Radius Recycling (RDUS) 10-Q 26 Jun 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	May 31, 2019	Jun. 24, 2019
Entity Information [Line Items]
Document Type	10-Q
Document Period End Date	May 31, 2019
Entity Registrant Name	SCHNITZER STEEL INDUSTRIES, INC.
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000912603
Current Fiscal Year End Date	--08-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		26,578,576
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		200,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2019	Aug. 31, 2018
Current assets:
Cash and cash equivalents	$ 8,119	$ 4,723
Accounts receivable, net of allowance for doubtful accounts of $1,675 and $2,586	167,988	169,418
Inventories	202,192	205,877
Refundable income taxes	3,979	4,668
Prepaid expenses and other current assets	35,071	63,673
Total current assets	417,349	448,359
Property, plant and equipment, net of accumulated depreciation of $759,453 and $731,561	437,456	415,711
Investments in joint ventures	10,632	11,532
Goodwill	168,946	168,065
Intangibles, net of accumulated amortization of $2,956 and $3,476	4,027	4,358
Deferred income taxes	28,528	30,333
Other assets	25,684	26,459
Total assets	1,092,622	1,104,817
Current liabilities:
Short-term borrowings	1,234	1,139
Accounts payable	100,386	128,495
Accrued payroll and related liabilities	21,054	46,410
Environmental liabilities	5,769	6,682
Other accrued liabilities	48,495	71,951
Total current liabilities	176,938	254,677
Deferred income taxes	20,343	11,742
Long-term debt, net of current maturities	140,895	106,237
Environmental liabilities, net of current portion	45,512	47,150
Other long-term liabilities	15,230	14,901
Total liabilities	398,918	434,707
Commitments and contingencies (Note 5)
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	32,742	36,929
Retained earnings	668,933	639,684
Accumulated other comprehensive loss	(39,423)	(37,237)
Total SSI shareholders’ equity	689,028	666,078
Noncontrolling interests	4,676	4,032
Total equity	693,704	670,110
Total liabilities and equity	1,092,622	1,104,817
Class A Common Stock
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity:
Common stock, value	26,576	26,502
Class B Common Stock
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity:
Common stock, value	$ 200	$ 200

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2019	Aug. 31, 2018
Current assets:
Accounts receivable, allowance for doubtful accounts	$ 1,675	$ 2,586
Property, plant and equipment, accumulated depreciation	759,453	731,561
Intangibles, accumulated amortization	$ 2,957	$ 3,476
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	26,576,000	26,502,000
Common stock, shares outstanding	26,576,000	26,502,000
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	200,000
Common stock, shares outstanding	200,000	200,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018
Income Statement [Abstract]
Revenues		$ 547,396	$ 652,416	$ 1,584,981	$ 1,695,138
Operating expense:
Cost of goods sold		474,598	549,164	1,379,418	1,427,877
Selling, general and administrative		48,575	54,185	139,483	158,866
(Income) from joint ventures		(311)	(772)	(980)	(1,328)
Asset impairment charges (recoveries), net		0	(1,465)	63	(1,553)
Restructuring charges and other exit-related activities		75	70	813	261
Operating income		24,459	51,234	66,184	111,015
Interest expense		(2,294)	(2,483)	(6,267)	(6,823)
Other income, net		29	403	373	1,353
Income from continuing operations before income taxes		22,194	49,154	60,290	105,545
Income tax expense		(5,762)	(10,650)	(13,733)	(6,030)
Income from continuing operations		16,432	38,504	46,557	99,515
Income (loss) from discontinued operations, net of tax		8	(56)	(202)	72
Net income		16,440	38,448	46,355	99,587
Net income attributable to noncontrolling interests		(750)	(1,046)	(1,585)	(2,806)
Net income attributable to SSI		$ 15,690	$ 37,402	$ 44,770	$ 96,781
Net income per share attributable to SSI Basic:
Income per share from continuing operations attributable to SSI (in dollars per share)		$ 0.57	$ 1.35	$ 1.63	$ 3.49
Loss per share from discontinued operations attributable to SSI (in dollars per share)		0	0	(0.01)	0
Net income per share attributable to SSI (in dollars per share)	[1]	0.57	1.35	1.63	3.49
Net income per share attributable to SSI Diluted:
Income per share from continuing operations attributable to SSI (in dollars per share)		0.56	1.31	1.60	3.38
Loss per share from discontinued operations attributable to SSI (in dollars per share)		0	0	(0.01)	0
Net income per share attributable to SSI (in dollars per share)		$ 0.56	$ 1.31	$ 1.59	$ 3.38
Weighted average number of common shares:
Basic (shares)		27,510	27,676	27,548	27,719
Diluted (Shares)		28,074	28,636	28,184	28,646
Dividends declared per common share (in dollars per share)		$ 0.1875	$ 0.1875	$ 0.5625	$ 0.5625
[1]	May not foot due to rounding.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 16,440	$ 38,448	$ 46,355	$ 99,587
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,838)	(414)	(2,570)	(2,006)
Pension obligations, net	142	174	384	30
Total other comprehensive loss, net of tax	(1,696)	(240)	(2,186)	(1,976)
Comprehensive income	14,744	38,208	44,169	97,611
Less comprehensive income attributable to noncontrolling interests	(750)	(1,046)	(1,585)	(2,806)
Comprehensive income attributable to SSI	$ 13,994	$ 37,162	$ 42,584	$ 94,805

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total SSI Shareholders’ Equity	Noncontrolling Interests	Class A Common Stock	Class A Common StockCommon Stock	Class B Common Stock	Class B Common StockCommon Stock
Beginning balance (in shares) at Aug. 31, 2017								26,859		200
Beginning balance at Aug. 31, 2017	$ 537,493	$ 38,050	$ 503,770	$ (35,293)	$ 533,586	$ 3,907		$ 26,859		$ 200
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	99,587	0	96,781	0	96,781	2,806		0		0
Other comprehensive loss, net of tax	(1,976)	0	0	(1,976)	(1,976)	0		0		0
Reclassification of stranded tax effects of the Tax Cuts and Jobs Act	517	0	517	0	517	0		0		0
Distributions to noncontrolling interests	(1,709)	0	0	0	0	(1,709)		$ 0		$ 0
Share repurchase (in shares)								(266)		0
Share repurchases	(8,778)	(8,512)	0	0	(8,778)	0		$ (266)		$ 0
Issuance of restricted stock (in shares)								257		0
Issuance of restricted stock	0	(257)	0	0	0	0		$ 257		$ 0
Restricted stock withheld for taxes (in shares)								(101)		0
Restricted stock withheld for taxes	(3,030)	(2,929)	0	0	(3,030)	0		$ (101)		$ 0
Share-based compensation expense	13,815	13,815	0	0	13,815	0		0		0
Purchase of noncontrolling interest	(600)	0	(183)	0	(183)	(417)		0		0
Cash dividends	(15,757)	0	(15,757)	0	(15,757)	0		$ 0		$ 0
Ending balance (in shares) at May. 31, 2018								26,749		200
Ending balance at May. 31, 2018	619,562	40,167	585,128	(37,269)	614,975	4,587		$ 26,749		$ 200
Beginning balance (in shares) at Feb. 28, 2018								26,906		200
Beginning balance at Feb. 28, 2018	587,096	39,609	552,977	(37,029)	582,663	4,433		$ 26,906		$ 200
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	38,448		37,402		37,402	1,046
Other comprehensive loss, net of tax	(240)			(240)	(240)
Distributions to noncontrolling interests	(892)					(892)
Share repurchase (in shares)								(166)
Share repurchases	(5,177)	(5,011)			(5,177)			$ (166)
Issuance of restricted stock (in shares)								13
Issuance of restricted stock		(13)						$ 13
Restricted stock withheld for taxes (in shares)								(4)
Restricted stock withheld for taxes	(142)	(138)			(142)			$ (4)
Share-based compensation expense	5,720	5,720			5,720
Cash dividends	(5,251)		(5,251)		(5,251)
Ending balance (in shares) at May. 31, 2018								26,749		200
Ending balance at May. 31, 2018	619,562	40,167	585,128	(37,269)	614,975	4,587		$ 26,749		$ 200
Beginning balance (in shares) at Aug. 31, 2018							26,502	26,502	200	200
Beginning balance at Aug. 31, 2018	670,110	36,929	639,684	(37,237)	666,078	4,032		$ 26,502		$ 200
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	46,355	0	44,770	0	44,770	1,585				0
Other comprehensive loss, net of tax	(2,186)	0	0	(2,186)	(2,186)	0				0
Reclassification of stranded tax effects of the Tax Cuts and Jobs Act								$ 0		0
Distributions to noncontrolling interests	(941)	0	0	0	0	(941)				$ 0
Share repurchase (in shares)								(413)		0
Share repurchases	(10,087)	(9,674)	0	0	(10,087)	0		$ (413)		$ 0
Issuance of restricted stock (in shares)								765		0
Issuance of restricted stock	0	(765)	0	0	0	0		$ 765		$ 0
Restricted stock withheld for taxes (in shares)								(278)		0
Restricted stock withheld for taxes	(7,463)	(7,185)	0	0	(7,463)	0		$ (278)		$ 0
Share-based compensation expense	13,437	13,437	0	0	13,437	0				0
Cash dividends	(15,521)	0	(15,521)	0	(15,521)	0				$ 0
Ending balance (in shares) at May. 31, 2019							26,576	26,576	200	200
Ending balance at May. 31, 2019	693,704	32,742	668,933	(39,423)	689,028	4,676		$ 26,576		$ 200
Beginning balance (in shares) at Feb. 28, 2019								26,575		200
Beginning balance at Feb. 28, 2019	680,847	29,135	658,424	(37,727)	676,607	4,240		$ 26,575		$ 200
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,440		15,690		15,690	750
Other comprehensive loss, net of tax	(1,696)			(1,696)	(1,696)
Distributions to noncontrolling interests	(314)					(314)
Issuance of restricted stock (in shares)								2
Issuance of restricted stock		(2)						$ 2
Restricted stock withheld for taxes (in shares)								(1)
Restricted stock withheld for taxes	(21)	(20)			(21)			$ (1)
Share-based compensation expense	3,629	3,629			3,629
Cash dividends	(5,181)		(5,181)		(5,181)
Ending balance (in shares) at May. 31, 2019							26,576	26,576	200	200
Ending balance at May. 31, 2019	$ 693,704	$ 32,742	$ 668,933	$ (39,423)	$ 689,028	$ 4,676		$ 26,576		$ 200

