Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Nov. 30, 2016 | Jan. 03, 2017 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 26,803,375 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Nov. 30, 2016 | Aug. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 8,100,000 | $ 26,819,000 |
Accounts receivable, net of allowance for doubtful accounts of $2,331 and $2,315 | 112,665,000 | 113,952,000 |
Inventories | 148,094,000 | 132,972,000 |
Refundable income taxes | 1,452,000 | 1,254,000 |
Prepaid expenses and other current assets | 23,967,000 | 24,809,000 |
Total current assets | 294,278,000 | 299,806,000 |
Property, plant and equipment, net of accumulated depreciation of $726,287 and $714,965 | 385,750,000 | 392,820,000 |
Investments in joint ventures | 13,766,000 | 13,616,000 |
Goodwill | 166,432,000 | 166,847,000 |
Intangibles, net of accumulated amortization of $3,486 and $3,457 | 4,775,000 | 4,931,000 |
Other assets | 13,893,000 | 13,409,000 |
Total assets | 878,894,000 | 891,429,000 |
Current liabilities: | ||
Short-term borrowings | 701,000 | 8,374,000 |
Accounts payable | 68,867,000 | 58,439,000 |
Accrued payroll and related liabilities | 19,017,000 | 29,116,000 |
Environmental liabilities | 2,038,000 | 1,967,000 |
Other accrued liabilities | 35,287,000 | 35,758,000 |
Total current liabilities | 125,910,000 | 133,654,000 |
Deferred income taxes | 16,856,000 | 16,682,000 |
Long-term debt, net of current maturities | 186,944,000 | 184,144,000 |
Environmental liabilities, net of current portion | 44,210,000 | 44,383,000 |
Other long-term liabilities | 10,907,000 | 11,134,000 |
Total liabilities | 384,827,000 | 389,997,000 |
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 | 30,841,000 | 30,948,000 |
Retained earnings | 473,630,000 | 480,100,000 |
Accumulated other comprehensive loss | (41,214,000) | (40,115,000) |
Total SSI shareholders’ equity | 490,260,000 | 497,721,000 |
Noncontrolling interests | 3,807,000 | 3,711,000 |
Total equity | 494,067,000 | 501,432,000 |
Total liabilities and equity | 878,894,000 | 891,429,000 |
Class A Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | 26,803,000 | 26,482,000 |
Class B Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | $ 200,000 | $ 306,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2016 | Aug. 31, 2016 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 2,331 | $ 2,315 |
Property, plant and equipment, accumulated depreciation | 726,287 | 714,965 |
Intangibles, accumulated amortization | $ 3,486 | $ 3,457 |
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 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 (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 26,803,000 | 26,482,000 |
Common stock, shares outstanding | 26,803,000 | 26,482,000 |
Class B Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 200,000 | 306,000 |
Common stock, shares outstanding | 200,000 | 306,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | ||
Income Statement [Abstract] | |||
Revenues | $ 334,161 | $ 321,198 | |
Operating expense: | |||
Cost of goods sold | 295,892 | 284,854 | |
Selling, general and administrative | 37,492 | 38,418 | |
(Income) loss from joint ventures | (412) | 29 | |
Other asset impairment charges | 401 | 0 | |
Restructuring charges and other exit-related activities | 201 | 1,925 | |
Operating income (loss) | 587 | (4,028) | |
Interest expense | (1,741) | (1,859) | |
Other income, net | 437 | 407 | |
Loss from continuing operations before income taxes | (717) | (5,480) | |
Income tax benefit | 62 | 578 | |
Loss from continuing operations | (655) | (4,902) | |
Loss from discontinued operations, net of tax | (53) | (65) | |
Net loss | (708) | (4,967) | |
Net income attributable to noncontrolling interests | (618) | (329) | |
Net loss attributable to SSI | $ (1,326) | $ (5,296) | |
Net loss per share attributable to SSI Basic: | |||
Loss per share from continuing operations attributable to SSI | $ (0.05) | $ (0.19) | |
Loss per share from discontinued operations attributable to SSI | 0 | 0 | |
Net loss per share attributable to SSI | [1] | (0.05) | (0.20) |
Net loss per share attributable to SSI Diluted: | |||
Loss per share from continuing operations attributable to SSI | (0.05) | (0.19) | |
Loss per share from discontinued operations attributable to SSI | 0 | 0 | |
Net loss per share attributable to SSI | [1] | $ (0.05) | $ (0.20) |
Weighted average number of common shares: | |||
Basic | 27,372 | 27,121 | |
Diluted | 27,372 | 27,121 | |
Dividends declared per common share | $ 0.1875 | $ 0.1875 | |
[1] | May not foot due to rounding. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (708) | $ (4,967) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (1,034) | (1,009) |
Cash flow hedges, net | 0 | 240 |
Pension obligations, net | (65) | 41 |
Total other comprehensive income (loss), net of tax | (1,099) | (728) |
Comprehensive loss | (1,807) | (5,695) |
Less comprehensive income attributable to noncontrolling interests | (618) | (329) |
Comprehensive loss attributable to SSI | $ (2,425) | $ (6,024) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (708) | $ (4,967) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation and amortization | 12,543 | 14,828 |
Exit-related asset impairment charges | 158 | 0 |
Other asset impairment charges | 401 | 0 |
Share-based compensation expense | 3,408 | 2,937 |
Deferred income taxes | (60) | (513) |
Inventory write-down | 0 | 478 |
Undistributed equity in earnings of joint ventures | (412) | 29 |
Loss on disposal of assets | 45 | 21 |
Unrealized foreign exchange gain, net | (23) | (57) |
Bad debt expense, net | 17 | 47 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (1,546) | 38,369 |
Inventories | (12,586) | 4,797 |
Income taxes | (150) | (219) |
Prepaid expenses and other current assets | (614) | 1,578 |
Other long-term assets | 164 | 202 |
Accounts payable | 14,343 | (5,026) |
Accrued payroll and related liabilities | (10,080) | (8,311) |
Other accrued liabilities | 899 | (3,534) |
Environmental liabilities | (29) | (514) |
Other long-term liabilities | (193) | 381 |
Distributed equity in earnings of joint ventures | 350 | 100 |
Net cash provided by operating activities | 5,927 | 40,626 |
Cash flows from investing activities: | ||
Capital expenditures | (10,603) | (9,341) |
Joint venture payments, net | (55) | (4) |
Proceeds from sale of assets | 73 | 730 |
Net cash used in investing activities | (10,585) | (8,615) |
Cash flows from financing activities: | ||
Borrowings from long-term debt | 102,631 | 11,439 |
Repayment of long-term debt | (107,491) | (35,976) |
Proceeds from line of credit | 0 | 53,500 |
Repayment of line of credit | 0 | (53,500) |
Payment of debt issuance costs | (53) | 0 |
Taxes paid related to net share settlement of share-based payment arrangements | (3,301) | (1,887) |
Repurchase of Class A common stock | 0 | (3,479) |
Distributions to noncontrolling interest | (522) | (827) |
Dividends paid | (5,185) | (5,100) |
Net cash used in financing activities | (13,921) | (35,830) |
Effect of exchange rate changes on cash | (140) | (11) |
Net decrease in cash and cash equivalents | (18,719) | (3,830) |
Cash and cash equivalents as of beginning of period | 26,819 | 22,755 |
Cash and cash equivalents as of end of period | $ 8,100 | $ 18,925 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Nov. 30, 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, 2016 . The results for the three months ended November 30, 2016 and 2015 are not necessarily indicative of the results of operations for the entire fiscal year. 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. Cash and Cash Equivalents Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $19 million and $3 million as of November 30, 2016 and August 31, 2016 , respectively. Long-Lived Assets Changes in circumstances may merit a change in the estimated useful lives or salvage values of individual long-lived assets, which are accounted for prospectively in the period of change. For such assets, the useful life is shortened based on the Company's 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 three months ended November 30, 2016 , the Company recognized accelerated depreciation of less than $1 million due to shortening the useful lives of decommissioned machinery and equipment assets in the Steel Manufacturing Business reportable segment, which is reported within other asset impairment charges in the Unaudited Condensed Consolidated Statements of Operations. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable, and notes and other contractual receivables from suppliers. The majority of cash and cash equivalents is maintained with two major financial institutions. Balances with these and certain other institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of November 30, 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 $46 million and $40 million of open letters of credit as of November 30, 2016 and August 31, 2016 , respectively. Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable and debt. The Company uses the market approach to value its financial assets and liabilities, determined using available market information. The net carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. For long-term debt, which is primarily at variable interest rates, fair value is estimated using observable inputs (Level 2) and approximates its carrying value. Fair Value Measurements Fair value is measured using inputs from the three levels of the fair value hierarchy. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are described as follows: • Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2 – Inputs other than quoted prices included 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 Activities for further detail. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Nov. 30, 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 from contracts with customers. The update will supersede the existing standard for recognizing revenue. Additional updates have been issued since May 2014 amending aspects of the initial update and providing implementation guidance. The guidance is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The standard is effective for the Company beginning in the first quarter of fiscal 2019, including interim periods within that fiscal year. Upon becoming effective, the Company will apply the amendments in the standard either retrospectively to each prior reporting period presented, or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company is evaluating the impact of adopting this standard on its consolidated financial position, results of operations and cash flows. In 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. In March 2016, an accounting standard update was issued that amends several aspects of the accounting for share-based payments, including accounting for income taxes, forfeitures and statutory tax withholding requirements, and classification within the statement of cash flows. The standard is effective for the Company beginning in the first quarter of fiscal 2018, including interim periods within that fiscal year. Early adoption is permitted in any interim or annual period; however, if the Company elects early adoption, it must adopt all of the amendments in the same period. The Company does not expect adoption to have an immediate material impact on its consolidated financial position, results of operations and cash flows. In June 2016, an accounting standard update was issued that amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, which include trade and other receivables, loans and other financial instruments, the update amends the initial recognition threshold to require a company to estimate expected credit losses rather than delaying the recognition of the full amount of credit losses until the loss is probable of occurring. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP; however, the update requires that credit losses be presented as an allowance rather than as a write-down. This standard is effective for the Company beginning in the first quarter of fiscal 2021, including interim periods within that fiscal year. The standard will be applied using a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Adoption of the standard is not expected to have a material impact on the Company's consolidated financial position. In August 2016, an accounting standard update was issued that addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Among the cash flow matters addressed in the update are payments for costs related to debt prepayments or extinguishments, payments related to settlement of certain types of debt instruments, payments of contingent consideration made after a business combination, proceeds from insurance claims and corporate-owned life insurance policies, and distributions received from equity method investees, among others. The standard is effective for the Company beginning in the first quarter of fiscal 2019, including interim periods within that fiscal year. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period, and all of the amendments must be adopted together in the same period. The amendments will be applied using a retrospective transition method to each period presented, unless impracticable for specific cash flow matters, in which case the amendments would be applied prospectively as of the earliest date practicable. The Company is evaluating the impact of adopting this standard on its consolidated statement of cash flows. In October 2016, an accounting standard update was issued that amends the existing guidance on the accounting for the income tax effects of intra-entity transfers of assets other than inventory. Current accounting standards prohibit the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The amendments in the update require that entities recognize the income tax effects of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments do not change accounting standards for the pre-tax effects of an intra-entity asset transfer under accounting standards applicable to consolidation, or for an intra-entity transfer of inventory. The standard is effective for the Company beginning in the first quarter of fiscal 2019, including interim periods within that fiscal year. Early adoption is permitted in the first interim period of a fiscal year. The amendments will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is evaluating the impact of adopting this standard on its consolidated financial position, results of operations and cash flows. |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): November 30, 2016 August 31, 2016 Processed and unprocessed scrap metal $ 65,402 $ 49,061 Semi-finished goods (billets) 9,785 8,320 Finished goods 39,482 40,646 Supplies 33,425 34,945 Inventories $ 148,094 $ 132,972 |
Goodwill
Goodwill | 3 Months Ended |
Nov. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill 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. There were no triggering events identified during the first quarter of fiscal 2017 requiring an interim goodwill impairment test. The gross changes in the carrying amount of goodwill by reportable segment for the three months ended November 30, 2016 were as follows (in thousands): Auto and Metals Recycling August 31, 2016 $ 166,847 Foreign currency translation adjustment (415 ) November 30, 2016 $ 166,432 Accumulated goodwill impairment charges were $471 million as of November 30, 2016 and August 31, 2016 . |
Debt
Debt | 3 Months Ended |
Nov. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of August 31, 2016, the Company had $8 million of tax-exempt economic development revenue bonds outstanding with the State of Oregon and scheduled to mature in January 2021. In August 2016, the Company exercised its option to redeem the bonds prior to maturity. The Company repaid the bonds in full in September 2016. The obligation is reported as a current liability within short-term borrowings as of August 31, 2016 on the Unaudited Condensed Consolidated Balance Sheet, and the $8 million repayment is reported as a cash outflow from financing activities for the three months ended November 30, 2016 on the Unaudited Condensed Consolidated Statement of Cash Flows. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 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 three months ended November 30, 2016 were as follows (in thousands): Reportable Segment Balance as of August 31, 2016 Liabilities Established (Released), Net Payments and Other Balance as of November 30, 2016 Short-Term Long-Term Auto and Metals Recycling $ 46,122 $ 100 $ (184 ) $ 46,038 $ 1,948 $ 44,090 Corporate 228 — (18 ) 210 90 120 Total $ 46,350 $ 100 $ (202 ) $ 46,248 $ 2,038 $ 44,210 Auto and Metals Recycling (“AMR”) As of November 30, 2016 and August 31, 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 (“FS”) for the Site based on approximately ten years of work and $100 million in costs classified by the LWG as investigation-related. The draft FS submitted by the LWG identified ten possible remedial alternatives which ranged in estimated cost from approximately $170 million to $250 million (net present value) for the least costly alternative to approximately $1.08 billion to $1.76 billion (net present value) for the most costly alternative and estimated a range of two to 28 years to implement the remedial work, depending on the selected alternative. 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 identified five possible remedial alternatives which ranged 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 alternative and estimated a range of four to 18 years to implement the remedial work, depending on the selected alternative. 