BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS

12 Months Ended

Aug. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

BUSINESSES HELD FOR SALE, DISCONTINUED OPERATIONS AND DISPOSITIONS

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

Businesses Held for Sale

The Company did not have any businesses classified as held for sale at August 31, 2016. As of August 31, 2015, one component of the Australian steel distribution business was classified as held for sale. Assets and liabilities of the business held for sale on the Company’s consolidated balance sheet consisted of the following:

	Year Ended August 31,
(in thousands)	2015
Assets:
Accounts receivable	$	3,244
Inventories, net	12,514
Other current assets	41
Property, plant and equipment, net of accumulated depreciation and amortization	1,209
Assets of businesses held for sale	$	17,008
Liabilities:
Accounts payable-trade	$	3,011
Accrued expenses and other payables	2,265
Liabilities of businesses held for sale	$	5,276

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 the decision to exit this business met the definition of a discontinued operation. As a result, this business has been presented as a discontinued operation for all periods presented. The Australian steel distribution business was previously included in the International Marketing and Distribution reporting segment.

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

Financial information for discontinued operations was as follows:

	Year Ended August 31,
(in thousands)	2016			2015			2014
Net sales	$	41,414		$	173,065		$	266,819
Loss before income taxes	(17,949		)	(20,124		)	(2,650		)

Dispositions

During the fourth quarter of fiscal 2015, the Company completed the sale of six locations that were a part of the Australian steel distribution business for proceeds of $26.4 million, subject to customary purchase price adjustments. The Company recognized an $8.1 million pre-tax gain on the sale, which included a currency translation gain of $10.1 million. Additionally, all operations ceased at three other locations that were part of the Australian steel distribution business. In the fourth quarter of fiscal 2016, the Company completed the sale of the one remaining Australian steel distribution location, excluding accounts receivable, for proceeds of $4.4 million, resulting in an immaterial impact to earnings from discontinued operations for fiscal year 2016. The results of the sales and the activity related to the Australian steel distribution business were included in discontinued operations in the consolidated statement of earnings for all periods presented.

During the first quarter of fiscal 2014, the Company completed the sale of all of the outstanding capital stock of Howell for $58.5 million, resulting in a pre-tax gain of $6.3 million, which was included in discontinued operations in the consolidated statement of earnings for the year ended August 31, 2014. A portion of the proceeds totaling $3.2 million was placed in escrow and subsequently released to the Company in the second quarter of fiscal 2016. The Company disposed of the remaining assets held for sale of $1.1 million during the fourth quarter of fiscal 2014 with an immaterial impact to the consolidated statement of earnings.