Trade Accounts Receivable Securitization and Sale Programs (Tables)

3 Months Ended

Nov. 30, 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	$	390.0	November 22, 2021
Foreign	$	400.0	September 30, 2021


⁽¹⁾	Maximum amount available at any one time.

Asset-backed securitization programs amounts recognized

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



	Three months ended
	November 30, 2018⁽⁴⁾		November 30, 2017
Trade accounts receivable sold	$	750	$	2,392
Cash proceeds received⁽¹⁾	$	744	$	1,628
Pre-tax losses on sale of receivables⁽²⁾	$	6	$	4
Deferred purchase price receivables as of November 30⁽³⁾	$	—	$	760


⁽¹⁾	For the three months ended November 30, 2018 and 2017, the amount represented proceeds from collections reinvested in revolving-period transfers.


⁽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.


⁽⁴⁾	Excludes $650.3 million of trade accounts receivable sold, $488.1 million of cash and $13.9 million of net cash received prior to the amendment of the foreign asset-backed securitization program and under the previous North American asset-backed securitization program.

Trade accounts receivable sale programs key terms

The 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, 2019⁽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 (in millions):



	Three months ended
	November 30, 2018		November 30, 2017
Trade accounts receivable sold	$	1,834	$	1,095
Cash proceeds received	$	1,826	$	1,092
Pre-tax losses on sale of receivables⁽¹⁾	$	8	$	3


⁽¹⁾	Recorded to other expense within the Condensed Consolidated Statement of Operations.