Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended | |
Feb. 28, 2015 | Apr. 08, 2015 | |
DEI [Abstract] | ||
Entity Registrant Name | CHS Inc. | |
Entity Central Index Key | 823277 | |
Current Fiscal Year End Date | -23 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 28-Feb-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets [Abstract] | ||
Cash and cash equivalents | $1,262,360 | $2,133,207 |
Receivables | 2,514,849 | 2,988,563 |
Inventories | 3,697,524 | 2,760,253 |
Derivative assets | 614,004 | 603,933 |
Margin deposits | 289,662 | 301,045 |
Supplier advance payments | 841,339 | 331,345 |
Other current assets | 566,401 | 279,304 |
Total current assets | 9,786,139 | 9,397,650 |
Investments | 995,279 | 923,227 |
Property, plant and equipment | 4,404,578 | 4,031,023 |
Other assets | 787,047 | 795,079 |
Total assets | 15,973,043 | 15,146,979 |
Current liabilities [Abstract] | ||
Notes payable | 1,361,615 | 1,159,473 |
Current portion of long-term debt | 150,172 | 156,836 |
Current portion of mandatorily redeemable noncontrolling interest | 150,654 | 65,981 |
Customer margin deposits and credit balances | 220,060 | 265,556 |
Customer advance payments | 1,197,480 | 602,374 |
Checks and Drafts Outstanding | 195,276 | 167,846 |
Accounts payable | 1,615,943 | 2,208,211 |
Derivative liabilities | 482,590 | 599,990 |
Accrued expenses | 483,411 | 547,781 |
Dividends and equities payable | 225,853 | 409,961 |
Total current liabilities | 6,083,054 | 6,184,009 |
Long-term debt | 1,168,236 | 1,299,664 |
Mandatorily redeemable noncontrolling interest | 0 | 148,756 |
Long-term deferred tax liabilities | 609,916 | 566,647 |
Other liabilities | 451,851 | 481,059 |
Commitments and contingencies | ||
Equities: | ||
Preferred stock | 2,167,575 | 1,190,177 |
Equity certificates | 3,777,984 | 3,816,428 |
Accumulated other comprehensive loss | -162,395 | -156,757 |
Capital reserves | 1,865,364 | 1,598,660 |
Total CHS Inc. equities | 7,648,528 | 6,448,508 |
Noncontrolling interests | 11,458 | 18,336 |
Total equities | 7,659,986 | 6,466,844 |
Total liabilities and equities | $15,973,043 | $15,146,979 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Income Statement [Abstract] | ||||
Revenues | $8,355,728 | $9,680,274 | $17,855,196 | $20,706,395 |
Cost of goods sold | 8,111,365 | 9,238,840 | 17,020,110 | 19,864,045 |
Gross profit | 244,363 | 441,434 | 835,086 | 842,350 |
Marketing, general and administrative | 170,775 | 155,771 | 332,743 | 288,912 |
Operating earnings | 73,588 | 285,663 | 502,343 | 553,438 |
Loss (gain) on investments | -2,199 | -2,609 | -5,074 | -2,609 |
Interest, net | 9,490 | 28,989 | 30,091 | 59,774 |
Equity (income) loss from investments | -24,169 | -31,049 | -48,798 | -63,727 |
Income before income taxes | 90,466 | 290,332 | 526,124 | 560,000 |
Income taxes | -2,431 | 29,711 | 54,896 | 56,351 |
Net income | 92,897 | 260,621 | 471,228 | 503,649 |
Net income (loss) attributable to noncontrolling interests | 83 | 552 | -289 | 1,394 |
Net income attributable to CHS Inc. | $92,814 | $260,069 | $471,517 | $502,255 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Net income | $92,897 | $260,621 | $471,228 | $503,649 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 3,275 | 6,687 | 7,006 | 7,096 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 143 | -430 | 773 | 1,488 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | -2,167 | -11,531 | -2,409 | -14,665 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -5,802 | -2,856 | -11,008 | -2,484 |
Other Comprehensive Income (Loss), Net of Tax | -4,551 | -8,130 | -5,638 | -8,565 |
Comprehensive Income | 88,346 | 252,491 | 465,590 | 495,084 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 83 | 552 | -289 | 1,394 |
Comprehensive Income (Loss), Net of Tax, Attributable to CHS | $88,263 | $251,939 | $465,879 | $493,690 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income Parenthetical (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Tax | $2,042 | $4,123 | $4,366 | $4,375 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax expense (benefit) | 88 | -265 | 476 | 917 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax expense (benefit) | -1,336 | -7,110 | -1,485 | -9,042 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax expense (benefit) | ($3,576) | ($1,760) | ($6,786) | $1,531 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Cash flows from operating activities: | ||
Net income | $471,228 | $503,649 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 148,784 | 127,199 |
Amortization of deferred major repair costs | 20,442 | 25,033 |
Equity (income) loss from investments | -48,798 | -63,727 |
Distributions from equity investments | 34,761 | 48,357 |
Noncash patronage dividends received | -3,999 | -4,779 |
Gain on sale of property, plant and equipment | -1,520 | -1,520 |
Gain on investments | -5,074 | -2,609 |
Unrealized (gain) loss on crack spread contingent liability | 6,153 | 6,497 |
Deferred taxes | 49,723 | 2,372 |
Other, net | 20,483 | 11,520 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | 438,607 | 460,197 |
Inventories | -913,037 | -693,903 |
Derivative assets | -1,479 | -145,339 |
Margin deposits | 11,565 | -32,527 |
Supplier advance payments | -509,994 | -637,003 |
Other current assets and other assets | 33,814 | -40,070 |
Customer margin deposits and credit balances | -74,746 | -48,675 |
Customer advance payments | 595,106 | 871,878 |
Accounts payable and accrued expenses | -666,428 | -558,254 |
Derivative liabilities | -121,696 | 88,628 |
Other liabilities | -42,171 | 51,862 |
Net cash provided by (used in) operating activities | -558,276 | -31,214 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | -512,510 | -389,537 |
Proceeds from disposition of property, plant and equipment | 4,142 | 3,081 |
Expenditures for Major Repairs | -8,347 | 0 |
Purchase of short-term investments | -315,000 | 0 |
Investments in joint ventures and other | -57,418 | -19,849 |
Investments redeemed | 3,189 | 4,164 |
Proceeds from sale of investments | 8,284 | 2,725 |
Changes in notes receivable | 14,363 | -243,247 |
Business acquisitions, net of cash acquired | -2,371 | -97,858 |
Other investing activities, net | -4,554 | -3,577 |
Net cash provided by (used in) investing activities | -870,222 | -744,098 |
Cash flows from financing activities: | ||
Changes in notes payable | 201,333 | 184,948 |
Long-term debt borrowings | 3,546 | 1,426 |
Principal payments on long-term debt | -150,354 | -136,389 |
Mandatorily redeemable noncontrolling interest payments | -65,981 | -65,981 |
Payments on crack spread contingent liability | 0 | -8,670 |
Changes in checks and drafts outstanding | 28,715 | 16,253 |
Preferred stock issued | 1,010,000 | 282,979 |
Preferred stock issuance costs | -32,602 | -9,655 |
Preferred stock dividends paid | -54,759 | -18,153 |
Distributions to noncontrolling interests | -430 | -575 |
Retirements of equities | -108,723 | -79,656 |
Cash Patronage Dividends Paid | -275,553 | -287,736 |
Other financing activities, net | -282 | 1,172 |
Net cash provided by (used in) financing activities | 554,910 | -120,037 |
Effect of exchange rate changes on cash and cash equivalents | 2,741 | -4,014 |
Net increase (decrease) in cash and cash equivalents | -870,847 | -899,363 |
Cash and cash equivalents at beginning of period | 2,133,207 | 1,808,532 |
Cash and cash equivalents at end of period | $1,262,360 | $909,169 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Basis of Presentation | |
The unaudited Consolidated Balance Sheet as of February 28, 2015, the Consolidated Statements of Operations for the three and six months ended February 28, 2015 and 2014, the Consolidated Statements of Comprehensive Income for the three and six months ended February 28, 2015 and 2014, and the Consolidated Statements of Cash Flows for the six months ended February 28, 2015 and 2014, reflect in the opinion of our management, all normal recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The results of operations and cash flows for interim periods are not necessarily indicative of results for a full fiscal year because of, among other things, the seasonal nature of our businesses. Our Consolidated Balance Sheet data as of August 31, 2014, has been derived from our audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). | |
The notes to our consolidated financial statements make reference to our Energy and Ag reportable segments, as well as our Corporate and Other category, which represents an aggregation of individually immaterial operating segments. See Note 10, Segment Reporting for more information. | |
Our consolidated financial statements include the accounts of CHS and all of our wholly-owned and majority-owned subsidiaries and limited liability companies, including National Cooperative Refinery Association (NCRA) in our Energy segment. The effects of all significant intercompany transactions have been eliminated. | |
These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended August 31, 2014, included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission. | |
Derivative Financial Instruments and Hedging Activities | |
Our derivative instruments primarily consist of commodity and freight futures and forward contracts and, to a lesser degree, may include foreign currency and interest rate swap contracts. These contracts are economic hedges of price risk, but are not designated or accounted for as hedging instruments for accounting purposes, with the exception of certain interest rate swap contracts which are accounted for as cash flow hedges or fair value hedges. Derivative instruments are recorded on our Consolidated Balance Sheets at fair value. See Note 11, Derivative Financial Instruments and Hedging Activities and Note 12, Fair Value Measurements for additional information. | |
Even though we have netting arrangements for our exchange-traded futures and options contracts and certain over-the-counter (OTC) contracts, we report our derivatives on a gross basis on our Consolidated Balance Sheets. Our associated margin deposits are also reported on a gross basis. | |
Major Maintenance Activities | |
In our Energy segment, major maintenance activities (turnarounds) at our two refineries are accounted for under the deferral method. Turnarounds are the scheduled and required shutdowns of refinery processing units. The costs related to the significant overhaul and refurbishment activities include materials and direct labor costs. The costs of turnarounds are deferred when incurred and amortized on a straight-line basis over the period of time estimated to lapse until the next turnaround occurs, which is generally 2 to 4 years. The amortization expense related to turnaround costs is included in cost of goods sold in our Consolidated Statements of Operations. The selection of the deferral method, as opposed to expensing the turnaround costs when incurred, results in deferring recognition of the turnaround expenditures. The deferral method also results in the classification of the related cash outflows as investing activities in our Consolidated Statements of Cash Flows, whereas expensing these costs as incurred, would result in classifying the cash outflows as operating activities. | |
For the three and six months ended February 28, 2015, major repairs turnaround expenditures were $7.2 million and $8.3 million, respectively. There were no turnaround expenditures for the three and six months ended February 28, 2014. | |
Recent Accounting Pronouncements | |
In February 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU No. 2015-02 amended the process that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU No. 2015-02 is effective for the annual period ending after December 15, 2015, and for annual periods and interim periods thereafter. Early application is permitted. We are currently evaluating the impact the adoption will have on our consolidated financial statements in fiscal 2017. | |
In November 2014, the FASB issued ASU No. 2014-16, "Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity." The amendments in this ASU do not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The ASU applies to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of ASU 2014-16 is not expected to have a material effect on our consolidated financial statements in fiscal 2016. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers." ASU No. 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good or services. The guidance also requires an entity to disclose sufficient qualitative and quantitative information surrounding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts from customers. This ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The amendments in this standard are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and we are currently evaluating the impact the adoption will have on our consolidated financial statements in fiscal 2018. |
Receivables
Receivables | 6 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Receivables | Receivables | |||||||
February 28, 2015 | August 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Trade accounts receivable | $ | 1,659,243 | $ | 2,153,929 | ||||
CHS Capital notes receivable | 645,195 | 633,475 | ||||||
Other | 313,288 | 304,798 | ||||||
2,617,726 | 3,092,202 | |||||||
Less allowances and reserves | 102,877 | 103,639 | ||||||
Total receivables | $ | 2,514,849 | $ | 2,988,563 | ||||
Trade accounts receivable are initially recorded at a selling price, which approximates fair value, upon the sale of goods or services to customers. Subsequently, trade accounts receivable are carried at net realizable value, which includes an allowance for estimated uncollectible amounts. We calculate this allowance based on our history of write-offs, level of past due accounts, and our relationships with, and the economics status of, our customers. | ||||||||
CHS Capital, LLC (CHS Capital), our wholly-owned subsidiary, has notes receivable from commercial borrowers and producer borrowings. The short-term notes receivable generally have terms of 12-14 months and are reported at their outstanding principle balances as CHS Capital has the ability and intent to hold these notes to maturity. The carrying value of CHS Capital notes receivable approximates fair value, given their short duration and the use of market pricing adjusted for risk. The 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, Wisconsin, North Dakota and Michigan. CHS Capital also has loans receivable from producer borrowers which are collateralized by various combinations of growing crops, livestock, inventories, accounts receivable, personal property and supplemental mortgages. In addition to the short-term amounts included in the table above, CHS Capital had long-term notes receivable with durations of not more than 10 years of $148.3 million and $159.7 million at February 28, 2015 and August 31, 2014, respectively. The long-term notes receivable are included in other assets on our Consolidated Balance Sheets. As of February 28, 2015 and August 31, 2014 the commercial notes represented 51% and 46%, respectively, and the producer notes represented 49% and 54%, respectively, of the total CHS Capital notes receivable. | ||||||||
CHS Capital evaluates the collectability of both commercial and producer notes on a specific identification basis, based on the amount and quality of the collateral obtained, and records specific loan loss reserves when appropriate. A general reserve is also maintained based on historical loss experience and various qualitative factors. In total, our specific and general loan loss reserves related to CHS Capital are not material to our consolidated financial statements, nor are the historical write-offs. The accrual of interest income is discontinued at the time the loan is 90 days past due unless the credit is well-collateralized and in process of collection. The amount of CHS Capital notes that were past due was not material at any reporting date presented. | ||||||||
