Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Aug. 31, 2019 | Oct. 22, 2019 | Feb. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Aug. 31, 2019 | ||
Entity Registrant Name | SCHNITZER STEEL INDUSTRIES, INC. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Trading Symbol | SCHN | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000912603 | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 624,206,925 | ||
Entity Current Reporting Status | Yes | ||
Entity File Number | 000-22496 | ||
Entity Tax Identification Number | 930341923 | ||
Entity Address, Address Line One | 299 SW Clay Street | ||
Entity Address, Address Line Two | Suite 350 | ||
Entity Address, City or Town | Portland | ||
Entity Address, State or Province | Oregon | ||
Entity Address, Postal Zip Code | 97201 | ||
City Area Code | 503 | ||
Local Phone Number | 224-9900 | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 26,465,063 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 200,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 12,377 | $ 4,723 |
Accounts receivable, net | 145,617 | 169,418 |
Inventories | 187,320 | 205,877 |
Refundable income taxes | 5,867 | 4,668 |
Prepaid expenses and other current assets | 115,107 | 63,673 |
Total current assets | 466,288 | 448,359 |
Property, plant and equipment, net | 456,400 | 415,711 |
Investments in joint ventures | 10,276 | 11,532 |
Goodwill | 169,237 | 168,065 |
Intangibles, net | 4,482 | 4,358 |
Deferred income taxes | 28,850 | 30,333 |
Other assets | 25,213 | 26,459 |
Total assets | 1,160,746 | 1,104,817 |
Current liabilities: | ||
Short-term borrowings | 1,321 | 1,139 |
Accounts payable | 110,297 | 128,495 |
Accrued payroll and related liabilities | 27,547 | 46,410 |
Environmental liabilities | 6,030 | 6,682 |
Other accrued liabilities | 123,035 | 71,951 |
Total current liabilities | 268,230 | 254,677 |
Deferred income taxes | 25,466 | 11,742 |
Long-term debt, net of current maturities | 103,775 | 106,237 |
Environmental liabilities, net of current portion | 45,769 | 47,150 |
Other long-term liabilities | 16,210 | 14,901 |
Total liabilities | 459,450 | 434,707 |
Commitments and contingencies (Note 8) | ||
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 | 33,700 | 36,929 |
Retained earnings | 675,363 | 639,684 |
Accumulated other comprehensive loss | (38,763) | (37,237) |
Total SSI shareholders’ equity | 696,964 | 666,078 |
Noncontrolling interests | 4,332 | 4,032 |
Total equity | 701,296 | 670,110 |
Total liabilities and equity | 1,160,746 | 1,104,817 |
Class A Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | 26,464 | 26,502 |
Class B Common Stock | ||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity: | ||
Common stock, value | $ 200 | $ 200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2019 | Aug. 31, 2018 |
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 | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 26,464,000 | 26,502,000 |
Common stock, shares outstanding | 26,464,000 | 26,502,000 |
Class B Common Stock | ||
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 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||
Income Statement [Abstract] | ||||
Revenues | $ 2,132,781 | $ 2,364,715 | $ 1,687,591 | |
Operating expense: | ||||
Cost of goods sold | 1,858,535 | 2,010,485 | 1,464,508 | |
Selling, general and administrative | 191,405 | 208,877 | 171,570 | |
(Income) from joint ventures | (1,452) | (1,953) | (3,674) | |
Asset impairment charges (recoveries), net | 63 | (1,021) | (717) | |
Restructuring charges and other exit-related activities | 365 | (661) | (109) | |
Operating income | 83,865 | 148,988 | 56,013 | |
Interest expense | (8,266) | (8,983) | (8,081) | |
Other income, net | 641 | 1,848 | 758 | |
Income from continuing operations before income taxes | 76,240 | 141,853 | 48,690 | |
Income tax (expense) benefit | (17,670) | 17,590 | (1,322) | |
Income from continuing operations | 58,570 | 159,443 | 47,368 | |
(Loss) income from discontinued operations, net of tax | (248) | 346 | (390) | |
Net income | 58,322 | 159,789 | 46,978 | |
Net income attributable to noncontrolling interests | (1,977) | (3,338) | (2,467) | |
Net income attributable to SSI shareholders | $ 56,345 | $ 156,451 | $ 44,511 | |
Net income per share attributable to SSI shareholders Basic: | ||||
Income per share from continuing operations | $ 2.06 | $ 5.65 | $ 1.63 | |
(Loss) income per share from discontinued operations | (0.01) | 0.01 | (0.01) | |
Net income per share | 2.05 | 5.66 | 1.62 | |
Net income per share attributable to SSI shareholders Diluted: | ||||
Income per share from continuing operations | 2.01 | 5.46 | 1.60 | |
(Loss) income per share from discontinued operations | (0.01) | 0.01 | (0.01) | |
Net income per share | [1] | $ 2 | $ 5.47 | $ 1.58 |
Weighted average number of common shares: | ||||
Basic | 27,527 | 27,645 | 27,537 | |
Diluted | 28,222 | 28,589 | 28,141 | |
[1] | May not foot due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 58,322 | $ 159,789 | $ 46,978 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (1,560) | (2,301) | 2,711 |
Pension obligations, net | 34 | 357 | 2,111 |
Total other comprehensive (loss) income, net of tax | (1,526) | (1,944) | 4,822 |
Comprehensive income | 56,796 | 157,845 | 51,800 |
Less comprehensive income attributable to noncontrolling interests | (1,977) | (3,338) | (2,467) |
Comprehensive income attributable to SSI shareholders | $ 54,819 | $ 154,507 | $ 49,333 |
Consolidated Statements of Equi
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 at Aug. 31, 2016 | $ 501,432 | $ 30,948 | $ 480,100 | $ (40,115) | $ 497,721 | $ 3,711 | $ 26,482 | $ 306 | ||
Beginning balance (in shares) at Aug. 31, 2016 | 26,482 | 306 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 46,978 | 44,511 | 44,511 | 2,467 | ||||||
Other comprehensive income (loss), net of tax | 4,822 | 4,822 | 4,822 | |||||||
Distributions to noncontrolling interests | (2,271) | (2,271) | ||||||||
Conversion of common stock | $ 106 | $ (106) | ||||||||
Conversion of common stock (in shares) | 106 | (106) | ||||||||
Restricted stock withheld for taxes | (3,474) | (3,326) | (3,474) | $ (148) | ||||||
Restricted stock withheld for taxes (in shares) | (148) | |||||||||
Issuance of restricted stock | (419) | $ 419 | ||||||||
Issuance of restricted stock (in shares) | 419 | |||||||||
Share-based compensation expense | 10,847 | 10,847 | 10,847 | |||||||
Dividends | (20,841) | (20,841) | (20,841) | |||||||
Ending balance at Aug. 31, 2017 | 537,493 | 38,050 | 503,770 | (35,293) | 533,586 | 3,907 | $ 26,859 | $ 200 | ||
Ending balance (in shares) at Aug. 31, 2017 | 26,859 | 200 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 159,789 | 156,451 | 156,451 | 3,338 | ||||||
Other comprehensive income (loss), net of tax | (1,944) | (1,944) | (1,944) | |||||||
Reclassification of stranded tax effects of the Tax Act | 517 | 517 | 517 | |||||||
Distributions to noncontrolling interests | (2,796) | (2,796) | ||||||||
Purchase of noncontrolling interest | (600) | (183) | (183) | (417) | ||||||
Share repurchases | (17,361) | (16,845) | (17,361) | $ (516) | ||||||
Share repurchase (in shares) | (516) | |||||||||
Restricted stock withheld for taxes | (3,082) | (2,979) | (3,082) | $ (103) | ||||||
Restricted stock withheld for taxes (in shares) | (103) | |||||||||
Issuance of restricted stock | (262) | $ 262 | ||||||||
Issuance of restricted stock (in shares) | 262 | |||||||||
Share-based compensation expense | 18,965 | 18,965 | 18,965 | |||||||
Dividends | (20,871) | (20,871) | (20,871) | |||||||
Ending balance at Aug. 31, 2018 | 670,110 | 36,929 | 639,684 | (37,237) | 666,078 | 4,032 | $ 26,502 | $ 200 | ||
Ending balance (in shares) at Aug. 31, 2018 | 26,502 | 26,502 | 200 | 200 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 58,322 | 56,345 | 56,345 | 1,977 | ||||||
Other comprehensive income (loss), net of tax | (1,526) | (1,526) | (1,526) | |||||||
Distributions to noncontrolling interests | (1,677) | (1,677) | ||||||||
Share repurchases | (13,083) | (12,556) | (13,083) | $ (527) | ||||||
Share repurchase (in shares) | (527) | |||||||||
Restricted stock withheld for taxes | (7,484) | (7,206) | (7,484) | $ (278) | ||||||
Restricted stock withheld for taxes (in shares) | (278) | |||||||||
Issuance of restricted stock | (767) | $ 767 | ||||||||
Issuance of restricted stock (in shares) | 767 | |||||||||
Share-based compensation expense | 17,300 | 17,300 | 17,300 | |||||||
Dividends | (20,666) | (20,666) | (20,666) | |||||||
Ending balance at Aug. 31, 2019 | $ 701,296 | $ 33,700 | $ 675,363 | $ (38,763) | $ 696,964 | $ 4,332 | $ 26,464 | $ 200 | ||
Ending balance (in shares) at Aug. 31, 2019 | 26,464 | 26,464 | 200 | 200 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends per common share | $ 0.75 | $ 0.75 | $ 0.75 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 58,322 | $ 159,789 | $ 46,978 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Asset impairment charges (recoveries), net | 63 | (1,021) | (717) |
Exit-related (gains), asset impairments and accelerated depreciation, net | 23 | (1,000) | (407) |
Depreciation and amortization | 53,336 | 49,672 | 49,840 |
Inventory write-downs | 775 | 38 | 0 |
Deferred income taxes | 14,613 | (37,995) | 2,278 |
Undistributed equity in earnings of joint ventures | (1,452) | (1,953) | (3,674) |
Share-based compensation expense | 17,300 | 18,965 | 10,847 |
(Gain) loss on the disposal of assets, net | (1,545) | 56 | 448 |
Unrealized foreign exchange loss (gain), net | 148 | (104) | 361 |
Bad debt expense, net | 74 | 323 | 126 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | 9,478 | (44,941) | (36,195) |
Inventories | 33,466 | (24,280) | (22,207) |
Income taxes | (1,158) | (1,755) | (1,086) |
Prepaid expenses and other current assets | (859) | (109) | (1,704) |
Other long-term assets | 1,167 | (1,620) | 537 |
Accounts payable | (17,068) | 26,049 | 33,062 |
Accrued payroll and related liabilities | (19,117) | 4,889 | 12,389 |
Other accrued liabilities | (3,560) | 6,066 | 5,073 |
Environmental liabilities | (2,476) | 3,053 | 1,884 |
Other long-term liabilities | 518 | 4,404 | (1,101) |
Distributed equity in earnings of joint ventures | 2,692 | 1,150 | 3,638 |
Net cash provided by operating activities | 144,740 | 159,676 | 100,370 |
Cash flows from investing activities: | |||
Capital expenditures | (94,613) | (77,626) | (44,940) |
Purchase of cost method investment | 0 | 0 | (6,017) |
Acquisitions | (1,553) | (2,300) | 0 |
Joint venture receipts, net | 641 | 11 | 405 |
Proceeds from sale of assets | 4,070 | 6,517 | 5,158 |
Deposit on land option | 1,890 | 0 | 0 |
Net cash used in investing activities | (89,565) | (73,398) | (45,394) |
Cash flows from financing activities: | |||
Borrowings from long-term debt | 431,048 | 515,480 | 433,336 |
Repayment of long-term debt | (435,353) | (556,456) | (481,757) |
Payment of debt issuance costs | (102) | (2,590) | (112) |
Repurchase of Class A common stock | (13,083) | (17,361) | 0 |
Taxes paid related to net share settlement of share-based payment awards | (7,484) | (3,082) | (3,474) |
Distributions to noncontrolling interests | (1,677) | (2,796) | (2,271) |
Purchase of noncontrolling interest | 0 | (600) | 0 |
Dividends paid | (20,615) | (20,736) | (20,396) |
Net cash used in financing activities | (47,266) | (88,141) | (74,674) |
Effect of exchange rate changes on cash | (255) | (701) | 166 |
Net increase (decrease) in cash and cash equivalents | 7,654 | (2,564) | (19,532) |
Cash and cash equivalents as of beginning of year | 4,723 | 7,287 | 26,819 |
Cash and cash equivalents as of end of year | 12,377 | 4,723 | 7,287 |
Cash paid during the year for: | |||
Interest | 6,191 | 8,113 | 7,016 |
Income taxes, net | 3,527 | 17,203 | 148 |
Schedule of noncash investing and financing transactions: | |||
Purchases of property, plant and equipment included in current liabilities | $ 17,191 | $ 18,768 | $ 11,082 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2019 | |
Nature Of Operations [Abstract] | |
Nature of Operations | Note 1 – Nature of Operations Founded in 1906, Schnitzer Steel Industries, Inc., an Oregon corporation, is one of North America’s largest recyclers of ferrous and nonferrous scrap metal, including end-of-life vehicles, and a manufacturer of finished steel products. Schnitzer Steel Industries, Inc. and its consolidated subsidiaries, together, are referred to as the Company. 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 auto bodies that are processed into saleable recycled scrap metal. CSS operates a steel mini-mill that produces a range of finished steel long products using ferrous recycled scrap metal and other raw materials. CSS’s steel mill obtains substantially all of its 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. As of August 31, 2019, all of the Company’s facilities were located in the United States (“U.S.”) and its territories and Canada. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of Schnitzer Steel Industries, Inc. and its majority-owned and wholly-owned subsidiaries. The equity method of accounting is used for investments in joint ventures over which the Company has significant influence but does not have effective control. All significant intercompany account balances, transactions, profits and losses have been eliminated. All transactions and relationships with potential variable interest entities are evaluated to determine whether the Company is the primary beneficiary of the entities, therefore requiring consolidation. The Company does not have any variable interest entities requiring consolidation. 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 fiscal 2019 would have been higher by approximately $28 million, or 1%, 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. Discontinued Operations The results of discontinued operations are presented separately, net of tax, from the results of ongoing operations for all periods presented. The disposed components reflected in the results of discontinued operations during the periods presented consist of six auto parts stores for which the Company ceased operations in fiscal 2015. The expenses included in the results of discontinued operations are the direct operating expenses incurred by the disposed components that may be reasonably segregated from the costs of the ongoing operations of the Company . 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 $27 million 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 to 60 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 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. The allowance for doubtful accounts was $2 million and $3 million as of August 31, 2019 and 2018, respectively. 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 Consolidated Statements of Cash Flows and totaled $15 million, $15 million Inventories The Company’s inventories consist of processed and unprocessed scrap metal (ferrous, nonferrous, and mixed nonferrous recovered joint products arising from the manufacturing process), semi-finished steel products (billets), finished steel products (primarily rebar, wire rod, and merchant bar), used and salvaged vehicles, and supplies. Inventories are stated at the lower of cost and net realizable value. The Company determines the cost of ferrous and nonferrous scrap metal inventories using the average cost method and capitalizes substantially all direct processing costs and yard costs into inventory. The Company allocates material and production costs to joint products using the gross margin method. AMR determines the cost of used and salvaged vehicle inventory at its auto parts stores, which is reported within finished goods, based on the average price the Company pays for a vehicle and capitalizes the vehicle cost and substantially all production costs into inventory. CSS determines the cost of its semi-finished and finished steel product inventories based on average costs and capitalizes all direct and indirect costs of manufacturing into inventory. Indirect costs of manufacturing include general plant costs, maintenance and yard costs. The Company determines the cost of the substantial majority of its supplies inventory using the average cost method and reduces the carrying value for losses due to obsolescence. The Company considers estimated future selling prices when determining the estimated net realizable value of its inventory. As the Company generally sells its recycled ferrous metal under contracts that provide for shipment within 30 to 60 days after The accounting process the Company uses to record ferrous scrap metal quantities relies on significant estimates. With respect to estimating the quantities of unprocessed ferrous scrap metal inventory that are moved into production, management relies on weighed quantities of the processed ferrous material, adjusted for estimated metal recoveries and yields that are based on historical trends and other judgments by management. Actual recoveries and yields can vary depending on product quality, moisture content and the source of the unprocessed metal. The Company’s estimates are intended to reasonably reflect the quantities of unprocessed ferrous scrap metal that are used in the production of processed ferrous metal. To assist in validating the reasonableness of these estimates, management periodically reviews shrink factors and performs monthly physical inventories. Due to the inherent nature of the Company’s scrap metal inventories, including variations in product density, holding period and production processes utilized to manufacture the products, physical inventories will not necessarily detect all variances for scrap metal inventory such that estimates of quantities are required. To mitigate this risk, the Company further adjusts its ferrous physical inventories when the volume of a commodity is low and a physical inventory count is deemed to more accurately estimate the remaining volume. Property, Plant and Equipment, net Property, plant and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, while routine repair and maintenance costs are expensed as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs and was not material to any of the periods presented. When assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and resulting gains or losses are generally included in operating expense. Gains and losses from sales of assets related to an exit activity are reported within restructuring charges and other exit-related activities in the Consolidated Statements of Income. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Upon idling an asset, depreciation continues to be recorded. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. As of August 31, 2019, the useful lives used for depreciation and amortization were as follows: Useful Life (in years) Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Office equipment and other software licenses 3 to 10 Enterprise Resource Planning (“ERP”) systems 6 to 17 Prepaid Expenses The Company’s prepaid expenses, reported within prepaid expenses and other current assets in the Consolidated Balance Sheets, totaled $23 million and $22 million as of August 31, 2019 and 2018, respectively, and consisted primarily of deposits on capital purchases, prepaid insurance, prepaid rent and prepaid services. 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 Receivables from insurers represent the portion of insured losses expected to be recovered from the Company’s insurance carriers. The receivable is recorded at an amount not to exceed the recorded loss and only if the terms of legally enforceable insurance contracts support that the insurance recovery will not be disputed and is deemed collectible. Receivables from insurers totaled $89 million and $36 million as of August 31, 2019 and 2018, respectively, with the increase in fiscal 2019 relating primarily to adjustment of a contingent loss originally recorded in fiscal 2018 in connection with lawsuits arising from a 2016 motor vehicle collision for which the Company had insurance coverage. The foregoing lawsuits were settled and full payment of the settlements was made within the Company’s insurance policy limits in the first quarter of fiscal 2020. See “Contingencies – Other” in Note 8 – Commitments and Contingencies for further discussion of the contingent loss. 