XML 61 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
Notes Payable and Long-Term Debt (Tables)
12 Months Ended
Aug. 31, 2012
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Notes payable and long-term debt as of August 31, 2012 and 2011, consisted of the following:
 
Interest Rates at
 
 
 
 
 
August 31, 2012
 
2012
 
2011
 
(Dollars in thousands)
Notes payable(a)(j)
0.67% to 10.75%
 
$
269,783

 
$
130,719

CHS Capital notes payable(k)
0.80% to 2.64%
 
533,839

 
585,549

 
 
 
$
803,622

 
$
716,268

Long-term debt:
 
 
 

 
 

Revolving term loans from cooperative and other banks, payable in equal installments beginning in 2013 through 2018(b)(j)
5.59%
 
$
150,000

 
$
150,000

Private placement, payable in equal installments beginning in 2014 through 2018(c)(j)
6.18%
 
400,000

 
400,000

Private placement, payable in equal installments through 2013(d)(j)
6.81%
 
37,500

 
75,000

Private placement, payable in installments through 2018(e)(j)
4.96% to 5.60%
 
59,615

 
86,539

Private placement, payable in equal installments beginning in 2011 through 2015(f)(j)
5.25%
 
75,000

 
100,000

Private placement, payable in equal installments beginning in 2014 through 2018(g)(j)
5.78%
 
50,000

 
50,000

Private placement, payable in equal installments beginning in 2017 through 2021(g)(j)
4.00%
 
