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Notes Payable and Long-Term Debt | 12 Months Ended
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Aug. 31, 2014
Debt Disclosure [Abstract] |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with our debt covenants as of August 31, 2014. Notes Payable Notes payable as of August 31, 2014 and 2013, consisted of the following:
|  | Weighted-average Interest Rate |  |  |  |
|  | 2014 |  | 2013 |  | 2014 |  | 2013
|  |  |  |  |  | (Dollars in thousands)
Notes payable (a) |  | 1.69% |  | 2.00% |  | $ | 840,699 |  |  | $ | 521,864 |
CHS Capital notes payable (b) |  | 1.07% |  | 1.23% |  | 318,774 |  |  | 367,448 |
Total notes payable |  | $ | 1,159,473 |  |  | $ | 889,312 |
_______________________________________
(a) | Our primary committed line of credit is a $2.5 billion five-year, unsecured revolving credit facility expiring in June 2018, with a syndication of domestic and international banks, with no amounts outstanding as of August 31, 2014. In October 2013, we entered into a three-year $250.0 million committed revolving credit facility for CHS Agronegocio Industria e Comercio Ltda (CHS Agronegocio) to provide financing for its working capital needs arising from its purchases and sales of grains, fertilizers and other agricultural products. As of August 31, 2014 the full $250.0 million is outstanding.
Our wholly-owned subsidiaries, CHS Europe S.a.r.l and CHS Agronegocio, have uncommitted lines of credit to finance their normal trading activities with $327.3 million outstanding as of August 31, 2014. In addition, other international subsidiaries had lines of credit totaling $263.1 million outstanding as of August 31, 2014, of which $39.0 million was collateralized. We have two commercial paper programs totaling up to $125.0 million with two banks participating in the revolving credit facilities. Terms of our credit facilities allow a maximum usage of $200.0 million to pay principal under any commercial paper facility. On August 31, 2014 we had no commercial paper outstanding. Miscellaneous short-term notes payable totaled $0.3 million as of August 31, 2014.
(b) | Cofina Funding, LLC (Cofina Funding), a wholly-owned subsidiary of CHS Capital, has available credit totaling $350.0 million as of August 31, 2014, under note purchase agreements with various purchasers, through the issuance of short-term notes payable. CHS Capital sells eligible commercial loans receivable it has originated to Cofina Funding, which are then pledged as collateral under the note purchase agreements. The notes payable issued by Cofina Funding bear interest at variable rates based on commercial paper with a weighted average rate of 1.05% as of August 31, 2014. There were no borrowings by Cofina Funding utilizing the issuance of commercial paper under the note purchase agreements as of August 31, 2014.
CHS Capital has available credit under master participation agreements with numerous counterparties. Borrowings under these agreements are accounted for as secured borrowings and bear interest at variable rates ranging from 1.81% to 2.66% as of August 31, 2014. As of August 31, 2014, the total funding commitment under these agreements was $164.5 million, of which $17.6 million was borrowed. CHS Capital sells loan commitments it has originated to ProPartners Financial (ProPartners) on a recourse basis. The total capacity for commitments under the ProPartners program is $300.0 million. The total outstanding commitments under the program totaled $102.8 million as of August 31, 2014, of which $64.6 million was borrowed under these commitments with an interest rate of 1.58%. CHS Capital borrows funds under short-term notes issued as part of a surplus funds program. Borrowings under this program are unsecured and bear interest at variable rates ranging from 0.10% to 0.90% as of August 31, 2014, and are due upon demand. Borrowings under these notes totaled $236.6 million as of August 31, 2014. Long-Term Debt Long-term debt as of August 31, 2014 and 2013 consisted of the following:
|  |  | 2014 |  | 2013
|  |  | (Dollars in thousands)
5.59% unsecured revolving term loans from cooperative and other banks, due in equal installments beginning in 2013 through 2018 |  | $ | 105,000 |  |  | $ | 135,000 |
6.18% unsecured notes $400 million face amount, due in equal installments beginning in 2014 through 2018 |  | 320,000 |  |  | 400,000 |
5.60% unsecured notes $60 million face amount, due in equal installments beginning in 2012 through 2018 |  | 32,308 |  |  | 41,539 |
5.25% unsecured notes $125 million face amount, due in equal installments beginning in 2011 through 2015 |  | 25,000 |  |  | 50,000 |
5.78% unsecured notes $50 million face amount, due in equal installments beginning in 2014 through 2018 |  | 40,000 |  |  | 50,000 |
4.00% unsecured notes $100 million face amount, due in equal installments beginning in 2017 through 2021 |  | 100,000 |  |  | 100,000 |
4.08% unsecured notes $130 million face amount, due in 2019 (a) |  | 130,840 |  |  | 130,000 |
4.52% unsecured notes $160 million face amount, due in 2021 |  | 160,000 |  |  | 160,000 |
4.67% unsecured notes $130 million face amount, due in 2023 (a) |  | 133,360 |  |  | 130,000 |
3.85% unsecured notes $80 million face amount, due in 2025 |  | 80,000 |  |  | 80,000 |
3.80% unsecured notes $100 million face amount, due in 2025 |  | 100,000 |  |  | 100,000 |
4.82% unsecured notes $80 million face amount, due in 2026 |  | 80,000 |  |  | 80,000 |
4.71% unsecured notes $100 million face amount, due in 2033 |  | 100,000 |  |  | 100,000 |
Other notes and contracts with interest rates from 1.30% to 15.25% (b) |  | 49,992 |  |  | 50,493 |
Total long-term debt |  | 1,456,500 |  |  | 1,607,032 |
Less current portion |  | 156,836 |  |  | 156,612 |
Long-term portion |  | $ | 1,299,664 |  |  | $ | 1,450,420 |
_______________________________________
(a) | We have entered into interest rate swaps designated as fair value hedging relationships with these notes. Changes in the fair value of the swaps are recorded each period with a corresponding adjustment to the carrying value of the debt. See Note 12, Derivative Financial Instruments and Hedging Activities for more information.
(b) | Other notes and contracts payable of $14.3 million were collateralized on August 31, 2014.
As of August 31, 2014, the carrying value of our long-term debt approximated its fair value, based on quoted market prices of similar debt (a Level 2 classification in the fair value hierarchy). Long-term debt outstanding as of August 31, 2014 has aggregate maturities, excluding fair value adjustments, as follows:
| (Dollars in thousands)
2015 | $ | 156,836 |
2016 | 139,326 |
2017 | 149,852 |
2018 | 162,119 |
2019 | 150,622 |
Thereafter | 693,545 |
Total | $ | 1,452,300 |
Interest, net for the years ended August 31, 2014, 2013 and 2012 was as follows:
| 2014 |  | 2013 |  | 2012
| (Dollars in thousands)
Interest expense | $ | 79,614 |  |  | $ | 99,271 |  |  | $ | 94,090 |
Interest - purchase of NCRA noncontrolling interests | 70,843 |  |  | 149,087 |  |  | 113,184 |
Capitalized interest | (8,528 | ) |  | (10,579 | ) |  | (8,882 | )
Interest income | (6,987 | ) |  | (6,212 | ) |  | (5,129 | )
Interest, net | $ | 134,942 |  |  | $ | 231,567 |  |  | $ | 193,263 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 + Details
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