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 AMR and reported within other assets in the Consolidated Balance Sheets. The carrying value of the investment was $6 million Debt issuance costs consist primarily of costs incurred by the Company to enter into or modify its credit facilities. The Company reports deferred debt issuance costs within other assets in the Consolidated Balance Sheets and amortizes them to interest expense on a straight-line basis over the contractual term of the arrangement. Notes and other contractual receivables consist primarily of advances to entities in the business of extracting scrap metal through demolition and other activities, as well as receivables from counterparties to sales of equipment assets and to legal settlements. Repayment of these advances to suppliers is in either cash or scrap metal. The Company performs periodic reviews of its notes and other contractual receivables to identify credit risks and to assess the overall collectibility of the receivables, which typically involves consideration of the value of collateral which in the case of advances to suppliers is generally in the form of scrap metal extracted from demolition and construction projects. A note or other contractual receivable is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the agreement. Once a note or other contractual receivable has been identified as impaired, it is measured based on the present value of payments expected to be received, discounted at the receivable’s contractual interest rate, or for arrangements that are solely dependent on collateral for repayment, the estimated fair value of the collateral less estimated costs to sell. If the carrying value of the receivable exceeds its recoverable amount, an impairment is recorded for the difference. Long-Lived Assets The Company tests long-lived tangible and intangible assets for impairment at the asset group level, which is determined based on the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. For the Company’s metals recycling operations reported within AMR, an asset group generally consists of the regional shredding and export operation along with surrounding feeder yards. For regions with no shredding and export operations, each metals recycling yard is an asset group. For the Company’s auto parts operations, generally each auto parts store is an asset group. The combined steel manufacturing and metals recycling operations within CSS are a single asset group. The Company tests its asset groups for impairment when certain triggering events or changes in circumstances indicate that the carrying value of the asset group may be impaired. If the carrying value of the asset group is not recoverable because it exceeds the Company’s estimate of future undiscounted cash flows from the use and eventual disposition of the asset group, an impairment loss is recognized by the amount the carrying value exceeds its fair value, if any. The impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value. Fair value is determined primarily using the cost and market approaches. With respect to individual long-lived assets, changes in circumstances may merit a change in the estimated useful lives or salvage values of the assets, which are accounted for prospectively in the period of change. For such assets, the useful life is shortened based on the Company’s 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. Investments in Joint Ventures As of August 31, 2019, the Company had two 50%-owned joint venture interests which were accounted for under the equity method of accounting. One of the joint venture interests is presented as part of AMR operations, and one interest is presented as part of CSS operations. The joint venture within CSS sells recycled scrap metal to other operations within 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. As of August 31, 2019, the Company’s investments in equity method joint ventures have generated $8 million in cumulative A loss in value of an investment in a joint venture is recognized when the decline is other than temporary. Management considers all available evidence to evaluate the realizable value of its investments including the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the joint venture business, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Once management determines that an other-than-temporary impairment exists, the investment is written down to its fair value, which establishes a new cost basis. The Company determines fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. During fiscal 2018, the Company declassified two of its 50% joint venture interests from equity method classification as a result of the agreed-upon dissolution of the joint venture entities. The joint venture interests had previously been presented as part of AMR operations. During fiscal 2017, the Company sold one of its 50% joint venture interests, which had previously been presented as part of CSS operations. The Company recorded immaterial gains as a result of these transactions. During fiscal 2017, one of the Company’s joint venture interests sold real estate resulting in recognition of a $6 million gain by the joint venture, $3 million of which was attributable to the Company’s investment. The Company’s share of the gain is reported within (income) from joint ventures in the Consolidated Statements of Income. See Note 15 - Related Party Transactions for further detail on transactions with joint ventures. Goodwill and Other Intangible Assets, net Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually on July 1 When testing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determines that an impairment is more-likely-than-not, the Company is then required to perform the quantitative impairment test, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. When performing the quantitative impairment test, the Company applies a one-step quantitative test and records the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. When the Company is required to perform a quantitative goodwill impairment test, it estimates the fair value of its reporting units using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based weighted average cost of capital determined separately for each reporting unit. The determination of fair value involves the use of significant estimates and assumptions, including revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, discount rates, benefits associated with a taxable transaction and synergistic benefits available to market participants. In addition, to corroborate the reporting units’ valuation, the Company uses a market approach based on earnings multiple data and a reconciliation of the Company’s estimate of the aggregate fair value of the reporting units to the Company’s market capitalization, including consideration of a control premium. The Company did not record goodwill impairment charges in any of the periods presented. The Company tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The Company did not record impairment charges on indefinite-lived intangible assets in any of the periods presented. Acquisitions The Company recognizes the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. Contingent purchase consideration is recorded at fair value at the date of acquisition. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. Within one year from the date of acquisition, the Company may update the value allocated to the assets acquired and liabilities assumed and the resulting goodwill balance as a result of information received regarding the valuation of such assets and liabilities that was not available at the time of purchase. Measuring assets and liabilities at fair value requires the Company to determine the price that would be paid by a third party market participant based on the highest and best use of the assets or interests acquired. Acquisition costs are expensed as incurred. The Company acquired certain assets of an auto recycling business in northern California in fiscal 2019 and certain assets of a metals recycling business in Columbus, Georgia in fiscal 2018. These acquisitions were not material to the Company’s financial position or results of operations. Pro forma operating results for these acquisitions are not presented, since the aggregate results would not be significantly different than reported results. See Note 6 - Goodwill and Other Intangible Assets, net for further details. Restructuring Charges Restructuring charges consist of severance, contract termination and other restructuring-related costs. A liability for severance costs is typically recognized when the plan of termination has been communicated to the affected employees and is measured at its fair value at the communication date. Contract termination costs consist primarily of costs that will continue to be incurred under operating leases for their remaining terms without economic benefit to the Company. A liability for contract termination costs is recognized at the date the Company ceases using the rights conveyed by the lease contract and is measured at its fair value, which is determined based on the remaining contractual lease rentals reduced by estimated sublease rentals. A liability for other restructuring-related costs is measured at its fair value in the period in which the liability is incurred. Accrued Workers’ Compensation Costs The Company is self-insured for the significant majority of workers’ compensation claims with exposure limited by various stop-loss insurance policies. The Company estimates the costs of workers’ compensation claims based on the nature of the injury incurred and on guidelines established by the applicable state. An accrual is recorded based upon the amount of unpaid claims as of the balance sheet date. Accrued amounts recorded for individual claims are reviewed periodically as treatment progresses and adjusted to reflect additional information that becomes available. The estimated cost of claims incurred but not reported is included in the accrual. The Company accrued $8 million for the estimated cost of unpaid workers’ compensation claims as of August 31, 2019 and 2018, which are included in other accrued liabilities in the Consolidated Balance Sheets, with corresponding workers’ compensation insurance receivables of $4 million Environmental Liabilities The Company estimates future costs for known environmental remediation requirements and accrues for them on an undiscounted basis when it is probable that the Company has incurred a liability and the related costs can be reasonably estimated but the timing of incurring the estimated costs is unknown. The Company considers various factors when estimating its environmental liabilities. Adjustments to the liabilities are recorded to selling, general and administrative expense in the Consolidated Statements of Income when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or when expenditures are made for which liabilities were established. Legal costs incurred in connection with environmental contingencies are expensed as incurred. When only a wide range of estimated amounts can be reasonably established and no other amount within the range is a better estimate than another, the low end of the range is recorded in the financial statements. In a number of cases, it is possible that the Company may receive reimbursement through insurance or from other potentially responsible parties for a site or matter. In these situations, recoveries of environmental remediation costs from other parties are recognized when the claim for recovery is either realized or realizable. The amounts recorded for environmental liabilities are reviewed periodically as assessment and remediation progresses at individual sites or for particular matters and adjusted to reflect additional information that becomes available. Due to evolving remediation technology, changing regulations, possible third party contributions, the subjective nature of the assumptions used and other factors, amounts accrued could vary significantly from amounts paid. See “Contingencies – Environmental” in Note 8 – Commitments and Contingencies for further detail. Loss Contingencies The Company is subject to certain legal proceedings and contingencies in addition to those related to environmental liabilities discussed above in this Note, the outcomes of which are subject to significant uncertainty. The Company accrues for estimated losses if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company uses judgment and evaluates whether a loss contingency arising from litigation or an unasserted claim should be disclosed or recorded. The outcome of legal proceedings and other contingencies is inherently uncertain and often difficult to estimate. Accrued legal contingencies are reported within other accrued liabilities in the Consolidated Balance Sheets. See “Contingencies – Other” in Note 8 – Commitments and Contingencies for further detail. Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, and debt. The Company uses the market approach to value its financial assets and liabilities, determined using available market information. The net carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. For long-term debt, which is primarily at variable interest rates, fair value is estimated using observable inputs (Level 2) and approximates its carrying value. Fair Value Measurements Fair value is measured using inputs from the three levels of the fair value hierarchy. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are described as follows: • Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the determination of the fair value of the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs that are significant to the determination of the fair value of the asset or liability. When developing the fair value measurements, the Company uses quoted market prices whenever available or seeks to maximize the use of observable inputs and minimize the use of unobservable inputs when quoted market prices are not available. Derivatives Derivative contracts for commodities used in normal business operations that are settled by physical delivery, among other criteria, are eligible for and may be designated as normal purchases and normal sales. Contracts that qualify as normal purchases or normal sales are not marked-to-market. The Company does not use derivative instruments for trading or speculative purposes. Foreign Currency Translation and Transactions Assets and liabilities of the Company’s operations in Canada are translated into U.S. dollars at the period-end exchange rate, revenues and expenses of these operations are translated into U.S. dollars at the average exchange rate for the period, and cash flows of these operations are translated into U.S. dollars using the exchange rates in effect at the time of the cash flows. Translation adjustments are not included in determining net income for the period, but are recorded in accumulated other comprehensive income, a separate component of shareholders’ equity. Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency. Gains and losses on foreign currency transactions are generally included in determining net income for the period. The Company reports these gains and losses within other income, net in the Consolidated Statements of Income. Net realized and unrealized foreign currency transaction gains and losses were not material for fiscal 2019, 2018 or 2017. Common Stock Each share of Class A and Class B common stock is entitled to one vote. Additionally, each share of Class B common stock may be converted to one share of Class A common stock. As such, the Company reserves one share of Class A common stock for each share of Class B common stock outstanding. There are currently no meaningful distinctions between the rights of holders of Class A shares and Class B shares. Share Repurchases The Company accounts for the repurchase of stock at par value. All shares repurchased are deemed retired. Upon retirement of the shares, the Company records the difference between the weighted average cost of such shares and the par value of the stock as an adjustment to additional paid-in capital, with the excess recorded to retained earnings when additional paid-in capital is not sufficient. Revenue Recognition 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, auto bodies, 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 te |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 3 – Recent Accounting Pronouncements In February 2016, an accounting standard was issued that supersedes the lease standard existing at the time and requires a lessee to recognize a lease liability and a lease asset on its balance sheet for all leases greater than 12 months, including those classified as operating leases. The standard also expands the required quantitative and qualitative disclosures surrounding leases. Updates have been issued since February 2016 amending aspects of the initial standard, including providing an additional and optional transition method for adoption. The new lease accounting standard becomes effective for the Company on September 1, 2019. The Company expects to adopt the new guidance using the modified retrospective method, whereby it applies the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2019. The Company does not expect such cumulative-effect adjustment to be material. Adoption using the modified retrospective method does not have an impact on any prior period earnings of the Company, and no comparative prior periods will be adjusted for the new guidance. The Company expects to elect a package of practical expedients permitted under the transition guidance within the new lease accounting standard, which among other things, permit carrying forward the historical lease classification. The Company also expects to elect practical expedients exempting short-term leases from balance sheet recognition and permitting entities to not separate lease and non-lease components. Adoption of the new standard is expected to result in recognition of approximately $126 million and $128 million of operating lease right-of-use assets and liabilities, respectively, as of September 1, 2019. Payments for short-term leases will continue to be recognized in the income statement on a straight-line basis over the lease term. The new lease standard is not expected to materially impact the Company’s consolidated net income, and it will have no impact on its cash flows. The Company has assessed and will implement changes to its processes, systems (including implementing a software solution), and internal controls as a result of the new guidance. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2019 | |
Inventory Net [Abstract] | |
Inventories | Note 4 – Inventories Inventories consisted of the following as of August 31 (in thousands): 2019 2018 Processed and unprocessed scrap metal $ 81,313 $ 111,658 Semi-finished goods 8,712 15,551 Finished goods 53,796 39,809 Supplies 43,499 38,859 Inventories $ 187,320 $ 205,877 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Aug. 31, 2019 | |
Property Plant And Equipment Net [Abstract] | |
Property, Plant and Equipment, net | Note 5 – Property, Plant and Equipment, net Property, plant and equipment, net consisted of the following as of August 31 (in thousands): 2019 2018 Machinery and equipment $ 697,746 $ 679,520 Land and improvements 283,348 269,382 Buildings and leasehold improvements 112,244 108,882 ERP systems 17,760 17,760 Office equipment and other software licenses 43,960 43,175 Construction in progress 67,375 28,553 Property, plant and equipment, gross 1,222,433 1,147,272 Less accumulated depreciation (766,033 ) (731,561 ) Property, plant and equipment, net $ 456,400 $ 415,711 Depreciation expense for property, plant and equipment, which includes amortization expense for assets under capital leases, was $53 million |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Aug. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Note 6 – Goodwill and Other Intangible Assets, net 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. In the second quarter of fiscal 2018, the Company acquired certain assets of a metals recycling business in Columbus, Georgia for $2 million. The acquisition qualified as a business combination under the accounting rules and resulted in the recognition of $1 million of goodwill during the second quarter of fiscal 2018. The Company allocated the acquired goodwill to a reporting unit within the AMR operating segment. The reporting unit did not carry any goodwill immediately prior to the acquisition. 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 guidance 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. In the fourth quarter of fiscal 2019, the Company performed the annual goodwill impairment test as of July 1, 2019. As of the testing date, the balance of the Company’s goodwill was $170 million , and all but $1 million was carried by a single reporting unit within AMR. The gross change in the carrying amount of goodwill for the years ended August 31, 2019 and 2018 was as follows (in thousands): Goodwill Balance as of September 1, 2017 $ 167,835 Acquisition 1,118 Foreign currency translation adjustment (888 ) Balance as of August 31, 2018 168,065 Acquisition 1,575 Foreign currency translation adjustment (403 ) Balance as of August 31, 2019 $ 169,237 Accumulated goodwill impairment charges were $471 million The following table presents the Company’s intangible assets as of August 31 (in thousands): 2019 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Covenants not to compete $ 5,746 $ (2,862 ) $ 2,884 $ 5,591 $ (2,596 ) $ 2,995 Other intangible assets subject to amortization (1) 771 (254 ) 517 1,162 (880 ) 282 Indefinite-lived intangibles (2) 1,081 — 1,081 1,081 — 1,081 Total $ 7,598 $ (3,116 ) $ 4,482 $ 7,834 $ (3,476 ) $ 4,358 (1) Other intangible assets subject to amortization include leasehold interests, permits and licenses. (2) Indefinite-lived intangibles include trade names, permits and licenses, and real property options. Total intangible asset amortization expense was $ 1 million The estimated amortization expense, based on current intangible asset balances, during the next five fiscal years and thereafter is as follows (in thousands): Years Ending August 31, Estimated Amortization Expense 2020 $ 624 2021 389 2022 387 2023 332 2024 307 Thereafter 1,362 Total $ 3,401 |
Debt
