BUSINESS SEGMENTS

6 Months Ended

Feb. 28, 2022

Segment Reporting [Abstract]

Business segments

NOTE 14. BUSINESS SEGMENTS

The Company structures its business into two reportable segments: North America and Europe. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, to the consolidated financial statements in the 2021 Form 10-K for more information about the reportable segments, including the types of products and services from which each reportable segment derives its net sales. Corporate and Other contains earnings or losses on assets and liabilities related to the Company's Benefit Restoration Plan assets and short-term investments, expenses of the Company's corporate headquarters, interest expense related to its long-term debt and intercompany eliminations.

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

	Three Months Ended February 28, 2022
(in thousands)	North America		Europe		Corporate and Other		Continuing Operations
Net sales	$	1,614,224	$	395,758	$	(1,094)	$	2,008,888
Adjusted EBITDA	535,463		81,149		(52,493)		564,119
	Six Months Ended February 28, 2022
(in thousands)	North America		Europe		Corporate and Other		Continuing Operations
Net sales	$	3,267,846	$	724,814	$	(1,971)	$	3,990,689
Adjusted EBITDA	803,987		160,981		(86,827)		878,141
Total assets at February 28, 2022	3,553,719		823,127		1,127,374		5,504,220

	Three Months Ended February 28, 2021
(in thousands)	North America		Europe		Corporate and Other		Continuing Operations
Net sales	$	1,257,486	$	202,066	$	2,718	$	1,462,270
Adjusted EBITDA	171,612		16,107		(45,986)		141,733
	Six Months Ended February 28, 2021
(in thousands)	North America		Europe		Corporate and Other		Continuing Operations
Net sales	$	2,452,499	$	396,662	$	4,912	$	2,854,073
Adjusted EBITDA	327,246		30,577		(72,457)		285,366
Total assets at August 31, 2021	3,221,465		729,766		687,440		4,638,671

The following table presents a reconciliation of earnings from continuing operations to adjusted EBITDA from continuing operations:

	Three Months Ended February 28,				Six Months Ended February 28,
(in thousands)	2022		2021		2022		2021
Earnings from continuing operations	$	383,314	$	66,233	$	616,203	$	130,144
Interest expense	12,011		14,021		23,046		28,280
Income taxes	126,432		20,941		155,304		42,534
Depreciation and amortization	41,134		41,573		82,360		83,372
Asset impairments	1,228		474		1,228		4,068
Amortization of acquired unfavorable contract backlog	—		(1,509)		—		(3,032)
Adjusted EBITDA from continuing operations	$	564,119	$	141,733	$	878,141	$	285,366

Disaggregation of Revenue

The following tables display revenue by reportable segment and Corporate and Other from external customers, disaggregated by major product:

	Three Months Ended February 28, 2022
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	366,941	$	5,864	$	—	$	372,805
Steel products	666,047		320,414		—		986,461
Downstream products	459,753		59,541		—		519,294
Other	121,483		9,530		(685)		130,328
Net sales from external customers	1,614,224		395,349		(685)		2,008,888
Intersegment net sales, eliminated on consolidation	—		409		(409)		—
Net sales	$	1,614,224	$	395,758	$	(1,094)	$	2,008,888
	Six Months Ended February 28, 2022
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	720,033	$	12,824	$	—	$	732,857
Steel products	1,341,089		563,559		—		1,904,648
Downstream products	974,149		129,613		—		1,103,762
Other	232,575		17,915		(1,068)		249,422
Net sales from external customers	3,267,846		723,911		(1,068)		3,990,689
Intersegment net sales, eliminated on consolidation	—		903		(903)		—
Net sales	$	3,267,846	$	724,814	$	(1,971)	$	3,990,689

	Three Months Ended February 28, 2021
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	255,012	$	4,775	$	—	$	259,787
Steel products	514,201		157,482		—		671,683
Downstream products	400,397		33,762		—		434,159
Other	87,876		5,540		3,225		96,641
Net sales from external customers	1,257,486		201,559		3,225		1,462,270
Intersegment net sales, eliminated on consolidation	—		507		(507)		—
Net sales	$	1,257,486	$	202,066	$	2,718	$	1,462,270
	Six Months Ended February 28, 2021
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	465,249	$	7,605	$	—	$	472,854
Steel products	971,858		308,937		—		1,280,795
Downstream products	837,426		68,235		—		905,661
Other	177,966		10,967		5,830		194,763
Net sales from external customers	2,452,499		395,744		5,830		2,854,073
Intersegment net sales, eliminated on consolidation	—		918		(918)		—
Net sales	$	2,452,499	$	396,662	$	4,912	$	2,854,073