BUSINESS SEGMENTS

6 Months Ended

Feb. 28, 2018

Segment Reporting [Abstract]

Business segments

NOTE 14. BUSINESS SEGMENTS

The Company's operating segments earn revenues and incur expenses 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 four reporting segments: Americas Recycling, Americas Mills, Americas Fabrication, and International Mill. See Note 1, Nature of Operations, of the audited consolidated financial statements included in the 2017 Form 10-K for more information about the reporting segments, including the types of products and services from which each reporting segment derives its net sales. During the second quarter of fiscal 2018, the Company substantially completed the exit of the International Marketing and Distribution segment. See Note 2, Changes in Business, for further information. Certain components of the International Marketing and Distribution segment which were wound down in prior periods, including the Company's steel trading operations based in the United Kingdom, did not meet the criteria for discontinued operations and are included in continuing operations for all periods presented. Such activities are included in the results of Corporate and Other, and are immaterial for the three and six months ended February 28, 2018. Corporate and Other also contains earnings or losses on assets and liabilities related to the BRP assets and short-term investments as well as expenses of the Company's corporate headquarters and interest expense related to its long-term debt.

The Company uses adjusted operating profit (loss) from continuing operations to compare and evaluate the financial performance of its segments. Adjusted operating profit (loss) is the sum of the Company's earnings from continuing operations before interest expense, income taxes 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 2017 Form 10-K.

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

	Three Months Ended February 28, 2018
(in thousands)	Americas Recycling		Americas Mills		Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	265,432	$	262,703	$	310,199		$	211,484	$	4,450		$	—		$	1,054,268
Intersegment sales	55,195		163,184		2,774			281		—			(221,434		)	—
Net sales	320,627		425,887		312,973			211,765		4,450			(221,434		)	1,054,268
Adjusted operating profit (loss) from continuing operations	12,238		31,536		(27,117		)	24,490		(22,361		)	100			18,886
	Six Months Ended February 28, 2018
(in thousands)	Americas Recycling		Americas Mills		Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	539,769	$	509,436	$	640,751		$	431,696	$	9,149		$	—		$	2,130,801
Intersegment sales	100,199		329,969		5,001			546		—			(435,715		)	—
Net sales	639,968		839,405		645,752			432,242		9,149			(435,715		)	2,130,801
Adjusted operating profit (loss) from continuing operations	22,230		72,300		(31,900		)	47,927		(43,034		)	(1,472		)	66,051
Total assets as of February 28, 2018*	298,470		1,032,112		671,142			511,140		695,856			(441,740		)	2,766,980
	Three Months Ended February 28, 2017
(in thousands)	Americas Recycling		Americas Mills		Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	188,502	$	220,607	$	301,382		$	134,472	$	17,335		$	—		$	862,298
Intersegment sales	34,826		155,986		2,444			180		—			(193,436		)	—
Net sales	223,328		376,593		303,826			134,652		17,335			(193,436		)	862,298
Adjusted operating profit (loss) from continuing operations	7,788		51,319		507			9,484		(25,112		)	(582		)	43,404
	Six Months Ended February 28, 2017
(in thousands)	Americas Recycling		Americas Mills		Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	342,864	$	423,938	$	636,659		$	269,004	$	42,761		$	—		$	1,715,226
Intersegment sales	57,172		299,820		5,566			391		641			(363,590		)	—
Net sales	400,036		723,758		642,225			269,395		43,402			(363,590		)	1,715,226
Adjusted operating profit (loss) from continuing operations	2,734		88,268		7,218			19,546		(51,895		)	(795		)	65,076
Total assets as of August 31, 2017*	240,371		933,022		683,609			464,428		687,984			(327,883		)	2,681,531

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* Excludes total assets from discontinued operations of $143.5 million at February 28, 2018 and $293.6 million at August 31, 2017.

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

	Three Months Ended February 28,				Six Months Ended February 28,
(in thousands)	2018		2017		2018		2017
Earnings from continuing operations	$	9,781	$	22,992	$	41,652	$	28,678
Income taxes	1,728		7,772		10,153		10,225
Interest expense	7,181		12,439		13,792		25,764
Discounts on sales of accounts receivable	196		201		454		409
Adjusted operating profit from continuing operations	$	18,886	$	43,404	$	66,051	$	65,076