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Notes Payable, Long-Term Debt and Capital Lease Obligations | 9 Months Ended
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May 31, 2018
Debt Disclosure [Abstract] |
Notes Payable, Long-Term Debt and Capital Lease Obligations | Notes Payable, Long-Term Debt and Capital Lease Obligations Notes payable, long-term debt and capital lease obligations outstanding as of May 31, 2018 and August 31, 2017 are summarized below (in thousands):
|  | Maturity Date |  | May 31, 2018 |  | August 31, 2017
8.250% Senior Notes(1)(2)(3) |  | Mar 15, 2018 |  | $ | — |  |  | $ | 399,506 |
5.625% Senior Notes(1)(2) |  | Dec 15, 2020 |  | 397,772 |  |  | 397,104 |
4.700% Senior Notes(1)(2) |  | Sep 15, 2022 |  | 497,187 |  |  | 496,696 |
4.900% Senior Notes(1) |  | Jul 14, 2023 |  | 298,753 |  |  | 298,571 |
3.950% Senior Notes(1)(2)(3) |  | Jan 12, 2028 |  | 494,092 |  |  | — |
Borrowings under credit facilities(4) |  | Nov 8, 2022 |  | 247,000 |  |  | — |
Borrowings under loans(4) |  | Nov 8, 2022 |  | 487,016 |  |  | 458,395 |
Capital lease obligations |  |  |  | 26,813 |  |  | 27,818 |
Total notes payable, long-term debt and capital lease obligations |  |  |  | 2,448,633 |  |  | 2,078,090 |
Less current installments of notes payable, long-term debt and capital lease obligations |  |  |  | 273,500 |  |  | 445,498 |
Notes payable, long-term debt and capital lease obligations, less current installments |  |  |  | $ | 2,175,133 |  |  | $ | 1,632,592 |
(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) | During the second quarter of fiscal year 2018, the Company issued $500.0 million of publicly registered 3.950% Senior Notes due 2028 (the "3.950% Senior Notes"). The net proceeds from the offering were used for general corporate purposes, including to redeem $400.0 million of the Company's outstanding 8.250% Senior Notes due 2018 and pay related costs and a "make-whole" premium.
(4) | On November 8, 2017, the Company entered into an amended and restated senior unsecured five-year credit agreement. The credit agreement provides for: (i) the Revolving Credit Facility in the initial amount of $1.8 billion, which may, subject to the lenders’ discretion, be increased up to $2.3 billion and (ii) a $500.0 million Term Loan Facility (collectively the “Credit Facility”). The Credit Facility expires on November 8, 2022. The Revolving Credit Facility is subject to two whole or partial one-year extensions, at the lenders’ discretion. 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.
During the nine months ended May 31, 2018, the interest rates on the Revolving Credit Facility ranged from 2.4% to 4.4% and the interest rates on the Term Loan Facility ranged from 2.6% to 3.3%. Interest is charged at a rate equal to (a) for the Revolving Credit Facility, either 0.000% to 0.575% above the base rate or 0.975% to 1.575% above the Eurocurrency rate and (b) for the Term Loan Facility, either 0.125% to 0.875% above the base rate or 1.125% to 1.875% above the Eurocurrency rate. The base rate represents the greatest of: (i) Citibank, N.A.’s base 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. As of May 31, 2018, the Company has $1.9 billion in available unused borrowing capacity under its revolving credit facilities. 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 Facility and 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 5.625%, 4.700%, 4.900% or 3.950% Senior Notes upon a change of control. As of May 31, 2018 and August 31, 2017, the Company was in compliance with its debt covenants. Fair Value The estimated fair values of the Company’s publicly traded debt, including the 5.625%, 4.700% and 3.950% Senior Notes, were approximately $419.5 million, $514.1 million and $481.7 million, respectively, as of May 31, 2018. The fair value estimates are based upon observable market data (Level 2 criteria). The estimated fair value of the Company’s private debt, the 4.900% Senior Notes, was approximately $306.5 million, as of May 31, 2018. This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows (Level 3 criteria). The carrying amounts of borrowings under credit facilities and under loans approximate fair value as interest rates on these instruments approximate current market rates.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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