10-Q 1 cmc-20220228.htm 10-Q cmc-20220228
0000022444FALSE2022Q2--08-31us-gaap:AccruedLiabilitiesCurrentus-gaap:AccruedLiabilitiesCurrentus-gaap:OtherLiabilitiesNoncurrentus-gaap:OtherLiabilitiesNoncurrent00000224442021-09-012022-02-2800000224442022-03-22xbrli:shares00000224442021-12-012022-02-28iso4217:USD00000224442020-12-012021-02-2800000224442020-09-012021-02-28iso4217:USDxbrli:shares00000224442022-02-2800000224442021-08-3100000224442020-08-3100000224442021-02-280000022444us-gaap:CommonStockMember2021-11-300000022444us-gaap:AdditionalPaidInCapitalMember2021-11-300000022444us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-11-300000022444us-gaap:RetainedEarningsMember2021-11-300000022444us-gaap:TreasuryStockMember2021-11-300000022444us-gaap:NoncontrollingInterestMember2021-11-3000000224442021-11-300000022444us-gaap:RetainedEarningsMember2021-12-012022-02-280000022444us-gaap:TreasuryStockMember2021-12-012022-02-280000022444us-gaap:AdditionalPaidInCapitalMember2021-12-012022-02-280000022444us-gaap:CommonStockMember2022-02-280000022444us-gaap:AdditionalPaidInCapitalMember2022-02-280000022444us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-02-280000022444us-gaap:RetainedEarningsMember2022-02-280000022444us-gaap:TreasuryStockMember2022-02-280000022444us-gaap:NoncontrollingInterestMember2022-02-280000022444us-gaap:CommonStockMember2021-08-310000022444us-gaap:AdditionalPaidInCapitalMember2021-08-310000022444us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-08-310000022444us-gaap:RetainedEarningsMember2021-08-310000022444us-gaap:TreasuryStockMember2021-08-310000022444us-gaap:NoncontrollingInterestMember2021-08-310000022444us-gaap:RetainedEarningsMember2021-09-012022-02-280000022444us-gaap:TreasuryStockMember2021-09-012022-02-280000022444us-gaap:AdditionalPaidInCapitalMember2021-09-012022-02-280000022444us-gaap:CommonStockMember2020-11-300000022444us-gaap:AdditionalPaidInCapitalMember2020-11-300000022444us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-11-300000022444us-gaap:RetainedEarningsMember2020-11-300000022444us-gaap:TreasuryStockMember2020-11-300000022444us-gaap:NoncontrollingInterestMember2020-11-3000000224442020-11-300000022444us-gaap:RetainedEarningsMember2020-12-012021-02-280000022444us-gaap:AdditionalPaidInCapitalMember2020-12-012021-02-280000022444us-gaap:TreasuryStockMember2020-12-012021-02-280000022444us-gaap:NoncontrollingInterestMember2020-12-012021-02-280000022444us-gaap:CommonStockMember2021-02-280000022444us-gaap:AdditionalPaidInCapitalMember2021-02-280000022444us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-280000022444us-gaap:RetainedEarningsMember2021-02-280000022444us-gaap:TreasuryStockMember2021-02-280000022444us-gaap:NoncontrollingInterestMember2021-02-280000022444us-gaap:CommonStockMember2020-08-310000022444us-gaap:AdditionalPaidInCapitalMember2020-08-310000022444us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-08-310000022444us-gaap:RetainedEarningsMember2020-08-310000022444us-gaap:TreasuryStockMember2020-08-310000022444us-gaap:NoncontrollingInterestMember2020-08-310000022444us-gaap:RetainedEarningsMember2020-09-012021-02-280000022444us-gaap:AdditionalPaidInCapitalMember2020-09-012021-02-280000022444us-gaap:TreasuryStockMember2020-09-012021-02-280000022444us-gaap:NoncontrollingInterestMember2020-09-012021-02-280000022444us-gaap:ScenarioPlanMembercmc:TACAcquisitionCorpTensarMember2021-12-032021-12-030000022444cmc:RanchoCucamongaFacilityAndRebarFabricationFacilityMember2021-08-310000022444cmc:RanchoCucamongaFacilityAndRebarFabricationFacilityMember2022-02-280000022444cmc:RanchoCucamongaFacilityAndRebarFabricationFacilityMember2021-12-282021-12-2800000224442021-12-2800000224442022-01-012022-01-310000022444cmc:AssetsCurrentMember2022-02-280000022444us-gaap:AccumulatedTranslationAdjustmentMember2021-11-300000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-11-300000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-11-300000022444us-gaap:AccumulatedTranslationAdjustmentMember2021-12-012022-02-280000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-12-012022-02-280000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-012022-02-280000022444us-gaap:AccumulatedTranslationAdjustmentMember2022-02-280000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-02-280000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-02-280000022444us-gaap:AccumulatedTranslationAdjustmentMember2021-08-310000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-08-310000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-08-310000022444us-gaap:AccumulatedTranslationAdjustmentMember2021-09-012022-02-280000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-09-012022-02-280000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-012022-02-280000022444us-gaap:AccumulatedTranslationAdjustmentMember2020-11-300000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-11-300000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-11-300000022444us-gaap:AccumulatedTranslationAdjustmentMember2020-12-012021-02-280000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-12-012021-02-280000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-012021-02-280000022444us-gaap:AccumulatedTranslationAdjustmentMember2021-02-280000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-02-280000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-02-280000022444us-gaap:AccumulatedTranslationAdjustmentMember2020-08-310000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-08-310000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-08-310000022444us-gaap:AccumulatedTranslationAdjustmentMember2020-09-012021-02-280000022444us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-09-012021-02-280000022444us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-012021-02-280000022444cmc:AmericasFabricationMembercmc:FabricatedProductandInstallationServicesMemberus-gaap:TransferredOverTimeMember2021-12-012022-02-28xbrli:pure0000022444cmc:AmericasFabricationMembercmc:FabricatedProductandInstallationServicesMemberus-gaap:TransferredOverTimeMember2021-09-012022-02-280000022444cmc:AmericasFabricationMembercmc:FabricatedProductandInstallationServicesMemberus-gaap:TransferredOverTimeMember2020-12-012021-02-280000022444cmc:AmericasFabricationMembercmc:FabricatedProductandInstallationServicesMemberus-gaap:TransferredOverTimeMember2020-09-012021-02-280000022444cmc:AmericasFabricationMembercmc:FabricatedProductwithoutInstallationServicesMemberus-gaap:TransferredOverTimeMember2021-12-012022-02-280000022444cmc:AmericasFabricationMembercmc:FabricatedProductwithoutInstallationServicesMemberus-gaap:TransferredOverTimeMember2021-09-012022-02-280000022444cmc:AmericasFabricationMembercmc:FabricatedProductwithoutInstallationServicesMemberus-gaap:TransferredOverTimeMember2020-12-012021-02-280000022444cmc:AmericasFabricationMembercmc:FabricatedProductwithoutInstallationServicesMemberus-gaap:TransferredOverTimeMember2020-09-012021-02-280000022444cmc:AmericasRecyclingMember2022-02-280000022444cmc:InternationalMillsMember2022-02-280000022444cmc:A4375SeniorUnsecuredNotesDueMarch2032Member2022-02-280000022444cmc:A4375SeniorUnsecuredNotesDueMarch2032Member2021-08-310000022444cmc:A300MillionNotesAt3875DueFebruary2031Member2022-02-280000022444cmc:A300MillionNotesAt3875DueFebruary2031Member2021-08-310000022444cmc:A4125SeniorUnsecuredNotesDueJanuary2032Member2022-02-280000022444cmc:A4125SeniorUnsecuredNotesDueJanuary2032Member2021-08-310000022444cmc:A300MillionNotesat5.375dueJuly2027Member2022-02-280000022444cmc:A300MillionNotesat5.375dueJuly2027Member2021-08-310000022444cmc:A330MillionNotesAt4875DueMay2023Member2022-02-280000022444cmc:A330MillionNotesAt4875DueMay2023Member2021-08-310000022444cmc:Series2022BondsDue2047Member2022-02-280000022444cmc:Series2022BondsDue2047Member2021-08-310000022444us-gaap:RevolvingCreditFacilityMembercmc:PolandTermLoanMember2022-02-280000022444us-gaap:RevolvingCreditFacilityMembercmc:PolandTermLoanMember2021-08-310000022444us-gaap:ShortTermDebtMember2022-02-280000022444us-gaap:ShortTermDebtMember2021-08-310000022444cmc:OtherDebtMember2022-02-280000022444cmc:OtherDebtMember2021-08-310000022444cmc:FinanceLeasesMember2022-02-280000022444cmc:FinanceLeasesMember2021-08-310000022444cmc:A4125SeniorUnsecuredNotesDueJanuary2032Member2022-01-310000022444cmc:A4375SeniorUnsecuredNotesDueMarch2032Member2022-01-3100000224442022-01-310000022444cmc:A300MillionNotesat5.375dueJuly2027Member2017-07-310000022444cmc:A300MillionNotesat5.375dueJuly2027Member2021-09-012022-02-280000022444cmc:Series2022BondsDue2047Member2022-02-012022-02-280000022444us-gaap:RevolvingCreditFacilityMembercmc:CreditAgreementMaturingMarch2026Member2021-08-310000022444us-gaap:RevolvingCreditFacilityMembercmc:CreditAgreementMaturingMarch2026Member2022-02-280000022444us-gaap:RevolvingCreditFacilityMembercmc:CreditAgreementMaturingMarch2026Member2021-03-310000022444us-gaap:LetterOfCreditMember2022-02-280000022444us-gaap:LetterOfCreditMember2021-08-310000022444cmc:PolandTermLoanMembercmc:CmcpMember2022-02-28iso4217:PLN0000022444cmc:PolandTermLoanMembercmc:CmcpMember2021-08-310000022444cmc:CmcpMember2022-02-280000022444cmc:CmcpMember2021-08-310000022444cmc:PolandProgramMember2022-02-280000022444cmc:PolandProgramMember2021-08-310000022444us-gaap:ForeignExchangeContractMember2022-02-280000022444us-gaap:CommodityContractMember2022-02-280000022444us-gaap:ForeignExchangeContractMember2021-08-310000022444us-gaap:CommodityContractMember2021-08-310000022444us-gaap:LongMembercmc:AluminumMember2021-09-012022-02-28utr:t0000022444cmc:AluminumMemberus-gaap:ShortMember2021-09-012022-02-280000022444cmc:CopperMemberus-gaap:LongMember2021-09-012022-02-280000022444cmc:CopperMemberus-gaap:ShortMember2021-09-012022-02-280000022444us-gaap:LongMemberus-gaap:ElectricityMember2021-09-012022-02-28utr:MWh0000022444us-gaap:LongMembersrt:NaturalGasReservesMember2021-09-012022-02-28utr:MMBTU0000022444us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2021-12-012022-02-280000022444us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2020-12-012021-02-280000022444us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2021-09-012022-02-280000022444us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2020-09-012021-02-280000022444us-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2021-12-012022-02-280000022444us-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2020-12-012021-02-280000022444us-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2021-09-012022-02-280000022444us-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2020-09-012021-02-280000022444us-gaap:CommodityContractMember2021-12-012022-02-280000022444us-gaap:CommodityContractMember2020-12-012021-02-280000022444us-gaap:CommodityContractMember2021-09-012022-02-280000022444us-gaap:CommodityContractMember2020-09-012021-02-28cmc:levels0000022444us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-02-280000022444us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-02-280000022444us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-02-280000022444us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-02-280000022444us-gaap:CommodityMemberus-gaap:FairValueMeasurementsRecurringMember2022-02-280000022444us-gaap:CommodityMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-02-280000022444us-gaap:CommodityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-02-280000022444us-gaap:CommodityMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-02-280000022444us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeMember2022-02-280000022444us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeMember2022-02-280000022444us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeMemberus-gaap:FairValueInputsLevel2Member2022-02-280000022444us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeMember2022-02-280000022444us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-08-310000022444us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-08-310000022444us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-08-310000022444us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-08-310000022444us-gaap:CommodityMemberus-gaap:FairValueMeasurementsRecurringMember2021-08-310000022444us-gaap:CommodityMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-08-310000022444us-gaap:CommodityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-08-310000022444us-gaap:CommodityMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-08-310000022444us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeMember2021-08-310000022444us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeMember2021-08-310000022444us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeMemberus-gaap:FairValueInputsLevel2Member2021-08-310000022444us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeMember2021-08-310000022444us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CommodityContractMember2022-02-280000022444us-gaap:FairValueInputsLevel3Membersrt:MaximumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CommodityContractMember2022-02-280000022444us