Debt | 12 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 – Debt Debt consisted of the following as of August 31 (in thousands): 2019 2018 Bank revolving credit facilities, interest primarily at LIBOR plus a spread $ 96,835 $ 100,000 Capital lease obligations due through July 2029 7,774 6,787 Other debt obligations 487 589 Total debt 105,096 107,376 Less current maturities (1,321 ) (1,139 ) Debt, net of current maturities $ 103,775 $ 106,237 On August 24, 2018, the Company and certain of its subsidiaries entered into the First Amendment to the Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”) with Bank of America, N.A., as administrative agent, and the other lenders party thereto, which amended and restated the Company’s existing credit agreement. The Amended Credit Agreement provides for $700 million and C$15 million in senior secured revolving credit facilities maturing in August 2023. Prior to its amendment and renewal, the credit agreement provided for $335 million and C$15 million in senior secured revolving credit facilities. The Company incurred $3 million $97 million Interest rates on outstanding indebtedness under the Amended Credit Agreement are based, at the Company’s option, on either the London Interbank Offered Rate (“LIBOR”), or the Canadian equivalent, plus a spread of between 1.25% and 2.75%, with the amount of the spread based on a pricing grid tied to the Company’s consolidated funded debt to EBITDA ratio, or the greater of the prime rate, the federal funds rate plus 0.50% or the daily rate equal to one-month LIBOR plus 1.75%, in each case plus a spread of between zero and 1.50% based on a pricing grid tied to the Company’s consolidated funded debt to EBITDA ratio. In addition, commitment fees are payable on the unused portion of the credit facilities at rates between 0.15% and 0.45% based on a pricing grid tied to the Company’s consolidated funded debt to EBITDA ratio. The Amended Credit Agreement contains certain customary covenants, including covenants that limit the ability of the Company and its subsidiaries to enter into certain types of transactions. Financial covenants include covenants requiring maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. The Company’s obligations under the Amended Credit Agreement are guaranteed by substantially all of its subsidiaries. The credit facilities and the related guarantees are secured by senior first priority liens on certain of the Company’s and its subsidiaries’ assets, including equipment, inventory and accounts receivable. As of August 31, 2016, the Company had $8 million of tax-exempt economic development revenue bonds outstanding with the State of Oregon and scheduled to mature in January 2021. In August 2016, the Company exercised its option to redeem the bonds prior to maturity. The Company repaid the bonds in full in September 2016. The $8 million repayment is reported as a cash outflow from financing activities for the fiscal year ended August 31, 2017 on the Consolidated Statement of Cash Flows. Principal payments on long-term debt and capital lease obligations during the next five fiscal years and thereafter are as follows (in thousands): Year Ending August 31, Long-Term Debt Capital Lease Obligations Total 2020 $ 94 $ 1,917 $ 2,011 2021 47 1,799 1,846 2022 49 1,751 1,800 2023 96,887 1,622 98,509 2024 56 1,346 1,402 Thereafter 189 1,694 1,883 Total 97,322 10,129 107,451 Amounts representing interest — (2,355 ) (2,355 ) Total less interest $ 97,322 $ 7,774 $ 105,096 The Company maintains stand-by letters of credit to provide for certain obligations including workers’ compensation and performance bonds. The Company had $10 million outstanding under these arrangements as of August 31, 2019 and 2018. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Aug. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies Commitments The Company leases a portion of its capital equipment and certain of its facilities under leases that expire at various dates through fiscal 2047. The majority of the Company’s facility lease agreements include renewal options and rent escalation clauses. Rent expense was $27 million The table below sets forth the Company’s future minimum obligations under non-cancelable operating leases as of August 31, 2019 (in thousands): Year Ending August 31, Operating Leases 2020 $ 21,286 2021 15,301 2022 12,488 2023 10,419 2024 5,035 Thereafter 16,095 Total $ 80,624 Contingencies – Environmental Changes in the Company’s environmental liabilities for the years ended August 31, 2019 and 2018 were as follows (in thousands): Balance 9/1/2017 Liabilities Established (Released), Net Payments and Other Ending Balance 8/31/2018 Liabilities Established (Released), Net Payments and Other Ending Balance 8/31/2019 Short- Term Long- Term $ 48,398 $ 9,172 $ (3,738 ) $ 53,832 $ 1,302 $ (3,335 ) $ 51,799 $ 6,030 $ 45,769 Recycling Operations As of August 31, 2019 and 2018, the Company’s recycling operations had environmental liabilities of $52 million 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 inc urred over $155 mi 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, and in August 2019, the court issued an order denying the motions to dismiss and staying the action. A number of parties have filed to appeal the court’s denial of the motions to dismiss, which filing the Company joined in part. 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 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 fiscal 2018, resulting in no net impact to the Company’s consolidated results of operations. The Company’s loss contingencies as of August 31, 2019 and 2018 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. EPA has reviewed the report, finding with a few limited corrections that the data is of suitable quality and generally acceptable and stating that such data will be used, in addition to existing and forthcoming design-level data, to inform implementation of the ROD. However, EPA did not agree that the data or the analysis support the conclusions presented in the report. The Company and other PRPs disagree with EPA’s position on use of the more recent data and are reviewing EPA’s comments and the Company’s options. 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 who have not entered into consent agreements to perform remedial design by the end of 2019. The Company has 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 but could take three to four years. 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, which is on-going. The Company would expect the next major stage of the allocation process to proceed in parallel with the remedial design process. 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 August 31, 2019 and August 31, 2018, other than Portland Harbor, include actual or possible investigation and cleanup costs from historical contamination at sites currently or formerly owned or 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 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 August 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 and $28 million based In addition, the Company’s loss contingencies as of each of August 31, 2019 and August 31, 2018 Steel Manufacturing Operations The Company’s steel manufacturing operations had no known environmental liabilities as 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 its environmental contingencies . Historically 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 fiscal 2019, the Company settled three of the five lawsuits for a total of $35 million. Subsequent to the Company’s fiscal 2019 year end, it settled the two remaining lawsuits for a total of $68 million. The aggregate settlement amount of $103 million was substantially covered by insurance, resulting in no net impact to the Company’s consolidated results of operations. As of August 31, 2019 and 2018, the Company had accrued loss contingencies and offsetting insurance receivables related to the lawsuits totaling $83 million and $30 million, respectively. The full amount accrued as of August 31, 2019 was paid in the first quarter of fiscal 2020. In addition to legal proceedings relating to the contingencies described above, 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 such 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 | 12 Months Ended |
Aug. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 9 – Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, are as follows as of August 31, 2019, 2018 and 2017 (in thousands): Foreign Currency Translation Adjustments Pension Obligations, net Total Balance as of September 1, 2016 $ (34,539 ) $ (5,576 ) $ (40,115 ) Other comprehensive income before reclassifications 2,711 1,477 4,188 Income tax expense — (194 ) (194 ) Other comprehensive income before reclassifications, net of tax 2,711 1,283 3,994 Amounts reclassified from accumulated other comprehensive loss — 851 851 Income tax benefit — (23 ) (23 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 828 828 Net periodic other comprehensive income 2,711 2,111 4,822 Balance as of August 31, 2017 (31,828 ) (3,465 ) (35,293 ) Other comprehensive (loss) income before reclassifications (2,301 ) 64 (2,237 ) Income tax benefit — 172 172 Other comprehensive (loss) income before reclassifications, net of tax (2,301 ) 236 (2,065 ) Amounts reclassified from accumulated other comprehensive loss — 536 536 Income tax benefit — (415 ) (415 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 121 121 Net periodic other comprehensive (loss) income (2,301 ) 357 (1,944 ) Balance as of August 31, 2018 (34,129 ) (3,108 ) (37,237 ) Other comprehensive loss before reclassifications (1,560 ) (326 ) (1,886 ) Income tax benefit — 65 65 Other comprehensive loss before reclassifications, net of tax (1,560 ) (261 ) (1,821 ) Amounts reclassified from accumulated other comprehensive loss — 369 369 Income tax benefit — (74 ) (74 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 295 295 Net periodic other comprehensive (loss) income (1,560 ) 34 (1,526 ) Balance as of August 31, 2019 $ (35,689 ) $ (3,074 ) $ (38,763 ) In the second quarter of fiscal 2018, the Company adopted an accounting standard update that allowed 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 during the year ended August 31, 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 Consolidated Statements of Income in all periods presented. |
Revenue
Revenue | 12 Months Ended |
Aug. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 10 - Revenue Disaggregation of Revenues The table below illustrates the Company’s revenues disaggregated by major product and sales destination for each reportable segment (in thousands): Year Ended August 31, 2019 AMR CSS Intercompany Revenue Eliminations Total Major product information: Ferrous revenues $ 1,123,180 $ 51,963 $ (10,424 ) $ 1,164,719 Nonferrous revenues 430,361 38,809 (1,147 ) 468,023 Steel revenues (1) — 367,956 — 367,956 Retail and other revenues 131,436 688 (41 ) 132,083 Total revenues $ 1,684,977 $ 459,416 $ (11,612 ) $ 2,132,781 Revenues based on sales destination: Foreign $ 1,047,546 $ 93,531 $ — $ 1,141,077 Domestic 637,431 365,885 (11,612 ) 991,704 Total revenues $ 1,684,977 $ 459,416 $ (11,612 ) $ 2,132,781 (1) Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and manufacturing scrap. 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 August 31, 2019 and August 31, 2018, receivables from contracts with customers, net of an allowance for doubtful accounts, totaled $142 million 97% 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 Consolidated Balance Sheets and totaled $3 million $8 million |
Employee Benefits
Employee Benefits | 12 Months Ended |
Aug. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | Note 11 – Employee Benefits The Company and certain of its subsidiaries have or contribute to qualified and nonqualified retirement plans covering substantially all employees. These plans include a defined benefit pension plan, a supplemental executive retirement benefit plan (“SERBP”), multiemployer pension plans and defined contribution plans. Defined Benefit Pension Plan and Supplemental Executive Retirement Benefit Plan The Company maintains a qualified defined benefit pension plan for certain nonunion employees. Effective June 30, 2006, the Company froze this plan and ceased accruing further benefits for employee service. The Company reflects the funded status of the defined benefit pension plan as a net asset or liability in its Consolidated Balance Sheets. Changes in its funded status are recognized in comprehensive income. The Company amortizes as a component of net periodic pension benefit cost a portion of the net gain or loss reported within accumulated other comprehensive loss if the beginning-of-year net gain or loss exceeds 5% of the greater of the benefit obligation or the market value of plan assets. Net periodic pension benefit cost was not material for all periods assets exceeding the projected benefit obligation by comprised entirely Level 1 investments as of August 31, 2019 and 2018. Level 1 investments are valued based on quoted market pric No was 2.83% and 4.01% between $1 million and $4 million per The Company also has a nonqualified SERBP for certain executives. A restricted trust fund has been established with assets invested in life insurance policies that can be used for plan benefits, although the fund is subject to claims of the Company’s general creditors. The trust fund is included in other assets, the current portion of the pension liability is included in other accrued liabilities, and the noncurrent portion of the pension liability is included in other long-term liabilities in the Company’s Consolidated Balance Sheets. The trust fund was valued at $4 million as of August 31, 2019 and not material Because the defined benefit pension plan and the SERBP are not material to the Consolidated Financial Statements, other disclosures required by U.S. GAAP have been omitted. Multiemployer Pension Plans The Company contributes to 14 multiemployer One of the multiemployer plans that the Company contributes to is the Steelworkers Western Independent Shops Pension Plan (“WISPP,” EIN 90-0169564, Plan No. 001) benefiting the union employees of the Company’s steel manufacturing operations, which are covered by a collective bargaining agreement that will expire on March 31, 2022. As of October 1, 2018, the WISPP was certified by the plan’s actuaries as being in the Green Zone, as defined by the Pension Protection Act of 2006. The Company In 2004, the Internal Revenue Service (“IRS”) approved a seven-year extension of the period over which the WISPP may amortize unfunded liabilities, conditioned upon maintenance of certain minimum funding levels. In 2014, the WISPP obtained relief from the specified funding requirements from the IRS, which requires that the WISPP meet a minimum funded percentage on each valuation date and achieve a funded percentage of 100% as of October 1, 2029. Based on the most recent actuarial valuation for the WISPP, the funded percentage using the valuation method prescribed by the IRS satisfied the minimum funded percentage requirement. Company contributions to all of the multiemployer plans were $6 million, $5 million and $4 million for the years ended August 31, 2019, 2018 and 2017, respectively. Defined Contribution Plans The Company has several defined contribution plans covering certain employees. Company contributions to the defined contribution plans totaled $4 million, $4 million and $3 million for the years ended August 31, 2019, 2018 and 2017, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Aug. 31, 2019 | |
Share Based Compensation [Abstract] | |
Share-based Compensation | Note 12 – Share-Based Compensation The Company’s 1993 Stock Incentive Plan, as amended, (the “Plan”) was established to provide for the grant of stock-based compensation awards to its employees, consultants and directors. The Plan authorizes the grant of restricted shares, restricted stock units, performance-based awards including performance share awards, stock options, stock appreciation rights and other stock-based awards. The Plan is administered by the Compensation Committee of the Company’s Board of Directors (“Compensation Committee”). There are 12.2 million $17 million Restricted Stock Units (“RSUs”) During the years ended August 31, 2019, 2018 and 2017, the Compensation Committee granted 261,642, 252,865 and 314,862 RSUs, respectively, to the Company’s key employees and employee directors under the Plan. RSUs generally vest 20% per The estimated fair value of an RSU is based on the market closing price of the underlying Class A common stock on the date of grant. The weighted average grant date fair value of RSUs granted was $27.61, $26.60 and $20.95 or to the date retirement eligibility is achieved (if before the end of the service period) $6 million A summary of the Company’s RSU activity for the year ended August 31, 2019 is as follows: Number of Units (in thousands) Weighted Average Grant Date Fair Value Outstanding as of August 31, 2018 812 $ 22.59 Granted 262 $ 27.61 Vested (257 ) $ 22.75 Forfeited (19 ) $ 24.23 Outstanding as of August 31, 2019 798 $ 24.14 The total fair value of RSUs which vested, based on the market closing price of the underlying Class A common stock on the vesting date, for the years ended August 31, 2019, 2018 and 2017, respectively. As of August 31, 2019, total unrecognized compensation costs related to unvested RSUs amounted to $6 million, which is expected to be recognized over a weighted average period of . Performance Share Awards The Plan authorizes performance-based awards to certain employees subject to certain conditions and restrictions. Vesting is subject to both the continued employment of the participant with the Company and the achievement of certain performance goals established by the Compensation Committee. A participant generally must be employed by the Company on October 31 following the end of the performance period to receive an award payout. However, adjusted awards will be paid if employment terminates earlier on account of a qualifying employment termination event such as death, disability, retirement, termination without cause after the first year of the performance period or a sale of the Company or the reportable segments for which the participant works. The Compensation Committee determined that performance share awards granted in fiscal years 2019, 2018 and 2017 comprise two separate and distinct awards with different vesting conditions. Awards vest if the The Company estimates the fair value of TSR awards using a Monte-Carlo simulation model utilizing several key assumptions, including the following for TSR awards granted during the fiscal years ended August 31: 2019 2018 2017 Expected share price volatility (SSI) 42.5 % 44.3 % 40.9 - 43.3% Expected share price volatility (Peer group) 51.4 % 55.4 % 52.3 - 55.1% Expected correlation to peer group companies 35.6 % 35.4 % 36.2 - 36.5% Risk-free rate of return 2.89 % 1.79 % 1.11 - 1.31% The compensation expense for the TSR awards based on the grant-date fair value, net of estimated forfeitures, is recognized over the requisite service period (or to the date a qualifying employment termination event entitles the recipient to a prorated award, if before the end of the service period), regardless of whether the market condition has been or will be satisfied. Compensation expense for TSR awards was $4 million, $3 million and $2 million for the years The fair value of the ROCE and CFROI awards granted is based on the market closing price of the underlying Class A common stock on the grant date. The Company accrues compensation cost for ROCE and CFROI awards based on the probable outcome of achieving specified performance conditions, net of estimated forfeitures, over the requisite service period (or to the date a qualifying employment termination event entitles the recipient to a prorated award, if before the end of the service period). The Company reassesses whether achievement of the ROCE and CFROI performance conditions is probable at each reporting date. the end of the service period, all related compensation cost previously recognized is reversed. Compensation expense for ROCE and CFROI awards was $6 million, $8 million and $2 million for During the years ended August 31, 2019, 2018 and 2017, the Compensation Committee granted a total of 254,620 (123,812 TSR and 130,808 119,763 126,398 as $28.37, . A summary of the Company’s performance-based awards activity for the year ended August 31, 2019 is as follows: Number of Awards (in thousands) Weighted Average Grant Date Fair Value Outstanding as of August 31, 2018 880 $ 22.09 Granted 255 $ 28.37 Performance achievement (1) 170 $ 18.54 Vested (500 ) $ 18.78 Forfeited (32 ) $ 22.75 Outstanding as of August 31, 2019 773 $ 25.49 (1) Reflects the net number of awards achieved above target levels based on actual performance measured at the end of the performance period. The total fair value of performance share awards which vested, based on the market closing price of the Company’s Class A common stock on the vesting date, was $13 million and $4 million for the years ended August 31, 2019 and 2017, respectively. No performance shares vested in fiscal year 2018. As of August 31, 2019, total unrecognized compensation costs related to unvested performance share awards amounted to $8 million, which is expected to be recognized over a weighted average period of 2 years. Deferred Stock Units (“DSUs”) The Deferred Compensation Plan for Non-Employee Directors (“DSU Plan”) provides for the issuance of DSUs to non-employee directors to be granted under the DSU Plan. Each DSU gives the director the right to receive one share of Class A common stock at a future date. Immediately following the annual meeting of shareholders, each non-employee director will receive DSUs which will become fully vested on the day before the next annual meeting, subject to continued service on the Board. The compensation expense associated with the DSUs granted is recognized over the requisite service period of the awards. The Company will issue Class A common stock to a director pursuant to vested DSUs in a lump sum in January of the first year after the director ceases to be a director of the Company, subject to the right of the director to elect an installment payment program under the DSU Plan. DSUs granted during the years ended August 31, 2019, 2018 and 2017 totaled 31,218 were not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 – Income Taxes Income from continuing operations before income taxes was as follows for the years ended August 31 (in thousands): 2019 2018 2017 United States $ 69,476 $ 131,518 $ 43,871 Foreign 6,764 10,335 4,819 Total $ 76,240 $ 141,853 $ 48,690 Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands): 2019 2018 2017 Current: Federal $ 2,690 $ 19,511 $ (1,130 ) State 315 894 190 Foreign 52 — (16 ) Total current tax expense (benefit) 3,057 20,405 (956 ) Deferred: Federal 12,930 (5,700 ) 2,046 State 794 (1,962 ) 232 Foreign 889 (30,333 ) — Total deferred tax expense (benefit) 14,613 (37,995 ) 2,278 Total income tax expense (benefit) $ 17,670 $ (17,590 ) $ 1,322 A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows: 2019 2018 2017 Federal statutory rate 21.0 % 25.7 % 35.0 % State taxes, net of credits 1.2 0.4 1.8 Foreign income taxed at different rates (0.2 ) (0.5 ) (1.9 ) Valuation allowance on deferred tax assets (0.2 ) (35.8 ) (31.2 ) Federal rate change — (4.9 ) — Non-deductible officers’ compensation 1.8 1.6 2.2 Noncontrolling interests (0.5 ) (0.6 ) (1.8 ) Research and development credits (0.5 ) (0.6 ) (1.5 ) Tax return to provision adjustment 0.5 — — Unrecognized tax benefits 0.7 3.4 1.3 Realized foreign investment basis (0.4 ) (0.2 ) (0.9 ) Excess tax benefit from stock-based compensation (1.2 ) (0.3 ) — Other 1.0 (0.6 ) (0.3 ) Effective tax rate 23.2 % (12.4 )% 2.7 % On December 22, 2017, the President of the United States signed and enacted into law comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“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 . 