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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 1 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-->
<!-- xbrl,ns -->
<!-- xbrl,nx -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="left">
</div>
<div align="center" style="font-size: 10pt"><b></b></div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 1 — QUARTERLY FINANCIAL DATA</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying unaudited consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States on a basis consistent with that used
in Commercial Metals Company’s (the “Company” or “CMC”) Annual Report on Form 10-K filed with the
Securities and Exchange Commission (“SEC”) for the year ended August 31, 2010, and include all
normal recurring adjustments necessary to present fairly the consolidated balance sheets and
statements of operations, cash flows and stockholders’ equity for the periods indicated. These
notes should be read in conjunction with such Form 10-K. The results of operations for the six
month period are not necessarily indicative of the results to be expected for a full year.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 2 — ACCOUNTING POLICIES</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Recently Adopted Accounting Pronouncements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In the first quarter of 2011, the Company adopted accounting guidance related to the accounting for
transfers of financial assets. The guidance clarifies the determination of a transferor’s
continuing involvement in a transferred financial asset and limits the circumstances in which a
financial asset should be removed from the balance sheet when the transferor has not transferred
the entire original financial asset.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In the first quarter of 2011, the Company adopted accounting guidance related to the accounting for
variable interest entities (“VIE”). The guidance requires a qualitative analysis to determine
whether the interest in a VIE gives it a controlling financial interest and requires ongoing
reassessments of whether an entity is the primary beneficiary of a VIE. The adoption had no impact
on the Company’s consolidated financial statements.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - us-gaap:TransfersAndServicingOfFinancialAssetsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 3 — SALES OF ACCOUNTS RECEIVABLE</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s existing accounts receivable securitization agreement of $100 million expired on
January 31, 2011. On April 5, 2011, the Company entered into a $100 million accounts receivable
sale agreement. See note 17, Subsequent Events, for more information.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s accounts receivable securitization program was used as a short-term
financing alternative. Under this program, the Company and several of its subsidiaries periodically
sold certain eligible trade accounts receivable to the Company’s wholly-owned consolidated special
purpose subsidiary (“CMCRV”). CMCRV is structured to be a bankruptcy-remote entity and was formed
for the sole purpose of buying and selling receivables generated by the Company. The Company,
irrevocably and without recourse, transferred all eligible trade accounts receivable to CMCRV.
Depending on the Company’s level of financing needs, CMCRV would sell an undivided percentage
ownership interest in the pool of receivables to affiliates of third party financial institutions.
At August 31, 2010, accounts receivable of $190 million had been sold to CMCRV. The Company’s
undivided interest in these receivables (representing the Company’s retained interest) was 100% at
August 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In addition to the securitization program described above, the Company’s international subsidiaries
in Europe and Australia periodically sell accounts receivable without recourse. These arrangements
constitute true sales, and once the accounts are sold, they are no longer available to satisfy the
Company’s creditors in the event of bankruptcy. Uncollected accounts receivable sold under these
arrangements and removed from the consolidated balance sheets were $139.0 million and $103.9
million at February 28, 2011 and August 31, 2010, respectively. The Australian program contains
financial covenants in which the subsidiary must meet certain coverage and tangible net worth
levels, as defined. At February 28, 2011, the Australian subsidiary was in compliance with these
covenants.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the six months ended February 28, 2011 and 2010, proceeds from the sales of receivables were
$499.8 million and $309.4 million, respectively, and cash payments to the owners of receivables
were $464.7 million and $322.9 million, respectively. Discounts on sales of accounts receivable
were $2.1 million and $1.7 million for the six months ended February 28, 2011 and 2010,
respectively. These discounts primarily represented the costs of funds and were included in
selling, general and administrative expenses.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:InventoryDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 4 — INVENTORIES</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Inventories are stated at the lower of cost or market. Inventory cost for most domestic inventories
is determined by the last-in, first-out method (“LIFO”). LIFO inventory reserves were $291.7
million and $230.3 million at February 28, 2011 and August 31, 2010, respectively. Inventory cost
for international inventories and the remaining domestic inventories are determined by the
first-in, first-out method (“FIFO”). The majority of the Company’s inventories are in the form of
finished goods, with minimal work in process. At February 28,
2011 and August 31, 2010, $130.1
million and $59.1 million, respectively, were in raw materials.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company tests for impairment of goodwill by estimating the fair value of each reporting unit
compared to its carrying value. The Company’s reporting units are based on its internal reporting
structure and represent an operating segment or a reporting level below an operating segment.
Additionally, the reporting units are aggregated based upon similar economic characteristics,
nature of products and services, nature of production processes, type of customers and distribution
methods. The Company has determined its operating units that have a significant amount of goodwill
to be in the Americas Recycling and Americas Fabrication segments. The Company uses a discounted
cash flow model to calculate the fair value of its reporting units. The model includes a number of
significant assumptions and estimates regarding future cash flows including discount rates,
volumes, prices, capital expenditures and the impact of current market conditions. These estimates
could be materially impacted by adverse changes in market conditions. The Company performs the
goodwill impairment test in the fourth quarter each fiscal year and when changes in circumstances
indicate an impairment event may have occurred.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The total gross carrying amounts of the Company’s intangible assets that were subject to
amortization were $72.7 million and $73.9 million at February 28, 2011 and August 31, 2010,
respectively, and are included in other noncurrent assets. Aggregate amortization expense for
intangible assets for the three months ended February 28, 2011 and 2010 was $2.5 million and $5.6
million, respectively. Aggregate amortization expense for intangible assets for the six months
ended February 28, 2011 and 2010 was $5.0 million and $8.6 million, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 6 — SEVERANCE</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the three and six months ended February 28, 2011, the Company recorded severance costs of
$0.9 million and $1.3 million, respectively. During the three and six months ended February 28,
2010, the Company recorded severance costs of $14.4 million and $16.6 million, respectively. These
severance costs relate to involuntary employee terminations initiated as part of the Company’s
focus on operating expense management and reductions in headcount. Additionally, during the second
quarter of 2010, the Company incurred severance costs associated with exiting the joist and deck
business.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 7 — DISCONTINUED OPERATIONS AND DISPOSITIONS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On February 26, 2010, the Company’s Board of Directors approved a plan to exit the joist and deck
business through the sale of those facilities. The Company determined that the decision to exit
this business met the definition of a discontinued operation. As a result, this business has been
presented as a discontinued operation for all periods. The Company recorded $26.8 million to impair
plant, property and equipment, $4.5 million to write-off intangible assets, $7.4 million of
inventory valuation adjustments and $6.7 million of severance during the second quarter of 2010.