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 was a modified version of one of the alternatives (Alternative E) in the revised draft FS, and EPA Region 10 estimated that its preferred alternative would take seven years to implement, with an estimated cost of $1.4 billion (net present value). In June 2016, the EPA issued its Proposed Plan for the cleanup of the in-river portion of the Site. In the Proposed Plan, the EPA identified its preferred alternative, which includes a combination of dredging, capping, and enhanced natural recovery and which the EPA estimates will take approximately seven years to construct with additional time for monitored natural recovery to occur and cost an estimated $746 million (net present value). This is approximately half of the estimated $1.4 billion (net present value) cost of the very similar preferred alternative that EPA Region 10 presented in November 2015. The Proposed Plan also describes other alternatives that were considered and the criteria the EPA used to compare the alternatives, including estimated costs and construction timelines. In conjunction with the Proposed Plan, the EPA issued its final FS in June 2016. The final FS identifies eight possible remedial alternatives (some of which contain two disposal alternatives, for a total of 13 possible alternative remedial scenarios) which ranged in estimated cost from approximately $316 million to $677 million (net present value) for the least costly alternative to approximately $1.21 billion to $2.67 billion (net present value) for the most costly alternative that the EPA did not screen out and estimates a range of four to 19 years to implement the remedial work, depending on the selected alternative. The final FS includes one alternative (Alternative H) which would involve capping/dredging the entire Site with an estimated cost range from approximately $6.61 billion to $14.29 billion and 62 years to implement. The EPA screened out this Alternative H due to implementability and cost considerations. Each of the draft and final FS also contain a No Action alternative considered as a baseline for comparison with the other alternatives. The FS and the Proposed Plan do not determine or allocate the responsibility for remediation costs. Issuance of the Proposed Plan is part of the continuing process for evaluation and remediation of the Site. There was a 90-day public comment period on the Proposed Plan that closed on September 6, 2016. Approximately 5,300 commenters submitted comments. Following its review and consideration of these comments, the EPA will prepare a summary responding to the submitted comments and select a remedy for the Site in a Record of Decision (“ROD”). The EPA has indicated that it plans to issue the ROD in early January 2017. In the ROD, the EPA may modify the preferred alternative or select a different alternative than that presented in the Proposed Plan based on new information or public comments. It is uncertain whether the preferred alternative identified by the EPA in the Proposed Plan will be the selected remedy in the ROD or whether the EPA will be able to maintain its proposed schedule for issuing the ROD. Even when the ROD is issued, it is likely that there will continue to be significant uncertainty regarding the costs of the selected remedy. The Company and other stakeholders have identified a number of serious concerns regarding the EPA's risk and remedial alternatives assessments and the EPA's cost estimates, scheduling assumptions and conclusions regarding the feasibility, effectiveness and assignment of remediation technologies. The EPA’s FS and Proposed Plan are based on data that are more than a decade old and may not accurately represent site or background conditions. In its Proposed Plan, the EPA acknowledged that the assumptions used to estimate costs for the remedial alternatives were developed based on the existing data and will be finalized during the remedial design, after design level data to refine the baseline conditions are obtained. In addition, the FS and Proposed Plan provide only site-wide cost estimates and do not provide sufficient detail regarding costs for specific sediment management areas. Accordingly, it is anticipated that additional pre-remedial design investigative work will need to occur after the ROD is issued in order to provide a re-baseline for costs and determine particular remedial actions for specific areas within the Site. 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 is expected to seek 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 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 November 30, 2016 and August 31, 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 November 30, 2016 and August 31, 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, after taking into consideration expected insurance recoveries, 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 | 3 Months Ended |
Nov. 30, 2016 | |
Restructuring Charges, Asset Impairment and Accelerated Depreciation [Abstract] | |
Restructuring Charges and Other Exit-Related Costs | Restructuring Charges and Other Exit-Related Activities 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 primarily pertain to the plan announced in the second quarter of fiscal 2015 and expanded in subsequent periods (the "Q2'15 Plan"). 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 market conditions. The Company expanded these initiatives in April 2015 and also announced the integration of the former Metals Recycling Business and Auto Parts Business 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 reductions in personnel, savings from procurement activities, streamlining of administrative and supporting services functions, and adjustments to its operating capacity through facility closures, were identified and initiated in subsequent periods. Collectively, these initiatives are referred to as the Q2'15 Plan. The Company incurred restructuring charges of less than $1 million and $2 million during the three months ended November 30, 2016 and 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, the Company incurred charges associated with other exit-related activities of less than $1 million during the three months ended November 30, 2016 , consisting of asset impairments and accelerated depreciation of assets in connection with site closures and idled equipment. The Company did not incur charges associated with other exit-related activities during the three months ended November 30, 2015 . Restructuring charges and other exit-related activities were comprised of the following (in thousands): Three Months Ended November 30, 2016 Three Months Ended November 30, 2015 All Other Plans Q2’15 Plan Total Charges All Other Plans Q2’15 Plan Total Charges Restructuring charges: Severance costs $ — $ (62 ) $ (62 ) $ — $ 1,161 $ 1,161 Contract termination costs 88 (2 ) 86 90 645 735 Other restructuring costs — — — — — — Total restructuring charges 88 (64 ) 24 90 1,806 1,896 Other exit-related activities: Asset impairments and accelerated depreciation — 158 158 — — — Total other exit-related activities — 158 158 — — — Total restructuring charges and other exit-related activities $ 88 $ 94 $ 182 $ 90 $ 1,806 $ 1,896 Restructuring charges and other exit-related activities included in continuing operations $ 201 $ 1,925 Restructuring charges (recoveries) and other exit-related activities included in discontinued operations $ (19 ) $ (29 ) Q2'15 Plan Total restructuring charges to date $ 14,270 Total expected restructuring charges $ 14,400 The following illustrates the reconciliation of the restructuring liability by major type of costs for the three months ended November 30, 2016 (in thousands): Q2’15 Plan Total Charges to Date (1) Total Expected Charges (1) Balance 8/31/2016 Charges Payments and Other Balance 11/30/2016 Severance costs $ 918 $ (62 ) $ (427 ) $ 429 $ 10,213 $ 10,213 Contract termination costs 1,159 (2 ) (159 ) 998 2,008 2,138 Other restructuring costs — — — — 2,049 2,049 Total $ 2,077 $ (64 ) $ (586 ) $ 1,427 $ 14,270 $ 14,400 ___________________________ (1) Total charges to date and total expected charges by major type of cost reflect amounts related to the Q2'15 Plan only. Remaining charges related to prior plans are not material. Restructuring charges and other exit-related activities by reportable segment and discontinued operations were as follows (in thousands): Three Months Ended November 30, Total Charges to Date (1) Total Expected Charges (1) 2016 2015 Restructuring charges: Auto and Metals Recycling $ 45 $ 1,922 $ 9,450 $ 9,525 Unallocated (Corporate) (2 ) 3 3,176 3,176 Discontinued operations (19 ) (29 ) 1,644 1,699 Total restructuring charges 24 1,896 14,270 14,400 Other exit-related activities: Auto and Metals Recycling 158 — 4,837 Discontinued operations — — 3,613 Total other exit-related activities 158 — 8,450 Total restructuring charges and other exit-related activities $ 182 $ 1,896 $ 22,720 ___________________________ (1) Total charges to date and total expected charges by reportable segment and discontinued operations reflect amounts related to the Q2'15 Plan only. Remaining charges related to prior plans are not material. The Company does not allocate restructuring charges and other exit-related activities 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 | 3 Months Ended |
