404) |
Loss from discontinued operations, net of tax | (1,024) | (4,242) | (1,089) | (5,080) |
Net loss | (40,970) | (195,882) | (45,937) | (197,484) |
Net (income) loss attributable to noncontrolling interests | (275) | 240 | (604) | (631) |
Net loss attributable to SSI | $ (41,245) | $ (195,642) | $ (46,541) | $ (198,115) |
Net loss per share attributable to SSI Basic: | ||||
Net loss per share from continuing operations attributable to SSI | $ (1.48) | $ (7.08) | $ (1.67) | $ (7.15) |
Net loss per share from discontinued operations attributable to SSI | (0.04) | (0.16) | (0.04) | (0.19) |
Net loss per share attributable to SSI | (1.52) | (7.24) | (1.71) | (7.34) |
Net loss per share attributable to SSI Diluted: | ||||
Net loss per share from continuing operations attributable to SSI | (1.48) | (7.08) | (1.67) | (7.15) |
Net loss per share from discontinued operations attributable to SSI | (0.04) | (0.16) | (0.04) | (0.19) |
Net loss per share attributable to SSI | $ (1.52) | $ (7.24) | $ (1.71) | $ (7.34) |
Weighted average number of common shares: | ||||
Basic | 27,201 | 27,020 | 27,178 | 26,982 |
Diluted | 27,201 | 27,020 | 27,178 | 26,982 |
Dividends declared per common share | $ 0.1875 | $ 0.1875 | $ 0.3750 | $ 0.3750 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (40,970) | $ (195,882) | $ (45,937) | $ (197,484) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (892) | (12,601) | (1,901) | (19,873) |
Cash flow hedges, net | 0 | (2,785) | 240 | (3,693) |
Pension obligations, net | 64 | 23 | 105 | 59 |
Total other comprehensive loss, net of tax | (828) | (15,363) | (1,556) | (23,507) |
Comprehensive loss | (41,798) | (211,245) | (47,493) | (220,991) |
Less net (income) loss attributable to noncontrolling interests | (275) | 240 | (604) | (631) |
Comprehensive loss attributable to SSI | $ (42,073) | $ (211,005) | $ (48,097) | $ (221,622) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 29, 2016 | Feb. 28, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (45,937) | $ (197,484) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Goodwill impairment charge | 8,845 | 141,021 |
Other asset impairment charges | 18,458 | 43,838 |
Other exit-related asset impairments and accelerated depreciation | 3,008 | 6,352 |
Depreciation and amortization | 28,953 | 36,871 |
Share-based compensation expense | 2,627 | 4,300 |
Deferred income taxes | 521 | (858) |
Inventory write-down | 478 | 3,031 |
Undistributed equity in earnings of joint ventures | 319 | (1,109) |
Gain on disposal of assets | (118) | (1,032) |
Unrealized foreign exchange gain, net | (5) | (1,610) |
Bad debt expense (recoveries), net | 140 | (67) |
Excess tax benefit from share-based payment arrangements | 0 | (94) |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 26,026 | 69,434 |
Inventories | 12,579 | (38,404) |
Income taxes | (4) | (15,325) |
Prepaid expenses and other current assets | 2,761 | 5,143 |
Intangibles and other long-term assets | 842 | 33 |
Accounts payable | 423 | (22,195) |
Accrued payroll and related liabilities | (8,799) | (12,525) |
Other accrued liabilities | (3,154) | (4,382) |
Environmental liabilities | (916) | (52) |
Other long-term liabilities | 86 | 638 |
Distributed equity in earnings of joint ventures | 200 | 325 |
Net cash provided by operating activities | 47,333 | 15,849 |
Cash flows from investing activities: | ||
Capital expenditures | (15,611) | (16,828) |
Joint venture receipts (payments), net | 28 | (1) |
Proceeds from sale of assets | 988 | 1,358 |
Acquisitions, net of cash acquired | 0 | (150) |
Net cash used in investing activities | (14,595) | (15,621) |
Cash flows from financing activities: | ||
Proceeds from line of credit | 115,500 | 145,000 |
Repayment of line of credit | (115,500) | (145,000) |
Borrowings from long-term debt | 49,160 | 109,694 |
Repayment of long-term debt | (79,456) | (114,965) |
Repurchase of Class A Common Stock | (3,479) | 0 |
Taxes paid related to net share settlement of share-based payment arrangements | (1,895) | (1,360) |
Excess tax benefit from share-based payment arrangements | 0 | 94 |
Distributions to noncontrolling interest | (971) | (1,585) |
Contingent consideration paid relating to business acquisitions | 0 | (759) |
Dividends paid | (10,117) | (10,087) |
Net cash used in financing activities | (46,758) | (18,968) |
Effect of exchange rate changes on cash | 205 | 669 |
Net decrease in cash and cash equivalents | (13,815) | (18,071) |
Cash and cash equivalents as of beginning of period | 22,755 | 25,672 |
Cash and cash equivalents as of end of period | $ 8,940 | $ 7,601 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Feb. 29, 2016 | |
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, 2015 . The results for the three and six months ended February 29, 2016 and February 28, 2015 are not necessarily indicative of the results of operations for the entire fiscal year. Segment Reporting Prior to the fourth quarter of fiscal 2015, the Company's internal organizational and reporting structure supported three operating and reportable segments: the Metals Recycling Business ("MRB"), the Auto Parts Business ("APB") and the Steel Manufacturing Business ("SMB"). In the fourth quarter of fiscal 2015, in accordance with its plan announced in April 2015, the Company combined and integrated its auto parts and metals recycling businesses into a single operating platform. The change in the Company's internal organizational and reporting structure resulted in the formation of a new operating and reportable segment, the Auto and Metals Recycling ("AMR") business, replacing the former MRB and APB segments. The Company began reporting on this new segment in the fourth quarter of fiscal 2015 as reflected in its Annual Report on Form 10-K for the year ended August 31, 2015 . The segment data for the comparable periods presented herein has been recast to conform to the current period presentation for all activities of AMR. Recasting this historical information did not have an impact on the Company's consolidated financial performance for any of the periods presented. Accounting Changes 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 Company adopted the new requirement in the first quarter of fiscal 2016 with no impact to the Unaudited Condensed Consolidated Financial Statements. The standard 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. In November 2015, an accounting standard update was issued that requires deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. To simplify the presentation of the Company's deferred tax liabilities and assets, along with valuation allowances against deferred tax assets, the Company early-adopted the new requirement as of the beginning of the first quarter of fiscal 2016 and is applying the amendments prospectively. Adoption of the new requirement impacted the classification of the Company's deferred tax liabilities and assets reported in its Unaudited Condensed Consolidated Balance Sheet beginning as of November 30, 2015, and had no impact on its consolidated results of operations and cash flows. The comparative period balance sheet has not been retrospectively adjusted. 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. Asset impairments related to the disposed components are also included in the results of discontinued operations. See Note 10 - Discontinued Operations and the Asset Impairment Charges section of this Note 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 $8 million and $11 million as of February 29, 2016 and August 31, 2015 , 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 February 29, 2016 and August 31, 2015 , the Company reported less than $1 million and $2 million , respectively, of assets held for sale within prepaid expenses and other current assets in the Unaudited Condensed Consolidated Balance Sheets. An asset is classified as held for sale upon meeting certain criteria specified in the accounting standards. An asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. During the second quarter of fiscal 2016 and 2015, the Company recorded impairment charges for the initial and subsequent write-down of certain equipment held for sale to its fair value less cost to sell of $2 million which are reported within other asset impairment charges in the Unaudited Condensed Consolidated Statements of Operations. The Company determined fair value using Level 3 inputs under the fair value hierarchy consisting of information provided by brokers and other external sources along with management's own assumptions. See the Asset Impairment Charges section of this Note for tabular presentation of the impairment charges on assets held for sale. 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. For the Company's metals recycling businesses, an asset group is generally comprised of the regional shredding and export operation along with surrounding feeder yards. For regions with no shredding and export operations, each metals recycling yard is an asset group. For the Company's auto parts businesses, generally each auto parts store is an asset group. The Company's steel manufacturing business is a single asset group. 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 the second quarter of fiscal 2016 and 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. With respect to individual long-lived assets, changes in circumstances may merit a change in the estimated useful lives or salvage values of the assets, which are accounted for prospectively in the period of change. For such assets, the useful life is shortened based on the Company's current plans to dispose of or abandon the asset before the end of its original useful life and depreciation is accelerated beginning when that determination is made. During the second quarter of fiscal 2016 and 2015, the Company recognized accelerated depreciation due to shortened useful lives in connection with site closures and idled equipment. See the Asset Impairment Charges section of this Note for tabular presentation of long-lived asset impairment charges and accelerated depreciation. Long-lived asset impairment charges and accelerated depreciation are reported in the Unaudited Condensed Consolidated Statements of Operations within (1) other asset impairment charges; (2) restructuring charges and other exit-related costs, if related to a site closure not qualifying for discontinued operations reporting; or (3) discontinued operations, if related to a component of the Company qualifying for discontinued operations reporting. Investments in Joint Ventures A loss in value of an investment in a joint venture that is other than a temporary decline is recognized. Management considers all available evidence to evaluate the realizable value of its investments including the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the joint venture business, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Once management determines that an other-than-temporary impairment exists, the investment is written down to its fair value, which establishes a new cost basis. The Company determines fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. During the second quarter of fiscal 2016, the Company recorded an impairment charge of $2 million related to an investment in a joint venture, which is reported within other asset impairment charges in the Unaudited Consolidated Statements of Operations. Asset Impairment Charges The following asset impairment charges, all recorded during the second quarter of fiscal 2016 and 2015, and excluding goodwill impairment charges discussed below in this Note, were recorded in the Unaudited Condensed Consolidated Statements of Operations (in thousands): Three Months Ended 2/29/2016 2/28/2015 Reported within other asset impairment charges (1) : Long-lived assets $ 7,336 $ 41,544 Accelerated depreciation 6,208 — Investment in joint venture 1,968 — Assets held for sale 1,659 1,549 Other assets (1) 1,287 745 18,458 43,838 Reported within restructuring charges and other exit-related costs Long-lived assets 329 — Accelerated depreciation 630 3,686 Other assets 1,102 — 2,061 3,686 Reported within discontinued operations Long-lived assets 673 2,666 Accelerated depreciation 274 — 947 2,666 Total $ 21,466 $ 50,190 _____________________________ (1) Other asset impairment charges were incurred in the AMR operating segment, except for $79 thousand and $745 thousand of impairment charges on Other Assets related to Corporate for the three months ended February 29, 2016 and February 28, 2015, respectively. 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 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. 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). A component of an operating segment is required to be identified as a reporting unit if the component is a business for which discrete financial information is available and segment management regularly reviews its operating results. In the fourth quarter of fiscal 2015, the Company changed its internal organizational and reporting structure to combine the auto and metals recycling businesses, which resulted in the formation of a new operating and reportable segment, AMR, replacing the former MRB and APB operating segments. This change led to the identification of components within AMR based on the disaggregation of financial information regularly reviewed by segment management by geographic area. Components with similar economic characteristics were aggregated into reporting units and goodwill was reassigned to the affected reporting units using the relative fair value approach as of the date of the reassessment, July 1, 2015. Beginning on that date, the Company's goodwill is carried by two regionally-defined reporting units, one consisting of a single component with $168 million of allocated goodwill, and the other consisting of two components with similar economic characteristics aggregated into a reporting unit with $9 million of allocated goodwill. 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 goodwill impairment charges of $9 million and $141 million during the second quarter of fiscal 2016 and 2015, respectively. 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. 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 is maintained with major financial institutions. Balances with these institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of February 29, 2016 . 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 $18 million and $33 million of open letters of credit relating to accounts receivable as of February 29, 2016 and August 31, 2015 , 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 - 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 | 6 Months Ended |