100,000

 
100,000

Private placement, payable in its entirety in 2019(h)(j)
4.08%
 
130,000

 
130,000

Private placement, payable in its entirety in 2021(h)(j)
4.52%
 
160,000

 
160,000

Private placement, payable in its entirety in 2023(h)(j)
4.67%
 
130,000

 
130,000

Private placement, payable in its entirety in 2026(h)(j)
4.82%
 
80,000

 
80,000

Other notes and contracts(i)
2.25% to 12.17%
 
68,238

 
40,458

Total long-term debt
 
 
1,440,353

 
1,501,997

Less current portion
 
 
108,211

 
90,804

Long-term portion
 
 
$
1,332,142

 
$
1,411,193

_______________________________________

(a)
The Company finances its working capital needs through short-term lines of credit with a syndication of domestic and international banks. On August 31, 2012, the Company had two primary committed lines of credit. The Company had a three-year revolving facility and a five-year revolving facility, each with committed amounts of $1.25 billion, for a total of $2.5 billion, which had no amounts outstanding as of August 31, 2012. As of August 31, 2011 the Company had two revolving lines of credit totaling $2.2 billion, with no amounts outstanding at August 31, 2011, both of which were terminated and replaced by the existing facilities in September 2011. In addition to its primary lines of credit, the Company had two additional revolving lines of credit, of which one was a 364-day revolving facility in the amount of $40.0 million committed that was terminated in October 2011, and the other is a three-year revolving facility in the amount of $40.0 million committed, with the right to increase the capacity to $120.0 million, that expires in November 2013. There were no amounts outstanding on either of these two additional revolving lines of credit on August 31, 2012 and 2011. The Company also has a committed revolving credit facility dedicated to NCRA, with a syndication of banks in the amount of $15.0 million that expires in December 2014, with no amounts outstanding on August 31, 2012 and 2011. The Company's wholly-owned subsidiaries, CHS Europe S.A. and CHS do Brasil Ltda., have uncommitted lines of credit to finance their normal trading activities with outstanding amounts of $190.4 million as of August 31, 2012 and $128.8 million as of August 31, 2011, which are collateralized by certain inventories and receivables. In addition, other international subsidiaries have lines of credit totaling $77.7 million outstanding at August 31, 2012, of which, $43.8 million is collateralized. The Company has two commercial paper programs totaling up to $125.0 million with two banks participating in the revolving credit facilities. Terms of the Company’s credit facilities allow a maximum usage of $200.0 million to pay principal under any commercial paper facility. On August 31, 2012 and 2011, there was no commercial paper outstanding. Miscellaneous short-term notes payable totaled $1.7 million and $1.9 million on August 31, 2012 and 2011, respectively.
(b)
In December 2007, the Company established a ten-year long-term credit agreement through a syndication of cooperative banks in the amount of $150.0 million.
(c)
In October 2007, the Company entered into a private placement with several insurance companies for long-term debt in the amount of $400.0 million.
(d)
In June 1998, the Company entered into a private placement with several insurance companies for long-term debt in the amount of $225.0 million.
(e)
In October 2002, the Company entered into a private placement with several insurance companies for long-term debt in the amount of $175.0 million.
(f)
In September 2004, the Company entered into a private placement with several insurance companies for long-term debt in the amount of $125.0 million.
(g)
In March 2004, the Company entered into a note purchase and private shelf agreement with Prudential Capital Group. In April 2007, the agreement was amended with Prudential Investment Management, Inc. and several other participating insurance companies to expand the uncommitted facility from $70.0 million to $150.0 million. In February 2008, the Company borrowed $50.0 million under the shelf arrangement and in November 2010, the Company borrowed $100.0 million under the shelf arrangement.
(h)
In June 2011, the Company entered into a private placement with certain accredited investors for long-term debt in the amount of $500.0 million, which was layered into four series. Under the agreement, the Company may, from time to time, issue additional series of notes pursuant to the agreement, provided that the aggregate principal amount of all notes outstanding at any time may not exceed $1.5 billion.
(i)
Other notes and contracts payable of $33.7 million are collateralized on August 31, 2012.
(j)
The debt is unsecured; however, restrictive covenants under various agreements have requirements for maintenance of minimum working capital levels and other financial ratios.
(k)
Cofina Funding, LLC (Cofina Funding), a wholly-owned subsidiary of CHS Capital, has available credit totaling $300.0 million as of August 31, 2012, 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 with a weighted-average interest rate of 1.21% as of August 31, 2012. Borrowings by Cofina Funding utilizing the available credit under the note purchase agreements totaled $121.5 million as of August 31, 2012. 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 2.03% to 3.00% as of August 31, 2012. As of August 31, 2012, the total funding commitment under these agreements was $261.0 million, of which $122.7 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 $250.0 million. The total outstanding commitments under the program totaled $238.2 million as of August 31, 2012, of which $158.2 million was borrowed under these commitments with an interest rate of 1.82%. 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 0.80% to 1.10% as of August 31, 2012, and are due upon demand. Borrowings under these notes totaled $131.4 million as of August 31, 2012. As of August 31, 2011, the net borrowings under the Cofina Funding note purchase agreements were $371.3 million. CHS Capital borrowings under the ProPartners program and the surplus funds program were $174.0 million and $96.6 million, respectively, as of August 31, 2011.
Schedule of Weighted Average Interest Rates
Weighted-average interest rates at August 31:
 
2012
 
2011
Notes payable
2.58
%
 
2.37
%
CHS Capital notes payable
1.68
%
 
1.86
%
Long-term debt
5.16
%
 
5.25
%
Schedule of Maturities of Long-Term Debt
The aggregate amount of long-term debt payable as of August 31, 2012 is as follows:
 
(Dollars in thousands)
2013
$
108,211

2014
161,986

2015
163,647

2016
130,044

2017
150,213

Thereafter
726,252

 
$
1,440,353

Schedule of Interest,Net
Interest, net for the years ended August 31, 2012, 2011 and 2010 is as follows:
 
2012
 
2011
 
2010
 
(Dollars in thousands)
Interest expense
$
94,090

 
$
83,044

 
$
69,901

Interest-purchase of NCRA noncontrolling interests
113,184

 
 
 
 
Capitalized interest
(8,882
)
 
(5,487
)
 
(6,212
)
Interest income
(5,129
)
 
(2,722
)
 
(5,365
)
Interest, net
$
193,263

 
$
74,835

 
$
58,324