Notes Payable and Long-Term Debt (Tables)

12 Months Ended

Aug. 31, 2020

Schedule of Notes Payable and Long-Term Debt

Notes payable and long-term debt outstanding as of August 31, 2020 and 2019 are summarized below (in thousands):



	Maturity Date	August 31, 2020		August 31, 2019
5.625% Senior Notes⁽¹⁾⁽²⁾	Dec 15, 2020	—		398,886
4.700% Senior Notes⁽¹⁾⁽²⁾	Sep 15, 2022	498,659		498,004
4.900% Senior Notes⁽¹⁾	Jul 14, 2023	299,300		299,057
3.950% Senior Notes⁽¹⁾⁽²⁾	Jan 12, 2028	495,440		494,825
3.600% Senior Notes^(1)(2)(3)	Jan 15, 2030	494,756		—
3.000% Senior Notes^(1)(2)(4)	Jan 15, 2031	590,162		—
Borrowings under credit facilities^(5)(6)(7)	Apr 23, 2021, Jan 22, 2023 and Jan 22, 2025	—		—
Borrowings under loans⁽⁵⁾	Jan 22, 2025	350,165		805,693
Total notes payable and long-term debt		2,728,482		2,496,465
Less current installments of notes payable and long-term debt		50,194		375,181
Notes payable and long-term debt, less current installments		$	2,678,288	$	2,121,284


⁽¹⁾	The notes are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs.


⁽²⁾	The Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations.


⁽³⁾	On January 15, 2020, the Company issued $500.0 million of publicly registered 3.600% Senior Notes due 2030 (the “3.600% Senior Notes”). The net proceeds from the offering were used for the repayment of term loan indebtedness.


⁽⁴⁾	On July 13, 2020, the Company issued $600.0 million of publicly registered 3.000% Senior Notes due 2031 (the “3.000% Senior Notes”). The net proceeds from the offering were used for general corporate purposes, including to redeem the $400.0 million aggregate principal amount of the Company’s 5.625% Senior Notes due 2020 and pay the applicable “make-whole” premium.

⁽⁵⁾

On January 22, 2020, the Company entered into a senior unsecured credit agreement which provides for: (i) a Revolving Credit Facility in the initial amount of $2.7 billion, of which $700.0 million expires on January 22, 2023 and $2.0 billion expires on January 22, 2025 and (ii) a $300.0 million Term Loan Facility which expires on January 22, 2025, (collectively the “Credit Facility”). Interest and fees on the Credit Facility advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor’s Ratings Service, Moody’s Investors Service and Fitch Ratings. In connection with the Company’s entry into the Credit Facility, the Company terminated the Company’s amended and restated five-year credit agreement dated November 8, 2017 and the credit agreement dated August 24, 2018.

During the fiscal year ended August 31, 2020, the interest rates on the Revolving Credit Facility ranged from 1.2% to 4.3% and the Term Loan Facility ranged from 1.6% to 2.9%. Interest is charged at a rate equal to (a) for the Revolving Credit Facility, either 0.000% to 0.450% above the base rate or 0.975% to 1.450% above the Eurocurrency rate and (b) for the Term Loan Facility, either 0.125% to 0.750% above the base rate or 1.125% to 1.750% above the Eurocurrency rate. The base rate represents the greatest of: (i) Citibank, N.A.’s prime rate, (ii) 0.50% above the federal funds rate, and (iii) 1.0% above one-month LIBOR, but not less than zero. The Eurocurrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit.

Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs.

⁽⁶⁾

On April 24, 2020, the Company entered into an unsecured 364-day revolving credit agreement up to an initial aggregate amount of $375.0 million, which was increased to $425.0 million on May 29, 2020 (the “364-Day Revolving Credit Agreement”). The 364-Day Revolving Credit Agreement expires on April 23, 2021. Interest and fees on the 364-Day Revolving Credit Agreement advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor’s Ratings Service, Moody’s Investors Service and Fitch Ratings.

As of August 31, 2020, no draws were made on the 364-Day Revolving Credit Agreement. Interest is charged at a rate equal to either (i) 0.450%, 0.525% or 0.800% above the base rate or (ii) 1.450%, 1.525% or 1.800% above the Eurodollar rate. The base rate represents the greatest of: (i) Mizuho’s base rate, (ii) 0.50% above the federal funds rate, and (iii) 1.0% above one-month LIBOR, subject to a floor of 0.75%. The Eurodollar rate represents adjusted LIBOR for the applicable interest period, subject to a floor of 0.75%. Fees include a facility fee based on the revolving credit commitments of the lenders.

⁽⁷⁾

As of August 31, 2020, the Company has $3.7 billion in available unused borrowing capacity under its revolving credit facilities. The Revolving Credit Facility under the Credit Facility acts as the back-up facility for commercial paper outstanding, if any. The Company has a borrowing capacity of up to $1.8 billion under its commercial paper program.

Schedule of Debt Maturities

Debt maturities as of August 31, 2020 are as follows (in thousands):



Fiscal Year Ended August 31,
2021	$	50,194
2022	7,672
2023	820,589
2024	30,130
2025	239,537
Thereafter	1,580,360
Total	$	2,728,482