Feb. 29, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. An accounting standard update issued in August 2015 deferred the effective date for applying the guidance in the original standard by one year, which is now effective for the Company beginning in the first quarter of fiscal 2019, including interim periods within that fiscal year. In March 2016, an accounting standard was issued which further clarifies the implementation guidance on principal versus agent considerations, which will also be effective beginning in the first quarter of fiscal 2019. Upon becoming effective, the Company will apply the amendments in the updated standards 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 these standards 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. This is not applicable to debt issuance costs related to line-of-credit arrangements, as specified in a related accounting standard update issued in August 2015. 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. Adoption of the standard is not expected to have a material impact on the Company's financial position. 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. In July 2015, an accounting standard update was issued that requires an entity to measure certain types of inventory, including inventory that is measured using the first-in, first out (FIFO) or average cost method, at the lower of cost and net realizable value. The current accounting standard requires an entity to measure inventory at the lower of cost or market, whereby market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using the last-in, first-out (LIFO) or retail inventory method. The standard is effective for the Company beginning in the first quarter of fiscal 2017, including interim periods within that fiscal year. Adoption of the standard is not expected to have a material impact on the Company's financial position, results of operations and cash flows. In September 2015, an accounting standard update was issued that eliminates the requirement to retrospectively adjust provisional amounts recognized in a business acquisition recorded in previous reporting periods. The amendments, instead, require that the acquirer recognize adjustments to provisional amounts that are identified during the one-year measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The standard is effective for the Company beginning in the first quarter of fiscal 2017, including interim periods within that fiscal year. Adoption of the standard is not expected to have a material impact on the Company's financial position, results of operations and cash flows. In February 2016, an accounting standard was issued that will supersede the existing lease standard and requiring a lessee to recognize a lease liability and a lease asset on its balance sheet for all leases, including those classified as operating leases under the existing lease standard. The update also expands the required quantitative and qualitative disclosures surrounding leases. This standard is effective for the Company beginning in the first quarter of fiscal 2020, including interim periods within that fiscal year. This standard will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is evaluating the impact of adopting this standard on its consolidated financial position, results of operations and cash flows. |
Inventories
Inventories | 6 Months Ended |
Feb. 29, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): February 29, 2016 August 31, 2015 Processed and unprocessed scrap metal $ 49,417 $ 56,860 Semi-finished goods (billets) 8,603 10,648 Finished goods 51,141 50,440 Supplies 36,869 38,584 Inventories $ 146,030 $ 156,532 |
Goodwill
Goodwill | 6 Months Ended |
Feb. 29, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company tests the goodwill in 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. During the second quarter of fiscal 2016, management identified the combination of sustained weak market conditions, including the adverse effects of lower commodity selling prices and the constraining impact of the lower price environment on the supply of raw materials which negatively impacted volumes, the Company’s recent financial performance and a decline in the Company’s market capitalization 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 2016, the Company used a measurement date of February 1, 2016. For the reporting unit with $9 million of goodwill as of February 1, 2016, the first step of the impairment test showed that the fair value of the 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 reporting unit, resulting in an impairment of the entire carrying amount of the reporting unit's goodwill totaling $9 million . For the reporting unit with $166 million of goodwill as of February 1, 2016, the estimated fair value of the reporting unit exceeded its carrying value by approximately 27% . The projections used in the income approach for the reporting unit took into consideration the impact of current market conditions for ferrous and nonferrous recycled metals, the cost of obtaining adequate supply flows of scrap metal including end-of-life vehicles, and recent trends of self-serve parts sales. The projections assumed a limited recovery of operating margins from current depressed levels over a multi-year period, including the benefits of recently initiated cost-saving and productivity improvement measures. The market-based WACC used in the income approach for the reporting unit was 11.16% . The terminal growth rate used in the discounted cash flow model was 2% . Assuming all other components of the fair value estimate were held constant, an increase in the WACC of 2% or more or weaker than anticipated improvements in operating margins could have resulted in a failure of the step one quantitative impairment test for the 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 the Company's Class A common stock for the two-week period ended February 1, 2016) and the higher aggregated estimated fair value of all 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, 2016. 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, 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 reporting unit with allocated goodwill, a 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 reportable segment for the six months ended February 29, 2016 were as follows (in thousands): Auto and Metals Recycling August 31, 2015 $ 175,676 Foreign currency translation adjustment (555 ) Goodwill impairment charge (8,845 ) February 29, 2016 $ 166,276 Accumulated goodwill impairment charges were $471 million and $462 million as of February 29, 2016 and August 31, 2015 respectively. |
Debt
Debt | 6 Months Ended |
Feb. 29, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | On April 6, 2016, the Company and certain of its subsidiaries entered into the Third Amended and Restated Credit Agreement (the "Amended Credit Agreement") with Bank of America, N.A. as administrative agent, and the other lenders party thereto, which amends and restates the Company’s existing unsecured credit agreement. The Amended Credit Agreement provides for $335 million and C$15 million in senior secured revolving credit facilities maturing in April 2021. Subject to the terms and conditions of the Amended Credit Agreement, the Company may request that the commitments under the U.S. credit facility be increased by an aggregate amount not exceeding $100 million . Prior to its amendment and renewal, the credit agreement provided for revolving loans of $670 million and C$30 million maturing in April 2017 . The Company had $198 million in borrowings outstanding under the credit agreement as of April 5, 2016 prior to its amendment and renewal. As of February 29, 2016 and August 31, 2015, borrowings outstanding under the credit agreement were $185 million and $215 million , respectively. Interest rates on outstanding indebtedness under the Amended Credit Agreement are based, at the Company’s option, on either the London Interbank Offered Rate ("LIBOR"), or the Canadian equivalent, plus a spread of between 1.75% and 2.75% , with the amount of the spread based on a pricing grid tied to the Company’s leverage ratio but no less than 2.50% for the fiscal quarters ending May 31, 2016, August 31, 2016 and November 30, 2016, or the greater of the prime rate, the federal funds rate plus 0.50% or the daily rate equal to one-month LIBOR plus 1.75% , in each case plus a spread of between 0.00% and 1.00% based on a pricing grid tied to the Company's leverage ratio. In addition, commitment fees are payable on the unused portion of the credit facilities at rates between 0.20% and 0.40% based on a pricing grid tied to the Company’s leverage ratio. The Amended Credit Agreement contains certain customary covenants, including covenants that limit the ability of the Company and its subsidiaries to enter into certain types of transactions. Financial covenants include covenants requiring maintenance of a minimum fixed charge coverage ratio, a maximum leverage ratio and a minimum asset coverage ratio. The Company’s obligations under the Amended Credit Agreement are guaranteed by substantially all of its subsidiaries. The credit facilities and the related guarantees are secured by senior first priority liens on certain of the Company's and its subsidiaries’ assets, including equipment, inventory and accounts receivable. The Company also had an unsecured, uncommitted $25 million credit line with Wells Fargo Bank, N.A. that expired on April 1, 2016 . Interest rates were set by the bank at the time of borrowing. The Company had no borrowings outstanding under this credit line as of February 29, 2016 and August 31, 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 29, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company evaluates the adequacy of its environmental liabilities on a quarterly basis. Adjustments to the liabilities are made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or expenditures are made for which liabilities were established. Changes in the Company’s environmental liabilities for the six months ended February 29, 2016 were as follows (in thousands): Reportable Segment Balance as of August 31, 2015 Liabilities Established (Released), Net Payments and Other Balance as of February 29, 2016 Short-Term Long-Term Auto and Metals Recycling $ 46,494 $ (178 ) $ (810 ) $ 45,506 $ 732 $ 44,774 Corporate 299 — (29 ) 270 150 120 Total $ 46,793 $ (178 ) $ (839 ) $ 45,776 $ 882 $ 44,894 Auto and Metals Recycling (“AMR”) As of February 29, 2016 , AMR had environmental liabilities of $46 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. However, the EPA largely rejected this draft FS, and took over the drafting process. The EPA provided their revised draft FS to the LWG and other key stakeholders in sections, with the final section being made available in August 2015. The revised draft FS identifies five possible remedial alternatives which range in estimated cost from approximately $550 million to $1.19 billion (net present value) for the least costly alternative to approximately $1.71 billion to $3.67 billion (net present value) for the most costly and estimates a range of four to eighteen years to implement the remedial work, depending on the selected alternative. The Company and other stakeholders have identified a number of concerns regarding the EPA's cost estimates, scheduling assumptions and conclusions regarding the effectiveness of remediation technologies. The revised draft FS does not determine who is responsible for remediation costs, define the precise cleanup boundaries or select remedies. While the revised 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”). In November 2015, EPA Region 10 presented its preferred alternative remedy to the National Remedy Review Board ("NRRB"), a peer review group that has been established to review proposed Superfund cleanup decisions for consistency with the Superfund statute, regulations, and guidance. EPA Region 10’s preferred alternative presented to the NRRB is a modified version of one of the alternatives (Alternative E) in the revised draft FS, and EPA Region 10 estimates that its preferred alternative would take seven years to implement, with an estimated cost of $1.4 billion (net present value). The Company and other stakeholders believe that this preferred alternative raises the same concerns regarding EPA’s cost estimates, scheduling assumptions, and remedy feasibility and effectiveness as identified with the revised draft FS. EPA Region 10 has stated that it expects to release a Proposed Cleanup Plan for public review and comment in May 2016 and to issue its final ROD selecting a remedy for the Site in late 2016. It is uncertain whether the preferred alternative presented by Region 10 in November 2015 will be what the EPA sets forth as its Proposed Cleanup Plan or will be the selected remedy in the final ROD or whether the EPA will be able to maintain its proposed schedule for issuing the ROD. The next phase in the process following the ROD is the remedial design. The remedial design phase is an engineering phase during which additional technical information and data will be collected, identified and incorporated into technical drawings and specifications developed for the subsequent remedial action. The EPA will be seeking a new coalition of PRPs to perform the remedial design activities. Remediation activities are not expected to commence for a number of years and responsibility for implementing and funding the EPA’s selected remedy will be determined in a separate allocation process. While an allocation process is currently underway, the EPA's revised draft FS and its approach to the proposed alternative remedies have raised questions and uncertainty as to how that allocation process will proceed. 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 to or which it is reasonably possible that it will 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 being developed 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, remediation and mitigation for natural resource damages claims in connection with the Site, although there is no assurance that those policies will cover all of the costs which the Company may incur. The Company previously recorded a liability for its estimated share of the costs of the investigation of $1 million . The Oregon Department of Environmental Quality is separately providing oversight of voluntary investigations by the Company involving the Company’s sites adjacent to the Portland Harbor which are focused on controlling any current “uplands” releases of contaminants into the Willamette River. No liabilities have been established in connection with these investigations because the extent of contamination (if any) and the Company’s responsibility for the contamination (if any) have not yet been determined. Other AMR Sites As of February 29, 2016 , the Company had environmental liabilities related to various AMR sites other than Portland Harbor of $45 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. SMB has an operating permit issued under Title V of the Clean Air Act Amendments of 1990, which governs certain air quality standards. The permit is based on an annual production capacity of 950 thousand tons. The permit was first issued in 1998 and has since been renewed through February 1, 2018 . SMB had no environmental liabilities as of February 29, 2016 . 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 | 6 Months Ended |
