Notes payable and long-term debt outstanding at February 28, 2013 and August 31, 2012, are summarized below (in thousands):


	February 28, 2013		August 31, 2012
7.750% Senior Notes due 2016	$	306,071	$	305,221
8.250% Senior Notes due 2018		398,091		397,903
5.625% Senior Notes due 2020		400,000		400,000
4.700% Senior Notes due 2022		500,000		500,000
Borrowings under credit facilities		100,000		8,000
Borrowings under loans (a)		51,134		56,036
Fair value adjustment related to terminated interest rate swaps on the 7.750% Senior Notes		8,010		9,197

Total notes payable and long-term debt		1,763,306		1,676,357
Less current installments of notes payable and long-term debt		109,598		18,031

Notes payable and long-term debt, less current installments	$	1,653,708	$	1,658,326

(a)

On May 2, 2012, the Company entered into a master lease agreement with a variable interest entity (the “VIE”) whereby it sells to and subsequently leases back from the VIE up to $60.0 million in certain machinery and equipment for a period of up to five years. In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consolidates the financial statements of the VIE and eliminates all intercompany transactions. At February 28, 2013, the VIE had approximately $50.9 million of total assets, of which approximately $49.6 million was comprised of a note receivable due from the Company, and approximately $50.4 million of total liabilities, of which approximately $50.3 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $50.3 million of the $60.0 million debt obligation capacity). The third-party creditors have recourse to the Company’s general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used only to settle the obligations of the VIE.