BUSINESS SEGMENTS

9 Months Ended

May 31, 2023

Segment Reporting [Abstract]

Business segments

NOTE 15. OPERATING 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 2022 Form 10-K and Note 2, Changes in Business, 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 BRP assets and short-term investments, expenses of the Company's corporate headquarters, interest expense related to long-term debt, other revenue resulting from the Company's NMTC transactions and intercompany eliminations.

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

	Three Months Ended May 31, 2023
(in thousands)	North America		Europe		Corporate and Other		Total
Net sales	$	1,987,535	$	353,294	$	4,160	$	2,344,989
Adjusted EBITDA	402,175		9,618		(37,715)		374,078
	Nine Months Ended May 31, 2023
(in thousands)	North America		Europe		Corporate and Other		Total
Net sales	$	5,445,367	$	1,115,440	$	29,498	$	6,590,305
Adjusted EBITDA	1,079,442		87,072		(93,013)		1,073,501
Total assets at May 31, 2023	4,837,341		1,270,636		412,883		6,520,860

	Three Months Ended May 31, 2022
(in thousands)	North America		Europe		Corporate and Other		Total
Net sales	$	2,033,150	$	484,564	$	(1,987)	$	2,515,727
Adjusted EBITDA	379,355		120,974		(35,049)		465,280
	Nine Months Ended May 31, 2022
(in thousands)	North America		Europe		Corporate and Other		Total
Net sales	$	5,300,996	$	1,209,378	$	(3,958)	$	6,506,416
Adjusted EBITDA	1,183,342		281,955		(121,876)		1,343,421
Total assets at August 31, 2022	4,467,314		1,056,101		713,612		6,237,027

The following table presents a reconciliation of net earnings to adjusted EBITDA:

	Three Months Ended May 31,				Nine Months Ended May 31,
(in thousands)	2023		2022		2023		2022
Net earnings	$	233,971	$	312,429	$	675,594	$	928,632
Interest expense	8,878		13,433		31,868		36,479
Income taxes	76,099		92,590		208,465		247,894
Depreciation and amortization	55,129		43,583		157,528		125,943
Asset impairments	1		3,245		46		4,473
Adjusted EBITDA	$	374,078	$	465,280	$	1,073,501	$	1,343,421

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 May 31, 2023
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	385,449	$	5,967	$	—	$	391,416
Steel products	752,153		269,112		—		1,021,265
Downstream products	659,103		46,448		—		705,551
Construction-related solutions	150,348		21,902		—		172,250
Other	38,466		9,265		6,776		54,507
Net sales from external customers	1,985,519		352,694		6,776		2,344,989
Intersegment net sales, eliminated on consolidation	2,016		600		(2,616)		—
Net sales	$	1,987,535	$	353,294	$	4,160	$	2,344,989
	Nine Months Ended May 31, 2023
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	993,480	$	15,728	$	—	$	1,009,208
Steel products	2,088,339		853,655		—		2,941,994
Downstream products	1,840,210		156,158		—		1,996,368
Construction-related solutions	415,184		58,728		—		473,912
Other(1)	103,547		29,313		35,963		168,823
Net sales from external customers	5,440,760		1,113,582		35,963		6,590,305
Intersegment net sales, eliminated on consolidation	4,607		1,858		(6,465)		—
Net sales	$	5,445,367	$	1,115,440	$	29,498	$	6,590,305

_______________________________

(1) Other revenue during the nine months ended May 31, 2023 includes $17.7 million derived from the Company's NMTC transactions. See Note 8, New Markets Tax Credit Transactions, for further information.

	Three Months Ended May 31, 2022
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	435,171	$	7,406	$	—	$	442,577
Steel products	851,762		367,810		—		1,219,572
Downstream products	587,568		88,667		—		676,235
Construction-related solutions	121,285		9,481		—		130,766
Other	37,356		10,641		(1,420)		46,577
Net sales from external customers	2,033,142		484,005		(1,420)		2,515,727
Intersegment net sales, eliminated on consolidation	8		559		(567)		—
Net sales	$	2,033,150	$	484,564	$	(1,987)	$	2,515,727
	Nine Months Ended May 31, 2022
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	1,155,204	$	20,230	$	—	$	1,175,434
Steel products	2,192,851		931,369		—		3,124,220
Downstream products	1,561,717		218,280		—		1,779,997
Construction-related solutions	287,422		9,481		—		296,903
Other	103,794		28,556		(2,488)		129,862
Net sales from external customers	5,300,988		1,207,916		(2,488)		6,506,416
Intersegment net sales, eliminated on consolidation	8		1,462		(1,470)		—
Net sales	$	5,300,996	$	1,209,378	$	(3,958)	$	6,506,416