Feb. 29, 2016 | |
Restructuring Charges, Asset Impairment and Accelerated Depreciation [Abstract] | |
Restructuring Charges and Other Exit-Related Costs | Restructuring Charges and Other Exit-Related Costs The Company has implemented a number of restructuring initiatives designed to reduce operating expenses and improve profitability and to achieve further integration and synergistic cost efficiencies in its operating platform. The restructuring charges incurred by the Company during the periods presented pertain to three separate plans: the plans announced in the first quarter of fiscal 2014 (the “Q1’14 Plan”), the Q1’15 Plan and the Q2'15 Plan. The Q1'14 Plan was designed to reduce the Company's annual operating expenses through headcount reductions, productivity improvements, procurement savings and other operational efficiencies. The Q1'15 Plan included additional productivity initiatives to improve profitability through a combination of revenue drivers and cost reduction initiatives. At the end of the second quarter of fiscal 2015, the Company commenced additional restructuring and exit-related initiatives by undertaking strategic actions consisting of idling underutilized assets at AMR and initiating the closure of seven auto parts stores to align the Company's business to the prevalent market conditions. The Company expanded these initiatives in April 2015, and also announced the integration of the MRB and APB Businesses into the combined AMR platform, in order to achieve operational synergies and reduce the Company's annual operating expenses, primarily selling, general and administrative expenses, through headcount reductions, reducing organizational layers, consolidating shared service functions and other non-headcount measures. Additional cost savings and productivity improvement initiatives, including additional reductions in personnel, savings from procurement activities, streamlining of administrative and supporting services functions, and adjustments to our operating capacity through facility closures, were identified and initiated in November 2015 and in February 2016. Collectively, these initiatives are referred to as the Q2'15 Plan. The Company incurred restructuring charges of $3 million and $5 million during the three and six months ended February 29, 2016 , respectively, and $2 million and $3 million during the three and six months ended February 28, 2015 , respectively. The remaining charges relating to these initiatives are expected to be substantially incurred by the end of fiscal 2017. The significant majority of the restructuring charges require the Company to make cash payments. In addition to the restructuring charges recorded related to these initiatives, in the second quarter of fiscal 2016 and 2015 the Company incurred other exit-related costs consisting of long-lived asset impairments and accelerated depreciation due to shortened useful lives of long-lived assets, including from abandonment, in connection with site closures and idled equipment. Restructuring charges and other exit-related costs were comprised of the following (in thousands): Three Months Ended February 29, 2016 Three Months Ended February 28, 2015 All Other Plans Q2’15 Plan Total Charges All Other plans Q2’15 Plan Total Charges Restructuring charges: Severance costs $ — $ 3,185 $ 3,185 $ 371 $ 540 $ 911 Contract termination costs 35 12 47 56 79 135 Other restructuring costs — — — 880 93 973 Total restructuring charges 35 3,197 3,232 1,307 712 2,019 Other exit-related costs: Asset impairments and accelerated depreciation — 3,008 3,008 — 6,352 6,352 Total other exit-related costs — 3,008 3,008 — 6,352 6,352 Total restructuring charges and other exit-related costs $ 35 $ 6,205 $ 6,240 $ 1,307 $ 7,064 $ 8,371 Restructuring charges and other exit-related costs included in continuing operations $ 5,291 $ 5,394 Restructuring charges and other exit-related costs included in discontinued operations $ 949 $ 2,977 Six Months Ended February 29, 2016 Six Months Ended February 28, 2015 All Other Plans Q2’15 Plan Total Charges All Other Plans Q2’15 Plan Total Charges Restructuring charges: Severance costs $ — $ 4,346 $ 4,346 $ 398 $ 540 $ 938 Contract termination costs 125 657 782 309 79 388 Other restructuring costs — — — 1,223 93 1,316 Total restructuring charges 125 5,003 5,128 1,930 712 2,642 Other exit-related costs: Asset impairments and accelerated depreciation — 3,008 3,008 — 6,352 6,352 Total other exit-related costs — 3,008 3,008 — 6,352 6,352 Total restructuring charges and other exit-related costs $ 125 $ 8,011 $ 8,136 $ 1,930 $ 7,064 $ 8,994 Restructuring charges and other exit-related costs included in continuing operations $ 7,216 $ 5,987 Restructuring charges and other exit-related costs included in discontinued operations $ 920 $ 3,007 All Other Plans Q2'15 Plan Total Total restructuring charges to date $ 7,886 $ 13,626 $ 21,512 Total expected restructuring charges $ 7,941 $ 14,030 $ 21,971 The following illustrates the reconciliation of the restructuring liability by major type of costs for the six months ended February 29, 2016 (in thousands): All Other Plans Q2’15 Plan All Plans Balance 8/31/2015 Charges Payments and Other Balance 2/29/2016 Balance 8/31/2015 Charges Payments and Other Balance 2/29/2016 Total Charges to Date Total Expected Charges Severance costs $ — $ — $ — $ — $ 1,226 $ 4,346 $ (2,061 ) $ 3,511 $ 14,582 $ 14,646 Contract termination costs 362 125 (388 ) 99 1,320 657 (702 ) 1,275 3,248 3,643 Other restructuring costs — — — — — — — — 3,682 3,682 Total $ 362 $ 125 $ (388 ) $ 99 $ 2,546 $ 5,003 $ (2,763 ) $ 4,786 $ 21,512 $ 21,971 Due to the individual immateriality of the activity and liability balances for each of the Q1'14 Plan and Q1'15 Plan, the disclosure of restructuring activity and the reconciliation of the restructuring liability for these two plans is provided in the aggregate ("All Other Plans"). Restructuring charges and other exit-related costs by reportable segment and discontinued operations were as follows (in thousands): Three Months Ended Six Months Ended Total Charges to Date Total Expected Charges 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Restructuring charges: Auto and Metals Recycling $ 2,421 $ 1,645 $ 4,343 $ 2,244 $ 15,141 $ 15,593 Unallocated (Corporate) 809 63 812 57 4,819 4,826 Discontinued operations 2 311 (27 ) 341 1,552 1,552 Total restructuring charges 3,232 2,019 5,128 2,642 21,512 21,971 Other exit-related costs: Auto and Metals Recycling 2,061 3,686 2,061 3,686 6,463 Discontinued operations 947 2,666 947 2,666 3,613 Total other exit-related costs 3,008 6,352 3,008 6,352 10,076 Total restructuring charges and other exit-related costs $ 6,240 $ 8,371 $ 8,136 $ 8,994 $ 31,588 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 | 6 Months Ended |
Feb. 29, 2016 | |
Stockholders' Equity Note [Abstract] | |
Changes in Equity | Changes in Equity Changes in equity were comprised of the following (in thousands): Six Months Ended February 29, 2016 Six Months Ended February 28, 2015 SSI Shareholders’ Equity Noncontrolling Interests Total Equity SSI Shareholders’ Equity Noncontrolling Interests Total Equity Balance - September 1 (Beginning of period) $ 534,535 $ 4,016 $ 538,551 $ 770,784 $ 5,193 $ 775,977 Net income (loss) (46,541 ) 604 (45,937 ) (198,115 ) 631 (197,484 ) Other comprehensive loss, net of tax (1,556 ) — (1,556 ) (23,507 ) — (23,507 ) Distributions to noncontrolling interests — (971 ) (971 ) — (1,585 ) (1,585 ) Share repurchases (3,479 ) — (3,479 ) — — — Restricted stock withheld for taxes (1,895 ) — (1,895 ) (1,360 ) — (1,360 ) Share-based compensation 2,627 — 2,627 4,300 — 4,300 Excess tax deficiency from stock options exercised and restricted stock units vested — — — (704 ) — (704 ) Dividends (10,268 ) — (10,268 ) (10,298 ) — (10,298 ) Balance - February 29, 2016 and February 28, 2015 (End of period) $ 473,423 $ 3,649 $ 477,072 $ 541,100 $ 4,239 $ 545,339 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Feb. 29, 2016 | |
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 February 29, 2016 Three Months Ended February 28, 2015 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 - December 1 (Beginning of period) $ (35,018 ) $ (4,232 ) $ — $ (39,250 ) $ (17,935 ) $ (2,000 ) $ (850 ) $ (20,785 ) Other comprehensive loss before reclassifications (892 ) — — (892 ) (12,601 ) — (3,424 ) (16,025 ) Income tax benefit — — — — — — — — Other comprehensive loss before reclassifications, net of tax (892 ) — — (892 ) (12,601 ) — (3,424 ) (16,025 ) Amounts reclassified from accumulated other comprehensive loss — 101 — 101 — 38 853 891 Income tax benefit — (37 ) — (37 ) — (15 ) (214 ) (229 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 64 — 64 — 23 639 662 Net periodic other comprehensive income (loss) (892 ) 64 — (828 ) (12,601 ) 23 (2,785 ) (15,363 ) Balances - February 29, 2016 and February 28, 2015 (End of period) $ (35,910 ) $ (4,168 ) $ — $ (40,078 ) $ (30,536 ) $ (1,977 ) $ (3,635 ) $ (36,148 ) Six Months Ended February 29, 2016 Six Months Ended February 28, 2015 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) $ (34,009 ) $ (4,273 ) $ (240 ) $ (38,522 ) $ (10,663 ) $ (2,036 ) $ 58 $ (12,641 ) Other comprehensive loss before reclassifications (1,901 ) — — (1,901 ) (19,873 ) — (5,136 ) (25,009 ) Income tax benefit — — — — — — 428 428 Other comprehensive loss before reclassifications, net of tax (1,901 ) — — (1,901 ) (19,873 ) — (4,708 ) (24,581 ) Amounts reclassified from accumulated other comprehensive loss — 165 312 477 — 87 1,354 1,441 Income tax benefit — (60 ) (72 ) (132 ) — (28 ) (339 ) (367 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 105 240 345 — 59 1,015 1,074 Net periodic other comprehensive income (loss) (1,901 ) 105 240 (1,556 ) (19,873 ) 59 (3,693 ) (23,507 ) Balances - February 29, 2016 and February 28, 2015 (End of period) $ (35,910 ) $ (4,168 ) $ — $ (40,078 ) $ (30,536 ) $ (1,977 ) $ (3,635 ) $ (36,148 ) 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 | 6 Months Ended |
Feb. 29, 2016 | |
Discontinued Operations [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 in accordance with the accounting standards in effect at the time. The operations of the six qualifying stores had previously been reported within the APB reportable segment, which was subsequently replaced by the AMR reportable segment in the fourth quarter of fiscal 2015. In the second quarter of fiscal 2016 and 2015, the Company recorded impairment charges of $1 million and $3 million , respectively, on the long-lived assets of discontinued auto parts stores. Impaired assets in the second quarter of fiscal 2016 consisted primarily of capital lease assets associated with the buildings on two leased properties. Operating results of discontinued operations were comprised of the following (in thousands): Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Revenues $ — $ 3,140 $ — $ 6,770 Loss from discontinued operations before income taxes $ (1,015 ) $ (4,321 ) $ (1,094 ) $ (5,257 ) Income tax (expense) benefit (9 ) 79 5 177 Loss from discontinued operations, net of tax $ (1,024 ) $ (4,242 ) $ (1,089 ) $ (5,080 ) |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Feb. 29, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company previously 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. The Company did not have any foreign currency exchange forward contracts as of February 29, 2016 , and the results of contracts that expired during fiscal 2016 were immaterial. Accordingly, the results of foreign currency exchange forward contracts for fiscal 2016 are excluded from the tabular disclosures below. The fair value of derivative instruments in the Unaudited Condensed Consolidated Balance Sheets is as follows (in thousands): Asset (Liability) Derivatives Balance Sheet Location August 31, 2015 Foreign currency exchange forward contracts Prepaid expenses and other current assets $ — Foreign currency exchange forward contracts Other accrued liabilities $ (751 ) The following table summarizes the results of foreign currency exchange derivatives (in thousands): Derivative Gain (Loss) Recognized Three Months Ended February 28, 2015 Other Comprehensive Loss Revenues - Effective Portion Other Income (Expense), net Foreign currency exchange forward contracts - designated as cash flow hedges $ (3,424 ) $ (853 ) $ 121 Foreign currency exchange forward contracts - not designated as cash flow hedges $ — $ — $ (117 ) Derivative Gain (Loss) Recognized Six Months Ended February 28, 2015 Other Comprehensive Loss Revenues - Effective Portion Other Income (Expense), net Foreign currency exchange forward contracts $ (5,136 ) $ (1,354 ) $ 175 Foreign currency exchange forward contracts $ — $ — $ (122 ) There was no hedge ineffectiveness with respect to the forward currency exchange cash flow hedges for the three and six months ended February 28, 2015 . |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Feb. 29, 2016 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation In the first quarter of fiscal 2016, as part of the annual awards under the Company's Long-Term Incentive Plan, the Compensation Committee of the Company's Board of Directors ("Compensation Committee") granted 203,728 restricted stock units ("RSUs") and 201,702 performance share awards to the Company's key employees and officers under the Company's 1993 Amended and