Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2017 | Jul. 14, 2017 | |
DEI [Abstract] | ||
Entity Registrant Name | CHS Inc. | |
Entity Central Index Key | 823,277 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | May 31, 2017 | Aug. 31, 2016 |
Current assets [Abstract] | ||
Cash and cash equivalents | $ 267,229 | $ 279,313 |
Receivables | 2,722,325 | 2,880,763 |
Inventories | 2,684,087 | 2,370,699 |
Derivative assets | 388,188 | 543,821 |
Margin deposits | 251,695 | 310,276 |
Supplier advance payments | 431,433 | 347,600 |
Other current assets | 255,236 | 202,708 |
Total current assets | 7,000,193 | 6,935,180 |
Investments | 3,841,749 | 3,795,976 |
Property, plant and equipment | 5,409,151 | 5,488,323 |
Other assets | 970,704 | 1,092,656 |
Total assets | 17,221,797 | 17,312,135 |
Current liabilities [Abstract] | ||
Notes payable | 3,321,808 | 2,731,479 |
Current portion of long-term debt | 193,096 | 214,329 |
Customer margin deposits and credit balances | 132,479 | 208,991 |
Customer advance payments | 390,576 | 412,823 |
Accounts payable | 1,809,868 | 1,819,049 |
Derivative liabilities | 284,212 | 513,599 |
Accrued expenses | 422,371 | 422,494 |
Dividends and equities payable | 134,718 | 198,031 |
Total current liabilities | 6,689,128 | 6,520,795 |
Long-term debt | 2,046,264 | 2,082,876 |
Long-term deferred tax liabilities | 350,966 | 487,762 |
Other liabilities | 276,483 | 354,452 |
Commitments and contingencies | ||
Equities: | ||
Preferred stock | 2,264,063 | 2,244,132 |
Equity certificates | 4,214,657 | 4,237,174 |
Accumulated other comprehensive loss | (209,700) | (211,726) |
Capital reserves | 1,577,469 | 1,582,380 |
Total CHS Inc. equities | 7,846,489 | 7,851,960 |
Noncontrolling interests | 12,467 | 14,290 |
Total equities | 7,858,956 | 7,866,250 |
Total liabilities and equities | $ 17,221,797 | $ 17,312,135 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 8,614,090 | $ 7,796,588 | $ 23,982,746 | $ 22,164,710 |
Cost of goods sold | 8,366,988 | 7,479,076 | 23,142,205 | 21,346,376 |
Gross profit | 247,102 | 317,512 | 840,541 | 818,334 |
Marketing, general and administrative | 153,498 | 143,436 | 459,831 | 468,394 |
Reserve and impairment charges | 323,901 | 26,016 | 414,009 | 33,869 |
Operating earnings (loss) | (230,297) | 148,060 | (33,299) | 316,071 |
(Gain) loss on investments | (393) | (700) | 4,226 | (9,422) |
Interest Expense | 39,201 | 37,466 | 117,411 | 71,553 |
Other income | (11,554) | (10,774) | (70,409) | (22,155) |
Equity (income) loss from investments | (48,393) | (72,453) | (124,521) | (131,819) |
Income (loss) before income taxes | (209,158) | 194,521 | 39,994 | 407,914 |
Income tax expense (benefit) | (163,018) | 4,838 | (137,781) | (17,761) |
Net income (loss) | (46,140) | 189,683 | 177,775 | 425,675 |
Net income (loss) attributable to noncontrolling interests | (955) | (592) | (757) | (92) |
Net income (loss) attributable to CHS Inc. | $ (45,185) | $ 190,275 | $ 178,532 | $ 425,767 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Net income (loss) | $ (46,140) | $ 189,683 | $ 177,775 | $ 425,675 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Postretirement benefit plan activity, net of tax expense (benefit) | 3,635 | 3,378 | 10,599 | 9,806 |
Unrealized net gain (loss) on available for sale investments, net of tax expense (benefit) | (117) | 1,201 | 1,627 | 462 |
Cash flow hedges, net of tax expense (benefit) | 375 | 2,574 | 1,993 | (3,945) |
Foreign currency translation adjustment, net of tax expense (benefit) | (2,151) | 7,761 | (12,193) | (5,910) |
Other comprehensive income (loss), net of tax | 1,742 | 14,914 | 2,026 | 413 |
Comprehensive Income | (44,398) | 204,597 | 179,801 | 426,088 |
Net income (loss) attributable to noncontrolling interests | (955) | (592) | (757) | (92) |
Comprehensive Income (Loss), Net of Tax, Attributable to CHS | $ (43,443) | $ 205,189 | $ 180,558 | $ 426,180 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Unaudited) Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Postretirement benefit plan activity, tax expense (benefit) | $ 2,257 | $ 2,122 | $ 6,580 | $ 5,911 |
Unrealized net gain (loss) on available for sale investments, tax expense (benefit) | (72) | 744 | 1,010 | 303 |
Cash flow hedges, tax expense (benefit) | 233 | 1,595 | 1,238 | (2,456) |
Foreign currency translation adjustment, tax expense (benefit) | $ (334) | $ 0 | $ (329) | $ 0 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 177,775 | $ 425,675 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 362,118 | 324,952 |
Amortization of deferred major repair costs | 50,565 | 55,074 |
Equity (income) loss from investments | (124,521) | (131,819) |
Provision for doubtful accounts | 198,304 | 33,869 |
Distributions from equity investments | 105,558 | 75,435 |
Unrealized (gain) loss on crack spread contingent liability | (13,273) | (51,321) |