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 31, 2019	May 31, 2018
Cash flows from operating activities:
Net income	$ 46,355	$ 99,587
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	39,644	37,009
Asset impairment charges (recoveries), net	63	(1,553)
Exit-related asset impairments	23	0
Inventory write-downs	775	38
Share-based compensation expense	13,437	13,815
Deferred income taxes	9,402	(9,791)
Undistributed equity in earnings of joint ventures	(980)	(1,328)
Loss on disposal of assets, net	252	203
Unrealized foreign exchange loss (gain), net	86	(180)
Bad debt expense, net	63	307
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(9,779)	(61,557)
Inventories	14,832	(58,047)
Income taxes	689	(998)
Prepaid expenses and other current assets	(3,258)	(7,249)
Other long-term assets	735	(1,512)
Accounts payable	(19,482)	26,257
Accrued payroll and related liabilities	(25,315)	2,346
Other accrued liabilities	(3,811)	9,328
Environmental liabilities	(2,637)	2,634
Other long-term liabilities	(4)	3,307
Distributed equity in earnings of joint ventures	1,942	1,025
Net cash provided by operating activities	63,032	53,641
Cash flows from investing activities:
Capital expenditures	(61,000)	(46,096)
Acquisitions	(1,553)	(2,300)
Joint venture receipts, net	641	4
Proceeds from sale of assets	1,641	3,397
Deposit on land option	1,260	0
Net cash used in investing activities	(59,011)	(44,995)
Cash flows from financing activities:
Borrowings from long-term debt	316,676	426,480
Repayments of long-term debt	(282,932)	(402,153)
Payment of debt issuance costs	(102)	0
Repurchases of Class A common stock	(10,087)	(8,778)
Taxes paid related to net share settlement of share-based payment awards	(7,463)	(3,030)
Distributions to noncontrolling interests	(941)	(1,709)
Purchase of noncontrolling interest	0	(600)
Dividends paid	(15,600)	(15,721)
Net cash used in financing activities	(449)	(5,511)
Effect of exchange rate changes on cash	(176)	(332)
Net increase in cash and cash equivalents	3,396	2,803
Cash and cash equivalents as of beginning of period	4,723	7,287
Cash and cash equivalents as of end of period	8,119	10,090
Cash paid during the year for:
Interest	4,831	5,923
Income taxes paid, net	3,436	13,785
Schedule of noncash investing and financing transactions:
Purchases of property, plant and equipment included in current liabilities	$ 9,839	$ 8,105

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	May 31, 2019
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 fiscal year ended August 31, 2018 . The results for the three and nine months ended May 31, 2019 and 2018 are not necessarily indicative of the results of operations for the entire fiscal year. Accounting Changes As of the beginning of the first quarter of fiscal 2019, the Company adopted an accounting standards update initially issued in May 2014 that clarifies the principles for recognizing revenue from contracts with customers. The core principle of the new guidance is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The Company adopted the new revenue accounting standard using the modified retrospective approach, which requires recognition of the cumulative effect of initially applying the new requirements as an adjustment to the opening balance of retained earnings in the period of initial application. Adoption of the new requirements did not change the timing of revenue recognition for the Company compared to the previous guidance, and the Company recorded no cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2018. The Company identified certain scrap purchase and sale arrangements for which it recognized revenue for the gross amount of consideration it expected to be entitled to from the customer (as principal) under the previous revenue guidance, but for which under the new revenue standard it recognizes revenue as the net amount of consideration that it expects to retain after paying the scrap metal supplier (as agent). The foregoing change in the classification of the cost of scrap metal purchased under such arrangements has the effect of reducing the amount of revenue and cost of goods sold reported in the financial statements, while having no impact on net income. If the Company had continued using the accounting guidance in effect before the adoption of the new revenue accounting standard, its consolidated revenues for the three and nine months ended May 31, 2019 would have been higher by approximately $8 million and $21 million , respectively, or 1% for each period, and its consolidated cost of goods sold would have been higher by the same amounts, respectively. No other line items in the consolidated financial statements were materially impacted by adoption of the new requirements. Comparative prior period amounts and disclosures continue to be reported in accordance with guidance in effect prior to the date of adoption. See Note 7 - Revenue for the disclosures required under the new standard. As of the beginning of the first quarter of fiscal 2019, the Company adopted an accounting standards update that amends certain aspects of the reporting model for financial instruments. The most pertinent amendment to the Company is that an entity may choose to measure certain equity investments that do not have readily determinable fair values at cost minus impairment, plus or minus changes resulting from observable price changes. The amendments also require a qualitative assessment to identify impairment of equity investments without readily determinable fair values. Adoption of the requirements had no impact on the Company’s consolidated financial position, results of operations and cash flows. 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 $25 million and $28 million as of May 31, 2019 and August 31, 2018 , respectively. Accounts Receivable, net Accounts receivable represent amounts primarily due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for doubtful accounts, are recorded at the invoiced amount and do not bear interest. The Company extends credit to customers under contracts containing customary and explicit payment terms, and payment is generally required within 30 days of shipment. Nonferrous export sales typically require a deposit prior to shipment. Historically, almost all of the Company’s ferrous export sales have been made with letters of credit. Domestic ferrous metal sales, nonferrous metal sales and finished steel sales are generally made on open account, and the majority of these sales are covered by credit insurance. The Company evaluates the collectibility of its accounts receivable based on a combination of factors, including whether sales were made pursuant to letters of credit or credit insurance is in place. In cases where management is aware of circumstances that may impair a customer’s ability to meet its financial obligations, management records a specific allowance against amounts due and reduces the receivable to the amount the Company believes will be collected. For all other customers, the Company maintains an allowance that considers the total receivables outstanding, historical collection rates and economic trends. Accounts are written off when all efforts to collect have been exhausted. Also included in accounts receivable are short-term advances to scrap metal suppliers used as a mechanism to acquire unprocessed scrap metal. The advances are generally repaid with scrap metal, as opposed to cash. Repayments of advances with scrap metal are treated as noncash operating activities in the Unaudited Condensed Consolidated Statements of Cash Flows and totaled $12 million and $11 million for the nine months ended May 31, 2019 and 2018, respectively. Prepaid Expenses The Company’s prepaid expenses totaled $15 million and $22 million as of May 31, 2019 and August 31, 2018 , respectively, and consisted primarily of prepaid insurance, prepaid services and deposits on capital purchases. Other Assets The Company’s other assets, exclusive of prepaid expenses, consist primarily of receivables from insurers, spare parts, an equity investment, debt issuance costs, and notes and other contractual receivables. Other assets are reported within either prepaid expenses and other current assets or other assets in the Unaudited Condensed Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. Receivables from insurers totaled $16 million and $36 million as of May 31, 2019 and August 31, 2018 , respectively, with the decrease in fiscal 2019 resulting from the settlement of a contingent loss recorded during fiscal 2018 in connection with lawsuits arising from a motor vehicle collision for which the Company had insurance coverage. See “Contingencies – Other” in Note 5 – Commitments and Contingencies for further discussion of the contingent loss and subsequent settlements in fiscal 2019 . The Company invested $6 million in the equity of a privately-held waste and recycling entity in fiscal 2017. The equity investment does not have a readily determinable fair value and, therefore, is carried at cost and adjusted for impairments and observable price changes. The investment is presented as part of the Auto and Metals Recycling (“AMR”) reportable segment and reported within other assets in the Unaudited Condensed Consolidated Balance Sheets. The carrying value of the investment was $6 million as of May 31, 2019 and August 31, 2018 . The Company has not recorded any impairments or upward or downward adjustments to the carrying value of the investment since acquisition. 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 nine months ended May 31, 2018, the Company recognized accelerated depreciation of $1 million due to shortening the useful lives of decommissioned machinery and equipment assets in the Cascade Steel and Scrap (“CSS”) reportable segment, which is reported within asset impairment charges (recoveries), net in the Unaudited Condensed Consolidated Statements of Income. Also, during the three and nine months ended May 31, 2018, the Company sold previously impaired assets consisting primarily of machinery and equipment, recognizing a gain of $2 million and $3 million , respectively, which are reported within asset impairment charges (recoveries), net in the Unaudited Condensed Consolidated Statements of Income. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable, and notes and other contractual receivables. The majority of cash and cash equivalents is maintained with major financial institutions. Balances with these and certain other institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of May 31, 2019 . 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, limits, 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 $75 million and $58 million of open letters of credit as of May 31, 2019 and August 31, 2018 , respectively.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	May 31, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, an accounting standard was issued that will supersede the existing lease standard and require 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. Additional updates have been issued since February 2016 amending aspects of the initial update, including providing an additional and optional transition method for adoption. This standard is effective for the Company beginning in fiscal 2020, including interim periods within that fiscal year. The Company expects to initially apply the requirements by recognizing a cumulative-effect adjustment, if any, to the opening balance of retained earnings in the period of adoption. The Company is in the process of analyzing its population of leases within the scope of the new accounting standard and documenting salient lease terms to support the initial and subsequent measurement of lease liabilities and lease assets. The Company is also assessing and implementing changes to its processes, systems, and internal controls as a result of the new guidance. The Company is evaluating the impact of adopting this standard on its financial position, results of operations, cash flows and disclosures, and it expects to recognize a material amount of lease assets and liabilities on its consolidated balance sheet upon adoption.

Inventories

Inventories	9 Months Ended
	May 31, 2019
Inventory, Net [Abstract]
Inventories	Inventories Inventories consisted of the following (in thousands): May 31, 2019 August 31, 2018 Processed and unprocessed scrap metal $ 90,839 $ 111,658 Semi-finished goods 9,293 15,551 Finished goods 58,554 39,809 Supplies 43,506 38,859 Inventories $ 202,192 $ 205,877

Goodwill

Goodwill	9 Months Ended
	May 31, 2019
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 nine months of fiscal 2019 requiring an interim goodwill impairment test. As of May 31, 2019 and August 31, 2018 , all but $1 million of the Company’s goodwill was carried by a single reporting unit within AMR. The gross change in the carrying amount of goodwill for the nine months ended May 31, 2019 was as follows (in thousands): Goodwill August 31, 2018 $ 168,065 Acquisition 1,575 Foreign currency translation adjustment (694 ) May 31, 2019 $ 168,946 In the second quarter of fiscal 2019, the Company acquired certain assets of an auto recycling business in northern California for $2 million . The acquisition qualified as a business combination under the accounting rules and resulted in the recognition of $2 million of goodwill during the second quarter of fiscal 2019. The Company allocated the acquired goodwill to the reporting unit within the AMR operating segment which carries nearly all of the Company’s goodwill. Accumulated goodwill impairment charges were $471 million as of May 31, 2019 and August 31, 2018 .