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 fiscal 2018 also reflected application of the Tax Act’s lower federal statutory corporate tax rate to fiscal 2018 taxable income. Other pertinent changes in the Tax Act include, but are not limited to, the acceleration of deductions for qualified property placed in service after September 27, 2017, limitations to the deductibility of some executive compensation, and the elimination of the deduction for qualified domestic production activities. Changes in the Tax Act that did not significantly impact the Company upon enactment include implementation of a modified territorial tax system and other modifications to how foreign earnings are subject to U.S. tax, including a tax on Global Intangible Low-Taxed Income which the Company has elected to treat as period costs if and when incurred. The Company’s accounting for the impacts of the Tax Act was complete as of November 30, 2018. The Company did not record any material adjustments to the provisional amounts recorded in the second quarter of fiscal 2018 related to the Tax Act. Effective Tax Rate The Company’s effective tax rate from continuing operations in fiscal 2019 was an expense of 23.2% a tax benefit on release of valuation allowances against certain deferred tax assets, resulting in recognition of discrete tax benefits totaling $37 million in f The Company’s effective tax rate from continuing operations in fiscal 2017 was an expense of 2.7%, which was lower than the U.S. federal statutory corporate rate at the time of 35% primarily due to the Company’s full valuation allowance positions and federal income tax refund claims, partially offset by increases in deferred tax liabilities from indefinite-lived assets in all jurisdictions. Deferred tax assets and liabilities comprised the following as of August 31 (in thousands): 2019 2018 Deferred tax assets: Amortizable goodwill and other intangibles $ 22,646 $ 27,433 State credit carryforwards 8,202 8,243 Environmental liabilities 7,164 7,853 Net operating loss carryforwards 7,122 7,206 Employee benefit accruals 6,289 10,677 Inventory valuation methods 1,748 944 Other 6,405 6,320 Valuation allowances (16,436 ) (16,484 ) Total deferred tax assets 43,140 52,192 Deferred tax liabilities: Accelerated depreciation and other basis differences 37,493 31,622 Prepaid expense acceleration 2,263 1,979 Total deferred tax liabilities 39,756 33,601 Net deferred tax asset $ 3,384 $ 18,591 As of August 31, 2019, foreign operating loss carryforwards were $16 million 2024 between 2019 and 2032 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. In fiscal 2018, the Company released valuation allowances against certain U.S. federal and state and Canadian deferred tax assets resulting in discrete tax benefits totaling $37 million. The release of these valuation allowances was the result of sufficient positive evidence at the time, including cumulative income in the Company’s U.S. and Canadian tax jurisdictions 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. Canadian deferred tax assets against which the Company continues to maintain a valuation allowance relate to indefinite-lived assets. Accounting for Uncertainty in Income Taxes The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands): 2019 2018 2017 Unrecognized tax benefits, as of the beginning of the year $ 5,054 $ 5,548 $ 4,724 Additions (reductions) for tax positions of prior years (151 ) 171 (120 ) Additions for tax positions of the current year 507 596 944 Reduction attributable to federal tax reform — (1,261 ) — Unrecognized tax benefits, as of the end of the year $ 5,410 $ 5,054 $ 5,548 The Company does not anticipate any material changes to the reserve in the next 12 months. The recognized amounts of tax-related penalties and interest were not material for all periods presented. 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 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 14 – Net Income Per Share The following table sets forth the information used to compute basic and diluted net income per share attributable to SSI shareholders for the years ended August 31 (in thousands): 2019 2018 2017 Income from continuing operations $ 58,570 $ 159,443 $ 47,368 Net income attributable to noncontrolling interests (1,977 ) (3,338 ) (2,467 ) Income from continuing operations attributable to SSI shareholders 56,593 156,105 44,901 (Loss) income from discontinued operations, net of tax (248 ) 346 (390 ) Net income attributable to SSI shareholders $ 56,345 $ 156,451 $ 44,511 Computation of shares: Weighted average common shares outstanding, basic 27,527 27,645 27,537 Incremental common shares attributable to dilutive performance share, RSU and DSU awards 695 944 604 Weighted average common shares outstanding, diluted 28,222 28,589 28,141 Common stock equivalent shares of 92,873, 62,019 and 251,899 were considered antidilutive and were excluded from the calculation of diluted net income per share attributable to SSI shareholders for the years ended August 31, 2019, 2018 and 2017, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15 – Related Party Transactions The Company purchases recycled metal from its joint venture operations at prices that approximate fair market value. These purchases totaled $15 million, $16 million and $14 million for the years ended August 31, 2019, 2018 and 2017, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 16 – 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. 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 auto bodies that are processed into saleable recycled scrap metal. CSS operates a steel mini-mill that produces a range of finished steel long products using ferrous recycled scrap metal and other raw materials. CSS’s steel mill obtains substantially all of its 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 Company’s allocable portion of the results of these joint ventures is reported within the segment results. As of August 31, 2019, the Company had two 50%-owned joint venture interests, one presented as part of AMR operations, and one presented as part of CSS operations. The joint venture within CSS sells recycled scrap metal to other operations within 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. During fiscal 2018, two of the Company’s 50% joint venture interests presented as part of AMR operations dissolved. During fiscal 2017, the Company sold one of its 50% joint venture interests presented as part of CSS operations. 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 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, charges (net of recoveries) 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. In the fourth quarter of fiscal 2018, the Company modified its measurement of segment operating income to classify all legacy environmental charges within Corporate in order to align the measures with how the Chief Executive Officer, who is considered the Company’s chief operating decision maker, reviews performance and makes decisions on resource allocation. The change has been applied prospectively beginning in the fourth quarter of fiscal 2018, and such legacy environmental charges incurred during the quarter are reported within the Corporate division. In the fourth quarter of fiscal 2018, the Company recorded $1 million of legacy environmental charges to the Corporate division that, prior to the change, would have been classified within AMR. Legacy environmental charges reflected in AMR’s operating results prior to the change are not material to the Consolidated Financial Statements either individually or in the aggregate. Environmental charges are reported within selling, general and administrative expense in the Consolidated Statements of Income. The following is a summary of the Company’s total assets as of August 31 (in thousands): 2019 2018 Total assets: Auto and Metals Recycling (1) $ 1,561,267 $ 1,485,626 Cascade Steel and Scrap 769,930 740,967 Total segment assets 2,331,197 2,226,593 Corporate and eliminations (2) (1,170,451 ) (1,121,776 ) Total assets $ 1,160,746 $ 1,104,817 Property, plant and equipment, net (3) $ 456,400 $ 415,711 (1) AMR total assets include $3 million and $4 million (2) The substantial majority of Corporate and eliminations total assets consist of Corporate intercompany payables to the Company’s operating segments and intercompany eliminations. (3) Property, plant and equipment, net includes $14 million The table below illustrates the Company’s results from continuing operations by reportable segment for the years ended August 31 (in thousands): 2019 2018 2017 AMR: Revenues $ 1,684,977 $ 1,908,966 $ 1,363,618 Less: Intersegment revenues (11,612 ) (24,892 ) (15,647 ) AMR external customer revenues 1,673,365 1,884,074 1,347,971 CSS: Revenues 459,416 480,641 339,620 Total revenues $ 2,132,781 $ 2,364,715 $ 1,687,591 Depreciation and amortization: AMR $ 38,816 $ 35,564 $ 34,853 CSS 11,781 11,724 12,525 Segment depreciation and amortization 50,597 47,288 47,378 Corporate 2,739 2,384 2,462 Total depreciation and amortization $ 53,336 $ 49,672 $ 49,840 Capital expenditures: AMR $ 78,706 $ 67,099 $ 34,575 CSS 15,345 9,600 10,224 Segment capital expenditures 94,051 76,699 44,799 Corporate 562 927 141 Total capital expenditures $ 94,613 $ 77,626 $ 44,940 Reconciliation of the Company’s segment operating income to income from continuing operations before income taxes: AMR (1) $ 95,991 $ 169,120 $ 91,405 CSS (2) 31,951 38,286 5,275 Segment operating income 127,942 207,406 96,680 Restructuring charges and other exit-related activities (365 ) 661 109 Corporate and eliminations (43,712 ) (59,079 ) (40,776 ) Operating income 83,865 148,988 56,013 Interest expense (8,266 ) (8,983 ) (8,081 ) Other income, net 641 1,848 758 Income from continuing operations before income taxes $ 76,240 $ 141,853 $ 48,690 (1) AMR operating income includes less than $1 million, less than $(1) million, and $2 million in income (loss) from joint ventures accounted for by the equity method in fiscal 2019, 2018 and 2017, respectively. (2) CSS operating income includes $1 million, The following revenues from external customers are presented by major product and based on the sales destination for the years ended August 31 (in thousands): 2019 2018 2017 Major product information: Ferrous revenues $ 1,164,719 $ 1,328,447 $ 855,161 Nonferrous revenues 468,023 529,466 425,989 Steel revenues (1) 367,956 367,560 280,767 Retail and other revenues 132,083 139,242 125,674 Total revenues $ 2,132,781 $ 2,364,715 $ 1,687,591 Revenues based on sales destination: Foreign $ 1,141,077 $ 1,354,460 $ 894,265 Domestic 991,704 1,010,255 793,326 Total revenues $ 2,132,781 $ 2,364,715 $ 1,687,591 (1) Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and manufacturing scrap. (2) In fiscal 2019, the Company modified its categories of revenues from external customers by major product. The major product revenues for fiscal 2018 and 2017 have been revised to conform to the current presentation, with such revisions being immaterial to each year. In fiscal 2019, 2018 and 2017, the Company had no external customer that accounted for more than 10% of 2019 % of Revenue 2018 % of Revenue 2017 % of Revenue Turkey (1) N/A N/A $ 262,835 11 % N/A N/A China (1) N/A N/A $ 255,097 11 % $ 216,231 13 % (1) |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Aug. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) In the opinion of management, this unaudited quarterly financial summary includes all adjustments necessary for a fair statement of the results for the periods represented (in thousands, except per share amounts): Fiscal 2019 First Second Third Fourth Revenues $ 564,020 $ 473,565 $ 547,396 $ 547,800 Cost of goods sold $ 490,132 $ 414,688 $ 474,598 $ 479,117 Operating income $ 22,689 $ 19,036 $ 24,459 $ 17,681 Income from continuing operations attributable to SSI shareholders $ 16,260 $ 13,030 $ 15,682 $ 11,621 Basic income per share from continuing operations attributable to SSI shareholders $ 0.59 $ 0.47 $ 0.57 $ 0.42 Diluted income per share from continuing operations attributable to SSI shareholders $ 0.57 $ 0.46 $ 0.56 $ 0.41 Net income $ 16,618 $ 13,297 $ 16,440 $ 11,967 Net income attributable to SSI shareholders $ 16,188 $ 12,892 $ 15,690 $ 11,575 Basic net income per share attributable to SSI shareholders $ 0.59 $ 0.47 $ 0.57 $ 0.42 Diluted net income per share attributable to SSI shareholders $ 0.57 $ 0.46 $ 0.56 $ 0.41 Fiscal 2018 First Second Third Fourth Revenues $ 483,279 $ 559,443 $ 652,416 $ 669,577 Cost of goods sold $ 406,251 $ 472,462 $ 549,164 $ 582,608 Operating income $ 26,423 $ 33,358 $ 51,234 $ 37,973 Income from continuing operations attributable to SSI shareholders $ 18,399 $ 40,852 $ 37,458 $ 59,396 Basic income per share from continuing operations attributable to SSI shareholders $ 0.66 $ 1.47 $ 1.35 $ 2.17 Diluted income per share from continuing operations attributable to SSI shareholders $ 0.64 $ 1.42 $ 1.31 $ 2.08 Net income $ 19,221 $ 41,919 $ 38,448 $ 60,201 Net income attributable to SSI shareholders $ 18,364 $ 41,016 $ 37,402 $ 59,669 Basic net income per share attributable to SSI shareholders $ 0.66 $ 1.48 $ 1.35 $ 2.18 Diluted net income per share attributable to SSI shareholders $ 0.64 $ 1.42 $ 1.31 $ 2.09 In the second quarter of fiscal 2018, results included an income tax benefit of $7 million related to the impacts of U.S. federal tax legislation enacted during the quarter, and a discrete income tax benefit of $7 million related to the release of valuation allowances against certain U.S. and state deferred tax assets. In the fourth quarter of fiscal 2018, results included a discrete income tax benefit of $30 million related to the release of valuation allowances against certain deferred tax assets. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Aug. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts For the Years Ended August 31, 2019, 2018 and 2017 (In thousands) Column A Column B Column C Column D Column E Description Balance at Beginning of Period Charges to Cost and Expenses Deductions Balance at End of Period Fiscal 2019 Allowance for doubtful accounts $ 2,586 $ 74 $ (1,091 ) $ 1,569 Deferred tax valuation allowance $ 16,484 $ 472 $ (520 ) $ 16,436 Fiscal 2018 Allowance for doubtful accounts $ 2,280 $ 323 $ (17 ) $ 2,586 Deferred tax valuation allowance $ 67,348 $ — $ (50,864 ) $ 16,484 Fiscal 2017 Allowance for doubtful accounts $ 2,315 $ 126 $ (161 ) $ 2,280 Deferred tax valuation allowance $ 83,891 $ 690 $ (17,233 ) $ 67,348 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Schnitzer Steel Industries, Inc. and its majority-owned and wholly-owned subsidiaries. The equity method of accounting is used for investments in joint ventures over which the Company has significant influence but does not have effective control. All significant intercompany account balances, transactions, profits and losses have been eliminated. All transactions and relationships with potential variable interest entities are evaluated to determine whether the Company is the primary beneficiary of the entities, therefore requiring consolidation. The Company does not have any variable interest entities requiring consolidation. |
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 fiscal 2019 would have been higher by approximately $28 million, or 1%, 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. |
Discontinued Operations | Discontinued Operations The results of discontinued operations are presented separately, net of tax, from the results of ongoing operations for all periods presented. The disposed components reflected in the results of discontinued operations during the periods presented consist of six auto parts stores for which the Company ceased operations in fiscal 2015. The expenses included in the results of discontinued operations are the direct operating expenses incurred by the disposed components that may be reasonably segregated from the costs of the ongoing operations of the Company . |
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 $27 million |
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 to 60 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 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. The allowance for doubtful accounts was $2 million and $3 million as of August 31, 2019 and 2018, respectively. 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 Consolidated Statements of Cash Flows and totaled $15 million, $15 million |
Inventories | Inventories The Company’s inventories consist of processed and unprocessed scrap metal (ferrous, nonferrous, and mixed nonferrous recovered joint products arising from the manufacturing process), semi-finished steel products (billets), finished steel products (primarily rebar, wire rod, and merchant bar), used and salvaged vehicles, and supplies. Inventories are stated at the lower of cost and net realizable value. The Company determines the cost of ferrous and nonferrous scrap metal inventories using the average cost method and capitalizes substantially all direct processing costs and yard costs into inventory. The Company allocates material and production costs to joint products using the gross margin method. AMR determines the cost of used and salvaged vehicle inventory at its auto parts stores, which is reported within finished goods, based on the average price the Company pays for a vehicle and capitalizes the vehicle cost and substantially all production costs into inventory. CSS determines the cost of its semi-finished and finished steel product inventories based on average costs and capitalizes all direct and indirect costs of manufacturing into inventory. Indirect costs of manufacturing include general plant costs, maintenance and yard costs. The Company determines the cost of the substantial majority of its supplies inventory using the average cost method and reduces the carrying value for losses due to obsolescence. The Company considers estimated future selling prices when determining the estimated net realizable value of its inventory. As the Company generally sells its recycled ferrous metal under contracts that provide for shipment within 30 to 60 days after The accounting process the Company uses to record ferrous scrap metal quantities relies on significant estimates. With respect to estimating the quantities of unprocessed ferrous scrap metal inventory that are moved into production, management relies on weighed quantities of the processed ferrous material, adjusted for estimated metal recoveries and yields that are based on historical trends and other judgments by management. Actual recoveries and yields can vary depending on product quality, moisture content and the source of the unprocessed metal. The Company’s estimates are intended to reasonably reflect the quantities of unprocessed ferrous scrap metal that are used in the production of processed ferrous metal. To assist in validating the reasonableness of these estimates, management periodically reviews shrink factors and performs monthly physical inventories. Due to the inherent nature of the Company’s scrap metal inventories, including variations in product density, holding period and production processes utilized to manufacture the products, physical inventories will not necessarily detect all variances for scrap metal inventory such that estimates of quantities are required. To mitigate this risk, the Company further adjusts its ferrous physical inventories when the volume of a commodity is low and a physical inventory count is deemed to more accurately estimate the remaining volume. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, while routine repair and maintenance costs are expensed as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs and was not material to any of the periods presented. When assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and resulting gains or losses are generally included in operating expense. Gains and losses from sales of assets related to an exit activity are reported within restructuring charges and other exit-related activities in the Consolidated Statements of Income. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Upon idling an asset, depreciation continues to be recorded. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. As of August 31, 2019, the useful lives used for depreciation and amortization were as follows: Useful Life (in years) Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Office equipment and other software licenses 3 to 10 Enterprise Resource Planning (“ERP”) systems 6 to 17 |
Other Assets | Prepaid Expenses The Company’s prepaid expenses, reported within prepaid expenses and other current assets in the Consolidated Balance Sheets, totaled $23 million and $22 million as of August 31, 2019 and 2018, respectively, and consisted primarily of deposits on capital purchases, prepaid insurance, prepaid rent and prepaid services. 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 Receivables from insurers represent the portion of insured losses expected to be recovered from the Company’s insurance carriers. The receivable is recorded at an amount not to exceed the recorded loss and only if the terms of legally enforceable insurance contracts support that the insurance recovery will not be disputed and is deemed collectible. Receivables from insurers totaled $89 million and $36 million as of August 31, 2019 and 2018, respectively, with the increase in fiscal 2019 relating primarily to adjustment of a contingent loss originally recorded in fiscal 2018 in connection with lawsuits arising from a 2016 motor vehicle collision for which the Company had insurance coverage. The foregoing lawsuits were settled and full payment of the settlements was made within the Company’s insurance policy limits in the first quarter of fiscal 2020. See “Contingencies – Other” in Note 8 – Commitments and Contingencies for further discussion of the contingent loss. 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 AMR and reported within other assets in the Consolidated Balance Sheets. The carrying value of the investment was $6 million Debt issuance costs consist primarily of costs incurred by the Company to enter into or modify its credit facilities. The Company reports deferred debt issuance costs within other assets in the Consolidated Balance Sheets and amortizes them to interest expense on a straight-line basis over the contractual term of the arrangement. Notes and other contractual receivables consist primarily of advances to entities in the business of extracting scrap metal through demolition and other activities, as well as receivables from counterparties to sales of equipment assets and to legal settlements. Repayment of these advances to suppliers is in either cash or scrap metal. The Company performs periodic reviews of its notes and other contractual receivables to identify credit risks and to assess the overall collectibility of the receivables, which typically involves consideration of the value of collateral which in the case of advances to suppliers is generally in the form of scrap metal extracted from demolition and construction projects. A note or other contractual receivable is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the agreement. Once a note or other contractual receivable has been identified as impaired, it is measured based on the present value of payments expected to be received, discounted at the receivable’s contractual interest rate, or for arrangements that are solely dependent on collateral for repayment, the estimated fair value of the collateral less estimated costs to sell. If the carrying value of the receivable exceeds its recoverable amount, an impairment is recorded for the difference. |
Long-Lived Assets | Long-Lived Assets The Company tests long-lived tangible and intangible assets for impairment at the asset group level, which is determined based on the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. For the Company’s metals recycling operations reported within AMR, an asset group generally consists of the regional shredding and export operation along with surrounding feeder yards. For regions with no shredding and export operations, each metals recycling yard is an asset group. For the Company’s auto parts operations, generally each auto parts store is an asset group. The combined steel manufacturing and metals recycling operations within CSS are a single asset group. The Company tests its asset groups for impairment when certain triggering events or changes in circumstances indicate that the carrying value of the asset group may be impaired. If the carrying value of the asset group is not recoverable because it exceeds the Company’s estimate of future undiscounted cash flows from the use and eventual disposition of the asset group, an impairment loss is recognized by the amount the carrying value exceeds its fair value, if any. The impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value. Fair value is determined primarily using the cost and market approaches. With respect to individual long-lived assets, changes in circumstances may merit a change in the estimated useful lives or salvage values of the assets, which are accounted for prospectively in the period of change. For such assets, the useful life is shortened based on the Company’s 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. |
Investments in Joint Ventures | Investments in Joint Ventures As of August 31, 2019, the Company had two 50%-owned joint venture interests which were accounted for under the equity method of accounting. One of the joint venture interests is presented as part of AMR operations, and one interest is presented as part of CSS operations. The joint venture within CSS sells recycled scrap metal to other operations within 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. As of August 31, 2019, the Company’s investments in equity method joint ventures have generated $8 million in cumulative A loss in value of an investment in a joint venture is recognized when the decline is other than temporary. Management considers all available evidence to evaluate the realizable value of its investments including the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the joint venture business, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. Once management determines that an other-than-temporary impairment exists, the investment is written down to its fair value, which establishes a new cost basis. The Company determines fair value using Level 3 inputs under the fair value hierarchy using an income approach based on a discounted cash flow analysis. During fiscal 2018, the Company declassified two of its 50% joint venture interests from equity method classification as a result of the agreed-upon dissolution of the joint venture entities. The joint venture interests had previously been presented as part of AMR operations. During fiscal 2017, the Company sold one of its 50% joint venture interests, which had previously been presented as part of CSS operations. The Company recorded immaterial gains as a result of these transactions. During fiscal 2017, one of the Company’s joint venture interests sold real estate resulting in recognition of a $6 million gain by the joint venture, $3 million of which was attributable to the Company’s investment. The Company’s share of the gain is reported within (income) from joint ventures in the Consolidated Statements of Income. See Note 15 - Related Party Transactions for further detail on transactions with joint ventures. |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually on July 1 When testing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company elects to perform a qualitative assessment and determines that an impairment is more-likely-than-not, the Company is then required to perform the quantitative impairment test, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. When performing the quantitative impairment test, the Company applies a one-step quantitative test and records the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. When the Company is required to perform a quantitative goodwill impairment test, it estimates the fair value of its reporting units using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based weighted average cost of capital determined separately for each reporting unit. The determination of fair value involves the use of significant estimates and assumptions, including revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, discount rates, benefits associated with a taxable transaction and synergistic benefits available to market participants. In addition, to corroborate the reporting units’ valuation, the Company uses a market approach based on earnings multiple data and a reconciliation of the Company’s estimate of the aggregate fair value of the reporting units to the Company’s market capitalization, including consideration of a control premium. The Company did not record goodwill impairment charges in any of the periods presented. The Company tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of the indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The Company did not record impairment charges on indefinite-lived intangible assets in any of the periods presented. |
Acquisitions | Acquisitions The Company recognizes the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. Contingent purchase consideration is recorded at fair value at the date of acquisition. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. Within one year from the date of acquisition, the Company may update the value allocated to the assets acquired and liabilities assumed and the resulting goodwill balance as a result of information received regarding the valuation of such assets and liabilities that was not available at the time of purchase. Measuring assets and liabilities at fair value requires the Company to determine the price that would be paid by a third party market participant based on the highest and best use of the assets or interests acquired. Acquisition costs are expensed as incurred. The Company acquired certain assets of an auto recycling business in northern California in fiscal 2019 and certain assets of a metals recycling business in Columbus, Georgia in fiscal 2018. These acquisitions were not material to the Company’s financial position or results of operations. Pro forma operating results for these acquisitions are not presented, since the aggregate results would not be significantly different than reported results. See Note 6 - Goodwill and Other Intangible Assets, net for further details. |
Restructuring Charges | Restructuring Charges Restructuring charges consist of severance, contract termination and other restructuring-related costs. A liability for severance costs is typically recognized when the plan of termination has been communicated to the affected employees and is measured at its fair value at the communication date. Contract termination costs consist primarily of costs that will continue to be incurred under operating leases for their remaining terms without economic benefit to the Company. A liability for contract termination costs is recognized at the date the Company ceases using the rights conveyed by the lease contract and is measured at its fair value, which is determined based on the remaining contractual lease rentals reduced by estimated sublease rentals. A liability for other restructuring-related costs is measured at its fair value in the period in which the liability is incurred. |
Accrued Workers Compensation Costs | Accrued Workers’ Compensation Costs The Company is self-insured for the significant majority of workers’ compensation claims with exposure limited by various stop-loss insurance policies. The Company estimates the costs of workers’ compensation claims based on the nature of the injury incurred and on guidelines established by the applicable state. An accrual is recorded based upon the amount of unpaid claims as of the balance sheet date. Accrued amounts recorded for individual claims are reviewed periodically as treatment progresses and adjusted to reflect additional information that becomes available. The estimated cost of claims incurred but not reported is included in the accrual. The Company accrued $8 million for the estimated cost of unpaid workers’ compensation claims as of August 31, 2019 and 2018, which are included in other accrued liabilities in the Consolidated Balance Sheets, with corresponding workers’ compensation insurance receivables of $4 million |
Environmental Liabilities | Environmental Liabilities The Company estimates future costs for known environmental remediation requirements and accrues for them on an undiscounted basis when it is probable that the Company has incurred a liability and the related costs can be reasonably estimated but the timing of incurring the estimated costs is unknown. The Company considers various factors when estimating its environmental liabilities. Adjustments to the liabilities are recorded to selling, general and administrative expense in the Consolidated Statements of Income when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or when expenditures are made for which liabilities were established. Legal costs incurred in connection with environmental contingencies are expensed as incurred. When only a wide range of estimated amounts can be reasonably established and no other amount within the range is a better estimate than another, the low end of the range is recorded in the financial statements. In a number of cases, it is possible that the Company may receive reimbursement through insurance or from other potentially responsible parties for a site or matter. In these situations, recoveries of environmental remediation costs from other parties are recognized when the claim for recovery is either realized or realizable. The amounts recorded for environmental liabilities are reviewed periodically as assessment and remediation progresses at individual sites or for particular matters and adjusted to reflect additional information that becomes available. Due to evolving remediation technology, changing regulations, possible third party contributions, the subjective nature of the assumptions used and other factors, amounts accrued could vary significantly from amounts paid. See “Contingencies – Environmental” in Note 8 – Commitments and Contingencies for further detail. |
Loss Contingencies | Loss Contingencies The Company is subject to certain legal proceedings and contingencies in addition to those related to environmental liabilities discussed above in this Note, the outcomes of which are subject to significant uncertainty. The Company accrues for estimated losses if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company uses judgment and evaluates whether a loss contingency arising from litigation or an unasserted claim should be disclosed or recorded. The outcome of legal proceedings and other contingencies is inherently uncertain and often difficult to estimate. Accrued legal contingencies are reported within other accrued liabilities in the Consolidated Balance Sheets. See “Contingencies – Other” in Note 8 – Commitments and Contingencies for further detail. |
Financial Instruments | Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, and debt. The Company uses the market approach to value its financial assets and liabilities, determined using available market information. The net carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. For long-term debt, which is primarily at variable interest rates, fair value is estimated using observable inputs (Level 2) and approximates its carrying value. |
Fair Value Measurements | Fair Value Measurements Fair value is measured using inputs from the three levels of the fair value hierarchy. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are described as follows: • Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the determination of the fair value of the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs that are significant to the determination of the fair value of the asset or liability. When developing the fair value measurements, the Company uses quoted market prices whenever available or seeks to maximize the use of observable inputs and minimize the use of unobservable inputs when quoted market prices are not available. |
Derivatives | Derivatives Derivative contracts for commodities used in normal business operations that are settled by physical delivery, among other criteria, are eligible for and may be designated as normal purchases and normal sales. Contracts that qualify as normal purchases or normal sales are not marked-to-market. The Company does not use derivative instruments for trading or speculative purposes. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities of the Company’s operations in Canada are translated into U.S. dollars at the period-end exchange rate, revenues and expenses of these operations are translated into U.S. dollars at the average exchange rate for the period, and cash flows of these operations are translated into U.S. dollars using the exchange rates in effect at the time of the cash flows. Translation adjustments are not included in determining net income for the period, but are recorded in accumulated other comprehensive income, a separate component of shareholders’ equity. Foreign currency transaction gains and losses are generated from the effects of exchange rate changes on transactions denominated in a currency other than the functional currency. Gains and losses on foreign currency transactions are generally included in determining net income for the period. The Company reports these gains and losses within other income, net in the Consolidated Statements of Income. Net realized and unrealized foreign currency transaction gains and losses were not material for fiscal 2019, 2018 or 2017. |
Common Stock | Common Stock Each share of Class A and Class B common stock is entitled to one vote. Additionally, each share of Class B common stock may be converted to one share of Class A common stock. As such, the Company reserves one share of Class A common stock for each share of Class B common stock outstanding. There are currently no meaningful distinctions between the rights of holders of Class A shares and Class B shares. |
Share Repurchases | Share Repurchases The Company accounts for the repurchase of stock at par value. All shares repurchased are deemed retired. Upon retirement of the shares, the Company records the difference between the weighted average cost of such shares and the par value of the stock as an adjustment to additional paid-in capital, with the excess recorded to retained earnings when additional paid-in capital is not sufficient. |
Revenue Recognition | Revenue Recognition 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, auto bodies, 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. The Company’s bill-and-hold arrangements involve transfer of control to the customer when the goods have been segregated from other inventory at the Company’s facility and are ready for physical transfer to the customer. 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 to cost of goods sold 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, net of sales tax, and 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 fiscal year ended August 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 fiscal year ended August 31, 2019, revenue adjustments related to performance obligations that were satisfied in previous periods were not material. |
Advertising Costs | Advertising Costs The Company expenses advertising costs when incurred. Advertising expense was $6 million in fiscal 2019, 2018 and 2017, respectively. |
Share-Based Compensation | Share-Based Compensation The Company estimates grant-date fair value of stock-based compensation awards based on the market closing price of the underlying Class A common stock on the date of grant, except for performance share awards with a return on capital employed (“ROCE") cash flow return on investment (“CFROI” probable outcome of achieving the specified performance conditions . The Company reassesses whether achievement of the ROCE and CFROI performance metrics is probable at each reporting date. See Note 12 – Share-Based Compensation for further detail. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. This requires the recognition of taxes currently payable or refundable and the recognition of deferred tax assets and liabilities for the future tax consequences of events that are recognized in one reporting period on the Consolidated Financial Statements but in a different reporting period on the tax returns. Tax credits are recognized as a reduction of income tax expense in the year the credit arises. Valuation allowances are recorded to reduce deferred tax assets when it is more-likely-than-not that a tax benefit will not be realized. 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. Tax benefits arising from uncertain tax positions are recognized when it is more-likely-than-not that the position will be sustained upon examination by the relevant tax authorities. The amount recognized in the financial statements is the largest amount of tax benefit that is greater than 50 percent likely Note 13 |
Net Income Per Share | Net Income Per Share Basic net income per share attributable to SSI shareholders is computed by dividing net income attributable to SSI shareholders by the weighted average number of outstanding common shares during the period presented including vested deferred stock units (“DSUs”) and restricted stock units (“RSUs”) meeting certain criteria. Diluted net income per share attributable to SSI shareholders is computed by dividing net income attributable to SSI shareholders by the weighted average number of common shares outstanding, assuming dilution. Potentially dilutive common shares include the assumed vesting of performance share, RSU and DSU awards using the treasury stock method. Certain of the Company’s performance share and RSU awards were excluded from the calculation of diluted net income per share attributable to SSI shareholders because they were antidilutive; however, certain of these performance share and RSU awards could be dilutive in the future. Net income attributable to noncontrolling interests is deducted from income from continuing operations to arrive at income from continuing operations attributable to SSI shareholders for the purpose of calculating income per share from continuing operations attributable to SSI shareholders. Income (loss) per share from discontinued operations attributable to SSI shareholders is presented separately in the Consolidated Statements of Income. See Note 14 – Net Income Per Share for further detail. |
Use of Estimates | Use of Estimates The preparation of the Company’s Consolidated Financial Statements in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenue and expenses during the reporting period. Examples include revenue recognition; the allowance for doubtful accounts; estimates of contingencies, including environmental liabilities and other legal liabilities; goodwill, long-lived asset and indefinite-lived intangible asset valuation; valuation of equity investments; valuation of certain share-based awards; other asset valuation; inventory measurement and valuation; pension plan assumptions; and the assessment of the valuation of deferred income taxes and income tax contingencies. Actual results may differ from estimated amounts. |