CHS Capital has commitments to extend credit to a customer as long as there is no violation of any condition established in the contract. As of February 28, 2015, customers of CHS Capital have additional available credit of approximately $1.0 billion. |
Inventories
Inventories | 6 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
February 28, 2015 | August 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Grain and oilseed | $ | 1,444,271 | $ | 961,327 | ||||
Energy | 831,639 | 875,719 | ||||||
Crop nutrients | 479,320 | 374,023 | ||||||
Feed and farm supplies | 869,425 | 448,454 | ||||||
Processed grain and oilseed | 68,437 | 84,498 | ||||||
Other | 4,432 | 16,232 | ||||||
Total inventories | $ | 3,697,524 | $ | 2,760,253 | ||||
As of February 28, 2015, we valued approximately 14% of inventories, primarily related to Energy, using the lower of cost, determined on the LIFO method, or market (16% as of August 31, 2014). If the FIFO method of accounting had been used, inventories would have been higher than the reported amount by $147.6 million and $538.7 million at February 28, 2015 and August 31, 2014, respectively. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Interim LIFO calculations are based on management's estimates of expected year-end inventory levels and costs, and are subject to the final year-end LIFO inventory valuation. |
Investments
Investments | 6 Months Ended |
Feb. 28, 2015 | |
Investments [Abstract] | |
Investments | Investments |
As of August 31, 2014, we owned 84.0% of NCRA and with the closings in September 2014, our ownership increased to 88.9%. In fiscal 2012, we entered into an agreement to purchase the remaining shares of NCRA from Growmark Inc. and MFA Oil Company in separate closings to be held annually through fiscal 2016. Pursuant to this agreement, we made payments during the six months ended February 28, 2015 and 2014 of $66.0 million and $66.0 million, respectively. The present value of the remaining payments is included as mandatorily redeemable noncontrolling interest on our Consolidated Balance Sheets. In addition to these payments, we paid $16.5 million during the six months ended February 28, 2014 related to the associated crack spread contingent liability. The fair value of the remaining contingent liability was $121.1 million as of February 28, 2015. | |
Equity Method Investments | |
Joint ventures and other investments, in which we have significant ownership and influence, but not control, are accounted for in our consolidated financial statements using the equity method of accounting. Our significant equity method investments are summarized below. | |
We have a 50% interest in Ventura Foods, LLC (Ventura Foods), a joint venture which produces and distributes primarily vegetable oil-based products, and is included in Corporate and Other. We account for Ventura Foods as an equity method investment, and as of February 28, 2015, our carrying value of Ventura Foods exceeded our share of their equity by $12.9 million, which represents equity method goodwill. As of February 28, 2015, the carrying value of our investment in Ventura Foods was $331.6 million. | |
In fiscal 2014, we formed Ardent Mills, LLC (Ardent Mills), a joint venture with Cargill Incorporated (Cargill) and ConAgra Foods, Inc., which combines the North American flour milling operations of the three parent companies, giving CHS a 12% interest in Ardent Mills. Prior to closing, we contributed $32.8 million to Horizon Milling, LLC to pay off existing debt as a pre-condition to close. Upon closing, Ardent Mills was financed with funds from third-party borrowings, which did not require credit support from the owners. We received $121.2 million of cash proceeds distributed to us in proportion to our ownership interest, adjusted for deviations in specified working capital target amounts, and recognized a gain of $109.2 million associated with this transaction. In connection with the closing, the parties also entered into various ancillary and non-compete agreements including, among other things, an agreement for us to supply Ardent Mills with certain wheat products. As we hold one of the five board seats, we account for Ardent Mills as an equity method investment included in Corporate and Other. As of February 28, 2015, the carrying value of our investment in Ardent Mills was $204.4 million. | |
TEMCO, LLC (TEMCO) is owned and governed by Cargill (50%) and CHS (50%). Both owners have committed to sell all of their feedgrains, wheat, oilseeds and by-product origination that are tributary to the Pacific Northwest, United States (Pacific Northwest) to TEMCO and to use TEMCO as their exclusive export-marketing vehicle for such grains exported through the Pacific Northwest through January 2037. We account for TEMCO as an equity method investment included in our Ag segment. As of February 28, 2015, the carrying value of our investment in TEMCO was $63.5 million. | |
Other Short-Term Investments | |
As of February 28, 2015, we have invested $315.0 million of the proceeds from the September 2014 Class B Series 3 Preferred Stock issuance (see Note 8, Equities for additional information) in time deposits with original maturities of six and nine months with select highly-rated financial institution counterparties. These short-term investments are included in other current assets on our Consolidated Balance Sheet. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment (Notes) | 6 Months Ended |
Feb. 28, 2015 | |
Plant, Property and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment |
As of February 28, 2015 and August 31, 2014, total property, plant and equipment, net of accumulated depreciation and amortization, was $4.4 billion and $4.0 billion, respectively. The increase in fiscal 2015 is driven by an increase in construction in progress of $358.7 million related primarily to capital projects at our refineries and the fertilizer plant project discussed below. | |
In September 2014, our Board of Directors approved plans to construct a nitrogen fertilizer plant located in Spiritwood, North Dakota. We currently estimate the construction costs to be more than $3.0 billion, with the plant anticipated to be operational during calendar year 2018. As of February 28, 2015, we have capitalized approximately $68.4 million related to this project. As required by GAAP, we review long-lived assets for impairment when events or changes in circumstances, including significant changes in actual or expected operating results, indicate that the asset’s carrying value may not be recoverable. | |
Depreciation expense during the three and six months ended February 28, 2015 was $72.7 million and $143.2 million, respectively. Depreciation expense during the three and six months ended February 28, 2014 was $60.7 million and $120.1 million, respectively. |
Goodwill_and_Intangibles_Notes
Goodwill and Intangibles (Notes) | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets | |||||||||||||||||||||||
Goodwill of $154.9 million and $158.7 million on February 28, 2015 and August 31, 2014, respectively, is included in other assets on our Consolidated Balance Sheets. Changes in the net carrying amount of goodwill for the six months ended February 28, 2015, by segment, are as follows: | ||||||||||||||||||||||||
Energy | Ag | Corporate | Total | |||||||||||||||||||||
and Other | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Balances, August 31, 2014 | $ | 552 | $ | 151,246 | $ | 6,898 | $ | 158,696 | ||||||||||||||||
Goodwill acquired during the period | — | 388 | — | 388 | ||||||||||||||||||||
Effect of foreign currency translation adjustments | — | (4,217 | ) | — | (4,217 | ) | ||||||||||||||||||
Balances, February 28, 2015 | $ | 552 | $ | 147,417 | $ | 6,898 | $ | 154,867 | ||||||||||||||||
Intangible assets subject to amortization primarily include customer lists, trademarks and agreements not to compete, and are amortized over their respective useful lives (ranging from 2 to 30 years). Information regarding intangible assets included in other assets on our Consolidated Balance Sheets is as follows: | ||||||||||||||||||||||||
February 28, | August 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Carrying Amount | Accumulated Amortization | Net | Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Customer lists | $ | 70,375 | $ | (28,472 | ) | $ | 41,903 | $ | 69,862 | $ | (26,114 | ) | $ | 43,748 | ||||||||||
Trademarks and other intangible assets | 42,402 | (30,853 | ) | 11,549 | 41,293 | (29,587 | ) | 11,706 | ||||||||||||||||
Total intangible assets | $ | 112,777 | $ | (59,325 | ) | $ | 53,452 | $ | 111,155 | $ | (55,701 | ) | $ | 55,454 | ||||||||||
Total amortization expense for intangible assets during the three and six months ended February 28, 2015 was $1.8 million and $3.6 million, respectively. Total amortization expense for intangible assets during the three and six months ended February 28, 2014 was $2.6 million and $4.9 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Year 1 | $ | 7,089 | ||||||||||||||||||||||
Year 2 | 6,409 | |||||||||||||||||||||||
Year 3 | 4,802 | |||||||||||||||||||||||
Year 4 | 3,609 | |||||||||||||||||||||||
Year 5 | 3,489 | |||||||||||||||||||||||
Notes_Payable_and_LongTerm_Deb
Notes Payable and Long-Term Debt | 6 Months Ended | |||||||||||||||
Feb. 28, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt | |||||||||||||||
Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with our debt covenants as of February 28, 2015. | ||||||||||||||||
February 28, 2015 | August 31, 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Notes payable | $ | 1,015,783 | $ | 840,699 | ||||||||||||
CHS Capital notes payable | 345,832 | 318,774 | ||||||||||||||
Total notes payable | $ | 1,361,615 | $ | 1,159,473 | ||||||||||||
On February 28, 2015, our primary line of credit was a five-year revolving facility with a committed amount of $2.5 billion. We had no amounts outstanding as of February 28, 2015 and August 31, 2014. | ||||||||||||||||
Interest, net for the three and six months ended February 28, 2015 and 2014 is as follows: | ||||||||||||||||
For the Three Months Ended February 28, | For the Six Months Ended February 28, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest expense | $ | 19,574 | $ | 11,836 | $ | 40,610 | $ | 34,426 | ||||||||
Interest-purchase of NCRA noncontrolling interests | 4,860 | 21,273 | 18,928 | 32,397 | ||||||||||||
Capitalized interest | (12,706 | ) | (2,526 | ) | (24,611 | ) | (3,862 | ) | ||||||||
Interest income | (2,238 | ) | (1,594 | ) | (4,836 | ) | (3,187 | ) | ||||||||
Interest, net | $ | 9,490 | $ | 28,989 | $ | 30,091 | $ | 59,774 | ||||||||
We terminated interest rate swaps and recorded a resulting $13.5 million gain as a reduction to interest expense in our Consolidated Statements of Operations for the three and six months ended February 28, 2014. See Note 11, Derivative Financial Instruments and Hedging Activities for additional information. |
Equities
Equities | 6 Months Ended | |||||||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||
Equities | Equities | |||||||||||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||||||||||||
In June 2014, we filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC). Under the shelf registration, which has been declared effective by the SEC, we may offer and sell, from time to time, up to $2.0 billion of our Class B cumulative redeemable preferred stock over a three-year period. | ||||||||||||||||||||||||||||||||
In September 2014, we issued 19,700,000 shares of Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 (Class B Series 3 Preferred Stock) with a total redemption value of $492.5 million, excluding accumulated dividends. Net proceeds from the sale of our Class B Series 3 Preferred Stock, after deducting the underwriting discount and offering expenses payable by us, were approximately $476.7 million. The Class B Series 3 Preferred Stock is listed on the NASDAQ Stock Market LLC under the symbol CHSCM and accumulates dividends at a rate of 6.75% per year to, but excluding, September 30, 2024, and at a rate equal to the three-month LIBOR plus 4.155%, not to exceed 8.00% per annum thereafter, which are payable quarterly. Our Class B Series 3 Preferred Stock may be redeemed at our option beginning September 30, 2024. | ||||||||||||||||||||||||||||||||
In January 2015, we issued 20,700,000 shares of Class B Cumulative Redeemable Preferred Stock, Series 4 (Class B Series 4 Preferred Stock) with a total redemption value of $517.5 million, excluding accumulated dividends. Net proceeds from the sale of our Class B Series 4 Preferred Stock, after deducting the underwriting discount and offering expenses payable by us, were approximately $501.1 million. The Class B Series 4 Preferred Stock is listed on the NASDAQ Stock Market LLC under the symbol CHSCL and accumulates dividends at a rate of 7.50% per year, which are payable quarterly. Our Class B Series 4 Preferred Stock may be redeemed at our option beginning January 21, 2025. | ||||||||||||||||||||||||||||||||
Changes in Equities | ||||||||||||||||||||||||||||||||
Changes in equities for the six months ended February 28, 2015 are as follows: | ||||||||||||||||||||||||||||||||
Equity Certificates | Accumulated | |||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||
Capital | Nonpatronage | Nonqualified Equity Certificates | Preferred | Loss | Capital | Noncontrolling | Total | |||||||||||||||||||||||||
Equity | Equity | Stock | Reserves | Interests | Equities | |||||||||||||||||||||||||||
Certificates | Certificates | |||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Balances, August 31, 2014 | $ | 3,508,473 | $ | 23,256 | $ | 284,699 | $ | 1,190,177 | $ | (156,757 | ) | $ | 1,598,660 | $ | 18,336 | $ | 6,466,844 | |||||||||||||||
Reversal of prior year patronage and redemption estimates | (282,290 | ) | — | (148,579 | ) | — | — | 810,641 | — | 379,772 | ||||||||||||||||||||||
Distribution of 2014 patronage refunds | 395,287 | — | 147,379 | — | — | (818,219 | ) | — | (275,553 | ) | ||||||||||||||||||||||
Redemptions of equities | (108,442 | ) | (79 | ) | (221 | ) | — | — | 19 | — | (108,723 | ) | ||||||||||||||||||||
Equities issued | 12,365 | — | — | 977,398 | — | — | — | 989,763 | ||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | (64,723 | ) | — | (64,723 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (430 | ) | (430 | ) | ||||||||||||||||||||||
Other, net | (258 | ) | — | (606 | ) | — | — | 169 | (6,159 | ) | (6,854 | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | 471,517 | (289 | ) | 471,228 | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | (5,638 | ) | — | — | (5,638 | ) | ||||||||||||||||||||||
Estimated 2015 cash patronage refunds | — | — | — | — | — | (132,700 | ) | — | (132,700 | ) | ||||||||||||||||||||||
Estimated 2015 equity redemptions | (53,000 | ) | — | — | — | — | — | — | (53,000 | ) | ||||||||||||||||||||||
Balances, February 28, 2015 | $ | 3,472,135 | $ | 23,177 | $ | 282,672 | $ | 2,167,575 | $ | (162,395 | ) | $ | 1,865,364 | $ | 11,458 | $ | 7,659,986 | |||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||
Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the six months ended February 28, 2015: | ||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits | Unrealized Net Gain on Available for Sale Investments | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Balance as of August 31, 2014 | $ | (151,852 | ) | $ | 4,398 | $ | (2,722 | ) | $ | (6,581 | ) | $ | (156,757 | ) | ||||||||||||||||||
Current period other comprehensive income (loss), net of tax | 236 | 773 | (2,658 | ) | (11,008 | ) | (12,657 | ) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 6,770 | — | 249 | — | 7,019 | |||||||||||||||||||||||||||
Net other comprehensive income (loss), net of tax | 7,006 | 773 | (2,409 | ) | (11,008 | ) | (5,638 | ) | ||||||||||||||||||||||||
Balance as of February 28, 2015 | $ | (144,846 | ) | $ | 5,171 | $ | (5,131 | ) | $ | (17,589 | ) | $ | (162,395 | ) | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) were primarily related to pension and other postretirement benefits and were recorded to net income. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts as disclosed in Note 9, Benefit Plans. |