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	May 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contingencies - Environmental The Company evaluates the adequacy of its environmental liabilities on a quarterly basis. Adjustments to the liabilities are made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or expenditures are made for which liabilities were established. Changes in the Company’s environmental liabilities for the nine months ended May 31, 2019 were as follows (in thousands): Balance as of August 31, 2018 Liabilities Established (Released), Net Payments and Other Balance as of May 31, 2019 Short-Term Long-Term $ 53,832 $ 292 $ (2,843 ) $ 51,281 $ 5,769 $ 45,512 Recycling Operations As of May 31, 2019 and August 31, 2018 , the Company’s recycling operations had environmental liabilities of $51 million and $54 million , respectively, for the potential remediation of locations where it has conducted business or has environmental liabilities from historical or recent activities. The liabilities relate to the investigation and potential future remediation of contaminated sediments and riverbanks, soil contamination, groundwater contamination, storm water runoff issues and other natural resource damages. Except for Portland Harbor and certain liabilities discussed under Other Legacy Environmental Loss Contingencies immediately below, such liabilities were not individually material at any site. 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 cleanup of any specific areas within the Site, the parties to be involved, the timing of any specific remedial action and the allocation of the costs for any cleanup among responsible parties have not yet been determined. The process of site investigation, remedy selection, identification of additional PRPs and allocation of costs has been underway for a number of years, but significant uncertainties remain. 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 was 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 LWG has indicated that it had incurred over $115 million in investigation-related costs over an approximately 10 year period working on the RI/FS. Following submittal of draft RI and FS documents which the EPA largely rejected, the EPA took over the RI/FS process. The Company has joined with approximately 100 other PRPs, including the LWG members, in a voluntary process to establish an allocation of costs at the Site, including the costs incurred by the LWG in the RI/FS process. The LWG members have also commenced federal court litigation, which has been stayed, seeking to bring additional parties into the allocation process. In January 2008, the Portland Harbor Natural Resource Trustee Council (“Trustee Council”) invited the Company and other PRPs to participate in funding and implementing the Natural Resource Injury Assessment for the Site. Following meetings among the Trustee Council and the PRPs, funding and participation agreements were negotiated under which the participating PRPs, including the Company, agreed to fund the first phase of the three-phase natural resource damage assessment. Phase 1, which included the development of the Natural Resource Damage Assessment Plan (“AP”) and implementation of several early studies, was substantially completed in 2010. In December 2017, the Company joined with other participating PRPs in agreeing to fund Phase 2 of the natural resource damage assessment, which includes the implementation of the AP to develop information sufficient to facilitate early settlements between the Trustee Council and Phase 2 participants and the identification of restoration projects to be funded by the settlements. In late May 2018, the Trustee Council published notice of its intent to proceed with Phase 3, which will involve the full implementation of the AP and the final injury and damage determination. The Company is proceeding with the process established by the Trustee Council regarding early settlements under Phase 2. It is uncertain whether the Company will enter into an early settlement for natural resource damages or what costs it may incur in any such early settlement. On January 30, 2017, one of the Trustees, the Confederated Tribes and Bands of the Yakama Nation, which withdrew from the council in 2009, filed a suit against approximately 30 parties, including the Company, seeking reimbursement of certain past and future response costs in connection with remedial action at the Site and recovery of assessment costs related to natural resources damages from releases at and from the Site to the Multnomah Channel and the Lower Columbia River. The parties have filed various motions to dismiss or stay this suit, which motions are pending. The Company intends to defend against the claims in this suit and does not have sufficient information to determine the likelihood of a loss in this matter or to estimate the amount of damages being sought or the amount of such damages that could be allocated to the Company. Estimates of the cost of remedial action for the cleanup of the in-river portion of the Site have varied widely in various drafts of the FS and in the EPA’s final FS issued in June 2016 ranging from approximately $170 million to over $2.5 billion (net present value), depending on the remedial alternative and a number of other factors. In comments submitted to the EPA, the Company and certain other stakeholders identified a number of serious concerns regarding the EPA’s risk and remedial alternatives assessments, cost estimates, scheduling assumptions and conclusions regarding the feasibility and effectiveness of remediation technologies. In January 2017, the EPA issued a Record of Decision (“ROD”) that identified the selected remedy for the Site. The selected remedy is a modified version of one of the alternative remedies evaluated in the EPA’s FS that was expanded to include additional work at a greater cost. The EPA has estimated the total cost of the selected remedy at $1.7 billion with a net present value cost of $1.05 billion (at a 7% discount rate) and an estimated construction period of 13 years following completion of the remedial designs. In the ROD, the EPA stated that the cost estimate is an order-of-magnitude engineering estimate that is expected to be within + 50% to -30% of the actual project cost and that changes in the cost elements are likely to occur as a result of new information and data collected during the engineering design. The Company has identified a number of concerns regarding the remedy described in the ROD, which is based on data that is more than a decade old, and the EPA’s estimates for the costs and time required to implement the selected remedy. Because of ongoing questions regarding cost effectiveness, technical feasibility, and the use of stale data, it is uncertain whether the ROD will be implemented as issued. In addition, the ROD did not determine or allocate the responsibility for remediation costs among the PRPs. In the ROD, the EPA acknowledged that much of the data used in preparing the ROD was more than a decade old and would need to be updated with a new round of “baseline” sampling to be conducted prior to the remedial design phase. Accordingly, the ROD provided for additional pre-remedial design investigative work and baseline sampling to be conducted in order to provide a baseline of current conditions and delineate particular remedial actions for specific areas within the Site. This additional sampling needs to occur prior to proceeding with the next phase in the process which 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. Moreover, the ROD provided only Site-wide cost estimates and did not provide sufficient detail to estimate costs for specific sediment management areas within the Site. Following issuance of the ROD, EPA proposed that the PRPs, or a subgroup of PRPs, perform the additional investigative work identified in the ROD under a new consent order. In December 2017, the Company and three other PRPs entered into a new Administrative Settlement Agreement and Order on Consent with EPA to perform such pre-remedial design investigation and baseline sampling over a two year period. The Company estimated that its share of the costs of performing such work would be approximately $2 million , which it recorded to environmental liabilities and selling, general and administrative expense in the consolidated financial statements in the first quarter of fiscal 2018. The Company believes that such costs will be fully covered by existing insurance coverage and, thus, also recorded an insurance receivable for $2 million in the first quarter of fiscal 2018, resulting in no net impact to the Company’s consolidated results of operations in that period. As of May 31, 2019 and August 31, 2018 , the Company’s loss contingencies include $1 million and $2 million , respectively, for its estimated share of the costs of the investigation, including pre-remedial design investigative activities. The pre-remedial design investigation and baseline sampling work has been completed, and the report evaluating the data was submitted to EPA on June 17, 2019. The evaluation report concludes that Site conditions have improved substantially since the data forming the basis of the ROD was collected over a decade ago. The analysis contained in the report has significant implications for remedial design and remedial action at the Site. The report is subject to review and comment by EPA. EPA has stated that it wants PRPs to step forward (individually or in groups) to enter into consent agreements to perform remedial design covering the entire Site and has proposed dividing the Site into eight to ten subareas for remedial design. EPA has indicated that it may pursue enforcement or other actions against PRPs in areas where good-faith negotiations to perform remedial design are not underway by June 30, 2019. The Company is engaged in good-faith negotiations with EPA with respect to potentially performing remedial design; but it is unclear whether the Company will reach agreement with EPA, and the timing for completion of remedial design is uncertain. Except for certain early action projects in which the Company is not involved, remediation activities are not expected to commence for a number of years. In addition, as discussed above, responsibility for implementing and funding the remedy will be determined in a separate allocation process. The Company does not expect the next major stage of the allocation process to proceed until early 2020. Because there has not been a determination of the specific remediation actions that will be required, the amount of natural resource damages or the allocation of costs of the investigations and any remedy and natural resource damages 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 (including the pre-remedial design investigative activities), remedial design, remedial action 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 Oregon Department of Environmental Quality is separately providing oversight of voluntary investigations and source control activities 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 Legacy Environmental Loss Contingencies The Company’s environmental loss contingencies as of May 31, 2019 and August 31, 2018 , other than Portland Harbor, include actual or possible investigation and cleanup costs from historical contamination at sites formerly operated by the Company or at other sites where the Company may have responsibility for such costs due to past disposal or other activities (“legacy environmental loss contingencies”). These legacy environmental loss contingencies relate to the potential remediation of waterways and soil and groundwater contamination and may also involve natural resource damages, governmental fines and penalties and claims by third parties for personal injury and property damage. The Company has been notified that it is or may be a potentially responsible party at certain of these sites, and investigation and cleanup activities are ongoing or may be required in the future. The Company recognizes a liability for such matters when the loss is probable and can be reasonably estimated. When investigation and cleanup activities are ongoing or where the Company has not yet been identified as having responsibility or the contamination has not yet been identified, it is reasonably possible that the Company may need to recognize additional liabilities in connection with such sites but the Company cannot currently reasonably estimate the possible loss or range of loss absent additional information or developments. Such additional liabilities, individually or in the aggregate, may have a material adverse effect on the Company’s results of operations, financial condition or cash flows. During the first quarter of fiscal 2018, the Company accrued $4 million in expense at its Corporate division for the estimated costs related to remediation of shredder residue disposed of in or around the 1970s at third-party sites located near each other. Investigation activities have been conducted under oversight of the applicable state regulatory agency. As of May 31, 2019 and August 31, 2018 , the Company had $4 million accrued for this matter. It is reasonably possible that the Company may recognize additional liabilities in connection with this matter at the time such losses are probable and can be reasonably estimated. The Company currently estimates a range of reasonably possible losses related to this matter in excess of current accruals at between zero and $28 million based on a range of remedial alternatives and subject to development and approval by regulators of a specific remedy implementation plan. The Company is investigating whether a portion or all of the current and future losses related to this matter, if incurred, are covered by existing insurance coverage or may be offset by contributions from other responsible parties. In addition, the Company’s loss contingencies as of May 31, 2019 and August 31, 2018 include $7 million and $6 million , respectively, for the estimated costs related to remediation of soil and groundwater conditions, including penalties, in connection with a closed facility owned and previously operated by an indirect, wholly-owned subsidiary. Investigation activities have been conducted under the oversight of the applicable state regulatory agency, and the Company has also been working with local officials with respect to the protection of public water supplies. It is reasonably possible that the Company may recognize additional liabilities, including penalties, in connection with this matter at the time such additional losses are probable and can be reasonably estimated. However, the Company cannot reasonably estimate at this time the possible loss or range of possible losses associated with this matter pending completion of on-going studies and determination of remediation plans and pending further negotiations to settle the related enforcement matter. Steel Manufacturing Operations The Company’s steel manufacturing operations had no known environmental liabilities as of May 31, 2019 and August 31, 2018 . The steel mill’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 firms that apply treatments that allow for the ultimate disposal of the EAF dust. The Company’s steel mill 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 approximately 950 thousand tons. The Company’s permit was first issued in 1998 and has since been renewed through February 1, 2018. The permit renewal process occurs every five years , and the renewal process is underway; however, the existing permit is extended by administrative rule until the current renewal process is finalized. Summary - Environmental Contingencies With respect to environmental contingencies other than the Portland Harbor Superfund site and the other legacy environmental loss contingencies, which are discussed separately 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 Company’s consolidated financial statements as a whole. Historically, the amounts the Company has ultimately paid for such remediation activities have not been material in any given period, but there can be no assurance that such amounts paid will not be material in the future. Contingencies - Other Schnitzer Southeast, LLC (a wholly-owned subsidiary of the Company, “SSE”), an SSE employee, the Company and one of the Company’s insurance carriers had been named as defendants in five separate wrongful death lawsuits filed in the State of Georgia arising from an accident in 2016 in Alabama involving a tractor trailer driven by the SSE employee and owned by SSE. In the first quarter of fiscal 2019, the Company settled two of the five lawsuits for a total of $20 million , which amount has been paid and was substantially covered by insurance. In addition to amounts accrued for the two lawsuits settled and paid in the first quarter of fiscal 2019, the Company accrued $10 million reflecting its estimate of the probable loss related to the three unresolved lawsuits and recorded a $10 million insurance receivable in fiscal 2018, resulting in no net impact to the Company’s consolidated results of operations. It is reasonably possible that the Company may recognize additional losses in connection with these unresolved lawsuits at the time such additional losses are probable and can be reasonably estimated. Such additional losses may be material to the Company’s consolidated financial statements. To the extent that circumstances change and the Company determines that an additional loss is reasonably possible, can be reasonably estimated, and is material, the Company would then disclose an estimate of the additional possible loss or range of loss. The Company believes that such additional losses, if incurred, would be substantially covered by existing insurance coverage. The Company is a party to various legal proceedings arising in the normal course of business. The Company recognizes a liability for such matters when the loss is probable and can be reasonably estimated. 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.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	May 31, 2019
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, comprise the following (in thousands): Three Months Ended May 31, 2019 Three Months Ended May 31, 2018 Foreign Currency Translation Adjustments Pension Obligations, Net Total Foreign Currency Translation Adjustments Pension Obligations, Net Total Balances - March 1 (Beginning of period) $ (34,861 ) $ (2,866 ) $ (37,727 ) $ (33,420 ) $ (3,609 ) $ (37,029 ) Other comprehensive loss before reclassifications (1,838 ) — (1,838 ) (414 ) — (414 ) Income tax benefit — — — — — — Other comprehensive loss before reclassifications, net of tax (1,838 ) — (1,838 ) (414 ) — (414 ) Amounts reclassified from accumulated other comprehensive loss — 184 184 — 225 225 Income tax benefit — (42 ) (42 ) — (51 ) (51 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 142 142 — 174 174 Net periodic other comprehensive income (loss) (1,838 ) 142 (1,696 ) (414 ) 174 (240 ) Balances - May 31 (End of period) $ (36,699 ) $ (2,724 ) $ (39,423 ) $ (33,834 ) $ (3,435 ) $ (37,269 ) Nine Months Ended May 31, 2019 Nine Months Ended May 31, 2018 Foreign Currency Translation Adjustments Pension Obligations, Net Total Foreign Currency Translation Adjustments Pension Obligations, Net Total Balances - September 1 (Beginning of period) $ (34,129 ) $ (3,108 ) $ (37,237 ) $ (31,828 ) $ (3,465 ) $ (35,293 ) Other comprehensive income (loss) before reclassifications (2,570 ) 208 (2,362 ) (2,006 ) (185 ) (2,191 ) Income tax (expense) benefit — (46 ) (46 ) — 227 227 Other comprehensive income (loss) before reclassifications, net of tax (2,570 ) 162 (2,408 ) (2,006 ) 42 (1,964 ) Amounts reclassified from accumulated other comprehensive loss — 288 288 — 365 365 Income tax benefit — (66 ) (66 ) — (377 ) (377 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 222 222 — (12 ) (12 ) Net periodic other comprehensive income (loss) (2,570 ) 384 (2,186 ) (2,006 ) 30 (1,976 ) Balances - May 31 (End of period) $ (36,699 ) $ (2,724 ) $ (39,423 ) $ (33,834 ) $ (3,435 ) $ (37,269 ) In the second quarter of fiscal 2018, the Company adopted an accounting standard update that allows for a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”) enacted on December 22, 2017. Reclassifications from AOCI to retained earnings for stranded tax effects in the second quarter of fiscal 2018, both individually and in the aggregate, were not material. Reclassifications from AOCI to earnings, both individually and in the aggregate, were not material to the impacted captions in the Unaudited Condensed Consolidated Statements of Income for all periods presented.