Nov. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Changes in Equity | Changes in Equity Changes in equity were comprised of the following (in thousands): Three Months Ended November 30, 2016 Three Months Ended November 30, 2015 SSI Shareholders’ Equity Noncontrolling Interests Total Equity SSI Shareholders’ Equity Noncontrolling Interests Total Equity Balance - September 1 (Beginning of period) $ 497,721 $ 3,711 $ 501,432 $ 534,535 $ 4,016 $ 538,551 Net income (loss) (1,326 ) 618 (708 ) (5,296 ) 329 (4,967 ) Other comprehensive loss, net of tax (1,099 ) — (1,099 ) (728 ) — (728 ) Distributions to noncontrolling interests — (522 ) (522 ) — (827 ) (827 ) Share repurchases — — — (3,479 ) — (3,479 ) Restricted stock withheld for taxes (3,301 ) — (3,301 ) (1,887 ) — (1,887 ) Share-based compensation 3,408 — 3,408 2,937 — 2,937 Dividends (5,143 ) — (5,143 ) (5,152 ) — (5,152 ) Balance - November 30 (End of period) $ 490,260 $ 3,807 $ 494,067 $ 520,930 $ 3,518 $ 524,448 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Nov. 30, 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 November 30, 2016 Three Months Ended November 30, 2015 Foreign Currency Translation Adjustments Pension Obligations, net Total Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balances - September 1 (Beginning of period) $ (34,539 ) $ (5,576 ) $ (40,115 ) $ (34,009 ) $ (4,273 ) $ (240 ) $ (38,522 ) Other comprehensive income (loss) before reclassifications (1,034 ) 49 (985 ) (1,009 ) — — (1,009 ) Income tax expense — (194 ) (194 ) — — — — Other comprehensive loss before reclassifications, net of tax (1,034 ) (145 ) (1,179 ) (1,009 ) — — (1,009 ) Amounts reclassified from accumulated other comprehensive loss — 125 125 — 64 312 376 Income tax benefit — (45 ) (45 ) — (23 ) (72 ) (95 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 80 80 — 41 240 281 Net periodic other comprehensive income (loss) (1,034 ) (65 ) (1,099 ) (1,009 ) 41 240 (728 ) Balances - November 30 (End of period) $ (35,573 ) $ (5,641 ) $ (41,214 ) $ (35,018 ) $ (4,232 ) $ — $ (39,250 ) 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. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Nov. 30, 2016 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation In the first quarter of fiscal 2017, 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 142,635 restricted stock units ("RSUs") and 134,899 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 generally have a five-year term and vest 20% per year commencing October 31, 2017. 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 $3 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 65,506 performance share awards based on a relative Total Shareholder Return ("TSR") metric over a performance period spanning November 1, 2016 to August 31, 2019. Award share payouts range from a threshold of 50% 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 69,393 performance share awards have a three -year performance period consisting of the Company’s fiscal 2017, 2018 and 2019. The performance targets are based on the Company's cash flow return on investment ("CFROI") over the three-year performance period, with award payouts ranging from a threshold of 50% 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, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the Company’s continuing operations for the three months ended November 30, 2016 was a benefit of 8.6% , compared to a benefit of 10.5% for the three months ended November 30, 2015 . A reconciliation of the difference between the federal statutory rate and the Company’s effective rate is as follows: Three Months Ended November 30, 2016 2015 Federal statutory rate 35.0 % 35.0 % State taxes, net of credits 2.1 0.8 Foreign income taxed at different rates (3.4 ) (9.1 ) Non-deductible officers’ compensation 2.7 1.5 Noncontrolling interests (4.4 ) (3.9 ) Research and development credits (1.4 ) (0.2 ) Valuation allowance on deferred tax assets (25.0 ) (16.4 ) Unrecognized tax benefits 1.9 1.2 Other non-deductible expenses 1.3 2.1 Other (0.2 ) (0.5 ) Effective tax rate 8.6 % 10.5 % The effective tax rate from continuing operations for the first quarter of fiscal 2017 and 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 Company files federal and state income tax returns in the U.S. and foreign tax returns in Puerto Rico and Canada. For U.S. federal income tax returns, fiscal years 2012 to 2016 remain subject to examination under the statute of limitations. The Company's U.S. federal income tax return for fiscal 2015 is currently under examination. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Nov. 30, 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 November 30, 2016 2015 Loss from continuing operations $ (655 ) $ (4,902 ) Net income attributable to noncontrolling interests (618 ) (329 ) Loss from continuing operations attributable to SSI (1,273 ) (5,231 ) Loss from discontinued operations, net of tax (53 ) (65 ) Net loss attributable to SSI $ (1,326 ) $ (5,296 ) Computation of shares: Weighted average common shares outstanding, basic 27,372 27,121 Incremental common shares attributable to dilutive stock options, performance share awards, DSUs, and RSUs — — Weighted average common shares outstanding, diluted 27,372 27,121 Common stock equivalent shares of 1,086,335 were considered antidilutive and were excluded from the calculation of diluted net loss per share for the three months ended November 30, 2016 , compared to 794,579 common stock equivalent shares for the three months ended November 30, 2015 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Nov. 30, 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 $3 million for the three months ended November 30, 2016 and 2015 . |
Segment Information
Segment Information | 3 Months Ended |
Nov. 30, 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 for which discrete financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has two reportable segments as follows: AMR and SMB. AMR buys and processes ferrous and nonferrous metal for sale to foreign and other domestic steel producers or their representatives and to SMB. AMR also 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. Additionally, the Company is a noncontrolling partner in joint ventures, which are either in the metals recycling business or are suppliers of unprocessed metal. The Company's allocable portion of the results of these joint ventures is 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 management and certain administrative services that benefit both reportable segments. In addition, the Company does not allocate restructuring charges and other exit-related activities to the segment operating income because management does not include this information in its measurement of the performance of the operating segments. The table below illustrates the Company’s revenues from continuing operations by reportable segment (in thousands): Three Months Ended November 30, 2016 2015 Revenues: Auto and Metals Recycling: Revenues $ 304,938 $ 272,965 Less: Intersegment revenues (23,373 ) (23,668 ) AMR external customer revenues 281,565 249,297 Steel Manufacturing Business: Revenues 52,596 71,901 Total revenues $ 334,161 $ 321,198 The table below illustrates the reconciliation of the Company’s segment operating income to loss from continuing operations before income taxes (in thousands): Three Months Ended November 30, 2016 2015 Auto and Metals Recycling $ 12,419 $ 2,036 Steel Manufacturing Business (3,081 ) 2,754 Segment operating income 9,338 4,790 Restructuring charges and other exit-related activities (201 ) (1,925 ) Corporate and eliminations (8,550 ) (6,893 ) Operating income (loss) 587 (4,028 ) Interest expense (1,741 ) (1,859 ) Other income, net 437 407 Loss from continuing operations before income taxes $ (717 ) $ (5,480 ) The following is a summary of the Company’s total assets by reportable segment (in thousands): November 30, 2016 August 31, 2016 Auto and Metals Recycling (1) $ 1,520,912 $ 1,510,688 Steel Manufacturing Business 359,112 373,130 Total segment assets 1,880,024 1,883,818 Corporate and eliminations (2) (1,001,130 ) (992,389 ) Total assets $ 878,894 $ 891,429 _____________________________ (1) AMR total assets include $14 million as of November 30, 2016 and August 31, 2016 for investments in joint ventures. (2) The substantial majority of Corporate and eliminations total assets is comprised of Corporate intercompany payables to the Company's operating segments and intercompany eliminations. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 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, 2016 . The results for the three months ended November 30, 2016 and 2015 are not necessarily indicative of the results of operations for the entire fiscal year. |
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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include short-term securities that are not restricted by third parties and have an original maturity date of 90 days or less. Included in accounts payable are book overdrafts representing outstanding checks in excess of funds on deposit of $19 million and $3 million as of November 30, 2016 and August 31, 2016 , respectively. |
Long-Lived Assets | Long-Lived Assets Changes in circumstances may merit a change in the estimated useful lives or salvage values of individual long-lived assets, which are accounted for prospectively in the period of change. For such assets, the useful life is shortened based on the Company's 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 three months ended November 30, 2016 , the Company recognized accelerated depreciation of less than $1 million due to shortening the useful lives of decommissioned machinery and equipment assets in the Steel Manufacturing Business reportable segment, which is reported within other asset impairment charges in the Unaudited Condensed Consolidated Statements of Operations. |
