BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS

12 Months Ended

Aug. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS

NOTE 10. BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS

Businesses Held for Sale

The assets and liabilities of businesses classified as held for sale are included in other current assets and accrued expenses on the Company's consolidated balance sheets. The Company did not have businesses classified as held for sale at August 31, 2014. The components of assets and liabilities of businesses held for sale were as follows.

(in thousands)	August 31, 2013
Assets:
Accounts receivable	$	20,313
Inventories, net	8,713
Other current assets	3,683
Property, plant and equipment, net of accumulated depreciation and amortization	10,459
Assets of businesses held for sale	$	43,168
Liabilities:
Accounts payable-trade	$	7,615
Accrued expenses and other payables	3,251
Liabilities of businesses held for sale	$	10,866

Discontinued Operations

During the fourth quarter of fiscal 2013, the Company decided to sell all of the capital stock of its wholly owned copper tube manufacturing operation, Howell Metal Company ("Howell"). The Company determined that the decision to sell this business met the definition of a discontinued operation. As a result, the Company included Howell in discontinued operations for all periods presented. Howell was previously an operating segment included in the Americas Mills reporting segment.

During fiscal 2012, the Company announced its decision to exit CMC Sisak, d.o.o. ("CMCS") by closure of the facility and sale of the assets. The Company determined that the decision to exit this business met the definition of a discontinued operation and has been presented as such for all periods presented. The results for fiscal 2012 consist of severance cost of $18.0 million associated with closing the facility and a pre-tax gain of $13.8 million for the sale of all of the shares of the CMCS operation, excluding $3.9 million in assets which were sold in the first quarter of 2013 with no impact to the consolidated statements of operations.

Financial information for discontinued operations was as follows:

	Year Ended August 31,
(in thousands)	2014		2013		2012
Revenue	$	17,298	$	157,780	$	202,632
Earnings (loss) before income taxes	22,009		3,672		(11,906		)

Dispositions

During the first quarter of fiscal 2014, the Company sold all of the outstanding capital stock of Howell for $58.5 million, of which $3.2 million was held in escrow as of August 31, 2014. During the second quarter of fiscal 2014, the Company made a $3.0 million working capital adjustment, which is included in the Company's estimated pre-tax gain of $23.8 million. The result of this sale was included in discontinued operations in the consolidated statement of operations for the year ended August 31, 2014. The Company disposed of the remaining assets held for sale of $1.1 million during the fourth quarter of fiscal 2014 with an immaterial impact to the consolidated statement of operations.

During the first quarter of fiscal 2013, the Company completed the sale of its 11% ownership interest in Trinecke Zelezarny, a.s. ("Trinecke"), a Czech Republic joint-stock company, for $29.0 million resulting in a pre-tax gain of $26.1 million. The result of this sale was included in continuing operations in the consolidated statement of operations for the year ended August 31, 2013. The Trinecke investment was included in the International Marketing and Distribution reporting segment.

During fiscal 2012, the Company sold its rebar fabrication shop in Rosslau, Germany for $11.3 million, resulting in a loss of $3.8 million. The result of this sale was included in continuing operations in the consolidated statement of operations for the year ended August 31, 2012. Additionally during fiscal 2012, the Company completed the sale of two properties that were previously joist and deck locations. The results of these sales were included in discontinued operations in the consolidated statement of operations for the year ended August 31, 2012.