Receivables

3 Months Ended

Nov. 30, 2021


	November 30, 2021		August 31, 2021
	(Dollars in thousands)
Trade accounts receivable	$	2,577,018	$	2,047,198
CHS Capital short-term notes receivable	529,376		505,778
Other	623,088		451,630
Gross receivables	3,729,482		3,004,606
Less: allowances and reserves	150,065		143,722
Total receivables	$	3,579,417	$	2,860,884

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 certain regional cooperatives' capital stock. These loans are primarily originated in the states of Minnesota, North Dakota and South Dakota. 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 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 $66.1 million and $55.4 million as of November 30, 2021, and August 31, 2021, respectively. Long-term notes receivable are included in other assets on our Condensed Consolidated Balance Sheets. As of November 30, 2021, and August 31, 2021, commercial notes represented 43% and 28%, respectively, and producer notes represented 57% and 72%, 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 November 30, 2021, CHS Capital customers had additional available credit of $740.0 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 November 30, 2021, or August 31, 2021.