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, and notes and other contractual receivables from suppliers. The majority of cash and cash equivalents is maintained with two major financial institutions. Balances with these and certain other institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of November 30, 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 $46 million and $40 million of open letters of credit as of November 30, 2016 and August 31, 2016 , respectively. |
Financial Instruments | Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable and debt. The Company uses the market approach to value its financial assets and liabilities, determined using available market information. The net carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. For long-term debt, which is primarily at variable interest rates, fair value is estimated using observable inputs (Level 2) and approximates its carrying value. |
Fair Value Measurements | Fair Value 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 Activities for further detail. |
New Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, an accounting standard update was issued that clarifies the principles for recognizing revenue from contracts with customers. The update will supersede the existing standard for recognizing revenue. Additional updates have been issued since May 2014 amending aspects of the initial update and providing implementation guidance. The guidance is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The standard is effective for the Company beginning in the first quarter of fiscal 2019, including interim periods within that fiscal year. Upon becoming effective, the Company will apply the amendments in the standard either retrospectively to each prior reporting period presented, or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company is evaluating the impact of adopting this standard on its consolidated financial position, results of operations and cash flows. In 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. In March 2016, an accounting standard update was issued that amends several aspects of the accounting for share-based payments, including accounting for income taxes, forfeitures and statutory tax withholding requirements, and classification within the statement of cash flows. The standard is effective for the Company beginning in the first quarter of fiscal 2018, including interim periods within that fiscal year. Early adoption is permitted in any interim or annual period; however, if the Company elects early adoption, it must adopt all of the amendments in the same period. The Company does not expect adoption to have an immediate material impact on its consolidated financial position, results of operations and cash flows. In June 2016, an accounting standard update was issued that amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, which include trade and other receivables, loans and other financial instruments, the update amends the initial recognition threshold to require a company to estimate expected credit losses rather than delaying the recognition of the full amount of credit losses until the loss is probable of occurring. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP; however, the update requires that credit losses be presented as an allowance rather than as a write-down. This standard is effective for the Company beginning in the first quarter of fiscal 2021, including interim periods within that fiscal year. The standard will be applied using a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Adoption of the standard is not expected to have a material impact on the Company's consolidated financial position. In August 2016, an accounting standard update was issued that addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Among the cash flow matters addressed in the update are payments for costs related to debt prepayments or extinguishments, payments related to settlement of certain types of debt instruments, payments of contingent consideration made after a business combination, proceeds from insurance claims and corporate-owned life insurance policies, and distributions received from equity method investees, among others. The standard is effective for the Company beginning in the first quarter of fiscal 2019, including interim periods within that fiscal year. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period, and all of the amendments must be adopted together in the same period. The amendments will be applied using a retrospective transition method to each period presented, unless impracticable for specific cash flow matters, in which case the amendments would be applied prospectively as of the earliest date practicable. The Company is evaluating the impact of adopting this standard on its consolidated statement of cash flows. In October 2016, an accounting standard update was issued that amends the existing guidance on the accounting for the income tax effects of intra-entity transfers of assets other than inventory. Current accounting standards prohibit the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The amendments in the update require that entities recognize the income tax effects of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments do not change accounting standards for the pre-tax effects of an intra-entity asset transfer under accounting standards applicable to consolidation, or for an intra-entity transfer of inventory. The standard is effective for the Company beginning in the first quarter of fiscal 2019, including interim periods within that fiscal year. Early adoption is permitted in the first interim period of a fiscal year. The amendments will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is evaluating the impact of adopting this standard on its consolidated financial position, results of operations and cash flows. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): November 30, 2016 August 31, 2016 Processed and unprocessed scrap metal $ 65,402 $ 49,061 Semi-finished goods (billets) 9,785 8,320 Finished goods 39,482 40,646 Supplies 33,425 34,945 Inventories $ 148,094 $ 132,972 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Nov. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The gross changes in the carrying amount of goodwill by reportable segment for the three months ended November 30, 2016 were as follows (in thousands): Auto and Metals Recycling August 31, 2016 $ 166,847 Foreign currency translation adjustment (415 ) November 30, 2016 $ 166,432 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Nov. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Reserves For Environmental Liabilities | Changes in the Company’s environmental liabilities for the three months ended November 30, 2016 were as follows (in thousands): Reportable Segment Balance as of August 31, 2016 Liabilities Established (Released), Net Payments and Other Balance as of November 30, 2016 Short-Term Long-Term Auto and Metals Recycling $ 46,122 $ 100 $ (184 ) $ 46,038 $ 1,948 $ 44,090 Corporate 228 — (18 ) 210 90 120 Total $ 46,350 $ 100 $ (202 ) $ 46,248 $ 2,038 $ 44,210 |
Restructuring Charges and Oth25
Restructuring Charges and Other Exit-Related Costs (Tables) | 3 Months Ended |
Nov. 30, 2016 | |
Restructuring Charges, Asset Impairment and Accelerated Depreciation [Abstract] | |
Restructuring and Related Costs | Restructuring charges and other exit-related activities were comprised of the following (in thousands): Three Months Ended November 30, 2016 Three Months Ended November 30, 2015 All Other Plans Q2’15 Plan Total Charges All Other Plans Q2’15 Plan Total Charges Restructuring charges: Severance costs $ — $ (62 ) $ (62 ) $ — $ 1,161 $ 1,161 Contract termination costs 88 (2 ) 86 90 645 735 Other restructuring costs — — — — — — Total restructuring charges 88 (64 ) 24 90 1,806 1,896 Other exit-related activities: Asset impairments and accelerated depreciation — 158 158 — — — Total other exit-related activities — 158 158 — — — Total restructuring charges and other exit-related activities $ 88 $ 94 $ 182 $ 90 $ 1,806 $ 1,896 Restructuring charges and other exit-related activities included in continuing operations $ 201 $ 1,925 Restructuring charges (recoveries) and other exit-related activities included in discontinued operations $ (19 ) $ (29 ) Q2'15 Plan Total restructuring charges to date $ 14,270 Total expected restructuring charges $ 14,400 |
Schedule of Restructuring Reserve by Type of Cost | The following illustrates the reconciliation of the restructuring liability by major type of costs for the three months ended November 30, 2016 (in thousands): Q2’15 Plan Total Charges to Date (1) Total Expected Charges (1) Balance 8/31/2016 Charges Payments and Other Balance 11/30/2016 Severance costs $ 918 $ (62 ) $ (427 ) $ 429 $ 10,213 $ 10,213 Contract termination costs 1,159 (2 ) (159 ) 998 2,008 2,138 Other restructuring costs — — — — 2,049 2,049 Total $ 2,077 $ (64 ) $ (586 ) $ 1,427 $ 14,270 $ 14,400 |