Benefit_Plans
Benefit Plans | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Benefit plans | Benefit Plans | |||||||||||||||||||||||
We have various pension and other defined benefit and defined contribution plans, in which substantially all employees may participate. We also have non-qualified supplemental executive and Board retirement plans. | ||||||||||||||||||||||||
Components of net periodic benefit costs for the three and six months ended February 28, 2015 and 2014 are as follows: | ||||||||||||||||||||||||
Qualified | Non-Qualified | Other Benefits | ||||||||||||||||||||||
Pension Benefits | Pension Benefits | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Components of net periodic benefit costs for the three months ended February 28 are as follows: | (Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 9,058 | $ | 7,802 | $ | 225 | $ | 248 | $ | 474 | $ | 476 | ||||||||||||
Interest cost | 7,002 | 8,240 | 352 | 486 | 415 | 502 | ||||||||||||||||||
Expected return on assets | (12,436 | ) | (11,082 | ) | — | — | — | — | ||||||||||||||||
Prior service cost (credit) amortization | 409 | 398 | 57 | 57 | (30 | ) | (30 | ) | ||||||||||||||||
Actuarial (gain) loss amortization | 4,907 | 4,445 | 261 | 241 | (106 | ) | (311 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 8,940 | $ | 9,803 | $ | 895 | $ | 1,032 | $ | 753 | $ | 637 | ||||||||||||
Components of net periodic benefit costs for the six months ended February 28 are as follows: | ||||||||||||||||||||||||
Service cost | $ | 18,116 | $ | 15,269 | $ | 450 | $ | 427 | $ | 946 | $ | 958 | ||||||||||||
Interest cost | 14,016 | 14,938 | 704 | 822 | 830 | 1,021 | ||||||||||||||||||
Expected return on assets | (24,874 | ) | (23,816 | ) | — | — | — | — | ||||||||||||||||
Prior service cost (credit) amortization | 816 | 797 | 114 | 114 | (60 | ) | (60 | ) | ||||||||||||||||
Actuarial (gain) loss amortization | 9,808 | 9,089 | 522 | 468 | (211 | ) | (187 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 17,882 | $ | 16,277 | $ | 1,790 | $ | 1,831 | $ | 1,505 | $ | 1,732 | ||||||||||||
Employer Contributions | ||||||||||||||||||||||||
Total contributions to be made during fiscal 2015, including the NCRA plan, will depend primarily on market returns on the pension plan assets and minimum funding level requirements. During the six months ended February 28, 2015, CHS and NCRA made no contributions to the pension plans. At this time, we do not anticipate having to make a required contribution for our benefit plans in fiscal 2015, but we may make a voluntary contribution during our fourth quarter. |
Segment_Reporting
Segment Reporting | 6 Months Ended | |||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Reporting | Segment Reporting | |||||||||||||||||||
We have aligned our segments based on an assessment of how our businesses are operated and the products and services they sell. | ||||||||||||||||||||
Our Energy segment produces and provides primarily for the wholesale distribution of petroleum products and transportation of those products. Our Ag segment purchases and further processes or resells grains and oilseeds originated by our country operations business, by our member cooperatives and by third parties, and also serves as a wholesaler and retailer of crop inputs. Corporate and Other primarily represents our non-consolidated wheat milling and packaged food joint ventures, as well as our business solutions operations, which consist of commodities hedging, insurance and financial services related to crop production. | ||||||||||||||||||||
Corporate administrative expenses are allocated to each business segment, and Corporate and Other, based on direct usage for services that can be tracked, such as information technology and legal, and other factors or considerations relevant to the costs incurred. | ||||||||||||||||||||
Prior to fiscal 2015, our renewable fuels marketing business was included in our Energy segment and our renewable fuels production business was included in our Ag segment. Effective in the first quarter of fiscal 2015, we reorganized certain parts of our business to better align our ethanol supply chain. As a result, our renewable fuels marketing business is now managed together with our renewable fuels production business within our Ag segment. In accordance with Accounting Standards Codification (ASC) Topic 280, Segment Reporting, we have identified our operating segments to reflect the manner in which our chief operating decision maker evaluates performance and manages the business, and we have aggregated those operating segments into our reportable Energy and Ag segments. Prior period segment information below has been revised to reflect this change to ensure comparability. | ||||||||||||||||||||
Many of our business activities are highly seasonal and operating results will vary throughout the year. Historically, our income is generally lowest during the second fiscal quarter and highest during the third fiscal quarter. For example, in our Ag segment, agronomy and country operations businesses experience higher volumes and income during the spring planting season and in the fall, which corresponds to harvest. Also in our Ag segment, our grain marketing operations are subject to fluctuations in volumes and earnings based on producer harvests, world grain prices and demand. Our Energy segment generally experiences higher volumes and profitability in certain operating areas, such as refined products, in the summer and early fall when gasoline and diesel fuel usage is highest and is subject to global supply and demand forces. Other energy products, such as propane, may experience higher volumes and profitability during the winter heating and crop drying seasons. | ||||||||||||||||||||
Our revenues, assets and cash flows can be significantly affected by global market prices for commodities such as petroleum products, natural gas, grains, oilseeds, crop nutrients and flour. Changes in market prices for commodities that we purchase without a corresponding change in the selling prices of those products can affect revenues and operating earnings. Commodity prices are affected by a wide range of factors beyond our control, including the weather, crop damage due to disease or insects, the availability and adequacy of supply, government regulations and policies, world events, and general political and economic conditions. | ||||||||||||||||||||
While our revenues and operating results are derived from businesses and operations which are wholly-owned and majority-owned, a portion of our business operations are conducted through companies in which we hold ownership interests of 50% or less and do not control the operations. We account for these investments primarily using the equity method of accounting, wherein we record our proportionate share of income or loss reported by the entity as equity income from investments, without consolidating the revenues and expenses of the entity in our Consolidated Statements of Operations. In our Ag segment, this principally includes our 50% ownership in TEMCO. In Corporate and Other, these investments principally include our 50% ownership in Ventura Foods and our 12% ownership in Ardent Mills. | ||||||||||||||||||||
Reconciling Amounts represent the elimination of revenues between segments. Such transactions are executed at market prices to more accurately evaluate the profitability of the individual business segments. | ||||||||||||||||||||
Segment information for the three and six months ended February 28, 2015 and 2014 is as follows: | ||||||||||||||||||||
Energy | Ag | Corporate | Reconciling | Total | ||||||||||||||||
and Other | Amounts | |||||||||||||||||||
For the Three Months Ended February 28, 2015: | (Dollars in thousands) | |||||||||||||||||||
Revenues | $ | 1,947,297 | $ | 6,501,280 | $ | 16,803 | $ | (109,652 | ) | $ | 8,355,728 | |||||||||
Cost of goods sold | 1,894,418 | 6,326,607 | (8 | ) | (109,652 | ) | 8,111,365 | |||||||||||||
Gross profit | 52,879 | 174,673 | 16,811 | — | 244,363 | |||||||||||||||
Marketing, general and administrative | 46,758 | 106,671 | 17,346 | — | 170,775 | |||||||||||||||
Operating earnings (losses) | 6,121 | 68,002 | (535 | ) | — | 73,588 | ||||||||||||||
(Gain) loss on investments | — | — | (2,199 | ) | — | (2,199 | ) | |||||||||||||
Interest, net | (7,264 | ) | 14,399 | 2,355 | — | 9,490 | ||||||||||||||
Equity (income) loss from investments | (736 | ) | (4,442 | ) | (18,991 | ) | — | (24,169 | ) | |||||||||||
Income before income taxes | $ | 14,121 | $ | 58,045 | $ | 18,300 | $ | — | $ | 90,466 | ||||||||||
Intersegment revenues | $ | (105,567 | ) | $ | (4,085 | ) | $ | — | $ | 109,652 | $ | — | ||||||||
Energy | Ag | Corporate | Reconciling | Total | ||||||||||||||||
and Other | Amounts | |||||||||||||||||||
For the Three Months Ended February 28, 2014: | ||||||||||||||||||||
Revenues | $ | 2,961,193 | $ | 6,833,365 | $ | 17,445 | $ | (131,729 | ) | $ | 9,680,274 | |||||||||
Cost of goods sold | 2,676,335 | 6,694,245 | (11 | ) | (131,729 | ) | 9,238,840 | |||||||||||||
Gross profit | 284,858 | 139,120 | 17,456 | — | 441,434 | |||||||||||||||
Marketing, general and administrative | 38,042 | 99,985 | 17,744 | — | 155,771 | |||||||||||||||
Operating earnings (losses) | 246,816 | 39,135 | (288 | ) | — | 285,663 | ||||||||||||||
(Gain) loss on investments | — | 116 | (2,725 | ) | — | (2,609 | ) | |||||||||||||
Interest, net | 18,578 | 9,190 | 1,221 | — | 28,989 | |||||||||||||||
Equity (income) loss from investments | (849 | ) | (8,213 | ) | (21,987 | ) | — | (31,049 | ) | |||||||||||
Income before income taxes | $ | 229,087 | $ | 38,042 | $ | 23,203 | $ | — | $ | 290,332 | ||||||||||
Intersegment revenues | $ | (131,729 | ) | $ | — | $ | — | $ | 131,729 | $ | — | |||||||||
Energy | Ag | Corporate | Reconciling | Total | ||||||||||||||||
and Other | Amounts | |||||||||||||||||||
For the Six Months Ended February 28, 2015: | ||||||||||||||||||||
Revenues | $ | 4,965,750 | $ | 13,143,319 | $ | 35,796 | $ | (289,669 | ) | $ | 17,855,196 | |||||||||
Cost of goods sold | 4,598,852 | 12,710,939 | (12 | ) | (289,669 | ) | 17,020,110 | |||||||||||||
Gross profit | 366,898 | 432,380 | 35,808 | — | 835,086 | |||||||||||||||
Marketing, general and administrative | 80,126 | 210,548 | 42,069 | — | 332,743 | |||||||||||||||
Operating earnings (losses) | 286,772 | 221,832 | (6,261 | ) | — | 502,343 | ||||||||||||||
(Gain) loss on investments | — | (2,875 | ) | (2,199 | ) | — | (5,074 | ) | ||||||||||||
Interest, net | (3,443 | ) | 28,806 | 4,728 | — | 30,091 | ||||||||||||||
Equity (income) loss from investments | (1,076 | ) | (4,463 | ) | (43,259 | ) | — | (48,798 | ) | |||||||||||
Income before income taxes | $ | 291,291 | $ | 200,364 | $ | 34,469 | $ | — | $ | 526,124 | ||||||||||
Intersegment revenues | $ | (280,520 | ) | $ | (9,149 | ) | $ | — | $ | 289,669 | $ | — | ||||||||
Capital expenditures | $ | 273,989 | $ | 212,140 | $ | 26,381 | $ | — | $ | 512,510 | ||||||||||
Depreciation and amortization | $ | 69,118 | $ | 73,408 | $ | 6,258 | $ | — | $ | 148,784 | ||||||||||
Total assets at February 28, 2015 | $ | 4,322,316 | $ | 8,237,930 | $ | 3,412,797 | $ | — | $ | 15,973,043 | ||||||||||
Energy | Ag | Corporate | Reconciling | Total | ||||||||||||||||
and Other | Amounts | |||||||||||||||||||
For the Six Months Ended February 28, 2014: | ||||||||||||||||||||
Revenues | $ | 6,202,509 | $ | 14,764,699 | $ | 34,208 | $ | (295,021 | ) | $ | 20,706,395 | |||||||||
Cost of goods sold | 5,748,029 | 14,411,048 | (11 | ) | (295,021 | ) | 19,864,045 | |||||||||||||
Gross profit | 454,480 | 353,651 | 34,219 | — | 842,350 | |||||||||||||||
Marketing, general and administrative | 70,097 | 186,768 | 32,047 | — | 288,912 | |||||||||||||||
Operating earnings (losses) | 384,383 | 166,883 | 2,172 | — | 553,438 | |||||||||||||||
(Gain) loss on investments | — | 116 | (2,725 | ) | — | (2,609 | ) | |||||||||||||
Interest, net | 31,022 | 24,287 | 4,465 | — | 59,774 | |||||||||||||||
Equity (income) loss from investments | (2,157 | ) | (14,690 | ) | (46,880 | ) | — | (63,727 | ) | |||||||||||
Income before income taxes | $ | 355,518 | $ | 157,170 | $ | 47,312 | $ | — | $ | 560,000 | ||||||||||
Intersegment revenues | $ | (295,021 | ) | $ | — | $ | — | $ | 295,021 | $ | — | |||||||||
Capital expenditures | $ | 221,742 | $ | 159,810 | $ | 7,985 | $ | — | $ | 389,537 | ||||||||||
Depreciation and amortization | $ | 66,174 | $ | 55,603 | $ | 5,422 | $ | — | $ | 127,199 | ||||||||||
Total assets at February 28, 2014 | $ | 4,091,794 | $ | 7,678,688 | $ | 2,533,775 | $ | — | $ | 14,304,257 | ||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 6 Months Ended | |||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||
Derivative Financial Instruments and Hedging Activities [Abstract] | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments and Hedging Activities | |||||||||||||||||
Our derivative instruments primarily consist of commodity and freight futures and forward contracts and, to a minor degree, may include foreign currency and interest rate swap contracts. These contracts are economic hedges of price risk, but are not designated or accounted for as hedging instruments for accounting purposes, with the exception of certain interest rate swap contracts which are accounted for as cash flow or fair value hedges. Derivative instruments are recorded on our Consolidated Balance Sheets at fair value as discussed in Note 12, Fair Value Measurements. | ||||||||||||||||||
The following tables present the gross fair values of derivative assets, derivative liabilities, and margin deposits (cash collateral) recorded on the Consolidated Balance Sheets along with the related amounts permitted to be offset in accordance with GAAP. We have elected not to offset derivative assets and liabilities when we have the right of offset under FASB ASC Topic 210-20, Balance Sheet - Offsetting; or when the instruments are subject to master netting arrangements under ASC Topic 815-10-45, Derivatives and Hedging - Overall. | ||||||||||||||||||
February 28, 2015 | ||||||||||||||||||
Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting | ||||||||||||||||||
Gross Amounts Recognized | Cash Collateral | Derivative Instruments | Net Amounts | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Derivative Assets: | ||||||||||||||||||
Commodity and freight derivatives | $ | 595,994 | $ | — | $ | 131,627 | $ | 464,367 | ||||||||||
Foreign exchange derivatives | 5,620 | — | 787 | 4,833 | ||||||||||||||
Interest rate derivatives - hedge | 12,390 | — | — | 12,390 | ||||||||||||||
Total | $ | 614,004 | $ | — | $ | 132,414 | $ | 481,590 | ||||||||||
Derivative Liabilities: | ||||||||||||||||||
Commodity and freight derivatives | $ | 464,985 | $ | 1,279 | $ | 131,627 | $ | 332,079 | ||||||||||
Foreign exchange derivatives | 13,215 | — | 787 | 12,428 | ||||||||||||||
Interest rate derivatives - hedge | 4,296 | — | — | 4,296 | ||||||||||||||
Interest rate derivatives - non-hedge | 94 | — | — | 94 | ||||||||||||||
Total | $ | 482,590 | $ | 1,279 | $ | 132,414 | $ | 348,897 | ||||||||||
August 31, 2014 | ||||||||||||||||||
Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting | ||||||||||||||||||
Gross Amounts Recognized | Cash Collateral | Derivative Instruments | Net Amounts | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Derivative Assets: | ||||||||||||||||||
Commodity and freight derivatives | $ | 597,210 | $ | — | $ | 42,229 | $ | 554,981 | ||||||||||
Foreign exchange derivatives | 2,523 | — | 1,174 | 1,349 | ||||||||||||||
Interest rate derivatives - hedge | 4,200 | — | — | 4,200 | ||||||||||||||
Total | $ | 603,933 | $ | — | $ | 43,403 | $ | 560,530 | ||||||||||
Derivative Liabilities: | ||||||||||||||||||
Commodity and freight derivatives | $ | 597,612 | $ | 2,504 | $ | 42,229 | $ | 552,879 | ||||||||||
Foreign exchange derivatives | 2,248 | — | 1,174 | 1,074 | ||||||||||||||