The joist and deck business was in the Americas Fabrication segment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the fourth quarter of 2010, the Company completed the sale of the majority of the deck
assets and during the first quarter of 2011, the Company completed the sale of the majority of the
joist assets resulting in a gain of $1.9 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Various financial information for discontinued operations is as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>February 28,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>August 31,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">1,449</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">10,850</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Noncurrent assets
</div></td>
<td> </td>
<td> </td>
<td align="right">12,125</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,045</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">9,378</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,723</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Noncurrent liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">204</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,815</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,119</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">73,415</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings (loss) before taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(62,356</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">647</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(66,514</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of 2011, CMC Construction Services, a subsidiary of the Company included
in the Americas Fabrication segment, completed the sale of heavy forming and shoring equipment for
approximately $35 million. The Company recorded a loss on sale of approximately $0.5 million in
connection with this transaction.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 8 — CREDIT ARRANGEMENTS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s revolving credit facility of $400 million has a maturity date of November 24, 2012
and includes certain covenants. The Company is required to maintain a minimum interest coverage
ratio of not less than 2.50 to 1.00 for the twelve month cumulative period ended February 28, 2011
and for each fiscal quarter on a rolling twelve month cumulative period thereafter. At February 28,
2011, the Company’s interest coverage ratio was 2.65 to 1.00. The agreement also requires the
Company to maintain a debt to capitalization ratio covenant not greater than 0.60 to 1.00. At
February 28, 2011, the Company’s debt to capitalization ratio was 0.52 to 1.00. The agreement
provides for interest based on LIBOR, Eurodollar or Bank of America’s prime rate. The facility fee
is 60 basis points per annum and no compensating balances are required.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">It is the Company’s policy to maintain contractual bank credit lines equal to 100% of the amount of
the commercial paper program. The Company had $10 million outstanding at February 28, 2011 and
August 31, 2010 under the commercial paper program. There were no amounts outstanding on the
revolving credit facility at February 28, 2011 and August 31, 2010. The availability under the
revolving credit agreement is reduced by the outstanding amount under the commercial paper program.
At February 28, 2011, $390 million was available under the revolving credit agreement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has numerous uncommitted credit facilities available from domestic and international
banks. No commitment fees or compensating balances are required under these credit facilities.
These credit facilities are used, in general, to support import letters of credit, foreign exchange
transactions and short term advances which are priced at market rates.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Long-term debt, including the net effect of interest rate swap revaluation adjustments, is as
follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>August 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">5.625% notes due November 2013 (weighted average rate of 3.5% at February 28, 2011)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">203,758</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">208,253</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">6.50% notes due July 2017
</div></td>
<td> </td>
<td> </td>
<td align="right">400,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">400,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">7.35% notes due August 2018 (weighted average rate of 5.5% at February 28, 2011)
</div></td>
<td> </td>
<td> </td>
<td align="right">502,484</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">524,185</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">CMCZ term note due May 2013
</div></td>
<td> </td>
<td> </td>
<td align="right">62,803</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">69,716</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">CMCS financing agreement
</div></td>
<td> </td>
<td> </td>
<td align="right">20,705</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,006</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other, including equipment notes
</div></td>
<td> </td>
<td> </td>
<td align="right">6,342</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,710</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">1,196,092</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,227,870</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less current maturities
</div></td>
<td> </td>
<td> </td>
<td align="right">36,569</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,588</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,159,523</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,197,282</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Interest on the notes, except for the CMC Zawiercie (“CMCZ”) note, is payable semiannually.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On March 23, 2010, the Company entered into two interest rate swap transactions (“Swap
Transactions”). The Swap Transactions were designated as fair value hedges at inception and convert
all fixed rate interest to floating rate interest on the Company’s 5.625% notes due 2013 and $300
million on its fixed rate 7.35% notes due 2018. Swap Transactions with regard to the 5.625% notes
and the 7.35% notes have notional amounts of $200 million and $300 million and termination dates of
November 15, 2013 and August 15, 2018, respectively. The Swap Transactions costs are based on the
floating LIBOR plus 303 basis points with respect to the 5.625% notes and LIBOR plus 367 basis
points with respect to the 7.35% notes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">CMCZ has a five year term note of PLN 180 million ($62.8 million) with a group of four banks. The
term note is used to finance operating expenses of CMCZ and the development of a rolling mill. The
note has scheduled principal and interest payments in fifteen equal quarterly installments which
began in November 2009 with the final installment in May 2013. The weighted average interest rate
at February 28, 2011 was 6.4%. The term note contains four financial covenants for CMCZ. At
February 28, 2011, CMCZ was not in compliance with one of the financial covenants which resulted in
a guarantee by Commercial Metals Company continuing to be
effective. As a result of the guarantee, the financial covenant requirements became void; however,
all other terms of the loan remain in
effect, including the payment schedule. The guarantee will
cease to be effective when CMCZ is in compliance with the financial covenant for two consecutive
quarters.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">CMC Sisak (“CMCS”) has a five year financing agreement of EUR 40 million ($55.2 million) which
allows for disbursements as funds are needed. The loan is intended to be used for capital
expenditures and other uses. At February 28, 2011, EUR 15.0 million ($20.7 million) was outstanding
under this note. The note has scheduled principal and interest payments in seven semiannual
installments beginning in July 2011 and ending in July 2014. The weighted average interest rate at
February 28, 2011 was 5.0%.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Interest of $0.4 million and $3.2 million was capitalized in the cost of property, plant and
equipment constructed for the six months ended February 28, 2011 and 2010, respectively. Interest
of $36.6 million and $42.6 million was paid for the six months ended February 28, 2011 and 2010,
respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 9 — DERIVATIVES AND RISK MANAGEMENT</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s worldwide operations and product lines expose it to risks from fluctuations in metals
commodity prices, foreign currency exchange rates, natural gas prices and interest rates. The
objective of the Company’s risk management program is to mitigate these risks using derivative
instruments. The Company enters into metal commodity futures and forward contracts to mitigate the
risk of unanticipated declines in gross margin due to the volatility of the commodities’ prices,
enters into foreign currency forward contracts which match the expected settlements for purchases