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CommodityContractMember2022-02-280000022444us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CommodityContractMember2021-02-280000022444us-gaap:FairValueInputsLevel3Membersrt:MaximumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CommodityContractMember2021-02-280000022444us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CommodityContractMember2021-02-280000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2021-11-300000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2021-12-012022-02-280000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2022-02-280000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2021-08-310000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2021-09-012022-02-280000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2020-11-300000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2020-12-012021-02-280000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2021-02-280000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2020-08-310000022444us-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2020-09-012021-02-280000022444cmc:A4375SeniorUnsecuredNotesDueMarch2032Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-02-280000022444cmc:A4375SeniorUnsecuredNotesDueMarch2032Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310000022444cmc:A300MillionNotesAt3875DueFebruary2031Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-02-280000022444cmc:A300MillionNotesAt3875DueFebruary2031Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310000022444cmc:A4125SeniorUnsecuredNotesDueJanuary2032Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-02-280000022444cmc:A4125SeniorUnsecuredNotesDueJanuary2032Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310000022444us-gaap:FairValueInputsLevel2Membercmc:A300MillionNotesat5.375dueJuly2027Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-02-280000022444us-gaap:FairValueInputsLevel2Membercmc:A300MillionNotesat5.375dueJuly2027Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310000022444cmc:A330MillionNotesAt4875DueMay2023Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-02-280000022444cmc:A330MillionNotesAt4875DueMay2023Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310000022444cmc:Series2022BondsDue2047Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-02-280000022444cmc:Series2022BondsDue2047Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310000022444cmc:PolandTermLoanMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-02-280000022444cmc:PolandTermLoanMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310000022444us-gaap:ShortTermDebtMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310000022444cmc:RSUsAndPSUsMember2021-09-012022-02-280000022444cmc:RSUsAndPSUsMember2020-09-012021-02-280000022444us-gaap:PhantomShareUnitsPSUsMember2021-09-012022-02-280000022444us-gaap:PhantomShareUnitsPSUsMember2020-09-012021-02-280000022444us-gaap:PhantomShareUnitsPSUsMember2022-02-2800000224442019-12-012020-02-2900000224442021-10-310000022444cmc:CerclaSitesMember2022-02-280000022444cmc:CerclaSitesMember2021-08-31cmc:segments0000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMember2021-12-012022-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMemberus-gaap:SegmentContinuingOperationsMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMember2021-09-012022-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMemberus-gaap:SegmentContinuingOperationsMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2022-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMember2022-02-280000022444us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2022-02-280000022444us-gaap:OperatingSegmentsMemberus-gaap:SegmentContinuingOperationsMember2022-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMember2020-12-012021-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMemberus-gaap:SegmentContinuingOperationsMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMemberus-gaap:SegmentContinuingOperationsMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2020-09-012021-05-310000022444us-gaap:OperatingSegmentsMembersrt:EuropeMember2020-09-012021-05-310000022444us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2020-09-012021-05-310000022444us-gaap:OperatingSegmentsMemberus-gaap:SegmentContinuingOperationsMember2020-09-012021-05-310000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2021-08-310000022444us-gaap:OperatingSegmentsMembersrt:EuropeMember2021-08-310000022444us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2021-08-310000022444us-gaap:OperatingSegmentsMemberus-gaap:SegmentContinuingOperationsMember2021-08-310000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMembersrt:NorthAmericaMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMembersrt:EuropeMember2021-12-012022-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMember2021-12-012022-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2021-12-012022-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2021-12-012022-02-280000022444us-gaap:CorporateMembercmc:SteelProductsMemberus-gaap:OperatingSegmentsMember2021-12-012022-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMember2021-12-012022-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2021-12-012022-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2021-12-012022-02-280000022444us-gaap:CorporateMembercmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMember2021-12-012022-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembercmc:OtherProductMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMembercmc:OtherProductMember2021-12-012022-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:OtherProductMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:OtherProductMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembercmc:UnaffiliatedCustomersMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMembercmc:UnaffiliatedCustomersMember2021-12-012022-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:UnaffiliatedCustomersMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:UnaffiliatedCustomersMember2021-12-012022-02-280000022444us-gaap:MaterialReconcilingItemsMembersrt:NorthAmericaMember2021-12-012022-02-280000022444us-gaap:MaterialReconcilingItemsMembersrt:EuropeMember2021-12-012022-02-280000022444us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateMember2021-12-012022-02-280000022444us-gaap:MaterialReconcilingItemsMember2021-12-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMembersrt:NorthAmericaMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMembersrt:EuropeMember2021-09-012022-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMember2021-09-012022-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2021-09-012022-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2021-09-012022-02-280000022444us-gaap:CorporateMembercmc:SteelProductsMemberus-gaap:OperatingSegmentsMember2021-09-012022-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMember2021-09-012022-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2021-09-012022-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2021-09-012022-02-280000022444us-gaap:CorporateMembercmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMember2021-09-012022-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembercmc:OtherProductMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMembercmc:OtherProductMember2021-09-012022-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:OtherProductMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:OtherProductMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembercmc:UnaffiliatedCustomersMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMembercmc:UnaffiliatedCustomersMember2021-09-012022-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:UnaffiliatedCustomersMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:UnaffiliatedCustomersMember2021-09-012022-02-280000022444us-gaap:MaterialReconcilingItemsMembersrt:NorthAmericaMember2021-09-012022-02-280000022444us-gaap:MaterialReconcilingItemsMembersrt:EuropeMember2021-09-012022-02-280000022444us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateMember2021-09-012022-02-280000022444us-gaap:MaterialReconcilingItemsMember2021-09-012022-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMembersrt:NorthAmericaMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMembersrt:EuropeMember2020-12-012021-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMember2020-12-012021-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2020-12-012021-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2020-12-012021-02-280000022444us-gaap:CorporateMembercmc:SteelProductsMemberus-gaap:OperatingSegmentsMember2020-12-012021-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMember2020-12-012021-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2020-12-012021-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2020-12-012021-02-280000022444us-gaap:CorporateMembercmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMember2020-12-012021-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembercmc:OtherProductMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMembercmc:OtherProductMember2020-12-012021-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:OtherProductMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:OtherProductMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembercmc:UnaffiliatedCustomersMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMembercmc:UnaffiliatedCustomersMember2020-12-012021-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:UnaffiliatedCustomersMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:UnaffiliatedCustomersMember2020-12-012021-02-280000022444us-gaap:MaterialReconcilingItemsMembersrt:NorthAmericaMember2020-12-012021-02-280000022444us-gaap:MaterialReconcilingItemsMembersrt:EuropeMember2020-12-012021-02-280000022444us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateMember2020-12-012021-02-280000022444us-gaap:MaterialReconcilingItemsMember2020-12-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMembersrt:NorthAmericaMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMembersrt:EuropeMember2020-09-012021-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:RawMaterialProductsMember2020-09-012021-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2020-09-012021-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2020-09-012021-02-280000022444us-gaap:CorporateMembercmc:SteelProductsMemberus-gaap:OperatingSegmentsMember2020-09-012021-02-280000022444cmc:SteelProductsMemberus-gaap:OperatingSegmentsMember2020-09-012021-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2020-09-012021-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2020-09-012021-02-280000022444us-gaap:CorporateMembercmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMember2020-09-012021-02-280000022444cmc:DownstreamProductsMemberus-gaap:OperatingSegmentsMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembercmc:OtherProductMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMembercmc:OtherProductMember2020-09-012021-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:OtherProductMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:OtherProductMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembercmc:UnaffiliatedCustomersMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembersrt:EuropeMembercmc:UnaffiliatedCustomersMember2020-09-012021-02-280000022444us-gaap:CorporateMemberus-gaap:OperatingSegmentsMembercmc:UnaffiliatedCustomersMember2020-09-012021-02-280000022444us-gaap:OperatingSegmentsMembercmc:UnaffiliatedCustomersMember2020-09-012021-02-280000022444us-gaap:MaterialReconcilingItemsMembersrt:NorthAmericaMember2020-09-012021-02-280000022444us-gaap:MaterialReconcilingItemsMembersrt:EuropeMember2020-09-012021-02-280000022444us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateMember2020-09-012021-02-280000022444us-gaap:MaterialReconcilingItemsMember2020-09-012021-02-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________
FORM 10-Q 
___________________________________
☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended February 28, 2022
OR
☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to            
Commission file number 1-4304
___________________________________
COMMERCIAL METALS COMPANY
(Exact Name of Registrant as Specified in Its Charter)
cmc-20220228_g1.jpg 
Delaware75-0725338
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification Number)
6565 N. MacArthur Blvd., Irving, Texas 75039
(Address of Principal Executive Offices) (Zip Code)
(214) 689-4300
(Registrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.01 par valueCMCNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 ("Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer ☐
Non-accelerated filer  ☐Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 
Yes  ☐    No  ☒
As of March 22, 2022, 121,495,868 shares of the registrant's common stock, par value $0.01 per share, were outstanding.