Interest rate derivatives - non-hedge | 130 | — | — | 130 | ||||||||||||||
Total | $ | 599,990 | $ | 2,504 | $ | 43,403 | $ | 554,083 | ||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||
The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three and six months ended February 28, 2015 and 2014. | ||||||||||||||||||
For the Three Months Ended February 28, | For the Six Months Ended February 28, | |||||||||||||||||
Location of | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Gain (Loss) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Commodity and freight derivatives | Cost of goods sold | $ | 208,794 | $ | 81,210 | $ | 212,793 | $ | 61,421 | |||||||||
Foreign exchange derivatives | Cost of goods sold | (12,525 | ) | (1,581 | ) | (10,114 | ) | (2,003 | ) | |||||||||
Interest rate derivatives | Interest, net | 45 | 52 | 74 | 51 | |||||||||||||
Total | $ | 196,314 | $ | 79,681 | $ | 202,753 | $ | 59,469 | ||||||||||
Commodity and Freight Contracts: | ||||||||||||||||||
As of February 28, 2015 and August 31, 2014, we had the following outstanding purchase and sales contracts: | ||||||||||||||||||
28-Feb-15 | 31-Aug-14 | |||||||||||||||||
Purchase | Sales | Purchase | Sales | |||||||||||||||
Contracts | Contracts | Contracts | Contracts | |||||||||||||||
(Units in thousands) | ||||||||||||||||||
Grain and oilseed - bushels | 716,952 | 1,380,157 | 665,690 | 938,140 | ||||||||||||||
Energy products - barrels | 57,686 | 55,030 | 27,754 | 50,450 | ||||||||||||||
Soy products - tons | 4,192 | 3,660 | 37 | 1,212 | ||||||||||||||
Crop nutrients - tons | 134 | 3,091 | 1,613 | 1,607 | ||||||||||||||
Ocean and barge freight - metric tons | 5,006 | 3,308 | 5,423 | 4,005 | ||||||||||||||
Rail freight - rail cars | 202 | 117 | 321 | 186 | ||||||||||||||
Livestock - pounds | 21,320 | 200 | — | 46,280 | ||||||||||||||
Foreign Exchange Contracts: | ||||||||||||||||||
We conduct a substantial portion of our business in U.S. dollars, except for some grain marketing transactions primarily in South America and Europe, and purchases of products from Canada. We have minimal risk relating to foreign currency fluctuations, as substantially all international sales are denominated in U.S. dollars. From time to time, we enter into foreign currency futures contracts to mitigate currency fluctuations. Although our overall risk relating to foreign currency fluctuations is minimal, these fluctuations do, however, impact the ability of foreign buyers to purchase U.S. agricultural products and the competitiveness of U.S. agricultural products compared to the same products offered by alternative sources of world supply. As of February 28, 2015, we had $5.6 million included in derivative assets and $13.2 million included in derivative liabilities associated with foreign currency contracts. | ||||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||||
CHS Capital, our wholly-owned finance subsidiary, has interest rate swaps that lock the interest rates of underlying loans with a combined notional amount of $3.9 million expiring at various times through fiscal 2018, with $0.1 million of the notional amount expiring during fiscal 2015. None of CHS Capital’s interest rate swaps qualify for hedge accounting and as a result, changes in fair value are recorded in earnings within interest, net in our Consolidated Statements of Operations. | ||||||||||||||||||
Derivatives Designated as Cash Flow or Fair Value Hedging Strategies | ||||||||||||||||||
As of February 28, 2015 and August 31, 2014, we have certain derivatives designated as cash flow and fair value hedges. | ||||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||||
We have outstanding interest rate swaps with an aggregate notional amount of $420.0 million designated as fair value hedges of portions of our fixed-rate debt. Our objective in entering into these transactions is to offset changes in the fair value of the debt associated with the risk of variability in the 3-month U.S. dollar LIBOR interest rate, in essence converting the fixed-rate debt to variable-rate debt. Offsetting changes in the fair values of both the swap instruments and the hedged debt are recorded contemporaneously each period and only create an impact to earnings to the extent that the hedge is ineffective. During the six months ended February 28, 2015, we recorded offsetting fair value adjustments of $8.2 million, with no ineffectiveness recorded in earnings. | ||||||||||||||||||
During the six months ended February 28, 2015, we entered into interest rate swaps with an aggregate notional amount of $300.0 million designated as cash flow hedges of the expected variability of future interest payments on our anticipated issuance of fixed-rate debt. The swaps expire in fiscal 2016 with no amounts expected to be included in earnings during the next 12 months. | ||||||||||||||||||
In fiscal 2013, we entered into interest rate swaps designated as cash flow hedges of the expected variability of future interest payments on the forecasted issuance of fixed-rate debt. Gains and losses related to these swaps were initially recorded in accumulated other comprehensive income. In February 2014, the swaps were terminated as the issuance of the underlying debt was no longer probable and, as a result, a $13.5 million pre-tax gain was reclassified into net income in that period. | ||||||||||||||||||
The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three and six months ended February 28, 2015 and 2014. | ||||||||||||||||||
For the Three Months Ended February 28, | For the Six Months Ended February 28, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Interest rate derivatives | $ | (3,702 | ) | $ | (5,299 | ) | $ | (4,296 | ) | $ | (10,580 | ) | ||||||
The following table presents the pretax gains (losses) relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into income for the three and six months ended February 28, 2015 and 2014. | ||||||||||||||||||
For the Three Months Ended February 28, | For the Six Months Ended February 28, | |||||||||||||||||
Location of | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Gain (Loss) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Interest rate derivatives | Interest income (expense) | $ | (199 | ) | $ | 13,360 | $ | (402 | ) | $ | 13,143 | |||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||
Feb. 28, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
The following tables present assets and liabilities, included on our Consolidated Balance Sheets, that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair values. Assets and liabilities are classified, in their entirety, based on the lowest level of input that is a significant component of the fair value measurement. The lowest level of input is considered Level 3. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. | ||||||||||||||||
Recurring fair value measurements at February 28, 2015 and August 31, 2014 are as follows: | ||||||||||||||||
28-Feb-15 | ||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Readily marketable inventories | $ | — | $ | 1,246,484 | $ | — | $ | 1,246,484 | ||||||||
Commodity and freight derivatives | 126,415 | 469,579 | — | 595,994 | ||||||||||||
Foreign currency derivatives | 5,620 | — | — | 5,620 | ||||||||||||
Interest rate swap derivatives | — | 12,390 | — | 12,390 | ||||||||||||
Deferred compensation assets | 84,479 | — | — | 84,479 | ||||||||||||
Other assets | 11,013 | — | — | 11,013 | ||||||||||||
Total | $ | 227,527 | $ | 1,728,453 | $ | — | $ | 1,955,980 | ||||||||
Liabilities: | ||||||||||||||||
Commodity and freight derivatives | $ | 157,780 | $ | 307,205 | $ | — | $ | 464,985 | ||||||||
Interest rate swap derivatives | — | 4,390 | — | 4,390 | ||||||||||||
Foreign currency derivatives | 13,215 | — | — | 13,215 | ||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | — | — | 121,070 | 121,070 | ||||||||||||
Total | $ | 170,995 | $ | 311,595 | $ | 121,070 | $ | 603,660 | ||||||||
August 31, 2014 | ||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Readily marketable inventories | $ | — | $ | 921,554 | $ | — | $ | 921,554 | ||||||||
Commodity and freight derivatives | 78,590 | 518,620 | — | 597,210 | ||||||||||||
Interest rate swap derivatives | — | 4,200 | — | 4,200 | ||||||||||||
Foreign currency derivatives | 2,523 | — | — | 2,523 | ||||||||||||
Deferred compensation assets | 83,217 | — | — | 83,217 | ||||||||||||
Other assets | 8,778 | — | — | 8,778 | ||||||||||||
Total | $ | 173,108 | $ | 1,444,374 | $ | — | $ | 1,617,482 | ||||||||
Liabilities: | ||||||||||||||||
Commodity and freight derivatives | $ | 117,690 | $ | 479,922 | $ | — | $ | 597,612 | ||||||||
Interest rate swap derivatives | — | 130 | — | 130 | ||||||||||||
Foreign currency derivatives | 2,248 | — | — | 2,248 | ||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | — | — | 114,917 | 114,917 | ||||||||||||
Total | $ | 119,938 | $ | 480,052 | $ | 114,917 | $ | 714,907 | ||||||||
Readily marketable inventories — Our readily marketable inventories primarily include grain, oilseed, and minimally processed soy-based inventories that are stated at fair values. These commodities are readily marketable, have quoted market prices and may be sold without significant additional processing. We estimate the fair market values of these inventories included in Level 2 primarily based on exchange quoted prices, adjusted for differences in local markets. Changes in the fair market values of these inventories are recognized in our Consolidated Statements of Operations as a component of cost of goods sold. | ||||||||||||||||
Commodity, freight and foreign currency derivatives — Exchange traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. Our forward commodity purchase and sales contracts, flat price or basis fixed derivative contracts, ocean freight contracts and other OTC derivatives are determined using inputs that are generally based on exchange traded prices and/or recent market bids and offers, adjusted for location specific inputs, and are classified within Level 2. The location specific inputs are generally broker or dealer quotations, or market transactions in either the listed or OTC markets. Changes in the fair values of these contracts are recognized in our Consolidated Statements of Operations as a component of cost of goods sold. | ||||||||||||||||
Interest rate swap derivatives — Fair values of our interest rate swap liabilities are determined utilizing valuation models that are widely accepted in the market to value such OTC derivative contracts. The specific terms of the contracts, as well as market observable inputs, such as interest rates and credit risk assumptions, are factored into the models. As all significant inputs are market observable, all interest rate swaps are classified within Level 2. Changes in the fair values of contracts not designated as hedging instruments for accounting purposes are recognized in our Consolidated Statements of Operations as a component of interest, net. See Note 11, Derivative Financial Instruments and Hedging Activities for additional information about interest rate swaps designated as fair value and cash flow hedges. | ||||||||||||||||
Deferred compensation and other assets — Our deferred compensation investments, Rabbi Trust assets and available-for-sale investments in common stock of other companies are valued based on unadjusted quoted prices on active exchanges and are classified within Level 1. Changes in the fair values of these other assets are primarily recognized in our Consolidated Statements of Operations as a component of marketing, general and administrative expenses. | ||||||||||||||||
Accrued liability for contingent crack spread payment related to purchase of noncontrolling interests — The fair value of the accrued contingent consideration liability was calculated utilizing an average price option model, an adjusted Black-Scholes pricing model commonly used in the energy industry to value options. The model uses market observable inputs and unobservable inputs. Due to significant unobservable inputs used in the pricing model, the liability is classified within Level 3. | ||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
Fair Value | Range | |||||||||||||||
Item | 28-Feb-15 | Valuation Technique | Unobservable Input | (Weighted Average) | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | $121,070 | Adjusted Black-Scholes option pricing model | Forward crack spread margin on February 28, 2015 (a) | $20.78-$21.79 ($21.55) | ||||||||||||
Contractual target crack spread margin (b) | $17.50 | |||||||||||||||
Expected volatility (c) | 165.25% | |||||||||||||||
Risk-free interest rate (d) | 0.09%-0.94% (0.53%) | |||||||||||||||
Expected life - years (e) | 0.50-2.50 (1.57) | |||||||||||||||
(a) Represents forward crack spread margin quotes and management estimates based on future settlement dates | ||||||||||||||||
(b) Represents the minimum contractual threshold that would require settlement with the counterparties | ||||||||||||||||
(c) Represents quarterly adjusted volatility estimates derived from daily historical market data | ||||||||||||||||
(d) Represents yield curves for U.S. Treasury securities | ||||||||||||||||
(e) Represents the range in the number of years remaining related to each contingent payment | ||||||||||||||||
Valuation processes for Level 3 measurements — Management is responsible for determining the fair value of our Level 3 financial instruments. Option pricing methods are utilized, as indicated above. Inputs used in the option pricing models are based on quotes obtained from third party vendors as well as management estimates for periods in which quotes cannot be obtained. Each reporting period, management reviews the unobservable inputs provided by third-party vendors for reasonableness utilizing relevant information available to us. Management also takes into consideration current and expected market trends and compares the liability’s fair value to hypothetical payments using known historical market data to assess reasonableness of the resulting fair value. | ||||||||||||||||
Sensitivity analysis of Level 3 measurements — The significant unobservable inputs that are susceptible to periodic fluctuations used in the fair value measurement of the accrued liability for contingent crack spread payments related to the purchase of noncontrolling interests are the adjusted forward crack spread margin and the expected volatility. Significant increases (decreases) in either of these inputs in isolation would result in a significantly higher (lower) fair value measurement. Although changes in the expected volatility are driven by fluctuations in the underlying crack spread margin, changes in expected volatility are not necessarily accompanied by a directionally similar change in the forward crack spread margin. Directional changes in the expected volatility can be affected by a multitude of factors including the magnitude of daily fluctuations in the underlying market data, market trends, timing of fluctuations, and other factors. | ||||||||||||||||
The following table represents a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the three months ended February 28, 2015 and 2014, respectively: | ||||||||||||||||
Level 3 Liabilities | ||||||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | ||||||||||||||||
2015 | 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balances, November 30, 2014 and 2013, respectively | $ | 86,520 | $ | 150,991 | ||||||||||||
Total (gains) losses included in cost of goods sold | 34,550 | (10,360 | ) | |||||||||||||
Balances, February 28, 2015 and 2014, respectively | $ | 121,070 | $ | 140,631 | ||||||||||||
The following table represents a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the six months ended February 28, 2015 and 2014, respectively: | ||||||||||||||||
Level 3 Liabilities | ||||||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | ||||||||||||||||
2015 | 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balances, August 31, 2014 and 2013, respectively | $ | 114,917 | $ | 134,134 | ||||||||||||