and sales denominated in foreign currencies and enters into natural gas forward contracts to
mitigate the risk of unanticipated changes in operating cost due to the volatility of natural gas
prices. When sales commitments to customers include a fixed price freight component, the Company
occasionally enters into freight forward contracts to minimize the effect of the volatility of
ocean freight rates. The Company enters into interest rate swap contracts to maintain a portion of
the Company’s debt obligations at variable interest rates. These interest rate swap contracts,
under which the Company has agreed to pay variable rates of interest and receive fixed rates of
interest, are designated as fair value hedges of fixed rate debt. The Company’s interest rate swap
contract commitments were $500 million as of February 28, 2011.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following tables provide certain information regarding the foreign exchange and commodity
financial instruments discussed above.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Gross foreign currency exchange contract commitments as of February 28, 2011 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="14%"> </td>
<td width="5%"> </td>
<td width="13%"> </td>
<td width="1%"> </td>
<td width="13%"> </td>
<td width="10%"> </td>
<td width="22%"> </td>
<td width="5%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="11%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" colspan="5" style="border-bottom: 1px solid #000000"><b>Functional Currency</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="5" style="border-bottom: 1px solid #000000"><b>Contract Currency</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">AUD
</div></td>
<td> </td>
<td> </td>
<td align="right">470</td>
<td> </td>
<td> </td>
<td align="left" valign="top">EUR</td>
<td> </td>
<td> </td>
<td align="right">344</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">AUD
</div></td>
<td> </td>
<td> </td>
<td align="right">429</td>
<td> </td>
<td> </td>
<td align="left" valign="top">NZD</td>
<td> </td>
<td> </td>
<td align="right">577</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">AUD
</div></td>
<td> </td>
<td> </td>
<td align="right">66,783</td>
<td> </td>
<td> </td>
<td align="left" valign="top">USD</td>
<td> </td>
<td> </td>
<td align="right">66,345</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">AUD
</div></td>
<td> </td>
<td> </td>
<td align="right">303</td>
<td> </td>
<td> </td>
<td align="left" valign="top">CNY</td>
<td> </td>
<td> </td>
<td align="right">2,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">EUR
</div></td>
<td> </td>
<td> </td>
<td align="right">1,293</td>
<td> </td>
<td> </td>
<td align="left" valign="top">HRK*</td>
<td> </td>
<td> </td>
<td align="right">9,591</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">EUR
</div></td>
<td> </td>
<td> </td>
<td align="right">15,413</td>
<td> </td>
<td> </td>
<td align="left" valign="top">USD</td>
<td> </td>
<td> </td>
<td align="right">20,995</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">GBP
</div></td>
<td> </td>
<td> </td>
<td align="right">1,059</td>
<td> </td>
<td> </td>
<td align="left" valign="top">EUR</td>
<td> </td>
<td> </td>
<td align="right">1,250</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">GBP
</div></td>
<td> </td>
<td> </td>
<td align="right">12,101</td>
<td> </td>
<td> </td>
<td align="left" valign="top">USD</td>
<td> </td>
<td> </td>
<td align="right">19,244</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">PLN
</div></td>
<td> </td>
<td> </td>
<td align="right">362,168</td>
<td> </td>
<td> </td>
<td align="left" valign="top">EUR</td>
<td> </td>
<td> </td>
<td align="right">91,443</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">PLN
</div></td>
<td> </td>
<td> </td>
<td align="right">101,284</td>
<td> </td>
<td> </td>
<td align="left" valign="top">USD</td>
<td> </td>
<td> </td>
<td align="right">34,474</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">PLN
</div></td>
<td> </td>
<td> </td>
<td align="right">774</td>
<td> </td>
<td> </td>
<td align="left" valign="top">SEK**</td>
<td> </td>
<td> </td>
<td align="right">1,813</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">SGD
</div></td>
<td> </td>
<td> </td>
<td align="right">8,811</td>
<td> </td>
<td> </td>
<td align="left" valign="top">USD</td>
<td> </td>
<td> </td>
<td align="right">6,900</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">USD
</div></td>
<td> </td>
<td> </td>
<td align="right">42,125</td>
<td> </td>
<td> </td>
<td align="left" valign="top">EUR</td>
<td> </td>
<td> </td>
<td align="right">30,663</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">USD
</div></td>
<td> </td>
<td> </td>
<td align="right">27,834</td>
<td> </td>
<td> </td>
<td align="left" valign="top">GBP</td>
<td> </td>
<td> </td>
<td align="right">17,165</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">USD
</div></td>
<td> </td>
<td> </td>
<td align="right">1,166</td>
<td> </td>
<td> </td>
<td align="left" valign="top">JPY</td>
<td> </td>
<td> </td>
<td align="right">97,010</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">USD
</div></td>
<td> </td>
<td> </td>
<td align="right">13,800</td>
<td> </td>
<td> </td>
<td align="left" valign="top">SGD***</td>
<td> </td>
<td> </td>
<td align="right">17,622</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>Croatian kuna</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">**</td>
<td> </td>
<td>Swedish krona</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">***</td>
<td> </td>
<td>Singapore dollar
</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 0pt">
Commodity
contract commitments as of February 28, 2011:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Commodity</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Long/Short</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Aluminum
</div></td>
<td> </td>
<td colspan="3" align="center">Long</td>
<td> </td>
<td colspan="2" align="right">6,525</td>
<td> MT</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Aluminum
</div></td>
<td> </td>
<td colspan="3" align="center">Short</td>
<td> </td>
<td colspan="2" align="right">3,200</td>
<td> MT</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Copper
</div></td>
<td> </td>
<td colspan="3" align="center">Long</td>
<td> </td>
<td colspan="2" align="right">1,632 </td>
<td> MT</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Copper
</div></td>
<td> </td>
<td colspan="3" align="center">Short</td>
<td> </td>
<td colspan="2" align="right">5,659 </td>
<td> MT</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Zinc
</div></td>
<td> </td>
<td colspan="3" align="center">Long</td>
<td> </td>
<td colspan="2" align="right">15 </td>
<td> MT</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Natural Gas
</div></td>
<td> </td>
<td colspan="3" align="center">Long</td>
<td> </td>
<td colspan="2" align="right"><font style="white-space: nowrap">20,000 </font></td>
<td> MMBtu</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><b><b>•</b></b></td>
<td> </td>
<td>MT = Metric Ton</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><b><b>•</b></b></td>
<td> </td>
<td>MMBtu = One million British thermal units</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company designates only those contracts which closely match the terms of the underlying
transaction as hedges for accounting purposes. These hedges resulted in substantially no
ineffectiveness in the statements of operations, and there were no components excluded from the
assessment of hedge effectiveness for the three months and six months ended February 28, 2011 and
2010. Certain of the foreign currency and commodity contracts were not designated as hedges for
accounting purposes, although management believes they are essential economic hedges.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following tables summarize activities related to the Company’s derivative instruments and
hedged (underlying) items recognized within the statements of operations (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="7%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives Not Designated as Hedging</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">Cost of goods sold</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,754</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,924</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(16,040</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,748</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td align="left" valign="top">Net sales</td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(304</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(40</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td align="left" valign="top">Cost of goods sold</td>
<td> </td>
<td> </td>
<td align="right">289</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(469</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">869</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(385</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td align="left" valign="top">SG&A expenses</td>
<td> </td>
<td> </td>
<td align="right">2,485</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,218</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(839</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">37</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss before taxes