Restated Stock Incentive Plan ("SIP"). The RSUs have a five -year term and vest 20% per year commencing October 31, 2016. In addition, in the first quarter of fiscal 2016 the Compensation Committee granted 48,163 RSUs with a two -year vesting term and no retirement-eligibility provisions under the SIP. The aggregate fair value of all of the RSUs granted was based on the market closing price of the underlying Class A common stock on the grant date and totaled $4 million . The compensation expense associated with the RSUs is recognized over the requisite service period of the awards, net of forfeitures. The performance share awards are comprised of two separate and distinct awards with different vesting conditions. The Compensation Committee granted 99,860 performance share awards based on a relative Total Shareholder Return ("TSR") metric over a performance period spanning November 9, 2015 to August 31, 2018 . Award share payouts range from 0% to a maximum of 200% based on the relative ranking of the Company's TSR among a designated peer group of 16 companies. The TSR award stipulates certain limitations to the payout in the event the payout reaches a defined ceiling level or the Company's TSR is negative. The TSR awards contain a market condition and, therefore, once the award recipients complete the requisite service period, the related compensation expense based on the grant-date fair value is not changed, regardless of whether the market condition has been satisfied. The estimated fair value of the TSR awards at the date of grant was $2 million . The Company estimated the fair value of the TSR awards using a Monte-Carlo simulation model utilizing several key assumptions including expected Company and peer company share price volatility, correlation coefficients between peers, the risk-free rate of return, the expected dividend yield and other award design features. The remaining 101,842 performance share awards have a three -year performance period consisting of the Company’s fiscal 2016, 2017 and 2018. The performance targets are based on the Company's cash flow return on investment over the three -year performance period, with award payouts ranging from 0% to a maximum of 200% . The fair value of the awards granted was based on the market closing price of the underlying Class A common stock on the grant date and totaled $2 million. The compensation expense associated with performance share awards is recognized over the requisite service period, net of forfeitures. Performance share awards will be paid in Class A common stock as soon as practicable after the end of the requisite service period and vesting date of October 31, 2018 . In the second quarter of fiscal 2016, 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 57,780 shares that will vest on the day before the Company's 2017 annual meeting, subject to continued Board service. The total value of these awards at the grant date was $1 million . 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 | 6 Months Ended |
Feb. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the Company’s continuing operations for the three and six months ended February 29, 2016 was an expense of 3.3% and 1.6% , respectively, compared to a benefit of 4.8% and 4.7% for the three and six months ended February 28, 2015 , respectively. A reconciliation of the difference between the federal statutory rate and the Company’s effective rate is as follows: Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Federal statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State taxes, net of credits 1.6 1.1 1.5 1.1 Foreign income taxed at different rates (4.5 ) (7.4 ) (5.1 ) (7.6 ) Non-deductible officers’ compensation (1.1 ) (0.1 ) (0.7 ) (0.1 ) Noncontrolling interests 2.6 0.5 1.8 0.5 Research and development credits 0.8 0.1 0.6 0.1 Valuation allowance on deferred tax assets (35.2 ) (20.5 ) (32.9 ) (20.4 ) Non-deductible goodwill (0.4 ) (2.8 ) (0.4 ) (2.8 ) Unrecognized tax benefits (0.9 ) (0.5 ) (0.7 ) (0.5 ) Other (1.2 ) (0.6 ) (0.7 ) (0.6 ) Effective tax rate (3.3 )% 4.8 % (1.6 )% 4.7 % _____________________________ (1) For periods with reported pre-tax losses, the effect of reconciling items with positive signs is a tax benefit in excess of applying the federal statutory rate to the pre-tax loss. The effective tax rate from continuing operations for the second quarter and first six months of fiscal 2016 was lower than the federal statutory rate of 35% primarily due to the low projected annual effective tax rate applied to the quarterly results. The low projected annual effective tax rate is the result of the Company’s full valuation allowance positions partially offset by increases in deferred tax liabilities from indefinite-lived assets in all jurisdictions. The effective tax rate for the second quarter and first six months of fiscal 2015 was impacted primarily by the recognition of valuation allowances of $42 million on current period benefits in multiple taxing jurisdictions and the impact of the lower financial performance of foreign operations, which are taxed at more favorable rates. The deferred tax assets for which a valuation allowance was recorded were related primarily to deductible temporary differences created in the second quarter by the impairment charges to goodwill and other assets. The Company files federal and state income tax returns in the U.S. and foreign tax returns in Puerto Rico and Canada. At this time, the Company is under examination in one of its taxing jurisdictions, Canada, for fiscal years 2013 and 2014. For U.S. federal income tax returns, fiscal years 2012 to 2015 remain subject to examination under the statute of limitations. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Feb. 29, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the information used to compute basic and diluted net loss per share attributable to SSI (in thousands): Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Loss from continuing operations $ (39,946 ) $ (191,640 ) $ (44,848 ) $ (192,404 ) Net (income) loss attributable to noncontrolling interests (275 ) 240 (604 ) (631 ) Loss from continuing operations attributable to SSI (40,221 ) (191,400 ) (45,452 ) (193,035 ) Loss from discontinued operations, net of tax (1,024 ) (4,242 ) (1,089 ) (5,080 ) Net loss attributable to SSI $ (41,245 ) $ (195,642 ) $ (46,541 ) $ (198,115 ) Computation of shares: Weighted average common shares outstanding, basic 27,201 27,020 27,178 26,982 Incremental common shares attributable to dilutive stock options, performance share awards, DSUs, and RSUs — — — — Weighted average common shares outstanding, diluted 27,201 27,020 27,178 26,982 Common stock equivalent shares of 993,799 and 925,615 , respectively, were considered antidilutive and were excluded from the calculation of diluted net loss per share for each of the three and six months ended February 29, 2016 , compared to 1,325,818 and 1,261,928 common stock equivalent shares for each of the three and six months ended February 28, 2015 . |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Feb. 29, 2016 | |
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 $2 million and $6 million for the three months ended February 29, 2016 and February 28, 2015 , respectively, and $6 million and $13 million for the six months ended February 29, 2016 and February 28, 2015 , respectively. Thomas D. Klauer, Jr., who had been President of the Company’s former 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 less than $1 million and $1 million for the three and six months ended February 28, 2015 , 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 for each of the three and six months ended February 28, 2015 . |
Segment Information
Segment Information | 6 Months Ended |
Feb. 29, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The accounting standards for reporting information about operating segments define an operating segment as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses 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. Prior to the fourth quarter of fiscal 2015, the Company's internal organizational and reporting structure supported three operating and reportable segments: the Metals Recycling Business ("MRB"), the Auto Parts Business ("APB") and the Steel Manufacturing Business ("SMB"). In the fourth quarter of fiscal 2015, in accordance with its plan announced in April 2015, the Company combined and integrated its auto parts and metals recycling businesses into a single operating platform. This resulted in a realignment of how the Chief Executive Officer, who is considered the Company's chief operating decision maker, reviews performance and makes decisions on resource allocation. The change in the Company's internal organizational and reporting structure resulted in the formation of a new operating and reportable segment, the Auto and Metals Recycling ("AMR") business, replacing the former MRB and APB segments. The Company began reporting on this new segment in the fourth quarter of fiscal 2015 as reflected in its Annual Report on Form 10-K for the year ended August 31, 2015 . The segment data for the comparable periods presented herein has been revised to conform to the current period presentation for all activities of AMR. Recasting this historical information did not have an impact on the Company's consolidated financial performance for any of the periods presented. AMR buys and processes ferrous and nonferrous metal for sale to foreign and other domestic steel producers or their representatives and to SMB. In addition, AMR purchases ferrous metal from other processors for shipment directly to SMB. AMR also procures salvaged vehicles and sells serviceable used auto parts from these vehicles through a network of self-service auto parts stores. The Company is a noncontrolling partner in joint ventures, which are either in the metals recycling business or are suppliers of unprocessed metal, the results of which are reported within the AMR reportable segment. 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 AMR to SMB are made at rates that approximate market prices for shipments from the West Coast of the U.S. These intercompany sales tend to produce intercompany profits which are not recognized until the finished products are ultimately sold to third parties. The information provided below is obtained from internal information that is provided to the Company’s chief operating decision maker for the purpose of corporate management. The Company uses segment operating income to measure segment performance. The Company does not allocate corporate interest income and expense, income taxes and other income and expense to its reportable segments. Expenses related to shared services that support operational activities and transactions is allocated from Corporate to the segments. Unallocated Corporate expense consists primarily of expense for certain shared services management and administrative services that benefit both reportable 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. 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 revenues from continuing operations by reportable segment (in thousands): Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Revenues: Auto and Metals Recycling: Revenues $ 249,812 $ 389,057 $ 522,777 $ 902,745 Less: Intersegment revenues (19,126 ) (44,734 ) (42,794 ) (100,016 ) AMR external customer revenues 230,686 344,323 479,983 802,729 Steel Manufacturing Business: Revenues 58,391 93,126 130,292 188,344 Total revenues $ 289,077 $ 437,449 $ 610,275 $ 991,073 The table below illustrates the reconciliation of the Company’s segment operating loss to the loss from continuing operations before income taxes (in thousands): Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Auto and Metals Recycling $ (26,350 ) $ (188,640 ) $ (24,314 ) $ (183,911 ) Steel Manufacturing Business (1,202 ) 3,799 1,552 10,006 Segment operating loss (27,552 ) (184,841 ) (22,762 ) (173,905 ) Restructuring charges and other exit-related costs (5,291 ) (5,394 ) (7,216 ) (5,987 ) Corporate and eliminations (4,233 ) (10,776 ) (11,126 ) (20,334 ) Operating loss (37,076 ) (201,011 ) (41,104 ) (200,226 ) Interest expense (2,015 ) (2,295 ) (3,874 ) (4,669 ) Other income, net 438 1,993 845 2,925 Loss from continuing operations before income taxes $ (38,653 ) $ (201,313 ) $ (44,133 ) $ (201,970 ) The following is a summary of the Company’s total assets by reportable segment (in thousands): February 29, 2016 August 31, 2015 Auto and Metals Recycling (1) $ 1,452,722 $ 1,492,906 Steel Manufacturing Business 369,836 370,955 Total segment assets 1,822,558 1,863,861 Corporate and eliminations (970,385 ) (901,562 ) Total assets $ 852,173 $ 962,299 _____________________________ (1) AMR total assets include $13 million and $15 million as of February 29, 2016 and August 31, 2015 , respectively, for investments in joint ventures. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Feb. 29, 2016 | |
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, 2015 . The results for the three and six months ended February 29, 2016 and February 28, 2015 are not necessarily indicative of the results of operations for the entire fiscal year. |
Segment Reporting | Segment Reporting Prior to the fourth quarter of fiscal 2015, the Company's internal organizational and reporting structure supported three operating and reportable segments: the Metals Recycling Business ("MRB"), the Auto Parts Business ("APB") and the Steel Manufacturing Business ("SMB"). In the fourth quarter of fiscal 2015, in accordance with its plan announced in April 2015, the Company combined and integrated its auto parts and metals recycling businesses into a single operating platform. The change in the Company's internal organizational and reporting structure resulted in the formation of a new operating and reportable segment, the Auto and Metals Recycling ("AMR") business, replacing the former MRB and APB segments. The Company began reporting on this new segment in the fourth quarter of fiscal 2015 as reflected in its Annual Report on Form 10-K for the year ended August 31, 2015 . The segment data for the comparable periods presented herein has been recast to conform to the current period presentation for all activities of AMR. Recasting this historical information did not have an impact on the Company's consolidated financial performance for any of the periods presented. |
