Business Segments

12 Months Ended

Aug. 31, 2013

Segment Reporting [Abstract]

Business segments

NOTE 21. 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 Company structures the business into the following five segments: Americas Recycling, Americas Mills, Americas Fabrication, International Mill and International Marketing and Distribution. The Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment manufactures finished long steel products including rebar, merchant bar, light structural, some special bar quality (SBQ) and other special sections as well as semi-finished billets for re-rolling and forging applications. The Americas Fabrication segment consists of the Company's rebar and structural fabrication operations, fence post manufacturing plants, construction-related product facilities and plants that heat-treat steel to strengthen and provide flexibility. The International Mill segment includes the Company's minimill and the Company's recycling and fabrication operations in Poland. The International Marketing and Distribution segment includes international operations for the sale, distribution and processing of steel products, ferrous and nonferrous metals and other industrial products. Additionally, this segment includes the Company's U.S.-based marketing and distribution divisions and also operates a recycling facility in Singapore. 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. Additionally, the financial information presented for the Americas Mills segment excludes Howell. These operations have been classified as discontinued operations in the consolidated statements of operations. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions for more information.

The Company uses adjusted operating profit (loss) to measure the financial performance of its segments. 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 the summary of significant accounting policies.

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

	Americas								International
(in thousands)	Recycling		Mills			Fabrication			Mill		Marketing and Distribution		Corporate			Eliminations			Continuing Operations
2013
Net sales-unaffiliated customers	$	1,225,604	$	1,060,337		$	1,427,785		$	819,889	$	2,344,128	$	11,832		$	—		$	6,889,575
Intersegment sales	166,145		759,183			14,906			6,155		11,444		—			(957,833		)	—
Net sales	1,391,749		1,819,520			1,442,691			826,044		2,355,572		11,832			(957,833		)	6,889,575
Adjusted operating profit (loss)	3,170		204,333			28,033			890		35,617		(66,453		)	848			206,438
Interest expense*	9		(101		)	83			992		4,369		64,256			—			69,608
Capital expenditures**	21,261		37,216			5,605			15,155		1,015		7,552			—			87,804
Depreciation and amortization***	13,453		42,925			22,302			33,238		17,988		21,096			—			151,002
Total assets****	309,599		598,478			631,510			487,613		838,413		1,075,594			(496,946		)	3,444,261
2012
Net sales-unaffiliated customers	$	1,418,717	$	1,206,651		$	1,366,944		$	955,730	$	2,700,300	$	8,033		$	—		$	7,656,375
Intersegment sales	187,444		777,070			14,694			77,627		27,019		—			(1,083,854		)	—
Net sales	1,606,161		1,983,721			1,381,638			1,033,357		2,727,319		8,033			(1,083,854		)	7,656,375
Adjusted operating profit (loss)	39,446		235,918			(15,697		)	23,044		47,287		(83,035		)	(6,251		)	240,712
Interest expense*	1,933		12,995			10,809			10,090		6,548		27,112			—			69,487
Capital expenditures**	40,329		38,140			4,389			14,016		3,314		8,197			—			108,385
Depreciation and amortization***	13,260		40,704			22,056			32,306		5,821		20,295			—			134,442
Total assets****	285,136		615,070			629,970			529,160		870,933		961,654			(494,053		)	3,397,870
2011
Net sales-unaffiliated customers	$	1,692,824	$	1,111,483		$	1,208,823		$	1,043,267	$	2,603,494	$	6,882		$	—		$	7,666,773
Intersegment sales	136,713		728,235			16,899			2,966		47,405		—			(932,218		)	—
Net sales	1,829,537		1,839,718			1,225,722			1,046,233		2,650,899		6,882			(932,218		)	7,666,773
Adjusted operating profit (loss)	43,059		149,213			(129,141		)	47,594		76,337		(84,729		)	(1,275		)	101,058
Interest expense*	246		12,894			9,717			18,251		2,173		26,533			—			69,814
Capital expenditures**	7,666		24,169			2,029			14,278		2,873		7,896			—			58,911
Depreciation and amortization***	12,860		49,264			48,299			36,528		4,600		23,916			—			175,467
Total assets****	278,120		587,053			590,278			643,748		990,111		1,505,672			(1,047,716		)	3,547,266

________________________

* Includes intercompany interest expense (income) in the segments and is all eliminated within Corporate.

** Excludes capital expenditures from discontinued operations of $1.2 million, $5.5 million and $14.3 million for the years ended August 31, 2013, 2012 and 2011, respectively.

*** Includes asset impairment charges.

**** Excludes total assets from discontinued operations of $50.5 million at August 31, 2013, $43.4 million at August 31, 2012 and $135.9 million at August 31, 2011.

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

	Year Ended August 31,
(in thousands)	2013		2012			2011
Earnings from continuing operations	$	74,957	$	210,549		$	11,539
Income taxes (benefit)	57,979		(45,762		)	14,592
Interest expense	69,608		69,487			69,814
Discounts on sales of accounts receivable	3,894		6,438			5,113
Adjusted operating profit from continuing operations	$	206,438	$	240,712		$	101,058

Adjusted operating profit (loss) from discontinued operations for the years ended August 31, 2013, 2012 and 2011 was $3.7 million, $(10.7) million and $(138.2) million, respectively.

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

	Year Ended August 31,
(in thousands)	2013		2012		2011
Major product information:
Steel products	$	4,318,072	$	4,699,226	$	4,412,810
Industrial materials	928,472		1,147,386		1,134,819
Nonferrous scrap	682,611		765,349		997,717
Ferrous scrap	646,263		763,772		805,067
Construction materials	189,046		177,827		217,741
Nonferrous products	5,674		2,689		2,573
Other	119,437		100,126		96,046
Net sales	$	6,889,575	$	7,656,375	$	7,666,773

	Year Ended August 31,
(in thousands)	2013		2012		2011
Geographic area:
United States	$	4,107,231	$	4,503,786	$	4,166,960
Europe	1,108,196		1,313,611		1,581,688
Asia	1,094,458		1,018,675		1,131,332
Australia/New Zealand	488,108		617,919		564,084
Other	91,582		202,384		222,709
Net sales	$	6,889,575	$	7,656,375	$	7,666,773

The following table represents long-lived assets by geographic area:

	August 31,
(in thousands)	2013		2012		2011
United States	$	868,643	$	907,009	$	944,851
Europe	239,899		250,392		364,207
Australia/New Zealand	12,446		36,097		38,973
Other	7,618		7,917		8,847
Total long-lived assets	$	1,128,606	$	1,201,415	$	1,356,878