ACCOUNTS RECEIVABLE PROGRAMS

12 Months Ended

Aug. 31, 2020

Transfers and Servicing [Abstract]

ACCOUNTS RECEIVABLE PROGRAMS

NOTE 6. ACCOUNTS RECEIVABLE PROGRAMS

As an additional source of liquidity, the Company sells certain trade accounts receivable both in the U.S. and Poland (hereinafter referred to as the "Programs"). Prior to September 1, 2018, the Company accounted for transfers of the trade accounts receivable under the Programs as sales of financial assets, and the trade accounts receivable balances sold were removed from the consolidated balance sheets. On September 1, 2018, the Company amended certain terms of the Programs, disqualifying the sale of such receivables from being accounted for as sales of financial assets. For activity in the Programs occurring prior to the September 1, 2018 amendment, disclosures required under ASC 860-20-50 are provided below. See Note 10, Credit Arrangements for further details regarding the Programs after September 1, 2018.

Prior to September 1, 2018, in exchange for trade receivables transferred into the Programs, the Company received either cash (referred to as a cash purchase prior or "CPP") or a deferred purchase price ("DPP"). Upon adoption of ASU 2016-15, the CPP received was reflected as cash provided by operating activities in the Company's consolidated statements of cash flows, and cash received to settle the DPP related to the transfer of receivables was included as part of investing activities in the Company's consolidated statement of cash flows.

(in thousands)	Total		U.S.		Poland
Deferred purchase price
Balance at September 1, 2017	$	215,123	$	135,623	$	79,500
Transfers of trade receivables	2,932,379		2,396,780		535,599
Less: CPP	(2,187,377)		(1,818,781)		(368,596)
Non-cash increase to DPP	745,002		577,999		167,003
Cash collections of DPP	(670,457)		(531,541)		(138,916)
Net repayments (advances)	77,853		90,000		(12,147)
Net collections of DPP	(592,604)		(441,541)		(151,063)
Balance at August 31, 2018	$	367,521	$	272,081	$	95,440

At August 31, 2018, the Company transferred $381.1 million of trade accounts receivable to the financial institutions and had no advance payments outstanding under the U.S. Facility and $12.1 million outstanding under the Poland Facility (as defined in Note 10, Credit Arrangements).