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Restructuring Charges and Other Exit-Related Costs
 12 Months Ended
Aug. 31, 2017
Restructuring Charges, Asset Impairment and Accelerated Depreciation, Including Discontinued Operations [Abstract]  
Restructuring Charges and Other Exit-Related Activities
Restructuring Charges and Other Exit-Related Activities
The Company has implemented a number of restructuring initiatives designed to reduce operating expenses and improve profitability and to achieve further integration and synergistic cost efficiencies in its operating platform. The restructuring charges incurred by the Company during the periods presented pertain primarily to the plan announced in the second quarter of fiscal 2015 and expanded in subsequent periods (the "Q2'15 Plan").
At the end of the second quarter of fiscal 2015, the Company commenced additional restructuring and exit-related initiatives by undertaking strategic actions consisting of idling underutilized assets at AMR and initiating the closure of seven auto parts stores to align the Company's business to market conditions. The Company expanded these initiatives in April 2015 and also announced the integration of the former Metals Recycling Business and Auto Parts Business into the combined AMR platform in order to achieve operational synergies and reduce the Company's annual operating expenses, primarily selling, general and administrative expenses, through headcount reductions, reducing organizational layers, consolidating shared service functions and other non-headcount measures. Additional cost savings and productivity improvement initiatives, including additional reductions in personnel, savings from procurement activities, streamlining of administrative and supporting services functions, and adjustments to its operating capacity through facility closures, were identified and initiated in subsequent periods. Collectively, these initiatives are referred to as the Q2'15 Plan.
The Company incurred restructuring charges of less than $1 million, $6 million and $11 million in fiscal 2017, 2016 and 2015, respectively. Charges relating to these initiatives were substantially complete by the end of fiscal 2017. However, the Company may incur additional restructuring charges after fiscal 2017 as a result of remeasuring lease contract termination liabilities to reflect changes in contractual lease rentals and sublease rentals that are not currently estimable.
In addition to the restructuring charges recorded related to these initiatives, the Company recognized a net gain from other exit-related activities of less than $1 million during fiscal 2017, primarily related to a gain recorded in connection with the disposition of business assets related to the elimination of a metals recycling feeder yard operation. Other exit-related activities in fiscal 2016 also included $1 million in gains recorded in connection with the disposition of business assets leading to the elimination of certain auto and metals recycling operations. The Company incurred charges associated with other exit-related activities of $2 million and $7 million in fiscal 2016 and 2015, respectively, consisting primarily of asset impairments and accelerated depreciation of assets in connection with site closures.
Restructuring charges and other exit-related activities were comprised of the following (in thousands):
 
 
 
2017
 
2016
 
2015
 
All Other Plans
 
Q2’15 Plan
 
Total Charges
 
All Other Plans
 
Q2’15 Plan
 
Total Charges
 
All Other Plans
 
Q2’15 Plan
 
Total Charges
Restructuring charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Severance costs
$
—

 
$
(24
)
 
$
(24
)
 
$
—

 
$
4,915

 
$
4,915

 
$
391

 
$
5,330

 
$
5,721

Contract termination costs
255

 
139

 
394

 
311

 
796

 
1,107

 
377

 
1,245

 
1,622

Other restructuring costs
—

 
—

 
—

 
—

 
—

 
—

 
1,223

 
2,048

 
3,271

Total restructuring charges
255

 
115

 
370

 
311

 
5,711

 
6,022

 
1,991

 
8,623

 
10,614

Other exit-related activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset impairments and accelerated depreciation
—

 
158

 
158

 
—

 
3,127

 
3,127

 
—

 
6,502

 
6,502

Gains on exit-related disposals
—

 
(565
)
 
(565
)
 
—

 
(1,337
)
 
(1,337
)
 
—

 
—

 
—

Total other exit-related activities
—

 
(407
)
 
(407
)
 
—

 
1,790

 
1,790

 
—

 
6,502

 
6,502

Total restructuring charges and other exit-related activities
$
255

 
$
(292
)
 
$
(37
)
 