Accounting Changes | Accounting Changes 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 Company adopted the new requirement in the first quarter of fiscal 2016 with no impact to the Unaudited Condensed Consolidated Financial Statements. The standard 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. In November 2015, an accounting standard update was issued that requires deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. To simplify the presentation of the Company's deferred tax liabilities and assets, along with valuation allowances against deferred tax assets, the Company early-adopted the new requirement as of the beginning of the first quarter of fiscal 2016 and is applying the amendments prospectively. Adoption of the new requirement impacted the classification of the Company's deferred tax liabilities and assets reported in its Unaudited Condensed Consolidated Balance Sheet beginning as of November 30, 2015, and had no impact on its consolidated results of operations and cash flows. The comparative period balance sheet has not been retrospectively adjusted. |
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. Asset impairments related to the disposed components are also included in the results of discontinued operations. See Note 10 - Discontinued Operations and the Asset Impairment Charges section of this Note 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 $8 million and $11 million as of February 29, 2016 and August 31, 2015 , 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 February 29, 2016 and August 31, 2015 , the Company reported less than $1 million and $2 million , respectively, of assets held for sale within prepaid expenses and other current assets in the Unaudited Condensed Consolidated Balance Sheets. An asset is classified as held for sale upon meeting certain criteria specified in the accounting standards. An asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. During the second quarter of fiscal 2016 and 2015, the Company recorded impairment charges for the initial and subsequent write-down of certain equipment held for sale to its fair value less cost to sell of $2 million which are reported within other asset impairment charges in the Unaudited Condensed Consolidated Statements of Operations. The Company determined fair value using Level 3 inputs under the fair value hierarchy consisting of information provided by brokers and other external sources along with management's own assumptions. See the Asset Impairment Charges section of this Note for tabular presentation of the impairment charges on assets held for sale. |
Long-Lived Assets | Asset Impairment Charges The following asset impairment charges, all recorded during the second quarter of fiscal 2016 and 2015, and excluding goodwill impairment charges discussed below in this Note, were recorded in the Unaudited Condensed Consolidated Statements of Operations (in thousands): Three Months Ended 2/29/2016 2/28/2015 Reported within other asset impairment charges (1) : Long-lived assets $ 7,336 $ 41,544 Accelerated depreciation 6,208 — Investment in joint venture 1,968 — Assets held for sale 1,659 1,549 Other assets (1) 1,287 745 18,458 43,838 Reported within restructuring charges and other exit-related costs Long-lived assets 329 — Accelerated depreciation 630 3,686 Other assets 1,102 — 2,061 3,686 Reported within discontinued operations Long-lived assets 673 2,666 Accelerated depreciation 274 — 947 2,666 Total $ 21,466 $ 50,190 _____________________________ (1) Other asset impairment charges were incurred in the AMR operating segment, except for $79 thousand and $745 thousand of impairment charges on Other Assets related to Corporate for the three months ended February 29, 2016 and February 28, 2015, respectively. 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. For the Company's metals recycling businesses, an asset group is generally comprised of the regional shredding and export operation along with surrounding feeder yards. For regions with no shredding and export operations, each metals recycling yard is an asset group. For the Company's auto parts businesses, generally each auto parts store is an asset group. The Company's steel manufacturing business is a single asset group. 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 the second quarter of fiscal 2016 and 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. With respect to individual long-lived assets, changes in circumstances may merit a change in the estimated useful lives or salvage values of the assets, which are accounted for prospectively in the period of change. For such assets, the useful life is shortened based on the Company's current plans to dispose of or abandon the asset before the end of its original useful life and depreciation is accelerated beginning when that determination is made. During the second quarter of fiscal 2016 and 2015, the Company recognized accelerated depreciation due to shortened useful lives in connection with site closures and idled equipment. See the Asset Impairment Charges section of this Note for tabular presentation of long-lived asset impairment charges and accelerated depreciation. Long-lived asset impairment charges and accelerated depreciation are reported in the Unaudited Condensed Consolidated Statements of Operations within (1) other asset impairment charges; (2) restructuring charges and other exit-related costs, if related to a site closure not qualifying for discontinued operations reporting; or (3) discontinued operations, if related to a component of the Company qualifying for discontinued operations reporting. |
Investment in Joint Ventures | Investments in Joint Ventures A loss in value of an investment in a joint venture that is other than a temporary decline is recognized. Management considers all available evidence to evaluate the realizable value of its investments including the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the joint venture business, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Once management determines that an other-than-temporary impairment exists, the investment is written down to its fair value, which establishes a new cost basis. The Company determines fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. During the second quarter of fiscal 2016, the Company recorded an impairment charge of $2 million related to an investment in a joint venture, which is reported within other asset impairment charges in the Unaudited Consolidated Statements of Operations. |
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 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. 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). A component of an operating segment is required to be identified as a reporting unit if the component is a business for which discrete financial information is available and segment management regularly reviews its operating results. In the fourth quarter of fiscal 2015, the Company changed its internal organizational and reporting structure to combine the auto and metals recycling businesses, which resulted in the formation of a new operating and reportable segment, AMR, replacing the former MRB and APB operating segments. This change led to the identification of components within AMR based on the disaggregation of financial information regularly reviewed by segment management by geographic area. Components with similar economic characteristics were aggregated into reporting units and goodwill was reassigned to the affected reporting units using the relative fair value approach as of the date of the reassessment, July 1, 2015. Beginning on that date, the Company's goodwill is carried by two regionally-defined reporting units, one consisting of a single component with $168 million of allocated goodwill, and the other consisting of two components with similar economic characteristics aggregated into a reporting unit with $9 million of allocated goodwill. 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 goodwill impairment charges of $9 million and $141 million during the second quarter of fiscal 2016 and 2015, respectively. 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. |
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 is maintained with major financial institutions. Balances with these institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of February 29, 2016 . 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 $18 million and $33 million of open letters of credit relating to accounts receivable as of February 29, 2016 and August 31, 2015 , 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 - 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 Accoun24
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Asset Impairment Charges | The following asset impairment charges, all recorded during the second quarter of fiscal 2016 and 2015, and excluding goodwill impairment charges discussed below in this Note, were recorded in the Unaudited Condensed Consolidated Statements of Operations (in thousands): Three Months Ended 2/29/2016 2/28/2015 Reported within other asset impairment charges (1) : Long-lived assets $ 7,336 $ 41,544 Accelerated depreciation 6,208 — Investment in joint venture 1,968 — Assets held for sale 1,659 1,549 Other assets (1) 1,287 745 18,458 43,838 Reported within restructuring charges and other exit-related costs Long-lived assets 329 — Accelerated depreciation 630 3,686 Other assets 1,102 — 2,061 3,686 Reported within discontinued operations Long-lived assets 673 2,666 Accelerated depreciation 274 — 947 2,666 Total $ 21,466 $ 50,190 _____________________________ (1) Other asset impairment charges were incurred in the AMR operating segment, except for $79 thousand and $745 thousand of impairment charges on Other Assets related to Corporate for the three months ended February 29, 2016 and February 28, 2015, respectively. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): February 29, 2016 August 31, 2015 Processed and unprocessed scrap metal $ 49,417 $ 56,860 Semi-finished goods (billets) 8,603 10,648 Finished goods 51,141 50,440 Supplies 36,869 38,584 Inventories $ 146,030 $ 156,532 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The gross changes in the carrying amount of goodwill by reportable segment for the six months ended February 29, 2016 were as follows (in thousands): Auto and Metals Recycling August 31, 2015 $ 175,676 Foreign currency translation adjustment (555 ) Goodwill impairment charge (8,845 ) February 29, 2016 $ 166,276 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Reserves For Environmental Liabilities | Changes in the Company’s environmental liabilities for the six months ended February 29, 2016 were as follows (in thousands): Reportable Segment Balance as of August 31, 2015 Liabilities Established (Released), Net Payments and Other Balance as of February 29, 2016 Short-Term Long-Term Auto and Metals Recycling $ 46,494 $ (178 ) $ (810 ) $ 45,506 $ 732 $ 44,774 Corporate 299 — (29 ) 270 150 120 Total $ 46,793 $ (178 ) $ (839 ) $ 45,776 $ 882 $ 44,894 |
Restructuring Charges and Oth28
Restructuring Charges and Other Exit-Related Costs (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Restructuring Charges, Asset Impairment and Accelerated Depreciation [Abstract] | |
Restructuring and Related Costs | Restructuring charges and other exit-related costs were comprised of the following (in thousands): Three Months Ended February 29, 2016 Three Months Ended February 28, 2015 All Other Plans Q2’15 Plan Total Charges All Other plans Q2’15 Plan Total Charges Restructuring charges: Severance costs $ — $ 3,185 $ 3,185 $ 371 $ 540 $ 911 Contract termination costs 35 12 47 56 79 135 Other restructuring costs — — — 880 93 973 Total restructuring charges 35 3,197 3,232 1,307 712 2,019 Other exit-related costs: Asset impairments and accelerated depreciation — 3,008 3,008 — 6,352 6,352 Total other exit-related costs — 3,008 3,008 — 6,352 6,352 Total restructuring charges and other exit-related costs $ 35 $ 6,205 $ 6,240 $ 1,307 $ 7,064 $ 8,371 Restructuring charges and other exit-related costs included in continuing operations $ 5,291 $ 5,394 Restructuring charges and other exit-related costs included in discontinued operations $ 949 $ 2,977 Six Months Ended February 29, 2016 Six Months Ended February 28, 2015 All Other Plans Q2’15 Plan Total Charges All Other Plans Q2’15 Plan Total Charges Restructuring charges: Severance costs $ — $ 4,346 $ 4,346 $ 398 $ 540 $ 938 Contract termination costs 125 657 782 309 79 388 Other restructuring costs — — — 1,223 93 1,316 Total restructuring charges 125 5,003 5,128 1,930 712 2,642 Other exit-related costs: Asset impairments and accelerated depreciation — 3,008 3,008 — 6,352 6,352 Total other exit-related costs — 3,008 3,008 — 6,352 6,352 Total restructuring charges and other exit-related costs $ 125 $ 8,011 $ 8,136 $ 1,930 $ 7,064 $ 8,994 Restructuring charges and other exit-related costs included in continuing operations $ 7,216 $ 5,987 Restructuring charges and other exit-related costs included in discontinued operations $ 920 $ 3,007 All Other Plans Q2'15 Plan Total Total restructuring charges to date $ 7,886 $ 13,626 $ 21,512 Total expected restructuring charges $ 7,941 $ 14,030 $ 21,971 |
Schedule of Restructuring Reserve by Type of Cost | The following illustrates the reconciliation of the restructuring liability by major type of costs for the six months ended February 29, 2016 (in thousands): All Other Plans Q2’15 Plan All Plans Balance 8/31/2015 Charges Payments and Other Balance 2/29/2016 Balance 8/31/2015 Charges Payments and Other Balance 2/29/2016 Total Charges to Date Total Expected Charges Severance costs $ — $ — $ — $ — $ 1,226 $ 4,346 $ (2,061 ) $ 3,511 $ 14,582 $ 14,646 Contract termination costs 362 125 (388 ) 99 1,320 657 (702 ) 1,275 3,248 3,643 Other restructuring costs — — — — — — — — 3,682 3,682 Total $ 362 $ 125 $ (388 ) $ 99 $ 2,546 $ 5,003 $ (2,763 ) $ 4,786 $ 21,512 $ 21,971 |