Schedule of Restructuring and Related Activities By Segment | Restructuring charges and other exit-related activities by reportable segment and discontinued operations were as follows (in thousands): Three Months Ended November 30, Total Charges to Date (1) Total Expected Charges (1) 2016 2015 Restructuring charges: Auto and Metals Recycling $ 45 $ 1,922 $ 9,450 $ 9,525 Unallocated (Corporate) (2 ) 3 3,176 3,176 Discontinued operations (19 ) (29 ) 1,644 1,699 Total restructuring charges 24 1,896 14,270 14,400 Other exit-related activities: Auto and Metals Recycling 158 — 4,837 Discontinued operations — — 3,613 Total other exit-related activities 158 — 8,450 Total restructuring charges and other exit-related activities $ 182 $ 1,896 $ 22,720 ___________________________ (1) Total charges to date and total expected charges by reportable segment and discontinued operations reflect amounts related to the Q2'15 Plan only. Remaining charges related to prior plans are not material. |
Changes in Equity (Tables)
Changes in Equity (Tables) | 3 Months Ended |
Nov. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Changes in equity were comprised of the following (in thousands): Three Months Ended November 30, 2016 Three Months Ended November 30, 2015 SSI Shareholders’ Equity Noncontrolling Interests Total Equity SSI Shareholders’ Equity Noncontrolling Interests Total Equity Balance - September 1 (Beginning of period) $ 497,721 $ 3,711 $ 501,432 $ 534,535 $ 4,016 $ 538,551 Net income (loss) (1,326 ) 618 (708 ) (5,296 ) 329 (4,967 ) Other comprehensive loss, net of tax (1,099 ) — (1,099 ) (728 ) — (728 ) Distributions to noncontrolling interests — (522 ) (522 ) — (827 ) (827 ) Share repurchases — — — (3,479 ) — (3,479 ) Restricted stock withheld for taxes (3,301 ) — (3,301 ) (1,887 ) — (1,887 ) Share-based compensation 3,408 — 3,408 2,937 — 2,937 Dividends (5,143 ) — (5,143 ) (5,152 ) — (5,152 ) Balance - November 30 (End of period) $ 490,260 $ 3,807 $ 494,067 $ 520,930 $ 3,518 $ 524,448 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Nov. 30, 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 November 30, 2016 Three Months Ended November 30, 2015 Foreign Currency Translation Adjustments Pension Obligations, net Total Foreign Currency Translation Adjustments Pension Obligations, net Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balances - September 1 (Beginning of period) $ (34,539 ) $ (5,576 ) $ (40,115 ) $ (34,009 ) $ (4,273 ) $ (240 ) $ (38,522 ) Other comprehensive income (loss) before reclassifications (1,034 ) 49 (985 ) (1,009 ) — — (1,009 ) Income tax expense — (194 ) (194 ) — — — — Other comprehensive loss before reclassifications, net of tax (1,034 ) (145 ) (1,179 ) (1,009 ) — — (1,009 ) Amounts reclassified from accumulated other comprehensive loss — 125 125 — 64 312 376 Income tax benefit — (45 ) (45 ) — (23 ) (72 ) (95 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 80 80 — 41 240 281 Net periodic other comprehensive income (loss) (1,034 ) (65 ) (1,099 ) (1,009 ) 41 240 (728 ) Balances - November 30 (End of period) $ (35,573 ) $ (5,641 ) $ (41,214 ) $ (35,018 ) $ (4,232 ) $ — $ (39,250 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Nov. 30, 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 November 30, 2016 2015 Federal statutory rate 35.0 % 35.0 % State taxes, net of credits 2.1 0.8 Foreign income taxed at different rates (3.4 ) (9.1 ) Non-deductible officers’ compensation 2.7 1.5 Noncontrolling interests (4.4 ) (3.9 ) Research and development credits (1.4 ) (0.2 ) Valuation allowance on deferred tax assets (25.0 ) (16.4 ) Unrecognized tax benefits 1.9 1.2 Other non-deductible expenses 1.3 2.1 Other (0.2 ) (0.5 ) Effective tax rate 8.6 % 10.5 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Nov. 30, 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 November 30, 2016 2015 Loss from continuing operations $ (655 ) $ (4,902 ) Net income attributable to noncontrolling interests (618 ) (329 ) Loss from continuing operations attributable to SSI (1,273 ) (5,231 ) Loss from discontinued operations, net of tax (53 ) (65 ) Net loss attributable to SSI $ (1,326 ) $ (5,296 ) Computation of shares: Weighted average common shares outstanding, basic 27,372 27,121 Incremental common shares attributable to dilutive stock options, performance share awards, DSUs, and RSUs — — Weighted average common shares outstanding, diluted 27,372 27,121 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Nov. 30, 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 November 30, 2016 2015 Revenues: Auto and Metals Recycling: Revenues $ 304,938 $ 272,965 Less: Intersegment revenues (23,373 ) (23,668 ) AMR external customer revenues 281,565 249,297 Steel Manufacturing Business: Revenues 52,596 71,901 Total revenues $ 334,161 $ 321,198 |
Reconciliation of Operating Income from Segments to Consolidated | The table below illustrates the reconciliation of the Company’s segment operating income to loss from continuing operations before income taxes (in thousands): Three Months Ended November 30, 2016 2015 Auto and Metals Recycling $ 12,419 $ 2,036 Steel Manufacturing Business (3,081 ) 2,754 Segment operating income 9,338 4,790 Restructuring charges and other exit-related activities (201 ) (1,925 ) Corporate and eliminations (8,550 ) (6,893 ) Operating income (loss) 587 (4,028 ) Interest expense (1,741 ) (1,859 ) Other income, net 437 407 Loss from continuing operations before income taxes $ (717 ) $ (5,480 ) |
Reconciliation of Assets from Segment to Consolidated | The following is a summary of the Company’s total assets by reportable segment (in thousands): November 30, 2016 August 31, 2016 Auto and Metals Recycling (1) $ 1,520,912 $ 1,510,688 Steel Manufacturing Business 359,112 373,130 Total segment assets 1,880,024 1,883,818 Corporate and eliminations (2) (1,001,130 ) (992,389 ) Total assets $ 878,894 $ 891,429 _____________________________ (1) AMR total assets include $14 million as of November 30, 2016 and August 31, 2016 for investments in joint ventures. (2) The substantial majority of Corporate and eliminations total assets is comprised of Corporate intercompany payables to the Company's operating segments and intercompany eliminations. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) | 3 Months Ended | |
Nov. 30, 2016USD ($)financial_institution | Aug. 31, 2016USD ($) | |
Accounting Policies [Abstract] | ||
Book Overdrafts | $ 19,000,000 | $ 3,000,000 |
Number of Major Financial Institutions Where Cash and Cash Equivalents Are Maintained | financial_institution | 2 | |
Cash, FDIC Insured Amount | $ 250,000 | |
Customer Issued Letters Of Credit | $ 46,000,000 | $ 40,000,000 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies Asset Impairment Charges (Details) $ in Millions | 3 Months Ended |
Nov. 30, 2016USD ($) | |
Steel Manufacturing Business | Other Asset Impairment Charge | |
Schedule of Asset Impairments Charges [Line Items] | |
Accelerated depreciation (Less than $1 Million) | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Nov. 30, 2016 | Aug. 31, 2016 |
Inventory, Net [Abstract] | ||
Processed and unprocessed scrap metal | $ 65,402 | $ 49,061 |
Semi-finished goods (billets) | 9,785 | 8,320 |
Finished goods | 39,482 | 40,646 |
Supplies | 33,425 | 34,945 |
Inventories | $ 148,094 | $ 132,972 |
Goodwill Schedule of Goodwill (
Goodwill Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
August 31, 2016 | $ 166,847 |
November 30, 2016 | 166,432 |
Auto and Metals Recycling | |
Goodwill [Roll Forward] | |
August 31, 2016 | 166,847 |
Foreign currency translation adjustment | (415) |
November 30, 2016 | $ 166,432 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Nov. 30, 2016 | Aug. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated goodwill impairment charges | $ 471 | $ 471 |
Debt Debt (Details)
Debt Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2016 | Aug. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Tax Exempt Economic Development Revenue Bond | $ 8 | |
Repayment of Tax Exempt Economic Development Revenue Bond | $ 8 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Environmental Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Aug. 31, 2016 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning balance | $ 46,350 | |
Liabilities Established (Released), Net | 100 | |
Payments and Other | (202) | |
Ending balance | 46,248 | |
Short-Term | 2,038 | $ 1,967 |
Long-Term | 44,210 | $ 44,383 |
Auto and Metals Recycling | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning balance | 46,122 | |
Liabilities Established (Released), Net | 100 | |
Payments and Other | (184) | |
Ending balance | 46,038 | |
Short-Term | 1,948 | |
Long-Term | 44,090 | |
Corporate | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning balance | 228 | |
Liabilities Established (Released), Net | 0 | |
Payments and Other | (18) | |
Ending balance | 210 | |
Short-Term | 90 | |
Long-Term | $ 120 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contigencies (Details) T in Thousands | Mar. 30, 2012USD ($)alternatives | Jun. 30, 2016USD ($)alternativesremediation_alternative | Nov. 30, 2015USD ($) | Aug. 31, 2015USD ($)alternatives | Nov. 30, 2016USD ($)potentially_responsible_partyT | Sep. 06, 2016commentors | Aug. 31, 2016USD ($) |
Loss Contingencies [Line Items] | |||||||
Accrual for Environmental Loss Contingencies | $ 46,248,000 | $ 46,350,000 | |||||
Auto and Metals Recycling | |||||||
Loss Contingencies [Line Items] | |||||||
Accrual for Environmental Loss Contingencies | 46,038,000 | 46,122,000 | |||||
Steel Manufacturing Business | |||||||
Loss Contingencies [Line Items] | |||||||
Accrual for Environmental Loss Contingencies | $ 0 | 0 | |||||
