Notes Payable and Long-Term Debt

9 Months Ended

May 31, 2021

Debt Disclosure [Abstract]

Notes Payable and Long-Term Debt

Notes Payable and Long-Term Debt

Notes payable and long-term debt outstanding as of May 31, 2021 and August 31, 2020 are summarized below (in thousands): 

	Maturity Date	May 31, 2021		August 31, 2020
4.700% Senior Notes	Sep 15, 2022	$	499,150	$	498,659
4.900% Senior Notes	Jul 14, 2023	299,482		299,300
3.950% Senior Notes	Jan 12, 2028	495,902		495,440
3.600% Senior Notes	Jan 15, 2030	495,146		494,756
3.000% Senior Notes	Jan 15, 2031	590,944		590,162
1.700% Senior Notes (1)	Apr 15, 2026	495,560		—
Borrowings under credit facilities (2)(3)	Jan 22, 2024 and Jan 22, 2026	—		—
Borrowings under loans (1)	Jun 23, 2021	50,583		350,165
Total notes payable and long-term debt		2,926,767		2,728,482
Less current installments of notes payable and long-term debt		50,168		50,194
Notes payable and long-term debt, less current installments		$	2,876,599	$	2,678,288

(1)On April 14, 2021, the Company issued $500.0 million of publicly registered 1.700% Senior Notes due 2026 (the “1.700% Senior Notes”). The Company used the net proceeds for general corporate purposes, including repayment of the prior $300.0 million Term Loan Facility.

(2)On April 28, 2021, the Company entered into an amendment (the “Amendment”) to its senior unsecured credit agreement dated as of January 22, 2020 (the “Credit Facility”). The Amendment, among other things, (i) increased the commitments available under the three-year revolving credit facility (the “Three-Year Revolving Credit Facility”) from $700.0 million to $1.2 billion, (ii) instituted certain sustainability-linked adjustments to the interest rates applicable to borrowings under the Credit Facility and (iii) extended the termination date of the Three-Year Revolving Credit Facility to January 22, 2024, and of the Five-Year Revolving Credit Facility of $2.0 billion to January 22, 2026.

(3)As of May 31, 2021, the Company has $3.8 billion in available unused borrowing capacity under its revolving credit facilities. 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.

Debt Covenants

Borrowings under the Company’s debt agreements are subject to various covenants that limit the Company’s ability to: incur additional indebtedness, sell assets, effect mergers and certain transactions, and effect certain transactions with subsidiaries and affiliates. In addition, the revolving credit facilities and the 4.900% Senior Notes contain debt leverage and interest coverage covenants. The Company is also subject to certain covenants requiring the Company to offer to repurchase the 4.700%, 4.900%, 3.950%, 3.600%, 3.000% or 1.700% Senior Notes upon a change of control. As of May 31, 2021 and August 31, 2020, the Company was in compliance with its debt covenants.

Fair Value

Refer to Note 16 – “Fair Value Measurements” for the estimated fair values of the Company’s notes payable and long-term debt.