Schedule of Restructuring and Related Activities By Segment | Restructuring charges and other exit-related costs by reportable segment and discontinued operations were as follows (in thousands): Three Months Ended Six Months Ended Total Charges to Date Total Expected Charges 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Restructuring charges: Auto and Metals Recycling $ 2,421 $ 1,645 $ 4,343 $ 2,244 $ 15,141 $ 15,593 Unallocated (Corporate) 809 63 812 57 4,819 4,826 Discontinued operations 2 311 (27 ) 341 1,552 1,552 Total restructuring charges 3,232 2,019 5,128 2,642 21,512 21,971 Other exit-related costs: Auto and Metals Recycling 2,061 3,686 2,061 3,686 6,463 Discontinued operations 947 2,666 947 2,666 3,613 Total other exit-related costs 3,008 6,352 3,008 6,352 10,076 Total restructuring charges and other exit-related costs $ 6,240 $ 8,371 $ 8,136 $ 8,994 $ 31,588 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Changes in equity were comprised of the following (in thousands): Six Months Ended February 29, 2016 Six Months Ended February 28, 2015 SSI Shareholders’ Equity Noncontrolling Interests Total Equity SSI Shareholders’ Equity Noncontrolling Interests Total Equity Balance - September 1 (Beginning of period) $ 534,535 $ 4,016 $ 538,551 $ 770,784 $ 5,193 $ 775,977 Net income (loss) (46,541 ) 604 (45,937 ) (198,115 ) 631 (197,484 ) Other comprehensive loss, net of tax (1,556 ) — (1,556 ) (23,507 ) — (23,507 ) Distributions to noncontrolling interests — (971 ) (971 ) — (1,585 ) (1,585 ) Share repurchases (3,479 ) — (3,479 ) — — — Restricted stock withheld for taxes (1,895 ) — (1,895 ) (1,360 ) — (1,360 ) Share-based compensation 2,627 — 2,627 4,300 — 4,300 Excess tax deficiency from stock options exercised and restricted stock units vested — — — (704 ) — (704 ) Dividends (10,268 ) — (10,268 ) (10,298 ) — (10,298 ) Balance - February 29, 2016 and February 28, 2015 (End of period) $ 473,423 $ 3,649 $ 477,072 $ 541,100 $ 4,239 $ 545,339 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss, net of tax, were comprised of the following (in thousands): Three Months Ended February 29, 2016 Three Months Ended February 28, 2015 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 - December 1 (Beginning of period) $ (35,018 ) $ (4,232 ) $ — $ (39,250 ) $ (17,935 ) $ (2,000 ) $ (850 ) $ (20,785 ) Other comprehensive loss before reclassifications (892 ) — — (892 ) (12,601 ) — (3,424 ) (16,025 ) Income tax benefit — — — — — — — — Other comprehensive loss before reclassifications, net of tax (892 ) — — (892 ) (12,601 ) — (3,424 ) (16,025 ) Amounts reclassified from accumulated other comprehensive loss — 101 — 101 — 38 853 891 Income tax benefit — (37 ) — (37 ) — (15 ) (214 ) (229 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 64 — 64 — 23 639 662 Net periodic other comprehensive income (loss) (892 ) 64 — (828 ) (12,601 ) 23 (2,785 ) (15,363 ) Balances - February 29, 2016 and February 28, 2015 (End of period) $ (35,910 ) $ (4,168 ) $ — $ (40,078 ) $ (30,536 ) $ (1,977 ) $ (3,635 ) $ (36,148 ) Six Months Ended February 29, 2016 Six Months Ended February 28, 2015 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) $ (34,009 ) $ (4,273 ) $ (240 ) $ (38,522 ) $ (10,663 ) $ (2,036 ) $ 58 $ (12,641 ) Other comprehensive loss before reclassifications (1,901 ) — — (1,901 ) (19,873 ) — (5,136 ) (25,009 ) Income tax benefit — — — — — — 428 428 Other comprehensive loss before reclassifications, net of tax (1,901 ) — — (1,901 ) (19,873 ) — (4,708 ) (24,581 ) Amounts reclassified from accumulated other comprehensive loss — 165 312 477 — 87 1,354 1,441 Income tax benefit — (60 ) (72 ) (132 ) — (28 ) (339 ) (367 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 105 240 345 — 59 1,015 1,074 Net periodic other comprehensive income (loss) (1,901 ) 105 240 (1,556 ) (19,873 ) 59 (3,693 ) (23,507 ) Balances - February 29, 2016 and February 28, 2015 (End of period) $ (35,910 ) $ (4,168 ) $ — $ (40,078 ) $ (30,536 ) $ (1,977 ) $ (3,635 ) $ (36,148 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Operating results of discontinued operations were comprised of the following (in thousands): Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Revenues $ — $ 3,140 $ — $ 6,770 Loss from discontinued operations before income taxes $ (1,015 ) $ (4,321 ) $ (1,094 ) $ (5,257 ) Income tax (expense) benefit (9 ) 79 5 177 Loss from discontinued operations, net of tax $ (1,024 ) $ (4,242 ) $ (1,089 ) $ (5,080 ) |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
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 August 31, 2015 Foreign currency exchange forward contracts Prepaid expenses and other current assets $ — Foreign currency exchange forward contracts Other accrued liabilities $ (751 ) The following table summarizes the results of foreign currency exchange derivatives (in thousands): Derivative Gain (Loss) Recognized Three Months Ended February 28, 2015 Other Comprehensive Loss Revenues - Effective Portion Other Income (Expense), net Foreign currency exchange forward contracts - designated as cash flow hedges $ (3,424 ) $ (853 ) $ 121 Foreign currency exchange forward contracts - not designated as cash flow hedges $ — $ — $ (117 ) Derivative Gain (Loss) Recognized Six Months Ended February 28, 2015 Other Comprehensive Loss Revenues - Effective Portion Other Income (Expense), net Foreign currency exchange forward contracts $ (5,136 ) $ (1,354 ) $ 175 Foreign currency exchange forward contracts $ — $ — $ (122 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
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 Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Federal statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State taxes, net of credits 1.6 1.1 1.5 1.1 Foreign income taxed at different rates (4.5 ) (7.4 ) (5.1 ) (7.6 ) Non-deductible officers’ compensation (1.1 ) (0.1 ) (0.7 ) (0.1 ) Noncontrolling interests 2.6 0.5 1.8 0.5 Research and development credits 0.8 0.1 0.6 0.1 Valuation allowance on deferred tax assets (35.2 ) (20.5 ) (32.9 ) (20.4 ) Non-deductible goodwill (0.4 ) (2.8 ) (0.4 ) (2.8 ) Unrecognized tax benefits (0.9 ) (0.5 ) (0.7 ) (0.5 ) Other (1.2 ) (0.6 ) (0.7 ) (0.6 ) Effective tax rate (3.3 )% 4.8 % (1.6 )% 4.7 % _____________________________ (1) For periods with reported pre-tax losses, the effect of reconciling items with positive signs is a tax benefit in excess of applying the federal statutory rate to the pre-tax loss. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | The following table sets forth the information used to compute basic and diluted net loss per share attributable to SSI (in thousands): Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Loss from continuing operations $ (39,946 ) $ (191,640 ) $ (44,848 ) $ (192,404 ) Net (income) loss attributable to noncontrolling interests (275 ) 240 (604 ) (631 ) Loss from continuing operations attributable to SSI (40,221 ) (191,400 ) (45,452 ) (193,035 ) Loss from discontinued operations, net of tax (1,024 ) (4,242 ) (1,089 ) (5,080 ) Net loss attributable to SSI $ (41,245 ) $ (195,642 ) $ (46,541 ) $ (198,115 ) Computation of shares: Weighted average common shares outstanding, basic 27,201 27,020 27,178 26,982 Incremental common shares attributable to dilutive stock options, performance share awards, DSUs, and RSUs — — — — Weighted average common shares outstanding, diluted 27,201 27,020 27,178 26,982 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The table below illustrates the Company’s revenues from continuing operations by reportable segment (in thousands): Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Revenues: Auto and Metals Recycling: Revenues $ 249,812 $ 389,057 $ 522,777 $ 902,745 Less: Intersegment revenues (19,126 ) (44,734 ) (42,794 ) (100,016 ) AMR external customer revenues 230,686 344,323 479,983 802,729 Steel Manufacturing Business: Revenues 58,391 93,126 130,292 188,344 Total revenues $ 289,077 $ 437,449 $ 610,275 $ 991,073 |
Reconciliation of Operating Income from Segments to Consolidated | The table below illustrates the reconciliation of the Company’s segment operating loss to the loss from continuing operations before income taxes (in thousands): Three Months Ended Six Months Ended 2/29/2016 2/28/2015 2/29/2016 2/28/2015 Auto and Metals Recycling $ (26,350 ) $ (188,640 ) $ (24,314 ) $ (183,911 ) Steel Manufacturing Business (1,202 ) 3,799 1,552 10,006 Segment operating loss (27,552 ) (184,841 ) (22,762 ) (173,905 ) Restructuring charges and other exit-related costs (5,291 ) (5,394 ) (7,216 ) (5,987 ) Corporate and eliminations (4,233 ) (10,776 ) (11,126 ) (20,334 ) Operating loss (37,076 ) (201,011 ) (41,104 ) (200,226 ) Interest expense (2,015 ) (2,295 ) (3,874 ) (4,669 ) Other income, net 438 1,993 845 2,925 Loss from continuing operations before income taxes $ (38,653 ) $ (201,313 ) $ (44,133 ) $ (201,970 ) |
Reconciliation of Assets from Segment to Consolidated | The following is a summary of the Company’s total assets by reportable segment (in thousands): February 29, 2016 August 31, 2015 Auto and Metals Recycling (1) $ 1,452,722 $ 1,492,906 Steel Manufacturing Business 369,836 370,955 Total segment assets 1,822,558 1,863,861 Corporate and eliminations (970,385 ) (901,562 ) Total assets $ 852,173 $ 962,299 _____________________________ (1) AMR total assets include $13 million and $15 million as of February 29, 2016 and August 31, 2015 , respectively, for investments in joint ventures. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Details) | 6 Months Ended | 9 Months Ended | |
Feb. 29, 2016USD ($) | May. 31, 2015segments | Aug. 31, 2015USD ($) | |
Accounting Policies [Abstract] | |||
Number of Operating Segments | segments | 3 | ||
Number of Reportable Segments | segments | 3 | ||
Book Overdrafts | $ 8,000,000 | $ 11,000,000 | |
Number of Days Used To Determine Short Term Highly Liquid Investments Treatment As Cash Equivalents | 90 days | ||
Assets Held-for-sale, Current | $ 1,000,000 | 2,000,000 | |
Schedule of Asset Impairments Charges [Line Items] | |||
Cash, FDIC Insured Amount | 250,000 | ||
Customer Issued Letters Of Credit | $ 18,000,000 | $ 33,000,000 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies Asset Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Schedule of Asset Impairments Charges [Line Items] | ||||
Asset Impairment Charges, Excluding Goodwill Impairment Loss | $ 18,458 | $ 43,838 | $ 18,458 | $ 43,838 |
Operating Segments and Corporate, Non-Segment [Member] | ||||
Schedule of Asset Impairments Charges [Line Items] | ||||
Asset Impairment Charges, Excluding Goodwill Impairment Loss | 21,466 | 50,190 | 21,466 | 50,190 |
Other Asset Impairment Charge | ||||
Schedule of Asset Impairments Charges [Line Items] | ||||
Asset Impairment Charges, Excluding Goodwill Impairment Loss | 18,458 | 43,838 | 18,458 | 43,838 |
Other Asset Impairment Charge | Corporate | ||||
Schedule of Asset Impairments Charges [Line Items] | ||||
Other assets | 79 | 745 | 79 | 745 |
Restructuring Charges and Other Exit-Related Costs | ||||
Schedule of Asset Impairments Charges [Line Items] | ||||
Long-lived assets | 329 | 0 | 329 | 0 |
Accelerated depreciation | 630 | 3,686 | 630 | 3,686 |
Other assets | 1,102 | 0 | 1,102 | 0 |
Asset Impairment Charges, Excluding Goodwill Impairment Loss | 2,061 | 3,686 | 2,061 | 3,686 |
Loss from Discontinued Operations, Net of Tax | ||||
Schedule of Asset Impairments Charges [Line Items] | ||||
Long-lived assets | 673 | 2,666 | 673 | 2,666 |
Accelerated depreciation | 274 | 0 | 274 | 0 |
Asset Impairment Charges, Excluding Goodwill Impairment Loss | 947 | 2,666 | 947 | 2,666 |
Auto and Metals Recycling | Other Asset Impairment Charge | ||||
Schedule of Asset Impairments Charges [Line Items] | ||||
Long-lived assets | 7,336 | 41,544 | 7,336 | 41,544 |
Accelerated depreciation | 6,208 | 0 | 6,208 | 0 |
Investment in joint venture | 1,968 | 0 | 1,968 | 0 |
Assets held for sale | 1,659 | 1,549 | 1,659 | 1,549 |
Corporate and Other | Other Asset Impairment Charge | ||||
Schedule of Asset Impairments Charges [Line Items] | ||||
Other assets | $ 1,287 | $ 745 | $ 1,287 | $ 745 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies Goodwill and Other Intangible Assets (Details) $ in Thousands | Jul. 01, 2015USD ($)reporting_unit | Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | Feb. 01, 2016USD ($) | Aug. 31, 2015USD ($) |
Goodwill Impairment [Line Items] | |||||||
Number of Reporting Units | reporting_unit | 2 | ||||||
Goodwill | $ 166,276 | $ 166,276 | $ 175,676 | ||||
Goodwill impairment charge | $ 8,845 | $ 141,021 | $ 8,845 | $ 141,021 | |||
Regionally Defined Reporting Unit Consisting of Two Components | |||||||
Goodwill Impairment [Line Items] | |||||||
Goodwill | $ 9,000 | $ 9,000 | |||||
Regionally Defined Reporting Unit Consisting of One Component | |||||||
Goodwill Impairment [Line Items] | |||||||
Goodwill | $ 168,000 | $ 166,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Aug. 31, 2015 |
Inventory, Net [Abstract] | ||
Processed and unprocessed scrap metal | $ 49,417 | $ 56,860 |
Semi-finished goods (billets) | 8,603 | 10,648 |
Finished goods | 51,141 | 50,440 |
Supplies | 36,869 | 38,584 |
Inventories | $ 146,030 | $ 156,532 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Feb. 01, 2016 | Feb. 29, 2016 | Aug. 31, 2015 | Jul. 01, 2015 |
Goodwill [Line Items] | ||||
Goodwill | $ 166,276 | $ 175,676 | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ (471,000) | $ (462,000) | ||
Regionally Defined Reporting Unit Consisting of Two Components | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 9,000 | $ 9,000 | ||
Regionally Defined Reporting Unit Consisting of One Component | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 166,000 | $ 168,000 | ||
Goodwill | Regionally Defined Reporting Unit Consisting of One Component | Income Approach Valuation Technique [Member] | ||||
Goodwill [Line Items] | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 27.00% | |||
Fair Value Inputs, Discount Rate | 11.16% | |||
Fair Value Inputs, Terminal Growth Rate | 2.00% | |||
Fair Value Input, Discount Rate Sensitivity Analysis, Percent | 2.00% |
Goodwill Schedule of Goodwill (
Goodwill Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Goodwill [Roll Forward] | ||||
August 31, 2015 | $ 175,676 | |||
Goodwill impairment charge | $ (8,845) | $ (141,021) | (8,845) | $ (141,021) |
February 29, 2016 | 166,276 | 166,276 | ||
Auto and Metals Recycling | ||||
Goodwill [Roll Forward] | ||||
August 31, 2015 | 175,676 | |||
Foreign currency translation adjustment | (555) | |||
Goodwill impairment charge | (8,845) | |||
February 29, 2016 | $ 166,276 | $ 166,276 |
Debt Long-term Debt (Details)
Debt Long-term Debt (Details) - Bank of America NA And Other Lenders | Apr. 06, 2016CAD | Apr. 06, 2016USD ($) | Apr. 05, 2016USD ($) | Feb. 29, 2016CAD | Feb. 29, 2016USD ($) | Aug. 31, 2015USD ($) |
Senior Secured Revolving Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | CAD 15,000,000 | $ 335,000,000 | ||||
Line of Credit Facility, Additional Borrowing Capacity Available | $ 100,000,000 | |||||
Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | CAD 30,000,000 | $ 670,000,000 | ||||
Long-term Line of Credit | $ 185,000,000 | $ 215,000,000 | ||||
Unsecured Revolving Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | $ 198,000,000 | |||||
Minimum | Senior Secured Revolving Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | |||||
Maximum | Senior Secured Revolving Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | |||||
Interest Rate Option 1 | Minimum | Senior Secured Revolving Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate, Temporary Floor | 2.50% | |||||
Interest Rate Option 1 | Minimum | Senior Secured Revolving Credit Facility | Subsequent Event | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Interest Rate Option 1 | Maximum | Senior Secured Revolving Credit Facility | Subsequent Event | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||
Interest Rate Option 2 | Senior Secured Revolving Credit Facility | Subsequent Event | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Interest Rate Option 2 | Senior Secured Revolving Credit Facility | Subsequent Event | Federal Funds Effective Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Interest Rate Option 2 | Minimum | Senior Secured Revolving Credit Facility | Subsequent Event | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||
Interest Rate Option 2 | Maximum | Senior Secured Revolving Credit Facility | Subsequent Event | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Debt Short-term Debt (Details)
Debt Short-term Debt (Details) - Wells Fargo Bank NA - USD ($) $ in Millions | Feb. 29, 2016 | Aug. 31, 2015 |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25 | |
Long-term Line of Credit | $ 0 | $ 0 |
Commitments and Contingencies44
Commitments and Contingencies (Details) | Mar. 30, 2012USD ($)alternatives | Nov. 30, 2015USD ($) | Feb. 29, 2016USD ($)potentially_responsible_partyT | Aug. 31, 2015USD ($) |
Loss Contingencies [Line Items] | ||||
Accrual for Environmental Loss Contingencies | $ 45,776,000 | $ 46,793,000 | ||
Auto and Metals Recycling | ||||
Loss Contingencies [Line Items] | ||||
Accrual for Environmental Loss Contingencies | $ 45,506,000 | $ 46,494,000 | ||
Steel Manufacturing Business | ||||
Loss Contingencies [Line Items] | ||||
Annual production capacity | T | 950,000 | |||
Permit Expiration Date | Feb. 1, 2018 | |||
Accrual for Environmental Loss Contingencies | $ 0 | |||
Portland Harbor Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Site Contingency Number of Remedial Alternatives | alternatives | 5 | |||
Accrual for Environmental Loss Contingencies | 1,000,000 | |||
Other Auto and Metals Recycling Business Sites | ||||
Loss Contingencies [Line Items] | ||||
Accrual for Environmental Loss Contingencies | $ 45,000,000 | |||
Minimum | Portland Harbor Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Number Of Potentially Responsible Parties | potentially_responsible_party | 80 | |||
Site Contingency, Estimated Time Frame to Remediate | 4 years | |||
Maximum | Portland Harbor Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Site Contingency, Estimated Time Frame to Remediate | 18 years | |||
Lower Willamette Group | Portland Harbor Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Site Contingency Period Of Feasibility Study | 10 years | |||
Feasibility Study Investigation Costs | $ 100,000,000 | |||
Potential Responsible Parties | Minimum | Portland Harbor Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Site Contingency Least Costly Remediation Plan | 550,000,000 | |||
Site Contingency Most Costly Remediation Plan | 1,710,000,000 | |||
Potential Responsible Parties | Maximum | Portland Harbor Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Site Contingency Least Costly Remediation Plan | 1,190,000,000 | |||
Site Contingency Most Costly Remediation Plan | $ 3,670,000,000 | |||
EPA Region 10 | Portland Harbor Superfund Site | ||||
Loss Contingencies [Line Items] | ||||
Modified Alternative (E) Implementation Period | 7 years | |||
Modified Alternative (E) Estimated Cost | $ 1,400,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Environmental Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 29, 2016 | Aug. 31, 2015 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning balance | $ 46,793 | |
Liabilities Established (Released), Net | (178) | |
Payments and Other | (839) | |
Ending balance | 45,776 | |
Short-Term | 882 | $ 924 |
Long-Term | 44,894 | $ 45,869 |
Auto and Metals Recycling | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning balance | 46,494 | |
Liabilities Established (Released), Net | (178) | |
Payments and Other | (810) | |
Ending balance | 45,506 | |
Short-Term | 732 | |
Long-Term | 44,774 | |
Corporate | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning balance | 299 | |
Liabilities Established (Released), Net | 0 | |
Payments and Other | (29) | |
Ending balance | 270 | |
Short-Term | 150 | |
Long-Term | $ 120 |
Restructuring Charges and Oth46
Restructuring Charges and Other Exit-Related Costs Restructuring and Related Costs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2016USD ($)restructuring_plan | Feb. 28, 2015USD ($) | Feb. 29, 2016USD ($)restructuring_plan | Feb. 28, 2015USD ($) | May. 31, 2015store | |
Restructuring Cost and Reserve [Line Items] | |||||
Number of Plans | restructuring_plan | 3 | 3 | |||
Restructuring Charges | $ 3,232 | $ 2,019 | $ 5,128 | $ 2,642 | |
Total restructuring charges and other exit-related costs | 6,240 | 8,371 | 8,136 | 8,994 | |
Total restructuring charges to date | 21,512 | 21,512 | |||
Total expected restructuring charges | 21,971 | 21,971 | |||
All Other Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 35 | 1,307 | 125 | 1,930 | |
Total restructuring charges and other exit-related costs | 35 | 1,307 | 125 | 1,930 | |
Total restructuring charges to date | 7,886 | 7,886 | |||
Total expected restructuring charges | 7,941 | 7,941 | |||
Q2’15 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 3,197 | 712 | 5,003 | 712 | |
Total restructuring charges and other exit-related costs | 6,205 | 7,064 | 8,011 | 7,064 | |
Total restructuring charges to date | 13,626 | 13,626 | |||
Total expected restructuring charges | 14,030 | 14,030 | |||
Severance costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 3,185 | 911 | 4,346 | 938 | |
Total restructuring charges to date | 14,582 | 14,582 | |||
Total expected restructuring charges | 14,646 | 14,646 | |||
Severance costs | All Other Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 371 | 0 | 398 | |
Severance costs | Q2’15 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 3,185 | 540 | 4,346 | 540 | |
Contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 47 | 135 | 782 | 388 | |
Total restructuring charges to date | 3,248 | 3,248 | |||
Total expected restructuring charges | 3,643 | 3,643 | |||
Contract termination costs | All Other Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 35 | 56 | 125 | 309 | |
Contract termination costs | Q2’15 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 12 | 79 | 657 | 79 | |
Other restructuring costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 973 | 0 | 1,316 | |
Total restructuring charges to date | 3,682 | 3,682 | |||
Total expected restructuring charges | 3,682 | 3,682 | |||
Other restructuring costs | All Other Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 880 | 0 | 1,223 | |
Other restructuring costs | Q2’15 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 93 | 0 | 93 | |
Asset Impairments and Accelerated Depreciation | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other exit-related costs | 3,008 | 6,352 | 3,008 | 6,352 | |
Asset Impairments and Accelerated Depreciation | All Other Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other exit-related costs | 0 | 0 | 0 | 0 | |
Asset Impairments and Accelerated Depreciation | Q2’15 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other exit-related costs | 3,008 | 6,352 | 3,008 | 6,352 | |
Other Exit-Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other exit-related costs | 3,008 | 6,352 | 3,008 | 6,352 | |
Other Exit-Related Costs | All Other Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other exit-related costs | 0 | 0 | 0 | 0 | |
Other Exit-Related Costs | Q2’15 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other exit-related costs | 3,008 | 6,352 | 3,008 | 6,352 | |
Segment Reconciling Items | Continuing Operations | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charges and other exit-related costs | 5,291 | 5,394 | 7,216 | 5,987 | |
Segment Reconciling Items | Discontinued Operations | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2 | 311 | (27) | 341 | |
Total restructuring charges and other exit-related costs | 949 | 2,977 | 920 | 3,007 | |
Total restructuring charges to date | 1,552 | 1,552 | |||
Total expected restructuring charges | 1,552 | 1,552 | |||
Segment Reconciling Items | Asset Impairments and Accelerated Depreciation | Discontinued Operations | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other exit-related costs | 947 | 2,666 | 947 | 2,666 | |
Segment Reconciling Items | Other Exit-Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other exit-related costs | $ 3,008 | $ 6,352 | $ 3,008 | $ 6,352 | |
Auto Parts Stores | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of Stores | store | 7 |
Restructuring Charges and Oth47
Restructuring Charges and Other Exit-Related Costs Restructuring Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 3,232 | $ 2,019 | $ 5,128 | $ 2,642 |
Total charges to date | 21,512 | 21,512 | ||
Total expected charges | 21,971 | 21,971 | ||
All Other Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 362 | |||
Charges | 35 | 1,307 | 125 | 1,930 |
Payments and Other | (388) | |||
Restructuring reserve, ending balance | 99 | 99 | ||
Total charges to date | 7,886 | 7,886 | ||
Total expected charges | 7,941 | 7,941 | ||
Q2’15 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 2,546 | |||
Charges | 3,197 | 712 | 5,003 | 712 |
Payments and Other | (2,763) | |||
Restructuring reserve, ending balance | 4,786 | 4,786 | ||
Total charges to date | 13,626 | 13,626 | ||
Total expected charges | 14,030 | 14,030 | ||
Severance costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 3,185 | 911 | 4,346 | 938 |
Total charges to date | 14,582 | 14,582 | ||
Total expected charges | 14,646 | 14,646 | ||
Severance costs | All Other Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Charges | 0 | 371 | 0 | 398 |
Payments and Other | 0 | |||
Restructuring reserve, ending balance | 0 | 0 | ||
Severance costs | Q2’15 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 1,226 | |||
Charges | 3,185 | 540 | 4,346 | 540 |
Payments and Other | (2,061) | |||
Restructuring reserve, ending balance | 3,511 | 3,511 | ||
Contract termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 47 | 135 | 782 | 388 |
Total charges to date | 3,248 | 3,248 | ||
Total expected charges | 3,643 | 3,643 | ||
Contract termination costs | All Other Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 362 | |||
Charges | 35 | 56 | 125 | 309 |
Payments and Other | (388) | |||
Restructuring reserve, ending balance | 99 | 99 | ||
Contract termination costs | Q2’15 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 1,320 | |||
Charges | 12 | 79 | 657 | 79 |
Payments and Other | (702) | |||
Restructuring reserve, ending balance | 1,275 | 1,275 | ||
Other restructuring costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 973 | 0 | 1,316 |
Total charges to date | 3,682 | 3,682 | ||
Total expected charges | 3,682 | 3,682 | ||
Other restructuring costs | All Other Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Charges | 0 | 880 | 0 | 1,223 |
Payments and Other | 0 | |||
Restructuring reserve, ending balance | 0 | 0 | ||
Other restructuring costs | Q2’15 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Charges | 0 | $ 93 | 0 | $ 93 |
Payments and Other | 0 | |||
Restructuring reserve, ending balance | $ 0 | $ 0 |
Restructuring Charges and Oth48
Restructuring Charges and Other Exit-Related Costs Restructuring Charges and Other Exit-Related Costs by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 3,232 | $ 2,019 | $ 5,128 | $ 2,642 |
Total restructuring charges and other exit-related costs | 6,240 | 8,371 | 8,136 | 8,994 |
Total charges to date | 21,512 | 21,512 | ||
Total expected charges | 21,971 | 21,971 | ||
Total restructuring charges and other exit-related costs, incurred to date | 31,588 | 31,588 | ||
Other exit-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs | 3,008 | 6,352 | 3,008 | 6,352 |
Other Exit-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs | 3,008 | 6,352 | 3,008 | 6,352 |
Auto and Metals Recycling | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2,421 | 1,645 | 4,343 | 2,244 |
Auto and Metals Recycling | Other exit-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs | 2,061 | 3,686 | 2,061 | 3,686 |
Operating Segments | Auto and Metals Recycling | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total charges to date | 15,141 | 15,141 | ||
Total expected charges | 15,593 | 15,593 | ||
Operating Segments | Auto and Metals Recycling | Other exit-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges and other exit-related costs, incurred to date | 6,463 | 6,463 | ||
Unallocated (Corporate) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 809 | 63 | 812 | 57 |
Total charges to date | 4,819 | 4,819 | ||
Total expected charges | 4,826 | 4,826 | ||
Segment Reconciling Items | Other Exit-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs | 3,008 | 6,352 | 3,008 | 6,352 |
Total restructuring charges and other exit-related costs, incurred to date | 10,076 | 10,076 | ||
Discontinued Operations | Segment Reconciling Items | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2 | 311 | (27) | 341 |
Total restructuring charges and other exit-related costs | 949 | 2,977 | 920 | 3,007 |
Total charges to date | 1,552 | 1,552 | ||
Total expected charges | 1,552 | 1,552 | ||
Discontinued Operations | Segment Reconciling Items | Other exit-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit-related costs | 947 | $ 2,666 | 947 | $ 2,666 |
Total restructuring charges and other exit-related costs, incurred to date | $ 3,613 | $ 3,613 |
Changes in Equity (Details)
Changes in Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance - (Beginning of period) | $ 538,551 | $ 775,977 | ||
Net income (loss) | $ (40,970) | $ (195,882) | (45,937) | (197,484) |
Other comprehensive loss, net of tax | (828) | (15,363) | (1,556) | (23,507) |
