x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 75-0725338 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
PART I. | FINANCIAL INFORMATION |
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) | ||||||||
Three Months Ended November 30, | ||||||||
(in thousands, except share data) | 2015 | 2014 | ||||||
Net sales | $ | 1,154,859 | $ | 1,679,990 | ||||
Costs and expenses: | ||||||||
Cost of goods sold | 997,242 | 1,500,067 | ||||||
Selling, general and administrative expenses | 101,908 | 113,383 | ||||||
Interest expense | 18,304 | 19,057 | ||||||
1,117,454 | 1,632,507 | |||||||
Earnings from continuing operations before income taxes | 37,405 | 47,483 | ||||||
Income taxes | 11,772 | 13,218 | ||||||
Earnings from continuing operations | 25,633 | 34,265 | ||||||
Loss from discontinued operations before income tax benefit | (572 | ) | (2,102 | ) | ||||
Income tax benefit | (2 | ) | (21 | ) | ||||
Loss from discontinued operations | (570 | ) | (2,081 | ) | ||||
Net earnings | 25,063 | 32,184 | ||||||
Less net earnings attributable to noncontrolling interests | — | — | ||||||
Net earnings attributable to CMC | $ | 25,063 | $ | 32,184 | ||||
Basic earnings (loss) per share attributable to CMC: | ||||||||
Earnings from continuing operations | $ | 0.22 | $ | 0.29 | ||||
Loss from discontinued operations | — | (0.02 | ) | |||||
Net earnings | $ | 0.22 | $ | 0.27 | ||||
Diluted earnings (loss) per share attributable to CMC: | ||||||||
Earnings from continuing operations | $ | 0.22 | $ | 0.29 | ||||
Loss from discontinued operations | (0.01 | ) | (0.02 | ) | ||||
Net earnings | $ | 0.21 | $ | 0.27 | ||||
Cash dividends per share | $ | 0.12 | $ | 0.12 | ||||
Average basic shares outstanding | 116,022,241 | 117,818,170 | ||||||
Average diluted shares outstanding | 117,339,445 | 118,909,618 |
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||||||||
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Net earnings | $ | 25,063 | $ | 32,184 | ||||
Other comprehensive income (loss), net of income taxes: | ||||||||
Foreign currency translation adjustment and other | (21,995 | ) | (27,284 | ) | ||||
Net unrealized gain (loss) on derivatives: | ||||||||
Unrealized holding loss, net of income taxes of $(147) and $(284) | (9 | ) | (525 | ) | ||||
Reclassification for loss (gain) included in net earnings, net of income taxes of $(49) and $26 | (118 | ) | 39 | |||||
Net unrealized loss on derivatives, net of income taxes of $(196) and $(258) | (127 | ) | (486 | ) | ||||
Defined benefit obligation: | ||||||||
Net gain, net of income taxes of $0 and $4 | — | 8 | ||||||
Amortization of prior services, net of income taxes of $(1) and $1 | (1 | ) | (4 | ) | ||||
Defined benefit obligation, net of income taxes of $(1) and $5 | (1 | ) | 4 | |||||
Other comprehensive loss | (22,123 | ) | (27,766 | ) | ||||
Comprehensive income | $ | 2,940 | $ | 4,418 |
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
(in thousands, except share data) | November 30, 2015 | August 31, 2015 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 637,188 | $ | 485,323 | ||||
Accounts receivable (less allowance for doubtful accounts of $9,855 and $9,033) | 715,030 | 900,619 | ||||||
Inventories, net | 794,702 | 880,484 | ||||||
Current deferred tax assets | 4,370 | 3,310 | ||||||
Other current assets | 93,256 | 93,643 | ||||||
Assets of businesses held for sale | 14,892 | 17,008 | ||||||
Total current assets | 2,259,438 | 2,380,387 | ||||||
Property, plant and equipment: | ||||||||
Land | 74,971 | 75,086 | ||||||
Buildings and improvements | 487,830 | 489,500 | ||||||
Equipment | 1,650,671 | 1,670,755 | ||||||
Construction in process | 62,586 | 59,241 | ||||||
2,276,058 | 2,294,582 | |||||||
Less accumulated depreciation and amortization | (1,415,680 | ) | (1,410,932 | ) | ||||
860,378 | 883,650 | |||||||
Goodwill | 66,230 | 66,383 | ||||||
Other noncurrent assets | 116,661 | 115,168 | ||||||
Total assets | $ | 3,302,707 | $ | 3,445,588 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable-trade | $ | 222,228 | $ | 260,984 | ||||
Accounts payable-documentary letters of credit | 31,723 | 41,473 | ||||||
Accrued expenses and other payables | 246,238 | 290,677 | ||||||
Notes payable | — | 20,090 | ||||||
Current maturities of long-term debt | 10,451 | 10,110 | ||||||
Liabilities of businesses held for sale | 4,379 | 5,276 | ||||||
Total current liabilities | 515,019 | 628,610 | ||||||
Deferred income taxes | 51,373 | 55,803 | ||||||
Other long-term liabilities | 94,727 | 101,919 | ||||||
Long-term debt | 1,275,410 | 1,277,882 | ||||||
Total liabilities | 1,936,529 | 2,064,214 | ||||||
Commitments and contingencies (Note 13) | ||||||||
Stockholders' equity: | ||||||||
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 116,232,191 and 115,635,338 shares | 1,290 | 1,290 | ||||||
Additional paid-in capital | 348,695 | 365,863 | ||||||
Accumulated other comprehensive loss | (135,658 | ) | (113,535 | ) | ||||
Retained earnings | 1,384,653 | 1,373,568 | ||||||
Less treasury stock, 12,828,473 and 13,425,326 shares at cost | (232,951 | ) | (245,961 | ) | ||||
Stockholders' equity attributable to CMC | 1,366,029 | 1,381,225 | ||||||
Stockholders' equity attributable to noncontrolling interests | 149 | 149 | ||||||
Total stockholders' equity | 1,366,178 | 1,381,374 | ||||||
Total liabilities and stockholders' equity | $ | 3,302,707 | $ | 3,445,588 |
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Cash flows from (used by) operating activities: | ||||||||
Net earnings | $ | 25,063 | $ | 32,184 | ||||
Adjustments to reconcile net earnings to cash flows from (used by) operating activities: | ||||||||
Depreciation and amortization | 31,991 | 33,859 | ||||||
Provision for losses on receivables, net | 2,071 | (95 | ) | |||||
Stock-based compensation | 6,266 | 5,728 | ||||||
Amortization of interest rate swaps termination gain | (1,899 | ) | (1,899 | ) | ||||
Deferred income taxes | (14,058 | ) | (2,908 | ) | ||||
Tax benefit from stock plans | (25 | ) | (13 | ) | ||||
Net gain on sales of assets and other | (2,830 | ) | (467 | ) | ||||
Write-down of inventories | 2,657 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 166,661 | 100,486 | ||||||
Advance payments on sale of accounts receivable programs, net | 10,678 | (88,201 | ) | |||||
Inventories | 78,700 | (96,656 | ) | |||||
Other assets | (3,963 | ) | 3,804 | |||||
Accounts payable, accrued expenses and other payables | (76,449 | ) | (61,448 | ) | ||||
Other long-term liabilities | (5,290 | ) | (4,270 | ) | ||||
Net cash flows from (used by) operating activities | 219,573 | (79,896 | ) | |||||
Cash flows from (used by) investing activities: | ||||||||
Capital expenditures | (11,169 | ) | (22,450 | ) | ||||
Proceeds from the sale of property, plant and equipment and other | 2,813 | 882 | ||||||
Proceeds from the sale of subsidiaries | — | 2,845 | ||||||
Net cash flows used by investing activities | (8,356 | ) | (18,723 | ) | ||||
Cash flows from (used by) financing activities: | ||||||||
Increase (decrease) in documentary letters of credit, net | (9,752 | ) | 32,410 | |||||
Short-term borrowings, net change | (20,090 | ) | (11,758 | ) | ||||
Repayments on long-term debt | (2,909 | ) | (2,444 | ) | ||||
Stock issued under incentive and purchase plans, net of forfeitures | (7,628 | ) | (2,981 | ) | ||||
Treasury stock acquired | (4,555 | ) | (9,341 | ) | ||||
Cash dividends | (13,978 | ) | (14,150 | ) | ||||
Tax benefit from stock plans | 25 | 13 | ||||||
Decrease in restricted cash | 1 | — | ||||||
Net cash flows used by financing activities | (58,886 | ) | (8,251 | ) | ||||
Effect of exchange rate changes on cash | (466 | ) | (1,980 | ) | ||||
Increase (decrease) in cash and cash equivalents | 151,865 | (108,850 | ) | |||||
Cash and cash equivalents at beginning of year | 485,323 | 434,925 | ||||||
Cash and cash equivalents at end of period | $ | 637,188 | $ | 326,075 | ||||
Supplemental information: | ||||||||
Noncash activities: | ||||||||
Change in liabilities related to purchases of property, plant and equipment | $ | 7,562 | $ | 5,062 |
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) | |||||||||||||||||||||||||
Common Stock | Additional | Accumulated Other | Treasury Stock | Non- | |||||||||||||||||||||
(in thousands, except share data) | Number of Shares | Amount | Paid-In Capital | Comprehensive Income (Loss) | Retained Earnings | Number of Shares | Amount | controlling Interests | Total | ||||||||||||||||
Balance, September 1, 2014 | 129,060,664 | $ | 1,290 | $ | 359,338 | $ | (19,509 | ) | $ | 1,350,070 | (11,231,402 | ) | $ | (218,494 | ) | $ | 111 | $ | 1,472,806 | ||||||
Net earnings | 32,184 | 32,184 | |||||||||||||||||||||||
Other comprehensive loss | (27,766 | ) | (27,766 | ) | |||||||||||||||||||||
Cash dividends ($0.12 per share) | (14,150 | ) | (14,150 | ) | |||||||||||||||||||||
Treasury stock acquired | (560,493 | ) | (9,341 | ) | (9,341 | ) | |||||||||||||||||||
Issuance of stock under incentive and purchase plans, net of forfeitures | (11,362 | ) | 398,042 | 8,381 | (2,981 | ) | |||||||||||||||||||
Stock-based compensation | 8,490 | 8,490 | |||||||||||||||||||||||
Tax benefit from stock plans | 13 | 13 | |||||||||||||||||||||||
Balance, November 30, 2014 | 129,060,664 | $ | 1,290 | $ | 356,479 | $ | (47,275 | ) | $ | 1,368,104 | (11,393,853 | ) | $ | (219,454 | ) | $ | 111 | $ | 1,459,255 | ||||||
Common Stock | Additional | Accumulated Other | Treasury Stock | Non- | |||||||||||||||||||||
(in thousands, except share data) | Number of Shares | Amount | Paid-In Capital | Comprehensive Income (Loss) | Retained Earnings | Number of Shares | Amount | controlling Interests | Total | ||||||||||||||||
Balance, September 1, 2015 | 129,060,664 | $ | 1,290 | $ | 365,863 | $ | (113,535 | ) | $ | 1,373,568 | (13,425,326 | ) | $ | (245,961 | ) | $ | 149 | $ | 1,381,374 | ||||||
Net earnings | 25,063 | 25,063 | |||||||||||||||||||||||
Other comprehensive loss | (22,123 | ) | (22,123 | ) | |||||||||||||||||||||
Cash dividends ($0.12 per share) | (13,978 | ) | (13,978 | ) | |||||||||||||||||||||
Treasury stock acquired | (316,086 | ) | (4,555 | ) | (4,555 | ) | |||||||||||||||||||
Issuance of stock under incentive and purchase plans, net of forfeitures | (25,193 | ) | 912,939 | 17,565 | (7,628 | ) | |||||||||||||||||||
Stock-based compensation | 4,965 | 4,965 | |||||||||||||||||||||||
Tax benefit from stock plans | 25 | 25 | |||||||||||||||||||||||
Reclassification of share-based liability awards | 3,035 | 3,035 | |||||||||||||||||||||||
Balance, November 30, 2015 | 129,060,664 | $ | 1,290 | $ | 348,695 | $ | (135,658 | ) | $ | 1,384,653 | (12,828,473 | ) | $ | (232,951 | ) | $ | 149 | $ | 1,366,178 |
(in thousands, except share data) | As Originally Reported | Effect of Change | As Adjusted | |||||||
Condensed Consolidated Statement of Earnings for the three months ended November 30, 2014: | ||||||||||
Cost of goods sold | $ | 1,493,769 | $ | 6,298 | $ | 1,500,067 | ||||
Income taxes | 15,447 | (2,229 | ) | 13,218 | ||||||
Earnings from continuing operations | 38,334 | (4,069 | ) | 34,265 | ||||||
Net earnings attributable to CMC | 36,253 | (4,069 | ) | 32,184 | ||||||
Basic earnings per share attributable to CMC: | ||||||||||
Earnings from continuing operations | $ | 0.33 | $ | (0.04 | ) | $ | 0.29 | |||
Net earnings | 0.31 | (0.04 | ) | 0.27 | ||||||
Diluted earnings per share attributable to CMC: | ||||||||||
Earnings from continuing operations | $ | 0.32 | $ | (0.03 | ) | $ | 0.29 | |||
Net earnings | 0.30 | (0.03 | ) | 0.27 | ||||||
Condensed Consolidated Balance Sheet as of August 31, 2015: | ||||||||||
Inventories, net | $ | 781,371 | $ | 99,113 | $ | 880,484 | ||||
Current deferred tax assets | 29,137 | (25,827 | ) | 3,310 | ||||||
Accrued expenses and other payables | 279,415 | 11,262 | 290,677 | |||||||
Retained earnings | 1,311,544 | 62,024 | 1,373,568 | |||||||
Condensed Consolidated Statement of Cash Flows for the three months ended November 30, 2014: | ||||||||||
Net earnings | $ | 36,253 | $ | (4,069 | ) | $ | 32,184 | |||
Deferred income taxes | (835 | ) | (2,073 | ) | (2,908 | ) | ||||
Inventories working capital change | (102,954 | ) | 6,298 | (96,656 | ) | |||||
Accounts payable, accrued expenses and other payables working capital change | (61,292 | ) | (156 | ) | (61,448 | ) |
(in thousands, except share data) | As Computed Under LIFO | As Reported Under New Inventory Costing Methodologies | Effect of Change | |||||||
Earnings from continuing operations | $ | 38,096 | $ | 25,633 | $ | (12,463 | ) | |||
Net earnings attributable to CMC | 37,526 | 25,063 | (12,463 | ) | ||||||
Basic earnings per share attributable to CMC: | ||||||||||
Earnings from continuing operations | $ | 0.32 | $ | 0.22 | $ | (0.10 | ) | |||
Net earnings | 0.32 | 0.22 | (0.10 | ) | ||||||
Diluted earnings per share attributable to CMC: | ||||||||||
Earnings from continuing operations | $ | 0.32 | $ | 0.22 | $ | (0.10 | ) | |||
Net earnings | 0.32 | 0.21 | (0.11 | ) |
Three Months Ended November 30, 2015 | ||||||||||||||||
(in thousands) | Foreign Currency Translation | Unrealized Gain (Loss) on Derivatives | Defined Benefit Obligation | Total Accumulated Other Comprehensive Loss | ||||||||||||
Balance, August 31, 2015 | $ | (113,081 | ) | $ | 2,305 | $ | (2,759 | ) | $ | (113,535 | ) | |||||
Other comprehensive loss before reclassifications | (21,995 | ) | (9 | ) | — | (22,004 | ) | |||||||||
Amounts reclassified from AOCI | — | (118 | ) | (1 | ) | (119 | ) | |||||||||
Net other comprehensive loss | (21,995 | ) | (127 | ) | (1 | ) | (22,123 | ) | ||||||||
Balance, November 30, 2015 | $ | (135,076 | ) | $ | 2,178 | $ | (2,760 | ) | $ | (135,658 | ) |
Three Months Ended November 30, 2014 | ||||||||||||||||
(in thousands) | Foreign Currency Translation | Unrealized Gain (Loss) on Derivatives | Defined Benefit Obligation | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance, August 31, 2014 | $ | (19,891 | ) | $ | 3,014 | $ | (2,632 | ) | $ | (19,509 | ) | |||||
Other comprehensive income (loss) before reclassifications | (27,284 | ) | (525 | ) | 8 | (27,801 | ) | |||||||||
Amounts reclassified from AOCI | — | 39 | (4 | ) | 35 | |||||||||||
Net other comprehensive income (loss) | (27,284 | ) | (486 | ) | 4 | (27,766 | ) | |||||||||
Balance, November 30, 2014 | $ | (47,175 | ) | $ | 2,528 | $ | (2,628 | ) | $ | (47,275 | ) |
Three Months Ended November 30, | ||||||||||
Components of AOCI (in thousands) | Location | 2015 | 2014 | |||||||
Unrealized gain (loss) on derivatives: | ||||||||||
Commodity | Cost of goods sold | $ | (51 | ) | $ | (20 | ) | |||
Foreign exchange | Net sales | 57 | — | |||||||
Foreign exchange | Cost of goods sold | (8 | ) | (200 | ) | |||||
Foreign exchange | SG&A expenses | 35 | 21 | |||||||
Interest rate | Interest expense | 134 | 134 | |||||||
167 | (65 | ) | ||||||||
Income tax effect | Income taxes benefit (expense) | (49 | ) | 26 | ||||||
Net of income taxes | $ | 118 | $ | (39 | ) | |||||
Defined benefit obligation: | ||||||||||
Amortization of prior services | SG&A expenses | $ | 2 | $ | 3 | |||||
Income tax effect | Income taxes benefit (expense) | (1 | ) | 1 | ||||||
Net of income taxes | $ | 1 | $ | 4 |
Three Months Ended November 30, 2015 | ||||||||||||||||
(in thousands) | Total | U.S. | Australia* | Europe | ||||||||||||
Beginning balance | $ | 339,547 | $ | 269,778 | $ | 18,038 | $ | 51,731 | ||||||||
Transfers of accounts receivable | 588,419 | 486,523 | 46,074 | 55,822 | ||||||||||||
Collections | (699,104 | ) | (560,171 | ) | (48,826 | ) | (90,107 | ) | ||||||||
Ending balance | $ | 228,862 | $ | 196,130 | $ | 15,286 | $ | 17,446 |
Three Months Ended November 30, 2014 | ||||||||||||||||
(in thousands) | Total | U.S. | Australia* | Europe | ||||||||||||
Beginning balance | $ | 385,169 | $ | 329,797 | $ | 34,071 | $ | 21,301 | ||||||||
Transfers of accounts receivable | 1,128,244 | 949,163 | 90,729 | 88,352 | ||||||||||||
Collections | (1,041,573 | ) | (870,640 | ) | (102,424 | ) | (68,509 | ) | ||||||||
Ending balance | $ | 471,840 | $ | 408,320 | $ | 22,376 | $ | 41,144 |
Americas | International | ||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Consolidated | |||||||||||||||||||
Balance at August 31, 2015 | |||||||||||||||||||||||||
Goodwill | $ | 9,751 | $ | 4,970 | $ | 57,637 | $ | 2,517 | $ | 1,912 | $ | 76,787 | |||||||||||||
Accumulated impairment losses | (9,751 | ) | — | (493 | ) | (160 | ) | — | (10,404 | ) | |||||||||||||||
— | 4,970 | 57,144 | 2,357 | 1,912 | 66,383 | ||||||||||||||||||||
Foreign currency translation | — | — | — | (155 | ) | 2 | (153 | ) | |||||||||||||||||
Balance at November 30, 2015 | |||||||||||||||||||||||||
Goodwill | 9,751 | 4,970 | 57,637 | 2,351 | 1,914 | 76,623 | |||||||||||||||||||
Accumulated impairment losses | (9,751 | ) | — | (493 | ) | (149 | ) | — | (10,393 | ) | |||||||||||||||
$ | — | $ | 4,970 | $ | 57,144 | $ | 2,202 | $ | 1,914 | $ | 66,230 |
(in thousands) | November 30, 2015 | August 31, 2015 | ||||||
Assets: | ||||||||
Accounts receivable | $ | 3,737 | $ | 3,244 | ||||
Inventories, net | 9,928 | 12,514 | ||||||
Other current assets | — | 41 | ||||||
Property, plant and equipment, net of accumulated depreciation and amortization | 1,227 | 1,209 | ||||||
Assets of businesses held for sale | $ | 14,892 | $ | 17,008 | ||||
Liabilities: | ||||||||
Accounts payable-trade | $ | 1,909 | $ | 3,011 | ||||
Accrued expenses and other payables | 2,470 | 2,265 | ||||||
Liabilities of businesses held for sale | $ | 4,379 | $ | 5,276 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Net sales | $ | 11,554 | $ | 59,011 | ||||
Loss from discontinued operations before income tax benefit | (572 | ) | (2,102 | ) |
(in thousands) | Weighted Average Interest Rate as of November 30, 2015 | November 30, 2015 | August 31, 2015 | |||||||
$330 million notes at 4.875% due May 2023 | 4.875% | $ | 330,000 | $ | 330,000 | |||||
$500 million notes at 7.35% due August 2018 | 6.40% | 512,524 | 513,680 | |||||||
$400 million notes at 6.50% due July 2017 | 5.74% | 404,830 | 405,573 | |||||||
Other, including equipment notes | 38,507 | 38,739 | ||||||||
1,285,861 | 1,287,992 | |||||||||
Less current maturities | 10,451 | 10,110 | ||||||||
$ | 1,275,410 | $ | 1,277,882 |
Commodity | Long/Short | Total | ||||
Aluminum | Long | 5,963 | MT | |||
Copper | Long | 702 | MT | |||
Copper | Short | 4,150 | MT | |||
Zinc | Long | 15 | MT |
Three Months Ended November 30, | ||||||||||
Derivatives Not Designated as Hedging Instruments (in thousands) | Location | 2015 | 2014 | |||||||
Commodity | Cost of goods sold | $ | 2,172 | $ | 3,435 | |||||
Foreign exchange | Net sales | — | 2,436 | |||||||
Foreign exchange | Cost of goods sold | 50 | 1,871 | |||||||
Foreign exchange | SG&A expenses | 5,219 | 12,200 | |||||||
Gain before income taxes | $ | 7,441 | $ | 19,942 |
Derivatives Designated as Fair Value Hedging Instruments (in thousands) | Three Months Ended November 30, | |||||||||
Location | 2015 | 2014 | ||||||||
Foreign exchange | Net sales | $ | 144 | $ | (175 | ) | ||||
Foreign exchange | Cost of goods sold | (994 | ) | 1,154 | ||||||
Gain (loss) before income taxes | $ | (850 | ) | $ | 979 |
Hedged Items Designated as Fair Value Hedging Instruments (in thousands) | Three Months Ended November 30, | |||||||||
Location | 2015 | 2014 | ||||||||
Foreign exchange | Net sales | $ | (145 | ) | $ | 179 | ||||
Foreign exchange | Cost of goods sold | 994 | (1,154 | ) | ||||||
Gain (loss) before income taxes | $ | 849 | $ | (975 | ) |
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss) (in thousands) | Three Months Ended November 30, | |||||||
2015 | 2014 | |||||||
Commodity | $ | (477 | ) | $ | (68 | ) | ||
Foreign exchange | 468 | (457 | ) | |||||
Loss, net of income taxes | $ | (9 | ) | $ | (525 | ) |
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss) (in thousands) | Three Months Ended November 30, | |||||||||
Location | 2015 | 2014 | ||||||||
Commodity | Cost of goods sold | $ | (51 | ) | $ | (20 | ) | |||
Foreign exchange | Net sales | 57 | — | |||||||
Foreign exchange | Cost of goods sold | (8 | ) | (200 | ) | |||||
Foreign exchange | SG&A expenses | 35 | 21 | |||||||
Interest rate | Interest expense | 134 | 134 | |||||||
Gain (loss) before income taxes | $ | 167 | $ | (65 | ) | |||||
Income tax (expense) benefit | (49 | ) | 26 | |||||||
Gain (loss), net of income taxes | $ | 118 | $ | (39 | ) |
Derivative Assets (in thousands) | November 30, 2015 | August 31, 2015 | ||||||
Commodity — designated for hedge accounting | $ | — | $ | 19 | ||||
Commodity — not designated for hedge accounting | 1,826 | 846 | ||||||
Foreign exchange — designated for hedge accounting | 645 | 1,500 | ||||||
Foreign exchange — not designated for hedge accounting | 1,053 | 3,088 | ||||||
Derivative assets (other current assets)* | $ | 3,524 | $ | 5,453 |
Derivative Liabilities (in thousands) | November 30, 2015 | August 31, 2015 | ||||||
Commodity — designated for hedge accounting | $ | 739 | $ | 129 | ||||
Commodity — not designated for hedge accounting | 301 | 537 | ||||||
Foreign exchange — designated for hedge accounting | 520 | 874 | ||||||
Foreign exchange — not designated for hedge accounting | 475 | 1,263 | ||||||
Derivative liabilities (accrued expenses and other payables)* | $ | 2,035 | $ | 2,803 |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
(in thousands) | November 30, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Money market investments(1) | $ | 472,269 | $ | 472,269 | $ | — | $ | — | ||||||||
Commodity derivative assets(2) | 1,826 | 1,826 | — | — | ||||||||||||
Foreign exchange derivative assets(2) | 1,698 | — | 1,698 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative liabilities(2) | 1,040 | 301 | 739 | — | ||||||||||||
Foreign exchange derivative liabilities(2) | 995 | — | 995 | — |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
(in thousands) | August 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Money market investments(1) | $ | 271,840 | $ | 271,840 | $ | — | $ | — | ||||||||
Commodity derivative assets(2) | 865 | 846 | 19 | — | ||||||||||||
Foreign exchange derivative assets(2) | 4,588 | — | 4,588 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative liabilities(2) | 666 | 537 | 129 | — | ||||||||||||
Foreign exchange derivative liabilities(2) | 2,137 | — | 2,137 | — |
November 30, 2015 | August 31, 2015 | |||||||||||||||||
(in thousands) | Fair Value Hierarchy | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
$400 million notes at 6.50% due July 2017(1) | Level 2 | $ | 404,830 | $ | 415,474 | $ | 405,573 | $ | 419,400 | |||||||||
$500 million notes at 7.35% due August 2018(1) | Level 2 | 512,524 | 535,650 | 513,680 | 530,000 | |||||||||||||
$330 million notes at 4.875% due May 2023(1) | Level 2 | 330,000 | 290,400 | 330,000 | 300,630 |
Three Months Ended November 30, | ||||||||
(in thousands, except share data) | 2015 | 2014 | ||||||
Earnings from continuing operations attributable to CMC | $ | 25,633 | $ | 34,265 | ||||
Basic earnings per share: | ||||||||
Shares outstanding for basic earnings per share | 116,022,241 | 117,818,170 | ||||||
Basic earnings per share from continuing operations attributable to CMC | $ | 0.22 | $ | 0.29 | ||||
Diluted earnings per share: | ||||||||
Shares outstanding for basic earnings per share | 116,022,241 | 117,818,170 | ||||||
Effect of dilutive securities: | ||||||||
Stock-based incentive/purchase plans | 1,317,204 | 1,091,448 | ||||||
Shares outstanding for diluted earnings per share | 117,339,445 | 118,909,618 | ||||||
Diluted earnings per share from continuing operations attributable to CMC | $ | 0.22 | $ | 0.29 | ||||
Anti-dilutive shares not included above | 818,546 | 672,352 |
Three Months Ended November 30, 2015 | ||||||||||||||||||||||||||||||||
Americas | International | |||||||||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Corporate | Eliminations | Continuing Operations | ||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 154,836 | $ | 217,641 | $ | 379,481 | $ | 120,448 | $ | 280,062 | $ | 2,391 | $ | — | $ | 1,154,859 | ||||||||||||||||
Intersegment sales | 24,371 | 166,891 | 2,833 | — | 2,975 | — | (197,070 | ) | — | |||||||||||||||||||||||
Net sales | 179,207 | 384,532 | 382,314 | 120,448 | 283,037 | 2,391 | (197,070 | ) | 1,154,859 | |||||||||||||||||||||||
Adjusted operating profit (loss) | (6,548 | ) | 59,064 | 21,345 | 2,771 | (2,169 | ) | (18,072 | ) | (330 | ) | 56,061 | ||||||||||||||||||||
Total Assets as of November 30, 2015* | 220,683 | 690,262 | 667,239 | 338,995 | 710,651 | 1,203,498 | (550,372 | ) | 3,280,956 | |||||||||||||||||||||||
Three Months Ended November 30, 2014 | ||||||||||||||||||||||||||||||||
Americas | International | |||||||||||||||||||||||||||||||
(in thousands) | Recycling | Mills | Fabrication | Mill | Marketing and Distribution | Corporate | Eliminations | Continuing Operations | ||||||||||||||||||||||||
Net sales-unaffiliated customers | $ | 269,802 | $ | 303,859 | $ | 408,237 | $ | 177,629 | $ | 519,631 | $ | 832 | $ | — | $ | 1,679,990 | ||||||||||||||||
Intersegment sales | 46,257 | 220,992 | 4,251 | — | 18,175 | — | (289,675 | ) | — | |||||||||||||||||||||||
Net sales | 316,059 | 524,851 | 412,488 | 177,629 | 537,806 | 832 | (289,675 | ) | 1,679,990 | |||||||||||||||||||||||
Adjusted operating profit (loss) | (1,952 | ) | 72,648 | (4,181 | ) | 4,223 | 16,669 | (19,611 | ) | (805 | ) | 66,991 | ||||||||||||||||||||
Total assets as of August 31, 2015* | 261,676 | 738,669 | 713,860 | 403,706 | 798,914 | 1,049,815 | (552,577 | ) | 3,414,063 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Earnings from continuing operations | $ | 25,633 | $ | 34,265 | ||||
Income taxes | 11,772 | 13,218 | ||||||
Interest expense | 18,304 | 19,057 | ||||||
Discounts on sales of accounts receivable | 352 | 451 | ||||||
Adjusted operating profit | $ | 56,061 | $ | 66,991 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Net sales* | $ | 1,154,859 | $ | 1,679,990 | ||||
Adjusted operating profit*+ | 56,061 | 66,991 | ||||||
Earnings from continuing operations | 25,633 | 34,265 | ||||||
Adjusted EBITDA*+ | 87,700 | 100,123 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Earnings from continuing operations | $ | 25,633 | $ | 34,265 | ||||
Income taxes | 11,772 | 13,218 | ||||||
Interest expense | 18,304 | 19,057 | ||||||
Discounts on sales of accounts receivable | 352 | 451 | ||||||
Adjusted operating profit | $ | 56,061 | $ | 66,991 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Earnings from continuing operations | $ | 25,633 | $ | 34,265 | ||||
Interest expense | 18,304 | 19,057 | ||||||
Income taxes | 11,772 | 13,218 | ||||||
Depreciation and amortization | 31,991 | 33,583 | ||||||
Adjusted EBITDA | $ | 87,700 | $ | 100,123 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Net sales | $ | 179,207 | $ | 316,059 | ||||
Adjusted operating loss | (6,548 | ) | (1,952 | ) |
Average selling price (per short ton) | ||||||||
Average ferrous selling price | $ | 173 | $ | 307 | ||||
Average nonferrous selling price | 1,781 | 2,622 |
Short tons shipped (in thousands) | ||||||
Ferrous tons shipped | 389 | 493 | ||||
Nonferrous tons shipped | 52 | 59 | ||||
Total tons shipped | 441 | 552 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Net sales | $ | 384,532 | $ | 524,851 | ||||
Adjusted operating profit | 59,064 | 72,648 |
Average price (per short ton) | ||||||||
Finished goods selling price | $ | 567 | $ | 697 | ||||
Total sales | 556 | 683 | ||||||
Cost of ferrous scrap consumed | 198 | 336 | ||||||
Metal margin | 358 | 347 | ||||||
Ferrous scrap purchase price | 158 | 286 |
Short tons (in thousands) | ||||||
Tons melted | 613 | 683 | ||||
Tons rolled | 589 | 616 | ||||
Tons shipped | 640 | 723 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Net sales | $ | 382,314 | $ | 412,488 | ||||
Adjusted operating profit (loss) | 21,345 | (4,181 | ) |
Average selling price (excluding stock and buyout sales) (per short ton) | ||||||||
Rebar | $ | 860 | $ | 913 | ||||
Structural | 2,354 | 2,750 | ||||||
Post | 867 | 884 |
Short tons shipped (in thousands) | ||||||
Rebar | 249 | 265 | ||||
