OPERATING SEGMENTS

12 Months Ended

Aug. 31, 2023

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 19. OPERATING 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 ("CODM") to manage the business, make decisions about resources to be allocated to the segments and to assess performance. As of August 31, 2023, the Company's CODM was identified as the President, the Chief Executive Officer, the Senior Vice President and Chief Financial Officer and the Senior Vice President Operations.

The Company structures its business into the following two reportable segments: North America and Europe. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, 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. Certain corporate administrative expenses are allocated to the segments based upon the nature of the expense.

The CODM uses adjusted EBITDA to evaluate segment performance and allocate resources. Adjusted EBITDA is the sum of the Company's earnings before interest expense, income taxes, depreciation and amortization expense and impairment expense.

The following table summarizes certain financial information by reportable segment and Corporate and Other:

(in thousands)	North America		Europe		Corporate and Other		Total
2023
Net sales	$	7,347,020	$	1,416,704	$	35,809	$	8,799,533
Adjusted EBITDA	1,454,754		61,353		(131,403)		1,384,704
Interest expense(1)	116,650		1,978		(78,501)		40,127
Capital expenditures	548,218		45,295		13,152		606,665
Depreciation and amortization	170,266		39,457		9,107		218,830
Asset impairments	3,733		47		—		3,780
Total assets	5,006,458		1,096,153		536,483		6,639,094
2022
Net sales	$	7,298,632	$	1,621,642	$	(6,793)	$	8,913,481
Adjusted EBITDA	1,553,858		346,051		(154,103)		1,745,806
Interest expense(1)	26,798		3,819		20,092		50,709
Capital expenditures	415,157		27,783		7,048		449,988
Depreciation and amortization	135,322		31,250		8,452		175,024
Asset impairments	4,915		11		—		4,926
Total assets	4,467,314		1,056,101		713,612		6,237,027
2021
Net sales	$	5,670,976	$	1,049,059	$	9,725	$	6,729,760
Adjusted EBITDA	746,594		148,258		(140,568)		754,284
Interest expense(1)	25,131		476		26,297		51,904
Capital expenditures	134,932		44,002		5,231		184,165
Depreciation and amortization	132,192		27,516		7,905		167,613
Asset impairments	6,360		424		—		6,784
Total assets	3,221,465		729,766		687,440		4,638,671

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(1) Includes intercompany interest expense in the segments, which is eliminated within Corporate and Other.

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

	Year Ended August 31,
(in thousands)	2023		2022		2021
Net earnings	$	859,760	$	1,217,262	$	412,865
Interest expense	40,127		50,709		51,904
Income taxes	262,207		297,885		121,153
Depreciation and amortization	218,830		175,024		167,613
Asset impairments	3,780		4,926		6,784
Amortization of acquired unfavorable contract backlog	—		—		(6,035)
Adjusted EBITDA	$	1,384,704	$	1,745,806	$	754,284

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

	Year Ended August 31, 2023
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	1,322,781	$	20,034	$	—	$	1,342,815
Steel products	2,785,266		1,068,946		—		3,854,212
Downstream products	2,517,908		200,196		—		2,718,104
Construction-related solutions	587,573		79,836		—		667,409
Other(1)	132,651		39,649		44,693		216,993
Net sales from external customers	7,346,179		1,408,661		44,693		8,799,533
Intersegment net sales, eliminated on consolidation	841		8,043		(8,884)		—
Net sales	$	7,347,020	$	1,416,704	$	35,809	$	8,799,533

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(1) Other revenue during the year ended August 31, 2023 includes $17.7 million derived from the Company's NMTC transactions. See Note 9, New Markets Tax Credit Transactions, for further information.

	Year Ended August 31, 2022
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	1,504,107	$	25,259	$	—	$	1,529,366
Steel products	2,955,121		1,235,691		—		4,190,812
Downstream products	2,245,734		292,136		—		2,537,870
Construction-related solutions	453,517		27,279		—		480,796
Other	138,164		39,206		(2,733)		174,637
Net sales from external customers	7,296,643		1,619,571		(2,733)		8,913,481
Intersegment net sales, eliminated on consolidation	1,989		2,071		(4,060)		—
Net sales	$	7,298,632	$	1,621,642	$	(6,793)	$	8,913,481

	Year Ended August 31, 2021
(in thousands)	North America		Europe		Corporate and Other		Total
Major product:
Raw materials	$	1,162,997	$	19,841	$	—	$	1,182,838
Steel products	2,289,975		808,662		—		3,098,637
Downstream products	1,814,192		192,175		—		2,006,367
Construction-related solutions	289,644		—		—		289,644
Other	114,168		26,567		11,539		152,274
Net sales from external customers	5,670,976		1,047,245		11,539		6,729,760
Intersegment net sales, eliminated on consolidation	—		1,814		(1,814)		—
Net sales	$	5,670,976	$	1,049,059	$	9,725	$	6,729,760

The following table presents net sales by geographic area:

	Year Ended August 31,
(in thousands)	2023		2022		2021
Geographic area:
United States	$	6,894,990	$	6,793,023	$	5,295,447
Poland	941,806		1,078,986		793,075
China	217,779		246,679		156,101
Other	744,958		794,793		485,137
Net sales	$	8,799,533	$	8,913,481	$	6,729,760

The following table presents long-lived assets, net of accumulated depreciation and amortization, by geographic area:

	August 31,
(in thousands)	2023		2022		2021
Geographic area:
United States	$	2,343,606	$	1,858,269	$	1,473,745
Poland	209,966		180,350		225,582
Other	39,704		35,199		23
Total long-lived assets, net	$	2,593,276	$	2,073,818	$	1,699,350