COMMERCIAL METALS COMPANY AND SUBSIDIARIES
TABLE OF CONTENTS
 



2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended February 28,Six Months Ended February 28,
(in thousands, except share and per share data)2022202120222021
Net sales$2,008,888 $1,462,270 $3,990,689 $2,854,073 
Costs and operating expenses (income):
Cost of goods sold1,614,965 1,228,343 3,201,375 2,403,162 
Selling, general and administrative expenses127,985 120,829 251,563 234,525 
Loss on debt extinguishment16,052 16,841 16,052 16,841 
Interest expense12,011 14,021 23,046 28,280 
Asset impairments1,228 474 1,228 4,068 
Gain on sale of assets(273,099)(5,412)(274,082)(5,481)
1,499,142 1,375,096 3,219,182 2,681,395 
Earnings from continuing operations before income taxes509,746 87,174 771,507 172,678 
Income taxes126,432 20,941 155,304 42,534 
Earnings from continuing operations383,314 66,233 616,203 130,144 
Earnings from discontinued operations before income taxes— 197 — 447 
Income taxes— 73 — 141 
Earnings from discontinued operations— 124 — 306 
Net earnings$383,314 $66,357 $616,203 $130,450 
Basic earnings per share (1)
Earnings from continuing operations$3.16 $0.55 $5.08 $1.08 
Earnings from discontinued operations— — — — 
Net earnings$3.16 $0.55 $5.08 $1.09 
Diluted earnings per share (1)
Earnings from continuing operations$3.12 $0.54 $5.02 $1.07 
Earnings from discontinued operations— — — — 
Net earnings$3.12 $0.55 $5.02 $1.07 
Average basic shares outstanding121,458,196 120,345,432 121,293,030 120,052,459 
Average diluted shares outstanding122,852,410 121,751,859 122,747,981 121,672,194 
See notes to condensed consolidated financial statements.
 _________________
(1) Earnings Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding.