Revenue

Revenue	9 Months Ended
	May 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. Nearly all of these promises, referred to as performance obligations, consist of the transfer of physical goods, including ferrous and nonferrous recycled scrap metal, autobodies, auto parts, and finished steel products, to customers. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. For example, the Company recognizes revenue on partially loaded bulk shipments of ferrous recycled scrap metal when contractual terms support revenue recognition based on transfer of title and risk of loss. The significant majority of the Company’s sales involve transfer of control to the customer, and thus revenue recognition, before delivery to the customer’s destination; for example, upon release of the goods to the shipper. Shipping and handling activities that occur after a customer has obtained control of a good are accounted for as fulfillment costs rather than an additional promise in a contract. As such, shipping and handling consideration (freight revenue) is recognized when control of the goods transfers to the customer, and freight expense is accrued when the related revenue is recognized. In certain regional markets, the Company enters into contracts whereby it arranges for, or brokers, the transfer of scrap material between scrap suppliers and end customers. For transactions in which the Company obtains substantive control of the scrap material before the goods are transferred to the end customer, for example by arranging for the processing or warehousing of the material, the Company recognizes revenue equal to the gross amount of the consideration it expects to receive from the customer (as principal). Alternatively, for transactions in which the Company does not obtain substantive control of the scrap material before the product is transferred to the end customer, the Company recognizes revenue equal to the net amount of the consideration it expects to retain after paying the supplier for the purchase of the scrap metal (as agent). The Company is the agent in the transaction for the substantial majority of brokerage arrangements. Nearly all of the Company’s sales contracts reflect market pricing at the time the contract is executed, are one year or less, and generally provide for shipment within 30 to 60 days after the price has been agreed upon with the customer. The Company’s retail auto parts sales are at listed prices and are recognized at the point of sale. The Company recognizes revenue based on contractually stated selling prices and quantities shipped, adjusted for estimated claims and discounts. Claims are customary in the recycled scrap metal industry and arise from variances in the quantity or quality of delivered products. Revenue adjustments may be required if the settlement of claims exceeds original estimates. Discounts offered to certain finished steel customers qualify as variable consideration as the discounts are contingent upon future events. Variable consideration arising from discounts is recognized upon the transfer of finished steel products to customers based upon either the expected value or the most likely amount and was not material for the three and nine months ended May 31, 2019 . The Company experiences very few sales returns and, therefore, no material provisions for returns have been made when sales are recognized. During the three and nine months ended May 31, 2019 , revenue adjustments related to performance obligations that were satisfied in previous periods were not material. Disaggregation of Revenues The table below illustrates the Company’s revenues disaggregated by major product and sales destination for each reportable segment (in thousands): Three Months Ended May 31, 2019 AMR CSS Intersegment Revenues Total Revenues by major product: Ferrous $ 280,362 $ 14,208 $ (2,697 ) $ 291,873 Nonferrous 112,785 10,376 (329 ) 122,832 Steel — 96,626 — 96,626 Retail and other 35,876 221 (32 ) 36,065 Total revenues $ 429,023 $ 121,431 $ (3,058 ) $ 547,396 Revenues based on sales destination: Foreign $ 273,128 $ 25,242 $ — $ 298,370 Domestic 155,895 96,189 (3,058 ) 249,026 Total revenues $ 429,023 $ 121,431 $ (3,058 ) $ 547,396 Nine Months Ended May 31, 2019 AMR CSS Intersegment Revenues Total Revenues by major product: Ferrous $ 836,662 $ 41,071 $ (7,846 ) $ 869,887 Nonferrous 316,450 28,522 (856 ) 344,116 Steel — 271,988 — 271,988 Retail and other 98,388 634 (32 ) 98,990 Total revenues $ 1,251,500 $ 342,215 $ (8,734 ) $ 1,584,981 Revenues based on sales destination: Foreign $ 753,696 $ 69,396 $ — $ 823,092 Domestic 497,804 272,819 (8,734 ) 761,889 Total revenues $ 1,251,500 $ 342,215 $ (8,734 ) $ 1,584,981 Receivables from Contracts with Customers The revenue accounting standard defines a receivable as an entity’s right to consideration that is unconditional, meaning that only the passage of time is required before payment is due. As of May 31, 2019 and August 31, 2018 , receivables from contracts with customers, net of an allowance for doubtful accounts, totaled $164 million representing 98% and 97% , respectively, of total accounts receivable reported on the Unaudited Condensed Consolidated Balance Sheets. Contract Liabilities Contract consideration received from a customer prior to revenue recognition is recorded as a contract liability and is recognized as revenue when the Company satisfies the related performance obligation under the terms of the contract. The Company’s contract liabilities consist almost entirely of customer deposits for recycled scrap metal sales contracts, which are reported within accounts payable on the Unaudited Condensed Consolidated Balance Sheets and totaled $3 million and $9 million as of May 31, 2019 and August 31, 2018 , respectively. Unsatisfied performance obligations reflected in these contract liabilities relate to contracts with original expected durations of one year or less. During the three and nine months ended May 31, 2019 , the Company reclassified less than $1 million and $8 million , respectively, in customer deposits as of August 31, 2018 to revenues as a result of satisfying performance obligations during the respective periods.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	May 31, 2019
Share-based Compensation [Abstract]
Share-based Compensation	Share-Based Compensation In the first quarter of fiscal 2019, 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 261,642 restricted stock units (“RSUs”) and 254,620 performance share awards to the Company’s key employees and officers under the Company’s 1993 Amended and Restated Stock Incentive Plan (“SIP”). The RSUs have a five-year term and vest 20% per year commencing on October 31, 2019. 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 $7 million . The compensation expense associated with the RSUs is recognized over the requisite service period of the awards, net of forfeitures, or to the date retirement eligibility is achieved (if before the end of the service period). The performance share awards comprise two separate and distinct awards with different vesting conditions. The Compensation Committee granted 123,812 performance share awards based on a relative Total Shareholder Return (“TSR”) metric over a performance period spanning November 15, 2018 to August 31, 2021. 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 $4 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 130,808 performance share awards have a three-year performance period consisting of the Company’s 2019, 2020 and 2021 fiscal years. The performance targets are based on the Company’s return on capital employed 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 $4 million . The compensation expense associated with performance share awards is recognized over the requisite service period of the awards, net of estimated forfeitures, or to the date a qualifying employment termination event entitles the recipient to a pro-rated award (if before the end of the service period). 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, 2021. In the second quarter of fiscal 2019, the Company granted deferred stock units (“DSUs”) to each of its non-employee directors under the Company’s SIP. Each DSU gives the director the right to receive one share of Class A common stock at a future date. The grant included an aggregate of 31,218 shares that will vest in full on the day before the Company’s 2020 annual meeting of shareholders, subject to continued Board service. The total value of these awards at the grant date was $1 million .

