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CREDIT ARRANGEMENTS | 12 Months Ended
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Aug. 31, 2016
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. The maximum availability under the Credit Agreement can be increased to $500.0 million with bank approval. The Company's obligation under the Credit Agreement is collateralized by its U.S. inventory. 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 $3.0 million and $23.4 million at August 31, 2016 and 2015, 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, each as defined below, 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, 2016, the Company's interest coverage ratio was 5.00 to 1.00 and the Company's debt to capitalization ratio was 0.44 to 1.00. The Company had no amounts drawn under its revolving credit facilities at August 31, 2016 and 2015. In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 2023 (the "2023 Notes"). Interest on these notes is payable semiannually. In August 2008, the Company issued $500.0 million of 7.35% senior unsecured notes due August 2018 (the "2018 Notes"). During the third quarter of fiscal 2010, the Company entered into hedging 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 February 2016, the Company accepted for purchase approximately $100.2 million of the outstanding principal amount of its 2018 Notes through a cash tender offer. The Company recognized expenses of approximately $6.1 million related to the early extinguishment of this debt, which are included in loss on debt extinguishment in the consolidated statements of earnings for the year ended August 31, 2016. In July 2007, the Company issued $400.0 million of 6.50% senior unsecured notes due July 2017 (the "2017 Notes"). During the third quarter of fiscal 2011, the Company entered into hedging transactions which reduced the Company's effective interest rate on these notes to 5.74% per annum. Interest on these notes is payable semiannually. In February 2016, the Company accepted for purchase $100.0 million of the outstanding principal amount of its 2017 Notes though a cash tender offer. The Company recognized expenses of approximately $5.4 million related to the early extinguishment of this debt, which are included in loss on debt extinguishment in the consolidated statements of earnings for the year ended August 31, 2016. 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, 2016 and 2015, the unamortized portion was $11.6 million and $19.2 million, respectively. Amortization of the deferred gain was $7.6 million for each of the years ended August 31, 2016, 2015 and 2014. 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, 2016 |  | August 31,
(in thousands) |  |  | 2016 |  | 2015
2023 Notes |  | 4.875% |  | $ | 330,000 |  |  | $ | 330,000 |
2018 Notes |  | 6.40% |  | 408,874 |  |  | 513,680 |
2017 Notes |  | 5.74% |  | 302,601 |  |  | 405,573 |
Other, including equipment notes |  |  |  | 34,166 |  |  | 38,739 |
Total debt |  |  |  | 1,075,641 |  |  | 1,287,992 |
Less debt issuance costs |  |  |  | 4,224 |  |  | 5,637 |
Total Amounts Outstanding |  |  |  | 1,071,417 |  |  | 1,282,355 |
Less current maturities |  |  |  | 313,469 |  |  | 10,110 |
Long-Term Debt |  |  |  | $ | 757,948 |  |  | $ | 1,272,245 |
Interest on these notes is payable semiannually. At August 31, 2016 and 2015, CMC Poland Sp. z.o.o. ("CMCP") had uncommitted credit facilities with several banks of PLN 175.0 million ($44.8 million) and PLN 215.0 million ($56.9 million), respectively. As of August 31, 2016, the uncommitted credit facilities have expiration dates ranging from November 2016 to March 2017, which CMCP intends to renew upon expiration. At August 31, 2016, no amounts were outstanding under these facilities. During fiscal 2016, CMCP had no borrowings or repayments under its uncommitted credit facilities. During fiscal 2015, CMCP had total borrowings of $49.6 million and total repayments of $49.6 million under its uncommitted credit facilities. The scheduled maturities of the Company's long-term debt are as follows:
Year Ending August 31, |  | (in thousands) |
2017 |  | $ | 311,094 |
2018 |  | 410,416 |
2019 |  | 8,297 |
2020 |  | 3,478 |
2021 |  | 527 |
Thereafter |  | 330,172 |
Total excluding deferred gain of interest rate swaps |  | 1,063,984 |
Deferred gain of interest rate swaps |  | 11,657 |
Less debt issuance costs |  | 4,224 |
Total long-term debt including current maturities |  | $ | 1,071,417 |
The Company capitalized $3.6 million of interest in the cost of property, plant and equipment during fiscal year 2016, and immaterial amounts during fiscal years 2015 and 2014. Cash paid for interest for the years ended August 31, 2016, 2015 and 2014 was $74.7 million, $86.7 million and $85.6 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 + Details
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