Permitted Annual production capacity | T | 950 | ||||||
Permit Expiration Date | Feb. 1, 2018 | ||||||
Portland Harbor Superfund Site | |||||||
Loss Contingencies [Line Items] | |||||||
Site Contingency, Number of Remedial Alternatives | alternatives | 10 | 8 | 5 | ||||
Number of Possible Disposal Alternatives for Site Contingency Remedial Alternatives | remediation_alternative | 2 | ||||||
Site Contingency, Number of Remedial Alternatives Scenarios | remediation_alternative | 13 | ||||||
Alternative Regulatory Action Plan Most Costly Alternative, Estimated Time Frame to Remediate | 62 years | ||||||
Number of comments submitted | commentors | 5,300 | ||||||
Accrual for Environmental Loss Contingencies | $ 1,000,000 | ||||||
Other Auto and Metals Recycling Sites | |||||||
Loss Contingencies [Line Items] | |||||||
Accrual for Environmental Loss Contingencies | $ 45,000,000 | $ 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 | 2 years | 4 years | 4 years | ||||
Maximum | Portland Harbor Superfund Site | |||||||
Loss Contingencies [Line Items] | |||||||
Site Contingency, Estimated Time Frame to Remediate | 28 years | 19 years | 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 | 170,000,000 | $ 316,000,000 | $ 550,000,000 | ||||
Site Contingency, Most Costly Remediation Plan | 1,080,000,000 | 1,210,000,000 | 1,710,000,000 | ||||
Estimated Cost on Alternative Regulatory Action Plan Most Costly Alternative | 6,610,000,000 | ||||||
Potential Responsible Parties | Maximum | Portland Harbor Superfund Site | |||||||
Loss Contingencies [Line Items] | |||||||
Site Contingency, Least Costly Remediation Plan | 250,000,000 | 677,000,000 | 1,190,000,000 | ||||
Site Contingency, Most Costly Remediation Plan | $ 1,760,000,000 | 2,670,000,000 | $ 3,670,000,000 | ||||
Estimated Cost on Alternative Regulatory Action Plan Most Costly Alternative | 14,290,000,000 | ||||||
EPA Region 10 | Portland Harbor Superfund Site | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated Cost on Alternative Regulatory Action Plan | $ 746,000,000 | $ 1,400,000,000 | |||||
Alternative Implementation Period on Regulatory Actions | 7 years | 7 years |
Restructuring Charges and Oth39
Restructuring Charges and Other Exit-Related Costs Restructuring and Related Costs (Details) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2016USD ($) | Nov. 30, 2015USD ($) | Feb. 28, 2015store | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 24 | $ 1,896 | |
Other Exit-Related Activities | 158 | 0 | |
Restructuring Charges and Other Exit-Related Activities | 182 | 1,896 | |
Total restructuring charges to date | 14,270 | ||
Total expected restructuring charges | 14,400 | ||
All Other Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 88 | 90 | |
Restructuring Charges and Other Exit-Related Activities | 88 | 90 | |
Q2’15 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (64) | 1,806 | |
Restructuring Charges and Other Exit-Related Activities | 94 | 1,806 | |
Total restructuring charges to date | 14,270 | ||
Total expected restructuring charges | 14,400 | ||
Severance costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (62) | 1,161 | |
Total restructuring charges to date | 10,213 | ||
Total expected restructuring charges | 10,213 | ||
Severance costs | All Other Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Severance costs | Q2’15 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (62) | 1,161 | |
Contract termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 86 | 735 | |
Total restructuring charges to date | 2,008 | ||
Total expected restructuring charges | 2,138 | ||
Contract termination costs | All Other Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 88 | 90 | |
Contract termination costs | Q2’15 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (2) | 645 | |
Other restructuring costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Total restructuring charges to date | 2,049 | ||
Total expected restructuring charges | 2,049 | ||
Other restructuring costs | All Other Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Other restructuring costs | Q2’15 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Asset Impairments and Accelerated Depreciation | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment and accelerated depreciation | 158 | 0 | |
Asset Impairments and Accelerated Depreciation | All Other Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment and accelerated depreciation | 0 | 0 | |
Asset Impairments and Accelerated Depreciation | Q2’15 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment and accelerated depreciation | 158 | 0 | |
Other Exit-Related Activity | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Exit-Related Activities | 158 | 0 | |
Other Exit-Related Activity | All Other Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Exit-Related Activities | 0 | 0 | |
Other Exit-Related Activity | Q2’15 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Exit-Related Activities | 158 | 0 | |
Segment Reconciling Items | Continuing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges and Other Exit-Related Activities | 201 | 1,925 | |
Segment Reconciling Items | Discontinued Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (19) | (29) | |
Restructuring Charges and Other Exit-Related Activities | (19) | (29) | |
Total restructuring charges to date | 1,644 | ||
Total expected restructuring charges | 1,699 | ||
Segment Reconciling Items | Other Exit-Related Activity | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Exit-Related Activities | 158 | 0 | |
Segment Reconciling Items | Other Exit-Related Activity | Discontinued Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Exit-Related Activities | $ 0 | $ 0 | |
Auto Parts Stores | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | store | 7 |
Restructuring Charges and Oth40
Restructuring Charges and Other Exit-Related Costs Restructuring Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Charges | $ 24 | $ 1,896 |
Total charges to date | 14,270 | |
Total expected charges | 14,400 | |
Q2’15 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 2,077 | |
Charges | (64) | 1,806 |
Payments and Other | (586) | |
Restructuring reserve, ending balance | 1,427 | |
Total charges to date | 14,270 | |
Total expected charges | 14,400 | |
Severance costs | ||
Restructuring Reserve [Roll Forward] | ||
Charges | (62) | 1,161 |
Total charges to date | 10,213 | |
Total expected charges | 10,213 | |
Severance costs | Q2’15 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 918 | |
Charges | (62) | 1,161 |
Payments and Other | (427) | |
Restructuring reserve, ending balance | 429 | |
Contract termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Charges | 86 | 735 |
Total charges to date | 2,008 | |
Total expected charges | 2,138 | |
Contract termination costs | Q2’15 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 1,159 | |
Charges | (2) | 645 |
Payments and Other | (159) | |
Restructuring reserve, ending balance | 998 | |
Other restructuring costs | ||
Restructuring Reserve [Roll Forward] | ||
Charges | 0 | 0 |
Total charges to date | 2,049 | |
Total expected charges | 2,049 | |
Other restructuring costs | Q2’15 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0 | |
Charges | 0 | $ 0 |
Payments and Other | 0 | |
Restructuring reserve, ending balance | $ 0 |
Restructuring Charges and Oth41
Restructuring Charges and Other Exit-Related Costs by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 24 | $ 1,896 |
Other Exit-Related Activities | 158 | 0 |
Total Restructuring Charges and Other Exit-Related Activities | 182 | 1,896 |
Total charges to date | 14,270 | |
Total restructuring charges and other exit-related costs, incurred to date | 22,720 | |
Total expected charges | 14,400 | |
Other Exit-Related Activity | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Exit-Related Activities | 158 | 0 |
Operating Segments | Auto and Metals Recycling | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 45 | 1,922 |
Total charges to date | 9,450 | |
Total expected charges | 9,525 | |
Operating Segments | Auto and Metals Recycling | Other Exit-Related Activity | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Exit-Related Activities | 158 | 0 |
Other Exit-Related Activities, Activity to Date | 4,837 | |
Unallocated (Corporate) | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | (2) | 3 |
Total charges to date | 3,176 | |
Total expected charges | 3,176 | |
Segment Reconciling Items | Other Exit-Related Activity | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Exit-Related Activities | 158 | 0 |
Other Exit-Related Activities, Activity to Date | 8,450 | |
Discontinued Operations | Segment Reconciling Items | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | (19) | (29) |
Total Restructuring Charges and Other Exit-Related Activities | (19) | (29) |
Total charges to date | 1,644 | |
Total expected charges | 1,699 | |
Discontinued Operations | Segment Reconciling Items | Other Exit-Related Activity | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Exit-Related Activities | 0 | $ 0 |
Other Exit-Related Activities, Activity to Date | $ 3,613 |
Changes in Equity (Details)
Changes in Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance - September 1 (Beginning of period) | $ 501,432 | $ 538,551 |