Structural | 7 | 12 | ||||
Post | 21 | 22 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Net sales | $ | 120,448 | $ | 177,629 | ||||
Adjusted operating profit | 2,771 | 4,223 |
Average price (per short ton) | ||||||||
Total sales | $ | 408 | $ | 546 | ||||
Cost of ferrous scrap consumed | 207 | 314 | ||||||
Metal margin | 201 | 232 | ||||||
Ferrous scrap purchase price | 166 | 266 |
Short tons (in thousands) | ||||||
Tons melted | 320 | 329 | ||||
Tons rolled | 300 | 256 | ||||
Tons shipped | 278 | 305 |
Three Months Ended November 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Net sales | $ | 283,037 | $ | 537,806 | ||||
Adjusted operating profit (loss) | (2,169 | ) | 16,669 |
(in thousands) | Total Facility | Availability | |||||
Cash and cash equivalents | $ | 637,188 | $ N/A | ||||
Revolving credit facility | 350,000 | 326,555 | |||||
U.S. receivables sale facility | 200,000 | 154,870 | |||||
International accounts receivable sales facilities | 78,396 | 39,977 | |||||
Bank credit facilities — uncommitted | 83,199 | 81,803 | |||||
Notes due from 2017 to 2023 | 1,230,000 | * | |||||
Equipment notes | 38,507 | * |
• | conditions, including recovery from the recent recession and construction activity or lack thereof, and their impact in a highly cyclical industry; |
• | rapid and significant changes in the price of metals; |
• | excess capacity in our industry, particularly in China, and product availability from competing steel minimills and other steel suppliers including import quantities and pricing; |
• | currency fluctuations; |
• | compliance with and changes in environmental laws and regulations, including increased regulation associated with climate change and greenhouse gas emissions; |
• | potential limitations in our or our customers' ability to access credit and non-compliance by our customers with our contracts; |
• | financial covenants and restrictions on the operation of our business contained in agreements governing our debt; |
• | global factors including political and military uncertainties; |
• | availability of electricity and natural gas for minimill operations; |
• | information technology interruptions and breaches in security data; |
• | ability to retain key executives; |
• | ability to make necessary capital expenditures; |
• | availability and pricing of raw materials over which we exert little influence, including scrap metal, energy, insurance and supply prices; |
• | unexpected equipment failures; |
• | competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; |
• | losses or limited potential gains due to hedging transactions; |
• | litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; |
• | risk of injury or death to employees, customers or other visitors to our operations; |
• | increased costs related to health care reform legislation; and |
• | those factors listed under Part I, Item 1A. "Risk Factors" included in our Annual Report filed on Form 10-K for the fiscal year ended August 31, 2015. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||||
September 1, 2015 - September 30, 2015 | — | — | — | $ | 58,193,939 | ||||||||
October 1, 2015 - October 31, 2015 | — | — | — | 58,193,939 | |||||||||
November 1, 2015 - November 30, 2015 | 316,086 | 14.41 | 316,086 | 53,639,032 | |||||||||
Total | 316,086 | 316,086 |
(1) | On October 27, 2014, the Company announced that CMC's Board of Directors had authorized a new share repurchase program under which the Company may repurchase up to $100.0 million of shares of CMC common stock. The share repurchase program does not require the Company to purchase any dollar amount or number of shares of CMC common stock and may be modified, suspended, extended or terminated by the Company at any time without prior notice. |
ITEM 6. | EXHIBITS |
3.1(a) | Restated Certificate of Incorporation dated August 29, 1946 (filed as Exhibit 3(i) to Commercial Metals Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2009 and incorporated herein by reference). |
3.1(b) | Certificate of Amendment of Restated Certificate of Incorporation dated February 1, 1994 (filed as Exhibit 3(i)(a) to Commercial Metals Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2009 and incorporated herein by reference). |
3.1(c) | Certificate of Amendment of Restated Certificate of Incorporation dated February 17, 1995 (filed as Exhibit 3(i)(b) to Commercial Metals Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2009 and incorporated herein by reference). |
3.1(d) | Certificate of Amendment of Restated Certificate of Incorporation dated January 30, 2004 (filed as Exhibit 3(i)(d) to Commercial Metals Company's Quarterly Report on Form 10-Q for the quarter ended February 29, 2004 and incorporated herein by reference). |
3.1(e) | Certificate of Amendment of Restated Certificate of Incorporation dated January 26, 2006 (filed as Exhibit 3(i) to Commercial Metals Company's Quarterly Report on Form 10-Q for the quarter ended February 28, 2006 and incorporated herein by reference). |
3.1(f) | Certificate of Designations, Preferences and Rights of Series A Preferred Stock (filed as Exhibit 2 to Commercial Metals Company's Form 8-A filed August 3, 1999 and incorporated herein by reference). |
3.2 | Third Amended and Restated Bylaws (filed as Exhibit 3(ii) to Commercial Metals Company's Annual Report on Form 10-K for the year ended August 31, 2015 and incorporated herein by reference). |
18 | Preferability letter from Deloitte & Touche LLP (filed herewith). |
31.1 | Certification of Joseph Alvarado, President and Chief Executive Officer of Commercial Metals Company, pursuant to Section 302 to the Sarbanes-Oxley Act of 2002 (filed herewith). |
31.2 | Certification of Barbara R. Smith, Senior Vice President and Chief Financial Officer of Commercial Metals Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
32.1 | Certification of Joseph Alvarado, President and Chief Executive Officer of Commercial Metals Company, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
32.2 | Certification of Barbara R. Smith, Senior Vice President and Chief Financial Officer of Commercial Metals Company, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
101 | The following financial information from Commercial Metals Company's Quarterly Report on Form 10-Q for the quarter ended November 30, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings (Unaudited), (ii) the Condensed Consolidated Statements of Comprehensive Income (Unaudited) (iii) the Condensed Consolidated Balance Sheets (Unaudited), (iv) the Condensed Consolidated Statements of Cash Flows (Unaudited), (v) the Condensed Consolidated Statements of Stockholders' Equity (Unaudited) and (vi) the Notes to Condensed Consolidated Financial Statements (Unaudited) (submitted electronically herewith). |
COMMERCIAL METALS COMPANY | |
January 8, 2016 | /s/ Barbara R. Smith |
Barbara R. Smith | |
Senior Vice President and Chief Financial Officer (Duly authorized officer and principal financial officer of the registrant) |
Exhibit No. | Description of Exhibit | |
3.1(a) | Restated Certificate of Incorporation dated August 29, 1946 (filed as Exhibit 3(i) to Commercial Metals Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2009 and incorporated herein by reference). | |
3.1(b) | Certificate of Amendment of Restated Certificate of Incorporation dated February 1, 1994 (filed as Exhibit 3(i)(a) to Commercial Metals Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2009 and incorporated herein by reference). | |
3.1(c) | Certificate of Amendment of Restated Certificate of Incorporation dated February 17, 1995 (filed as Exhibit 3(i)(b) to Commercial Metals Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2009 and incorporated herein by reference). | |
3.1(d) | Certificate of Amendment of Restated Certificate of Incorporation dated January 30, 2004 (filed as Exhibit 3(i)(d) to Commercial Metals Company's Quarterly Report on Form 10-Q for the quarter ended February 29, 2004 and incorporated herein by reference). | |
3.1(e) | Certificate of Amendment of Restated Certificate of Incorporation dated January 26, 2006 (filed as Exhibit 3(i) to Commercial Metals Company's Quarterly Report on Form 10-Q for the quarter ended February 28, 2006 and incorporated herein by reference). | |
3.1(f) | Certificate of Designations, Preferences and Rights of Series A Preferred Stock (filed as Exhibit 2 to Commercial Metals' Form 8-A filed August 3, 1999 and incorporated herein by reference). | |
3.2 | Third Amended and Restated Bylaws (filed as Exhibit 3(ii) to Commercial Metals Company's Annual Report on Form 10-K for the year ended August 31, 2015 and incorporated herein by reference). | |
18 | Preferability letter from Deloitte & Touche LLP (filed herewith) | |
31.1 | Certification of Joseph Alvarado, President and Chief Executive Officer of Commercial Metals Company, pursuant to Section 302 to the Sarbanes-Oxley Act of 2002 (filed herewith). | |
31.2 | Certification of Barbara R. Smith, Senior Vice President and Chief Financial Officer of Commercial Metals Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
32.1 | Certification of Joseph Alvarado, President and Chief Executive Officer of Commercial Metals Company, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
32.2 | Certification of Barbara R. Smith, Senior Vice President and Chief Financial Officer of Commercial Metals Company, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
101 | The following financial information from Commercial Metals Company's Quarterly Report on Form 10-Q for the quarter ended November 30, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings (Unaudited), (ii) the Condensed Consolidated Statements of Comprehensive Income (Unaudited) (iii) the Condensed Consolidated Balance Sheets (Unaudited), (iv) the Condensed Consolidated Statements of Cash Flows (Unaudited), (v) the Condensed Consolidated Statements of Stockholders' Equity (Unaudited) and (vi) the Notes to Condensed Consolidated Financial Statements (Unaudited) (submitted electronically herewith). |
/s/ Joseph Alvarado |
Joseph Alvarado President and Chief Executive Officer |
/s/ Barbara R. Smith |
Barbara R. Smith Senior Vice President and Chief Financial Officer |
/s/ Joseph Alvarado |
Joseph Alvarado |
President and Chief Executive Officer |
/s/ Barbara R. Smith |
Barbara R. Smith |
Senior Vice President and Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Jan. 05, 2016 |
|
Document And Entity Information [Abstract] | ||
Trading Symbol | CMC | |
Entity Registrant Name | COMMERCIAL METALS CO | |
Entity Central Index Key | 0000022444 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --08-31 | |
Entity Tax Identification Number | 750725338 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 116,241,485 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 25,063 | $ 32,184 |
Other comprehensive income (loss), net of income taxes: | ||
Foreign currency translation adjustment and other | (21,995) | (27,284) |
Net unrealized gain (loss) on derivatives: | ||
Unrealized holding loss, net of income taxes of $(147) and $(284) | (9) | (525) |
Reclassification for loss (gain) included in net earnings, net of income taxes of $(49) and $26 | (118) | 39 |
Net unrealized loss on derivatives, net of income taxes of $(196) and $(258) | (127) | (486) |
Defined benefit obligation: | ||
Net gain, net of income taxes of $0 and $4 | 0 | 8 |
Amortization of prior services, net of income taxes of $(1) and $1 | (1) | (4) |
Defined benefit obligation, net of income taxes of $(1) and $5 | (1) | 4 |
Other comprehensive loss | (22,123) | (27,766) |
Comprehensive income | $ 2,940 | $ 4,418 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Statement of Comprehensive Income [Abstract] | ||
Income taxes, unrealized holding gain (loss) on derivatives | $ (147) | $ (284) |
Income taxes, reclassification for loss (gain) on derivatives included in net earnings | (49) | 26 |
Income taxes, net unrealized loss on derivatives | (196) | (258) |
Income taxes, net gain of defined benefit obligation | 0 | 4 |
Income taxes, amortization of prior services of defined benefit obligation | (1) | 1 |
Income taxes, defined benefit obligation | $ (1) | $ 5 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9,855 | $ 9,033 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 129,060,664 | 129,060,664 |
Common stock, shares outstanding | 116,232,191 | 115,635,338 |
Treasury stock, shares | 12,828,473 | 13,425,326 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share (in USD per share) | $ 0.12 | $ 0.12 |
ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting policies | NOTE 1. ACCOUNTING POLICIES Accounting Principles The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K for the fiscal year ended August 31, 2015 filed by Commercial Metals Company ("CMC", and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission ("SEC") and include all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheets and the condensed consolidated statements of earnings, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended August 31, 2015. The results of operations for the three month period are not necessarily indicative of the results to be expected for the full year. Effective September 1, 2015, the Company elected to change its accounting method for valuing its U.S. inventories that used the last-in, first-out (“LIFO”) method to the weighted average cost method for the Americas Mills, Americas Recycling, and Americas Fabrication segments and to the specific identification method for its steel trading division headquartered in the U.S. in its International Marketing and Distribution segment. At September 1, 2015, 51% of the Company's total net inventories were valued using LIFO. The Company believes the changes are preferable because weighted average cost or specific identification (1) results in better matching of revenues and expenses and better reflects the current value of inventory in the Company’s consolidated balance sheet, (2) more closely aligns with the physical flow of these inventories, (3) are the methods the Company uses to monitor the financial results of these segments and this division for operational and financial planning, (4) eliminates the manual LIFO calculation and quarterly LIFO estimation process resulting in greater precision in determining quarterly cost of goods sold and inventory balances and reducing the administrative burden to report inventories because the information systems calculate inventory using the weighted average cost or the specific identification methods, and (5) improves comparability with the Company’s peers. Additionally, the Company believes that the change to using weighted average cost at its Americas segments increases consistency in inventory costing as its International Mill segment currently uses the weighted average cost method. The Company applied this change in accounting principle retrospectively to all prior periods presented herein. The cumulative effect of these accounting changes resulted in a $124.2 million increase in retained earnings as of September 1, 2014. Also effective September 1, 2015, the Company elected to change its accounting method for valuing its inventories in its International Marketing and Distribution segment, except for its steel trading division headquartered in the U.S., from the first-in, first-out (“FIFO”) method to the specific identification method. At September 1, 2015, 38% of the Company's total net inventories were valued using the FIFO method. The Company believes the change from FIFO to specific identification is preferable because it (1) results in better matching of revenues with expenses, (2) more closely aligns with the physical flow of these inventories, and (3) is the method the Company uses to monitor the financial results of the segment for operational and financial planning. Because this change in accounting principle was immaterial in all prior periods, it was not applied retrospectively. The change did not have a material impact on our condensed consolidated financial statements as of and for the quarter ended November 30, 2015. As a result of the retrospective application of the change in accounting principle from LIFO to weighted average cost or specific identification, certain financial statement line items in the Company’s condensed consolidated balance sheet as of August 31, 2015 and its condensed consolidated statement of earnings and condensed consolidated statement of cash flows for the three months ended November 30, 2014 were adjusted as presented below.
The effect of the change in accounting principle is net of the effect of lower of cost or market adjustments. The following table shows the effect of the change in accounting principle from LIFO to weighted average cost or specific identification on earnings from continuing operations, net earnings attributable to CMC and the related basic and diluted earnings per share attributable to CMC for the three months ended November 30, 2015:
Recent Accounting Pronouncements In the first quarter of fiscal 2016, the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) changing the requirements for reporting discontinued operations if the disposal of a component of an entity, or a group of components of an entity, represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. The guidance requires expanded disclosures for discontinued operations and also requires entities to disclose the pre-tax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. The guidance changed the Company’s practice of assessing discontinued operations and the presentation and disclosure in the Company’s condensed financial statements. The guidance was adopted on a prospective basis. In the first quarter of fiscal 2016, the Company adopted guidance issued by the FASB requiring entities to measure inventory, other than that measured using LIFO or the retail inventory method, at the lower of cost and net realizable value, which is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance changes the Company's practice of measuring inventory at the lower of cost or market, which included net realizable value, replacement cost and net realizable value plus normal profit margin. The guidance was adopted on a prospective basis. In November 2015, the FASB issued guidance requiring deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. The requirement that current deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016 with early adoption permitted. The Company plans to adopt this guidance prospectively in the second quarter of fiscal 2016. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In September 2015, the FASB issued guidance requiring the acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Additionally, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, must be calculated as if the accounting had been completed at the acquisition date. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015 with early adoption permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In April 2015, the FASB issued guidance clarifying the circumstances under which an entity would account for fees paid in a cloud computing arrangement as a license of internal-use software. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In April 2015, the FASB issued guidance requiring an entity to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015 with early adoption permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In February 2015, the FASB issued guidance modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities. This guidance also eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015 with early adoption permitted. Entities may elect to apply this guidance either on a retrospective or a modified retrospective basis. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In January 2015, the FASB issued guidance eliminating the concept of extraordinary items. Under this guidance an entity will no longer be allowed to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual in nature and occurs infrequently. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015 with early adoption permitted. The Company plans to adopt this guidance prospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern and to provide disclosures in certain circumstances. The new guidance was issued to reduce diversity in the timing and content of footnote disclosures. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In August 2014, the FASB issued guidance providing a measurement alternative to the existing fair value measurement guidance for reporting entities that consolidate a collateralized financing entity in which (1) the financial assets and financial liabilities are measured at fair value except for those incidental financial assets and financial liabilities with their carrying values that approximate fair values and (2) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. When the measurement alternative is elected, the financial assets and liabilities of a collateralized financing entity will be measured using the more observable of the fair value of the financial assets and the fair value of the financial liabilities. This guidance is effective for public business entities for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In June 2014, the FASB issued guidance requiring entities to account for a performance target as a performance condition if the target affects vesting and could be achieved after the requisite service period. The new guidance did not introduce additional disclosure requirements and was issued to resolve diversity in practice. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015. The Company currently accounts for such performance targets in a manner consistent with the new guidance and does not expect this guidance to have a material impact on its consolidated financial statements. In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. In August 2015, the FASB issued guidance deferring the effective date of this guidance to annual periods beginning after December 15, 2017, including interim reporting periods therein. Entities have the option to adopt this guidance either retrospectively or through a modified retrospective transition method. This new standard will supersede existing revenue guidance and affect the Company's revenue recognition process and the presentations or disclosures of the Company's consolidated financial statements and footnotes. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | NOTE 2. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables reflect the changes in accumulated other comprehensive income (loss) ("AOCI"), net of income taxes:
The significant items reclassified out of accumulated other comprehensive income (loss) and the corresponding line items in the condensed consolidated statements of earnings to which the items were reclassified were as follows:
Amounts in parentheses reduce earnings. |
SALES OF ACCOUNTS RECEIVABLE |
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Sales of accounts receivable | NOTE 3. SALES OF ACCOUNTS RECEIVABLE During the fourth quarter of fiscal 2014, the Company entered into a third amended $200.0 million U.S. sale of accounts receivable program which expires on August 15, 2017. Under the program, CMC contributes, and several of its subsidiaries sell without recourse, certain eligible trade accounts receivable to CMC Receivables, Inc. ("CMCRV"), a wholly owned subsidiary of CMC. CMCRV is structured to be a bankruptcy-remote entity and was formed for the sole purpose of buying and selling trade accounts receivable generated by the Company. CMCRV sells the trade accounts receivable in their entirety to three financial institutions. Under the amended U.S. sales of accounts receivable program, with the consent of both CMCRV and the program's administrative agent, the amount advanced by the financial institutions can be increased to a maximum of $300.0 million for all trade accounts receivable sold. The remaining portion of the purchase price of the trade accounts receivable takes the form of subordinated notes from the respective financial institutions. These notes will be satisfied from the ultimate collection of the trade accounts receivable after payment of certain fees and other costs. The Company accounts for sales of the trade accounts receivable as true sales, and the trade accounts receivable balances that are sold are removed from the condensed consolidated balance sheets. The cash advances received are reflected as cash provided by operating activities on the Company's condensed consolidated statements of cash flows. Additionally, the U.S. sale of accounts receivable program contains certain cross-default provisions whereby a termination event could occur if the Company defaulted under certain of its credit arrangements. The covenants contained in the receivables purchase agreement are consistent with the credit facility described in Note 7, Credit Arrangements. At November 30, 2015 and August 31, 2015, under its U.S. sale of accounts receivable program, the Company had sold $200.4 million and $274.3 million of trade accounts receivable, respectively, to the financial institutions. At November 30, 2015 and August 31, 2015, the Company had no advance payments outstanding on the sale of its trade accounts receivable. In addition to the U.S. sale of accounts receivable program described above, the Company's international subsidiaries in Europe and Australia sell trade accounts receivable to financial institutions without recourse. These arrangements constitute true sales, and once the trade accounts receivable are sold, they are no longer available to the Company's creditors in the event of bankruptcy. In the third quarter of fiscal 2015, the Company phased out its existing European program and entered into a two year renewable trade accounts receivable sales program with a different financial institution. The new agreement increased the facility limit from PLN 200.0 million to PLN 220.0 million. The European program allows the Company's European subsidiaries to obtain an advance of up to 90% of eligible trade accounts receivable sold under the terms of the arrangement. During the first quarter of fiscal 2014, the Company phased out its existing Australian program and entered into a one year renewable trade accounts receivable sales program with a different financial institution. During the first quarter of fiscal 2015, the Company entered into a first amendment to its Australian program, which extended the maturity date to October 2016. Under the new Australian program, trade accounts receivable balances are sold to a special purpose vehicle, which in turn sells 100% of the eligible trade accounts receivable of Commercial Metals Pty. Ltd., CMC Steel Distribution Pty. Ltd. and G.A.M. Steel Pty. Ltd. to the financial institution. In August 2015, the Company entered into a second amendment to its Australian program, which reduced the facility limit from A$75.0 million to A$40.0 million. The financial institution will fund up to the facility limit for all trade accounts receivable sold, and the remaining portion of the purchase price of the trade accounts receivable is in the form of a subordinated note from the financial institution. This note will be satisfied from the ultimate collection of the trade accounts receivable after payment of certain fees and other costs. The Company accounts for sales of the trade accounts receivable as true sales, and the trade accounts receivable balances that are sold are removed from the condensed consolidated balance sheets. The cash advances received are reflected as cash provided by operating activities on the Company's condensed consolidated statements of cash flows. At November 30, 2015 and August 31, 2015, under its European and Australian programs, the Company had sold $71.6 million and $97.9 million of trade accounts receivable, respectively, to third-party financial institutions and received advance payments of $38.4 million and $27.7 million, respectively. During the three months ended November 30, 2015 and 2014, cash proceeds from the U.S. and international sale of accounts receivable programs were $134.6 million and $118.9 million, respectively, and cash payments to the owners of accounts receivable were $123.9 million and $207.1 million, respectively. For a nominal servicing fee, the Company is responsible for servicing the trade accounts receivable for the U.S. and Australian programs. Discounts on U.S. and international sales of trade accounts receivable were $0.4 million and $0.5 million for the three months ended November 30, 2015 and November 30, 2014, respectively, and are included in selling, general and administrative expenses in the Company's condensed consolidated statements of earnings. As of November 30, 2015, the deferred purchase price on the Company's U.S., European and Commercial Metals Pty. Ltd. sale of accounts receivable programs was included in accounts receivable on the Company's condensed consolidated balance sheets. As of August 31, 2015, the deferred purchase price on the Company's U.S., European, Commercial Metals Pty. Ltd. and CMC Steel Distribution Pty. Ltd. sale of accounts receivable programs was included in accounts receivable on the Company's condensed consolidated balance sheets. As of November 30, 2015 and August 31, 2015, the deferred purchase price on the G.A.M. Steel Pty. Ltd. sale of accounts receivable programs was included in assets of businesses held for sale on the Company's condensed consolidated balance sheets. The following tables summarize the activity of the deferred purchase price receivables for the U.S. and international sale of accounts receivable programs:
* Includes the sales of accounts receivable activities related to discontinued operations and businesses held for sale (transfers of accounts receivable of $12.3 million and $60.5 million, and collections of $24.9 million and $63.6 million for the three months ended November 30, 2015 and November 30, 2014, respectively). |
INVENTORIES, NET |
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Inventory Disclosure [Abstract] | |
Inventories, net | NOTE 4. INVENTORIES, NET As of November 30, 2015, inventories are stated at the lower of cost or net realizable value. As of August 31, 2015, inventories are stated at the lower of cost or market. See Note 1, Accounting Policies, for further discussion of the adoption of the new accounting pronouncement. Effective September 1, 2015, the Company elected to change its accounting method for valuing all of its inventories that used the LIFO method to either the weighted average or specific identification methods. The Company applied this change in accounting principle retrospectively to all prior periods presented. See Note 1, Accounting Policies, for further disclosures regarding this change in accounting principle. Additionally, effective September 1, 2015, the Company elected to change its accounting method for valuing all of its inventories in its International Marketing and Distribution segment, except for its steel trading division headquartered in the U.S., from the FIFO method to the specification identification method. Because this change in accounting principle was immaterial in all prior periods, it was not applied retrospectively. The change did not have a material impact on our condensed consolidated financial statements as of and for the quarter ended November 30, 2015. See Note 1, Accounting Policies, for further disclosures regarding this change in accounting principle. The Company determines the inventory cost for its International Mill segment using the weighted average cost method. At November 30, 2015, 52% of the Company's total net inventories were valued using the weighted average cost method and 48% of the Company's total net inventories were valued using the specification identification method. The majority of the Company's inventories are in the form of finished goods with minimal work in process. At November 30, 2015 and August 31, 2015, $47.6 million and $61.5 million, respectively, of the Company's inventories were in the form of raw materials. |
GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and other intangible assets | NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS The following table details the changes in the carrying amount of goodwill by reportable segment:
The total gross carrying amounts of the Company's intangible assets that are subject to amortization were $44.1 million and $47.8 million at November 30, 2015 and August 31, 2015, respectively, and are included in other noncurrent assets on the Company's condensed consolidated balance sheets. Excluding goodwill, there are no other significant intangible assets with indefinite lives. Intangible amortization expense from continuing operations was $1.1 million and $1.8 million for the three months ended November 30, 2015 and 2014, respectively. |
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Businesses held for sale, discontinued operations and dispositions | NOTE 6. BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS Businesses Held for Sale As of November 30, 2015, one component of the Australian steel distribution business remained for sale and continued to be classified as held for sale. The components of assets and liabilities of businesses held for sale on the Company's condensed consolidated balance sheet were as follows:
Discontinued Operations Despite focused efforts and substantial progress to stabilize and improve the results of the Australian distribution business, the Company determined that achieving acceptable financial returns would take additional time and investment. During the first quarter of fiscal 2015, the Company decided to exit and sell its steel distribution business in Australia and determined that this decision met the definition of a discontinued operation. As a result, this business has been presented as a discontinued operation for all periods presented. The expenses associated with exiting this business were not material for the three months ended November 30, 2015 and 2014. The Australian steel distribution business was previously an operating segment included in the International Marketing and Distribution reporting segment. Financial information for discontinued operations was as follows:
Dispositions There were no material dispositions during the first quarters of fiscal 2016 or 2015. During the first quarter of fiscal 2014, the Company sold all of the outstanding capital stock of our wholly owned copper tube manufacturing operation, Howell Metal Company ("Howell") for $58.5 million, $3.2 million of which was held in escrow as of both November 30, 2015 and August 31, 2015. |
CREDIT ARRANGEMENTS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit arrangements | NOTE 7. CREDIT ARRANGEMENTS On June 26, 2014, the Company entered into a fourth amended and restated credit agreement (the "Credit Agreement") for a revolving credit facility of $350.0 million with a maturity date of June 26, 2019. The maximum availability under the Credit Agreement can be increased to $500.0 million with bank approval. The Company's obligation under its Credit Agreement is secured by its U.S. inventory. The Credit Agreement's capacity includes $50.0 million for the issuance of stand-by letters of credit and was reduced by outstanding stand-by letters of credit which totaled $23.4 million at both November 30, 2015 and August 31, 2015. Under the Credit Agreement, the Company is required to comply with certain financial and non-financial covenants, including covenants to maintain: (i) an interest coverage ratio (consolidated EBITDA to consolidated interest expense, as each is defined in the Credit Agreement) of not less than 2.50 to 1.00 and (ii) a debt to capitalization ratio (consolidated funded debt to total capitalization, as each is defined in the Credit Agreement) that does not exceed 0.60 to 1.00. In addition, beginning on the date three months prior to each maturity date of the Company's 2017 Notes and 2018 Notes and each day thereafter that the 2017 Notes and the 2018 Notes are outstanding, the Company will be required to maintain liquidity of at least $150.0 million in excess of each of the outstanding aggregate principal amounts of the 2017 Notes and 2018 Notes. Loans under the Credit Agreement bear interest based on the Eurocurrency rate, a base rate or the LIBOR rate. At November 30, 2015, the Company's interest coverage ratio was 4.41 to 1.00, and the Company's debt to capitalization ratio was 0.48 to 1.00. The Company had no amounts drawn under its revolving credit facilities at November 30, 2015 and August 31, 2015. In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 15, 2023 (the "2023 Notes"). Interest on these notes is payable semiannually. In August 2008, the Company issued $500.0 million of 7.35% senior unsecured notes due in August 2018 (the "2018 Notes"). In anticipation of the offering, the Company entered into hedge transactions which reduced the Company's effective interest rate on these notes to 6.40% per annum. Interest on these notes is payable semiannually. In July 2007, the Company issued $400.0 million of 6.50% senior unsecured notes due in July 2017 (the "2017 Notes"). In anticipation of the offering, the Company entered into hedge transactions which reduced the Company's effective interest rate on these notes to 5.74% per annum. Interest on these notes is payable semiannually. At November 30, 2015, the Company was in compliance with all covenants contained in its debt agreements. During fiscal 2012, the Company terminated its existing interest rate swap transactions and received cash proceeds of approximately $52.7 million, net of customary finance charges. The resulting gain was deferred and is being amortized as a reduction to interest expense over the remaining term of the respective debt tranches. At November 30, 2015 and August 31, 2015, the unamortized amounts were $17.4 million and $19.2 million, respectively. Amortization of the deferred gain for each of the three months ended November 30, 2015 and 2014 was $1.9 million. The Company has uncommitted credit facilities available from U.S. and international banks. In general, these credit facilities are used to support trade letters of credit (including accounts payable settled under bankers' acceptances), foreign exchange transactions and short-term advances which are priced at market rates. Long-term debt, including the deferred gain from the termination of the interest rate swaps, was as follows:
Interest on these notes is payable semiannually. CMC Poland Sp.z.o.o. ("CMCP") has uncommitted credit facilities of $53.2 million with several banks with expiration dates ranging from January 2016 to November 2016. During the three months ended November 30, 2015, CMCP had no borrowings and no repayments under these credit facilities. During the three months ended November 30, 2014, CMCP had total borrowings of $19.0 million and total repayments of $19.0 million under these facilities. At November 30, 2015 and August 31, 2015, no amounts were outstanding under these credit facilities. The Company had no material amounts of interest capitalized in the cost of property, plant and equipment during the three months ended November 30, 2015 and 2014. Cash paid for interest during the three months ended November 30, 2015 and 2014 was $9.0 million and $9.5 million, respectively. |
DERIVATIVES AND RISK MANAGEMENT |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and risk management | NOTE 8. DERIVATIVES AND RISK MANAGEMENT The Company's global operations and product lines expose it to risks from fluctuations in metal commodity prices, foreign currency exchange rates, natural gas prices and interest rates. One objective of the Company's risk management program is to mitigate these risks using derivative instruments. The Company enters into (i) metal commodity futures and forward contracts to mitigate the risk of unanticipated changes in gross margin due to the volatility of the commodities' prices, (ii) foreign currency forward contracts that match the expected settlements for purchases and sales denominated in foreign currencies and (iii) natural gas forward contracts to mitigate the risk of unanticipated changes in operating cost due to the volatility of natural gas prices. When sales commitments to customers include a fixed price freight component, the Company occasionally enters into freight forward contracts to reduce the effects of the volatility of ocean freight rates. At November 30, 2015, the notional values of the Company's foreign currency contract commitments and its commodity contract commitments were $306.3 million and $33.5 million, respectively. At August 31, 2015, the notional values of the Company's foreign currency contract commitments and its commodity contract commitments were $390.8 million and $37.7 million, respectively. The following table provides information regarding the Company's commodity contract commitments as of November 30, 2015:
MT = Metric Ton The Company designates only those contracts which closely match the terms of the underlying transaction as hedges for accounting purposes. These hedges resulted in substantially no ineffectiveness in the Company's condensed consolidated statements of earnings, and there were no components excluded from the assessment of hedge effectiveness for the three months ended November 30, 2015 and 2014. Certain foreign currency and commodity contracts were not designated as hedges for accounting purposes, although management believes they are essential economic hedges. The following tables summarize activities related to the Company's derivative instruments and hedged items recognized in the condensed consolidated statements of earnings:
The Company's fair value hedges are designated for accounting purposes with the gains or losses on the hedged items offsetting the gains or losses on the related derivative transactions. Hedged items relate to firm commitments on commercial sales and purchases.