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,966</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,479</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(16,014</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,136</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s fair value hedges are designated for accounting purposes with gains and losses on the
hedged (underlying) items offsetting the gain or loss on the related derivative transaction. Hedged
(underlying) items relate to firm commitments on commercial sales and purchases, capital
expenditures and fixed rate debt obligations. As of February 28, 2011, fair value hedge accounting
for interest rate swap contracts increased the carrying value of debt instruments by $6.2 million.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="7%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives Designated as Fair Value Hedging</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">SG&A expenses</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(888</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,646</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(8,775</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,041</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td align="left" valign="top">Interest expense</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,315</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain (loss) before taxes
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(16,203</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,646</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,535</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,041</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Hedged (Underlying) Items Designated as Fair Value Hedging</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Location</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td colspan="3" align="left">Net sales</td>
<td> </td>
<td align="left">$</td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(55</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">49</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="3" align="left">SG&A expenses</td>
<td> </td>
<td> </td>
<td align="right">884</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,587</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">8,732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,035</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td colspan="3" align="left">Interest expense</td>
<td> </td>
<td> </td>
<td align="right">15,314</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,241</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain (loss) before taxes
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,209</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,642</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,540</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,041</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company recognizes the impact of actual and estimated net periodic settlements of current
interest on our active interest rate swaps as adjustments to interest expense. The following table
summarizes the impact of actual and estimated periodic settlements of active swap agreements on the
results of operations:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Hedge Accounting for Interest Rate Swaps</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Reductions to interest expense
from periodic estimated and actual
settlements of active swap agreements*
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3,508</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6,792</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>Amounts represent the net of the Company’s periodic variable-rate interest obligations and
the swap counterparty’s fixed-rate interest obligations. The Company’s variable-rate
obligations are based on a spread from the six-month LIBOR in arrears.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Effective Portion of Derivatives</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Designated as Cash Flow Hedging Instruments</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Recognized in Accumulated</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Other Comprehensive Income (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">355</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">392</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">54</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(60</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">171</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">265</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain (loss), net of taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">509</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(66</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">563</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">319</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Effective Portion of Derivatives</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Designated as Cash Flow Hedging Instruments</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Reclassified from Accumulated</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Other Comprehensive Income (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Location</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="3" align="left">Cost of goods sold</td>
<td> </td>
<td align="left">$</td>
<td align="right">53</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(30</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="left">SG&A expenses</td>
<td> </td>
<td> </td>
<td align="right">33</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(87</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">66</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(117</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="left">Interest expense</td>
<td> </td>
<td> </td>
<td align="right">115</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">115</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">229</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">229</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain, net of taxes
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">201</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">41</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">265</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">97</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s derivative instruments were recorded at their respective fair values as follows on
the consolidated balance sheets (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivative Assets</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>February 28, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>August 31, 2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity — designated
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">393</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">80</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity — not designated
</div></td>
<td> </td>
<td> </td>
<td align="right">2,687</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">911</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange — designated
</div></td>
<td> </td>
<td> </td>
<td align="right">359</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">435</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange — not designated
</div></td>
<td> </td>
<td> </td>
<td align="right">618</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,188</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate — designated
</div></td>
<td> </td>
<td> </td>
<td align="right">11,760</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,173</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term interest rate — designated
</div></td>
<td> </td>
<td> </td>
<td align="right">372</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,265</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative assets (other current assets and other assets)*
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">16,189</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">35,052</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Derivative Liabilities</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>February 28, 2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>August 31, 2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity — designated
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">95</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity — not designated
</div></td>
<td> </td>
<td> </td>
<td align="right">2,819</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,817</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange — designated
</div></td>
<td> </td>
<td> </td>
<td align="right">1,404</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,749</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange — not designated
</div></td>
<td> </td>
<td> </td>
<td align="right">1,766</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,097</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term interest rate — designated
</div></td>
<td> </td>
<td> </td>