Net income (loss) | (708) | (4,967) |
Other comprehensive loss, net of tax | (1,099) | (728) |
Distributions to noncontrolling interests | (522) | (827) |
Share repurchases | 0 | (3,479) |
Restricted stock withheld for taxes | (3,301) | (1,887) |
Share-based compensation | 3,408 | 2,937 |
Dividends | (5,143) | (5,152) |
Balance - November 30 (End of period) | 494,067 | 524,448 |
SSI Shareholders’ Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance - September 1 (Beginning of period) | 497,721 | 534,535 |
Net income (loss) | (1,326) | (5,296) |
Other comprehensive loss, net of tax | (1,099) | (728) |
Distributions to noncontrolling interests | 0 | 0 |
Share repurchases | 0 | (3,479) |
Restricted stock withheld for taxes | (3,301) | (1,887) |
Share-based compensation | 3,408 | 2,937 |
Dividends | (5,143) | (5,152) |
Balance - November 30 (End of period) | 490,260 | 520,930 |
Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance - September 1 (Beginning of period) | 3,711 | 4,016 |
Net income (loss) | 618 | 329 |
Other comprehensive loss, net of tax | 0 | 0 |
Distributions to noncontrolling interests | (522) | (827) |
Share repurchases | 0 | 0 |
Restricted stock withheld for taxes | 0 | 0 |
Share-based compensation | 0 | 0 |
Dividends | 0 | 0 |
Balance - November 30 (End of period) | $ 3,807 | $ 3,518 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||
Balance - September 1 (Beginning of period) | $ 501,432 | $ 538,551 |
Total other comprehensive income (loss), net of tax | (1,099) | (728) |
Balance - November 30 (End of period) | 494,067 | 524,448 |
Foreign Currency Translation Adjustments | ||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||
Balance - September 1 (Beginning of period) | (34,539) | (34,009) |
Other comprehensive income (loss) before reclassifications | (1,034) | (1,009) |
Income tax expense | 0 | 0 |
Other comprehensive loss before reclassifications, net of tax | (1,034) | (1,009) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Income tax benefit | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Total other comprehensive income (loss), net of tax | (1,034) | (1,009) |
Balance - November 30 (End of period) | (35,573) | (35,018) |
Pension Obligations, net | ||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||
Balance - September 1 (Beginning of period) | (5,576) | (4,273) |
Other comprehensive income (loss) before reclassifications | 49 | 0 |
Income tax expense | (194) | 0 |
Other comprehensive loss before reclassifications, net of tax | (145) | 0 |
Amounts reclassified from accumulated other comprehensive loss | 125 | 64 |
Income tax benefit | (45) | (23) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 80 | 41 |
Total other comprehensive income (loss), net of tax | (65) | 41 |
Balance - November 30 (End of period) | (5,641) | (4,232) |
Net Unrealized Gain (Loss) on Cash Flow Hedges | ||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||
Balance - September 1 (Beginning of period) | (240) | |
Other comprehensive income (loss) before reclassifications | 0 | |
Income tax expense | 0 | |
Other comprehensive loss before reclassifications, net of tax | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 312 | |
Income tax benefit | (72) | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 240 | |
Total other comprehensive income (loss), net of tax | 240 | |
Balance - November 30 (End of period) | 0 | |
AOCI Attributable to Parent | ||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward} | ||
Balance - September 1 (Beginning of period) | (40,115) | (38,522) |
Other comprehensive income (loss) before reclassifications | (985) | (1,009) |
Income tax expense | (194) | 0 |
Other comprehensive loss before reclassifications, net of tax | (1,179) | (1,009) |
Amounts reclassified from accumulated other comprehensive loss | 125 | 376 |
Income tax benefit | (45) | (95) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 80 | 281 |
Total other comprehensive income (loss), net of tax | (1,099) | (728) |
Balance - November 30 (End of period) | $ (41,214) | $ (39,250) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) $ in Millions | 3 Months Ended |
Nov. 30, 2016USD ($)companyshares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 142,635 |
Shares granted, fair value | $ | $ 3 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 134,899 |
Performance Shares | Total Shareholder Return | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 65,506 |
Shares granted, fair value | $ | $ 2 |
Total Shareholder Return Designated Peer Group | company | 16 |
Performance Shares | Total Shareholder Return | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Based Awards Award Payouts Threshold | 50.00% |
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 | Cash Flow Return on Investment | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 69,393 |
Shares granted, fair value | $ | $ 2 |
Performance period | 3 years |
Performance Shares | Cash Flow Return on Investment | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Based Awards Award Payouts Threshold | 50.00% |
Performance Shares | Cash Flow Return on Investment | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Based Awards Award Payouts Threshold | 200.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 35.00% | 35.00% |
Effective tax rate | 8.60% | 10.50% |
Income Taxes - Schedule (Detail
Income Taxes - Schedule (Details) | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Federal statutory rate | 35.00% | 35.00% |
State taxes, net of credits | 2.10% | 0.80% |
Foreign income taxed at different rates | (3.40%) | (9.10%) |
Non-deductible officers’ compensation | 2.70% | 1.50% |
Noncontrolling interests | (4.40%) | (3.90%) |
Research and development credits | (1.40%) | (0.20%) |
Valuation allowance on deferred tax assets | (25.00%) | (16.40%) |
Unrecognized tax benefits | 1.90% | 1.20% |
Other non-deductible expenses | 1.30% | 2.10% |
Other | (0.20%) | (0.50%) |
Effective tax rate | 8.60% | 10.50% |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Loss from continuing operations | $ (655) | $ (4,902) |
Net income attributable to noncontrolling interests | (618) | (329) |
Loss from continuing operations attributable to SSI | (1,273) | (5,231) |
Loss from discontinued operations, net of tax | (53) | (65) |
Net loss attributable to SSI | $ (1,326) | $ (5,296) |
Computation of shares: | ||
Weighted average common shares outstanding, basic (in shares) | 27,372,000 | 27,121,000 |
Incremental common shares attributable to dilutive stock options, performance share awards, DSUs, and RSUs (in shares) | 0 | 0 |
Weighted average common shares outstanding, diluted (in shares) | 27,372,000 | 27,121,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,086,335 | 794,579 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Corporate Joint Venture | ||
Related Party Transaction [Line Items] | ||
Purchases from joint ventures | $ 3 | $ 3 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended |
Nov. 30, 2016segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Information Segment Rev
Segment Information Segment Revenue Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 334,161 | $ 321,198 |
Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Revenues | 281,565 | 249,297 |
Steel Manufacturing Business | ||
Segment Reporting Information [Line Items] | ||
Revenues | 52,596 | 71,901 |
Operating Segments | Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Revenues | 304,938 | 272,965 |
Less: Intersegment revenues | Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ (23,373) | $ (23,668) |
Segment Information Segment Ope
Segment Information Segment Operating Income Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ 587 | $ (4,028) |
Restructuring charges and other exit-related activities | (201) | (1,925) |
Interest expense | (1,741) | (1,859) |
Other income, net | 437 | 407 |
Loss from continuing operations before income taxes | (717) | (5,480) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 9,338 | 4,790 |
Operating Segments | Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 12,419 | 2,036 |
Operating Segments | Steel Manufacturing Business | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | (3,081) | 2,754 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges and other exit-related activities | (201) | (1,925) |
Corporate and eliminations | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ (8,550) | $ (6,893) |
Segment Information Segment Ass
Segment Information Segment Assets Reconciliation to Consolidated (Details) - USD ($) $ in Thousands | Nov. 30, 2016 | Aug. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Assets | $ 878,894 | $ 891,429 |
Investments in joint ventures | 13,766 | 13,616 |
Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Investments in joint ventures | 14,000 | 14,000 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,880,024 | 1,883,818 |
Operating Segments | Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,520,912 | 1,510,688 |
Operating Segments | Steel Manufacturing Business | ||
Segment Reporting Information [Line Items] | ||
Assets | 359,112 | 373,130 |
Corporate and eliminations | ||
Segment Reporting Information [Line Items] | ||
Assets | $ (1,001,130) | $ (992,389) |