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CREDIT ARRANGEMENTS | 12 Months Ended
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Aug. 31, 2015
Debt Disclosure [Abstract] |
CREDIT ARRANGEMENTS | NOTE 11. CREDIT ARRANGEMENTS On June 26, 2014, the Company entered into a fourth amended and restated credit agreement (the "Credit Agreement") with a revolving credit facility of $350.0 million and a maturity date of June 26, 2019, replacing the third amended and restated $300.0 million revolving credit facility with a maturity date of December 27, 2016. The maximum availability under the Credit Agreement can be increased to $500.0 million with bank approval. The Company's obligation under its Credit Agreement is secured by its inventory. Consistent with the Company's previous revolving credit facility, the Credit Agreement's capacity includes $50.0 million for the issuance of stand-by letters of credit and was reduced by outstanding stand-by letters of credit which totaled $23.4 million and $28.1 million at August 31, 2015 and 2014, respectively. Under the Credit Agreement, the Company is required to comply with certain financial and non-financial covenants, including covenants to maintain: (i) an interest coverage ratio (consolidated EBITDA to consolidated interest expense, as each is defined in the Credit Agreement) of not less than 2.50 to 1.00 and (ii) a debt to capitalization ratio (consolidated funded debt to total capitalization, as each is defined in the Credit Agreement) that does not exceed 0.60 to 1.00. In addition, beginning on the date three months prior to each maturity date of the Company's 2017 Notes and 2018 Notes and each day thereafter that the 2017 Notes and the 2018 Notes are outstanding, the Company will be required to maintain liquidity of at least $150 million in excess of each of the outstanding aggregate principal amounts of the 2017 Notes and 2018 Notes. Loans under the Credit Agreement bear interest based on the Eurocurrency rate, a base rate, or the LIBOR rate. At August 31, 2015, the Company's interest coverage ratio was 5.76 to 1.00 and the Company's debt to capitalization ratio was 0.49 to 1.00. The Company had no amounts drawn under its revolving credit facilities at August 31, 2015 and 2014. In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due in May 2023 (the "2023 Notes") and received proceeds of $325.0 million, net of underwriting discounts and debt issuance costs. The Company used $205.3 million of the proceeds from the 2023 Notes to purchase all of its outstanding $200.0 million of 5.625% Notes due 2013 (the "2013 Notes"). Interest on these notes is payable semi-annually. The Company is generally not limited under the indenture governing the 2023 Notes in its ability to incur additional indebtedness provided the Company is in compliance with certain restrictive covenants, including restrictions on liens, sale and leaseback transactions, mergers, consolidations and transfers of substantially all of the Company's assets. As a result of redeeming the 2013 Notes, the Company recognized expenses of $4.8 million related to loss on early extinguishment of debt and write-off of unamortized debt issuance costs, discounts and premiums, all of which were included in selling, general and administrative expenses in the consolidated statements of earnings for the year ended August 31, 2013. In August 2008, the Company issued $500.0 million of 7.35% senior unsecured notes due in August 2018 (the "2018 Notes"). In anticipation of the offering, the Company entered into hedge transactions which reduced the Company's effective interest rate on these notes to 6.40% per annum. Interest on these notes is payable semiannually. In July 2007, the Company issued $400.0 million of 6.50% senior unsecured notes due in July 2017 (the "2017 Notes"). In anticipation of the offering, the Company entered into hedge transactions which reduced the Company's effective interest rate on these notes to 5.74% per annum. Interest on these notes is payable semiannually. During fiscal 2012, the Company terminated its existing interest rate swap transactions and received cash proceeds of approximately $52.7 million, net of customary finance charges. The resulting gain was deferred and is being amortized as a reduction to interest expense over the remaining term of the respective debt tranches. At August 31, 2015 and 2014, the unamortized portion was $19.2 million and $26.8 million, respectively. Amortization of the deferred gain was $7.6 million for each of the years ended August 31, 2015 and 2014. Amortization of the deferred gain was $12.5 million for the year ended August 31, 2013. The Company has uncommitted credit facilities available from U.S. and international banks. In general, these credit facilities are used to support trade letters of credit (including accounts payable settled under bankers' acceptances as described in Note 2, Summary of Significant Accounting Policies), foreign exchange transactions and short-term advances which are priced at market rates. Long-term debt, including the deferred gain from the termination of the interest rate swaps, was as follows:
|  | Weighted Average Interest Rate as of August 31, 2015 |  | August 31,
(in thousands) |  |  | 2015 |  | 2014
$400 million notes at 6.50% due July 2017 |  | 5.74% |  | $ | 405,573 |  |  | $ | 408,546 |
$500 million notes at 7.35% due August 2018 |  | 6.40% |  | 513,680 |  |  | 518,305 |
$330 million notes at 4.875% due May 2023 |  | 4.875% |  | 330,000 |  |  | 330,000 |
Other, including equipment notes |  |  |  | 38,739 |  |  | 32,196 |
|  |  |  | 1,287,992 |  |  | 1,289,047 |
Less current maturities |  |  |  | 10,110 |  |  | 8,005 |
|  |  |  | $ | 1,277,882 |  |  | $ | 1,281,042 |
Interest on these notes is payable semiannually. CMC Poland Sp.z.o.o. ("CMCP") has uncommitted credit facilities of $56.9 million with several banks with expiration dates ranging from November 2015 to March 2016. During fiscal 2015, CMCP had total borrowings of $49.6 million and total repayments of $49.6 million under these credit facilities. During fiscal 2014, CMCP had total borrowings of $111.7 million and total repayments of $111.7 million under these credit facilities. At August 31, 2015 and 2014, there were no material amounts outstanding under these credit facilities. The scheduled maturities of the Company's long-term debt are as follows:
Year Ending August 31, |  | (in thousands) |
2016 |  | $ | 10,110 |
2017 |  | 409,870 |
2018 |  | 509,269 |
2019 |  | 6,966 |
2020 |  | 2,443 |
Thereafter |  | 330,080 |
Total excluding deferred gain of interest rate swaps |  | 1,268,738 |
Deferred gain of interest rate swaps |  | 19,254 |
Total long-term debt including current maturities |  | $ | 1,287,992 |
Interest capitalized in the cost of property, plant and equipment constructed in fiscal 2015 and 2014 was not material. Interest of $1.0 million was capitalized in the cost of property, plant and equipment constructed in fiscal 2013. Cash paid for interest for the years ended August 31, 2015, 2014 and 2013 was $86.7 million, $85.6 million and $82.5 million, respectively.

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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 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 + Details
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