<td align="right">5,890</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative liabilities (accrued expenses, other payables and long-term liabilities)*
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,896</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,758</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>Derivative assets and liabilities do not include the hedged (underlying) items designated as
fair value hedges.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of February 28, 2011, all of the Company’s derivative instruments designated to hedge exposure
to the variability in future cash flows of the forecasted transactions will mature within twelve
months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">All of the instruments are highly liquid, and none are entered into for trading purposes.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - us-gaap:FairValueMeasurementInputsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 10 — FAIR VALUE</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has established a fair value hierarchy which prioritizes the inputs to valuation
techniques used to measure fair value into three levels. These levels are determined based on the
lowest level input that is significant to the fair value measurement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes information regarding the Company’s financial assets and financial
liabilities that were measured at fair value on a recurring basis:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements at Reporting Date Using</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Quoted Prices in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Active Markets for</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant Other</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>February 28,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Identical Assets</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Observable Inputs</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unobservable Inputs</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Money market investments
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">228,880</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">228,880</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative assets
</div></td>
<td> </td>
<td> </td>
<td align="right">16,189</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,687</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,502</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonqualified benefit plan assets *
</div></td>
<td> </td>
<td> </td>
<td align="right">54,872</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54,872</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">11,896</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,819</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,077</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonqualified benefit plan liabilities *
</div></td>
<td> </td>
<td> </td>
<td align="right">91,080</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">91,080</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>August 31,</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Money market investments
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">352,881</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">352,881</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative assets
</div></td>
<td> </td>
<td> </td>
<td align="right">35,052</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">911</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,141</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonqualified benefit plan assets *
</div></td>
<td> </td>
<td> </td>
<td align="right">43,681</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43,681</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">5,758</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,817</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,941</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonqualified benefit plan liabilities *
</div></td>
<td> </td>
<td> </td>
<td align="right">86,043</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">86,043</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>The Company provides a nonqualified benefit restoration plan to certain eligible executives
equal to amounts that would have been available under tax qualified ERISA plans but for
limitations of ERISA, tax laws and regulations. Though under no obligation to fund this plan,
the Company has segregated assets in a trust. The plan assets and liabilities consist of
securities included in various mutual funds.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s long-term debt is predominantly publicly held. The fair value was approximately $1.23
billion at February 28, 2011 and $1.29 billion at August 31, 2010. Fair value was determined by
indicated market values.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 11 — INCOME TAXES</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company had net refunds of $75.7 million and paid $8.7 million in income taxes during the six
months ended February 28, 2011 and 2010, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Reconciliations of the United States statutory rates to the Company’s effective tax rates from
continuing operations were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Statutory rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">State and local taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">0.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign rate differential
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(11.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(13.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5.4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase in valuation allowance due to
foreign losses without benefit
(predominately Croatia)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(15.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(11.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(11.7</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Domestic production activity deduction
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">2.7</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1.0</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effective rate from continuing operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">21.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">15.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">11.2</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">19.6</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s effective tax rate from discontinued operations for the three and six months ended
February 28, 2011 was 38.1% and 38.8%, respectively, and for the three and six months ended
February 28, 2010 was 38.9% and 38.8%, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The reserve for unrecognized tax benefits relating to the accounting for uncertainty in income
taxes was $20.4 million, exclusive of interest and penalties, as of February 28, 2011 and August
31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company policy classifies interest recognized on an underpayment of income taxes and any
statutory penalties recognized on a tax position as tax expense and the balances at the end of a
reporting period are recorded as part of the current or non-current reserve for uncertain income
tax positions. For the three and six months ended February 28, 2011, before any tax benefits, the
Company recorded immaterial amounts of accrued interest and penalties on unrecognized tax benefits.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the next twelve months, it is reasonably possible that the statute of limitations may lapse
pertaining to positions taken by the Company in prior year tax returns or that income tax audits in
various taxing jurisdictions could be finalized. As a result, the total amount of unrecognized tax
benefits may decrease, which would reduce the provision for taxes on earnings by an immaterial
amount.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following is a summary of tax years subject to examination:
</div>
<div align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">U.S Federal — 2006 and forward<br />
U.S. States — 2006 and forward<br />
Foreign — 2004 and forward
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Federal tax returns for fiscal years 2006 to 2008 are under examination by the Internal Revenue
Service. However, we believe our recorded tax liabilities as of February 28, 2011 sufficiently
reflect the anticipated outcome of these examinations.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 12 — SHARE-BASED COMPENSATION</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company recognized share-based compensation expense of $3.9 million and $3.2 million for the
three months ended February 28, 2011 and 2010, respectively, and $6.0 million and $5.6 million for
the six months ended February 28, 2011 and 2010, respectively, as a component of selling, general
and administrative expenses. At February 28, 2011, the Company had $23.1 million of total
unrecognized pre-tax compensation cost related to non-vested share-based compensation arrangements,
of which, $15.1 million related to share-based awards granted during the second quarter of 2011.
