Trade Accounts Receivable Securitization and Sale Programs (Tables)

12 Months Ended

Aug. 31, 2018

Asset Backed Securitization Programs 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	$	200.0	October 20, 2020	⁽²⁾
Foreign	$	400.0	September 30, 2021	⁽³⁾


⁽¹⁾	Maximum amount available at any one time.


⁽²⁾	On October 9, 2018, the North American asset-backed securitization program was terminated and the Company repurchased the outstanding receivables.

⁽³⁾

On September 21, 2018, the foreign asset-backed securitization program terms were amended and the program was extended to September 30, 2021. Under the terms of the amended agreement, the Company continuously sells designated pools of trade accounts receivable to a special purpose entity, which in turn sells a portion of the receivables to an unaffiliated financial institution and a conduit administered by an unaffiliated financial institution. In connection with this amendment, there is no longer a deferred purchase price receivable for the foreign asset-backed securitization program.

Asset Backed Securitization Programs Amounts Recognized

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



	Fiscal Year Ended August 31,
	2018		2017		2016
Eligible trade accounts receivable sold	$	8,386	$	8,878	$	7,870
Cash proceeds received⁽¹⁾	$	7,838	$	8,300	$	7,336
Pre-tax losses on sale of receivables⁽²⁾	$	15	$	9	$	5
Deferred purchase price receivables as of August 31⁽³⁾	$	533	$	569	$	527


⁽¹⁾	Of this amount, $0.0 million, $0.1 million and $8.4 million, respectively, represented new transfers during fiscal years 2018, 2017 and 2016, respectively. The remainder represented proceeds from collections reinvested in revolving-period transfers.


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

⁽³⁾

Recorded initially at fair value as prepaid expenses and other current assets on the 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

Following is a summary of the nine 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	$	875.0		Uncommitted	August 31, 2022	⁽²⁾⁽³⁾
B	$	150.0		Uncommitted	November 30, 2018	⁽⁴⁾
C	800.0		CNY	Uncommitted	February 13, 2019
D	$	100.0		Uncommitted	May 4, 2023	⁽⁵⁾
E	$	50.0		Uncommitted	August 25, 2019
F	$	150.0		Uncommitted	January 25, 2019	⁽⁶⁾
G	$	50.0		Uncommitted	February 23, 2023	⁽³⁾
H	$	100.0		Uncommitted	August 10, 2019	⁽⁷⁾
I	$	100.0		Uncommitted	July 21, 2019	⁽⁸⁾


⁽¹⁾	Maximum amount available at any one time.


⁽²⁾	The maximum amount under the program will reduce to $650.0 million on February 1, 2019.


⁽³⁾	Any party may elect to terminate the agreement upon 15 days prior notice.


⁽⁴⁾	The program will automatically extend for one year at each expiration date unless either party provides 10 days notice of termination.


⁽⁵⁾	Any party may elect to terminate the agreement upon 30 days prior notice.


⁽⁶⁾	The program will be automatically extended through January 25, 2023 unless either party provides 30 days notice of termination.


⁽⁷⁾	The program will be automatically extended through August 10, 2023 unless either party provides 30 days notice of termination.


⁽⁸⁾	The program will be automatically extended through August 21, 2023 unless either party provides 30 days notice of termination.

Trade Accounts Receivable Sale Programs Amounts Recognized

In connection with the trade accounts receivable sale programs, the Company recognized the following for the fiscal years ended August 31 (in millions):



	2018		2017		2016
Trade accounts receivable sold	$	5,480	$	2,968	$	3,651
Cash proceeds received	$	5,463	$	2,962	$	3,647
Loss on sales⁽¹⁾	$	17	$	6	$	4


⁽¹⁾	The resulting losses on the sales of trade accounts receivable during fiscal years 2018, 2017 and 2016 were recorded to other expense within the Consolidated Statements of Operations.