Trade Accounts Receivable Securitization and Sale Programs (Tables)

3 Months Ended

Nov. 30, 2019

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, 2019		November 30, 2018⁽³⁾
Trade accounts receivable sold	$	1,162	$	750
Cash proceeds received⁽¹⁾	$	1,156	$	744
Pre-tax losses on sale of receivables⁽²⁾	$	6	$	6


⁽¹⁾	The amounts primarily represent proceeds from collections reinvested in revolving-period transfers.


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

⁽³⁾

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 which occurred during the first quarter of fiscal year 2019.

Trade Accounts Receivable Sale Programs Key Terms

The following is a summary of the 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⁽¹⁰⁾	Maximum Amount (in millions)⁽¹⁾			Type of Facility	Expiration Date
A	$	800.0		Uncommitted	August 31, 2022⁽²⁾
B	$	150.0		Uncommitted	November 30, 2020⁽³⁾
C	800.0		CNY	Uncommitted	June 30, 2020
D	$	150.0		Uncommitted	May 4, 2023⁽⁴⁾
E	$	50.0		Uncommitted	August 25, 2020
F	$	150.0		Uncommitted	January 25, 2020⁽⁵⁾
G	$	50.0		Uncommitted	February 23, 2023⁽²⁾
H	$	100.0		Uncommitted	August 10, 2020⁽⁶⁾
I	$	100.0		Uncommitted	July 21, 2020⁽⁷⁾
J	$	740.0		Uncommitted	February 28, 2020⁽⁸⁾
K	$	110.0		Uncommitted	April 11, 2020⁽⁹⁾


⁽¹⁾	Maximum amount available at any one time.


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


⁽³⁾	The program will automatically extend for one year at each expiration date unless either party provides 10 days notice of termination.


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


⁽⁷⁾	The program will be automatically extended through August 21, 2023 unless either party provides 30 days notice of termination.


⁽⁸⁾	As of the date of this filing, program J is no longer being utilized as it has been replaced with a new $500.0 million program (see footnote 10 below for details).


⁽⁹⁾	The program will be automatically extended each year through April 11, 2025 unless either party provides 30 days notice of termination.

⁽¹⁰⁾

The Company entered into two new trade accounts receivable sale programs on December 5, 2019 with maximum amounts of $500.0 million and CHF 100.0 million, respectively.

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, 2019		November 30, 2018
Trade accounts receivable sold	$	1,962	$	1,834
Cash proceeds received	$	1,957	$	1,826
Pre-tax losses on sale of receivables⁽¹⁾	$	5	$	8

⁽¹⁾

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