Long-lived asset impairment | 85,431 | 14,428 |
Reserve against supplier advance payments | 130,705 | 0 |
Deferred taxes | (145,357) | (16,356) |
Other, net | 25,559 | (23,414) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | (55,498) | 120,613 |
Inventories | (344,914) | (164,652) |
Derivative assets | 120,294 | (65,651) |
Margin deposits | 58,581 | (23,988) |
Supplier advance payments | (214,538) | (208,679) |
Other current assets and other assets | 19,289 | 91,095 |
Customer margin deposits and credit balances | (76,355) | 2,657 |
Customer advance payments | (23,700) | (54,136) |
Accounts payable and accrued expenses | 152,094 | (72,161) |
Derivative liabilities | (229,881) | 9,315 |
Other liabilities | (53,471) | (78,511) |
Net cash provided by (used in) operating activities | 204,765 | 262,425 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (298,015) | (557,689) |
Proceeds from disposition of property, plant and equipment | 17,702 | 7,023 |
Expenditures for major repairs | (1,146) | (19,338) |
Investments in joint ventures and other | (13,853) | (2,833,968) |
Investments redeemed | 7,698 | 24,912 |
Proceeds from sale of investments | 6,170 | 19,477 |
Changes in notes receivable, net | (104,773) | (230,874) |
Financing extended to customers | (57,783) | (31,681) |
Payments from customer financing | 67,126 | 23,005 |
Business acquisitions, net of cash acquired | (2,253) | (10,139) |
Other investing activities, net | 4,975 | 4,911 |
Net cash provided by (used in) investing activities | (374,152) | (3,604,361) |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 29,890,570 | 21,377,619 |
Payments on lines of credit, long term-debt and capital lease obligations | (29,362,970) | (18,090,681) |
Mandatorily redeemable noncontrolling interest payments | 0 | (153,022) |
Changes in checks and drafts outstanding | (118,844) | 1,680 |
Preferred stock dividends paid | (125,475) | (121,499) |
Retirements of equities | (25,503) | (17,117) |
Cash patronage dividends paid | (103,879) | (253,150) |
Other financing activities, net | 1,539 | (3,246) |
Net cash provided by (used in) financing activities | 155,438 | 2,740,584 |
Effect of exchange rate changes on cash and cash equivalents | 1,865 | (6,060) |
Net increase (decrease) in cash and cash equivalents | (12,084) | (607,412) |
Cash and cash equivalents at beginning of period | 279,313 | 953,813 |
Cash and cash equivalents at end of period | $ 267,229 | $ 346,401 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies | Organization, Basis of Presentation and Significant Accounting Policies Basis of Presentation The unaudited Consolidated Balance Sheet as of May 31, 2017 , the Consolidated Statements of Operations for the three and nine months ended May 31, 2017 , and 2016 , the Consolidated Statements of Comprehensive Income for the three and nine months ended May 31, 2017 , and 2016 , and the Consolidated Statements of Cash Flows for the nine months ended May 31, 2017 , and 2016 , 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, 2016 , 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 Consolidated Statements of Operations include a separate line called “Reserve and impairment charges” for the three and nine months ended May 31, 2017, and 2016, due to the materiality of certain charges incurred during the periods presented. The charges relate to reserves recorded as a result of a trading partner of ours in Brazil entering into bankruptcy proceedings under Brazilian law, intangible and fixed asset impairment charges associated with moving certain assets within our Ag segment to held for sale, a fixed asset impairment charge related to an asset in our Energy segment and all bad debt and loan loss reserve charges, of which a significant portion relates to a single large producer borrower for which the majority of charges were recorded in the first and second quarters of the current fiscal year. Prior year information has been revised to conform to the current presentation. See additional information related to the reserves and impairment charges in Note 2, Receivables and Note 5, Goodwill and Other Intangible Assets . The notes to our consolidated financial statements make reference to our Energy, Ag, Nitrogen Production and Foods reportable segments, as well as our Corporate and Other category, which represents an aggregation of individually immaterial operating segments. The Nitrogen Production reportable segment resulted from our investment in CF Industries Nitrogen, LLC ("CF Nitrogen") in February 2016. The Foods segment resulted from our investment in Ventura Foods, LLC ("Ventura Foods") becoming a significant operating segment in fiscal 2016. 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. The effects of all significant intercompany transactions have been eliminated. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended August 31, 2016 , included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC"). Recent Accounting Pronouncements Adopted In January 2017, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairment. The amendments within this ASU eliminate Step 2 of the goodwill impairment test, which requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under the amended standard, goodwill impairment is instead measured using Step 1 of the goodwill impairment test with goodwill impairment being equal to the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. We elected to early adopt ASU No. 2017-04 during the second quarter of fiscal 2017. The amendments have been applied to the annual goodwill impairment testing performed as of May 31, 2017, and will be applied prospectively to all future goodwill impairment tests performed on an interim or annual basis. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which simplifies the presentation of debt issuance costs. This ASU requires the presentation of debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred financing cost. This ASU was effective for us beginning September 1, 2016, for our fiscal year 2017 and for interim periods within that fiscal year. As a result, $5.6 million of deferred issuance costs related to private placement debt and bank financing have been reclassified from other assets to long-term debt as of August 31, 2016 . In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , which codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line of credit arrangements as assets. ASU No. 2015-15 was effective immediately. At August 31, 2016, we had unamortized deferred financing costs related to our line of credit arrangements, and we will continue to present debt issuance costs related to line of credit arrangements as an asset in our Consolidated Balance Sheets. Not Yet Adopted In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Postretirement Benefit Cost. This ASU is intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted as of the beginning of an annual period for which interim financial statements have not been issued or made available for issuance. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business . The amendments within this ASU narrow the existing definition of a business and provide a more robust framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The definition of a business impacts various areas of accounting, including acquisitions, disposals and goodwill. Under the new guidance, fewer acquisitions are expected to be considered businesses. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted and the guidance should be applied prospectively to transactions following the adoption date. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This ASU is intended to reduce diversity in practice by adding or clarifying guidance on classification and presentation of changes in restricted cash on the statement of cash flows. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted, including in an interim period. The amendments in this ASU should be applied retrospectively to all periods presented. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This ASU is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory by requiring an entity to recognize the income tax consequences when a transfer occurs, instead of when an asset is sold to an outside party. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted as of the beginning of an annual reporting period for which interim or annual financial statements have not been issued. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to reduce existing diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted, including in an interim period. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . The amendments in this ASU introduce a new approach, based on expected losses, to estimate credit losses on certain types of financial instruments. This ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses associated with most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This ASU is effective for us beginning September 1, 2020, for our fiscal year 2021 and for interim periods within that fiscal year. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which replaces the existing guidance in Accounting Standards Codification ("ASC") 840 - Leases . The amendments within this ASU introduce a lessee model requiring entities to recognize assets and liabilities for most leases, but continue recognizing the associated expenses in a manner similar to existing accounting guidance. This ASU does not make fundamental changes to existing lessor accounting; however, it does modify what constitutes a sales-type or direct financing lease and the related accounting, and aligns a number of the underlying principles with those of the new revenue standard, ASU No. 2014-09. The guidance also eliminates existing real estate-specific provisions and requires expanded qualitative and quantitative disclosures. Entities are required to apply the standard’s provisions using a modified retrospective approach at the beginning of the earliest comparative period presented in the year of adoption. This ASU is effective for us beginning September 1, 2019, for our fiscal year 2020 and for interim periods within that fiscal year. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The amendments within this ASU provide a single comprehensive model to be used in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU includes a five step model for the recognition of revenue, including (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations, and (5) recognizing revenue when (or as) an entity satisfies a performance obligation. This ASU also specifies the accounting for certain costs to obtain or fulfill a contract with a customer and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14 delaying the effective date of adoption for CHS to September 1, 2018. The FASB issued four subsequent ASUs in 2016 containing implementation guidance related to ASU No. 2014-09, including: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which is intended to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which contains certain provision and practical expedients in response to identified implementation issues; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which contains certain corrections and clarifications to increase stakeholders’ awareness of the proposals and to expedite improvements. ASU No. 2014-09 permits the use of either a full or modified retrospective method upon adoption. Although early application as of the original date is permitted, we expect to adopt ASU No. 2014-09 and the related ASUs on September 1, 2018, in the first quarter of fiscal 2019. We are continuing to evaluate the effect this guidance will have on our consolidated financial statements, including potential impacts on the timing of revenue recognition and additional information that may be necessary for expanded disclosures regarding revenue. We have completed an initial assessment of our revenue streams and are currently evaluating the quantitative and qualitative impacts of the new standard on our businesses. We expect to complete our evaluation by the end of fiscal 2017, which will allow us to select an adoption method and determine the impact that the new standard will have on our businesses. |
Receivables
Receivables | 9 Months Ended |
May 31, 2017 | |
Receivables [Abstract] | |
Receivables | Receivables May 31, 2017 August 31, 2016 (Dollars in thousands) Trade accounts receivable $ 1,739,027 $ 1,804,646 CHS Capital notes receivable 766,731 858,805 Other 464,051 380,956 2,969,809 3,044,407 Less allowances and reserves 247,484 163,644 Total receivables $ 2,722,325 $ 2,880,763 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 economic status of, our customers. The carrying value of CHS Capital, LLC ("CHS Capital") short-term notes receivable approximates fair value, given the notes' short duration and the use of market pricing adjusted for risk. Other receivables is comprised of certain other amounts recorded in the normal course of business, including receivables related to valued added taxes and production cost financing. During the third quarter of fiscal 2017, a trading partner of ours in Brazil entered bankruptcy proceedings under Brazilian law, resulting in a $98.7 million increase to our accounts receivable reserve. We also recorded a reserve of approximately $130.7 million related to supplier advance payments held by this trading partner. We have initiated efforts to recover these losses; however, as such actions are in the early stages and are considered neither probable nor estimable, no recoveries have been recorded as of the date of this Quarterly Report on Form 10-Q. CHS Capital has notes receivable from commercial and producer borrowers. The short-term notes receivable generally have terms of 12 - 14 months and are reported at their outstanding principal balances as CHS Capital has the ability and intent to hold these notes to maturity. 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, and North Dakota. 