Concentration Risk 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 thousand |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, an accounting standard was issued that supersedes the lease standard existing at the time and requires a lessee to recognize a lease liability and a lease asset on its balance sheet for all leases greater than 12 months, including those classified as operating leases. The standard also expands the required quantitative and qualitative disclosures surrounding leases. Updates have been issued since February 2016 amending aspects of the initial standard, including providing an additional and optional transition method for adoption. The new lease accounting standard becomes effective for the Company on September 1, 2019. The Company expects to adopt the new guidance using the modified retrospective method, whereby it applies the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings as of September 1, 2019. The Company does not expect such cumulative-effect adjustment to be material. Adoption using the modified retrospective method does not have an impact on any prior period earnings of the Company, and no comparative prior periods will be adjusted for the new guidance. The Company expects to elect a package of practical expedients permitted under the transition guidance within the new lease accounting standard, which among other things, permit carrying forward the historical lease classification. The Company also expects to elect practical expedients exempting short-term leases from balance sheet recognition and permitting entities to not separate lease and non-lease components. Adoption of the new standard is expected to result in recognition of approximately $126 million and $128 million of operating lease right-of-use assets and liabilities, respectively, as of September 1, 2019. Payments for short-term leases will continue to be recognized in the income statement on a straight-line basis over the lease term. The new lease standard is not expected to materially impact the Company’s consolidated net income, and it will have no impact on its cash flows. The Company has assessed and will implement changes to its processes, systems (including implementing a software solution), and internal controls as a result of the new guidance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives Used for Depreciation and Amortization | As of August 31, 2019, the useful lives used for depreciation and amortization were as follows: Useful Life (in years) Machinery and equipment 3 to 40 Land improvements 3 to 35 Buildings and leasehold improvements 5 to 40 Office equipment and other software licenses 3 to 10 Enterprise Resource Planning (“ERP”) systems 6 to 17 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Inventory Net [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of August 31 (in thousands): 2019 2018 Processed and unprocessed scrap metal $ 81,313 $ 111,658 Semi-finished goods 8,712 15,551 Finished goods 53,796 39,809 Supplies 43,499 38,859 Inventories $ 187,320 $ 205,877 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Property Plant And Equipment Net [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net consisted of the following as of August 31 (in thousands): 2019 2018 Machinery and equipment $ 697,746 $ 679,520 Land and improvements 283,348 269,382 Buildings and leasehold improvements 112,244 108,882 ERP systems 17,760 17,760 Office equipment and other software licenses 43,960 43,175 Construction in progress 67,375 28,553 Property, plant and equipment, gross 1,222,433 1,147,272 Less accumulated depreciation (766,033 ) (731,561 ) Property, plant and equipment, net $ 456,400 $ 415,711 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Change in Carrying Amount of Goodwill | The gross change in the carrying amount of goodwill for the years ended August 31, 2019 and 2018 was as follows (in thousands): Goodwill Balance as of September 1, 2017 $ 167,835 Acquisition 1,118 Foreign currency translation adjustment (888 ) Balance as of August 31, 2018 168,065 Acquisition 1,575 Foreign currency translation adjustment (403 ) Balance as of August 31, 2019 $ 169,237 |
Schedule of Intangible Assets | The following table presents the Company’s intangible assets as of August 31 (in thousands): 2019 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Covenants not to compete $ 5,746 $ (2,862 ) $ 2,884 $ 5,591 $ (2,596 ) $ 2,995 Other intangible assets subject to amortization (1) 771 (254 ) 517 1,162 (880 ) 282 Indefinite-lived intangibles (2) 1,081 — 1,081 1,081 — 1,081 Total $ 7,598 $ (3,116 ) $ 4,482 $ 7,834 $ (3,476 ) $ 4,358 (1) Other intangible assets subject to amortization include leasehold interests, permits and licenses. (2) Indefinite-lived intangibles include trade names, permits and licenses, and real property options. |
Schedule of Estimated Amortization Expenses | The estimated amortization expense, based on current intangible asset balances, during the next five fiscal years and thereafter is as follows (in thousands): Years Ending August 31, Estimated Amortization Expense 2020 $ 624 2021 389 2022 387 2023 332 2024 307 Thereafter 1,362 Total $ 3,401 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Long Term Debt And Capital Lease Obligations [Abstract] | |
Schedule of Debt | Debt consisted of the following as of August 31 (in thousands): 2019 2018 Bank revolving credit facilities, interest primarily at LIBOR plus a spread $ 96,835 $ 100,000 Capital lease obligations due through July 2029 7,774 6,787 Other debt obligations 487 589 Total debt 105,096 107,376 Less current maturities (1,321 ) (1,139 ) Debt, net of current maturities $ 103,775 $ 106,237 |
Summary of Principal Payments on Long-term Debt and Capital Lease Obligations | Principal payments on long-term debt and capital lease obligations during the next five fiscal years and thereafter are as follows (in thousands): Year Ending August 31, Long-Term Debt Capital Lease Obligations Total 2020 $ 94 $ 1,917 $ 2,011 2021 47 1,799 1,846 2022 49 1,751 1,800 2023 96,887 1,622 98,509 2024 56 1,346 1,402 Thereafter 189 1,694 1,883 Total 97,322 10,129 107,451 Amounts representing interest — (2,355 ) (2,355 ) Total less interest $ 97,322 $ 7,774 $ 105,096 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Operating Lease Obligations | The table below sets forth the Company’s future minimum obligations under non-cancelable operating leases as of August 31, 2019 (in thousands): Year Ending August 31, Operating Leases 2020 $ 21,286 2021 15,301 2022 12,488 2023 10,419 2024 5,035 Thereafter 16,095 Total $ 80,624 |
Schedule Of Reserves For Environmental Liabilities | Changes in the Company’s environmental liabilities for the years ended August 31, 2019 and 2018 were as follows (in thousands): Balance 9/1/2017 Liabilities Established (Released), Net Payments and Other Ending Balance 8/31/2018 Liabilities Established (Released), Net Payments and Other Ending Balance 8/31/2019 Short- Term Long- Term $ 48,398 $ 9,172 $ (3,738 ) $ 53,832 $ 1,302 $ (3,335 ) $ 51,799 $ 6,030 $ 45,769 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax, are as follows as of August 31, 2019, 2018 and 2017 (in thousands): Foreign Currency Translation Adjustments Pension Obligations, net Total Balance as of September 1, 2016 $ (34,539 ) $ (5,576 ) $ (40,115 ) Other comprehensive income before reclassifications 2,711 1,477 4,188 Income tax expense — (194 ) (194 ) Other comprehensive income before reclassifications, net of tax 2,711 1,283 3,994 Amounts reclassified from accumulated other comprehensive loss — 851 851 Income tax benefit — (23 ) (23 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 828 828 Net periodic other comprehensive income 2,711 2,111 4,822 Balance as of August 31, 2017 (31,828 ) (3,465 ) (35,293 ) Other comprehensive (loss) income before reclassifications (2,301 ) 64 (2,237 ) Income tax benefit — 172 172 Other comprehensive (loss) income before reclassifications, net of tax (2,301 ) 236 (2,065 ) Amounts reclassified from accumulated other comprehensive loss — 536 536 Income tax benefit — (415 ) (415 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 121 121 Net periodic other comprehensive (loss) income (2,301 ) 357 (1,944 ) Balance as of August 31, 2018 (34,129 ) (3,108 ) (37,237 ) Other comprehensive loss before reclassifications (1,560 ) (326 ) (1,886 ) Income tax benefit — 65 65 Other comprehensive loss before reclassifications, net of tax (1,560 ) (261 ) (1,821 ) Amounts reclassified from accumulated other comprehensive loss — 369 369 Income tax benefit — (74 ) (74 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 295 295 Net periodic other comprehensive (loss) income (1,560 ) 34 (1,526 ) Balance as of August 31, 2019 $ (35,689 ) $ (3,074 ) $ (38,763 ) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Major Product and Sales Destination for Each Reportable Segment | The table below illustrates the Company’s revenues disaggregated by major product and sales destination for each reportable segment (in thousands): Year Ended August 31, 2019 AMR CSS Intercompany Revenue Eliminations Total Major product information: Ferrous revenues $ 1,123,180 $ 51,963 $ (10,424 ) $ 1,164,719 Nonferrous revenues 430,361 38,809 (1,147 ) 468,023 Steel revenues (1) — 367,956 — 367,956 Retail and other revenues 131,436 688 (41 ) 132,083 Total revenues $ 1,684,977 $ 459,416 $ (11,612 ) $ 2,132,781 Revenues based on sales destination: Foreign $ 1,047,546 $ 93,531 $ — $ 1,141,077 Domestic 637,431 365,885 (11,612 ) 991,704 Total revenues $ 1,684,977 $ 459,416 $ (11,612 ) $ 2,132,781 (1) Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and manufacturing scrap. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Share Based Compensation [Abstract] | |
Summary of RSU Activity | A summary of the Company’s RSU activity for the year ended August 31, 2019 is as follows: Number of Units (in thousands) Weighted Average Grant Date Fair Value Outstanding as of August 31, 2018 812 $ 22.59 Granted 262 $ 27.61 Vested (257 ) $ 22.75 Forfeited (19 ) $ 24.23 Outstanding as of August 31, 2019 798 $ 24.14 |
Key Assumptions for a Monte-Carlo Simulation Model Utilized to Estimate the Fair Value of TSR awards | The Company estimates the fair value of TSR awards using a Monte-Carlo simulation model utilizing several key assumptions, including the following for TSR awards granted during the fiscal years ended August 31: 2019 2018 2017 Expected share price volatility (SSI) 42.5 % 44.3 % 40.9 - 43.3% Expected share price volatility (Peer group) 51.4 % 55.4 % 52.3 - 55.1% Expected correlation to peer group companies 35.6 % 35.4 % 36.2 - 36.5% Risk-free rate of return 2.89 % 1.79 % 1.11 - 1.31% |
Summary of Performance-based Awards Activity | A summary of the Company’s performance-based awards activity for the year ended August 31, 2019 is as follows: Number of Awards (in thousands) Weighted Average Grant Date Fair Value Outstanding as of August 31, 2018 880 $ 22.09 Granted 255 $ 28.37 Performance achievement (1) 170 $ 18.54 Vested (500 ) $ 18.78 Forfeited (32 ) $ 22.75 Outstanding as of August 31, 2019 773 $ 25.49 (1) Reflects the net number of awards achieved above target levels based on actual performance measured at the end of the performance period. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income from continuing operations before income taxes was as follows for the years ended August 31 (in thousands): 2019 2018 2017 United States $ 69,476 $ 131,518 $ 43,871 Foreign 6,764 10,335 4,819 Total $ 76,240 $ 141,853 $ 48,690 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) from continuing operations consisted of the following for the years ended August 31 (in thousands): 2019 2018 2017 Current: Federal $ 2,690 $ 19,511 $ (1,130 ) State 315 894 190 Foreign 52 — (16 ) Total current tax expense (benefit) 3,057 20,405 (956 ) Deferred: Federal 12,930 (5,700 ) 2,046 State 794 (1,962 ) 232 Foreign 889 (30,333 ) — Total deferred tax expense (benefit) 14,613 (37,995 ) 2,278 Total income tax expense (benefit) $ 17,670 $ (17,590 ) $ 1,322 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the difference between the federal statutory rate and the Company’s effective tax rate for the years ended August 31 is as follows: 2019 2018 2017 Federal statutory rate 21.0 % 25.7 % 35.0 % State taxes, net of credits 1.2 0.4 1.8 Foreign income taxed at different rates (0.2 ) (0.5 ) (1.9 ) Valuation allowance on deferred tax assets (0.2 ) (35.8 ) (31.2 ) Federal rate change — (4.9 ) — Non-deductible officers’ compensation 1.8 1.6 2.2 Noncontrolling interests (0.5 ) (0.6 ) (1.8 ) Research and development credits (0.5 ) (0.6 ) (1.5 ) Tax return to provision adjustment 0.5 — — Unrecognized tax benefits 0.7 3.4 1.3 Realized foreign investment basis (0.4 ) (0.2 ) (0.9 ) Excess tax benefit from stock-based compensation (1.2 ) (0.3 ) — Other 1.0 (0.6 ) (0.3 ) Effective tax rate 23.2 % (12.4 )% 2.7 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities comprised the following as of August 31 (in thousands): 2019 2018 Deferred tax assets: Amortizable goodwill and other intangibles $ 22,646 $ 27,433 State credit carryforwards 8,202 8,243 Environmental liabilities 7,164 7,853 Net operating loss carryforwards 7,122 7,206 Employee benefit accruals 6,289 10,677 Inventory valuation methods 1,748 944 Other 6,405 6,320 Valuation allowances (16,436 ) (16,484 ) Total deferred tax assets 43,140 52,192 Deferred tax liabilities: Accelerated depreciation and other basis differences 37,493 31,622 Prepaid expense acceleration 2,263 1,979 Total deferred tax liabilities 39,756 33,601 Net deferred tax asset $ 3,384 $ 18,591 |
Summary of Reserve for Unrecognized Tax Benefits, Excluding Interest and Penalties | The following table summarizes the activity related to the Company’s reserve for unrecognized tax benefits, excluding interest and penalties, for the years ended August 31 (in thousands): 2019 2018 2017 Unrecognized tax benefits, as of the beginning of the year $ 5,054 $ 5,548 $ 4,724 Additions (reductions) for tax positions of prior years (151 ) 171 (120 ) Additions for tax positions of the current year 507 596 944 Reduction attributable to federal tax reform — (1,261 ) — Unrecognized tax benefits, as of the end of the year $ 5,410 $ 5,054 $ 5,548 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth the information used to compute basic and diluted net income per share attributable to SSI shareholders for the years ended August 31 (in thousands): 2019 2018 2017 Income from continuing operations $ 58,570 $ 159,443 $ 47,368 Net income attributable to noncontrolling interests (1,977 ) (3,338 ) (2,467 ) Income from continuing operations attributable to SSI shareholders 56,593 156,105 44,901 (Loss) income from discontinued operations, net of tax (248 ) 346 (390 ) Net income attributable to SSI shareholders $ 56,345 $ 156,451 $ 44,511 Computation of shares: Weighted average common shares outstanding, basic 27,527 27,645 27,537 Incremental common shares attributable to dilutive performance share, RSU and DSU awards 695 944 604 Weighted average common shares outstanding, diluted 28,222 28,589 28,141 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Total Assets | The following is a summary of the Company’s total assets as of August 31 (in thousands): 2019 2018 Total assets: Auto and Metals Recycling (1) $ 1,561,267 $ 1,485,626 Cascade Steel and Scrap 769,930 740,967 Total segment assets 2,331,197 2,226,593 Corporate and eliminations (2) (1,170,451 ) (1,121,776 ) Total assets $ 1,160,746 $ 1,104,817 Property, plant and equipment, net (3) $ 456,400 $ 415,711 (1) AMR total assets include $3 million and $4 million (2) The substantial majority of Corporate and eliminations total assets consist of Corporate intercompany payables to the Company’s operating segments and intercompany eliminations. (3) Property, plant and equipment, net includes $14 million |
Reconciliation of Operating Income from Segments to Consolidated | The table below illustrates the Company’s results from continuing operations by reportable segment for the years ended August 31 (in thousands): 2019 2018 2017 AMR: Revenues $ 1,684,977 $ 1,908,966 $ 1,363,618 Less: Intersegment revenues (11,612 ) (24,892 ) (15,647 ) AMR external customer revenues 1,673,365 1,884,074 1,347,971 CSS: Revenues 459,416 480,641 339,620 Total revenues $ 2,132,781 $ 2,364,715 $ 1,687,591 Depreciation and amortization: AMR $ 38,816 $ 35,564 $ 34,853 CSS 11,781 11,724 12,525 Segment depreciation and amortization 50,597 47,288 47,378 Corporate 2,739 2,384 2,462 Total depreciation and amortization $ 53,336 $ 49,672 $ 49,840 Capital expenditures: AMR $ 78,706 $ 67,099 $ 34,575 CSS 15,345 9,600 10,224 Segment capital expenditures 94,051 76,699 44,799 Corporate 562 927 141 Total capital expenditures $ 94,613 $ 77,626 $ 44,940 Reconciliation of the Company’s segment operating income to income from continuing operations before income taxes: AMR (1) $ 95,991 $ 169,120 $ 91,405 CSS (2) 31,951 38,286 5,275 Segment operating income 127,942 207,406 96,680 Restructuring charges and other exit-related activities (365 ) 661 109 Corporate and eliminations (43,712 ) (59,079 ) (40,776 ) Operating income 83,865 148,988 56,013 Interest expense (8,266 ) (8,983 ) (8,081 ) Other income, net 641 1,848 758 Income from continuing operations before income taxes $ 76,240 $ 141,853 $ 48,690 (1) AMR operating income includes less than $1 million, less than $(1) million, and $2 million in income (loss) from joint ventures accounted for by the equity method in fiscal 2019, 2018 and 2017, respectively. (2) CSS operating income includes $1 million, |
Schedule of Revenues from External Customers By Major Product and Destination | The following revenues from external customers are presented by major product and based on the sales destination for the years ended August 31 (in thousands): 2019 2018 2017 Major product information: Ferrous revenues $ 1,164,719 $ 1,328,447 $ 855,161 Nonferrous revenues 468,023 529,466 425,989 Steel revenues (1) 367,956 367,560 280,767 Retail and other revenues 132,083 139,242 125,674 Total revenues $ 2,132,781 $ 2,364,715 $ 1,687,591 Revenues based on sales destination: Foreign $ 1,141,077 $ 1,354,460 $ 894,265 Domestic 991,704 1,010,255 793,326 Total revenues $ 2,132,781 $ 2,364,715 $ 1,687,591 (1) Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and manufacturing scrap. (2) In fiscal 2019, the Company modified its categories of revenues from external customers by major product. The major product revenues for fiscal 2018 and 2017 have been revised to conform to the current presentation, with such revisions being immaterial to each year. |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The schedule below identifies those foreign countries to which the Company’s sales exceeded 10% of consolidated revenues in any of the last three years ended August 31 (in thousands): 2019 % of Revenue 2018 % of Revenue 2017 % of Revenue Turkey (1) N/A N/A $ 262,835 11 % N/A N/A China (1) N/A N/A $ 255,097 11 % $ 216,231 13 % (1) |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | In the opinion of management, this unaudited quarterly financial summary includes all adjustments necessary for a fair statement of the results for the periods represented (in thousands, except per share amounts): Fiscal 2019 First Second Third Fourth Revenues $ 564,020 $ 473,565 $ 547,396 $ 547,800 Cost of goods sold $ 490,132 $ 414,688 $ 474,598 $ 479,117 Operating income $ 22,689 $ 19,036 $ 24,459 $ 17,681 Income from continuing operations attributable to SSI shareholders $ 16,260 $ 13,030 $ 15,682 $ 11,621 Basic income per share from continuing operations attributable to SSI shareholders $ 0.59 $ 0.47 $ 0.57 $ 0.42 Diluted income per share from continuing operations attributable to SSI shareholders $ 0.57 $ 0.46 $ 0.56 $ 0.41 Net income $ 16,618 $ 13,297 $ 16,440 $ 11,967 Net income attributable to SSI shareholders $ 16,188 $ 12,892 $ 15,690 $ 11,575 Basic net income per share attributable to SSI shareholders $ 0.59 $ 0.47 $ 0.57 $ 0.42 Diluted net income per share attributable to SSI shareholders $ 0.57 $ 0.46 $ 0.56 $ 0.41 Fiscal 2018 First Second Third Fourth Revenues $ 483,279 $ 559,443 $ 652,416 $ 669,577 Cost of goods sold $ 406,251 $ 472,462 $ 549,164 $ 582,608 Operating income $ 26,423 $ 33,358 $ 51,234 $ 37,973 Income from continuing operations attributable to SSI shareholders $ 18,399 $ 40,852 $ 37,458 $ 59,396 Basic income per share from continuing operations attributable to SSI shareholders $ 0.66 $ 1.47 $ 1.35 $ 2.17 Diluted income per share from continuing operations attributable to SSI shareholders $ 0.64 $ 1.42 $ 1.31 $ 2.08 Net income $ 19,221 $ 41,919 $ 38,448 $ 60,201 Net income attributable to SSI shareholders $ 18,364 $ 41,016 $ 37,402 $ 59,669 Basic net income per share attributable to SSI shareholders $ 0.66 $ 1.48 $ 1.35 $ 2.18 Diluted net income per share attributable to SSI shareholders $ 0.64 $ 1.42 $ 1.31 $ 2.09 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) | 12 Months Ended |
Aug. 31, 2019segment | |
Nature Of Operations [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue, Initial Application Period Cumulative Effect Transition (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Sep. 01, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Retained earnings | $ 675,363,000 | $ 639,684,000 | $ 675,363,000 | $ 639,684,000 | ||||||||
Revenues | 547,800,000 | $ 547,396,000 | $ 473,565,000 | $ 564,020,000 | 669,577,000 | $ 652,416,000 | $ 559,443,000 | $ 483,279,000 | 2,132,781,000 | 2,364,715,000 | $ 1,687,591,000 | |
Cost of goods sold | $ 479,117,000 | $ 474,598,000 | $ 414,688,000 | $ 490,132,000 | $ 582,608,000 | $ 549,164,000 | $ 472,462,000 | $ 406,251,000 | 1,858,535,000 | $ 2,010,485,000 | $ 1,464,508,000 | |
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 | $ (28,000,000) | |||||||||||
Percentage of Total Revenue | 1.00% | |||||||||||
Cost of goods sold | $ (28,000,000) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Aug. 31, 2019USD ($)jointventureinterestshares | Aug. 31, 2018USD ($)jointventureinterest | Aug. 31, 2017USD ($)jointventureinterest | Aug. 31, 2015Store | |
Significant Accounting Policies [Line Items] | ||||
Book Overdrafts | $ 27,000,000 | $ 28,000,000 | ||
Allowance for Doubtful Accounts Receivable | 2,000,000 | 3,000,000 | ||
Repayment of Advances with Scrap Metal | 15,000,000 | 15,000,000 | $ 12,000,000 | |
Insurance receivable | $ 89,000,000 | 36,000,000 | ||
Investment, Original Cost | 6,000,000 | |||
Number of Equity Method Investments | jointventureinterest | 2 | |||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Cumulative Undistributed Earnings, Equity Method Joint Ventures | $ 8,000,000 | |||
Goodwill impairment charges | 0 | 0 | 0 | |
Advertising Expense | $ 6,000,000 | 6,000,000 | 6,000,000 | |
Percentage likelihood of tax benefit being realized upon settlement with tax authority | 50.00% | |||
Cash, FDIC Insured Amount | $ 250,000 | |||
Customer Issued Letters Of Credit | $ 49,000,000 | $ 58,000,000 | ||
Class A Common Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Common Stock, Voting Rights | one | |||
Number Of Shares Class B Common Stock Convertible To Class A Common Stock | shares | 1 | |||
Number of Shares of Class A Common Stock Reserved For Class B Common Stock | shares | 1 | |||
