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SALES OF ACCOUNTS RECEIVABLE | 9 Months Ended
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May 31, 2017
Transfers and Servicing [Abstract] |
Sales of accounts receivable | NOTE 4. SALES OF ACCOUNTS RECEIVABLE During the fourth quarter of fiscal 2016, CMC entered into a fifth amended $200.0 million U.S. sale of trade accounts receivable program which expires on August 15, 2019. 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 formed for the sole purpose of buying and selling trade accounts receivable generated by CMC. CMCRV sells the trade accounts receivable in their entirety to two financial institutions. Under the amended U.S. sale of trade accounts receivable program, 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 trade accounts receivable program contains certain cross-default provisions whereby a termination event could occur if the Company defaults under certain of its credit arrangements. The covenants contained in the receivables purchase agreement are consistent with the Credit Agreement described in Note 7, Credit Arrangements. At May 31, 2017 and August 31, 2016, under its U.S. sale of trade accounts receivable program, the Company had sold $307.3 million and $215.9 million of trade accounts receivable, respectively, to the financial institutions, with no advance payments outstanding. In addition to the U.S. sale of trade accounts receivable program described above, the Company's international subsidiaries in Poland and Australia have sold 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 and are removed from the consolidated balance sheets. The Polish program has a facility limit of 220.0 million Polish zloty ($59.1 million as of May 31, 2017) and allows the Company's Polish subsidiaries to obtain an advance of up to 90% of eligible trade accounts receivable sold under the terms of the arrangement. Under the Polish and Australian programs, the cash advances received were reflected as cash provided by operating activities on the Company's unaudited condensed consolidated statements of cash flows. In October 2016, the Company's existing Australian program expired, and the Company did not enter into a new program. At May 31, 2017, under its Polish program, the Company had sold $64.2 million of trade accounts receivable to the third-party financial institution. At August 31, 2016, under its Polish and Australian programs, the Company had sold $85.7 million of trade accounts receivable to third-party financial institutions. At May 31, 2017 and August 31, 2016, $3.9 million and $8.3 million in advance payments had been received, respectively. During the nine months ended May 31, 2017 and 2016, cash proceeds from the U.S. and international sale of trade accounts receivable programs were $246.0 million and $280.7 million, respectively, and cash payments to the owners of trade accounts receivable were $250.3 million and $279.2 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 $0.2 million and $0.7 million for the three and nine months ended May 31, 2017, respectively, and $0.4 million and $1.2 million for the three and nine months ended May 31, 2016, respectively, and are included in selling, general and administrative expenses in the Company's unaudited condensed consolidated statements of earnings. As of May 31, 2017 and August 31, 2016, the deferred purchase price on the Company's U.S. and international sale of trade accounts receivable programs is included in accounts receivable on the Company's unaudited condensed consolidated balance sheets. The following tables summarize the activity of the deferred purchase price receivables for the U.S. and international sale of trade accounts receivable programs.
|  | Three Months Ended May 31, 2017
(in thousands) |  | Total |  | U.S. |  | Poland
Beginning balance |  | $ | 312,446 |  |  | $ | 258,719 |  |  | $ | 53,727 |
Transfers of accounts receivable |  | 777,104 |  |  | 671,429 |  |  | 105,675 |
Collections |  | (725,336 | ) |  | (626,182 | ) |  | (99,154 | )
Ending balance |  | $ | 364,214 |  |  | $ | 303,966 |  |  | $ | 60,248 |
|  | Nine Months Ended May 31, 2017
(in thousands) |  | Total |  | U.S. |  | Australia* |  | Poland
Beginning balance |  | $ | 289,748 |  |  | $ | 212,762 |  |  | $ | 26,662 |  |  | $ | 50,324 |
Transfers of accounts receivable |  | 1,977,546 |  |  | 1,702,584 |  |  | 16,914 |  |  | 258,048 |
Collections |  | (1,869,163 | ) |  | (1,611,380 | ) |  | (9,659 | ) |  | (248,124 | )
Program termination |  | (33,917 | ) |  | — |  |  | (33,917 | ) |  | — |
Ending balance |  | $ | 364,214 |  |  | $ | 303,966 |  |  | $ | — |  |  | $ | 60,248 |
_________________ * Includes collections of $3.7 million and program termination of $1.6 million related to discontinued operations and businesses sold.
|  | Three Months Ended May 31, 2016
(in thousands) |  | Total |  | U.S. |  | Australia** |  | Poland
Beginning balance |  | $ | 231,874 |  |  | $ | 193,035 |  |  | $ | 13,383 |  |  | $ | 25,456 |
Transfers of accounts receivable |  | 636,929 |  |  | 513,169 |  |  | 47,110 |  |  | 76,650 |
Collections |  | (608,292 | ) |  | (498,529 | ) |  | (41,522 | ) |  | (68,241 | )
Ending balance |  | $ | 260,511 |  |  | $ | 207,675 |  |  | $ | 18,971 |  |  | $ | 33,865 |
_________________ ** Includes transfers of accounts receivable of $13.6 million and collections of $12.3 million related to discontinued operations and businesses held for sale.
|  | Nine Months Ended May 31, 2016
(in thousands) |  | Total |  | U.S. |  | Australia*** |  | Poland
Beginning balance |  | $ | 339,547 |  |  | $ | 269,778 |  |  | $ | 18,038 |  |  | $ | 51,731 |
Transfers of accounts receivable |  | 1,763,122 |  |  | 1,432,592 |  |  | 130,440 |  |  | 200,090 |
Collections |  | (1,842,158 | ) |  | (1,494,695 | ) |  | (129,507 | ) |  | (217,956 | )
Ending balance |  | $ | 260,511 |  |  | $ | 207,675 |  |  | $ | 18,971 |  |  | $ | 33,865 |
_________________ *** Includes transfers of accounts receivable of $37.0 million and collections of $49.1 million related to discontinued operations and businesses held for sale.

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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=64830801&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=68078379&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=68078379&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=68078379&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=65883692&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=64830801&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=65883692&loc=SL6226443-111709 + Details
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