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 and are originated in the same states as the commercial notes with the addition of Michigan. In addition to the short-term balances included in the table above, CHS Capital had long-term notes receivable with durations of generally not more than 10 years of $252.4 million and $322.4 million as of May 31, 2017 , and August 31, 2016 , respectively. The long-term notes receivable are included in other assets on our Consolidated Balance Sheets. As of May 31, 2017 , and August 31, 2016 , the commercial notes represented 52% and 26% , respectively, and the producer notes represented 48% and 74% , respectively, of the total CHS Capital notes receivable. As of August 31, 2016, a single producer borrower accounted for 20% of the total outstanding CHS Capital notes receivable. During the third quarter of fiscal 2017, CHS Capital concluded a transaction with the single producer borrower whereby CHS Capital obtained from the borrower title to approximately 14,000 acres of land and improvements that, prior to the transaction, was owned by the borrower and served as collateral for the outstanding loans to CHS Capital. The amount corresponding to the fair value of the land and improvements, approximately $139.0 million , was credited against the notes receivable from this single producer borrower. As a result of this arrangement, all remaining outstanding notes receivable balances and corresponding reserves related to this single producer borrower were removed from the balance sheet of CHS Capital. However, we continue to enforce our rights under the various agreements between us and the producer borrower to pursue future potential recoveries. The collateral received in connection with the arrangement has been recorded in “Property, plant and equipment” on the Consolidated Balance Sheet. 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. Further, 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. Past due amounts were approximately 5.0% and 2.5% of the total CHS Capital notes outstanding as of May 31, 2017 , and August 31, 2016 , respectively. Specific and general loan loss reserves related to CHS Capital totaled $17.2 million and $45.8 million as of May 31, 2017 , and August 31, 2016 , respectively. The reduction in the reserve is substantially all related to the single producer borrower agreement discussed above. CHS Capital has commitments to extend credit to customers as long as there are no violations of any contractually established conditions. As of May 31, 2017 , customers of CHS Capital had additional available credit of approximately $966.2 million . |
Inventories
Inventories | 9 Months Ended |
May 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories May 31, 2017 August 31, 2016 (Dollars in thousands) Grain and oilseed $ 1,171,408 $ 937,258 Energy 750,170 729,695 Crop nutrients 181,380 217,521 Feed and farm supplies 530,081 417,431 Processed grain and oilseed 27,991 48,930 Other 23,057 19,864 Total inventories $ 2,684,087 $ 2,370,699 As of May 31, 2017 , we valued approximately 19% of inventories, primarily related to our Energy segment, using the lower of cost, determined on the LIFO method, or market ( 19% as of August 31, 2016 ). If the FIFO method of accounting had been used, inventories would have been higher than the reported amount by $140.9 million and $ 93.9 million as of May 31, 2017 , and August 31, 2016 , 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 are subject to the final year-end LIFO inventory valuation. |
Investments
Investments | 9 Months Ended |
May 31, 2017 | |
Investments [Abstract] | |
Investments | Investments 2017 2016 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,808,993 $ 2,796,323 Ventura Foods, LLC 374,006 369,487 Ardent Mills, LLC 195,869 194,986 TEMCO, LLC 41,581 44,578 Other equity method investments 290,391 263,025 Cost method investments 130,909 127,577 Total investments $ 3,841,749 $ 3,795,976 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 primary equity method investments are described below. On February 1, 2016, we invested $2.8 billion in CF Nitrogen, commencing our strategic venture with CF Industries Holdings, Inc. ("CF Industries"). The investment consists of an 11.4% membership interest (based on product tons) in CF Nitrogen. We also entered into an 80 -year supply agreement that entitles us to purchase up to 1.1 million tons of granular urea and 580,000 tons of urea ammonium nitrate ("UAN") annually from CF Nitrogen for ratable delivery. Our purchases under the supply agreement are based on prevailing market prices and we receive semi-annual cash distributions (in January and July of each year) from CF Nitrogen via our membership interest. These distributions are based on actual volumes purchased from CF Nitrogen under the strategic venture and will have the effect of reducing our investment to zero over 80 years on a straight-line basis. We account for this investment using the hypothetical liquidation at book value method, recognizing our share of the earnings and losses of CF Nitrogen based upon our contractual claims on the entity's net assets pursuant to the liquidation provisions of CF Nitrogen's limited liability company agreement, adjusted for the semi-annual cash distributions. For the three months ended May 31, 2017 , and 2016 , this amount was $24.5 million and $41.3 million , respectively. For the nine months ended May 31, 2017 , and 2016 , this amount was $60.8 million and $53.1 million , respectively. These amounts are included as equity income from investments in our Nitrogen Production segment. We have a 50% interest in Ventura Foods, a joint venture which produces and distributes primarily vegetable oil-based products, and which constitutes our Foods segment. We account for Ventura Foods as an equity method investment, and as of May 31, 2017 , our carrying value of Ventura Foods exceeded our share of its equity by $12.9 million , which represents equity method goodwill. The earnings are reported as equity income from investments in our Foods segment. We have a 12% interest in 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. We account for Ardent Mills as an equity method investment included in Corporate and Other. 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. The following table provides aggregate summarized unaudited financial information for our equity method investments in CF Nitrogen, Ventura Foods and Ardent Mills for the three and nine months ended May 31, 2017, and 2016: For the Three Months Ended May 31, For the Nine Months Ended May 31, 2017 2016 2017 2016 (Dollars in thousands) Net sales $ 2,043,628 $ 1,623,696 $ 5,807,777 $ 4,673,341 Gross profit 234,055 255,191 651,705 638,093 Net earnings 133,132 121,022 317,674 283,996 Earnings attributable to CHS Inc. 38,662 64,615 104,568 118,845 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 9 Months Ended |
May 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Goodwill of $153.3 million and $160.4 million as of May 31, 2017 , and August 31, 2016 , respectively, is included in other assets on our Consolidated Balance Sheets. Changes in the net carrying amount of goodwill for the nine months ended May 31, 2017 , by segment, are as follows: Energy Ag Corporate Total (Dollars in thousands) Balances, August 31, 2016 $ 552 $ 148,916 $ 10,946 $ 160,414 Effect of foreign currency translation adjustments — (868 ) — (868 ) Impairment — (5,542 ) — (5,542 ) Other — (298 ) (372 ) (670 ) Balances, May 31, 2017 $ 552 $ 142,208 $ 10,574 $ 153,334 No goodwill has been allocated to our Nitrogen Production or Foods segments, which consist of investments accounted for under the equity method. All long-lived assets, including property, plant and equipment, goodwill, investments in unconsolidated affiliates and other identifiable intangible assets, are evaluated for impairment in accordance with GAAP. Goodwill is evaluated for impairment annually as of May 31. All long-lived assets, including goodwill, are also evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group or reporting unit may not be recoverable. No impairments were identified as a result of the Company’s annual goodwill analyses performed as of May 31, 2017. During the three months ended May 31, 2017, certain assets and liabilities associated with a disposal group in our Ag segment were classified as held for sale, including $5.5 million of goodwill allocated to the disposal group on a relative fair value basis. As a result of an impairment test performed over the disposal group, an impairment charge of $51.8 million which includes the allocated goodwill discussed above, was recorded in the Reserve and impairment charges line item in the Consolidated Statements of Operations for the three and nine months ended May 31, 2017. Following the impairment charge, the assets remaining within the disposal group primarily include property, plant and equipment of $32.4 million , inventories of $23.9 million , accounts receivable of $8.7 million , and intangible assets of $2.4 million . The disposal group represents assets being sold as part of a broader asset portfolio review project. Negotiations for the sale of these assets is ongoing and we believe their sale will be consummated within the next 12 months. The held for sale assets and liabilities are recorded in other current assets and accounts payable in our Consolidated Balance Sheet as of May 31, 2017. Intangible assets subject to amortization primarily include customer lists, trademarks and non-compete agreements, and are amortized over their respective useful lives (ranging from 2 to 30 years). Information regarding intangible assets that are included in other assets on our Consolidated Balance Sheets is as follows: May 31, August 31, Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 48,975 $ (14,568 ) $ 34,407 $ 51,554 $ (15,550 ) $ 36,004 Trademarks and other intangible assets 23,618 (21,713 ) 1,905 35,015 (26,253 ) 8,762 Total intangible assets $ 72,593 $ (36,281 ) $ 36,312 $ 86,569 $ (41,803 ) $ 44,766 Total amortization expense for intangible assets during the three and nine months ended May 31, 2017 , was $1.0 million and $3.3 million , respectively. Total amortization expense for intangible assets during the three and nine months ended May 31, 2016 , was $1.1 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 $ 3,654 Year 2 3,653 Year 3 3,487 Year 4 3,344 Year 5 3,170 |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 9 Months Ended |