Total (gains) losses included in cost of goods sold | 6,153 | 6,497 | ||||||||||||||
Balances, February 28, 2015 and 2014, respectively | $ | 121,070 | $ | 140,631 | ||||||||||||
There were no material transfers between Level 1, Level 2 and Level 3 assets and liabilities. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies | |||||||||||||||||||
Unconditional Purchase Obligations | ||||||||||||||||||||
Unconditional purchase obligations are commitments to transfer funds in the future for fixed or minimum amounts or quantities of goods or services at fixed or minimum prices. Our long-term unconditional purchase obligations primarily relate to pipeline and grain handling take-or-pay and through-put agreements, and are not recorded on our Consolidated Balance Sheets. Minimum future payments required under long-term unconditional purchase obligations as of February 28, 2015 are as follows: | ||||||||||||||||||||
Payments Due by Period | ||||||||||||||||||||
Total | Less than | 3-Jan | 5-Mar | More than | ||||||||||||||||
1 Year | Years | Years | 5 Years | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Long-term unconditional purchase obligations | $ | 1,051,453 | $ | 61,285 | $ | 170,393 | $ | 152,840 | $ | 666,935 | ||||||||||
The discounted, aggregate amount of the minimum required payments under long-term unconditional purchase obligations, based on current exchange rates at February 28, 2015 is $838.1 million. | ||||||||||||||||||||
Guarantees | ||||||||||||||||||||
We are a guarantor for lines of credit and performance obligations of related companies. As of February 28, 2015, our bank covenants allowed maximum guarantees of $1.0 billion, of which $117.6 million was outstanding. We have collateral for a portion of these contingent obligations. We have not recorded a liability related to the contingent obligations as we do not expect to pay out any cash related to them, and the fair values are considered immaterial. The underlying loans to the counterparties for which we provide guarantees are current as of February 28, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Our consolidated financial statements include the accounts of CHS and all of our wholly-owned and majority-owned subsidiaries and limited liability companies, including National Cooperative Refinery Association (NCRA) in our Energy segment. The effects of all significant intercompany transactions have been eliminated. |
Goodwill and Other Intangible Assets | In our Energy segment, major maintenance activities (turnarounds) at our two refineries are accounted for under the deferral method. Turnarounds are the scheduled and required shutdowns of refinery processing units. The costs related to the significant overhaul and refurbishment activities include materials and direct labor costs. The costs of turnarounds are deferred when incurred and amortized on a straight-line basis over the period of time estimated to lapse until the next turnaround occurs, which is generally 2 to 4 years. The amortization expense related to turnaround costs is included in cost of goods sold in our Consolidated Statements of Operations. The selection of the deferral method, as opposed to expensing the turnaround costs when incurred, results in deferring recognition of the turnaround expenditures. The deferral method also results in the classification of the related cash outflows as investing activities in our Consolidated Statements of Cash Flows, whereas expensing these costs as incurred, would result in classifying the cash outflows as operating activities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In February 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU No. 2015-02 amended the process that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU No. 2015-02 is effective for the annual period ending after December 15, 2015, and for annual periods and interim periods thereafter. Early application is permitted. We are currently evaluating the impact the adoption will have on our consolidated financial statements in fiscal 2017. | |
In November 2014, the FASB issued ASU No. 2014-16, "Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity." The amendments in this ASU do not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The ASU applies to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of ASU 2014-16 is not expected to have a material effect on our consolidated financial statements in fiscal 2016. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers." ASU No. 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good or services. The guidance also requires an entity to disclose sufficient qualitative and quantitative information surrounding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts from customers. This ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The amendments in this standard are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and we are currently evaluating the impact the adoption will have on our consolidated financial statements in fiscal 2018. |
Receivables_Tables
Receivables (Tables) | 6 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | ||||||||
February 28, 2015 | August 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Trade accounts receivable | $ | 1,659,243 | $ | 2,153,929 | ||||
CHS Capital notes receivable | 645,195 | 633,475 | ||||||
Other | 313,288 | 304,798 | ||||||
2,617,726 | 3,092,202 | |||||||
Less allowances and reserves | 102,877 | 103,639 | ||||||
Total receivables | $ | 2,514,849 | $ | 2,988,563 | ||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current | ||||||||
February 28, 2015 | August 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Grain and oilseed | $ | 1,444,271 | $ | 961,327 | ||||
Energy | 831,639 | 875,719 | ||||||
Crop nutrients | 479,320 | 374,023 | ||||||
Feed and farm supplies | 869,425 | 448,454 | ||||||
Processed grain and oilseed | 68,437 | 84,498 | ||||||
Other | 4,432 | 16,232 | ||||||
Total inventories | $ | 3,697,524 | $ | 2,760,253 | ||||
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | ||||||||||||||||||||||||
Energy | Ag | Corporate | Total | |||||||||||||||||||||
and Other | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Balances, August 31, 2014 | $ | 552 | $ | 151,246 | $ | 6,898 | $ | 158,696 | ||||||||||||||||
Goodwill acquired during the period | — | 388 | — | 388 | ||||||||||||||||||||
Effect of foreign currency translation adjustments | — | (4,217 | ) | — | (4,217 | ) | ||||||||||||||||||
Balances, February 28, 2015 | $ | 552 | $ | 147,417 | $ | 6,898 | $ | 154,867 | ||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Year 1 | $ | 7,089 | ||||||||||||||||||||||
Year 2 | 6,409 | |||||||||||||||||||||||
Year 3 | 4,802 | |||||||||||||||||||||||
Year 4 | 3,609 | |||||||||||||||||||||||
Year 5 | 3,489 | |||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ||||||||||||||||||||||||
February 28, | August 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Carrying Amount | Accumulated Amortization | Net | Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Customer lists | $ | 70,375 | $ | (28,472 | ) | $ | 41,903 | $ | 69,862 | $ | (26,114 | ) | $ | 43,748 | ||||||||||
Trademarks and other intangible assets | 42,402 | (30,853 | ) | 11,549 | 41,293 | (29,587 | ) | 11,706 | ||||||||||||||||
Total intangible assets | $ | 112,777 | $ | (59,325 | ) | $ | 53,452 | $ | 111,155 | $ | (55,701 | ) | $ | 55,454 | ||||||||||
Notes_Payable_and_LongTerm_Deb1
Notes Payable and Long-Term Debt (Tables) | 6 Months Ended | |||||||||||||||
Feb. 28, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of Long-term Debt Instruments | ||||||||||||||||
February 28, 2015 | August 31, 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Notes payable | $ | 1,015,783 | $ | 840,699 | ||||||||||||
CHS Capital notes payable | 345,832 | 318,774 | ||||||||||||||
Total notes payable | $ | 1,361,615 | $ | 1,159,473 | ||||||||||||
Schedule of Interest,Net | Interest, net for the three and six months ended February 28, 2015 and 2014 is as follows: | |||||||||||||||
For the Three Months Ended February 28, | For the Six Months Ended February 28, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest expense | $ | 19,574 | $ | 11,836 | $ | 40,610 | $ | 34,426 | ||||||||
Interest-purchase of NCRA noncontrolling interests | 4,860 | 21,273 | 18,928 | 32,397 | ||||||||||||
Capitalized interest | (12,706 | ) | (2,526 | ) | (24,611 | ) | (3,862 | ) | ||||||||
Interest income | (2,238 | ) | (1,594 | ) | (4,836 | ) | (3,187 | ) | ||||||||
Interest, net | $ | 9,490 | $ | 28,989 | $ | 30,091 | $ | 59,774 | ||||||||
We terminated interest rate swaps and recorded a resulting $13.5 million gain as a reduction to interest expense in our Consolidated Statements of Operations for the three and six months ended February 28, 2014. See Note 11, Derivative Financial Instruments and Hedging Activities for additional information. |
Equities_Tables
Equities (Tables) | 6 Months Ended | |||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the six months ended February 28, 2015: | |||||||||||||||||||
Pension and Other Postretirement Benefits | Unrealized Net Gain on Available for Sale Investments | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance as of August 31, 2014 | $ | (151,852 | ) | $ | 4,398 | $ | (2,722 | ) | $ | (6,581 | ) | $ | (156,757 | ) | ||||||
Current period other comprehensive income (loss), net of tax | 236 | 773 | (2,658 | ) | (11,008 | ) | (12,657 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 6,770 | — | 249 | — | 7,019 | |||||||||||||||
Net other comprehensive income (loss), net of tax | 7,006 | 773 | (2,409 | ) | (11,008 | ) | (5,638 | ) | ||||||||||||
Balance as of February 28, 2015 | $ | (144,846 | ) | $ | 5,171 | $ | (5,131 | ) | $ | (17,589 | ) | $ | (162,395 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) were primarily related to pension and other postretirement benefits and were recorded to net income. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts as disclosed in Note 9, Benefit Plans. | ||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | Changes in equities for the six months ended February 28, 2015 are as follows: |
Benefit_Plans_Schedule_of_Net_
Benefit Plans Schedule of Net Benefit Costs (Tables) | 6 Months Ended | |||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||
Schedule of Net Periodic Benefit Costs [Abstract] | ||||||||||||||||||||||||
Schedule of Net Benefit Costs of Assumptions Used [Table Text Block] | ||||||||||||||||||||||||
Qualified | Non-Qualified | Other Benefits | ||||||||||||||||||||||
Pension Benefits | Pension Benefits | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Components of net periodic benefit costs for the three months ended February 28 are as follows: | (Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 9,058 | $ | 7,802 | $ | 225 | $ | 248 | $ | 474 | $ | 476 | ||||||||||||
Interest cost | 7,002 | 8,240 | 352 | 486 | 415 | 502 | ||||||||||||||||||
Expected return on assets | (12,436 | ) | (11,082 | ) | — | — | — | — | ||||||||||||||||
Prior service cost (credit) amortization | 409 | 398 | 57 | 57 | (30 | ) | (30 | ) | ||||||||||||||||
Actuarial (gain) loss amortization | 4,907 | 4,445 | 261 | 241 | (106 | ) | (311 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 8,940 | $ | 9,803 | $ | 895 | $ | 1,032 | $ | 753 | $ | 637 | ||||||||||||
Components of net periodic benefit costs for the six months ended February 28 are as follows: | ||||||||||||||||||||||||
Service cost | $ | 18,116 | $ | 15,269 | $ | 450 | $ | 427 | $ | 946 | $ | 958 | ||||||||||||
Interest cost | 14,016 | 14,938 | 704 | 822 | 830 | 1,021 | ||||||||||||||||||
Expected return on assets | (24,874 | ) | (23,816 | ) | — | — | — | — | ||||||||||||||||
Prior service cost (credit) amortization | 816 | 797 | 114 | 114 | (60 | ) | (60 | ) | ||||||||||||||||
Actuarial (gain) loss amortization | 9,808 | 9,089 | 522 | 468 | (211 | ) | (187 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 17,882 | $ | 16,277 | $ | 1,790 | $ | 1,831 | $ | 1,505 | $ | 1,732 | ||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | |||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment information for the three and six months ended February 28, 2015 and 2014 is as follows: | |||||||||||||||||||
Energy | Ag | Corporate | Reconciling | Total | ||||||||||||||||
and Other | Amounts | |||||||||||||||||||
For the Three Months Ended February 28, 2015: | (Dollars in thousands) | |||||||||||||||||||
Revenues | $ | 1,947,297 | $ | 6,501,280 | $ | 16,803 | $ | (109,652 | ) | $ | 8,355,728 | |||||||||
Cost of goods sold | 1,894,418 | 6,326,607 | (8 | ) | (109,652 | ) | 8,111,365 | |||||||||||||
Gross profit | 52,879 | 174,673 | 16,811 | — | 244,363 | |||||||||||||||
Marketing, general and administrative | 46,758 | 106,671 | 17,346 | — | 170,775 | |||||||||||||||
Operating earnings (losses) | 6,121 | 68,002 | (535 | ) | — | 73,588 | ||||||||||||||
(Gain) loss on investments | — | — | (2,199 | ) | — | (2,199 | ) | |||||||||||||
Interest, net | (7,264 | ) | 14,399 | 2,355 | — | 9,490 | ||||||||||||||
Equity (income) loss from investments | (736 | ) | (4,442 | ) | (18,991 | ) | — | (24,169 | ) | |||||||||||
Income before income taxes | $ | 14,121 | $ | 58,045 | $ | 18,300 | $ | — | $ | 90,466 | ||||||||||
Intersegment revenues | $ | (105,567 | ) | $ | (4,085 | ) | $ | — | $ | 109,652 | $ | — | ||||||||
Energy | Ag | Corporate | Reconciling | Total | ||||||||||||||||
and Other | Amounts | |||||||||||||||||||
For the Three Months Ended February 28, 2014: | ||||||||||||||||||||
Revenues | $ | 2,961,193 | $ | 6,833,365 | $ | 17,445 | $ | (131,729 | ) | $ | 9,680,274 | |||||||||
Cost of goods sold | 2,676,335 | 6,694,245 | (11 | ) | (131,729 | ) | 9,238,840 | |||||||||||||
Gross profit | 284,858 | 139,120 | 17,456 | — | 441,434 | |||||||||||||||
Marketing, general and administrative | 38,042 | 99,985 | 17,744 | — | 155,771 | |||||||||||||||
Operating earnings (losses) | 246,816 | 39,135 | (288 | ) | — | 285,663 | ||||||||||||||
(Gain) loss on investments | — | 116 | (2,725 | ) | — | (2,609 | ) | |||||||||||||
Interest, net | 18,578 | 9,190 | 1,221 | — | 28,989 | |||||||||||||||
Equity (income) loss from investments | (849 | ) | (8,213 | ) | (21,987 | ) | — | (31,049 | ) | |||||||||||
Income before income taxes | $ | 229,087 | $ | 38,042 | $ | 23,203 | $ | — | $ | 290,332 | ||||||||||
Intersegment revenues | $ | (131,729 | ) | $ | — | $ | — | $ | 131,729 | $ | — | |||||||||
Energy | Ag | Corporate | Reconciling | Total | ||||||||||||||||
and Other | Amounts | |||||||||||||||||||
For the Six Months Ended February 28, 2015: | ||||||||||||||||||||
Revenues | $ | 4,965,750 | $ | 13,143,319 | $ | 35,796 | $ | (289,669 | ) | $ | 17,855,196 | |||||||||
Cost of goods sold | 4,598,852 | 12,710,939 | (12 | ) | (289,669 | ) | 17,020,110 | |||||||||||||
Gross profit | 366,898 | 432,380 | 35,808 | — | 835,086 | |||||||||||||||
Marketing, general and administrative | 80,126 | 210,548 | 42,069 | — | 332,743 | |||||||||||||||
Operating earnings (losses) | 286,772 | 221,832 | (6,261 | ) | — | 502,343 | ||||||||||||||
(Gain) loss on investments | — | (2,875 | ) | (2,199 | ) | — | (5,074 | ) | ||||||||||||
Interest, net | (3,443 | ) | 28,806 | 4,728 | — | 30,091 | ||||||||||||||
Equity (income) loss from investments | (1,076 | ) | (4,463 | ) | (43,259 | ) | — | (48,798 | ) | |||||||||||
Income before income taxes | $ | 291,291 | $ | 200,364 | $ | 34,469 | $ | — | $ | 526,124 | ||||||||||
Intersegment revenues | $ | (280,520 | ) | $ | (9,149 | ) | $ | — | $ | 289,669 | $ | — | ||||||||
Capital expenditures | $ | 273,989 | $ | 212,140 | $ | 26,381 | $ | — | $ | 512,510 | ||||||||||
Depreciation and amortization | $ | 69,118 | $ | 73,408 | $ | 6,258 | $ | — | $ | 148,784 | ||||||||||
Total assets at February 28, 2015 | $ | 4,322,316 | $ | 8,237,930 | $ | 3,412,797 | $ | — | $ | 15,973,043 | ||||||||||
Energy | Ag | Corporate | Reconciling | Total | ||||||||||||||||
and Other | Amounts | |||||||||||||||||||
For the Six Months Ended February 28, 2014: | ||||||||||||||||||||
