Business Segments

3 Months Ended

Nov. 30, 2012

Segment Reporting [Abstract]

Business segments

NOTE 15. BUSINESS SEGMENTS

The Company's reporting segments are based on strategic business areas, which offer different products and services. These segments have different lines of management responsibility as each business requires different marketing strategies and management expertise. The reporting segments are the Company's operating segments except for the Americas Mills reporting segment which includes the domestic steel mills operating segment and the domestic copper tube minimill operating segment. The domestic copper tube minimill is aggregated with the domestic steel mills because of similar economic characteristics, products, production processes, customers and distribution methods.

The Company structures its business into the following five segments: Americas Recycling, Americas Mills, Americas Fabrication, International Mill and International Marketing and Distribution. The Americas Recycling segment consists of the scrap metal processing and sales operations primarily in Texas, Florida and the southern United States. The Americas Mills segment includes the Company’s domestic steel mills, including the scrap processing facilities that directly support these mills, and the domestic copper tube minimill. The Americas Fabrication segment consists of the Company’s rebar fabrication operations, fence post manufacturing plants and construction-related and other products facilities. The International Mill segment includes the minimill, recycling and fabrication operations in Poland. International Marketing and Distribution includes international operations for the sales, distribution and processing of steel products, ferrous and nonferrous metals and other industrial products. Additionally, the International Marketing and Distribution segment includes the Company’s U.S.-based trading and distribution divisions, CMC Cometals and CMC Cometals Steel. Corporate contains expenses of the Company’s corporate headquarters and interest expense related to its long-term public debt.

The financial information presented for the International Mill segment excludes CMCS operations. These operations have been classified as discontinued operations in the consolidated statements of operations. See Note 7, Discontinued Operations, for more information.

The Company uses adjusted operating profit (loss) to measure segment performance. Intersegment sales are generally priced at prevailing market prices. Certain corporate administrative expenses are allocated to segments based upon the nature of the expense. The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements in the Annual Report on Form 10-K for the year ended August 31, 2012.

The following is a summary of certain financial information from continuing operations by reportable segment:

	Three Months Ended November 30, 2012
	Americas							International
(in thousands)	Recycling		Mills		Fabrication			Mill		Marketing and Distribution			Corporate			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	307,471	$	306,816	$	352,747		$	215,858	$	603,535		$	2,799		$	—		$	1,789,226
Intersegment sales	44,490		189,633		3,845			6,209		5,053			—			(249,230		)	—
Net sales	351,961		496,449		356,592			222,067		608,588			2,799			(249,230		)	1,789,226
Adjusted operating profit (loss)	4,494		52,522		10,192			876		40,161			(17,370		)	(660		)	90,215
Total assets*	277,756		660,400		623,055			536,787		894,807			1,028,927			(527,995		)	3,493,737
	Three Months Ended November 30, 2011
	Americas							International
(in thousands)	Recycling		Mills		Fabrication			Mill		Marketing and Distribution			Corporate			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	373,393	$	344,566	$	315,517		$	252,921	$	700,363		$	60		$	—		$	1,986,820
Intersegment sales	41,412		180,930		4,251			43,260		9,708			—			(279,561		)	—
Net sales	414,805		525,496		319,768			296,181		710,071			60			(279,561		)	1,986,820
Adjusted operating profit (loss)	20,816		57,931		(7,380		)	9,822		(4,101		)	(23,268		)	(6,145		)	47,675
Total assets at August 31, 2012*	285,136		676,909		629,970			529,160		870,933			961,654			(519,117		)	3,434,645

* Excludes total assets from discontinued operations of $3.8 million at November 30, 2012 and $6.6 million at August 31, 2012.

The following table provides a reconciliation of consolidated adjusted operating profit to net earnings from continuing operations:

	Three Months Ended November 30,
(in thousands)	2012		2011
Earnings from continuing operations	$	49,467	$	125,045
Income taxes (benefit)	22,515		(95,327		)
Interest expense	17,024		16,297
Discounts on sales of accounts receivable	1,209		1,660
Adjusted operating profit from continuing operations	90,215		47,675
Adjusted operating profit (loss) from discontinued operations	388		(26,552		)
Adjusted operating profit	$	90,603	$	21,123

The following represents the Company’s external net sales from continuing operations by major product and geographic area:

	Three Months Ended November 30,
(in thousands)	2012		2011
Major product information:
Steel products	$	1,104,597	$	1,155,840
Industrial materials	243,431		320,502
Nonferrous scrap	181,333		194,298
Ferrous scrap	151,017		207,346
Construction materials	48,148		44,494
Nonferrous products	39,122		40,113
Other	21,578		24,227
Net sales	$	1,789,226	$	1,986,820

	Three Months Ended November 30,
(in thousands)	2012		2011
Geographic area:
United States	$	1,022,105	$	1,153,779
Europe	285,042		352,188
Asia	310,029		281,042
Australia	153,656		147,563
Other	18,394		52,248
Net sales	$	1,789,226	$	1,986,820