Income Taxes

Income Taxes	9 Months Ended
	May 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the President of the United States signed and enacted into law comprehensive tax legislation commonly referred to as the Tax Act, which, except for certain provisions, is effective for tax years beginning on or after January 1, 2018. The Tax Act’s primary change is a reduction in the federal statutory corporate tax rate from 35% to 21% , resulting in a pro rata reduction for the Company from 35% to 25.7% for fiscal 2018 and a full reduction to 21% for fiscal 2019. As a change in tax law is accounted for in the period of enactment, the Company recognized a discrete benefit of $7 million in the second quarter of fiscal 2018 due to the revaluation of U.S. net deferred tax liabilities to reflect the lower statutory rate. The Company’s effective tax rate in the third quarter and first nine months of fiscal 2018 also reflected application of the Tax Act’s lower federal statutory corporate tax rate to fiscal 2018 projected taxable income at the time. The Company’s accounting for the impacts of the Tax Act was complete as of November 30, 2018. Effective Tax Rate The Company’s effective tax rate from continuing operations for the third quarter and first nine months of fiscal 2019 was an expense of 26.0% and 22.8% , respectively, compared to an expense of 21.7% and 5.7% , respectively, for the comparable prior year periods. The effective tax rate from continuing operations for the first nine months of fiscal 2018 was lower than the federal statutory rate of 25.7% primarily due to the lower projected annual effective tax rate applied to quarterly results and discrete benefits recorded in the second quarter of fiscal 2018 comprising $7 million resulting from enactment of the Tax Act and $7 million from the release of valuation allowances against certain deferred tax assets. Valuation Allowances The Company assesses the realizability of its deferred tax assets on a quarterly basis through an analysis of potential sources of future taxable income, including prior year taxable income available to absorb a carryback of tax losses, reversals of existing taxable temporary differences, tax planning strategies, and forecasts of taxable income. The Company considers all negative and positive evidence, including the weight of the evidence, to determine if valuation allowances against deferred tax assets are required. As discussed above in this section, in the second quarter of fiscal 2018, the Company released valuation allowances against certain U.S. federal and state deferred tax assets resulting in a discrete tax benefit of $7 million . The release of these valuation allowances was the result of sufficient positive evidence at the time, including cumulative income in recent years and projections of future taxable income based primarily on the Company’s improved financial performance, that it is more-likely-than-not that the deferred tax assets will be realized. The Company continues to maintain valuation allowances against certain U.S. federal, state, Canadian and all Puerto Rican deferred tax assets. 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 2013 to 2018 remain subject to examination under the statute of limitations.

Net Income Per Share

Net Income Per Share	9 Months Ended
	May 31, 2019
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The following table sets forth the information used to compute basic and diluted net income per share attributable to SSI (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2019 2018 2019 2018 Income from continuing operations $ 16,432 $ 38,504 $ 46,557 $ 99,515 Net income attributable to noncontrolling interests (750 ) (1,046 ) (1,585 ) (2,806 ) Income from continuing operations attributable to SSI 15,682 37,458 44,972 96,709 Income (loss) from discontinued operations, net of tax 8 (56 ) (202 ) 72 Net income attributable to SSI $ 15,690 $ 37,402 $ 44,770 $ 96,781 Computation of shares: Weighted average common shares outstanding, basic 27,510 27,676 27,548 27,719 Incremental common shares attributable to dilutive performance share, RSU and DSU awards 564 960 636 927 Weighted average common shares outstanding, diluted 28,074 28,636 28,184 28,646 Common stock equivalent shares of 388,766 and 283,483 were considered antidilutive and were excluded from the calculation of diluted net income per share for the three and nine months ended May 31, 2019 , respectively. No common stock equivalent shares were considered antidilutive for the three and nine months ended May 31, 2018 .

Related Party Transactions

Related Party Transactions	9 Months Ended
	May 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company purchases recycled metal from its joint venture operations at prices that approximate fair market value. These purchases totaled $4 million and $5 million for the three months ended May 31, 2019 and 2018 , respectively, and $11 million and $12 million for the nine months ended May 31, 2019 and 2018 , respectively.

Segment Information

Segment Information	9 Months Ended
	May 31, 2019
Segment Reporting [Abstract]
Segment Information	Segment Information The accounting standards for reporting information about operating segments define an operating segment as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses for which discrete financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s internal organizational and reporting structure includes two operating and reportable segments: the Auto and Metals Recycling (“AMR”) business and the Cascade Steel and Scrap (“CSS”) business. AMR acquires and recycles ferrous and nonferrous scrap metal for sale to foreign and domestic metal producers, processors and brokers, and procures salvaged vehicles and sells serviceable used auto parts from these vehicles through a network of self-service auto parts stores. These auto parts stores also supply the Company’s shredding facilities with autobodies that are processed into saleable recycled scrap metal. CSS operates a steel mini-mill that produces a range of finished steel long products using recycled scrap metal and other raw materials. CSS’s steel mill obtains substantially all of its recycled scrap metal raw material requirements from its integrated metals recycling and joint venture operations. CSS’s metals recycling operations also sell recycled metal to external customers primarily in export markets. The Company holds noncontrolling ownership interests in joint ventures, which are either in the metals recycling business or are suppliers of unprocessed metal. The joint ventures sell recycled scrap metal to AMR and to CSS at prices that approximate local market rates, which produces intercompany profit. This intercompany profit is eliminated while the products remain in inventory and is not recognized until the finished products are sold to third parties. The Company’s allocable portion of the results of these joint ventures is reported within the segment results. As of May 31, 2019 and August 31, 2018 , the Company had two 50% -owned joint venture interests, one presented as part of AMR operations, and one presented as part of CSS operations. Income from joint ventures for the three and nine months ended May 31, 2018 includes the results of two additional 50% joint venture interests presented as part of AMR operations which dissolved in the fourth quarter of fiscal 2018. Intersegment sales from AMR to CSS are made at prices that approximate local market rates. These intercompany sales tend to produce intercompany profit which is 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. Certain expenses related to shared services that support operational activities and transactions are 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 certain items to segment operating income because management does not include the information in its measurement of the performance of the operating segments. Such unallocated items include restructuring charges and other exit-related activities, activities related to legacy environmental matters, and provisions for certain legal matters. Because of the unallocated income and expense, the operating income of each reportable segment does not reflect the operating income the reportable segment would report as a stand-alone business. The results of discontinued operations are excluded from segment operating income and are presented separately, net of tax, from the results of ongoing operations for all periods presented. The table below illustrates the Company’s revenues from continuing operations by reportable segment (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2019 2018 2019 2018 Revenues: AMR: Revenues $ 429,023 $ 529,611 $ 1,251,500 $ 1,377,450 Less intersegment revenues (3,058 ) (7,271 ) (8,734 ) (19,086 ) AMR external customer revenues 425,965 522,340 1,242,766 1,358,364 CSS: Revenues 121,431 130,076 342,215 336,774 Total revenues $ 547,396 $ 652,416 $ 1,584,981 $ 1,695,138 The table below illustrates the reconciliation of the Company’s segment operating income to income from continuing operations before income taxes (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2019 2018 2019 2018 AMR $ 29,189 $ 54,980 $ 73,947 $ 135,284 CSS 8,116 10,793 25,802 24,682 Segment operating income 37,305 65,773 99,749 159,966 Restructuring charges and other exit-related activities (75 ) (70 ) (813 ) (261 ) Corporate and eliminations (12,771 ) (14,469 ) (32,752 ) (48,690 ) Operating income 24,459 51,234 66,184 111,015 Interest expense (2,294 ) (2,483 ) (6,267 ) (6,823 ) Other income, net 29 403 373 1,353 Income from continuing operations before income taxes $ 22,194 $ 49,154 $ 60,290 $ 105,545 The following is a summary of the Company’s total assets by reportable segment (in thousands): May 31, 2019 August 31, 2018 AMR (1) $ 1,533,071 $ 1,485,626 CSS (1) 760,338 740,967 Total segment assets 2,293,409 2,226,593 Corporate and eliminations (2) (1,200,787 ) (1,121,776 ) Total assets $ 1,092,622 $ 1,104,817 _____________________________ (1) AMR total assets include $3 million and $4 million for an investment in a joint venture as of May 31, 2019 and August 31, 2018 , respectively. CSS total assets include $8 million for an investment in a joint venture as of May 31, 2019 and August 31, 2018 . (2) The substantial majority of Corporate and eliminations total assets consist of Corporate intercompany payables to the Company’s operating segments and intercompany eliminations.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	May 31, 2019
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 fiscal year ended August 31, 2018 . The results for the three and nine months ended May 31, 2019 and 2018 are not necessarily indicative of the results of operations for the entire fiscal year.
Accounting Changes	Accounting Changes As of the beginning of the first quarter of fiscal 2019, the Company adopted an accounting standards update initially issued in May 2014 that clarifies the principles for recognizing revenue from contracts with customers. The core principle of the new guidance is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The Company adopted the new revenue accounting standard using the modified retrospective approach, which requires recognition of the cumulative effect of initially applying the new requirements as an adjustment to the opening balance of retained earnings in the period of initial application. Adoption of the new requirements did not change the timing of revenue recognition for the Company compared to the previous guidance, and the Company recorded no cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2018. The Company identified certain scrap purchase and sale arrangements for which it recognized revenue for the gross amount of consideration it expected to be entitled to from the customer (as principal) under the previous revenue guidance, but for which under the new revenue standard it recognizes revenue as the net amount of consideration that it expects to retain after paying the scrap metal supplier (as agent). The foregoing change in the classification of the cost of scrap metal purchased under such arrangements has the effect of reducing the amount of revenue and cost of goods sold reported in the financial statements, while having no impact on net income. If the Company had continued using the accounting guidance in effect before the adoption of the new revenue accounting standard, its consolidated revenues for the three and nine months ended May 31, 2019 would have been higher by approximately $8 million and $21 million , respectively, or 1% for each period, and its consolidated cost of goods sold would have been higher by the same amounts, respectively. No other line items in the consolidated financial statements were materially impacted by adoption of the new requirements. Comparative prior period amounts and disclosures continue to be reported in accordance with guidance in effect prior to the date of adoption. See Note 7 - Revenue for the disclosures required under the new standard.
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 $25 million and $28 million as of May 31, 2019 and August 31, 2018 , respectively.
Accounts Receivable, net	Accounts Receivable, net Accounts receivable represent amounts primarily due from customers on product and other sales. These accounts receivable, which are reduced by an allowance for doubtful accounts, are recorded at the invoiced amount and do not bear interest. The Company extends credit to customers under contracts containing customary and explicit payment terms, and payment is generally required within 30 days of shipment. Nonferrous export sales typically require a deposit prior to shipment. Historically, almost all of the Company’s ferrous export sales have been made with letters of credit. Domestic ferrous metal sales, nonferrous metal sales and finished steel sales are generally made on open account, and the majority of these sales are covered by credit insurance. The Company evaluates the collectibility of its accounts receivable based on a combination of factors, including whether sales were made pursuant to letters of credit or credit insurance is in place. In cases where management is aware of circumstances that may impair a customer’s ability to meet its financial obligations, management records a specific allowance against amounts due and reduces the receivable to the amount the Company believes will be collected. For all other customers, the Company maintains an allowance that considers the total receivables outstanding, historical collection rates and economic trends. Accounts are written off when all efforts to collect have been exhausted. Also included in accounts receivable are short-term advances to scrap metal suppliers used as a mechanism to acquire unprocessed scrap metal. The advances are generally repaid with scrap metal, as opposed to cash. Repayments of advances with scrap metal are treated as noncash operating activities in the Unaudited Condensed Consolidated Statements of Cash Flows and totaled $12 million and $11 million for the nine months ended May 31, 2019 and 2018, respectively.
Other Assets	Prepaid Expenses The Company’s prepaid expenses totaled $15 million and $22 million as of May 31, 2019 and August 31, 2018 , respectively, and consisted primarily of prepaid insurance, prepaid services and deposits on capital purchases. Other Assets The Company’s other assets, exclusive of prepaid expenses, consist primarily of receivables from insurers, spare parts, an equity investment, debt issuance costs, and notes and other contractual receivables. Other assets are reported within either prepaid expenses and other current assets or other assets in the Unaudited Condensed Consolidated Balance Sheets based on their expected use either during or beyond the current operating cycle of one year from the reporting date. Receivables from insurers totaled $16 million and $36 million as of May 31, 2019 and August 31, 2018 , respectively, with the decrease in fiscal 2019 resulting from the settlement of a contingent loss recorded during fiscal 2018 in connection with lawsuits arising from a motor vehicle collision for which the Company had insurance coverage. See “Contingencies – Other” in Note 5 – Commitments and Contingencies for further discussion of the contingent loss and subsequent settlements in fiscal 2019 . The Company invested $6 million in the equity of a privately-held waste and recycling entity in fiscal 2017. The equity investment does not have a readily determinable fair value and, therefore, is carried at cost and adjusted for impairments and observable price changes. The investment is presented as part of the Auto and Metals Recycling (“AMR”) reportable segment and reported within other assets in the Unaudited Condensed Consolidated Balance Sheets. The carrying value of the investment was $6 million as of May 31, 2019 and August 31, 2018 . The Company has not recorded any impairments or upward or downward adjustments to the carrying value of the investment since acquisition.
Investment	The Company invested $6 million in the equity of a privately-held waste and recycling entity in fiscal 2017. The equity investment does not have a readily determinable fair value and, therefore, is carried at cost and adjusted for impairments and observable price changes. The investment is presented as part of the Auto and Metals Recycling (“AMR”) reportable segment and reported within other assets in the Unaudited Condensed Consolidated Balance Sheets. The carrying value of the investment was $6 million as of May 31, 2019 and August 31, 2018 . The Company has not recorded any impairments or upward or downward adjustments to the carrying value of the investment since acquisition.
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. The majority of cash and cash equivalents is maintained with major financial institutions. Balances with these and certain other institutions exceeded the Federal Deposit Insurance Corporation insured amount of $250,000 as of May 31, 2019 . 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, limits, 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 $75 million and $58 million of open letters of credit as of May 31, 2019 and August 31, 2018 , respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, an accounting standard was issued that will supersede the existing lease standard and require 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. Additional updates have been issued since February 2016 amending aspects of the initial update, including providing an additional and optional transition method for adoption. This standard is effective for the Company beginning in fiscal 2020, including interim periods within that fiscal year. The Company expects to initially apply the requirements by recognizing a cumulative-effect adjustment, if any, to the opening balance of retained earnings in the period of adoption. The Company is in the process of analyzing its population of leases within the scope of the new accounting standard and documenting salient lease terms to support the initial and subsequent measurement of lease liabilities and lease assets. The Company is also assessing and implementing changes to its processes, systems, and internal controls as a result of the new guidance. The Company is evaluating the impact of adopting this standard on its financial position, results of operations, cash flows and disclosures, and it expects to recognize a material amount of lease assets and liabilities on its consolidated balance sheet upon adoption.
Revenue	Revenue The Company recognizes revenue upon satisfying its promises to transfer goods or services to customers under the terms of its contracts. Nearly all of these promises, referred to as performance obligations, consist of the transfer of physical goods, including ferrous and nonferrous recycled scrap metal, autobodies, auto parts, and finished steel products, to customers. These performance obligations are satisfied at the point in time the Company transfers control of the goods to the customer, which in nearly all cases is when title to and risk of loss of the goods transfer to the customer. The timing of transfer of title and risk of loss is dictated by customary or explicitly stated contract terms. For example, the Company recognizes revenue on partially loaded bulk shipments of ferrous recycled scrap metal when contractual terms support revenue recognition based on transfer of title and risk of loss. The significant majority of the Company’s sales involve transfer of control to the customer, and thus revenue recognition, before delivery to the customer’s destination; for example, upon release of the goods to the shipper. Shipping and handling activities that occur after a customer has obtained control of a good are accounted for as fulfillment costs rather than an additional promise in a contract. As such, shipping and handling consideration (freight revenue) is recognized when control of the goods transfers to the customer, and freight expense is accrued when the related revenue is recognized. In certain regional markets, the Company enters into contracts whereby it arranges for, or brokers, the transfer of scrap material between scrap suppliers and end customers. For transactions in which the Company obtains substantive control of the scrap material before the goods are transferred to the end customer, for example by arranging for the processing or warehousing of the material, the Company recognizes revenue equal to the gross amount of the consideration it expects to receive from the customer (as principal). Alternatively, for transactions in which the Company does not obtain substantive control of the scrap material before the product is transferred to the end customer, the Company recognizes revenue equal to the net amount of the consideration it expects to retain after paying the supplier for the purchase of the scrap metal (as agent). The Company is the agent in the transaction for the substantial majority of brokerage arrangements. Nearly all of the Company’s sales contracts reflect market pricing at the time the contract is executed, are one year or less, and generally provide for shipment within 30 to 60 days after the price has been agreed upon with the customer. The Company’s retail auto parts sales are at listed prices and are recognized at the point of sale. The Company recognizes revenue based on contractually stated selling prices and quantities shipped, adjusted for estimated claims and discounts. Claims are customary in the recycled scrap metal industry and arise from variances in the quantity or quality of delivered products. Revenue adjustments may be required if the settlement of claims exceeds original estimates. Discounts offered to certain finished steel customers qualify as variable consideration as the discounts are contingent upon future events. Variable consideration arising from discounts is recognized upon the transfer of finished steel products to customers based upon either the expected value or the most likely amount and was not material for the three and nine months ended May 31, 2019 . The Company experiences very few sales returns and, therefore, no material provisions for returns have been made when sales are recognized. During the three and nine months ended May 31, 2019 , revenue adjustments related to performance obligations that were satisfied in previous periods were not material.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	May 31, 2019
Inventory, Net [Abstract]
Inventories	Inventories consisted of the following (in thousands): May 31, 2019 August 31, 2018 Processed and unprocessed scrap metal $ 90,839 $ 111,658 Semi-finished goods 9,293 15,551 Finished goods 58,554 39,809 Supplies 43,506 38,859 Inventories $ 202,192 $ 205,877