Revenues | $ | 6,202,509 | $ | 14,764,699 | $ | 34,208 | $ | (295,021 | ) | $ | 20,706,395 | |||||||||
Cost of goods sold | 5,748,029 | 14,411,048 | (11 | ) | (295,021 | ) | 19,864,045 | |||||||||||||
Gross profit | 454,480 | 353,651 | 34,219 | — | 842,350 | |||||||||||||||
Marketing, general and administrative | 70,097 | 186,768 | 32,047 | — | 288,912 | |||||||||||||||
Operating earnings (losses) | 384,383 | 166,883 | 2,172 | — | 553,438 | |||||||||||||||
(Gain) loss on investments | — | 116 | (2,725 | ) | — | (2,609 | ) | |||||||||||||
Interest, net | 31,022 | 24,287 | 4,465 | — | 59,774 | |||||||||||||||
Equity (income) loss from investments | (2,157 | ) | (14,690 | ) | (46,880 | ) | — | (63,727 | ) | |||||||||||
Income before income taxes | $ | 355,518 | $ | 157,170 | $ | 47,312 | $ | — | $ | 560,000 | ||||||||||
Intersegment revenues | $ | (295,021 | ) | $ | — | $ | — | $ | 295,021 | $ | — | |||||||||
Capital expenditures | $ | 221,742 | $ | 159,810 | $ | 7,985 | $ | — | $ | 389,537 | ||||||||||
Depreciation and amortization | $ | 66,174 | $ | 55,603 | $ | 5,422 | $ | — | $ | 127,199 | ||||||||||
Total assets at February 28, 2014 | $ | 4,091,794 | $ | 7,678,688 | $ | 2,533,775 | $ | — | $ | 14,304,257 | ||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities Derivative Financial Insturments and Hedging Activities (Tables) | 6 Months Ended | |||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Derivatives Not Designated as Hedging Instruments | |||||||||||||||||
The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three and six months ended February 28, 2015 and 2014. | ||||||||||||||||||
For the Three Months Ended February 28, | For the Six Months Ended February 28, | |||||||||||||||||
Location of | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Gain (Loss) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Commodity and freight derivatives | Cost of goods sold | $ | 208,794 | $ | 81,210 | $ | 212,793 | $ | 61,421 | |||||||||
Foreign exchange derivatives | Cost of goods sold | (12,525 | ) | (1,581 | ) | (10,114 | ) | (2,003 | ) | |||||||||
Interest rate derivatives | Interest, net | 45 | 52 | 74 | 51 | |||||||||||||
Total | $ | 196,314 | $ | 79,681 | $ | 202,753 | $ | 59,469 | ||||||||||
Schedule of Derivative Instruments, Purchase and Sales Contracts [Table Text Block] | As of February 28, 2015 and August 31, 2014, we had the following outstanding purchase and sales contracts: | |||||||||||||||||
28-Feb-15 | 31-Aug-14 | |||||||||||||||||
Purchase | Sales | Purchase | Sales | |||||||||||||||
Contracts | Contracts | Contracts | Contracts | |||||||||||||||
(Units in thousands) | ||||||||||||||||||
Grain and oilseed - bushels | 716,952 | 1,380,157 | 665,690 | 938,140 | ||||||||||||||
Energy products - barrels | 57,686 | 55,030 | 27,754 | 50,450 | ||||||||||||||
Soy products - tons | 4,192 | 3,660 | 37 | 1,212 | ||||||||||||||
Crop nutrients - tons | 134 | 3,091 | 1,613 | 1,607 | ||||||||||||||
Ocean and barge freight - metric tons | 5,006 | 3,308 | 5,423 | 4,005 | ||||||||||||||
Rail freight - rail cars | 202 | 117 | 321 | 186 | ||||||||||||||
Livestock - pounds | 21,320 | 200 | — | 46,280 | ||||||||||||||
Reconciliation of gross and net fair values of assets and liabilities subject to offsetting arrangements [Table Text Block] | ||||||||||||||||||
August 31, 2014 | ||||||||||||||||||
Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting | ||||||||||||||||||
Gross Amounts Recognized | Cash Collateral | Derivative Instruments | Net Amounts | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Derivative Assets: | ||||||||||||||||||
Commodity and freight derivatives | $ | 597,210 | $ | — | $ | 42,229 | $ | 554,981 | ||||||||||
Foreign exchange derivatives | 2,523 | — | 1,174 | 1,349 | ||||||||||||||
Interest rate derivatives - hedge | 4,200 | — | — | 4,200 | ||||||||||||||
Total | $ | 603,933 | $ | — | $ | 43,403 | $ | 560,530 | ||||||||||
Derivative Liabilities: | ||||||||||||||||||
Commodity and freight derivatives | $ | 597,612 | $ | 2,504 | $ | 42,229 | $ | 552,879 | ||||||||||
Foreign exchange derivatives | 2,248 | — | 1,174 | 1,074 | ||||||||||||||
Interest rate derivatives - non-hedge | 130 | — | — | 130 | ||||||||||||||
Total | $ | 599,990 | $ | 2,504 | $ | 43,403 | $ | 554,083 | ||||||||||
February 28, 2015 | ||||||||||||||||||
Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting | ||||||||||||||||||
Gross Amounts Recognized | Cash Collateral | Derivative Instruments | Net Amounts | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Derivative Assets: | ||||||||||||||||||
Commodity and freight derivatives | $ | 595,994 | $ | — | $ | 131,627 | $ | 464,367 | ||||||||||
Foreign exchange derivatives | 5,620 | — | 787 | 4,833 | ||||||||||||||
Interest rate derivatives - hedge | 12,390 | — | — | 12,390 | ||||||||||||||
Total | $ | 614,004 | $ | — | $ | 132,414 | $ | 481,590 | ||||||||||
Derivative Liabilities: | ||||||||||||||||||
Commodity and freight derivatives | $ | 464,985 | $ | 1,279 | $ | 131,627 | $ | 332,079 | ||||||||||
Foreign exchange derivatives | 13,215 | — | 787 | 12,428 | ||||||||||||||
Interest rate derivatives - hedge | 4,296 | — | — | 4,296 | ||||||||||||||
Interest rate derivatives - non-hedge | 94 | — | — | 94 | ||||||||||||||
Total | $ | 482,590 | $ | 1,279 | $ | 132,414 | $ | 348,897 | ||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three and six months ended February 28, 2015 and 2014. | |||||||||||||||||
For the Three Months Ended February 28, | For the Six Months Ended February 28, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Interest rate derivatives | $ | (3,702 | ) | $ | (5,299 | ) | $ | (4,296 | ) | $ | (10,580 | ) | ||||||
The following table presents the pretax gains (losses) relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into income for the three and six months ended February 28, 2015 and 2014. | ||||||||||||||||||
For the Three Months Ended February 28, | For the Six Months Ended February 28, | |||||||||||||||||
Location of | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Gain (Loss) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Interest rate derivatives | Interest income (expense) | $ | (199 | ) | $ | 13,360 | $ | (402 | ) | $ | 13,143 | |||||||
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Operations | During the six months ended February 28, 2015, we recorded offsetting fair value adjustments of $8.2 million, with no ineffectiveness recorded in earnings. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Feb. 28, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | ||||||||||||||||
28-Feb-15 | ||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Readily marketable inventories | $ | — | $ | 1,246,484 | $ | — | $ | 1,246,484 | ||||||||
Commodity and freight derivatives | 126,415 | 469,579 | — | 595,994 | ||||||||||||
Foreign currency derivatives | 5,620 | — | — | 5,620 | ||||||||||||
Interest rate swap derivatives | — | 12,390 | — | 12,390 | ||||||||||||
Deferred compensation assets | 84,479 | — | — | 84,479 | ||||||||||||
Other assets | 11,013 | — | — | 11,013 | ||||||||||||
Total | $ | 227,527 | $ | 1,728,453 | $ | — | $ | 1,955,980 | ||||||||
Liabilities: | ||||||||||||||||
Commodity and freight derivatives | $ | 157,780 | $ | 307,205 | $ | — | $ | 464,985 | ||||||||
Interest rate swap derivatives | — | 4,390 | — | 4,390 | ||||||||||||
Foreign currency derivatives | 13,215 | — | — | 13,215 | ||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | — | — | 121,070 | 121,070 | ||||||||||||
Total | $ | 170,995 | $ | 311,595 | $ | 121,070 | $ | 603,660 | ||||||||
August 31, 2014 | ||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Readily marketable inventories | $ | — | $ | 921,554 | $ | — | $ | 921,554 | ||||||||
Commodity and freight derivatives | 78,590 | 518,620 | — | 597,210 | ||||||||||||
Interest rate swap derivatives | — | 4,200 | — | 4,200 | ||||||||||||
Foreign currency derivatives | 2,523 | — | — | 2,523 | ||||||||||||
Deferred compensation assets | 83,217 | — | — | 83,217 | ||||||||||||
Other assets | 8,778 | — | — | 8,778 | ||||||||||||
Total | $ | 173,108 | $ | 1,444,374 | $ | — | $ | 1,617,482 | ||||||||
Liabilities: | ||||||||||||||||
Commodity and freight derivatives | $ | 117,690 | $ | 479,922 | $ | — | $ | 597,612 | ||||||||
Interest rate swap derivatives | — | 130 | — | 130 | ||||||||||||
Foreign currency derivatives | 2,248 | — | — | 2,248 | ||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | — | — | 114,917 | 114,917 | ||||||||||||
Total | $ | 119,938 | $ | 480,052 | $ | 114,917 | $ | 714,907 | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information | ||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
Fair Value | Range | |||||||||||||||
Item | 28-Feb-15 | Valuation Technique | Unobservable Input | (Weighted Average) | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | $121,070 | Adjusted Black-Scholes option pricing model | Forward crack spread margin on February 28, 2015 (a) | $20.78-$21.79 ($21.55) | ||||||||||||
Contractual target crack spread margin (b) | $17.50 | |||||||||||||||
Expected volatility (c) | 165.25% | |||||||||||||||
Risk-free interest rate (d) | 0.09%-0.94% (0.53%) | |||||||||||||||
Expected life - years (e) | 0.50-2.50 (1.57) | |||||||||||||||
(a) Represents forward crack spread margin quotes and management estimates based on future settlement dates | ||||||||||||||||
(b) Represents the minimum contractual threshold that would require settlement with the counterparties | ||||||||||||||||
(c) Represents quarterly adjusted volatility estimates derived from daily historical market data | ||||||||||||||||
(d) Represents yield curves for U.S. Treasury securities | ||||||||||||||||
(e) Represents the range in the number of years remaining related to each contingent payment | ||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table represents a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the three months ended February 28, 2015 and 2014, respectively: | |||||||||||||||
Level 3 Liabilities | ||||||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | ||||||||||||||||
2015 | 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balances, November 30, 2014 and 2013, respectively | $ | 86,520 | $ | 150,991 | ||||||||||||
Total (gains) losses included in cost of goods sold | 34,550 | (10,360 | ) | |||||||||||||
Balances, February 28, 2015 and 2014, respectively | $ | 121,070 | $ | 140,631 | ||||||||||||
The following table represents a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the six months ended February 28, 2015 and 2014, respectively: | ||||||||||||||||
Level 3 Liabilities | ||||||||||||||||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests | ||||||||||||||||
2015 | 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balances, August 31, 2014 and 2013, respectively | $ | 114,917 | $ | 134,134 | ||||||||||||
Total (gains) losses included in cost of goods sold | 6,153 | 6,497 | ||||||||||||||
Balances, February 28, 2015 and 2014, respectively | $ | 121,070 | $ | 140,631 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||||||||
Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block] | Minimum future payments required under long-term unconditional purchase obligations as of February 28, 2015 are as follows: | |||||||||||||||||||
Payments Due by Period | ||||||||||||||||||||
Total | Less than | 3-Jan | 5-Mar | More than | ||||||||||||||||
1 Year | Years | Years | 5 Years | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Long-term unconditional purchase obligations | $ | 1,051,453 | $ | 61,285 | $ | 170,393 | $ | 152,840 | $ | 666,935 | ||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Refineries | Refineries | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of Refineries | 2 | 2 | ||
Expenditures for Major Repairs | $8,347 | $0 | ||
Capitalized Maintenance Expense, Deferred During the Period | $7,200 | $0 | $8,300 | |
Minimum [Member] | Major Maintenance Activities Requiring Shutdown [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||
Maximum [Member] | Major Maintenance Activities Requiring Shutdown [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years |
Receivables_Schedule_of_Receiv
Receivables - Schedule of Receivables (Details) (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Trade accounts receivable | $1,659,243 | $2,153,929 |
CHS Capital notes receivable | 645,195 | 633,475 |
Other | 313,288 | 304,798 |
Receivables, gross | 2,617,726 | 3,092,202 |
Less allowances and reserves | 102,877 | 103,639 |
Receivables, net | $2,514,849 | $2,988,563 |
Receivables_Narrative_Details
Receivables - Narrative (Details) (USD $) | 6 Months Ended | |
Feb. 28, 2015 | Aug. 31, 2014 | |
Notes Receivable, Long-Term | ||
CHS Capital long-term notes receivable | $148,300,000 | $159,700,000 |
Percentage of commercial notes to CHS Capital long-term notes receivable | 51.00% | 46.00% |
Percentage of producer notes to CHS Capital long-term notes receivable | 49.00% | 54.00% |
Interest Income Accrual Term, Discontinued | 90 days | |
CHS Capital long-term notes receivable additional available credit of counterparty | $1,000,000,000 | |
Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes and Loans Receivable, Current, Term | 12 months | |
Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes and Loans Receivable, Current, Term | 14 months | |
Notes and Loans Receivable, Non Current, Net, Term | 10 years |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Details) (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Grain and Oilseed | $1,444,271 | $961,327 |
Energy | 831,639 | 875,719 |
Crop nutrients | 479,320 | 374,023 |
Feed and farm supplies | 869,425 | 448,454 |
Processed grain and oilseed | 68,437 | 84,498 |
Other | 4,432 | 16,232 |
Inventories | $3,697,524 | $2,760,253 |
Inventories_Narrative_Details
Inventories - Narrative (Details) (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Percentage of LIFO inventory | 14.00% | 16.00% |
LIFO inventory, difference amount had FIFO inventory valuation method been used | $147.60 | $538.70 |
Investments_Narrative_Details
Investments - Narrative (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Payments for Repurchase of Redeemable Noncontrolling Interest | ($65,981,000) | ($65,981,000) | |
Time Deposits | 315,000,000 | ||
Ardent Mills [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments redeemed | 121,200,000 | ||
Horizon Milling, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Additional Cash Contribution | 32,800,000 | ||
Gain (Loss) on Sale of Investments | 109,200,000 | ||
Ardent Mills LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 204,400,000 | ||
Ventura Foods, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 331,600,000 | ||
Equity value exceeding carrying value | 12,900,000 | ||
TEMCO, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 63,500,000 | ||
National Cooperative Refinery Association [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 88.90% | 84.00% | |
Payments for Repurchase of Redeemable Noncontrolling Interest | -66,000,000 | -66,000,000 | |
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interest | 121,070,000 | ||
Cargill, Inc. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership of joint venture partner | 50.00% | ||
Crack Spread Contingent Payment [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Business, Contingent Consideration Paid | $16,500,000 | ||
Corporate and Other | Ardent Mills [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 12.00% | ||
Corporate and Other | Ventura Foods, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Ag Business [Member] | TEMCO, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 3 Months Ended | 6 Months Ended | 14 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment | $4,404,578,000 | $4,404,578,000 | $4,404,578,000 | $4,031,023,000 | ||
Depreciation | 72,700,000 | 60,700,000 | 143,200,000 | 120,100,000 | ||
Construction in Progress [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Additions | 358,700,000 | |||||
Spiritwood [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction cost, estimate | 3,000,000,000 | |||||
