SCHN 2021 Form 10-K

87 / Schnitzer Steel Industries, Inc. Form 10-K 2021 No common stock equivalent shares were considered antidilutive for the year ended August 31, 2021. Common stock equivalent shares of 629,223 and 92,873 were considered antidilutive and were excluded from the calculation of diluted net income (loss) per share attributable to SSI shareholders for the years ended August 31, 2020 and 2019, respectively. Note 17 - Related Party Transactions The Company purchases recycled metal from one of its joint venture operations at prices that approximate fair market value. These purchases totaled $20 million, $11 million, and $15 million for the years ended August 31, 2021, 2020, and 2019, respectively. Note 18 - Subsequent Events Steel Mill Fire As disclosed in “Accounting for Impacts of Steel Mill Fire” within Note 2 – Summary of Significant Accounting Policies, on May 22, 2021, the Company experienced a fire at its steel mill in McMinnville, Oregon. The Company filed insurance claims for the property that experienced physical loss or damage and business income losses resulting from the matter. During the first quarter of fiscal 2022 through the date of this report, the Company received advance payments from insurance carriers totaling approximately $30 million towards the Company’s claims, and not reflecting any final or full settlement of claims with the carriers. Acquisition of Columbus Recycling On August 12, 2021, the Company entered into a definitive agreement with Columbus Recycling, a leading provider of recycled ferrous and nonferrous metal products and recycling services, to acquire eight metals recycling facilities across several states in the Southeast, including Mississippi, Tennessee, and Kentucky. The transaction closed on October 1, 2021, during the first quarter of the Company’s fiscal 2022. The acquired Columbus Recycling operations purchase and process scrap metal from industrial manufacturers, local recycling companies, and individuals, and sell the recycled products to regional foundries and steel mills. Combined with the Company’s twelve existing metals recycling facilities in Georgia, Alabama, and Tennessee, the acquired operations offer additional recycling products, services, and logistics solutions to customers and suppliers across the Southeast. The cash purchase price was approximately $107 million, subject to adjustment for acquired net working capital relative to an agreed-upon benchmark, as well as other adjustments. The Company funded the business acquisition using cash on hand and borrowings under existing credit facilities. Due to the short period between the closing of the acquisition and the issuance of this report, the Company is unable to provide certain disclosures required by U.S. GAAP concerning the acquisition including, but not limited to, the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed and the amount of goodwill remaining after the allocation of the purchase price.

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