SCHN 2017 Annual Report

SCHNITZER STEEL INDUSTRIES, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 63 / Schnitzer Steel Industries, Inc. Form 10-K 2017 See Note 17 - Related Party Transactions for further detail on transactions with joint ventures. Asset Impairment Charges (Recoveries), net The following asset impairment charges and subsequent recoveries, excluding goodwill impairment charges discussed below in this Note, were recorded in the Consolidated Statements of Operations (in thousands): Year Ended August 31, 2017 2016 2015 Reported within other asset impairment charges (recoveries), net: Auto and Metals Recycling Long-lived assets $ — $ 7,336 $ 41,676 Accelerated depreciation — 6,208 — Investments in joint ventures 860 — — Assets held for sale (1,044) 1,659 2,558 Other assets — 1,208 140 Total Auto and Metals Recycling (184) 16,411 44,374 Cascade Steel and Scrap Accelerated depreciation 401 — — Investments in joint ventures (934) 1,968 — Supplies inventory — 2,224 — Total Cascade Steel and Scrap (533) 4,192 — Corporate - Other assets — 79 745 (717) 20,682 45,119 Reported within restructuring charges and other exit-related activities: Long-lived assets — 468 — Accelerated depreciation 96 630 3,836 Supplies inventory — 1,047 — Other assets 62 35 — Exit-related gains (565) (1,337) — (407) 843 3,836 Reported within discontinued operations: Long-lived assets — 673 2,666 Accelerated depreciation — 274 — — 947 2,666 Total $ (1,124) $ 22,472 $ 51,621 Goodwill and Other Intangible Assets, net Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company evaluates goodwill for impairment annually on July 1 and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired. Impairment of goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is required to be identified as a reporting unit if the component is a business for which discrete financial information is available and segment management regularly reviews its operating results.