Spiritwood [Member] | Asset under Construction [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Acquisition of property, plant and equipment | $68,400,000 |
Goodwill_and_Intangibles_Detai
Goodwill and Intangibles (Details) (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill | $154,867 | $158,696 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 7,089 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 6,409 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 4,802 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,609 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $3,489 |
Goodwill_and_Intangibles_Goodw
Goodwill and Intangibles Goodwill by Segment (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | Aug. 31, 2014 |
Goodwill [Line Items] | ||
Goodwill | $154,867 | $158,696 |
Goodwill, Acquired During Period | 388 | |
Goodwill, Translation Adjustments | -4,217 | |
Energy [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 552 | 552 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Translation Adjustments | 0 | |
Ag [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 147,417 | 151,246 |
Goodwill, Acquired During Period | 388 | |
Goodwill, Translation Adjustments | -4,217 | |
Corporate and Other | ||
Goodwill [Line Items] | ||
Goodwill | 6,898 | 6,898 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Translation Adjustments | $0 |
Goodwill_and_Intangibles_Intan
Goodwill and Intangibles Intangibles (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $1,800,000 | $2,600,000 | $3,600,000 | $4,900,000 | |
Other Intangible Assets [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||||
Other Intangible Assets [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 30 years | ||||
Customer Lists [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 70,375,000 | 70,375,000 | 69,862,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -28,472,000 | -28,472,000 | -26,114,000 | ||
Finite-Lived Intangible Assets, Net | 41,903,000 | 41,903,000 | 43,748,000 | ||
Trademarks [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 42,402,000 | 42,402,000 | 41,293,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -30,853,000 | -30,853,000 | -29,587,000 | ||
Finite-Lived Intangible Assets, Net | 11,549,000 | 11,549,000 | 11,706,000 | ||
Indefinite-lived Intangible Assets, Major Class Name [Domain] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 112,777,000 | 112,777,000 | 111,155,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -59,325,000 | -59,325,000 | -55,701,000 | ||
Finite-Lived Intangible Assets, Net | $53,452,000 | $53,452,000 | $55,454,000 |
Notes_Payable_and_LongTerm_Deb2
Notes Payable and Long-Term Debt - Footnote Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Notes payable | $1,361,615,000 | $1,159,473,000 | ||
CHS Capital notes payable | ||||
Debt Instrument [Line Items] | ||||
Notes payable | 345,832,000 | 318,774,000 | ||
Notes payable | ||||
Debt Instrument [Line Items] | ||||
Notes payable | 1,015,783,000 | 840,699,000 | ||
Five-Year Revolving Facilities [Member] | Line of Credit [Member] | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Current Borrowing Capacity | 2,500,000,000 | |||
Long-term Line of Credit | 0 | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Debt Instrument [Line Items] | ||||
Gain on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $13,500,000 | $13,500,000 |
Notes_Payable_and_LongTerm_Deb3
Notes Payable and Long-Term Debt - Schedule of Interest, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Debt Disclosure [Abstract] | ||||
Interest Expense | $19,574 | $11,836 | $40,610 | $34,426 |
Interest-purchase of NCRA noncontrolling interest | 4,860 | 21,273 | 18,928 | 32,397 |
Capitalized interest | -12,706 | -2,526 | -24,611 | -3,862 |
Interest income | -2,238 | -1,594 | -4,836 | -3,187 |
Interest Income (Expense), Net | $9,490 | $28,989 | $30,091 | $59,774 |
Equities_Changes_in_Equity_Det
Equities Changes in Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | |||||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Jun. 30, 2014 | Aug. 31, 2014 | Jan. 30, 2015 | Sep. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reversal of prior year patronage and redemption estimates | $379,772,000 | |||||||
Patronage distribution | -275,553,000 | |||||||
Equity Certificates Repurchased and Retired During Period, Value | -108,723,000 | |||||||
Equities issued | 989,763,000 | |||||||
Dividends, Preferred Stock | -64,723,000 | |||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | -430,000 | |||||||
Other, net | -6,854,000 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 92,897,000 | 260,621,000 | 471,228,000 | 503,649,000 | ||||
Net income attributable to CHS Inc. | 92,814,000 | 260,069,000 | 471,517,000 | 502,255,000 | ||||
Net income (loss) attributable to noncontrolling interests | 83,000 | 552,000 | -289,000 | 1,394,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | -4,551,000 | -8,130,000 | -5,638,000 | -8,565,000 | ||||
Patronage Refunds, Estimated | -132,700,000 | |||||||
Equity redemptions, estimate | -53,000,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 7,659,986,000 | 7,659,986,000 | 6,466,844,000 | |||||
Capital equity certificates [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reversal of prior year patronage and redemption estimates | -282,290,000 | |||||||
Patronage distribution | 395,287,000 | |||||||
Equity Certificates Repurchased and Retired During Period, Value | -108,442,000 | |||||||
Equities issued | 12,365,000 | |||||||
Other, net | -258,000 | |||||||
Equity redemptions, estimate | -53,000,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,472,135,000 | 3,472,135,000 | 3,508,473,000 | |||||
Noncontrolling Interest [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reversal of prior year patronage and redemption estimates | 0 | |||||||
Patronage distribution | 0 | |||||||
Equity Certificates Repurchased and Retired During Period, Value | 0 | |||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | -430,000 | |||||||
Other, net | -6,159,000 | |||||||
Net income (loss) attributable to noncontrolling interests | -289,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 11,458,000 | 11,458,000 | 18,336,000 | |||||
Nonpatronage Equity Certificates [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reversal of prior year patronage and redemption estimates | 0 | |||||||
Patronage distribution | 0 | |||||||
Equity Certificates Repurchased and Retired During Period, Value | -79,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 23,177,000 | 23,177,000 | 23,256,000 | |||||
Non-qualified Equity Certificates [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reversal of prior year patronage and redemption estimates | -148,579,000 | |||||||
Patronage distribution | 147,379,000 | |||||||
Equity Certificates Repurchased and Retired During Period, Value | -221,000 | |||||||
Other, net | -606,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 282,672,000 | 282,672,000 | 284,699,000 | |||||
Preferred Stock [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reversal of prior year patronage and redemption estimates | 0 | |||||||
Patronage distribution | 0 | |||||||
Equity Certificates Repurchased and Retired During Period, Value | 0 | |||||||
Equities issued | 977,398,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,167,575,000 | 2,167,575,000 | 1,190,177,000 | |||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reversal of prior year patronage and redemption estimates | 0 | |||||||
Patronage distribution | 0 | |||||||
Equity Certificates Repurchased and Retired During Period, Value | 0 | |||||||
Other Comprehensive Income (Loss), Net of Tax | -5,638,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | -162,395,000 | -162,395,000 | -156,757,000 | |||||
Capital Reserves [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reversal of prior year patronage and redemption estimates | 810,641,000 | |||||||
Patronage distribution | -818,219,000 | |||||||
Equity Certificates Repurchased and Retired During Period, Value | 19,000 | |||||||
Dividends, Preferred Stock | -64,723,000 | |||||||
Other, net | 169,000 | |||||||
Net income attributable to CHS Inc. | 471,517,000 | |||||||
Patronage Refunds, Estimated | -132,700,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,865,364,000 | 1,865,364,000 | 1,598,660,000 | |||||
Class B, Series 4 Preferred Stock [Member] | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Preferred Stock, Redemption Amount | 517,500,000 | |||||||
Proceeds from Issuance of Preferred Stock, net of Issuance Costs | 501,100,000 | |||||||
Preferred Stock, Dividend Rate, Percentage | 7.50% | |||||||
Preferred Stock, Shares Issued | 20,700,000 | |||||||
Class B Preferred Stock [Member] | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Value of Preferred Stock available to be sold under Shelf Registration | 2,000,000,000 | |||||||
Class B, Series 3 Preferred Stock [Member] | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Preferred Stock, Redemption Amount | 492,500,000 | |||||||
Proceeds from Issuance of Preferred Stock, net of Issuance Costs | $476,700,000 | |||||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | |||||||
Preferred Stock, Shares Issued | 19,700,000 | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Class B, Series 3 Preferred Stock [Member] | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Preferred Stock, Basis Spread on Dividend Rate Percentage | 4.16% | |||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Class B, Series 3 Preferred Stock [Member] | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Preferred Stock, Basis Spread on Dividend Rate Percentage | 8.00% |
Equities_Accumulated_Other_Com
Equities Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | ($162,395) | ($162,395) | ($156,757) | ||
Other Comprehensive Income (Loss), Net of Tax | -4,551 | -8,130 | -5,638 | -8,565 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | -144,846 | -144,846 | -151,852 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 236 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 6,770 | ||||
Other Comprehensive Income (Loss), Net of Tax | 7,006 | ||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | 5,171 | 5,171 | 4,398 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 773 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | 773 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | -5,131 | -5,131 | -2,722 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -2,658 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 249 | ||||
Other Comprehensive Income (Loss), Net of Tax | -2,409 | ||||
Accumulated Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | -17,589 | -17,589 | -6,581 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -11,008 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | -11,008 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -12,657 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 7,019 | ||||
Other Comprehensive Income (Loss), Net of Tax | ($5,638) |
Equities_Reclassification_Adju
Equities Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) (Details) (Reclassification out of Accumulated Other Comprehensive Income [Member], Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member], USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2014 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $13.50 | $13.50 |
Benefit_Plans_Net_Periodic_Ben
Benefit Plans - Net Periodic Benefit Cost (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Qualified Pension Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service costs | $9,058 | $7,802 | $18,116 | $15,269 |
Interest costs | 7,002 | 8,240 | 14,016 | 14,938 |
Expected return on assets | -12,436 | -11,082 | -24,874 | -23,816 |
Prior service cost (credit) amortization | 409 | 398 | 816 | 797 |
Actuarial loss (gain) amortization | 4,907 | 4,445 | 9,808 | 9,089 |
Periodic benefit costs, net | 8,940 | 9,803 | 17,882 | 16,277 |
Defined Benefit Plan, Contributions by Employer | 0 | |||
Non-Qualified Pension Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service costs | 225 | 248 | 450 | 427 |
Interest costs | 352 | 486 | 704 | 822 |
Expected return on assets | 0 | 0 | 0 | 0 |
Prior service cost (credit) amortization | 57 | 57 | 114 | 114 |
Actuarial loss (gain) amortization | 261 | 241 | 522 | 468 |
Periodic benefit costs, net | 895 | 1,032 | 1,790 | 1,831 |
Other Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service costs | 474 | 476 | 946 | 958 |
Interest costs | 415 | 502 | 830 | 1,021 |
Expected return on assets | 0 | 0 | 0 | 0 |
Prior service cost (credit) amortization | -30 | -30 | -60 | -60 |
Actuarial loss (gain) amortization | -106 | -311 | -211 | -187 |
Periodic benefit costs, net | $753 | $637 | $1,505 | $1,732 |
Segment_Reporting_Narrative_De
Segment Reporting - Narrative (Details) | Feb. 28, 2015 |
Ag | TEMCO, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership in equity method investment | 50.00% |
Corporate and Other | Ventura Foods, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership in equity method investment | 50.00% |
Corporate and Other | Ardent Mills [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership in equity method investment | 12.00% |
Segment_Reporting_Segment_Info
Segment Reporting - Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 |
Segment Reporting Information [Line Items] | |||||
Revenues | $8,355,728 | $9,680,274 | $17,855,196 | $20,706,395 | |
Cost of goods sold | 8,111,365 | 9,238,840 | 17,020,110 | 19,864,045 | |
Gross profit | 244,363 | 441,434 | 835,086 | 842,350 | |
Marketing, general and administrative | 170,775 | 155,771 | 332,743 | 288,912 | |
Operating earnings | 73,588 | 285,663 | 502,343 | 553,438 | |
Loss (gain) on investments | -2,199 | -2,609 | -5,074 | -2,609 | |
Interest, net | 9,490 | 28,989 | 30,091 | 59,774 | |
Equity (income) loss from investments | -24,169 | -31,049 | -48,798 | -63,727 | |
Income before income taxes | 90,466 | 290,332 | 526,124 | 560,000 | |
Intersegment revenues | 0 | 0 | 0 | 0 | |
Acquisition of property, plant and equipment | 512,510 | 389,537 | |||
Depreciation and amortization | 148,784 | 127,199 | |||
Total assets | 15,973,043 | 14,304,257 | 15,973,043 | 14,304,257 | 15,146,979 |
Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,947,297 | 2,961,193 | 4,965,750 | 6,202,509 | |
Cost of goods sold | 1,894,418 | 2,676,335 | 4,598,852 | 5,748,029 | |
Gross profit | 52,879 | 284,858 | 366,898 | 454,480 | |
Marketing, general and administrative | 46,758 | 38,042 | 80,126 | 70,097 | |
Operating earnings | 6,121 | 246,816 | 286,772 | 384,383 | |
Loss (gain) on investments | 0 | 0 | 0 | 0 | |
Interest, net | -7,264 | 18,578 | -3,443 | 31,022 | |
Equity (income) loss from investments | -736 | -849 | -1,076 | -2,157 | |
Income before income taxes | 14,121 | 229,087 | 291,291 | 355,518 | |
Intersegment revenues | -105,567 | -131,729 | -280,520 | -295,021 | |
Acquisition of property, plant and equipment | 273,989 | 221,742 | |||
Depreciation and amortization | 69,118 | 66,174 | |||
Total assets | 4,322,316 | 4,091,794 | 4,322,316 | 4,091,794 | |
Ag | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 6,501,280 | 6,833,365 | 13,143,319 | 14,764,699 | |
Cost of goods sold | 6,326,607 | 6,694,245 | 12,710,939 | 14,411,048 | |
Gross profit | 174,673 | 139,120 | 432,380 | 353,651 | |
Marketing, general and administrative | 106,671 | 99,985 | 210,548 | 186,768 | |
Operating earnings | 68,002 | 39,135 | 221,832 | 166,883 | |
Loss (gain) on investments | 0 | 116 | -2,875 | 116 | |
Interest, net | 14,399 | 9,190 | 28,806 | 24,287 | |
Equity (income) loss from investments | -4,442 | -8,213 | -4,463 | -14,690 | |
Income before income taxes | 58,045 | 38,042 | 200,364 | 157,170 | |
Intersegment revenues | -4,085 | 0 | -9,149 | 0 | |
Acquisition of property, plant and equipment | 212,140 | 159,810 | |||
Depreciation and amortization | 73,408 | 55,603 | |||
Total assets | 8,237,930 | 7,678,688 | 8,237,930 | 7,678,688 | |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 16,803 | 17,445 | 35,796 | 34,208 | |