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	May 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The gross change in the carrying amount of goodwill for the nine months ended May 31, 2019 was as follows (in thousands): Goodwill August 31, 2018 $ 168,065 Acquisition 1,575 Foreign currency translation adjustment (694 ) May 31, 2019 $ 168,946

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	May 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule Of Reserves For Environmental Liabilities	Changes in the Company’s environmental liabilities for the nine months ended May 31, 2019 were as follows (in thousands): Balance as of August 31, 2018 Liabilities Established (Released), Net Payments and Other Balance as of May 31, 2019 Short-Term Long-Term $ 53,832 $ 292 $ (2,843 ) $ 51,281 $ 5,769 $ 45,512

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	May 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Loss	Changes in accumulated other comprehensive loss, net of tax, comprise the following (in thousands): Three Months Ended May 31, 2019 Three Months Ended May 31, 2018 Foreign Currency Translation Adjustments Pension Obligations, Net Total Foreign Currency Translation Adjustments Pension Obligations, Net Total Balances - March 1 (Beginning of period) $ (34,861 ) $ (2,866 ) $ (37,727 ) $ (33,420 ) $ (3,609 ) $ (37,029 ) Other comprehensive loss before reclassifications (1,838 ) — (1,838 ) (414 ) — (414 ) Income tax benefit — — — — — — Other comprehensive loss before reclassifications, net of tax (1,838 ) — (1,838 ) (414 ) — (414 ) Amounts reclassified from accumulated other comprehensive loss — 184 184 — 225 225 Income tax benefit — (42 ) (42 ) — (51 ) (51 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 142 142 — 174 174 Net periodic other comprehensive income (loss) (1,838 ) 142 (1,696 ) (414 ) 174 (240 ) Balances - May 31 (End of period) $ (36,699 ) $ (2,724 ) $ (39,423 ) $ (33,834 ) $ (3,435 ) $ (37,269 ) Nine Months Ended May 31, 2019 Nine Months Ended May 31, 2018 Foreign Currency Translation Adjustments Pension Obligations, Net Total Foreign Currency Translation Adjustments Pension Obligations, Net Total Balances - September 1 (Beginning of period) $ (34,129 ) $ (3,108 ) $ (37,237 ) $ (31,828 ) $ (3,465 ) $ (35,293 ) Other comprehensive income (loss) before reclassifications (2,570 ) 208 (2,362 ) (2,006 ) (185 ) (2,191 ) Income tax (expense) benefit — (46 ) (46 ) — 227 227 Other comprehensive income (loss) before reclassifications, net of tax (2,570 ) 162 (2,408 ) (2,006 ) 42 (1,964 ) Amounts reclassified from accumulated other comprehensive loss — 288 288 — 365 365 Income tax benefit — (66 ) (66 ) — (377 ) (377 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 222 222 — (12 ) (12 ) Net periodic other comprehensive income (loss) (2,570 ) 384 (2,186 ) (2,006 ) 30 (1,976 ) Balances - May 31 (End of period) $ (36,699 ) $ (2,724 ) $ (39,423 ) $ (33,834 ) $ (3,435 ) $ (37,269 )

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	May 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The table below illustrates the Company’s revenues disaggregated by major product and sales destination for each reportable segment (in thousands): Three Months Ended May 31, 2019 AMR CSS Intersegment Revenues Total Revenues by major product: Ferrous $ 280,362 $ 14,208 $ (2,697 ) $ 291,873 Nonferrous 112,785 10,376 (329 ) 122,832 Steel — 96,626 — 96,626 Retail and other 35,876 221 (32 ) 36,065 Total revenues $ 429,023 $ 121,431 $ (3,058 ) $ 547,396 Revenues based on sales destination: Foreign $ 273,128 $ 25,242 $ — $ 298,370 Domestic 155,895 96,189 (3,058 ) 249,026 Total revenues $ 429,023 $ 121,431 $ (3,058 ) $ 547,396 Nine Months Ended May 31, 2019 AMR CSS Intersegment Revenues Total Revenues by major product: Ferrous $ 836,662 $ 41,071 $ (7,846 ) $ 869,887 Nonferrous 316,450 28,522 (856 ) 344,116 Steel — 271,988 — 271,988 Retail and other 98,388 634 (32 ) 98,990 Total revenues $ 1,251,500 $ 342,215 $ (8,734 ) $ 1,584,981 Revenues based on sales destination: Foreign $ 753,696 $ 69,396 $ — $ 823,092 Domestic 497,804 272,819 (8,734 ) 761,889 Total revenues $ 1,251,500 $ 342,215 $ (8,734 ) $ 1,584,981

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	May 31, 2019
Earnings Per Share [Abstract]
Net Income Per Share	The following table sets forth the information used to compute basic and diluted net income per share attributable to SSI (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2019 2018 2019 2018 Income from continuing operations $ 16,432 $ 38,504 $ 46,557 $ 99,515 Net income attributable to noncontrolling interests (750 ) (1,046 ) (1,585 ) (2,806 ) Income from continuing operations attributable to SSI 15,682 37,458 44,972 96,709 Income (loss) from discontinued operations, net of tax 8 (56 ) (202 ) 72 Net income attributable to SSI $ 15,690 $ 37,402 $ 44,770 $ 96,781 Computation of shares: Weighted average common shares outstanding, basic 27,510 27,676 27,548 27,719 Incremental common shares attributable to dilutive performance share, RSU and DSU awards 564 960 636 927 Weighted average common shares outstanding, diluted 28,074 28,636 28,184 28,646