3
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended February 28,Six Months Ended February 28,
(in thousands)2022202120222021
Net earnings$383,314 $66,357 $616,203 $130,450 
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustment after reclassification(14,461)1,465 (54,149)(6,923)
Derivatives:
Unrealized holding gain
33,197 7,723 55,451 8,887 
Reclassification for realized gain
(5,277)(259)(8,346)(313)
Net unrealized gain on derivatives
27,920 7,464 47,105 8,574 
Defined benefit plans loss after amortization of prior service costs and net actuarial losses(6)(14)(12)(27)
Total other comprehensive income (loss), net of income taxes
13,453 8,915 (7,056)1,624 
Comprehensive income
$396,767 $75,272 $609,147 $132,074 
See notes to condensed consolidated financial statements.
4
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share data)February 28, 2022August 31, 2021
Assets
Current assets:
Cash and cash equivalents$846,587 $497,745 
Restricted cash153,113 3,384 
Accounts receivable (less allowance for doubtful accounts of $5,446 and $5,553)
1,153,868 1,105,580 
Inventories, net1,142,446 935,387 
Prepaid and other current assets192,096 169,649 
Assets held for sale2,138 25,083 
Total current assets3,490,248 2,736,828 
Property, plant and equipment, net1,649,264 1,566,123 
Goodwill65,775 66,137 
Other noncurrent assets298,933 269,583 
Total assets$5,504,220 $4,638,671 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$414,025 $450,723 
Accrued expenses and other payables383,622 475,384 
Current maturities of long-term debt and short-term borrowings27,554 54,366 
Total current liabilities825,201 980,473 
Deferred income taxes146,179 112,067 
Other noncurrent liabilities217,138 235,607 
Long-term debt1,445,755 1,015,415 
Total liabilities2,634,273 2,343,562 
Commitments and contingencies (Note 13)
Stockholders' equity:
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 121,495,868 and 120,586,589 shares
1,290 1,290 
Additional paid-in capital366,162 368,064 
Accumulated other comprehensive loss(91,876)(84,820)
Retained earnings2,745,117 2,162,925 
Less treasury stock 7,564,796 and 8,474,075 shares at cost
(150,978)(152,582)
Stockholders' equity2,869,715 2,294,877 
Stockholders' equity attributable to non-controlling interests232 232 
Total stockholders' equity2,869,947 2,295,109 
Total liabilities and stockholders' equity$5,504,220 $4,638,671 
See notes to condensed consolidated financial statements.
5
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Six Months Ended February 28,
(in thousands)20222021
Cash flows from (used by) operating activities:
Net earnings$616,203 $130,450 
Adjustments to reconcile net earnings to cash flows from (used by) operating activities:
Depreciation and amortization82,360 83,372 
Stock-based compensation25,870 21,758 
Deferred income taxes and other long-term taxes34,980 (8,129)
Loss on debt extinguishment16,052 16,841 
Asset impairments1,228 4,068 
Other835 (105)
Amortization of acquired unfavorable contract backlog— (3,032)
Net gain on disposals of assets and other(274,082)(5,481)
Changes in operating assets and liabilities(449,078)(238,539)
Net cash flows from operating activities
54,368 1,203 
Cash flows from (used by) investing activities:
Proceeds from the sale of property, plant and equipment and other309,563 20,338 
Capital expenditures(191,562)(87,688)
Proceeds from insurance3,081 — 
Net cash flows from (used by) investing activities
121,082 (67,350)
Cash flows from (used by) financing activities:
Proceeds from issuance of long-term debt, net740,403 296,250 
Repayments of long-term debt(313,174)(357,792)
Debt extinguishment costs(13,642)(13,051)
Debt issuance costs(2,977)(1,124)
Proceeds from accounts receivable facilities190,730 8,848 
Repayments under accounts receivable facilities(215,196)(8,848)
Dividends(34,011)(28,833)
Treasury stock acquired(17,010)— 
Stock issued under incentive and purchase plans, net of forfeitures(10,719)(4,536)
Contribution from non-controlling interest— 19 
Net cash flows from (used by) financing activities
324,404 (109,067)
Effect of exchange rate changes on cash(1,283)(419)
Increase (decrease) in cash, restricted cash and cash equivalents
498,571 (175,633)
Cash, restricted cash and cash equivalents at beginning of period501,129 544,964 
Cash, restricted cash and cash equivalents at end of period$999,700 $369,331 
See notes to condensed consolidated financial statements.
Supplemental information:Six Months Ended February 28,
(in thousands)20222021
Cash paid for income taxes$133,194 $48,757 
Cash paid for interest24,916 34,094 
Noncash activities:
Liabilities related to additions of property, plant and equipment35,781 16,252 
Cash and cash equivalents$846,587 $367,347 
Restricted cash153,113 1,984 
Total cash, restricted cash and cash equivalents$999,700 $369,331 
6
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
Three Months Ended February 28, 2022
 Common Stock Treasury Stock 
(in thousands, except share and per share data)Number of
Shares		AmountAdditional Paid-In
Capital		Accumulated
Other Comprehensive
Loss		Retained
Earnings		Number of
Shares		Amount Non-controlling
Interest		Total
Balance, December 1, 2021129,060,664 $1,290 $357,413 $(105,329)$2,378,789 (7,580,725)$(146,206)$232 $2,486,189 
Net earnings383,314 383,314 
Other comprehensive income13,453 13,453 
Dividends ($0.14 per share)
(16,986)(16,986)
Treasury stock acquired(335,500)(11,699)(11,699)
Issuance of stock under incentive and purchase plans, net of forfeitures(1,275)351,429 6,927 5,652 
Stock-based compensation10,024 10,024 
Balance, February 28, 2022129,060,664 $1,290 $366,162 $(91,876)$2,745,117 (7,564,796)$(150,978)$232 $2,869,947 
Six Months Ended February 28, 2022
 Common Stock Treasury Stock 
(in thousands, except share and per share data)Number of
Shares		AmountAdditional Paid-In
Capital		Accumulated
Other Comprehensive
Loss		Retained
Earnings		Number of
Shares		AmountNon-controlling
Interest		Total
Balance, September 1, 2021129,060,664 $1,290 $368,064 $(84,820)$2,162,925 (8,474,075)$(152,582)$232 $2,295,109 
Net earnings616,203 616,203 
Other comprehensive loss(7,056)(7,056)
Dividends ($0.28 per share)
(34,011)(34,011)
Treasury stock acquired(495,000)(17,010)(17,010)
Issuance of stock under incentive and purchase plans, net of forfeitures(29,333)1,404,279 18,614 (10,719)
Stock-based compensation18,340 18,340 
Reclassification of share-based liability awards9,091 9,091 
Balance, February 28, 2022129,060,664 $1,290 $366,162 $(91,876)$2,745,117 (7,564,796)$(150,978)$232 $2,869,947 
7
Three Months Ended February 28, 2021
 Common Stock Treasury Stock 
(in thousands, except share and per share data)Number of
Shares		AmountAdditional Paid-In
Capital		Accumulated
Other Comprehensive
Loss		Retained
Earnings		Number of
Shares		AmountNon-controlling
Interest		Total
Balance, December 1, 2020129,060,664 $1,290 $348,816 $(111,055)$1,857,513 (8,992,643)$(161,877)$212 $1,934,899 
Net earnings66,357 66,357 
Other comprehensive income8,915 8,915 
Dividends ($0.12 per share)
(14,427)(14,427)
Issuance of stock under incentive and purchase plans, net of forfeitures(2,120)440,194 7,925 5,805 
Stock-based compensation7,924 7,924 
Contribution of non-controlling interest19 19 
Balance, February 28, 2021129,060,664 $1,290 $354,620 $(102,140)$1,909,443 (8,552,449)$(153,952)$231 $2,009,492 
Six Months Ended February 28, 2021
 Common Stock Treasury Stock 
(in thousands, except share and per share data)Number of
Shares		AmountAdditional Paid-In
Capital		Accumulated
Other Comprehensive
Loss		Retained
Earnings		Number of
Shares		AmountNon-controlling
Interest		Total
Balance, September 1, 2020129,060,664 $1,290 $358,912 $(103,764)$1,807,826 (9,839,759)$(175,063)$212 $1,889,413 
Net earnings130,450 130,450 
Other comprehensive income1,624 1,624 
Dividends ($0.24 per share)
(28,833)(28,833)
Issuance of stock under incentive and purchase plans, net of forfeitures(25,647)1,287,310 21,111 (4,536)
Stock-based compensation15,935 15,935 
Contribution of non-controlling interest19 19 
Reclassification of share-based liability awards5,420 5,420 
Balance, February 28, 2021129,060,664 $1,290 $354,620 $(102,140)$1,909,443 (8,552,449)$(153,952)$231 $2,009,492 
See notes to condensed consolidated financial statements.