The Company enters into derivative agreements that include provisions to allow the set-off of certain amounts. Derivative instruments are presented on a gross basis on the Company's condensed consolidated balance sheets. The asset and liability balances in the tables below reflect the gross amounts of derivative instruments at November 30, 2015 and August 31, 2015. The fair value of the Company's derivative instruments on the condensed consolidated balance sheets was as follows:
_________________ * Derivative assets and liabilities do not include the hedged items designated as fair value hedges. As of November 30, 2015, all of the Company's derivative instruments designated to hedge exposure to the variability in future cash flows of the forecasted transactions will mature within twelve months. All of the instruments are highly liquid and were not entered into for trading purposes. |
FAIR VALUE |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | NOTE 9. FAIR VALUE The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities; Level 2 - Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly; and Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following tables summarize information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis:
_________________ (1) Money market investments are short-term in nature, and the value is determined by broker quoted prices in active markets. The investment portfolio mix can change each period based on the Company's assessment of investment options. (2) Derivative assets and liabilities classified as Level 1 are commodity futures contracts valued based on quoted market prices in the London Metal Exchange or Commodity Exchange, Inc. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Further discussion regarding the Company's use of derivative instruments and the classification of the assets and liabilities is included in Note 8, Derivatives and Risk Management. There were no material non-recurring fair value remeasurements during the three months ended November 30, 2015 and 2014, respectively. The carrying values of the Company's short-term items, including the deferred purchase price of accounts receivable, documentary letters of credit and notes payable, approximate fair value due to their short term nature. The carrying values and estimated fair values of the Company's financial assets and liabilities that are not required to be measured at fair value on the condensed consolidated balance sheets are as follows:
_________________ (1) The fair values of the 2017 Notes, 2018 Notes and 2023 Notes are estimated based on readily available market prices of these notes at November 30, 2015 and August 31, 2015, or similar notes with the same maturities, rating and interest rates. |
INCOME TAX |
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Nov. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income tax | NOTE 10. INCOME TAX The Company's effective income tax rate from continuing operations for the three months ended November 30, 2015 and 2014 was 31.5% and 27.8%, respectively. For the three months ended November 30, 2015 and 2014, the tax rate is lower than the statutory income tax rate of 35% primarily because the Company had income from operations in countries which have lower tax rates than the United States. In addition, the Company benefited under Section 199 of the Internal Revenue Code related to domestic production activity income during the three months ended November 30, 2015 and 2014. The Company's effective income tax rate from discontinued operations for the three months ended November 30, 2015 and 2014 was 0.4% and 1.0%, respectively. The Company's effective income tax rate from discontinued operations for the three months ended November 30, 2015 reflected the fact that earnings from discontinued operations before income taxes included a loss in Australia, a jurisdiction in which all tax losses created a deferred tax asset that was subject to a full valuation allowance, and thus no tax benefit. The Company made net payments of $4.7 million and $11.6 million for income taxes during the three months ended November 30, 2015 and 2014, respectively. As of both November 30, 2015 and August 31, 2015, the reserve for unrecognized income tax benefits related to the accounting for uncertainty in income taxes was $27.3 million, exclusive of interest and penalties. The Company's policy classifies interest recognized on an underpayment of income taxes and any statutory penalties recognized on a tax position as income tax expense, and the balances at the end of a reporting period are recorded as part of the current or noncurrent reserve for uncertain income tax positions. For the three months ended November 30, 2015 and 2014, before any income tax benefits, the Company recorded immaterial amounts of accrued interest and penalties on unrecognized income tax benefits. During the twelve months ending November 30, 2016, it is reasonably possible that the statute of limitations pertaining to positions taken by the Company in prior year income tax returns may lapse or that income tax audits in various taxing jurisdictions could be finalized. As a result, the total amount of unrecognized income tax benefits may decrease by approximately $17.8 million, which would reduce the provision for income taxes by $2.5 million. The Company files income tax returns in the United States and multiple foreign jurisdictions with varying statutes of limitations. In the normal course of business, CMC and its subsidiaries are subject to examination by various taxing authorities. The following is a summary of tax years subject to examination: U.S. Federal — 2009 and forward U.S. States — 2009 and forward Foreign — 2009 and forward The Company is currently under examination by the Internal Revenue Service and state revenue authorities from 2009 to 2011. Management believes the Company's recorded tax liabilities as of November 30, 2015 sufficiently reflect the anticipated outcome of these examinations. |
STOCK-BASED COMPENSATION PLANS |
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Nov. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation plans | NOTE 11. STOCK-BASED COMPENSATION PLANS The Company's stock-based compensation plans are described, and informational disclosures provided, in Note 15, Stock-Based Compensation Plans, to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2015. During the three months ended November 30, 2015 and 2014, restricted stock units and performance stock units totaling 1.5 million and 1.0 million, respectively, were granted at a weighted-average fair value of $16.02 and $16.08, respectively. During the three months ended November 30, 2015 and 2014, the Company granted 430,376 and 392,517 equivalent shares, respectively, of performance stock units and restricted stock units accounted for as liability awards. The fair value of these liability awards is remeasured each reporting period and is recognized ratably over the service period. As of November 30, 2015, the Company had 898,584 equivalent shares in liability awards outstanding. The Company expects 853,654 equivalent shares to vest. In general, the restricted stock units granted during fiscal 2016 and 2015 vest ratably over a period of three years. However, certain restricted stock units granted during fiscal 2015 either vest after a period of three years or vest after a specified service period. One-third of each such award vests on the second anniversary of the grant date, and the remaining two-thirds of each such award vest on the third anniversary of the grant date. In addition, certain restricted stock units granted during fiscal 2014 vest after a specified service period. For each such award, 25% vests on the second anniversary of the grant date; 25% vests on the third anniversary of the grant date and the remaining 50% vests on the fourth anniversary of the grant date. Subject to the achievement of performance targets established by the Compensation Committee of CMC's Board of Directors, the performance stock units granted during fiscal 2016 and fiscal 2015 will vest after a period of three years. Stock-based compensation expense for the three months ended November 30, 2015 and 2014 of $6.3 million and $5.7 million, respectively, was included in selling, general and administrative expenses on the Company's condensed consolidated statements of earnings. |
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE ATTRIBUTABLE TO CMC |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder's equity and earnings per share attributable to CMC | NOTE 12. STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE ATTRIBUTABLE TO CMC The calculations of basic and diluted earnings per share from continuing operations for the three months ended November 30, 2015 and 2014 were as follows:
CMC's restricted stock is included in the number of shares of common stock issued and outstanding, but is omitted from the basic earnings per share calculation until the shares vest. During the first quarter of fiscal 2015, CMC's Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $100.0 million of shares of CMC common stock. This new program replaced the existing program, which was terminated by CMC's Board of Directors in connection with the approval of the new program. During the three months ended November 30, 2015 and 2014, the Company purchased 316,086 and 560,493 shares of CMC common stock, respectively, at an average purchase price of $14.41 and $16.67 per share, respectively. The Company had remaining authorization to purchase $53.6 million of common stock at November 30, 2015 pursuant to its share repurchase program. |
COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Nov. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | NOTE 13. COMMITMENTS AND CONTINGENCIES In the ordinary course of conducting its business, the Company becomes involved in litigation, administrative proceedings and governmental investigations, including environmental matters. See Note 18, Commitments and Contingencies, to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2015. The Company has received notices from the U.S. Environmental Protection Agency ("EPA") or state agencies with similar responsibility that it is considered a potentially responsible party ("PRP") at several sites, none owned by the Company, and may be obligated under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ("CERCLA") or similar state statute to conduct remedial investigations, feasibility studies, remediation and/or removal of alleged releases of hazardous substances or to reimburse the EPA for such activities. The Company is involved in litigation or administrative proceedings with regard to several of these sites in which the Company is contesting, or at the appropriate time may contest, its liability at the sites. In addition, the Company has received information requests with regard to other sites which may be under consideration by the EPA as potential CERCLA sites. Some of these environmental matters or other proceedings may result in fines, penalties or judgments being assessed against the Company. At both November 30, 2015 and August 31, 2015, the Company had $1.0 million accrued for cleanup and remediation costs in connection with CERCLA sites. The estimation process is based on currently available information, which is in many cases preliminary and incomplete. Total environmental liabilities, including CERCLA sites, were $3.8 million and $4.3 million as of November 30, 2015 and August 31, 2015, respectively, of which $2.4 million was classified as other long-term liabilities as of both November 30, 2015 and August 31, 2015. Due to evolving remediation technology, changing regulations, possible third-party contributions, the inherent shortcomings of the estimation process and other factors, amounts accrued could vary significantly from amounts paid. Historically, the amounts the Company has ultimately paid for such remediation activities have not been material. Management believes that adequate provisions have been made in the Company's condensed consolidated financial statements for the potential impact of these contingencies, and that the outcomes of the suits and proceedings described above, and other miscellaneous litigation and proceedings now pending, will not have a material adverse effect on the business, results of operations or financial condition of the Company. |
BUSINESS SEGMENTS |
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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 International Marketing and Distribution segment excludes the steel distribution business in Australia. These operations have been classified as discontinued operations in the condensed 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, 2015. The following is a summary of certain financial information from continuing operations by reportable segment:
* Excludes total assets from discontinued operations of $21.7 million at November 30, 2015 and $31.5 million at August 31, 2015. Reconciliations of earnings from continuing operations to adjusted operating profit are provided below:
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ACCOUNTING POLICIES (Policies) |
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Nov. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting principles | Accounting Principles The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K for the fiscal year ended August 31, 2015 filed by Commercial Metals Company ("CMC", and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission ("SEC") and include all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheets and the condensed consolidated statements of earnings, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended August 31, 2015. The results of operations for the three month period are not necessarily indicative of the results to be expected for the full year. Effective September 1, 2015, the Company elected to change its accounting method for valuing its U.S. inventories that used the last-in, first-out (“LIFO”) method to the weighted average cost method for the Americas Mills, Americas Recycling, and Americas Fabrication segments and to the specific identification method for its steel trading division headquartered in the U.S. in its International Marketing and Distribution segment. At September 1, 2015, 51% of the Company's total net inventories were valued using LIFO. The Company believes the changes are preferable because weighted average cost or specific identification (1) results in better matching of revenues and expenses and better reflects the current value of inventory in the Company’s consolidated balance sheet, (2) more closely aligns with the physical flow of these inventories, (3) are the methods the Company uses to monitor the financial results of these segments and this division for operational and financial planning, (4) eliminates the manual LIFO calculation and quarterly LIFO estimation process resulting in greater precision in determining quarterly cost of goods sold and inventory balances and reducing the administrative burden to report inventories because the information systems calculate inventory using the weighted average cost or the specific identification methods, and (5) improves comparability with the Company’s peers. Additionally, the Company believes that the change to using weighted average cost at its Americas segments increases consistency in inventory costing as its International Mill segment currently uses the weighted average cost method. The Company applied this change in accounting principle retrospectively to all prior periods presented herein. The cumulative effect of these accounting changes resulted in a $124.2 million increase in retained earnings as of September 1, 2014. Also effective September 1, 2015, the Company elected to change its accounting method for valuing its inventories in its International Marketing and Distribution segment, except for its steel trading division headquartered in the U.S., from the first-in, first-out (“FIFO”) method to the specific identification method. At September 1, 2015, 38% of the Company's total net inventories were valued using the FIFO method. The Company believes the change from FIFO to specific identification is preferable because it (1) results in better matching of revenues with expenses, (2) more closely aligns with the physical flow of these inventories, and (3) is the method the Company uses to monitor the financial results of the segment for operational and financial planning. Because this change in accounting principle was immaterial in all prior periods, it was not applied retrospectively. The change did not have a material impact on our condensed consolidated financial statements as of and for the quarter ended November 30, 2015. |
Recent accounting pronouncements | Recent Accounting Pronouncements In the first quarter of fiscal 2016, the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) changing the requirements for reporting discontinued operations if the disposal of a component of an entity, or a group of components of an entity, represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. The guidance requires expanded disclosures for discontinued operations and also requires entities to disclose the pre-tax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. The guidance changed the Company’s practice of assessing discontinued operations and the presentation and disclosure in the Company’s condensed financial statements. The guidance was adopted on a prospective basis. In the first quarter of fiscal 2016, the Company adopted guidance issued by the FASB requiring entities to measure inventory, other than that measured using LIFO or the retail inventory method, at the lower of cost and net realizable value, which is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance changes the Company's practice of measuring inventory at the lower of cost or market, which included net realizable value, replacement cost and net realizable value plus normal profit margin. The guidance was adopted on a prospective basis. In November 2015, the FASB issued guidance requiring deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. The requirement that current deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016 with early adoption permitted. The Company plans to adopt this guidance prospectively in the second quarter of fiscal 2016. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In September 2015, the FASB issued guidance requiring the acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Additionally, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, must be calculated as if the accounting had been completed at the acquisition date. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015 with early adoption permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In April 2015, the FASB issued guidance clarifying the circumstances under which an entity would account for fees paid in a cloud computing arrangement as a license of internal-use software. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In April 2015, the FASB issued guidance requiring an entity to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015 with early adoption permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In February 2015, the FASB issued guidance modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities. This guidance also eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015 with early adoption permitted. Entities may elect to apply this guidance either on a retrospective or a modified retrospective basis. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In January 2015, the FASB issued guidance eliminating the concept of extraordinary items. Under this guidance an entity will no longer be allowed to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual in nature and occurs infrequently. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015 with early adoption permitted. The Company plans to adopt this guidance prospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In August 2014, the FASB issued guidance requiring management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern and to provide disclosures in certain circumstances. The new guidance was issued to reduce diversity in the timing and content of footnote disclosures. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2016. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In August 2014, the FASB issued guidance providing a measurement alternative to the existing fair value measurement guidance for reporting entities that consolidate a collateralized financing entity in which (1) the financial assets and financial liabilities are measured at fair value except for those incidental financial assets and financial liabilities with their carrying values that approximate fair values and (2) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. When the measurement alternative is elected, the financial assets and liabilities of a collateralized financing entity will be measured using the more observable of the fair value of the financial assets and the fair value of the financial liabilities. This guidance is effective for public business entities for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In June 2014, the FASB issued guidance requiring entities to account for a performance target as a performance condition if the target affects vesting and could be achieved after the requisite service period. The new guidance did not introduce additional disclosure requirements and was issued to resolve diversity in practice. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2015. The Company currently accounts for such performance targets in a manner consistent with the new guidance and does not expect this guidance to have a material impact on its consolidated financial statements. In May 2014, the FASB issued guidance requiring entities to recognize revenue from contracts with customers by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. In August 2015, the FASB issued guidance deferring the effective date of this guidance to annual periods beginning after December 15, 2017, including interim reporting periods therein. Entities have the option to adopt this guidance either retrospectively or through a modified retrospective transition method. This new standard will supersede existing revenue guidance and affect the Company's revenue recognition process and the presentations or disclosures of the Company's consolidated financial statements and footnotes. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. |
Fair value measurement | The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities; Level 2 - Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly; and Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Uncertain income tax positions | The Company's policy classifies interest recognized on an underpayment of income taxes and any statutory penalties recognized on a tax position as income tax expense, and the balances at the end of a reporting period are recorded as part of the current or noncurrent reserve for uncertain income tax positions. |
ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accounting Method | As a result of the retrospective application of the change in accounting principle from LIFO to weighted average cost or specific identification, certain financial statement line items in the Company’s condensed consolidated balance sheet as of August 31, 2015 and its condensed consolidated statement of earnings and condensed consolidated statement of cash flows for the three months ended November 30, 2014 were adjusted as presented below.
