BUSINESS SEGMENTS

6 Months Ended

Feb. 28, 2015

Segment Reporting [Abstract]

Business segments

NOTE 14. BUSINESS SEGMENTS

The Company's operating segments engage in business activities from which they may earn revenues and incur expenses and for which discrete financial information is available. Operating results for the operating segments are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segments and to assess performance. The Company's chief operating decision maker is identified as the Chief Executive Officer. Operating segments are aggregated for reporting purposes when the operating segments are identified as similar in accordance with the basic principles and aggregation criteria in the accounting standards. The Company's reporting segments are based primarily on product lines and secondarily on geographic area. The reporting segments have different lines of management responsibility as each business requires different marketing strategies and management expertise.

The Company structures its business into the following five reporting 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 reinforcement bar ("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 marketing and distribution divisions headquartered in the U.S. 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 debt.

The financial information presented for the Americas Mills segment excludes Howell. Additionally, the financial information presented for the International Marketing and Distribution segment excludes the steel distribution business in Australia. These operations have been classified as discontinued operations in the consolidated statements of earnings. See Note 6, Businesses Held for Sale, Discontinued Operations and Dispositions, for more information.

The Company uses adjusted operating profit (loss), a non-GAAP financial measure, to compare and to evaluate the financial performance of its segments. Adjusted operating profit (loss) is the sum of the Company's earnings from continuing operations before income taxes, interest expense and discounts on sales of accounts receivable. Intersegment sales are generally priced at prevailing market prices. Certain corporate administrative expenses are allocated to the 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, of the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2014.

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

	Three Months Ended February 28, 2015
	Americas								International
(in thousands)	Recycling			Mills		Fabrication			Mill		Marketing and Distribution		Corporate			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	227,499		$	247,727	$	341,679		$	138,449	$	433,046	$	2,717		$	—		$	1,391,117
Intersegment sales	31,580			181,118		2,731			—		32,192		—			(247,621		)	—
Net sales	259,079			428,845		344,410			138,449		465,238		2,717			(247,621		)	1,391,117
Adjusted operating profit (loss)	(172		)	98,489		11,773			819		15,678		(16,400		)	2,037			112,224
	Three Months Ended February 28, 2014
	Americas								International
(in thousands)	Recycling			Mills		Fabrication			Mill		Marketing and Distribution		Corporate			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	293,146		$	277,562	$	322,572		$	181,245	$	517,770	$	5,166		$	—		$	1,597,461
Intersegment sales	49,121			179,287		3,318			117		2,401		—			(234,244		)	—
Net sales	342,267			456,849		325,890			181,362		520,171		5,166			(234,244		)	1,597,461
Adjusted operating profit (loss)	(863		)	44,062		(5,330		)	8,331		4,487		(15,064		)	1,422			37,045
	Six Months Ended February 28, 2015
	Americas								International
(in thousands)	Recycling			Mills		Fabrication			Mill		Marketing and Distribution		Corporate			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	497,301		$	551,586	$	749,916		$	316,078	$	952,677	$	3,549		$	—		$	3,071,107
Intersegment sales	77,837			402,110		6,982			—		50,367		—			(537,296		)	—
Net sales	575,138			953,696		756,898			316,078		1,003,044		3,549			(537,296		)	3,071,107
Adjusted operating profit (loss)	(1,315		)	173,871		8,764			5,042		33,930		(36,011		)	1,232			185,513
Total assets at February 28, 2015*	284,790			715,306		667,648			407,271		1,052,922		939,847			(570,006		)	3,497,778
	Six Months Ended February 28, 2014
	Americas								International
(in thousands)	Recycling			Mills		Fabrication			Mill		Marketing and Distribution		Corporate			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	586,622		$	569,135	$	676,564		$	409,737	$	961,127	$	11,351		$	—		$	3,214,536
Intersegment sales	93,848			368,865		7,544			775		4,385		—			(475,417		)	—
Net sales	680,470			938,000		684,108			410,512		965,512		11,351			(475,417		)	3,214,536
Adjusted operating profit (loss)	(24		)	109,876		(3,113		)	23,600		6,529		(33,113		)	2,018			105,773
Total assets at August 31, 2014*	296,564			647,437		691,765			466,449		949,016		1,100,995			(470,716		)	3,681,510

* Excludes total assets from discontinued operations of $91.7 million at February 28, 2015 and $7.0 million at August 31, 2014.

Reconciliations of earnings from continuing operations to adjusted operating profit are provided below:

	Three Months Ended February 28,				Six Months Ended February 28,
(in thousands)	2015		2014		2015		2014
Earnings from continuing operations	$	61,719	$	13,255	$	100,053	$	46,955
Income taxes	30,841		3,866		46,288		18,957
Interest expense	19,252		18,977		38,309		38,385
Discounts on sales of accounts receivable	412		947		863		1,476
Adjusted operating profit	$	112,224	$	37,045	$	185,513	$	105,773