8
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K for the year ended August 31, 2021 (the "2021 Form 10-K") filed by Commercial Metals Company ("CMC," and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission (the "SEC") and include all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheets and the condensed consolidated statements of earnings, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the consolidated financial statements and notes included in the 2021 Form 10-K. The results of operations for the three and six month periods are not necessarily indicative of the results to be expected for the full fiscal year. Any reference in this Form 10-Q to the "corresponding period" relates to the relevant three or six month period ended February 28, 2021.

Any reference in this Form 10-Q to a year refers to the fiscal year ended August 31st of that year, unless otherwise noted.

Recently Issued Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires that an acquirer recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This standard is effective for annual periods beginning after December 15, 2022, including interim periods therein, with early adoption permitted. The guidance will be applied prospectively to acquisitions occurring on or after the effective date. The Company will continue to evaluate the impact of this guidance, which will depend on the contract assets and liabilities acquired in future business combinations.

In November 2021, the Financial Accounting Standards Board issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities About Government Assistance. ASU 2021-10 aims to increase the transparency of government assistance through the disclosure of the types of assistance, an entity's accounting for the assistance and the effect of the assistance on an entity's financial statements. This standard is effective for annual periods beginning after December 15, 2021, with early adoption permitted. The Company will continue to evaluate the impact of this guidance based on government assistance received.
NOTE 2. CHANGES IN BUSINESS

Pending Acquisition

On December 3, 2021, the Company signed a definitive agreement to acquire TAC Acquisition Corp. ("Tensar"), a portfolio company of Castle Harlan Inc.’s fund, Castle Harlan Partners V, L.P., and a leading global provider of engineered solutions for subgrade reinforcement and soil stabilization used in road, infrastructure and commercial construction projects. The transaction is expected to close during the third quarter of 2022, and is subject to the satisfaction or waiver of customary closing conditions, including customary regulatory review. Upon closing, the Company will pay a cash purchase price of approximately $550.0 million, subject to customary purchase price adjustments. The transaction is not contingent on any financing arrangements.

Facility Closure and Disposition

In October 2019, the Company closed the melting operations at its Rancho Cucamonga facility, which was part of the North America segment, and in August 2020, the Company announced plans to sell the facility. Additionally, in September 2021, the Company ceased operations at a rebar fabrication facility adjacent to the Rancho Cucamonga facility. Due to these closures, the Company recorded $5.4 million and $13.4 million of expenses in the three and six months ended February 28, 2021 related to asset impairments, severance, pension curtailment, environmental obligations and vendor agreement terminations. Expenses
9
recorded in the three and six months ended February 28, 2022 were immaterial. The closures did not meet the criteria for discontinued operations.

As of August 31, 2021, the associated assets of the Rancho Cucamonga facility and the adjacent rebar fabrication facility ("the Rancho Cucamonga facilities"), comprised of property, plant and equipment, net, met the criteria for classification as held for sale. As such, the Company classified $24.9 million within assets held for sale in the Company's consolidated balance sheets as of August 31, 2021.

On September 29, 2021, the Company entered into a definitive agreement to sell the assets associated with the Rancho Cucamonga facilities. On December 28, 2021, the sale of the Rancho Cucamonga facilities was completed for gross proceeds of $313.0 million. A portion of the gross proceeds amounting to $39.0 million were set aside in a restricted cash account to facilitate the purchase of like-kind assets. In January 2022, the Company used $7.5 million of the restricted cash on a purchase of a like-kind asset. The remaining balance of $31.5 million was included in restricted cash as of February 28, 2022.
10
NOTE 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables reflect the changes in accumulated other comprehensive income (loss) ("AOCI"):
Three Months Ended February 28, 2022
(in thousands)Foreign Currency TranslationDerivativesDefined Benefit ObligationTotal AOCI
Balance, December 1, 2021$(145,368)$40,966 $(927)$(105,329)
Other comprehensive income (loss) before reclassifications
(14,461)41,044 (8)26,575 
Reclassification for gain (1)
— (6,536)— (6,536)
Income tax (expense) benefit
— (6,588)2 (6,586)
Net other comprehensive income (loss)
(14,461)27,920 (6)13,453 
Balance, February 28, 2022$(159,829)$68,886 $(933)$(91,876)
Six Months Ended February 28, 2022
(in thousands)Foreign Currency TranslationDerivativesDefined Benefit ObligationTotal AOCI
Balance, September 1, 2021$(105,680)$21,781 $(921)$(84,820)
Other comprehensive income (loss) before reclassifications
(54,149)68,518 (16)14,353 
Reclassification for gain (1)
— (10,325)— (10,325)
Income tax (expense) benefit
— (11,088)4 (11,084)
Net other comprehensive income (loss)
(54,149)47,105 (12)(7,056)
Balance, February 28, 2022$(159,829)$68,886 $(933)$(91,876)
Three Months Ended February 28, 2021
(in thousands)Foreign Currency TranslationDerivativesDefined Benefit ObligationTotal AOCI
Balance, December 1, 2020$(96,321)$(10,224)$(4,510)$(111,055)
Other comprehensive income (loss) before reclassifications
1,465 9,535 (14)10,986 
Reclassification for gain (1)
— (320)— (320)
Income tax expense
— (1,751)— (1,751)
Net other comprehensive income (loss)
1,465 7,464 (14)8,915 
Balance, February 28, 2021$(94,856)$(2,760)$(4,524)$(102,140)
Six Months Ended February 28, 2021
(in thousands)Foreign Currency TranslationDerivativesDefined Benefit ObligationTotal AOCI
Balance, September 1, 2020$(87,933)$(11,334)$(4,497)$(103,764)
Other comprehensive income (loss) before reclassifications
(6,923)10,972 (34)4,015 
Reclassification for gain (1)
— (387)— (387)
Income tax (expense) benefit
— (2,011)7 (2,004)
Net other comprehensive income (loss)
(6,923)8,574 (27)1,624 
Balance, February 28, 2021$(94,856)$(2,760)$(4,524)$(102,140)
_________________ 
(1) Reclassifications for gains on derivatives included in net earnings are recorded in cost of goods sold in the condensed consolidated statements of earnings.

