Receivables

6 Months Ended

Feb. 28, 2021


	February 28, 2021		August 31, 2020
	(Dollars in thousands)
Trade accounts receivable	$	1,650,031	$	1,476,585
CHS Capital short-term notes receivable	442,172		563,934
Other	392,769		491,068
Gross receivables	2,484,972		2,531,587
Less: allowances and reserves	148,052		165,540
Total receivables	$	2,336,920	$	2,366,047

Receivables are composed of trade accounts receivable, short-term notes receivable in our wholly-owned subsidiary, CHS Capital, LLC ("CHS Capital"), and other receivables, less an allowance for expected credit losses. The allowance for expected credit losses is based on our best estimate of expected credit losses in existing receivable balances and is determined using historical write-off experience, adjusted for various industry and regional data and current expectations of future credit losses.

Notes receivable from commercial borrowers are collateralized by various combinations of mortgages, personal property, accounts and notes receivable, inventories and assignments of capital stock from certain regional cooperatives. These loans are originated in various states, primarily in the Upper Midwest region of the United States, the most significant of which include North Dakota and Minnesota. CHS Capital also has loans receivable from producer borrowers that are collateralized by various combinations of growing crops, livestock, inventories, accounts receivable, personal property and supplemental mortgages and are originated primarily in the same states as the commercial notes.

In addition to the short-term balances included in the table above, CHS Capital had long-term notes receivable with durations of generally not more than 10 years, totaling $93.0 million and $101.5 million as of February 28, 2021, and August 31, 2020, respectively. Long-term notes receivable are included in other assets on our Condensed Consolidated Balance Sheets. As of February 28, 2021, and August 31, 2020, the commercial notes represented 67% and 33%, respectively, and the producer notes represented 33% and 67%, respectively, of total CHS Capital notes receivable.

CHS Capital has commitments to extend credit to customers if there are no violations of contractually established conditions. As of February 28, 2021, CHS Capital customers had additional available credit of $618.0 million. No significant troubled debt restructuring activity occurred and no third-party customer or borrower accounted for more than 10% of the total receivables balance as of February 28, 2021, or August 31, 2020.