XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.20.4

Asset-Backed Securitization Programs | 3 Months Ended
--- | ---
Nov. 30, 2020
Transfers and Servicing [Abstract] |
Asset-Backed Securitization Programs | Trade Accounts Receivable Sale Programs The Company regularly sells designated pools of high credit quality trade accounts receivable under uncommitted trade accounts receivable sale programs to unaffiliated financial institutions without recourse. As these accounts receivable are sold without recourse, the Company does not retain the associated risks following the transfer of such accounts receivable to the respective financial institutions. The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the trade accounts receivable sale programs. Servicing fees related to each of the trade accounts receivable sale programs recognized during the three months ended November 30, 2020 and 2019 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. Transfers of the receivables under the trade accounts receivable sale programs are accounted for as sales and, accordingly, net receivables sold under the trade accounts receivable sale programs are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. 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 | Maximum Amount (in millions)(1) |  |  | Type of Facility |  | Expiration Date
A | $ | 600.0 |  |  |  | Uncommitted |  | December 5, 2021(2)
B | $ | 150.0 |  |  |  | Uncommitted |  | November 30, 2021
C | 400.0 |  | CNY |  | Uncommitted |  | August 31, 2023
D | $ | 150.0 |  |  |  | Uncommitted |  | May 4, 2023(3)
E | $ | 150.0 |  |  |  | Uncommitted |  | January 25, 2021(4)
F | $ | 50.0 |  |  |  | Uncommitted |  | February 23, 2023(5)
G | $ | 100.0 |  |  |  | Uncommitted |  | August 10, 2021(6)
H | $ | 100.0 |  |  |  | Uncommitted |  | July 21, 2021(7)
I | $ | 650.0 |  |  |  | Uncommitted |  | December 4, 2021(8)
J | $ | 135.0 |  |  |  | Uncommitted |  | April 11, 2021(9)
K | 100.0 |  | CHF |  | Uncommitted |  | December 5, 2021(2)
(1)Maximum amount of trade accounts receivable that may be sold under a facility at any one time. (2)The program will be automatically extended through December 5, 2025 unless either party provides 30 days’ notice of termination. (3)Any party may elect to terminate the agreement upon 30 days’ prior notice. (4)The program will be automatically extended through January 25, 2023 unless either party provides 30 days’ notice of termination. (5)Any party may elect to terminate the agreement upon 15 days’ prior notice. (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)The program will be automatically extended through December 5, 2024 unless either party provides 30 days’ notice of termination. (9)The program will be automatically extended through April 11, 2025 unless either party provides 30 days’ notice of termination. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions):
| Three months ended |  |
| November 30, 2020 |  | November 30, 2019 |  |  |  |
Trade accounts receivable sold | $ | 1,256 |  |  | $ | 1,962 |  |  |  |  |
Cash proceeds received | $ | 1,255 |  |  | $ | 1,957 |  |  |  |  |
Pre-tax losses on sale of receivables(1) | $ | 1 |  |  | $ | 5 |  |  |  |  |
(1)Recorded to other expense within the Condensed Consolidated Statement of Operations. Asset-Backed Securitization Programs The Company continuously sells designated pools of trade accounts receivable, at a discount, under its foreign asset-backed securitization program and its North American asset-backed securitization program to special purpose entities, which in turn sell certain of the receivables under the foreign program to an unaffiliated financial institution and a conduit administered by an unaffiliated financial institution and certain of the receivables under the North American program to conduits administered by an unaffiliated financial institution on a monthly basis. The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the asset-backed securitization programs. Servicing fees related to each of the asset-backed securitization programs recognized during the three months ended November 30, 2020 and 2019 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. Transfers of the receivables under the asset-backed securitization programs are accounted for as sales and, accordingly, net receivables sold under the asset-backed securitization programs are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. The special purpose entity in the foreign asset-backed securitization program is a separate bankruptcy-remote entity whose assets would be first available to satisfy the creditor claims of the unaffiliated financial institution. The Company is deemed the primary beneficiary of this special purpose entity as the Company has both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive the benefits that could potentially be significant to the entity from the transfer of the trade accounts receivable into the special purpose entity. Accordingly, the special purpose entity associated with the foreign asset-backed securitization program is included in the Company’s Condensed Consolidated Financial Statements. As of November 30, 2020, the special purpose entity has liabilities for which creditors do not have recourse to the general credit of the Company (primary beneficiary). The liabilities cannot exceed the maximum amount of net cash proceeds under the foreign asset-backed securitization program. The foreign asset-backed securitization program contains a guarantee of payment by the special purpose entity, in an amount approximately equal to the net cash proceeds under the program. No liability has been recorded for obligations under the guarantee as of November 30, 2020. The special purpose entity in the North American asset-backed securitization program is a wholly-owned subsidiary of the Company and is included in the Company’s Condensed Consolidated Financial Statements. Certain unsold receivables covering the maximum amount of net cash proceeds available under the North American asset-backed securitization program are pledged as collateral to the unaffiliated financial institution as of November 30, 2020. Following is a summary of the asset-backed securitization programs and key terms:
| Maximum Amount of Net Cash Proceeds (in millions)(1)(2) |  | Expiration Date
North American | $ | 390.0 |  |  | November 22, 2021
Foreign | $ | 400.0 |  |  | September 30, 2021
(1)Maximum amount available at any one time. (2)As of November 30, 2020, the Company had up to $6.3 million in available liquidity under its asset-backed securitization programs. In connection with the asset-backed securitization programs, the Company recognized the following (in millions):
| Three months ended |  |
| November 30, 2020 |  | November 30, 2019 |  |  |  |
Trade accounts receivable sold | $ | 1,173 |  |  | $ | 1,162 |  |  |  |  |
Cash proceeds received(1) | $ | 1,171 |  |  | $ | 1,156 |  |  |  |  |
Pre-tax losses on sale of receivables(2) | $ | 2 |  |  | $ | 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. The asset-backed securitization programs require compliance with several covenants. The North American asset-backed securitization program covenants include compliance with the interest ratio and debt to EBITDA ratio of the Credit Facility. The foreign asset-backed securitization program covenants include limitations on certain corporate actions such as mergers and consolidations. As of November 30, 2020 and August 31, 2020, the Company was in compliance with all covenants under the asset-backed securitization programs.

X
- References No definition available. + Details
Name: | us-gaap_TransfersAndServicingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 1A -Subparagraph (c)(3) -URI http://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 1A -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (b)(2)(ii) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (cc) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719 Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122596-111746 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -Subparagraph (a)(5) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122625-111746 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4D -Subparagraph (c)(3) -URI http://asc.fasb.org/extlink&oid=121570589&loc=SL51823488-111719 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (b)(2)(i) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 4 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122739-111746 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 7 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=109249958&loc=SL34722452-111729 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -Subparagraph (a)(4)(ii) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122625-111746 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122625-111746 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -URI http://asc.fasb.org/topic&trid=2197590 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 4 -Subparagraph (a)(7) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122739-111746 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -Subparagraph (a)(5)(ii) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122596-111746 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122596-111746 + Details
Name: | us-gaap_TransfersAndServicingOfFinancialAssetsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration