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SALES OF ACCOUNTS RECEIVABLE | 9 Months Ended
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May. 31, 2015
Transfers and Servicing [Abstract] |
Sales of accounts receivable | NOTE 3. SALES OF ACCOUNTS RECEIVABLE The Company has a $200.0 million U.S. sale of accounts receivable program which expires on August 15, 2017. Under the program, CMC contributes, and several of its subsidiaries sell without recourse, certain eligible trade accounts receivable to CMC Receivables, Inc. ("CMCRV"), a wholly owned subsidiary of CMC. CMCRV is structured to be a bankruptcy-remote entity and was formed for the sole purpose of buying and selling trade accounts receivable generated by the Company. CMCRV sells the trade accounts receivable in their entirety to three financial institutions. With the consent of both CMCRV and the program's administrative agent, the amount advanced by the financial institutions can be increased to a maximum of $300.0 million for all trade accounts receivable sold. The remaining portion of the purchase price of the trade accounts receivable takes the form of subordinated notes from the respective financial institutions. These notes will be satisfied from the ultimate collection of the trade accounts receivable after payment of certain fees and other costs. The Company accounts for sales of the trade accounts receivable as true sales, and the trade accounts receivable balances that are sold are removed from the consolidated balance sheets. The cash advances received are reflected as cash provided by operating activities on the Company's consolidated statements of cash flows. Additionally, the U.S. sale of accounts receivable program contains certain cross-default provisions whereby a termination event could occur if the Company defaulted under certain of its credit arrangements. The covenants contained in the receivables purchase agreement are consistent with the credit facility described in Note 7, Credit Arrangements. At May 31, 2015 and August 31, 2014, under its U.S. sale of accounts receivable program, the Company had sold $343.8 million and $389.6 million of trade accounts receivable, respectively, to the financial institutions. At May 31, 2015 and August 31, 2014, the Company had $15.0 million and $55.0 million in advance payments outstanding on the sale of its trade accounts receivable, respectively. In addition to the U.S. sale of accounts receivable program described above, the Company's international subsidiaries in Europe and Australia sell trade accounts receivable to financial institutions without recourse. These arrangements constitute true sales, and once the trade accounts receivable are sold, they are no longer available to the Company's creditors in the event of bankruptcy. The European program allows the Company's European subsidiaries to obtain an advance of up to 90% of eligible trade accounts receivable sold under the terms of the arrangement. In October 2014, the Company entered into a first amendment to its Australian program which extended the maturity date to October 2016. Under the Australian program, trade accounts receivable balances are sold to a special purpose vehicle, which in turn sells 100% of the eligible trade accounts receivable of Commercial Metals Pty. Ltd., CMC Steel Distribution Pty. Ltd. and G.A.M. Steel Pty. Ltd. to the financial institution. The financial institution will fund up to A$75.0 million for all trade accounts receivable sold, and the remaining portion of the purchase price of the trade accounts receivable is in the form of a subordinated note from the financial institution. This note will be satisfied from the ultimate collection of the trade accounts receivable after payment of certain fees and other costs. The Company accounts for sales of the trade accounts receivable as true sales, and the trade accounts receivable balances that are sold are removed from the consolidated balance sheets. The cash advances received are reflected as cash provided by operating activities on the Company's consolidated statements of cash flows. At May 31, 2015 and August 31, 2014, under its European and Australian programs, the Company had sold $116.8 million and $147.3 million of trade accounts receivable, respectively, to third-party financial institutions and received advance payments of $35.2 million and $90.5 million, respectively. During the nine months ended May 31, 2015 and 2014, cash proceeds from the U.S. and international sale of accounts receivable programs were $441.6 million and $494.1 million, respectively, and cash payments to the owners of accounts receivable were $539.6 million and $369.7 million, respectively. For a nominal servicing fee, the Company is responsible for servicing the trade accounts receivable for the U.S. and Australian programs. Discounts on U.S. and international sales of trade accounts receivable were $0.4 million and $1.2 million for the three and nine months ended May 31, 2015, respectively, and $1.1 million and $2.6 million for the three and nine months ended May 31, 2014, respectively, and are included in selling, general and administrative expenses in the Company's consolidated statements of earnings. The deferred purchase price on the Company's U.S. and European and the Commercial Metals Pty. Ltd. sale of accounts receivable programs are included in accounts receivable on the Company's consolidated balance sheets. The deferred purchase price on the CMC Steel Distribution Pty. Ltd. and the G.A.M. Steel Pty. Ltd. sale of accounts receivable programs are included in assets of businesses held for sale on the Company's consolidated balance sheets. The following tables summarize the activity of the deferred purchase price receivables for the U.S. and international sale of accounts receivable programs:
|  | Three Months Ended May 31, 2015
(in thousands) |  | Total |  | U.S. |  | Australia* |  | Europe
Beginning balance |  | $ | 386,447 |  |  | $ | 327,009 |  |  | $ | 21,680 |  |  | $ | 37,758 |
Transfers of accounts receivable |  | 892,387 |  |  | 724,309 |  |  | 79,173 |  |  | 88,905 |
Collections |  | (871,953 | ) |  | (727,077 | ) |  | (75,210 | ) |  | (69,666 | )
Ending balance |  | $ | 406,881 |  |  | $ | 324,241 |  |  | $ | 25,643 |  |  | $ | 56,997 |
|  | Nine Months Ended May 31, 2015
(in thousands) |  | Total |  | U.S. |  | Australia* |  | Europe
Beginning balance |  | $ | 385,169 |  |  | $ | 329,797 |  |  | $ | 34,071 |  |  | $ | 21,301 |
Transfers of accounts receivable |  | 2,908,695 |  |  | 2,426,691 |  |  | 233,237 |  |  | 248,767 |
Collections |  | (2,886,983 | ) |  | (2,432,247 | ) |  | (241,665 | ) |  | (213,071 | )
Ending balance |  | $ | 406,881 |  |  | $ | 324,241 |  |  | $ | 25,643 |  |  | $ | 56,997 |
* Includes the sales of accounts receivable activities related to businesses held for sale (transfers of accounts receivable of $46.2 million and $148.3 million, and collections of $47.5 million and $164.0 million for the three and nine months ended May 31, 2015, respectively).
|  | Three Months Ended May 31, 2014
(in thousands) |  | Total |  | U.S. |  | Australia |  | Europe
Beginning balance |  | $ | 313,117 |  |  | $ | 273,714 |  |  | $ | 29,635 |  |  | $ | 9,768 |
Transfers of accounts receivable |  | 1,039,136 |  |  | 808,886 |  |  | 120,350 |  |  | 109,900 |
Collections |  | (989,887 | ) |  | (803,592 | ) |  | (111,791 | ) |  | (74,504 | )
Ending balance |  | $ | 362,366 |  |  | $ | 279,008 |  |  | $ | 38,194 |  |  | $ | 45,164 |
|  | Nine Months Ended May 31, 2014
(in thousands) |  | Total |  | U.S. |  | Australia |  | Europe
Beginning balance |  | $ | 453,252 |  |  | $ | 358,822 |  |  | $ | 64,996 |  |  | $ | 29,434 |
Transfers of accounts receivable |  | 3,115,437 |  |  | 2,423,990 |  |  | 374,170 |  |  | 317,277 |
Collections |  | (3,134,011 | ) |  | (2,503,804 | ) |  | (328,660 | ) |  | (301,547 | )
Program termination |  | (72,312 | ) |  | — |  |  | (72,312 | ) |  | — |
Ending balance |  | $ | 362,366 |  |  | $ | 279,008 |  |  | $ | 38,194 |  |  | $ | 45,164 |

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=13989330&loc=d3e107207-111719 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122596-111746 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122739-111746 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122625-111746 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7519067&loc=SL6226446-111709 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=13989330&loc=d3e107314-111719 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7519067&loc=SL6226443-111709 + Details
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