BUSINESS SEGMENTS

6 Months Ended

Feb. 29, 2024

Segment Reporting [Abstract]

Business segments

NOTE 13. SEGMENT INFORMATION

The Company structures its business into three reportable segments: North America Steel Group, Europe Steel Group and Emerging Businesses Group. See Note 1, Nature of Operations and 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. Other revenue resulting from the Company's New Markets Tax Credit ("NMTC") transactions are reflected in Corporate and Other net sales and are described in Note 9, New Markets Tax Credit Transactions, to the consolidated financial statements in the 2023 Form 10-K. In addition to other revenue from NMTC transactions, "Corporate and Other expenses" contains unallocated corporate amounts, such as earnings or losses resulting from the Company's Benefit Restoration Plan assets and liabilities and short-term investments, expenses of the Company's corporate headquarters, interest expense related to long-term debt and intercompany eliminations. Prior period balances in the tables below have been recast to reflect current period presentation, as described in Note 1, Nature of Operations and Accounting Policies.

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

	Three Months Ended				Six Months Ended
(in thousands)	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Net sales from external customers:
North America Steel Group	$	1,486,202	$	1,503,774	$	3,078,852	$	3,167,935
Europe Steel Group	192,500		337,560		417,675		724,063
Emerging Businesses Group	155,994		153,598		333,233		324,132
Reportable segments total	1,834,696		1,994,932		3,829,760		4,216,130
Corporate and Other	13,591		23,071		21,578		29,186
Total	$	1,848,287	$	2,018,003	$	3,851,338	$	4,245,316

Adjusted EBITDA:
North America Steel Group	$	222,294	$	274,240	$	489,114	$	624,027
Europe Steel Group	(8,611)		11,469		30,331		72,717
Emerging Businesses Group	17,929		26,551		48,791		57,977
Reportable segments total	$	231,612	$	312,260	$	568,236	$	754,721

	February 29, 2024		August 31, 2023
Total assets:
North America Steel Group	$	4,252,618	$	4,166,521
Europe Steel Group	739,354		927,468
Emerging Businesses Group	837,668		874,330
Reportable segments total	5,829,640		5,968,319
Corporate and Other	832,625		670,775
Total	$	6,662,265	$	6,639,094

The following table presents a reconciliation of net earnings to adjusted EBITDA from the reportable segments:

	Three Months Ended				Six Months Ended
(in thousands)	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Net earnings	$	85,847	$	179,849	$	262,120	$	441,623
Interest expense	11,878		9,945		23,634		22,990
Income taxes	31,072		55,641		79,494		132,366
Depreciation and amortization	68,299		51,216		137,485		102,399
Asset impairments	4		36		4		45
Corporate and Other expenses	34,512		15,573		65,499		55,298
Adjusted EBITDA reportable segments	$	231,612	$	312,260	$	568,236	$	754,721

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 29, 2024
(in thousands)	North America Steel Group		Europe Steel Group		Emerging Businesses Group		Corporate and Other		Total
Major product:
Raw materials	$	325,006	$	4,137	$	—	$	—	$	329,143
Steel products	612,308		158,180		—		—		770,488
Downstream products	513,253		23,517		40,507		—		577,277
Construction products	—		—		65,467		—		65,467
Ground stabilization solutions	—		—		45,135		—		45,135
Other	35,635		6,666		4,885		13,591		60,777
Net sales from external customers	1,486,202		192,500		155,994		13,591		1,848,287
Intersegment net sales, eliminated on consolidation	18,904		1,058		7,453		(27,415)		—
Net sales	$	1,505,106	$	193,558	$	163,447	$	(13,824)	$	1,848,287
	Six Months Ended February 29, 2024
(in thousands)	North America Steel Group		Europe Steel Group		Emerging Businesses Group		Corporate and Other		Total
Major product:
Raw materials	$	638,661	$	7,851	$	—	$	—	$	646,512
Steel products	1,270,068		333,712		—		—		1,603,780
Downstream products	1,090,255		62,145		78,053		—		1,230,453
Construction products	—		—		143,226		—		143,226
Ground stabilization solutions	—		—		102,458		—		102,458
Other	79,868		13,967		9,496		21,578		124,909
Net sales from external customers	3,078,852		417,675		333,233		21,578		3,851,338
Intersegment net sales, eliminated on consolidation	38,541		1,634		12,240		(52,415)		—
Net sales	$	3,117,393	$	419,309	$	345,473	$	(30,837)	$	3,851,338

	Three Months Ended February 28, 2023
(in thousands)	North America Steel Group		Europe Steel Group		Emerging Businesses Group		Corporate and Other		Total
Major product:
Raw materials	$	317,807	$	4,894	$	—	$	—	$	322,701
Steel products	628,806		272,607		—		—		901,413
Downstream products	515,492		50,128		25,530		—		591,150
Construction products	—		—		75,431		—		75,431
Ground stabilization solutions	—		—		48,914		—		48,914
Other(1)	41,669		9,931		3,723		23,071		78,394
Net sales from external customers	1,503,774		337,560		153,598		23,071		2,018,003
Intersegment net sales, eliminated on consolidation	21,713		663		7,146		(29,522)		—
Net sales	$	1,525,487	$	338,223	$	160,744	$	(6,451)	$	2,018,003
	Six Months Ended February 28, 2023
(in thousands)	North America Steel Group		Europe Steel Group		Emerging Businesses Group		Corporate and Other		Total
Major product:
Raw materials	$	611,127	$	9,761	$	—	$	—	$	620,888
Steel products	1,332,400		584,543		—		—		1,916,943
Downstream products	1,134,459		109,710		50,338		—		1,294,507
Construction products	—		—		158,998		—		158,998
Ground stabilization solutions	—		—		107,993		—		107,993
Other(1)	89,949		20,049		6,803		29,186		145,987
Net sales from external customers	3,167,935		724,063		324,132		29,186		4,245,316
Intersegment net sales, eliminated on consolidation	47,567		1,195		15,924		(64,686)		—
Net sales	$	3,215,502	$	725,258	$	340,056	$	(35,500)	$	4,245,316

_______________________________

(1) Other revenue during the three and six months ended February 28, 2023 includes $17.7 million derived from the Company's NMTC transactions. See Note 9, New Markets Tax Credit Transactions, to the consolidated financial statements in the 2023 Form 10-K for further information.