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CREDIT ARRANGEMENTS | 3 Months Ended
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Nov. 30, 2016
Debt Disclosure [Abstract] |
Credit arrangements | NOTE 7. CREDIT ARRANGEMENTS During the fourth quarter of fiscal 2014, the Company entered into a fourth amended and restated credit agreement (the "Credit Agreement") for a revolving credit facility of $350.0 million with 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 its 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 at both November 30, 2016 and August 31, 2016. The Company had no amounts drawn under the Credit Agreement at November 30, 2016 and August 31, 2016. 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, 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 $150.0 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 London Interbank Offered Rate ("LIBOR"). At November 30, 2016, the Company's interest coverage ratio was 4.84 to 1.00, and the Company's debt to capitalization ratio was 0.44 to 1.00. In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 2023 (the "2023 Notes"). Interest on the 2023 Notes is payable semiannually. In August 2008, the Company issued $500.0 million of 7.35% senior unsecured notes due in 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. In July 2007, the Company issued $400.0 million of 6.50% senior unsecured notes due in 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. 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 November 30, 2016 and August 31, 2016, the unamortized amounts were $9.8 million and $11.6 million, respectively. Amortization of the deferred gain for each of the three months ended November 30, 2016 and 2015 was $1.9 million. At November 30, 2016, the Company was in compliance with all covenants contained in its debt agreements. Long-term debt, including the deferred gain from the termination of the interest rate swaps, was as follows:
(in thousands) |  | Weighted Average Interest Rate as of November 30, 2016 |  | November 30, 2016 |  | August 31, 2016
2023 Notes |  | 4.875% |  | $ | 330,000 |  |  | $ | 330,000 |
2018 Notes |  | 6.40% |  | 407,718 |  |  | 408,874 |
2017 Notes |  | 5.74% |  | 301,858 |  |  | 302,601 |
Other, including equipment notes |  |  |  | 32,437 |  |  | 34,166 |
Total debt |  |  |  | 1,072,013 |  |  | 1,075,641 |
Less debt issuance costs |  |  |  | 3,960 |  |  | 4,224 |
Total amounts outstanding |  |  |  | 1,068,053 |  |  | 1,071,417 |
Less current maturities |  |  |  | 312,892 |  |  | 313,469 |
Long-term debt |  |  |  | $ | 755,161 |  |  | $ | 757,948 |
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), foreign exchange transactions and short-term advances which are priced at market rates. At both November 30, 2016 and August 31, 2016, CMC Poland Sp. z.o.o. ("CMCP") had uncommitted credit facilities with several banks of PLN 175 million ($41.6 million) and PLN 175 million ($44.8 million), respectively. The uncommitted credit facilities as of November 30, 2016 have expiration dates ranging from March 2017 to November 2017, which CMCP intends to renew upon expiration. At November 30, 2016 and August 31, 2016, no amounts were outstanding under these facilities. During the three months ended November 30, 2016 and 2015, CMCP had no borrowings and no repayments under its uncommitted credit facilities. The Company capitalized $1.6 million and $0.5 million of interest in the cost of property, plant and equipment during the three months ended November 30, 2016 and 2015, respectively. Cash paid for interest during the three months ended November 30, 2016 and 2015 was $8.4 million and $9.0 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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