SCHN 2017 Annual Report

SCHNITZER STEEL INDUSTRIES, INC. 23 / Schnitzer Steel Industries, Inc. Form 10-K 2017 ITEM 2. PROPERTIES Our facilities and administrative offices by type, including their total acreage, were as follows as of August 31, 2017: Division No. of Facilities Acreage Leased Owned Total Corporate offices – Domestic 1 — — — Auto and Metals Recycling: Domestic: (1) Administrative offices 3 — — — Collection and processing 31 47 445 492 Collection 4 5 14 19 Auto parts stores 49 583 166 749 Non-operating sites (4) 17 47 160 207 Foreign: (2) Collection and processing 3 28 4 32 Collection 1 6 — 6 Auto parts stores 4 50 — 50 Non-operating sites (4) 7 24 — 24 Cascade Scrap and Steel: Domestic: Steel mill and administrative offices 2 — 85 85 Collection and processing 3 — 98 98 Collection 2 — 8 8 Non-operating sites (4) 2 — 50 50 Total company: Domestic 114 682 1,026 1,708 Foreign (2) 15 108 4 112 Total (3) 129 790 1,030 1,820 _____________________________ (1) We jointly own 36 acres in California at three of our sites and 19 acres in Indiana at one of our sites with minority interest partners. (2) All foreign facilities are located in Canada. (3) For long-lived assets by geography, see Note 18 – Segment Information in the Notes to the Consolidated Financial Statements in Part II, Item 8 of this report. (4) Non-operating sites are comprised of owned and leased real properties, some of which are sublet to external parties. We consider all properties, both owned and leased, to be well-maintained, in good operating condition and suitable and adequate to carry on our business. ITEM 3. LEGAL PROCEEDINGS From time to time, we are involved in various litigation matters that arise in the ordinary course of business involving normal and routine claims, including environmental compliance matters. Such proceedings include, but are not limited to, proceedings relating to our status as a potentially responsible party with respect to the Portland Harbor Superfund Site, proceedings relating to other legacy environmental issues, and proceedings arising from accidents involving Company-owned vehicles, including Company tractor trailers. For additional information regarding such matters, see Note 9 – Commitments and Contingencies in the Notes to the Consolidated Financial Statements in Part II, Item 8 of this report. Except as described in such Note, we currently believe that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on our consolidated financial position, results of operations, cash flows or business.