This cost is expected to be recognized over the next 39 months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Combined information for shares subject to options and stock appreciation rights (“SARs”) for the
six months ended February 28, 2011 were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Price</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Exercise</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Range</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Number</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Price</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Per Share</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">September 1, 2010
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">3,922,016</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23.67</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">7.53 — 35.38</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercisable
</div></td>
<td> </td>
<td> </td>
<td align="right">3,503,681</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23.38</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">7.53 — 35.38</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">112,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16.83</td>
<td> </td>
<td> </td>
<td align="center" colspan="3">16.83</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(791,123</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">7.84</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">7.53 — 13.58</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(36,520</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">33.54</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">24.57 — 35.38</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">February 28, 2011
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">3,206,373</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27.22</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td nowrap="nowrap" align="right">7.78 — 35.38</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercisable
</div></td>
<td> </td>
<td> </td>
<td align="right">2,793,255</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27.24</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">7.78 — 35.38</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Share information for options and SARs at February 28, 2011:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="10%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" colspan="12" style="border-bottom: 1px solid #000000"><b>Outstanding</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Exercisable</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center"><b>Range of</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center"><b>Exercise</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Number</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Contractual</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Exercise</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Number</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Exercise</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Price</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Outstanding</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Life (Yrs.)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Price</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Outstanding</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Price</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">$7.78
</div></td>
<td> </td>
<td> </td>
<td align="right">27,300</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7.78</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,300</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7.78</td>
<td> </td>
</tr>
<tr valign="bottom">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">11.00 — 14.05
</div></td>
<td> </td>
<td> </td>
<td align="right">753,815</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.40</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">690,815</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.25</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">16.83 — 24.71
</div></td>
<td> </td>
<td> </td>
<td align="right">556,742</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22.96</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">444,742</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24.51</td>
<td> </td>
</tr>
<tr valign="bottom">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">31.75 — 35.38
</div></td>
<td> </td>
<td> </td>
<td align="right">1,868,516</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34.76</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,630,398</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34.67</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td style="border-top: 1px solid #000000">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">$7.78 — 35.38
</div></td>
<td> </td>
<td> </td>
<td align="right">3,206,373</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.0</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27.22</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,793,255</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27.24</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td style="border-top: 1px solid #000000">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Of the Company’s previously granted restricted stock awards 1,934 and 19,584 shares vested during
the six months ended February 28, 2011 and February 28, 2010, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the second quarter of 2011, the Compensation Committee (the “Committee”) of the Board of
Directors approved a grant to employees of approximately 670,000 restricted stock units. These
awards vest over a three-year period in increments of one-third per year. The Committee also
approved a grant of performance stock units. The performance awards will vest upon the achievement
of certain target levels of the performance goals and objectives of the Company over the
performance period of approximately three
years. The actual number of performance awards granted
will be based on the level of achievement. Upon achievement of any of the performance goals, the
awards will be paid out 50% in shares of common stock of the Company and 50% in cash. The Company
has accounted for the cash component of the performance award as a liability award and the value
will be adjusted to fair market value each period. All equity awards are valued at the fair market
value at the date of grant. Prior to vesting, the restricted stock unit and the performance stock
unit recipients do not receive an amount equivalent to any dividend declared on the Company’s
common stock.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 13 — STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO CMC</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In calculating earnings (loss) per share, there were no adjustments to net earnings (loss) to
arrive at earnings (loss) for any years presented.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares
outstanding for
basic and diluted
earnings (loss) per
share
</div></td>
<td> </td>
<td> </td>
<td align="right">114,736,984</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">113,275,457</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">114,528,001</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112,885,377</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For the three and six months ended February 28, 2011 and 2010, no stock options, restricted stock
or SARs were included in the calculation of dilutive shares because the Company reported a loss
from continuing operations. All stock options and SARs expire by 2018.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s restricted stock is included in the number of shares of common stock issued and
outstanding, but omitted from the basic earnings (loss) per share calculation until the shares
vest.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company purchased no shares during the first six months of 2011 and had remaining authorization
to purchase 8,259,647 shares of its common stock at February 28, 2011.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 14 — COMMITMENTS AND CONTINGENCIES</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">See Note 12, Commitments and Contingencies, to the consolidated financial statements in the Annual
Report on Form 10-K for the year ended August 31, 2010 relating to environmental and other matters.
There have been no significant changes to the matters noted therein. In the ordinary course of
conducting its business, the Company becomes involved in litigation, administrative proceedings and
governmental investigations, including environmental matters. Management believes that adequate
provisions have been made in the consolidated financial statements for the potential impact of
these issues, and that the outcomes will not significantly impact the results of operations or the
financial position of the Company, although they may have a material impact on earnings (loss) for
a particular quarter.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 15 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 15 — BUSINESS SEGMENTS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s reportable segments are based on strategic business areas, which offer different
products and services. These segments have different lines of management responsibility as each
business requires different marketing strategies and management expertise.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Effective September 1, 2010, the Company’s scrap metal processing facilities which directly support
the domestic mills are included as part of the Americas Mills segment. Prior to September 1, 2010,
these facilities were included as part of the Americas Recycling segment. All prior period
financial information has been recast to the current segment reporting structure.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company structures the business into the following five segments: Americas Recycling, Americas
Mills, Americas Fabrication, International Mills and International Marketing and Distribution. The
Americas Recycling segment consists of the scrap metal processing and sales operations primarily in
Texas, Florida and the southern United States. The Americas Mills segment includes the Company’s
domestic steel mills, including the scrap processing facilities which directly support these mills,
and the copper tube minimill. The copper tube minimill is aggregated with the Company’s steel mills
because it has similar economic characteristics. The
Americas Fabrication segment consists of the Company’s rebar fabrication operations, fence post
manufacturing plants, construction-related and other products facilities. The International Mills
segment includes the minimills in Poland and Croatia, recycling operations in Poland and
fabrication operations in Europe, which have been presented as a separate segment because the
economic characteristics of their markets and the regulatory environment in which they operate are
different from that of the Company’s
domestic mills and rebar fabrication operations. International
Marketing and Distribution includes international operations for the sales, distribution and
processing of steel products, ferrous and nonferrous metals and other industrial products.
Additionally, the International Marketing and Distribution segment includes the Company’s two U.S.
based trading and distribution divisions, CMC Cometals and CMC Cometals Steel (previously CMC
Dallas Trading). The international distribution operations consist only of physical transactions
and not positions taken for speculation. Corporate contains expenses of the Company’s corporate
headquarters and interest expense relating to its long-term public debt and commercial paper
program.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The financial information presented for the Americas Fabrication segment excludes its joist and
deck fabrication operations. This operation has been classified as discontinued operations in the
consolidated statements of operations. See Note 7, Discontinued Operations and Dispositions, for
more detailed information.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company uses adjusted operating profit (loss) to measure segment performance. Intersegment
sales are generally priced at prevailing market prices. Certain corporate administrative expenses
are allocated to segments based upon the nature of the expense. The accounting policies of the
segments are the same as those described in the summary of significant accounting policies. The
following is a summary of certain financial information from continuing operations by reportable
segment:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="31" style="border-bottom: 1px solid #000000"><b>Three Months Ended February 28, 2011</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Americas</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>International</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Marketing</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Recycling</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Mills</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fabrication</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Mills</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Distribution</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net
sales-unaffiliated
customers
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">411,979</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">303,460</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">248,410</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">211,736</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">610,772</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">5,409</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,791,766</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment sales
</div></td>
<td> </td>
<td> </td>
<td align="right">38,583</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">174,461</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,560</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,619</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,903</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(238,126</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net sales
</div></td>
<td> </td>
<td> </td>
<td align="right">450,562</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">477,921</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">251,970</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">221,355</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">622,675</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,409</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(238,126</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,791,766</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjusted operating
profit (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">10,865</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,945</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(49,566</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7,378</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">12,372</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(16,468</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(232</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(39,462</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="31" style="border-bottom: 1px solid #000000"><b>Three Months Ended February 28, 2010</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Americas</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>International</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Marketing</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Recycling</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Mills</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fabrication</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Mills</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Distribution</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net
sales-unaffiliated
customers
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">263,663</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">193,836</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">230,544</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">107,122</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">524,954</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,324</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,322,443</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment sales
</div></td>
<td> </td>
<td> </td>
<td align="right">26,946</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">139,987</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,744</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,139</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,257</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(199,073</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net sales
</div></td>
<td> </td>
<td> </td>
<td align="right">290,609</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">333,823</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">232,288</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">133,261</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">529,211</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,324</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(199,073</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,322,443</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjusted operating
profit (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,834</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(17,860</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(57,317</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(54,396</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">11,079</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(18,960</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6,295</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(137,993</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="31" style="border-bottom: 1px solid #000000"><b>Six Months Ended February 28, 2011</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Americas</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>International</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Marketing</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Recycling</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Mills</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fabrication</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Mills</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Distribution</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net
sales-unaffiliated
customers
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">759,148</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">584,241</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">532,353</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">435,657</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,251,180</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">11,667</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,574,246</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment sales
</div></td>
<td> </td>
<td> </td>
<td align="right">67,209</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">329,077</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,370</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,494</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,401</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(439,551</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net sales
</div></td>
<td> </td>
<td> </td>
<td align="right">826,357</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">913,318</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">539,723</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">454,151</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,268,581</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,667</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(439,551</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,574,246</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjusted operating
profit (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">19,057</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45,088</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(71,574</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(15,044</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">36,610</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(27,071</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">71</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(12,863</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">7,267</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">295</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57,144</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,105</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,485</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">72,296</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td> </td>
<td align="right">301,688</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">648,973</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">602,598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">812,943</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">724,045</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">887,469</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(355,385</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,622,331</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="31" style="border-bottom: 1px solid #000000"><b>Six Months Ended February 28, 2010</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Americas</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>International</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Marketing</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Recycling</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Mills</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fabrication</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Mills</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Distribution</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net