Class B Common Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Common Stock, Voting Rights | one | |||
Corporate Joint Venture | ||||
Significant Accounting Policies [Line Items] | ||||
Equity Method Investment, Gain on Disposition of Assets | 6,000,000 | |||
Gain (Loss) on Disposition of Assets from Equity Method Investments | $ 3,000,000 | |||
AMR | ||||
Significant Accounting Policies [Line Items] | ||||
Number of Equity Method Investments | jointventureinterest | 2 | |||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Number of Joint Venture Investments | jointventureinterest | 1 | |||
CSS | ||||
Significant Accounting Policies [Line Items] | ||||
Number of Equity Method Investments | jointventureinterest | 1 | |||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Number of Joint Venture Investments | jointventureinterest | 1 | |||
Prepaid Expenses and Other Current Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Prepaid Expense | $ 23,000,000 | $ 22,000,000 | ||
Other Assets | AMR | ||||
Significant Accounting Policies [Line Items] | ||||
Investment, Carrying Value | 6,000,000 | 6,000,000 | ||
Other Accrued Liabilities | ||||
Significant Accounting Policies [Line Items] | ||||
Workers' Compensation Liability | 8,000,000 | 8,000,000 | ||
Other Current Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Workers' Compensation insurance receivables | $ 4,000,000 | $ 4,000,000 | ||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Shipment Period | 30 days | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Shipment Period | 60 days | |||
Discontinued Operations | Auto Parts Stores | ||||
Significant Accounting Policies [Line Items] | ||||
Number of Stores | Store | 6 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies -Schedule of Useful Lives Used for Depreciation and Amortization (Details) | 12 Months Ended |
Aug. 31, 2019 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 35 years |
Buildings and leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Buildings and leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Office equipment and other software licenses | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office equipment and other software licenses | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Enterprise Resource Planning (“ERP”) systems | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Enterprise Resource Planning (“ERP”) systems | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 17 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Details) - Accounting Standards Update 2016-02 - Subsequent Event $ in Millions | Sep. 01, 2019USD ($) |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Operating lease right-of-use assets | $ 126 |
Operating lease liabilities | $ 128 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Inventory Net [Abstract] | ||
Processed and unprocessed scrap metal | $ 81,313 | $ 111,658 |
Semi-finished goods | 8,712 | 15,551 |
Finished goods | 53,796 | 39,809 |
Supplies | 43,499 | 38,859 |
Inventories | $ 187,320 | $ 205,877 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,222,433 | $ 1,147,272 |
Less accumulated depreciation | (766,033) | (731,561) |
Property, plant and equipment, net | 456,400 | 415,711 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 697,746 | 679,520 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 283,348 | 269,382 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 112,244 | 108,882 |
ERP systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 17,760 | 17,760 |
Office equipment and other software licenses | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 43,960 | 43,175 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 67,375 | $ 28,553 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Property Plant And Equipment Net [Abstract] | |||
Depreciation of property plant and equipment, including amortization of software and assets under capital leases | $ 53 | $ 49 | $ 49 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2019USD ($)reporting_unit | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Jul. 01, 2019USD ($) | |
Goodwill [Line Items] | |||||||
Goodwill | $ 169,237 | $ 169,237 | $ 168,065 | ||||
Goodwill, impaired, accumulated impairment loss | 471,000 | 471,000 | 471,000 | ||||
Amortization of intangible assets | 1,000 | 1,000 | $ 1,000 | ||||
Metal Recycling Business | |||||||
Goodwill [Line Items] | |||||||
Business combination, consideration transferred | $ 2,000 | ||||||
Goodwill, acquired during period | $ 1,000 | ||||||
Auto Recycling Business | |||||||
Goodwill [Line Items] | |||||||
Business combination, consideration transferred | $ 2,000 | ||||||
Goodwill, acquired during period | $ 2,000 | ||||||
AMR | |||||||
Goodwill [Line Items] | |||||||
Goodwill, acquired during period | 1,575 | 1,118 | |||||
Goodwill | $ 169,237 | $ 169,237 | $ 168,065 | $ 167,835 | $ 170,000 | ||
Number of reporting units | reporting_unit | 1 | ||||||
AMR | Single Reporting Unit Carried Out [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 1,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Schedule of Gross Change in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 168,065 | |
Goodwill, end of period | 169,237 | $ 168,065 |
AMR | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 168,065 | 167,835 |
Goodwill, acquired during period | 1,575 | 1,118 |
Foreign currency translation adjustment | (403) | (888) |
Goodwill, end of period | $ 169,237 | $ 168,065 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,598 | $ 7,834 |
Accumulated Amortization | (3,116) | (3,476) |
Intangibles, Net | 4,482 | 4,358 |
Gross Carrying Amount, Indefinite-Lived | 1,081 | 1,081 |
Covenants not to compete | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,746 | 5,591 |
Accumulated Amortization | (2,862) | (2,596) |
Intangibles, Net | 2,884 | 2,995 |
Other intangible assets subject to amortization | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 771 | 1,162 |
Accumulated Amortization | (254) | (880) |
Intangibles, Net | $ 517 | $ 282 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Schedule of Estimated Amortization Expenses (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Estimated amortization expense | |
2020 | $ 624 |
2021 | 389 |
2022 | 387 |
2023 | 332 |
2024 | 307 |
Thereafter | 1,362 |
Total | $ 3,401 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Debt Instrument [Line Items] | ||
Capital lease obligations due through July 2029 | $ 7,774 | $ 6,787 |
Other debt obligations | 487 | 589 |
Total debt | 105,096 | 107,376 |
Less current maturities | (1,321) | (1,139) |
Long-term debt, net of current maturities | 103,775 | 106,237 |
Line of Credit | Secured Revolving Credit Facility | Bank of America NA And Other Lenders | ||
Debt Instrument [Line Items] | ||
Bank revolving credit facilities, interest primarily at LIBOR plus a spread | $ 96,835 | $ 100,000 |
Debt - Additional Information (
Debt - Additional Information (Details) | Aug. 24, 2018USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2018USD ($) | Aug. 24, 2018CAD ($) | Aug. 23, 2018USD ($) | Aug. 23, 2018CAD ($) | Aug. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||
Tax Exempt Economic Development Revenue Bond | $ 8,000,000 | |||||||
Repayments of Debt | $ 8,000,000 | |||||||
For Certain Obligations Workers Compensation And Performance Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding, amount | $ 10,000,000 | $ 10,000,000 | ||||||
Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700,000,000 | $ 15,000,000 | $ 335,000,000 | $ 15,000,000 | ||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 3,000,000 | |||||||
Credit Facility, Term | 5 years | |||||||
Line of Credit | Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | |||||||
Line of Credit | Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.45% | |||||||
Line of Credit | Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Amended Credit Agreement, Interest Rate Option 1 | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||
Line of Credit | Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Amended Credit Agreement, Interest Rate Option 1 | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||
Line of Credit | Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Amended Credit Agreement, Interest Rate Option 2 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||
Line of Credit | Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Amended Credit Agreement, Interest Rate Option 2 | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||||
Line of Credit | Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Amended Credit Agreement, Interest Rate Option 2 | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Line of Credit | Senior Secured Revolving Credit Facility | Bank of America NA And Other Lenders | Amended Credit Agreement, Interest Rate Option 2 | Federal Funds Effective Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Line of Credit | Secured Revolving Credit Facility | Bank of America NA And Other Lenders | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank revolving credit facilities, interest primarily at LIBOR plus a spread | $ 96,835,000 | $ 100,000,000 | ||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.78% | 3.57% |
Debt - Summary of Principal Pay
Debt - Summary of Principal Payments on Long-term Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Long-term Debt, by Maturity [Abstract] | ||
2020 | $ 94 | |
2021 | 47 | |
2022 | 49 | |
2023 | 96,887 | |
2024 | 56 | |
Thereafter | 189 | |
Total | 97,322 | |
Total less interest | 97,322 | |
Capital Leases, Future Minimum Payments, Net Minimum Payments [Abstract] | ||
2020 | 1,917 | |
2021 | 1,799 | |
2022 | 1,751 | |
2023 | 1,622 | |
2024 | 1,346 | |
Thereafter | 1,694 | |
Total | 10,129 | |
Amounts representing interest | (2,355) | |
Total less interest | 7,774 | $ 6,787 |
Long Term Debt and Capital Lease Obligations Due [Abstract] | ||
2020 | 2,011 | |
2021 | 1,846 | |
2022 | 1,800 | |
2023 | 98,509 | |
2024 | 1,402 | |
Thereafter | 1,883 | |
Total | 107,451 | |
Amounts representing interest | (2,355) | |
Total debt | $ 105,096 | $ 107,376 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Obligations Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | $ 27,000 | $ 27,000 | $ 25,000 |
Future minimum obligations under non-cancelable operating leases: | |||
2020 | 21,286 | ||
2021 | 15,301 | ||
2022 | 12,488 | ||
2023 | 10,419 | ||
2024 | 5,035 | ||
Thereafter | 16,095 | ||
Total | $ 80,624 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Environmental Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning Balance | $ 53,832 | $ 48,398 |
Liabilities Established (Released), Net | 1,302 | 9,172 |
Payments and Other | (3,335) | (3,738) |
Ending Balance | 51,799 | 53,832 |
Short- Term | 6,030 | 6,682 |
Long- Term | $ 45,769 | $ 47,150 |
Commitments and Contingencies_3
Commitments and Contingencies - Recycling Operations and Other Legacy (Details) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017potentially_responsible_party | Jan. 31, 2017USD ($) | Aug. 31, 2019USD ($)Subarea | Aug. 31, 2018USD ($) | Aug. 31, 2007USD ($) | Aug. 31, 2017USD ($) | Jan. 30, 2017potentially_responsible_partyparty | Aug. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Accrual for Environmental Loss Contingencies | $ 51,799,000 | $ 53,832,000 | $ 48,398,000 | |||||
Parties named in Litigation | party | 30 | |||||||
Liabilities Established | 1,302,000 | 9,172,000 | ||||||
Insurance Receivable | 89,000,000 | 36,000,000 | ||||||
Other Auto and Metals Recycling Business Sites | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrual for Environmental Loss Contingencies | 52,000,000 | 54,000,000 | ||||||
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 | |||||||
Portland Harbor Superfund Site | Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Site contingency proposed subareas for remedial design | Subarea | 8 | |||||||
Site contingency expected completion term for remedial design | 3 years | |||||||
Portland Harbor Superfund Site | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Site contingency proposed subareas for remedial design | Subarea | 10 | |||||||
Site contingency expected completion term for remedial design | 4 years | |||||||
Portland Harbor Superfund Site | Lower Willamette Group | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remedial Investigation and Feasibility Study Costs | $ 155,000,000 | |||||||
Number of Years for Remedial Investigation and Feasibility Study | 18 years | |||||||
Portland Harbor Superfund Site | Potential Responsible Parties | ||||||||
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 | |||||||
Portland Harbor Superfund Site | Potential Responsible Parties | Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Site Contingency, Least Costly Remediation Plan Discounted | $ 170,000,000 | |||||||
Estimated Cost of Selected Remedy, Range | (30.00%) | |||||||
Portland Harbor Superfund Site | Potential Responsible Parties | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Site Contingency, Most Costly Remediation Plan Discounted | $ 2,500,000,000 | |||||||
Estimated Cost of Selected Remedy, Range | 50.00% | |||||||
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 1 - Remediation of Shredder Residue | Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, range of possible loss | 0 | |||||||
Legacy Environmental Site 1 - Remediation of Shredder Residue | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, range of possible loss | 28,000,000 | |||||||
Legacy Environmental Site 2 - Remediation of Soil and Groundwater Conditions | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrual for Environmental Loss Contingencies | $ 6,000,000 | $ 6,000,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Steel Manufacturing Operations (Details) T in Thousands | 12 Months Ended | ||
Aug. 31, 2019USD ($)T | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 51,799,000 | $ 53,832,000 | $ 48,398,000 |
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_5
Commitments and Contingencies - Other (Details) $ in Millions | Oct. 24, 2019USD ($)lawsuit | Oct. 24, 2019USD ($) | Aug. 31, 2019USD ($)lawsuit | Aug. 31, 2018USD ($) |
Loss Contingencies [Line Items] | ||||
Insurance Receivable | $ 89 | $ 36 | ||
GEORGIA | Wrongful Death Lawsuits | ||||
Loss Contingencies [Line Items] | ||||
Amount Awarded | $ 103 | |||
GEORGIA | Wrongful Death Lawsuits | Settled Litigation | ||||
Loss Contingencies [Line Items] | ||||
Claims Settled | lawsuit | 3 | |||
Amount Awarded | $ 35 | |||
GEORGIA | Wrongful Death Lawsuits | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Claims Filed | lawsuit | 5 | |||
Accrual loss contingencies amount | $ 83 | |||
Insurance Receivable | $ 30 | |||
Subsequent Event | GEORGIA | Wrongful Death Lawsuits | Settled Litigation | ||||
Loss Contingencies [Line Items] | ||||
Claims Settled | lawsuit | 2 | |||
Amount Awarded | $ 68 | |||
Subsequent Event | GEORGIA | Wrongful Death Lawsuits | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Accrual loss contingencies paid amount | $ 83 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | $ 670,110 | $ 537,493 | $ 501,432 |
Total other comprehensive (loss) income, net of tax | (1,526) | (1,944) | 4,822 |
Ending balance | 701,296 | 670,110 | 537,493 |
Foreign Currency Translation Adjustments | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (34,129) | (31,828) | (34,539) |
Other comprehensive (loss) income before reclassifications | (1,560) | (2,301) | 2,711 |
Income tax (benefit) expense | 0 | 0 | 0 |
Other comprehensive (loss) income before reclassifications, net of tax | (1,560) | (2,301) | 2,711 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Income tax benefit | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of tax | (1,560) | (2,301) | 2,711 |
Ending balance | (35,689) | (34,129) | (31,828) |
Pension Obligations, net | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (3,108) | (3,465) | (5,576) |
Other comprehensive (loss) income before reclassifications | (326) | 64 | 1,477 |
Income tax (benefit) expense | 65 | 172 | (194) |
Other comprehensive (loss) income before reclassifications, net of tax | (261) | 236 | 1,283 |
Amounts reclassified from accumulated other comprehensive loss | 369 | 536 | 851 |
Income tax benefit | (74) | (415) | (23) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 295 | 121 | 828 |
Total other comprehensive (loss) income, net of tax | 34 | 357 | 2,111 |
Ending balance | (3,074) | (3,108) | (3,465) |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) In Accumulated Other Comprehensive Loss [Roll Forward] | |||
Beginning balance | (37,237) | (35,293) | (40,115) |
Other comprehensive (loss) income before reclassifications | (1,886) | (2,237) | 4,188 |
Income tax (benefit) expense | 65 | 172 | (194) |
Other comprehensive (loss) income before reclassifications, net of tax | (1,821) | (2,065) | 3,994 |
Amounts reclassified from accumulated other comprehensive loss | 369 | 536 | 851 |
Income tax benefit | (74) | (415) | (23) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 295 | 121 | 828 |
Total other comprehensive (loss) income, net of tax | (1,526) | (1,944) | 4,822 |
Ending balance | $ (38,763) | $ (37,237) | $ (35,293) |
Revenue - Summary of Revenues D
Revenue - Summary of Revenues Disaggregated by Major Product and Sales Destination for Each Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 669,577 | $ 652,416 | $ 559,443 | $ 483,279 | $ 2,132,781 | $ 2,364,715 | $ 1,687,591 |
AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,673,365 | 1,884,074 | 1,347,971 | ||||||||
Ferrous Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,164,719 | ||||||||||
Nonferrous Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 468,023 | ||||||||||
Steel Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 367,956 | 367,560 | 280,767 | ||||||||
Retail and Other Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 132,083 | ||||||||||
Operating Segments | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,684,977 | 1,908,966 | 1,363,618 | ||||||||
Operating Segments | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 459,416 | 480,641 | 339,620 | ||||||||
Operating Segments | Ferrous Revenues | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,123,180 | ||||||||||
Operating Segments | Ferrous Revenues | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 51,963 | ||||||||||
Operating Segments | Nonferrous Revenues | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 430,361 | ||||||||||
Operating Segments | Nonferrous Revenues | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 38,809 | ||||||||||
Operating Segments | Steel Revenues | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Operating Segments | Steel Revenues | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 367,956 | ||||||||||
Operating Segments | Retail and Other Revenues | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 131,436 | ||||||||||
Operating Segments | Retail and Other Revenues | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 688 | ||||||||||
Intersegment Revenue Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (11,612) | ||||||||||
Intersegment Revenue Eliminations | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (11,612) | $ (24,892) | $ (15,647) | ||||||||
Intersegment Revenue Eliminations | Ferrous Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (10,424) | ||||||||||
Intersegment Revenue Eliminations | Nonferrous Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (1,147) | ||||||||||
Intersegment Revenue Eliminations | Steel Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Intersegment Revenue Eliminations | Retail and Other Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (41) | ||||||||||
Foreign | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,141,077 | ||||||||||
Foreign | Operating Segments | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,047,546 | ||||||||||
Foreign | Operating Segments | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 93,531 | ||||||||||
Foreign | Intersegment Revenue Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Domestic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 991,704 | ||||||||||
Domestic | Operating Segments | AMR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 637,431 | ||||||||||
Domestic | Operating Segments | CSS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 365,885 | ||||||||||
Domestic | Intersegment Revenue Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ (11,612) |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Receivables from contracts with customers, net of allowance for doubtful accounts | $ 142 | $ 164 |
Percentage of receivables from contracts with customers of accounts receivable | 97.00% | 97.00% |
Contract liabilities | $ 3 | $ 9 |
Customer deposits reclassified to revenue | $ 8 |
Employee Benefits - Defined Ben
Employee Benefits - Defined Benefit Pension Plan and Supplemental Executive Retirement Benefit Plan - Additional Information (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, amortization of gain (loss), percent threshold | 5.00% | |
Defined benefit plan, benefit obligation | $ 17,000,000 | $ 15,000,000 |
Defined benefit plan, funded (unfunded) status of plan | 3,000,000 | $ 2,000,000 |
Defined benefit plan, expected future employer contributions, next fiscal year | $ 0 | |
Defined benefit plan, assumptions used calculating benefit obligation, discount rate | 2.83% | 4.01% |
Supplemental Employee Retirement Plan, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, funded (unfunded) status of plan | $ (5,000,000) | $ (4,000,000) |
Assets for plan benefits, defined benefit plan | 4,000,000 | 4,000,000 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 20,000,000 | $ 17,000,000 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, annual expected future benefit payments | 1,000,000 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, annual expected future benefit payments | $ 4,000,000 |
Employee Benefits - Multiemploy
Employee Benefits - Multiemployer Pension Plans - Additional Information (Details) $ in Millions | 12 Months Ended | ||||
Aug. 31, 2019USD ($)Plan | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2004 | Oct. 01, 2029 | |
Steelworkers Western Independent Shops Pension Plan | |||||