The effect of the change in accounting principle is net of the effect of lower of cost or market adjustments. The following table shows the effect of the change in accounting principle from LIFO to weighted average cost or specific identification on earnings from continuing operations, net earnings attributable to CMC and the related basic and diluted earnings per share attributable to CMC for the three months ended November 30, 2015:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The following tables reflect the changes in accumulated other comprehensive income (loss) ("AOCI"), net of income taxes:
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Schedule of reclassification out of accumulated other comprehensive income (loss) | The significant items reclassified out of accumulated other comprehensive income (loss) and the corresponding line items in the condensed consolidated statements of earnings to which the items were reclassified were as follows:
Amounts in parentheses reduce earnings. |
SALES OF ACCOUNTS RECEIVABLE (Tables) |
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity of the deferred purchase price receivables | The following tables summarize the activity of the deferred purchase price receivables for the U.S. and international sale of accounts receivable programs:
* Includes the sales of accounts receivable activities related to discontinued operations and businesses held for sale (transfers of accounts receivable of $12.3 million and $60.5 million, and collections of $24.9 million and $63.6 million for the three months ended November 30, 2015 and November 30, 2014, respectively). |
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill | The following table details the changes in the carrying amount of goodwill by reportable segment:
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BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of assets and liabilities of businesses held for sale | The components of assets and liabilities of businesses held for sale on the Company's condensed consolidated balance sheet were as follows:
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Financial information for discontinued operations | Financial information for discontinued operations was as follows:
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CREDIT ARRANGEMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, including the deferred gain from the termination of the interest rate swaps | Long-term debt, including the deferred gain from the termination of the interest rate swaps, was as follows:
Interest on these notes is payable semiannually. |
DERIVATIVES AND RISK MANAGEMENT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contract commitments | The following table provides information regarding the Company's commodity contract commitments as of November 30, 2015:
MT = Metric Ton |
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Derivatives not designated as hedging instruments | The following tables summarize activities related to the Company's derivative instruments and hedged items recognized in the condensed consolidated statements of earnings:
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Derivatives designated as fair value hedging instruments | Hedged items relate to firm commitments on commercial sales and purchases.
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Hedged items designated as fair value hedging instruments |
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Effective portion of derivatives designated as cash flow hedging instruments recognized In accumulated other comprehensive income (loss) |
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Effective portion of derivatives designated as cash flow hedging instruments reclassified from accumulated other comprehensive income (loss) |
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Derivative assets | The fair value of the Company's derivative instruments on the condensed consolidated balance sheets was as follows:
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Derivative liabilities |
_________________ * Derivative assets and liabilities do not include the hedged items designated as fair value hedges. |
FAIR VALUE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets and financial liabilities measured at fair value on a recurring basis | The following tables summarize information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis:
_________________ (1) Money market investments are short-term in nature, and the value is determined by broker quoted prices in active markets. The investment portfolio mix can change each period based on the Company's assessment of investment options. (2) Derivative assets and liabilities classified as Level 1 are commodity futures contracts valued based on quoted market prices in the London Metal Exchange or Commodity Exchange, Inc. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Further discussion regarding the Company's use of derivative instruments and the classification of the assets and liabilities is included in Note 8, Derivatives and Risk Management. |
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Financial assets and liabilities not required to be measured at fair value | The carrying values and estimated fair values of the Company's financial assets and liabilities that are not required to be measured at fair value on the condensed consolidated balance sheets are as follows:
_________________ (1) The fair values of the 2017 Notes, 2018 Notes and 2023 Notes are estimated based on readily available market prices of these notes at November 30, 2015 and August 31, 2015, or similar notes with the same maturities, rating and interest rates. |
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE ATTRIBUTABLE TO CMC (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculations of the basic and diluted earnings per share from continuing operations | The calculations of basic and diluted earnings per share from continuing operations for the three months ended November 30, 2015 and 2014 were as follows:
CMC's restricted stock is included in the number of shares of common stock issued and outstanding, but is omitted from the basic earnings per share calculation until the shares vest. |
BUSINESS SEGMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of certain financial information from continuing operations by reportable segment | The following is a summary of certain financial information from continuing operations by reportable segment:
* Excludes total assets from discontinued operations of $21.7 million at November 30, 2015 and $31.5 million at August 31, 2015. |
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Reconciliations of earnings from continuing operations to adjusted operating profit | Reconciliations of earnings from continuing operations to adjusted operating profit are provided below:
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ACCOUNTING POLICIES (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
Sep. 01, 2014 |
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Accounting Policies [Abstract] | |||
Percentage of LIFO Inventory | 52.00% | 51.00% | |
Increase to retained earnings resulting from cumulative effect of change in accounting method | $ 124.2 | ||
Percentage of FIFO Inventory | 48.00% | 38.00% |
INVENTORIES, NET (Narrative) (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
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Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 52.00% | 51.00% |
Percentage of Inventory Valued Using the Specific Identification Method | 48.00% | 38.00% |
Raw materials | $ 47.6 | $ 61.5 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
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Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||
Gross carrying amounts of the intangible assets subject to amortization | $ 44.1 | $ 47.8 | |
Amortization expense for intangible assets | $ 1.1 | $ 1.8 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Aug. 31, 2015 |
|
Goodwill [Line Items] | ||
Goodwill | $ 76,623 | $ 76,787 |
Accumulated impairment losses | (10,393) | (10,404) |
Goodwill [Roll Forward] | ||
Balance at August 31, 2015 | 66,383 | |
Foreign currency translation | (153) | |
Balance at November 30, 2015 | 66,230 | |
Americas Recycling | ||
Goodwill [Line Items] | ||
Goodwill | 9,751 | 9,751 |
Accumulated impairment losses | (9,751) | (9,751) |
Goodwill [Roll Forward] | ||
Balance at August 31, 2015 | 0 | |
Foreign currency translation | 0 | |
Balance at November 30, 2015 | 0 | |
Americas Mills | ||
Goodwill [Line Items] | ||
Goodwill | 4,970 | 4,970 |
Accumulated impairment losses | 0 | 0 |
Goodwill [Roll Forward] | ||
Balance at August 31, 2015 | 4,970 | |
Foreign currency translation | 0 | |
Balance at November 30, 2015 | 4,970 | |
Americas Fabrication | ||
Goodwill [Line Items] | ||
Goodwill | 57,637 | 57,637 |
Accumulated impairment losses | (493) | (493) |
Goodwill [Roll Forward] | ||
Balance at August 31, 2015 | 57,144 | |
Foreign currency translation | 0 | |
Balance at November 30, 2015 | 57,144 | |
International Mill | ||
Goodwill [Line Items] | ||
Goodwill | 2,351 | 2,517 |
Accumulated impairment losses | (149) | (160) |
Goodwill [Roll Forward] | ||
Balance at August 31, 2015 | 2,357 | |
Foreign currency translation | (155) | |
Balance at November 30, 2015 | 2,202 | |
International Marketing and Distribution | ||
Goodwill [Line Items] | ||
Goodwill | 1,914 | 1,912 |
Accumulated impairment losses | 0 | $ 0 |
Goodwill [Roll Forward] | ||
Balance at August 31, 2015 | 1,912 | |
Foreign currency translation | 2 | |
Balance at November 30, 2015 | $ 1,914 |
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS (Narrative) (Details) - Howell - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Nov. 30, 2013 |
Nov. 30, 2015 |
Aug. 31, 2015 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Business divestiture disposal price | $ 58.5 | ||
Escrow receivable | $ 3.2 | $ 3.2 |
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS (Components Of Assets And Liabilities Of Businesses Held For Sale) (Details) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Assets: | ||
Accounts receivable | $ 3,737 | $ 3,244 |
Inventories, net | 9,928 | 12,514 |
Other current assets | 0 | 41 |
Property, plant and equipment, net of accumulated depreciation and amortization | 1,227 | 1,209 |
Assets of businesses held for sale | 14,892 | 17,008 |
Liabilities: | ||
Accounts payable-trade | 1,909 | 3,011 |
Accrued expenses and other payables | 2,470 | 2,265 |
Liabilities of businesses held for sale | $ 4,379 | $ 5,276 |
BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS (Financial Information for Discontinued Operations) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations before income tax benefit | $ (572) | $ (2,102) |
Discontinued operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 11,554 | 59,011 |
Loss from discontinued operations before income tax benefit | $ (572) | $ (2,102) |
CREDIT ARRANGEMENTS (Narrative) (Details) |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 26, 2014
USD ($)
|
Nov. 30, 2015
USD ($)
|
Nov. 30, 2014
USD ($)
|
Aug. 31, 2015
USD ($)
|
Aug. 31, 2012
USD ($)
|
May. 31, 2013
USD ($)
|
Aug. 31, 2008
USD ($)
|
Jul. 31, 2007
USD ($)
|
|
Debt Instrument [Line Items] | ||||||||
Net proceeds from termination of interest rate swaps | $ 52,700,000 | |||||||
Unamortized deferred gain on termination of interest rate swaps | $ 17,400,000 | $ 19,200,000 | ||||||
Amortization of interest rate swaps termination gain | 1,899,000 | $ 1,899,000 | ||||||
Interest paid | 9,000,000 | 9,500,000 | ||||||
CMCP | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility current borrowing capacity | 53,200,000.0 | |||||||
Total borrowing | 0 | 19,000,000 | ||||||
Total payments | 0 | $ 19,000,000 | ||||||
Credit facility outstanding | 0 | |||||||
$330 million notes at 4.875% due May 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 330,000,000 | $ 330,000,000 | $ 330,000,000 | |||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | 4.875% | |||||
Debt instrument, maturity date | May 15, 2023 | May 15, 2023 | ||||||
$500 million notes at 7.35% due August 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||||
Debt instrument, interest rate, stated percentage | 7.35% | 7.35% | 7.35% | |||||
Debt instrument, maturity date | August 2018 | August 2018 | ||||||
Debt instrument, effective interest rate | 6.40% | |||||||
$400 million notes at 6.50% due July 2017 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% | 6.50% | |||||
Debt instrument, maturity date | July 2017 | July 2017 | ||||||
Debt instrument, effective interest rate | 5.74% | |||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility current borrowing capacity | $ 350,000,000 | |||||||
Revolving credit facility, maturity date | Jun. 26, 2019 | |||||||
Revolving credit facility, maximum borrowing capacity | $ 500,000,000 | |||||||
Minimum interest coverage ratio | 2.50 | |||||||
Maximum debt to capitalization ratio | 0.60 | |||||||
Minimum liquidity required | $ 150,000,000 | |||||||
Actual interest coverage ratio | 4.41 | |||||||
Actual debt to capitalization ratio | 0.48 | |||||||
Revolving credit facility, amount drawn | $ 0 | $ 0 | ||||||
Stand-by letters of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility current borrowing capacity | $ 50,000,000 | |||||||
Stand by letters of credit outstanding amount | $ 23,400,000 | $ 23,400,000 |
CREDIT ARRANGEMENTS (Long-term Debt, Including the Deferred Gain from the Termination of the Interest Rate Swaps) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Nov. 30, 2015 |
Aug. 31, 2015 |
May. 31, 2013 |
Aug. 31, 2008 |
Jul. 31, 2007 |
|
Debt Instrument [Line Items] | |||||
Total long-term debt including current maturities | $ 1,285,861,000 | $ 1,287,992,000 | |||
Current maturities of long-term debt | 10,451,000 | 10,110,000 | |||
Long-term debt | 1,275,410,000 | 1,277,882,000 | |||
$400 million notes at 6.50% due July 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% | 6.50% | ||
Debt instrument, maturity date | July 2017 | July 2017 | |||
Weighted average interest rate | 5.74% | ||||
Total long-term debt including current maturities | $ 404,830,000 | $ 405,573,000 | |||
$500 million notes at 7.35% due August 2018 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Debt instrument, interest rate, stated percentage | 7.35% | 7.35% | 7.35% | ||
Debt instrument, maturity date | August 2018 | August 2018 | |||
Weighted average interest rate | 6.40% | ||||
Total long-term debt including current maturities | $ 512,524,000 | $ 513,680,000 | |||
$330 million notes at 4.875% due May 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 330,000,000 | $ 330,000,000 | $ 330,000,000 | ||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | 4.875% | ||
Debt instrument, maturity date | May 15, 2023 | May 15, 2023 | |||
Weighted average interest rate | 4.875% | ||||
Total long-term debt including current maturities | $ 330,000,000 | $ 330,000,000 | |||
Other, including equipment notes | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt including current maturities | $ 38,507,000 | $ 38,739,000 |
DERIVATIVES AND RISK MANAGEMENT (Narrative) (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Foreign exchange | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 306.3 | $ 390.8 |
Commodity | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 33.5 | $ 37.7 |
DERIVATIVES AND RISK MANAGEMENT (Commodity Contract Commitments) (Details) |
3 Months Ended |
---|---|
Nov. 30, 2015
t
| |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 5,963 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 702 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract commitments | 4,150 |
Zinc | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 15 |