sales-unaffiliated
customers
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">504,161</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">373,452</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">490,985</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">259,244</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,090,976</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">5,883</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,724,701</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment sales
</div></td>
<td> </td>
<td> </td>
<td align="right">51,976</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">267,906</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,776</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57,286</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,321</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(392,265</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net sales
</div></td>
<td> </td>
<td> </td>
<td align="right">556,137</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">641,358</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">494,761</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">316,530</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,102,297</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,883</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(392,265</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,724,701</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjusted operating
profit (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8,044</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(17,879</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(66,233</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(73,488</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">31,217</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(39,164</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">10,961</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(162,630</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">6,961</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">601</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57,144</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71,547</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td> </td>
<td align="right">235,336</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">599,187</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">707,614</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">641,173</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">678,873</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">966,292</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(293,627</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,534,848</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table provides a reconciliation of net loss from continuing operations attributable
to CMC to adjusted operating profit (loss):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loss from continuing operations attributable to CMC
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(46,149</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(135,161</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(45,907</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(163,845</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Noncontrolling interests
</div></td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(91</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">108</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(85</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax benefit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,535</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23,858</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,805</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(40,053</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td> </td>
<td align="right">18,278</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,236</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,603</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39,687</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Discounts on sales of accounts receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">927</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">881</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,666</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjusted operating loss from continuing operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(39,462</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(137,993</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(12,863</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(162,630</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjusted operating profit (loss) from discontinued operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(62,353</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">650</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(66,508</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjusted operating loss
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(39,480</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(200,346</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(12,213</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(229,138</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following represents the Company’s external net sales from continuing operations by major
product and geographic area:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Major product information:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Steel products
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">963,815</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">757,906</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,018,586</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,616,219</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Industrial materials
</div></td>
<td> </td>
<td> </td>
<td align="right">278,062</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">170,060</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">491,908</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354,685</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Non-ferrous scrap
</div></td>
<td> </td>
<td> </td>
<td align="right">254,199</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">160,263</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">474,471</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">310,872</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Ferrous scrap
</div></td>
<td> </td>
<td> </td>
<td align="right">180,968</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">116,651</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">341,387</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">216,752</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Construction materials
</div></td>
<td> </td>
<td> </td>
<td align="right">44,236</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49,816</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">102,463</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">102,317</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Non-ferrous products
</div></td>
<td> </td>
<td> </td>
<td align="right">45,913</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45,717</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90,980</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79,740</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">24,573</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,030</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54,451</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44,116</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,791,766</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,322,443</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,574,246</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,724,701</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Geographic area:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,001,263</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">702,458</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,961,084</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,348,024</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Europe
</div></td>
<td> </td>
<td> </td>
<td align="right">362,724</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">246,177</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">779,583</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">533,628</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Asia
</div></td>
<td> </td>
<td> </td>
<td align="right">159,399</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">210,219</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">372,995</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">477,824</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Australia/New Zealand
</div></td>
<td> </td>
<td> </td>
<td align="right">228,316</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">114,807</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">366,917</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">262,141</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">40,064</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48,782</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93,667</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">103,084</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,791,766</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,322,443</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,574,246</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,724,701</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 16 - us-gaap:RelatedPartyTransactionsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 16 — RELATED PARTY TRANSACTIONS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">One of the Company’s international subsidiaries had a marketing and distribution agreement with a
key supplier of which the Company owns an 11% interest. This marketing and distribution agreement
expired on December 31, 2010. The Company owned a 50% interest in two joint ventures related to
this agreement. During the second quarter of 2011, the Company sold the interest in one
joint venture for approximately $1.7 million resulting in a minimal gain. The interest in the
remaining joint venture is expected to be sold during the third quarter of 2011. The following
presents related party transactions:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>February 28,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Sales
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">131,361</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">138,906</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchases
</div></td>
<td> </td>
<td> </td>
<td align="right">146,407</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">150,314</td>
<td> </td>
</tr>
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>February 28,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>August 31,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accounts receivable
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">2,613</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">10,611</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accounts payable
</div></td>
<td> </td>
<td> </td>
<td align="right">1,075</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,603</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 17 - us-gaap:ScheduleOfSubsequentEventsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 17, SUBSEQUENT EVENTS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On April 5, 2011, the
Company and several of its subsidiaries (together with the Company, the
“Originators”) entered into a two year sale of accounts receivable
program (the “Receivables Program”). Pursuant to the Receivables Program,
the Company periodically contributes and the Originators periodically
sell certain trade accounts receivable (the “Receivables”) to a special
purpose wholly-owned subsidiary of the Company, CMC Receivables, Inc.
(“CMCRV”), in accordance with a Receivables Sale Agreement between the
Originators and CMCRV. CMCRV, in turn, sells the receivables in their
entirety to purchasers (collectively, the “Purchasers”) pursuant to a
Receivables Purchase Agreement between CMCRV, the Company, as servicer,
Wells Fargo Bank, N.A., as administrative agent for the Purchasers, and
the Purchasers. The Company has guaranteed the performance by the
Originators of their obligations under the Receivables Sale Agreement
in favor of CMCRV in accordance with a Performance Undertaking.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company,
as servicer, and the other Originators,
as sub-servicers, retain collection and administrative
responsibilities for the Receivables. The continuation of the
Receivables Program is subject to the performance of certain
obligations and covenants by CMCRV. The maximum facility is
$100 million; however, subject to certain conditions, the
maximum facility may be increased up to $200 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The proceeds
from the Receivables Program will be used to pay transactions costs,
for working capital, and for other corporate purposes.
</div>
</div>
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false
--08-31
Q2
2011
2011-02-28
10-Q
0000022444
115435301
Yes
Large Accelerated Filer
1612607063
COMMERCIAL METALS CO
No
No
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