Cost of goods sold | -8 | -11 | -12 | -11 | |
Gross profit | 16,811 | 17,456 | 35,808 | 34,219 | |
Marketing, general and administrative | 17,346 | 17,744 | 42,069 | 32,047 | |
Operating earnings | -535 | -288 | -6,261 | 2,172 | |
Loss (gain) on investments | -2,199 | -2,725 | -2,199 | -2,725 | |
Interest, net | 2,355 | 1,221 | 4,728 | 4,465 | |
Equity (income) loss from investments | -18,991 | -21,987 | -43,259 | -46,880 | |
Income before income taxes | 18,300 | 23,203 | 34,469 | 47,312 | |
Intersegment revenues | 0 | 0 | 0 | 0 | |
Acquisition of property, plant and equipment | 26,381 | 7,985 | |||
Depreciation and amortization | 6,258 | 5,422 | |||
Total assets | 3,412,797 | 2,533,775 | 3,412,797 | 2,533,775 | |
Reconciling Amounts | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | -109,652 | -131,729 | -289,669 | -295,021 | |
Cost of goods sold | -109,652 | -131,729 | -289,669 | -295,021 | |
Gross profit | 0 | 0 | 0 | 0 | |
Marketing, general and administrative | 0 | 0 | 0 | 0 | |
Operating earnings | 0 | 0 | 0 | 0 | |
Loss (gain) on investments | 0 | 0 | 0 | 0 | |
Interest, net | 0 | 0 | 0 | 0 | |
Equity (income) loss from investments | 0 | 0 | 0 | 0 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Intersegment revenues | 109,652 | 131,729 | 289,669 | 295,021 | |
Acquisition of property, plant and equipment | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | |||
Total assets | $0 | $0 | $0 | $0 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities Purchase and Sale Contracts (Details) (Not Designated as Hedging Instrument [Member], Forward Contracts [Member]) | Feb. 28, 2015 | Aug. 31, 2014 |
Bushels | Bushels | |
Grain and oilseed - bushels | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 716,952,000 | 665,690,000 |
Grain and oilseed - bushels | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,380,157,000 | 938,140,000 |
Ocean and barge freight - tons | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 5,006,000 | 5,423,000 |
Ocean and barge freight - tons | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,308,000 | 4,005,000 |
Livestock - pounds | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 21,320,000 | 0 |
Livestock - pounds | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 200,000 | 46,280,000 |
Energy products [Member] | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 57,686,000 | 27,754,000 |
Energy products [Member] | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 55,030,000 | 50,450,000 |
Soy product contracts [Member] | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 4,192,000 | 37,000 |
Soy product contracts [Member] | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,660,000 | 1,212,000 |
Derivative number of units Crop nutrients contracts [Member] | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 134,000 | 1,613,000 |
Derivative number of units Crop nutrients contracts [Member] | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,091,000 | 1,607,000 |
Derivative number of units cargo and freight rail contracts [Member] | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 202,000 | 321,000 |
Derivative number of units cargo and freight rail contracts [Member] | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 117,000 | 186,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments and Hedging Activities Derivatives (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | Nov. 30, 2013 | |
Purchase and Sales Contracts [Line Items] | |||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $5,600,000 | ||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 13,200,000 | ||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 481,590,000 | 560,530,000 | |||
Derivative Asset, Fair Value, Gross Asset | 614,004,000 | 603,933,000 | |||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 132,414,000 | 43,403,000 | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 348,897,000 | 554,083,000 | |||
Derivative Liability, Fair Value, Gross Liability | 482,590,000 | 599,990,000 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 1,279,000 | 2,504,000 | |||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 132,414,000 | 43,403,000 | |||
Commodity and Freight Derivatives [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 464,367,000 | 554,981,000 | |||
Derivative Asset, Fair Value, Gross Asset | 595,994,000 | 597,210,000 | |||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 131,627,000 | 42,229,000 | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 332,079,000 | 552,879,000 | |||
Derivative Liability, Fair Value, Gross Liability | 464,985,000 | 597,612,000 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 1,279,000 | 2,504,000 | |||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 131,627,000 | 42,229,000 | |||
Foreign Exchange Contract [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 4,833,000 | 1,349,000 | |||
Derivative Asset, Fair Value, Gross Asset | 5,620,000 | 2,523,000 | |||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 787,000 | 1,174,000 | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 12,428,000 | 1,074,000 | |||
Derivative Liability, Fair Value, Gross Liability | 13,215,000 | 2,248,000 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 787,000 | 1,174,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 12,390,000 | 4,200,000 | |||
Derivative Asset, Fair Value, Gross Asset | 12,390,000 | 4,200,000 | |||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | 0 | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 4,296,000 | ||||
Derivative Liability, Fair Value, Gross Liability | 4,296,000 | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | ||||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | ||||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 94,000 | 130,000 | |||
Derivative Liability, Fair Value, Gross Liability | 94,000 | 130,000 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | 0 | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Gain on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 13,500,000 | 13,500,000 | |||
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 8,200,000 | ||||
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Derivative Asset, Notional Amount | 420,000,000 | ||||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Derivative Asset, Notional Amount | 300,000,000 | ||||
Interest Rate Contracts, Expiring At Various Times Through Fiscal 2018 [Member] | Not Designated as Hedging Instrument [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Derivative Asset, Notional Amount | 3,900,000 | ||||
Interest Rate Contracts, Expiring During Fiscal 2015 [Member] | Not Designated as Hedging Instrument [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Derivative Asset, Notional Amount | 100,000 | ||||
Interest Rate Contracts, Expiring during Fiscal 2016 [Member] | Designated as Hedging Instrument [Member] | |||||
Purchase and Sales Contracts [Line Items] | |||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $0 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments and Hedging Activities Gains (Losses) Included in Other Comprehensive Income on Derivatives Accounted for as Hedging Instruments, Net of Tax (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate derivatives | ($3,702) | ($5,299) | ($4,296) | ($10,580) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments and Hedging Activities Pretax Gains (Losses) On Derivatives Not Accounted For As Hedging Instruments (Details) (Not Designated as Hedging Instrument [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $196,314 | $79,681 | $202,753 | $59,469 |
Commodity and Freight Derivatives [Member] | Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 208,794 | 81,210 | 212,793 | 61,421 |
Foreign Exchange Contract [Member] | Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -12,525 | -1,581 | -10,114 | -2,003 |
Interest rate derivatives | Interest, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $45 | $52 | $74 | $51 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments and Hedging Activities Pretax Gains losses reclassified from OCI (Details) (Interest, net, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Interest, net | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest rate derivatives | ($199) | $13,360 | ($402) | $13,143 |
Fair_Value_Measurements_Recurr
Fair Value Measurements Recurring Fair Value Measurements by Level (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Inventory, Current, Fair Value Disclosure | $1,246,484 | $921,554 |
Other Assets, Fair Value Disclosure | 11,013 | 8,778 |
Assets, Fair Value Disclosure | 1,955,980 | 1,617,482 |
Liabilities, Fair Value Disclosure | 603,660 | 714,907 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Inventory, Current, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 11,013 | 8,778 |
Assets, Fair Value Disclosure | 227,527 | 173,108 |
Liabilities, Fair Value Disclosure | 170,995 | 119,938 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Inventory, Current, Fair Value Disclosure | 1,246,484 | 921,554 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 1,728,453 | 1,444,374 |
Liabilities, Fair Value Disclosure | 311,595 | 480,052 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Inventory, Current, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | $121,070 | $114,917 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Measurements (Details) (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory, Current, Fair Value Disclosure | $1,246,484 | $921,554 |
Deferred Compensation Assets, Fair Value Disclosure | 84,479 | 83,217 |
Other Assets, Fair Value Disclosure | 11,013 | 8,778 |
Total assets | 1,955,980 | 1,617,482 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 13,215 | 2,248 |
Total liabilities | 603,660 | 714,907 |
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 5,620 | 2,523 |
Fair Value, Measurements, Recurring [Member] | Commodity and Freight Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 595,994 | 597,210 |
Derivative Liability | 464,985 | 597,612 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 12,390 | 4,200 |
Derivative Liability | 4,390 | 130 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory, Current, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Assets, Fair Value Disclosure | 84,479 | 83,217 |
Other Assets, Fair Value Disclosure | 11,013 | 8,778 |
Total assets | 227,527 | 173,108 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 13,215 | 2,248 |
Total liabilities | 170,995 | 119,938 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 5,620 | 2,523 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity and Freight Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 126,415 | 78,590 |
Derivative Liability | 157,780 | 117,690 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory, Current, Fair Value Disclosure | 1,246,484 | 921,554 |
Deferred Compensation Assets, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Total assets | 1,728,453 | 1,444,374 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Total liabilities | 311,595 | 480,052 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Commodity and Freight Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 469,579 | 518,620 |
Derivative Liability | 307,205 | 479,922 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 12,390 | 4,200 |
Derivative Liability | 4,390 | 130 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inventory, Current, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Assets, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Total assets | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Total liabilities | 121,070 | 114,917 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Commodity and Freight Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
NCRA [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interest | 114,917 | |
NCRA [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interest | 0 | 0 |
NCRA [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interest | 0 | 0 |
NCRA [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interest | 121,070 | 114,917 |
National Cooperative Refinery Association [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interest | $121,070 |
Fair_Value_Measurements_Quanti
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) (USD $) | 6 Months Ended | |
Feb. 28, 2015 | ||
Fair Value, Inputs, Level 3 [Member] | Accrued liability for contingent crack spread payments related to purchase of noncontroling interests | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward crack spread margin | $20.78 | [1] |
Own credit risk | 0.09% | [2] |
Expected life (years) | 0 years 6 months | [3] |
Fair Value, Inputs, Level 3 [Member] | Accrued liability for contingent crack spread payments related to purchase of noncontroling interests | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward crack spread margin | 21.79 | [1] |
Own credit risk | 0.94% | [2] |
Expected life (years) | 2 years 6 months | [3] |
Fair Value, Inputs, Level 3 [Member] | Accrued liability for contingent crack spread payments related to purchase of noncontroling interests | Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward crack spread margin | 21.55 | [1] |
Own credit risk | 0.53% | [2] |
Expected life (years) | 1 year 6 months 25 days | [3] |
National Cooperative Refinery Association [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interest | $121,070,000 | |
National Cooperative Refinery Association [Member] | Fair Value, Inputs, Level 3 [Member] | Accrued liability for contingent crack spread payments related to purchase of noncontroling interests | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Contractual target crack spread margin (in dollars per share) | $17.50 | [4] |
Expected volatility | 165.25% | [5] |
[1] | Represents forward crack spread margin quotes and management estimates based on future settlement dates | |
[2] | Represents yield curves for U.S. Treasury securities | |
[3] | Represents the range in the number of years remaining related to each contingent payment | |
[4] | Represents the minimum contractual threshold that would require settlement with the counterparties | |
[5] | Represents quarterly adjusted volatility estimates derived from daily historical market data |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements - Fair Value Reconciliation Liabilities Using Significant Unobservable Inputs (3 month) (Level 3) (Details) (National Cooperative Refinery Association [Member], Crack Spread Contingent Payment [Member], USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Nov. 30, 2014 | Aug. 31, 2014 | Nov. 30, 2013 | Aug. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Balance | $86,520 | $114,917 | $150,991 | $134,134 | ||||
Balance | 121,070 | 140,631 | 121,070 | 140,631 | 86,520 | 114,917 | 150,991 | 134,134 |
Cost of Goods, Total | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Total gains or losses included in cost of goods sold and net interest | $34,550 | ($10,360) | $6,153 | $6,497 |
Commitments_and_Contingencies_1
Commitments and Contingencies Unconditional Purchase Obligations (Details) (Minimum [Member], USD $) | Feb. 28, 2015 |
Minimum [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation | $1,051,453,000 |
Unrecorded Unconditional Purchase Obligation, Long-Term, Discounted | 838,100,000 |
Unrecorded Unconditional Purchase Obligation, Long-Term, Due in Next Twelve Months | 61,285,000 |
Unrecorded Unconditional Purchase Obligation, Long-Term, Due Within Two to Three Years | 170,393,000 |
Unrecorded Unconditional Purchase Obligation, Long-Term, Due Within Four to Five Years | 152,840,000 |
Unrecorded Unconditional Purchase Obligation, Long-Term, Due after Five Years | $666,935,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies Guarantees (Details) (USD $) | Feb. 28, 2015 |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $1,000,000,000 |
Guarantor Obligations, Current Exposure, Unrecorded | $117,600,000 |