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	May 31, 2019
Segment Reporting [Abstract]
Reconciliation of Revenue from Segments to Consolidated	The table below illustrates the Company’s revenues from continuing operations by reportable segment (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2019 2018 2019 2018 Revenues: AMR: Revenues $ 429,023 $ 529,611 $ 1,251,500 $ 1,377,450 Less intersegment revenues (3,058 ) (7,271 ) (8,734 ) (19,086 ) AMR external customer revenues 425,965 522,340 1,242,766 1,358,364 CSS: Revenues 121,431 130,076 342,215 336,774 Total revenues $ 547,396 $ 652,416 $ 1,584,981 $ 1,695,138
Reconciliation of Operating Income from Segments to Consolidated	The table below illustrates the reconciliation of the Company’s segment operating income to income from continuing operations before income taxes (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2019 2018 2019 2018 AMR $ 29,189 $ 54,980 $ 73,947 $ 135,284 CSS 8,116 10,793 25,802 24,682 Segment operating income 37,305 65,773 99,749 159,966 Restructuring charges and other exit-related activities (75 ) (70 ) (813 ) (261 ) Corporate and eliminations (12,771 ) (14,469 ) (32,752 ) (48,690 ) Operating income 24,459 51,234 66,184 111,015 Interest expense (2,294 ) (2,483 ) (6,267 ) (6,823 ) Other income, net 29 403 373 1,353 Income from continuing operations before income taxes $ 22,194 $ 49,154 $ 60,290 $ 105,545
Reconciliation of Assets from Segment to Consolidated	The following is a summary of the Company’s total assets by reportable segment (in thousands): May 31, 2019 August 31, 2018 AMR (1) $ 1,533,071 $ 1,485,626 CSS (1) 760,338 740,967 Total segment assets 2,293,409 2,226,593 Corporate and eliminations (2) (1,200,787 ) (1,121,776 ) Total assets $ 1,092,622 $ 1,104,817 _____________________________ (1) AMR total assets include $3 million and $4 million for an investment in a joint venture as of May 31, 2019 and August 31, 2018 , respectively. CSS total assets include $8 million for an investment in a joint venture as of May 31, 2019 and August 31, 2018 . (2) The substantial majority of Corporate and eliminations total assets consist of Corporate intercompany payables to the Company’s operating segments and intercompany eliminations.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Revenue, Initial Application Period Cumulative Effect Transition (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018	Sep. 01, 2018	Aug. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings	$ 668,933,000		$ 668,933,000			$ 639,684,000
Revenues	547,396,000	$ 652,416,000	1,584,981,000	$ 1,695,138,000
Cost of goods sold	474,598,000	$ 549,164,000	1,379,418,000	$ 1,427,877,000
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings					$ 0
Revenues	$ (8,000,000)		$ (21,000,000)
Percentage of Total Revenue	1.00%		1.00%
Cost of goods sold	$ (8,000,000)		$ (21,000,000)

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	3 Months Ended	9 Months Ended
	May 31, 2018	May 31, 2019	May 31, 2018	Aug. 31, 2018	Feb. 28, 2017
Accounting Policies [Abstract]
Book Overdrafts		$ 25,000,000		$ 28,000,000
Repayment of Advances with Scrap Metal		12,000,000	$ 11,000,000
Prepaid Expense		15,000,000		22,000,000
Insurance Receivable		16,000,000		36,000,000
Investment, Original Cost					$ 6,000,000
Cost Method Investments				6,000,000
Investment, Carrying Value		6,000,000
Cash, FDIC Insured Amount		250,000
Customer Issued Letters Of Credit		$ 75,000,000		$ 58,000,000
Asset Impairment Charges, Accelerated Depreciation			1,000,000
Gain (Loss) on Sale of Assets	$ 2,000,000		$ 3,000,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	May 31, 2019	Aug. 31, 2018
Inventory, Net [Abstract]
Processed and unprocessed scrap metal	$ 90,839	$ 111,658
Semi-finished goods	9,293	15,551
Finished goods	58,554	39,809
Supplies	43,506	38,859
Inventories	$ 202,192	$ 205,877

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Feb. 28, 2019	May 31, 2019
Goodwill [Roll Forward]
August 31, 2018		$ 168,065
May 31, 2019		168,946
Auto and Metals Recycling
Goodwill [Roll Forward]
August 31, 2018		168,065
Acquisition	$ 2,000	1,575
Foreign currency translation adjustment		(694)
May 31, 2019		$ 168,946

Goodwill - Narrative (Details)

Goodwill - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Feb. 28, 2019	May 31, 2019	Aug. 31, 2018
Goodwill [Line Items]
Goodwill		$ 168,946	$ 168,065
Goodwill, Impaired, Accumulated Impairment Loss		471,000	471,000
Auto and Metals Recycling
Goodwill [Line Items]
Goodwill		168,946	168,065
Business Combination, Consideration Transferred	$ 2,000
Goodwill, Acquired During Period	$ 2,000	1,575
Single Reporting Unit | Auto and Metals Recycling
Goodwill [Line Items]
Goodwill		$ 1,000	$ 1,000

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Environmental Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	May 31, 2019	Aug. 31, 2018
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning Balance	$ 53,832
Liabilities Established (Released), Net	292
Payments and Other	(2,843)
Ending Balance	51,281
Short-Term	5,769	$ 6,682
Long-Term	$ 45,512	$ 47,150

Commitments and Contingencies_2

Commitments and Contingencies - Recycling Operations and Other Legacy (Details)	Dec. 31, 2017potentially_responsible_party	Aug. 31, 2007USD ($)	Jan. 31, 2017USD ($)	Nov. 30, 2017USD ($)	May 31, 2019USD ($)	Aug. 31, 2018USD ($)	Jan. 30, 2017potentially_responsible_partyparty	Aug. 31, 2016USD ($)
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies					$ 51,281,000	$ 53,832,000
Parties Liable in Litigation | party							30
Liabilities Established					292,000
Insurance Receivable					16,000,000	36,000,000
Legacy Environmental Site 1 - Remediation of Shredder Residue
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies					4,000,000	4,000,000
Environmental remediation expense accrued in the period				$ 4,000,000
Legacy Environmental Site 2 - Remediation of Soil and Groundwater Conditions
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies					7,000,000	6,000,000
Portland Harbor Superfund Site
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies					1,000,000	2,000,000
Number Of Potentially Responsible Parties Joining Allocation Process | potentially_responsible_party							100
Number Of Other Potentially Responsible Parties Signing Settlement Agreement and Order on Consent | potentially_responsible_party	3
Number of Years for Pre-Remedial Design	2 years
Liabilities Established				2,000,000
Insurance Receivable				$ 2,000,000
Other Auto and Metals Recycling Business Sites
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies					51,000,000	$ 54,000,000
Minimum | Legacy Environmental Site 1 - Remediation of Shredder Residue
Loss Contingencies [Line Items]
Loss contingency, range of possible loss					0
Maximum | Legacy Environmental Site 1 - Remediation of Shredder Residue
Loss Contingencies [Line Items]
Loss contingency, range of possible loss					$ 28,000,000
Lower Willamette Group | Portland Harbor Superfund Site
Loss Contingencies [Line Items]
Remedial Investigation and Feasibility Study Costs		$ 115,000,000
Number of Years for Remedial Investigation and Feasibility Study		10 years
Potential Responsible Parties | Portland Harbor Superfund Site
Loss Contingencies [Line Items]
Estimated Cost of Selected Remedy Undiscounted			$ 1,700,000,000
Estimated Cost of Selected Remedy Discounted			$ 1,050,000,000
Estimated Cost of Selected Remedy, Discount Rate			7.00%
Site Contingency, Estimated Construction Time Frame			13 years
Potential Responsible Parties | Minimum | Portland Harbor Superfund Site
Loss Contingencies [Line Items]
Site Contingency, Least Costly Remediation Plan Discounted								$ 170,000,000
Estimated Cost of Selected Remedy, Range			(30.00%)
Potential Responsible Parties | Maximum | Portland Harbor Superfund Site
Loss Contingencies [Line Items]
Site Contingency, Most Costly Remediation Plan Discounted								$ 2,500,000,000
Estimated Cost of Selected Remedy, Range			50.00%

Commitments and Contingencies_3

Commitments and Contingencies - Steel Manufacturing Operations (Details) T in Thousands	9 Months Ended
	May 31, 2019USD ($)T	Aug. 31, 2018USD ($)
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies	$ 51,281,000	$ 53,832,000
Steel Manufacturing Operations
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies	$ 0	$ 0
Permitted Annual Production Capacity | T	950
Permit, Renewal Period	5 years

Commitments and Contingencies_4

Commitments and Contingencies - Other (Details) $ in Millions	3 Months Ended
	Nov. 30, 2018USD ($)lawsuit	May 31, 2019USD ($)	Aug. 31, 2018USD ($)
Loss Contingencies [Line Items]
Insurance Receivable		$ 16	$ 36
GEORGIA | Wrongful Death Lawsuits | Settled Litigation
Loss Contingencies [Line Items]
Claims Settled | lawsuit	2
Amount Awarded	$ 20
GEORGIA | Wrongful Death Lawsuits | Pending Litigation
Loss Contingencies [Line Items]
Claims Filed | lawsuit	5
Accrual, Current	$ 10
Pending Claims | lawsuit	3
Insurance Receivable	$ 10

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward}
Beginning balance	$ 680,847	$ 587,096	$ 670,110	$ 537,493
Total other comprehensive loss, net of tax	(1,696)	(240)	(2,186)	(1,976)
Ending balance	693,704	619,562	693,704	619,562
Foreign Currency Translation Adjustments
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward}
Beginning balance	(34,861)	(33,420)	(34,129)	(31,828)
Other comprehensive income (loss) before reclassifications	(1,838)	(414)	(2,570)	(2,006)
Income tax (expense) benefit	0	0	0	0
Other comprehensive loss before reclassifications, net of tax	(1,838)	(414)	(2,570)	(2,006)
Amounts reclassified from accumulated other comprehensive loss	0	0	0	0
Income tax benefit	0	0	0	0
Amounts reclassified from accumulated other comprehensive loss, net of tax	0	0	0	0
Total other comprehensive loss, net of tax	(1,838)	(414)	(2,570)	(2,006)
Ending balance	(36,699)	(33,834)	(36,699)	(33,834)
Pension Obligations, net
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward}
Beginning balance	(2,866)	(3,609)	(3,108)	(3,465)
Other comprehensive income (loss) before reclassifications	0	0	208	(185)
Income tax (expense) benefit	0	0	(46)	227
Other comprehensive loss before reclassifications, net of tax	0	0	162	42
Amounts reclassified from accumulated other comprehensive loss	184	225	288	365
Income tax benefit	(42)	(51)	(66)	(377)
Amounts reclassified from accumulated other comprehensive loss, net of tax	142	174	222	(12)
Total other comprehensive loss, net of tax	142	174	384	30
Ending balance	(2,724)	(3,435)	(2,724)	(3,435)
Accumulated Other Comprehensive Loss
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward}
Beginning balance	(37,727)	(37,029)	(37,237)	(35,293)
Other comprehensive income (loss) before reclassifications	(1,838)	(414)	(2,362)	(2,191)
Income tax (expense) benefit	0	0	(46)	227
Other comprehensive loss before reclassifications, net of tax	(1,838)	(414)	(2,408)	(1,964)
Amounts reclassified from accumulated other comprehensive loss	184	225	288	365
Income tax benefit	(42)	(51)	(66)	(377)
Amounts reclassified from accumulated other comprehensive loss, net of tax	142	174	222	(12)
Total other comprehensive loss, net of tax	(1,696)	(240)	(2,186)	(1,976)
Ending balance	$ (39,423)	$ (37,269)	$ (39,423)	$ (37,269)

