CHS 2013 Annual Report Download - page 40

8NOV201319002729
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The capitalized major maintenance activity is as follows:
BALANCE AT BALANCE AT
(DOLLARS IN THOUSANDS) BEGINNING OF YEAR COST DEFERRED AMORTIZATION WRITE-OFFS END OF YEAR
2013 $ 70,554 $ 73,701 $ (34,847) $ 109,408
2012 80,752 23,443 (33,641) 70,554
2011 19,097 92,129 (30,474) 80,752
We have two commercial paper programs totaling up to $125.0 mil-
lion with two banks participating in the revolving credit facilities.
Terms of our credit facilities allow a maximum usage of $200.0 mil-
lion to pay principal under any commercial paper facility. On
August 31, 2013 we had no commercial paper outstanding.
Miscellaneous short-term notes payable totaled $2.5 million
as of August 31, 2013.
Notes payable as of August 31, 2013 and 2012, consisted (b) Cofina Funding, LLC (Cofina Funding), a wholly-owned subsid-
of the following: iary of CHS Capital, has available credit totaling $300.0 million as
of August 31, 2013, under note purchase agreements with
WEIGHTED-
AVERAGE various purchasers, through the issuance of short-term notes
INTEREST RATE payable. CHS Capital sells eligible commercial loans receivable it
(DOLLARS IN THOUSANDS) 2013 2012 2013 2012 has originated to Cofina Funding, which are then pledged as
collateral under the note purchase agreements. The notes pay-
Notes payable (a) 2.00% 2.58% $ 521,864 $ 269,783 able issued by Cofina Funding bear interest at variable rates
CHS Capital notes based on commercial paper. There were no borrowings by
payable (b) 1.23% 1.68% 367,448 533,839 Cofina Funding utilizing the issuance of commercial paper under
the note purchase agreements as of August 31, 2013.
Total notes payable $ 889,312 $ 803,622
CHS Capital has available credit under master participation
(a) Our primary committed line of credit is a $2.5 billion five-year agreements with numerous counterparties. Borrowings
revolving credit facility expiring in June 2018, with a syndica- under these agreements are accounted for as secured bor-
tion of domestic and international banks, with no amounts rowings and bear interest at variable rates ranging from
outstanding as of August 31, 2013. We have a committed 1.96% to 2.69% as of August 31, 2013. As of August 31, 2013,
revolving credit facility dedicated to NCRA in the amount of the total funding commitment under these agreements
$15.0 million that expires in December 2014, with no amounts was $223.8 million, of which $30.8 million was borrowed.
outstanding as of August 31, 2013. We also have a committed
revolving credit facility dedicated to CHS Europe S.A. in the CHS Capital sells loan commitments it has originated to ProPartners
amount of $80.0 million that expires in September 2018, with Financial (ProPartners) on a recourse basis. The total capacity for
no amounts outstanding as of August 31, 2013. commitments under the ProPartners program is $300.0 million. The
total outstanding commitments under the program totaled
Our wholly-owned subsidiaries, CHS Europe S.A. and CHS $68.1 million as of August 31, 2013, of which $45.7 million was bor-
Agronegocio Industria e Comercio Ltda (CHS Agronegocio), rowed under these commitments with an interest rate of 1.60%.
have uncommitted lines of credit to finance their normal trading
activities with $420.1 million outstanding as of August 31, 2013. CHS Capital borrows funds under short-term notes issued as part of
These lines are collateralized by certain inventories and receiv- a surplus funds program. Borrowings under this program are
ables. In addition, other international subsidiaries had lines of unsecured and bear interest at variable rates ranging from 0.80% to
credit totaling $99.3 million outstanding as of August 31, 2013, of 1.10% as of August 31, 2013, and are due upon demand. Borrowings
which $60.8 million was collateralized. under these notes totaled $290.9 million as of August 31, 2013.
CHS 2013 45
Notes Payable and Long-Term Debt
Our notes payable and long-term debt are subject to
various restrictive requirements for maintenance of min-
imum consolidated net worth and other financial ratios.
We were in compliance with our debt covenants as of
August 31, 2013.
Notes Payable