Redeemable Noncontrolling Interest

In March 2011, the Company, through a wholly-owned acquisition subsidiary, acquired substantially all of the metals recycling business assets of Amix Salvage & Sales Ltd. As part of the purchase consideration, the Company issued the seller common shares equal to 20% of the issued and outstanding capital stock of the Company’s acquisition subsidiary. Under the terms of an agreement related to the acquisition, the noncontrolling interest holder has the right to require the Company to purchase its interest in the Company’s acquisition subsidiary for fair value. The noncontrolling interest becomes redeemable within 60 days after the later of (i) the third anniversary of the date of the acquisition and (ii) the date on which certain principals of the minority shareholder are no longer employed by the Company. As of February 28, 2013, the noncontrolling interest was 19% of the outstanding capital stock of the subsidiary and the conditions for redemption had not been met.

On March 8, 2013, the Company entered into an agreement with the noncontrolling interest holder for the purchase of all of the outstanding noncontrolling interest in the Company's subsidiary for $25 million. As of February 28, 2013, the noncontrolling interest was presented at its fair value of $25 million in the Condensed Consolidated Balance Sheets. The difference between the adjusted carrying value and the fair value of the noncontrolling interest was recorded as a reduction to retained earnings.

Following is a reconciliation of the changes in the redeemable noncontrolling interest for the six months ended February 28, 2013 and February 29, 2012 (in thousands):



	2013			2012
Balances - September 1 (Beginning of period)	$	22,248		$	19,053
Net loss attributable to noncontrolling interest	(903		)	(198		)
Currency translation adjustment	(1,059		)	217
Capital contributions from noncontrolling interest holder	1,970			2,104
Adjustment to fair value	2,504			—
Balances - February 28, 2013 and February 29, 2012 (End of period)	$	24,760		$	21,176