Distributions to noncontrolling interests | (971) | (1,585) | ||
Share repurchases | (3,479) | 0 | ||
Restricted stock withheld for taxes | (1,895) | (1,360) | ||
Share-based compensation | 2,627 | 4,300 | ||
Excess tax deficiency from stock options exercised and restricted stock units vested | 0 | (704) | ||
Dividends | (10,268) | (10,298) | ||
Balance - February 29, 2016 and February 28, 2015 (End of period) | 477,072 | 545,339 | 477,072 | 545,339 |
SSI Shareholders’ Equity | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance - (Beginning of period) | 534,535 | 770,784 | ||
Net income (loss) | (46,541) | (198,115) | ||
Other comprehensive loss, net of tax | (1,556) | (23,507) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Share repurchases | (3,479) | 0 | ||
Restricted stock withheld for taxes | (1,895) | (1,360) | ||
Share-based compensation | 2,627 | 4,300 | ||
Excess tax deficiency from stock options exercised and restricted stock units vested | 0 | (704) | ||
Dividends | (10,268) | (10,298) | ||
Balance - February 29, 2016 and February 28, 2015 (End of period) | 473,423 | 541,100 | 473,423 | 541,100 |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance - (Beginning of period) | 4,016 | 5,193 | ||
Net income (loss) | 604 | 631 | ||
Other comprehensive loss, net of tax | 0 | 0 | ||
Distributions to noncontrolling interests | (971) | (1,585) | ||
Share repurchases | 0 | 0 | ||
Restricted stock withheld for taxes | 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 - February 29, 2016 and February 28, 2015 (End of period) | $ 3,649 | $ 4,239 | $ 3,649 | $ 4,239 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Balance - (Beginning of period) | $ 538,551 | $ 775,977 | ||
Other comprehensive loss before reclassifications | $ (892) | $ (16,025) | (1,901) | (25,009) |
Income tax benefit | 0 | 0 | 0 | 428 |
Other comprehensive loss before reclassifications, net of tax | (892) | (16,025) | (1,901) | (24,581) |
Amounts reclassified from accumulated other comprehensive loss | 101 | 891 | 477 | 1,441 |
Income tax benefit | (37) | (229) | (132) | (367) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 64 | 662 | 345 | 1,074 |
Total other comprehensive loss, net of tax | (828) | (15,363) | (1,556) | (23,507) |
Balance - February 29, 2016 and February 28, 2015 (End of period) | 477,072 | 545,339 | 477,072 | 545,339 |
Foreign Currency Translation Adjustments | ||||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Balance - (Beginning of period) | (35,018) | (17,935) | (34,009) | (10,663) |
Other comprehensive loss before reclassifications | (892) | (12,601) | (1,901) | (19,873) |
Income tax benefit | 0 | 0 | 0 | 0 |
Other comprehensive loss before reclassifications, net of tax | (892) | (12,601) | (1,901) | (19,873) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Income tax benefit | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Total other comprehensive loss, net of tax | (892) | (12,601) | (1,901) | (19,873) |
Balance - February 29, 2016 and February 28, 2015 (End of period) | (35,910) | (30,536) | (35,910) | (30,536) |
Pension Obligations, net | ||||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Balance - (Beginning of period) | (4,232) | (2,000) | (4,273) | (2,036) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 |
Income tax benefit | 0 | 0 | 0 | 0 |
Other comprehensive loss before reclassifications, net of tax | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 101 | 38 | 165 | 87 |
Income tax benefit | (37) | (15) | (60) | (28) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 64 | 23 | 105 | 59 |
Total other comprehensive loss, net of tax | 64 | 23 | 105 | 59 |
Balance - February 29, 2016 and February 28, 2015 (End of period) | (4,168) | (1,977) | (4,168) | (1,977) |
Net Unrealized Gain (Loss) on Cash Flow Hedges | ||||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Balance - (Beginning of period) | 0 | (850) | (240) | 58 |
Other comprehensive loss before reclassifications | 0 | (3,424) | 0 | (5,136) |
Income tax benefit | 0 | 0 | 0 | 428 |
Other comprehensive loss before reclassifications, net of tax | 0 | (3,424) | 0 | (4,708) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 853 | 312 | 1,354 |
Income tax benefit | 0 | (214) | (72) | (339) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 639 | 240 | 1,015 |
Total other comprehensive loss, net of tax | 0 | (2,785) | 240 | (3,693) |
Balance - February 29, 2016 and February 28, 2015 (End of period) | 0 | (3,635) | 0 | (3,635) |
AOCI Attributable to Parent [Member] | ||||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||||
Balance - (Beginning of period) | (39,250) | (20,785) | (38,522) | (12,641) |
Balance - February 29, 2016 and February 28, 2015 (End of period) | $ (40,078) | $ (36,148) | $ (40,078) | $ (36,148) |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | Feb. 29, 2016USD ($)Property | Feb. 28, 2015USD ($) | May. 31, 2015store | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of Leased Properties | Property | 2 | ||||
Loss from discontinued operations before income taxes | $ (1,015) | $ (4,321) | $ (1,094) | $ (5,257) | |
Income tax (expense) benefit | (9) | 79 | 5 | 177 | |
Loss from discontinued operations, net of tax | (1,024) | (4,242) | (1,089) | (5,080) | |
Auto Parts Stores | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of Stores | store | 7 | ||||
Auto Parts Stores | Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of Stores | store | 6 | ||||
Revenues | 0 | 3,140 | 0 | 6,770 | |
Loss from Discontinued Operations, Net of Tax | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Long-lived assets | $ 673 | $ 2,666 | $ 673 | $ 2,666 |
Derivative Financial Instrume52
Derivative Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2015USD ($) | Feb. 28, 2015USD ($) | Feb. 29, 2016contract | Aug. 31, 2015USD ($) | |
Derivative [Line Items] | ||||
Cash Flow Hedge Ineffectiveness is Immaterial | $ 0 | $ 0 | ||
Foreign currency exchange forward contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative, Number of Instruments Held | contract | 0 | |||
Prepaid expenses and other current assets | Foreign currency exchange forward contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | $ 0 | |||
Other accrued liabilities | Foreign currency exchange forward contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | $ (751,000) |
Derivative Financial Instrume53
Derivative Financial Instruments Derivative Instruments in Statement of Financial Position and Statement of Financial Performance, Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Feb. 28, 2015 | Feb. 28, 2015 | |
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in Other Income (Expense), net - Not Designated as Cash Flow Hedges | $ (117) | $ (122) |
Cash Flow Hedging | Foreign currency exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in Other Comprehensive Income (Loss) | (3,424) | (5,136) |
Derivative Gain (Loss) Recognized in Revenues - Effective Portion | (853) | (1,354) |
Derivative Gain (Loss) Recognized in Other Income (Expense), net - Designated as Cash Flow Hedges | 121 | 175 |
Not Designated as Hedging Instrument | Foreign currency exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 0 | 0 |
Derivative Gain (Loss) Recognized in Revenues - Effective Portion | $ 0 | $ 0 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) $ in Millions | 3 Months Ended | |
Feb. 29, 2016USD ($)shares | Nov. 30, 2015USD ($)companyshares | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 203,728 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Total Fair Value | $ | $ 4 | |
Restricted Stock Units (RSUs) | Two Year Vesting Resting Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 48,163 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 201,702 | |
Performance Shares | Total Shareholder Return | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 99,860 | |
Total Shareholder Return Designated Peer Group | company | 16 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Total Fair Value | $ | $ 2 | |
Performance Shares | Total Shareholder Return | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Based Awards Award Payouts Threshold | 0.00% | |
Performance Shares | Total Shareholder Return | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Based Awards Award Payouts Threshold | 200.00% | |
Performance Shares | Other Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 101,842 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Performance Based Awards, Cash Flow Return, Period of Measurement | 3 years | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Total Fair Value | $ | $ 2 | |
Performance Shares | Other Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Based Awards Award Payouts Threshold | 0.00% | |
Performance Shares | Other Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Based Awards Award Payouts Threshold | 200.00% | |
Non-employee Directors [Member] | Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 57,780 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Total Fair Value | $ | $ 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 42 | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
State taxes, net of credits | 1.60% | 1.10% | 1.50% | 1.10% |
Foreign income taxed at different rates | (4.50%) | (7.40%) | (5.10%) | (7.60%) |
Non-deductible officers’ compensation | (1.10%) | (0.10%) | (0.70%) | (0.10%) |
Noncontrolling interests | 2.60% | 0.50% | 1.80% | 0.50% |
Research and development credits | 0.80% | 0.10% | 0.60% | 0.10% |
Valuation allowance on deferred tax assets | (35.20%) | (20.50%) | (32.90%) | (20.40%) |
Non-deductible goodwill | (0.40%) | (2.80%) | (0.40%) | (2.80%) |
Unrecognized tax benefits | (0.90%) | (0.50%) | (0.70%) | (0.50%) |
Other | (1.20%) | (0.60%) | (0.70%) | (0.60%) |
Effective tax rate | (3.30%) | 4.80% | (1.60%) | 4.70% |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Earnings Per Share [Abstract] | ||||
Loss from continuing operations | $ (39,946) | $ (191,640) | $ (44,848) | $ (192,404) |
Net (income) loss attributable to noncontrolling interests | (275) | 240 | (604) | (631) |
Loss from continuing operations attributable to SSI | (40,221) | (191,400) | (45,452) | (193,035) |
Loss from discontinued operations, net of tax | (1,024) | (4,242) | (1,089) | (5,080) |
Net loss attributable to SSI | $ (41,245) | $ (195,642) | $ (46,541) | $ (198,115) |
Computation of shares: | ||||
Weighted average common shares outstanding, basic | 27,201,000 | 27,020,000 | 27,178,000 | 26,982,000 |
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs, and RSUs | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding, diluted | 27,201,000 | 27,020,000 | 27,178,000 | 26,982,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 993,799 | 1,325,818 | 925,615 | 1,261,928 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | Jan. 05, 2015store | |
Corporate Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Purchases from joint ventures | $ 2 | $ 6 | $ 6 | $ 13 | |
Former President of the Auto Parts Business Segment | Partnership Interest | |||||
Related Party Transaction [Line Items] | |||||
Related Party Noncontrolling Ownership Percentage By Noncontrolling Owners | 25.00% | ||||
Related Party Transaction Related Party Share Of Profit (Less Than $1 Million for the Three Month Period Ended February 28, 2015) | 1 | 1 | |||
Related Party Noncontrolling Ownership Percentage By Parent | 75.00% | ||||
Related Party Number Of Stores | store | 5 | ||||
Related Party Transaction Rent Expense (Less Than $1 Million For the Three Month Period Ended February 28, 2015) | $ 1 | $ 1 |
Segment Information (Details)
Segment Information (Details) | 9 Months Ended |
May. 31, 2015segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Number of Operating Segments | 3 |
Segment Information Segment Rev
Segment Information Segment Revenue Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 289,077 | $ 437,449 | $ 610,275 | $ 991,073 |
Auto and Metals Recycling | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 230,686 | 344,323 | 479,983 | 802,729 |
Steel Manufacturing Business | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 58,391 | 93,126 | 130,292 | 188,344 |
Operating Segments | Auto and Metals Recycling | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 249,812 | 389,057 | 522,777 | 902,745 |
Less: Intersegment revenues | Auto and Metals Recycling | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (19,126) | $ (44,734) | $ (42,794) | $ (100,016) |
Segment Information Segment Ope
Segment Information Segment Operating Income Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Segment Reporting Information [Line Items] | ||||
Operating loss | $ (37,076) | $ (201,011) | $ (41,104) | $ (200,226) |
Restructuring charges and other exit-related costs | (5,291) | (5,394) | (7,216) | (5,987) |
Interest expense | (2,015) | (2,295) | (3,874) | (4,669) |
Other income, net | 438 | 1,993 | 845 | 2,925 |
Loss from continuing operations before income taxes | (38,653) | (201,313) | (44,133) | (201,970) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating loss | (27,552) | (184,841) | (22,762) | (173,905) |
Operating Segments | Auto and Metals Recycling | ||||
Segment Reporting Information [Line Items] | ||||
Operating loss | (26,350) | (188,640) | (24,314) | (183,911) |
Operating Segments | Steel Manufacturing Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating loss | (1,202) | 3,799 | 1,552 | 10,006 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges and other exit-related costs | (5,291) | (5,394) | (7,216) | (5,987) |
Corporate and eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating loss | $ (4,233) | $ (10,776) | $ (11,126) | $ (20,334) |
Segment Information Segment Ass
Segment Information Segment Assets Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Aug. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Assets | $ 852,173 | $ 962,299 |
Investments in joint ventures | 12,699 | 15,320 |
Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Investments in joint ventures | 13,000 | 15,000 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,822,558 | 1,863,861 |
Operating Segments | Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,452,722 | 1,492,906 |
Operating Segments | Steel Manufacturing Business | ||
Segment Reporting Information [Line Items] | ||
Assets | 369,836 | 370,955 |
Corporate and eliminations | ||
Segment Reporting Information [Line Items] | ||
Assets | $ (970,385) | $ (901,562) |