Multiemployer Plans [Line Items] | |||||
Multiemployer plan, expiration date | Mar. 31, 2022 | ||||
Multiemployer plan, contributions by employer | $ 3 | $ 3 | $ 3 | ||
Internal revenue service extension period | 7 years | ||||
Steelworkers Western Independent Shops Pension Plan | Scenario, Forecast | |||||
Multiemployer Plans [Line Items] | |||||
Minimum valuation funded percentage | 100.00% | ||||
Steelworkers Western Independent Shops Pension Plan | Minimum | |||||
Multiemployer Plans [Line Items] | |||||
Multiemployer plan rehabilitation plan contributions as a percent of total contributions | 5.00% | 5.00% | 5.00% | ||
Multiemployer Plans, Pension | |||||
Multiemployer Plans [Line Items] | |||||
Number of multiemployer plans | Plan | 14 | ||||
Multiemployer plan, contributions by employer | $ 6 | $ 5 | $ 4 |
Employee Benefits - Defined Con
Employee Benefits - Defined Contribution Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Defined contribution plan, cost | $ 4 | $ 4 | $ 3 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Cost of Goods Sold or Selling, General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 17 | $ 19 | $ 11 |
Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 12.2 | ||
Number of shares available for grant (in shares) | 3.4 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Units ("RSUs") - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit expense | $ 6 | $ 7 | $ 6 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 261,642 | 252,865 | 314,862 |
Vesting percentage per year | 20.00% | ||
Vesting term | 5 years | ||
Shares granted, fair value | $ 7 | $ 7 | $ 7 |
Weighted average grant date fair value, granted | $ 27.61 | $ 26.60 | $ 20.95 |
Total fair value of shares vested during period | $ 7 | $ 8 | $ 5 |
Compensation cost not yet recognized | $ 6 | ||
Compensation cost not yet recognized, period for recognition | 2 years | ||
Restricted Stock Units (RSUs) | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares entitled to be received upon vesting | 1 |
Share-based Compensation - Summ
Share-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Number of Shares: | |||
Outstanding, Beginning Balance (in shares) | 812,000 | ||
Granted (in shares) | 261,642 | 252,865 | 314,862 |
Vested (in shares) | (257,000) | ||
Forfeited (in shares) | (19,000) | ||
Outstanding, Ending Balance (in shares) | 798,000 | 812,000 | |
Weighted Average Grant Date Fair Value: | |||
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 22.59 | ||
Granted, Weighted Average Grant Date Fair Value | 27.61 | $ 26.60 | $ 20.95 |
Vested, Weighted Average Grant Date Fair Value | 22.75 | ||
Forfeited, Weighted Average Grant Date Fair Value | 24.23 | ||
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 24.14 | $ 22.59 |
Share-based Compensation - Perf
Share-based Compensation - Performance Share Awards - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Aug. 31, 2019USD ($)company$ / sharesshares | Aug. 31, 2018USD ($)$ / sharesshares | Aug. 31, 2017USD ($)Occasion$ / sharesshares | |
Performance Shares (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award requisite service period | 3 years | 3 years | 3 years |
Number of occasion of shares were granted | Occasion | 2 | ||
Shares granted (in shares) | 254,620 | 246,161 | 302,257 |
Weighted average grant date fair value, granted | $ / shares | $ 28.37 | $ 27.32 | $ 21.52 |
Share vested | $ | $ 13 | $ 4 | |
Shares vested (in shares) | 500,000 | 0 | |
Compensation cost not yet recognized | $ | $ 8 | ||
Compensation cost not yet recognized, period for recognition | 2 years | ||
Performance Shares (PSUs) | Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shareholder return designated peer group | company | 16 | ||
Performance Shares (PSUs) | Requisite Service Period One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award requisite service period | 3 years | ||
Performance Shares (PSUs) | Requisite Service Period Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award requisite service period | 2 years 6 months | ||
Performance Shares (PSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based awards award payouts threshold | 50.00% | ||
Performance Shares (PSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based awards award payouts threshold | 200.00% | ||
Total Shareholder Return (TSR) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ | $ 4 | $ 3 | $ 2 |
Shares granted (in shares) | 123,812 | 119,763 | 146,768 |
Return on Capital Employed (ROCE) and Cash Flow Return on Investment Awards (CFROI) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ | $ 6 | $ 8 | $ 2 |
Return on Capital Employed Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 130,808 | 126,398 | |
Cash Flow Return on Investment Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 155,489 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Fair Value using Monte-Carlo Simulation Model Utilizing Several Key Assumptions (Details) - Total Shareholder Return (TSR) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected share price volatility | 42.50% | 44.30% | |
Risk-free rate of return | 2.89% | 1.79% | |
Expected share price volatility, minimum | 40.90% | ||
Expected share price volatility, maximum | 43.30% | ||
Risk-free rate of return, minimum | 1.11% | ||
Risk-free rate of return, maximum | 1.31% | ||
Peer Group | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected share price volatility | 51.40% | 55.40% | |
Expected correlation | 35.60% | 35.40% | |
Expected share price volatility, minimum | 52.30% | ||
Expected share price volatility, maximum | 55.10% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected correlation | 36.20% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected correlation | 36.50% |
Share-based Compensation - Su_3
Share-based Compensation - Summary of Performance-based Awards Activity (Details) - Performance Shares (PSUs) - $ / shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Number of Shares: | |||
Outstanding, Beginning Balance (in shares) | 880,000 | ||
Granted (in shares) | 254,620 | 246,161 | 302,257 |
Performance achievement (in shares) | 170,000 | ||
Vested (in shares) | (500,000) | 0 | |
Forfeited (in shares) | (32,000) | ||
Outstanding, Ending Balance (in shares) | 773,000 | 880,000 | |
Weighted Average Grant Date Fair Value: | |||
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 22.09 | ||
Granted, Weighted Average Grant Date Fair Value | 28.37 | $ 27.32 | $ 21.52 |
Performance achievement, Weighted Average Grant Date Fair Value | 18.54 | ||
Vested, Weighted Average Grant Date Fair Value | 18.78 | ||
Forfeited, Weighted Average Grant Date Fair Value | 22.75 | ||
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 25.49 | $ 22.09 |
Share-based Compensation - Defe
Share-based Compensation - Deferred Stock Units - Additional Information (Details) - Deferred Stock Units (DSUs) - Non-employee Directors - shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 31,218 | 21,806 | 42,771 |
Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, number of shares per stock unit | 1 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income from continuing operations before income taxes [Abstract] | |||
United States | $ 69,476 | $ 131,518 | $ 43,871 |
Foreign | 6,764 | 10,335 | 4,819 |
Income from continuing operations before income taxes | $ 76,240 | $ 141,853 | $ 48,690 |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income Tax Expense (Benefit) from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Current: | |||
Federal | $ 2,690 | $ 19,511 | $ (1,130) |
State | 315 | 894 | 190 |
Foreign | 52 | (16) | |
Total current tax expense (benefit) | 3,057 | 20,405 | (956) |
Deferred: | |||
Federal | 12,930 | (5,700) | 2,046 |
State | 794 | (1,962) | 232 |
Foreign | 889 | (30,333) | |
Total deferred tax expense (benefit) | 14,613 | (37,995) | 2,278 |
Total income tax expense (benefit) | $ 17,670 | $ (17,590) | $ 1,322 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Difference Between the Federal Statutory Rate and the Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Reconciliation of the difference between the federal statutory rate and the Company's effective tax rate [Abstract] | |||
Federal statutory rate | 21.00% | 25.70% | 35.00% |
State taxes, net of credits | 1.20% | 0.40% | 1.80% |
Foreign income taxed at different rates | (0.20%) | (0.50%) | (1.90%) |
Valuation allowance on deferred tax assets | (0.20%) | (35.80%) | (31.20%) |
Federal rate change | (4.90%) | ||
Non-deductible officers’ compensation | 1.80% | 1.60% | 2.20% |
Noncontrolling interests | (0.50%) | (0.60%) | (1.80%) |
Research and development credits | (0.50%) | (0.60%) | (1.50%) |
Tax return to provision adjustment | 0.50% | ||
Unrecognized tax benefits | 0.70% | 3.40% | 1.30% |
Realized foreign investment basis | (0.40%) | (0.20%) | (0.90%) |
Excess tax benefit from stock-based compensation | (1.20%) | (0.30%) | |
Other | 1.00% | (0.60%) | (0.30%) |
Effective tax rate | 23.20% | (12.40%) | 2.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2018 | Feb. 28, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Taxes [Line Items] | |||||
Federal statutory rate | 21.00% | 25.70% | 35.00% | ||
Tax cut and jobs act of 2017 discrete income tax expense (benefit) | $ (7) | $ (37) | |||
Effective tax rate | 23.20% | (12.40%) | 2.70% | ||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (30) | $ (7) | $ (37) | ||
Foreign Country | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | $ 16 | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards expirations period | 2019 | ||||
Income tax examination, year under examination | 2013 | ||||
Minimum | Foreign Country | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards expirations period | 2024 | ||||
Maximum | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards expirations period | 2032 | ||||
Income tax examination, year under examination | 2018 | ||||
Maximum | Foreign Country | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards expirations period | 2039 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Deferred tax assets: | ||
Amortizable goodwill and other intangibles | $ 22,646 | $ 27,433 |
State credit carryforwards | 8,202 | 8,243 |
Environmental liabilities | 7,164 | 7,853 |
Net operating loss carryforwards | 7,122 | 7,206 |
Employee benefit accruals | 6,289 | 10,677 |
Inventory valuation methods | 1,748 | 944 |
Other | 6,405 | 6,320 |
Valuation allowances | (16,436) | (16,484) |
Total deferred tax assets | 43,140 | 52,192 |
Deferred tax liabilities: | ||
Accelerated depreciation and other basis differences | 37,493 | 31,622 |
Prepaid expense acceleration | 2,263 | 1,979 |
Total deferred tax liabilities | 39,756 | 33,601 |
Net deferred tax asset | $ 3,384 | $ 18,591 |
Income Taxes - Summary of Reser
Income Taxes - Summary of Reserve for Unrecognized Tax Benefits, Excluding Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, as of the beginning of the year | $ 5,054 | $ 5,548 | $ 4,724 |
Additions for tax positions of prior years | 171 | ||
Reductions for tax positions of prior years | (151) | (120) | |
Additions for tax positions of the current year | 507 | 596 | 944 |
Reduction attributable to federal tax reform | 0 | (1,261) | 0 |
Unrecognized tax benefits, as of the end of the year | $ 5,410 | $ 5,054 | $ 5,548 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Basic and Diluted Net Income Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Income from continuing operations | $ 58,570 | $ 159,443 | $ 47,368 | ||||||||
Net income attributable to noncontrolling interests | (1,977) | (3,338) | (2,467) | ||||||||
Income from continuing operations attributable to SSI shareholders | $ 11,621 | $ 15,682 | $ 13,030 | $ 16,260 | $ 59,396 | $ 37,458 | $ 40,852 | $ 18,399 | 56,593 | 156,105 | 44,901 |
(Loss) income from discontinued operations, net of tax | (248) | 346 | (390) | ||||||||
Net income attributable to SSI shareholders | $ 11,575 | $ 15,690 | $ 12,892 | $ 16,188 | $ 59,669 | $ 37,402 | $ 41,016 | $ 18,364 | $ 56,345 | $ 156,451 | $ 44,511 |
Computation of shares: | |||||||||||
Weighted average common shares outstanding, basic | 27,527 | 27,645 | 27,537 | ||||||||
Incremental common shares attributable to dilutive performance share, RSU and DSU awards | 695 | 944 | 604 | ||||||||
Weighted average common shares outstanding, diluted | 28,222 | 28,589 | 28,141 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 92,873 | 62,019 | 251,899 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Purchases from joint ventures | $ 15 | $ 16 | $ 14 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2018USD ($)jointventureinterest | Aug. 31, 2018jointventureinterest | Aug. 31, 2017jointventureinterest | Aug. 31, 2019jointventureinterest | |
Segment Reporting Information [Line Items] | ||||
Number of Equity Method Investments | 2 | |||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Environmental remediation expense | $ | $ 1 | |||
AMR | ||||
Segment Reporting Information [Line Items] | ||||
Number of Equity Method Investments | 2 | 2 | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||
Number of Joint Venture Investments | 1 | |||
Number of equity method investments, divested in the period | 2 | |||
CSS | ||||
Segment Reporting Information [Line Items] | ||||
Number of Equity Method Investments | 1 | |||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Number of Joint Venture Investments | 1 | |||
Number of equity method investments, divested in the period | 1 |
Segment Information - Summary o
Segment Information - Summary of Total Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,160,746 | $ 1,104,817 |
Property, plant and equipment, net | 456,400 | 415,711 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,331,197 | 2,226,593 |
Operating Segments | Auto and Metals Recycling | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,561,267 | 1,485,626 |
Operating Segments | Cascade Steel and Scrap | ||
Segment Reporting Information [Line Items] | ||
Total assets | 769,930 | 740,967 |
Corporate and eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ (1,170,451) | $ (1,121,776) |
Segment Information - Summary_2
Segment Information - Summary of Total Assets (Parenthetical) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Investments in joint ventures | $ 10,276 | $ 11,532 |
Property, plant and equipment, net | 456,400 | 415,711 |
CANADA | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 14,000 | 15,000 |
AMR | ||
Segment Reporting Information [Line Items] | ||
Investments in joint ventures | 3,000 | 4,000 |
CSS | ||
Segment Reporting Information [Line Items] | ||
Investments in joint ventures | $ 7,000 | $ 8,000 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Income from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 669,577 | $ 652,416 | $ 559,443 | $ 483,279 | $ 2,132,781 | $ 2,364,715 | $ 1,687,591 |
Depreciation and amortization | 53,336 | 49,672 | 49,840 | ||||||||
Capital expenditures | 94,613 | 77,626 | 44,940 | ||||||||
Operating income | $ 17,681 | $ 24,459 | $ 19,036 | $ 22,689 | $ 37,973 | $ 51,234 | $ 33,358 | $ 26,423 | 83,865 | 148,988 | 56,013 |
Restructuring charges and other exit-related activities | 365 | (661) | (109) | ||||||||
Interest expense | (8,266) | (8,983) | (8,081) | ||||||||
Other income, net | 641 | 1,848 | 758 | ||||||||
Income from continuing operations before income taxes | 76,240 | 141,853 | 48,690 | ||||||||
AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,673,365 | 1,884,074 | 1,347,971 | ||||||||
Operating Segments | AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,684,977 | 1,908,966 | 1,363,618 | ||||||||
Operating Segments | CSS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 459,416 | 480,641 | 339,620 | ||||||||
Less: Intersegment revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (11,612) | ||||||||||
Less: Intersegment revenues | AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (11,612) | (24,892) | (15,647) | ||||||||
Continuing Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 53,336 | 49,672 | 49,840 | ||||||||
Capital expenditures | 94,613 | 77,626 | 44,940 | ||||||||
Operating income | 83,865 | 148,988 | 56,013 | ||||||||
Restructuring charges and other exit-related activities | (365) | 661 | 109 | ||||||||
Interest expense | (8,266) | (8,983) | (8,081) | ||||||||
Other income, net | 641 | 1,848 | 758 | ||||||||
Income from continuing operations before income taxes | 76,240 | 141,853 | 48,690 | ||||||||
Continuing Operations | AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 95,991 | 169,120 | 91,405 | ||||||||
Continuing Operations | CSS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 31,951 | 38,286 | 5,275 | ||||||||
Continuing Operations | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 50,597 | 47,288 | 47,378 | ||||||||
Capital expenditures | 94,051 | 76,699 | 44,799 | ||||||||
Operating income | 127,942 | 207,406 | 96,680 | ||||||||
Continuing Operations | Operating Segments | AMR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 38,816 | 35,564 | 34,853 | ||||||||
Capital expenditures | 78,706 | 67,099 | 34,575 | ||||||||
Continuing Operations | Operating Segments | CSS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 11,781 | 11,724 | 12,525 | ||||||||
Capital expenditures | 15,345 | 9,600 | 10,224 | ||||||||
Continuing Operations | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 2,739 | 2,384 | 2,462 | ||||||||
Capital expenditures | 562 | 927 | 141 | ||||||||
Continuing Operations | Corporate and eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | $ (43,712) | $ (59,079) | $ (40,776) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Operating Income from Segments to Consolidated (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Income (loss) from joint ventures | $ 1,452 | $ 1,953 | $ 3,674 |
Asset impairment charges (recoveries), net | 63 | (1,021) | (717) |
AMR | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from joint ventures | 2,000 | ||
AMR | Maximum | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from joint ventures | 1,000 | (1,000) | |
CSS | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from joint ventures | $ 1,000 | $ 2,000 | $ 1,000 |
Segment Information - Schedule
Segment Information - Schedule of Revenues from External Customers By Major Product and Destination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 669,577 | $ 652,416 | $ 559,443 | $ 483,279 | $ 2,132,781 | $ 2,364,715 | $ 1,687,591 |
Ferrous revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,164,719 | 1,328,447 | 855,161 | ||||||||
Nonferrous revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 468,023 | 529,466 | 425,989 | ||||||||
Steel Revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 367,956 | 367,560 | 280,767 | ||||||||
Retail and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 132,083 | 139,242 | 125,674 | ||||||||
Foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,141,077 | 1,354,460 | 894,265 | ||||||||
Domestic | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 991,704 | $ 1,010,255 | $ 793,326 |
Segment Information - Schedul_2
Segment Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 669,577 | $ 652,416 | $ 559,443 | $ 483,279 | $ 2,132,781 | $ 2,364,715 | $ 1,687,591 |
Turkey | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 0 | $ 262,835 | $ 0 | ||||||||
Turkey | Sales | Customer Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
% of Revenue | 0.00% | 11.00% | 0.00% | ||||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 0 | $ 255,097 | $ 216,231 | ||||||||
China | Sales | Customer Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
% of Revenue | 0.00% | 11.00% | 13.00% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Revenues | $ 547,800 | $ 547,396 | $ 473,565 | $ 564,020 | $ 669,577 | $ 652,416 | $ 559,443 | $ 483,279 | $ 2,132,781 | $ 2,364,715 | $ 1,687,591 | |||
Cost of goods sold | 479,117 | 474,598 | 414,688 | 490,132 | 582,608 | 549,164 | 472,462 | 406,251 | 1,858,535 | 2,010,485 | 1,464,508 | |||
Operating income | 17,681 | 24,459 | 19,036 | 22,689 | 37,973 | 51,234 | 33,358 | 26,423 | 83,865 | 148,988 | 56,013 | |||
Income from continuing operations attributable to SSI shareholders | $ 11,621 | $ 15,682 | $ 13,030 | $ 16,260 | $ 59,396 | $ 37,458 | $ 40,852 | $ 18,399 | $ 56,593 | $ 156,105 | $ 44,901 | |||
Basic income per share from continuing operations attributable to SSI shareholders | $ 0.42 | $ 0.57 | $ 0.47 | $ 0.59 | $ 2.17 | $ 1.35 | $ 1.47 | $ 0.66 | $ 2.06 | $ 5.65 | $ 1.63 | |||
Diluted income per share from continuing operations attributable to SSI shareholders | $ 0.41 | $ 0.56 | $ 0.46 | $ 0.57 | $ 2.08 | $ 1.31 | $ 1.42 | $ 0.64 | $ 2.01 | $ 5.46 | $ 1.60 | |||
Net income | $ 11,967 | $ 16,440 | $ 13,297 | $ 16,618 | $ 60,201 | $ 38,448 | $ 41,919 | $ 19,221 | $ 58,322 | $ 159,789 | $ 46,978 | |||
Net income attributable to SSI shareholders | $ 11,575 | $ 15,690 | $ 12,892 | $ 16,188 | $ 59,669 | $ 37,402 | $ 41,016 | $ 18,364 | $ 56,345 | $ 156,451 | $ 44,511 | |||
Basic net income per share attributable to SSI shareholders | $ 0.42 | $ 0.57 | $ 0.47 | $ 0.59 | $ 2.18 | $ 1.35 | $ 1.48 | $ 0.66 | $ 2.05 | $ 5.66 | $ 1.62 | |||
Diluted net income per share attributable to SSI shareholders | $ 0.41 | $ 0.56 | $ 0.46 | $ 0.57 | $ 2.09 | $ 1.31 | $ 1.42 | $ 0.64 | $ 2 | [1] | $ 5.47 | [1] | $ 1.58 | [1] |
[1] | May not foot due to rounding. |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2018 | Feb. 28, 2018 | Aug. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||
Tax cut and jobs act of 2017 discrete income tax expense (benefit) | $ (7) | $ (37) | |
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (30) | $ (7) | $ (37) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Allowance for doubtful accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 2,586 | $ 2,280 | $ 2,315 |
Charges to Cost and Expenses | 74 | 323 | 126 |
Deductions | (1,091) | (17) | (161) |
Balance at End of Period | 1,569 | 2,586 | 2,280 |
Deferred tax valuation allowance | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 16,484 | 67,348 | 83,891 |
Charges to Cost and Expenses | 472 | 0 | 690 |
Deductions | (520) | (50,864) | (17,233) |
Balance at End of Period | $ 16,436 | $ 16,484 | $ 67,348 |