DERIVATIVES AND RISK MANAGEMENT (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for derivatives not designated as hedges | $ 7,441 | $ 19,942 |
Commodity | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for derivatives not designated as hedges | 2,172 | 3,435 |
Foreign exchange | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for derivatives not designated as hedges | 50 | 1,871 |
Foreign exchange | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for derivatives not designated as hedges | 0 | 2,436 |
Foreign exchange | SG&A expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for derivatives not designated as hedges | $ 5,219 | $ 12,200 |
DERIVATIVES AND RISK MANAGEMENT (Derivatives Designated as Fair Value Hedging Instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for fair value hedges | $ (850) | $ 979 |
Foreign exchange | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for fair value hedges | 144 | (175) |
Foreign exchange | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for fair value hedges | $ (994) | $ 1,154 |
DERIVATIVES AND RISK MANAGEMENT (Hedged Items Designated as Fair Value Hedging Instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for hedged items of fair value hedges | $ 849 | $ (975) |
Foreign exchange | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for hedged items of fair value hedges | (145) | 179 |
Foreign exchange | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes for hedged items of fair value hedges | $ 994 | $ (1,154) |
DERIVATIVES AND RISK MANAGEMENT (Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss), net of income taxes, for cash flow hedges recognized in AOCI | $ (9) | $ (525) |
Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss), net of income taxes, for cash flow hedges recognized in AOCI | (477) | (68) |
Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss), net of income taxes, for cash flow hedges recognized in AOCI | $ 468 | $ (457) |
DERIVATIVES AND RISK MANAGEMENT (Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes | $ 167 | $ (65) |
Income tax (expense) benefit | (49) | 26 |
Gain (loss), net of income taxes | 118 | (39) |
Commodity | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes | (51) | (20) |
Foreign exchange | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes | (8) | (200) |
Foreign exchange | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes | 57 | 0 |
Foreign exchange | SG&A expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes | 35 | 21 |
Interest rate | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) before income taxes | $ 134 | $ 134 |
DERIVATIVES AND RISK MANAGEMENT (Derivative Assets) (Details) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Aug. 31, 2015 |
||
---|---|---|---|---|
Derivatives, Fair Value [Line Items] | ||||
Derivative assets (other current assets) | [1] | $ 3,524 | $ 5,453 | |
Commodity | Designated | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets (other current assets) | 0 | 19 | ||
Commodity | Not designated | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets (other current assets) | 1,826 | 846 | ||
Foreign exchange | Designated | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets (other current assets) | 645 | 1,500 | ||
Foreign exchange | Not designated | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets (other current assets) | $ 1,053 | $ 3,088 | ||
|
DERIVATIVES AND RISK MANAGEMENT (Derivative Liabilities) (Details) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Aug. 31, 2015 |
||
---|---|---|---|---|
Derivatives, Fair Value [Line Items] | ||||
Derivative liabilities (accrued expenses and other payables) | [1] | $ 2,035 | $ 2,803 | |
Commodity | Designated | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liabilities (accrued expenses and other payables) | 739 | 129 | ||
Commodity | Not designated | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liabilities (accrued expenses and other payables) | 301 | 537 | ||
Foreign exchange | Designated | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liabilities (accrued expenses and other payables) | 520 | 874 | ||
Foreign exchange | Not designated | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liabilities (accrued expenses and other payables) | $ 475 | $ 1,263 | ||
|
FAIR VALUE (Narrative) (Details) |
3 Months Ended |
---|---|
Nov. 30, 2015
levels
| |
Fair Value Disclosures [Abstract] | |
Number of fair value hierarchy | 3 |
FAIR VALUE (Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands |
Nov. 30, 2015 |
Aug. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Money market investments | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Money market investments | [1] | $ 472,269 | $ 271,840 | ||||
Commodity | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative assets | [2] | 1,826 | 865 | ||||
Derivative liabilities | [2] | 1,040 | 666 | ||||
Foreign exchange | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative assets | [2] | 1,698 | 4,588 | ||||
Derivative liabilities | [2] | 995 | 2,137 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market investments | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Money market investments | [1] | 472,269 | 271,840 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative assets | [2] | 1,826 | 846 | ||||
Derivative liabilities | [2] | 301 | 537 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative assets | [2] | 0 | 0 | ||||
Derivative liabilities | [2] | 0 | 0 | ||||
Significant Other Observable Inputs (Level 2) | Money market investments | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Money market investments | [1] | 0 | 0 | ||||
Significant Other Observable Inputs (Level 2) | Commodity | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative assets | [2] | 0 | 19 | ||||
Derivative liabilities | [2] | 739 | 129 | ||||
Significant Other Observable Inputs (Level 2) | Foreign exchange | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative assets | [2] | 1,698 | 4,588 | ||||
Derivative liabilities | [2] | 995 | 2,137 | ||||
Significant Unobservable Inputs (Level 3) | Money market investments | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Money market investments | [1] | 0 | 0 | ||||
Significant Unobservable Inputs (Level 3) | Commodity | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative assets | [2] | 0 | 0 | ||||
Derivative liabilities | [2] | 0 | 0 | ||||
Significant Unobservable Inputs (Level 3) | Foreign exchange | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative assets | [2] | 0 | 0 | ||||
Derivative liabilities | [2] | $ 0 | $ 0 | ||||
|
FAIR VALUE (Financial Assets and Liabilities Not Required to Be Measured at Fair Value) (Details) - USD ($) $ in Thousands |
Nov. 30, 2015 |
Aug. 31, 2015 |
|||
---|---|---|---|---|---|
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | $ 1,285,861 | $ 1,287,992 | |||
$400 million notes at 6.50% due July 2017 | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | 404,830 | 405,573 | |||
$400 million notes at 6.50% due July 2017 | Level 2 | Carrying Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | 404,830 | 405,573 | |||
$400 million notes at 6.50% due July 2017 | Level 2 | Fair Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | [1] | 415,474 | 419,400 | ||
$500 million notes at 7.35% due August 2018 | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | 512,524 | 513,680 | |||
$500 million notes at 7.35% due August 2018 | Level 2 | Carrying Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | 513,680 | ||||
$500 million notes at 7.35% due August 2018 | Level 2 | Fair Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | [1] | 535,650 | 530,000 | ||
$330 million notes at 4.875% due May 2023 | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | 330,000 | 330,000 | |||
$330 million notes at 4.875% due May 2023 | Level 2 | Carrying Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | 330,000 | 330,000 | |||
$330 million notes at 4.875% due May 2023 | Level 2 | Fair Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Financial liabilities | [1] | $ 290,400 | $ 300,630 | ||
|
INCOME TAX (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Effective income tax rate from continuing operations | 31.50% | 27.80% | |
Statutory income tax rate | 35.00% | 35.00% | |
Effective income tax rate from discontinued operations | 0.40% | 1.00% | |
Net income tax payments | $ 4.7 | $ 11.6 | |
Unrecognized income tax benefits | 27.3 | $ 27.3 | |
Possible unrecognized income tax benefits decrease during the next twelve months | 17.8 | ||
Unrecognized income tax benefits that would reduce provisions for income taxes | $ 2.5 |
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 6.3 | $ 5.7 | |
Restricted stock units and performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 1,500,000 | 1,000,000 | |
Weighted average grant-date fair value | $ 16.02 | $ 16.08 | |
Liability awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 430,376 | 392,517 | |
Equivalent shares outstanding | 898,584 | ||
Equivalent shares expected to vest | 853,654 | ||
Fiscal 2016 | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period in years | 3 years | ||
Fiscal 2015 | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period in years | 3 years | ||
Fiscal 2015 | Certain restricted stock units | Vesting on second anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Fiscal 2015 | Certain restricted stock units | Vesting on third anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 67.00% | ||
Fiscal 2015 | Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period in years | 3 years | 3 years | |
Fiscal 2014 | Certain restricted stock units | Vesting on second anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Fiscal 2014 | Certain restricted stock units | Vesting on third anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Fiscal 2014 | Certain restricted stock units | Vesting on fourth anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% |
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE ATTRIBUTABLE TO CMC (Narrative) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Earnings Per Share [Abstract] | ||
Stock repurchase program, authorized amount | $ 100,000,000.0 | |
Stock repurchase program, shares purchased (shares) | 316,086 | 560,493 |
Stock repurchase program, average purchase price per share (in USD per share) | $ 14.41 | $ 16.67 |
Stock repurchase program, remaining authorized repurchase amount | $ 53,600,000 |
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE ATTRIBUTABLE TO CMC (Calculations of the Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Earnings Per Share [Abstract] | ||
Earnings from continuing operations attributable to CMC | $ 25,633 | $ 34,265 |
Basic earnings per share: | ||
Shares outstanding for basic earnings per share (shares) | 116,022,241 | 117,818,170 |
Basic earnings per share from continuing operations attributable to CMC: (in USD per share) | $ 0.22 | $ 0.29 |
Diluted earnings per share: | ||
Shares outstanding for basic earnings per share (shares) | 116,022,241 | 117,818,170 |
Effect of dilutive securities: | ||
Stock-based incentive/purchase plans (shares) | 1,317,204 | 1,091,448 |
Shares outstanding for diluted earnings per share (shares) | 117,339,445 | 118,909,618 |
Diluted earnings per share from continuing operations attributable to CMC: (in USD per share) | $ 0.22 | $ 0.29 |
Anti-dilutive shares not included above (shares) | 818,546 | 672,352 |
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Loss Contingencies [Line Items] | ||
Total environmental liabilities | $ 3.8 | $ 4.3 |
Long-term environmental liabilities | 2.4 | 2.4 |
CERCLA sites | ||
Loss Contingencies [Line Items] | ||
Total environmental liabilities | $ 1.0 | $ 1.0 |
BUSINESS SEGMENTS (Narrative) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015
USD ($)
segments
|
Aug. 31, 2015
USD ($)
|
|
Number of operating segments | segments | 5 | |
Discontinued operations | ||
Total assets | $ | $ 21.7 | $ 31.5 |
BUSINESS SEGMENTS (Summary of Certain Financial Information from Continuing Operations by Reportable Segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,154,859 | $ 1,679,990 | |
Adjusted operating profit (loss) | 56,061 | 66,991 | |
Total assets | 3,302,707 | $ 3,445,588 | |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,154,859 | 1,679,990 | |
Adjusted operating profit (loss) | 56,061 | 66,991 | |
Total assets | 3,280,956 | 3,414,063 | |
Americas Recycling | |||
Segment Reporting Information [Line Items] | |||
Net sales | 154,836 | 269,802 | |
Adjusted operating profit (loss) | (6,548) | (1,952) | |
Total assets | 220,683 | 261,676 | |
Americas Mills | |||
Segment Reporting Information [Line Items] | |||
Net sales | 217,641 | 303,859 | |
Adjusted operating profit (loss) | 59,064 | 72,648 | |
Total assets | 690,262 | 738,669 | |
Americas Fabrication | |||
Segment Reporting Information [Line Items] | |||
Net sales | 379,481 | 408,237 | |
Adjusted operating profit (loss) | 21,345 | (4,181) | |
Total assets | 667,239 | 713,860 | |
International Mill | |||
Segment Reporting Information [Line Items] | |||
Net sales | 120,448 | 177,629 | |
Adjusted operating profit (loss) | 2,771 | 4,223 | |
Total assets | 338,995 | 403,706 | |
International Marketing and Distribution | |||
Segment Reporting Information [Line Items] | |||
Net sales | 280,062 | 519,631 | |
Adjusted operating profit (loss) | (2,169) | 16,669 | |
Total assets | 710,651 | 798,914 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,391 | 832 | |
Adjusted operating profit (loss) | (18,072) | (19,611) | |
Total assets | 1,203,498 | 1,049,815 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Adjusted operating profit (loss) | (330) | (805) | |
Total assets | (550,372) | $ (552,577) | |
Segments | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,154,859 | 1,679,990 | |
Segments | Americas Recycling | |||
Segment Reporting Information [Line Items] | |||
Net sales | 179,207 | 316,059 | |
Segments | Americas Mills | |||
Segment Reporting Information [Line Items] | |||
Net sales | 384,532 | 524,851 | |
Segments | Americas Fabrication | |||
Segment Reporting Information [Line Items] | |||
Net sales | 382,314 | 412,488 | |
Segments | International Mill | |||
Segment Reporting Information [Line Items] | |||
Net sales | 120,448 | 177,629 | |
Segments | International Marketing and Distribution | |||
Segment Reporting Information [Line Items] | |||
Net sales | 283,037 | 537,806 | |
Segments | Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,391 | 832 | |
Segments | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | (197,070) | (289,675) | |
Intersegment | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Intersegment | Americas Recycling | |||
Segment Reporting Information [Line Items] | |||
Net sales | 24,371 | 46,257 | |
Intersegment | Americas Mills | |||
Segment Reporting Information [Line Items] | |||
Net sales | 166,891 | 220,992 | |
Intersegment | Americas Fabrication | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,833 | 4,251 | |
Intersegment | International Mill | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Intersegment | International Marketing and Distribution | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,975 | 18,175 | |
Intersegment | Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Intersegment | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ (197,070) | $ (289,675) |
BUSINESS SEGMENTS (Reconciliations of Earnings from Continuing Operations to Adjusted Operating Profit) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Segment Reporting [Abstract] | ||
Earnings from continuing operations | $ 25,633 | $ 34,265 |
Income taxes | 11,772 | 13,218 |
Interest expense | 18,304 | 19,057 |
Discounts on sales of accounts receivable | 352 | 451 |
Adjusted operating profit | $ 56,061 | $ 66,991 |
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