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 547,396	$ 652,416	$ 1,584,981	$ 1,695,138
Auto and Metals Recycling
Disaggregation of Revenue [Line Items]
Revenues	429,023		1,251,500
Cascade Steel and Scrap
Disaggregation of Revenue [Line Items]
Revenues	121,431		342,215
Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenues	(3,058)		(8,734)
Foreign
Disaggregation of Revenue [Line Items]
Revenues	298,370		823,092
Foreign | Auto and Metals Recycling
Disaggregation of Revenue [Line Items]
Revenues	273,128		753,696
Foreign | Cascade Steel and Scrap
Disaggregation of Revenue [Line Items]
Revenues	25,242		69,396
Foreign | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenues	0		0
Domestic
Disaggregation of Revenue [Line Items]
Revenues	249,026		761,889
Domestic | Auto and Metals Recycling
Disaggregation of Revenue [Line Items]
Revenues	155,895		497,804
Domestic | Cascade Steel and Scrap
Disaggregation of Revenue [Line Items]
Revenues	96,189		272,819
Domestic | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenues	(3,058)		(8,734)
Ferrous
Disaggregation of Revenue [Line Items]
Revenues	291,873		869,887
Ferrous | Auto and Metals Recycling
Disaggregation of Revenue [Line Items]
Revenues	280,362		836,662
Ferrous | Cascade Steel and Scrap
Disaggregation of Revenue [Line Items]
Revenues	14,208		41,071
Ferrous | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenues	(2,697)		(7,846)
Nonferrous
Disaggregation of Revenue [Line Items]
Revenues	122,832		344,116
Nonferrous | Auto and Metals Recycling
Disaggregation of Revenue [Line Items]
Revenues	112,785		316,450
Nonferrous | Cascade Steel and Scrap
Disaggregation of Revenue [Line Items]
Revenues	10,376		28,522
Nonferrous | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenues	(329)		(856)
Steel
Disaggregation of Revenue [Line Items]
Revenues	96,626		271,988
Steel | Auto and Metals Recycling
Disaggregation of Revenue [Line Items]
Revenues	0		0
Steel | Cascade Steel and Scrap
Disaggregation of Revenue [Line Items]
Revenues	96,626		271,988
Steel | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenues	0		0
Retail and other
Disaggregation of Revenue [Line Items]
Revenues	36,065		98,990
Retail and other | Auto and Metals Recycling
Disaggregation of Revenue [Line Items]
Revenues	35,876		98,388
Retail and other | Cascade Steel and Scrap
Disaggregation of Revenue [Line Items]
Revenues	221		634
Retail and other | Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenues	$ (32)		$ (32)

Revenue - Receivables from Cont

Revenue - Receivables from Contracts with Customers (Details) - USD ($) $ in Millions	May 31, 2019	Aug. 31, 2018
Revenue from Contract with Customer [Abstract]
Receivables from Contracts with Customers, Net	$ 164	$ 164
Percentage Receivables From Contracts With Customers of Accounts Receivable	98.00%	97.00%

Revenue - Contract Liabilities

Revenue - Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	May 31, 2019	May 31, 2019	Aug. 31, 2018
Revenue from Contract with Customer [Abstract]
Contract with Customer, Liability	$ 3	$ 3	$ 9
Contract with Customer, Liability, Revenue Recognized	$ 1	$ 8

Share-Based Compensation (Detai

Share-Based Compensation (Details) $ in Millions	3 Months Ended
	Feb. 28, 2019USD ($)shares	Nov. 30, 2018USD ($)companyshares
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)		261,642
Vesting term		5 years
Vesting percentage per year		20.00%
Shares granted, fair value | $		$ 7
Performance Shares (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)		254,620
Performance Shares (PSUs) | Total Shareholder Return (TSR)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)		123,812
Shares granted, fair value | $		$ 4
Total Shareholder Return Designated Peer Group | company		16
Performance period		3 years
Performance Shares (PSUs) | Total Shareholder Return (TSR) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Based Awards Award Payouts Threshold		50.00%
Performance Shares (PSUs) | Total Shareholder Return (TSR) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Based Awards Award Payouts Threshold		200.00%
Performance Shares (PSUs) | Return on Capital Employed (ROCE)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)		130,808
Shares granted, fair value | $		$ 4
Performance period		3 years
Performance Shares (PSUs) | Return on Capital Employed (ROCE) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Based Awards Award Payouts Threshold		50.00%
Performance Shares (PSUs) | Return on Capital Employed (ROCE) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Based Awards Award Payouts Threshold		200.00%
Deferred Stock Units (DSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted, fair value | $	$ 1
Deferred Stock Units (DSUs) | Non-employee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)	31,218

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended		12 Months Ended
	May 31, 2019	May 31, 2018	Feb. 28, 2018	May 31, 2019	May 31, 2018	Aug. 31, 2018
Income Tax Disclosure [Abstract]
Federal statutory rate					25.70%	25.70%
Tax Cuts And Jobs Act Of 2017 Incomplete Accounting Provisional Income Tax Expense Benefit			$ (7)
Effective tax rate	26.00%	21.70%		22.80%	5.70%
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount			$ (7)

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018
Earnings Per Share [Abstract]
Income from continuing operations	$ 16,432	$ 38,504	$ 46,557	$ 99,515
Net income attributable to noncontrolling interests	(750)	(1,046)	(1,585)	(2,806)
Income from continuing operations attributable to SSI	15,682	37,458	44,972	96,709
Income (loss) from discontinued operations, net of tax	8	(56)	(202)	72
Net income attributable to SSI	$ 15,690	$ 37,402	$ 44,770	$ 96,781
Computation of shares:
Weighted average common shares outstanding, basic (in shares)	27,510,000	27,676,000	27,548,000	27,719,000
Incremental common shares attributable to dilutive performance share awards, DSUs, and RSUs (in shares)	564,000	960,000	636,000	927,000
Weighted average common shares outstanding, diluted (in shares)	28,074,000	28,636,000	28,184,000	28,646,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	388,766	0	283,483	0

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018
Corporate Joint Venture
Related Party Transaction [Line Items]
Purchases from joint ventures	$ 4	$ 5	$ 11	$ 12

Segment Information - Segment I

Segment Information - Segment Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	May 31, 2019USD ($)jointventureinterestssegment	Aug. 31, 2018USD ($)jointventureinterests
Segment Reporting Information [Line Items]
Number of Operating Segments | segment	2
Number of Equity Method Investments	2	2
Equity Method Investment, Ownership Percentage	50.00%	50.00%
Investments in joint ventures | $	$ 10,632	$ 11,532
Auto and Metals Recycling
Segment Reporting Information [Line Items]
Number of Joint Venture Investments	1	1
Number of Equity Method Investments, Divested in the Period		2
Investments in joint ventures | $	$ 3,000	$ 4,000
Cascade Steel and Scrap
Segment Reporting Information [Line Items]
Number of Joint Venture Investments	1	1
Investments in joint ventures | $	$ 8,000	$ 8,000

Segment Information - Segment R

Segment Information - Segment Revenue Reconciliation to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018
Segment Reporting Information [Line Items]
Revenues	$ 547,396	$ 652,416	$ 1,584,981	$ 1,695,138
Auto and Metals Recycling
Segment Reporting Information [Line Items]
Revenues	429,023		1,251,500
Cascade Steel and Scrap
Segment Reporting Information [Line Items]
Revenues	121,431		342,215
Operating Segments | Auto and Metals Recycling
Segment Reporting Information [Line Items]
Revenues	429,023	529,611	1,251,500	1,377,450
Operating Segments | Cascade Steel and Scrap
Segment Reporting Information [Line Items]
Revenues	121,431	130,076	342,215	336,774
Less: Intersegment revenues | Auto and Metals Recycling
Segment Reporting Information [Line Items]
Revenues	(3,058)	(7,271)	(8,734)	(19,086)
Segment Reconciling Items | Auto and Metals Recycling
Segment Reporting Information [Line Items]
Revenues	$ 425,965	$ 522,340	$ 1,242,766	$ 1,358,364

Segment Information - Segment O

Segment Information - Segment Operating Income Reconciliation to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2019	May 31, 2018
Segment Reporting Information [Line Items]
Operating income	$ 24,459	$ 51,234	$ 66,184	$ 111,015
Restructuring charges and other exit-related activities	(75)	(70)	(813)	(261)
Interest expense	(2,294)	(2,483)	(6,267)	(6,823)
Other income, net	29	403	373	1,353
Income from continuing operations before income taxes	22,194	49,154	60,290	105,545
Operating Segments
Segment Reporting Information [Line Items]
Operating income	37,305	65,773	99,749	159,966
Operating Segments | Auto and Metals Recycling
Segment Reporting Information [Line Items]
Operating income	29,189	54,980	73,947	135,284
Operating Segments | Cascade Steel and Scrap
Segment Reporting Information [Line Items]
Operating income	8,116	10,793	25,802	24,682
Segment Reconciling Items
Segment Reporting Information [Line Items]
Restructuring charges and other exit-related activities	(75)	(70)	(813)	(261)
Corporate and eliminations
Segment Reporting Information [Line Items]
Operating income	$ (12,771)	$ (14,469)	$ (32,752)	$ (48,690)

Segment Information - Segment A

Segment Information - Segment Assets Reconciliation to Consolidated (Details) - USD ($) $ in Thousands	May 31, 2019	Aug. 31, 2018
Segment Reporting Information [Line Items]
Investments in joint ventures	$ 10,632	$ 11,532
Assets	1,092,622	1,104,817
Auto and Metals Recycling
Segment Reporting Information [Line Items]
Investments in joint ventures	3,000	4,000
Cascade Steel and Scrap
Segment Reporting Information [Line Items]
Investments in joint ventures	8,000	8,000
Operating Segments
Segment Reporting Information [Line Items]
Assets	2,293,409	2,226,593
Operating Segments | Auto and Metals Recycling
Segment Reporting Information [Line Items]
Assets	1,533,071	1,485,626
Operating Segments | Cascade Steel and Scrap
Segment Reporting Information [Line Items]
Assets	760,338	740,967
Corporate and eliminations
Segment Reporting Information [Line Items]
Assets	$ (1,200,787)	$ (1,121,776)