Trade Accounts Receivable Securitization and Sale Programs (Tables)

9 Months Ended

May 31, 2018

Asset-backed securitization programs and key terms

Following is a summary of the asset-backed securitization programs and key terms:



	Maximum Amount of Net Cash Proceeds (in millions)⁽¹⁾		Expiration Date
North American⁽²⁾	$	200.0	October 20, 2020
Foreign⁽³⁾	$	400.0	September 28, 2018


⁽¹⁾	Maximum amount available at any one time.


⁽²⁾	On November 9, 2017, the program was extended to October 20, 2020.


⁽³⁾	On April 19, 2018, the program was extended to September 28, 2018.

Asset-backed securitization programs amounts recognized

In connection with the asset-backed securitization programs, the Company recognized the following (in millions):



	Three months ended				Nine months ended
	May 31, 2018		May 31, 2017		May 31, 2018		May 31, 2017
Eligible trade accounts receivable sold	$	1,913	$	2,069	$	6,362	$	6,568
Cash proceeds received⁽¹⁾	$	1,379	$	1,565	$	5,821	$	6,060
Pre-tax losses on sale of receivables⁽²⁾	$	4	$	3	$	11	$	7
Deferred purchase price receivables as of May 31⁽³⁾	$	530	$	501	$	530	$	501


⁽¹⁾	For the three months and nine months ended May 31, 2018 and 2017, the amount represented proceeds from collections reinvested in revolving-period transfers as there were no new transfers during the period.


⁽²⁾	Recorded to other expense within the Condensed Consolidated Statements of Operations.

⁽³⁾

Recorded initially at fair value as prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets and are valued using unobservable inputs (Level 3 inputs), primarily discounted cash flows, and due to their credit quality and short-term maturity the fair values approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immaterial impact on the fair value calculations.

Trade accounts receivable sale programs key terms

The following is a summary of the seven trade accounts receivable sale programs with unaffiliated financial institutions where the Company may elect to sell receivables and the unaffiliated financial institution may elect to purchase, at a discount, on an ongoing basis:



Program	Maximum Amount (in millions)⁽¹⁾			Type of Facility	Expiration Date
A	$	650.0		Uncommitted	August 31, 2022	⁽²⁾
B	$	150.0		Uncommitted	August 31, 2018
C	800.0		CNY	Uncommitted	February 13, 2019
D	$	100.0		Uncommitted	May 4, 2023	⁽³⁾⁽⁴⁾
E	$	50.0		Uncommitted	August 25, 2018
F	$	150.0		Uncommitted	January 25, 2019	⁽⁵⁾⁽⁶⁾
G	$	50.0		Uncommitted	February 23, 2023	⁽²⁾⁽⁶⁾


⁽¹⁾	Maximum amount available at any one time.


⁽²⁾	Any party may elect to terminate the agreement upon 15 days prior notice.


⁽³⁾	On May 4, 2018, the program was extended to May 4, 2023.


⁽⁴⁾	Any party may elect to terminate the agreement upon 30 days prior notice.


⁽⁵⁾	The program will be automatically extended through January 25, 2023 unless either party provides 30 days notice of termination.


⁽⁶⁾	Maximum amount was increased on April 24, 2018.

Trade accounts receivable sale programs amounts recognized

In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions):



	Three months ended				Nine months ended
	May 31, 2018		May 31, 2017		May 31, 2018		May 31, 2017
Trade accounts receivable sold⁽¹⁾	$	1,301	$	539	$	4,035	$	2,194
Cash proceeds received	$	1,296	$	538	$	4,025	$	2,190


⁽¹⁾	The resulting losses on the sales of trade accounts receivable during the three months and nine months ended May 31, 2018 and 2017 were not material and were recorded to other expense within the Condensed Consolidated Statements of Operations.