11
NOTE 4. REVENUE RECOGNITION

Each fabricated product contract sold by the North America segment represents a single performance obligation. Revenue from contracts where the Company provides fabricated product and installation services is recognized over time using an input measure, and these contracts represented 8% and 9% of net sales in the North America segment in the three and six months ended February 28, 2022, respectively, and 11% and 12% of net sales in the North America segment in the three and six months ended February 28, 2021, respectively. Revenue from contracts where the Company does not provide installation services is recognized over time using an output measure, and these contracts represented 8% and 9% of net sales in the North America segment in the three and six months ended February 28, 2022, respectively, and 9% of net sales in the North America segment in the three and six months ended February 28, 2021. Remaining net sales in the North America segment were recognized at a point in time concurrent with the transfer of control, or as amounts were billed to the customer under an available practical expedient.

The following table provides information about assets and liabilities from contracts with customers:
(in thousands)February 28, 2022August 31, 2021
Contract assets (included in accounts receivable)$61,884 $64,168 
Contract liabilities (included in accrued expenses and other payables)25,302 23,948 

The amount of revenue reclassified from August 31, 2021 contract liabilities during the six months ended February 28, 2022 was approximately $16.8 million.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price of fabricated product contracts where revenue is recognized using an input or output measure for which work has not yet been performed. As of February 28, 2022, $805.9 million was allocated to remaining performance obligations in the North America segment related to those contracts.
NOTE 5. INVENTORIES, NET

The majority of the Company's inventories are in the form of semi-finished and finished goods. Under the Company’s business model, products are sold to external customers in various stages, from semi-finished billets through fabricated steel, leading these categories to be combined. As such, at February 28, 2022 and August 31, 2021, work in process inventories were immaterial. At February 28, 2022 and August 31, 2021, the Company's raw materials inventories were $319.2 million and $286.1 million, respectively.
NOTE 6. GOODWILL AND OTHER INTANGIBLES

Goodwill by reportable segment at February 28, 2022 is detailed in the following table:
(in thousands)North AmericaEuropeConsolidated
Goodwill, gross (1)
$71,941 $4,014 $75,955 
Accumulated impairment (1)
(10,036)(144)(10,180)
Goodwill, net (1)
$61,905 $3,870 $65,775 
_________________ 
(1) The change in balance from August 31, 2021 was immaterial.

The total gross carrying amounts of the Company's intangible assets subject to amortization were $20.2 million and $21.7 million, and the total net carrying amounts were $8.7 million and $10.1 million at February 28, 2022 and August 31, 2021, respectively. These assets were included in other noncurrent assets on the Company's condensed consolidated balance sheets. Amortization expense from continuing operations related to such intangible assets was immaterial for the three and six months ended February 28, 2022 and 2021. Excluding goodwill, the Company did not have any significant intangible assets with indefinite lives at February 28, 2022.

12
NOTE 7. LEASES

The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheets:
(in thousands)Classification in Condensed Consolidated Balance SheetsFebruary 28, 2022August 31, 2021
Assets:
Operating assetsOther noncurrent assets$113,446 $112,202 
Finance assetsProperty, plant and equipment, net54,793 55,308 
Total leased assets$168,239 $167,510 
Liabilities:
Operating lease liabilities:
CurrentAccrued expenses and other payables$28,229 $26,433 
Long-termOther noncurrent liabilities93,272 93,409 
Total operating lease liabilities121,501 119,842 
Finance lease liabilities:
CurrentCurrent maturities of long-term debt and short-term borrowings16,639 16,040 
Long-termLong-term debt33,762 36,104 
Total finance lease liabilities50,401 52,144 
Total lease liabilities$171,902 $171,986 

The components of lease expense were as follows:
Three Months Ended February 28,Six Months Ended February 28,
(in thousands)