$
311

 
$
7,501

 
$
7,812

 
$
1,991

 
$
15,125

 
$
17,116

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges and other exit-related activities included in continuing operations
 
$
(109
)
 
 
 
 
 
$
6,781

 
 
 
 
 
$
13,008

Restructuring charges and other exit-related activities included in discontinued operations
 
$
72

 
 
 
 
 
$
1,031

 
 
 
 
 
$
4,108

 
 

Q2’15 Plan
Total restructuring charges to date
$
14,449

Total expected restructuring charges
$
14,480


The following illustrates the reconciliation of the restructuring liability by major type of cost for the years ended August 31, 2017 and 2016 (in thousands):
 
Q2’15 Plan
 
Balance 8/31/2015
 
Charges
 
Payments and Other
 
Balance 8/31/2016
 
Charges
 
Payments and Other
 
Balance 8/31/2017
Severance costs
$
1,226

 
$
4,915

 
$
(5,223
)
 
$
918

 
$
(24
)
 
$
(859
)
 
$
35

Contract termination costs
1,320

 
796

 
(957
)
 
1,159

 
139

 
(409
)
 
889

Other restructuring costs
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
2,546

 
$
5,711

 
$
(6,180
)
 
$
2,077

 
$
115

 
$
(1,268
)
 
$
924


 
Total Charges to Date(1)
 
Total Expected Charges(1)
Severance costs
$
10,251

 
$
10,251

Contract termination costs
2,149

 
2,180

Other restructuring costs
2,049

 
2,049

Total
$
14,449

 
$
14,480


___________________________
(1)
Total charges to date and total expected charges by major type of cost reflect amounts related to the Q2'15 Plan only. Remaining charges related to prior plans are not expected to be material.
Restructuring charges and other exit-related activities by reportable segment were as follows (in thousands):
 
Fiscal 2017 Charges
 
Fiscal 2016 Charges
 
Fiscal 2015 Charges
 
Total Charges to Date(2)
 
Total Expected Charges(2)
Restructuring charges:
 
 
 
 
 
 
 
 
 
AMR and CSS(1)
$
250

 
$
4,995

 
$
6,944

 
$
9,488

 
$
9,504

Unallocated (Corporate)
48

 
943

 
2,228

 
3,226

 
3,226

Discontinued operations
72

 
84

 
1,442

 
1,735

 
1,750

Total restructuring charges
370

 
6,022

 
10,614

 
14,449

 
$
14,480

Other exit-related activities:
 
 
 
 
 
 
 
 
 
Asset impairments and accelerated depreciation:
 
 
 
 
 
 
 
 
 
AMR
158

 
2,180

 
3,836

 
4,272

 
 
Discontinued operations
—

 
947

 
2,666

 
3,613

 
 
Total asset impairments and accelerated depreciation
158

 
3,127

 
6,502

 
7,885

 
 
Gains on exit-related disposals:
 
 
 
 
 
 
 
 
 
AMR
(565
)
 
(1,337
)
 
—

 
(1,902
)
 
 
Total gains on exit-related disposals
(565
)
 
(1,337
)
 
—

 
(1,902
)
 
 
Total exit-related activities
(407
)
 
1,790

 
6,502

 
5,983

 
 
Total restructuring charges and other exit-related activities
$
(37
)
 
$
7,812

 
$
17,116

 
$
20,432

 
 

___________________________
(1)
CSS's steel manufacturing operations, formerly the SMB reportable segment, did not incur restructuring charges during the periods presented. CSS's metals recycling operations, formerly part of the AMR reportable segment, incurred an immaterial amount of restructuring charges during the periods presented. Therefore, the Company presents restructuring charges related to AMR and CSS on a combined basis.
(2)
Total charges to date and total expected charges by reportable segment and discontinued operations reflect amounts related to the Q2'15 Plan only. Remaining charges related to prior plans are not expected to be material.
The Company does not allocate restructuring charges and other exit-related activities to the segments' operating results because management does not include this information in its measurement of the performance of the operating segments.