May 31, 2017 | |
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 May 31, 2017 . May 31, 2017 August 31, 2016 (Dollars in thousands) Notes payable $ 2,465,333 $ 1,803,174 CHS Capital notes payable 856,475 928,305 Total notes payable $ 3,321,808 $ 2,731,479 On May 31, 2017 , our primary line of credit was a five -year, unsecured revolving credit facility with a committed amount of $3.0 billion which expires in September 2020. The outstanding balance on this facility was $1.1 billion and $700.0 million as of May 31, 2017 , and August 31, 2016 , respectively. During the nine months ended May 31, 2017 , we re-advanced $130.0 million under the revolving provision of our ten -year term loan with a syndication of banks that was originally arranged in September 2015. The terms of the re-advance are the same as the terms of the original term loan, with principal due on September 4, 2025, and interest calculated at a London Interbank Offered Rate ("LIBOR") plus an applicable margin ranging between 1.50% and 2.00% . Interest expense for the three months ended May 31, 2017 , and 2016, was $39.2 million and $37.5 million , respectively, net of capitalized interest of $1.6 million and $6.5 million , respectively. Interest expense for the nine months ended May 31, 2017 , and 2016, was $117.4 million and $71.6 million , respectively, net of capitalized interest of $4.7 million and $27.3 million , respectively. |
Income Tax Disclosure (Notes)
Income Tax Disclosure (Notes) | 9 Months Ended |
May 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes During the three months ended May 31, 2017, our Board of Directors adopted a resolution to treat equity redemptions of non-qualified equity certificates issued in fiscal 2013 and fiscal 2014 in the same manner as qualified equity certificates are treated and redeemed under the “Eligible Annual Association Equity” provision of the Board's Policy for the Redemption of CHS Inc. Equities. Previously we had not established an intent regarding the redemption of non-qualified equity certificates issued to cooperative association members and other corporate entity non-qualified equity participants, thus the tax benefit associated with redemption would have been recognized in future periods as those redemptions occurred. As a result of the new resolution, we recorded a $75.0 million deferred tax benefit during the third quarter of fiscal 2017 related to the future redemption, at the discretion of our Board of Directors, of non-qualified equity certificates to cooperative association members and other corporate entity non-qualified equity participants. During the three months ended May 31, 2017, we incurred losses associated with a trading partner of ours in Brazil entering into bankruptcy proceedings under Brazilian law, and we will be required to fund approximately $230.0 million of losses in our Brazilian operations via guarantees in place with our Brazilian subsidiary and its lending syndicate. Performance of these guarantees results in a bad debt deduction on our U.S. tax return, subject to the insurance and subrogation recovery provisions within the U.S. Tax Code. As a result of performance on the guarantee, we recorded an $84.4 million deferred tax benefit during the third quarter of fiscal 2017. These two tax benefits are the primary contributors to our tax benefit position for the three and nine month periods ended May 31, 2017, within the Consolidated Statements of Operations. |
Equities
Equities | 9 Months Ended |
May 31, 2017 | |
Equity [Abstract] | |
Equities | Equities Changes in Equities Changes in equities for the nine months ended May 31, 2017 , are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance, August 31, 2016 $ 3,932,513 $ 22,894 $ 281,767 $ 2,244,132 $ (211,726 ) $ 1,582,380 $ 14,290 $ 7,866,250 Reversal of prior year patronage and redemption estimates (121,892 ) — — — — 278,968 — 157,076 Distribution of 2016 patronage refunds 153,589 — — — — (257,468 ) — (103,879 ) Redemptions of equities (43,949 ) (154 ) (1,386 ) — — — — (45,489 ) Equities issued, net 3,176 — — 19,986 — — — 23,162 Preferred stock dividends — — — — — (139,760 ) — (139,760 ) Other, net (7,560 ) 7,300 (391 ) (55 ) — 3,046 (1,066 ) 1,274 Net income — — — — — 178,532 (757 ) 177,775 Other comprehensive income (loss), net of tax — — — — 2,026 — — 2,026 Estimated 2017 cash patronage refunds — — — — — (68,229 ) — (68,229 ) Estimated 2017 equity redemptions (11,250 ) — — — — — — (11,250 ) Balance, May 31, 2017 $ 3,904,627 $ 30,040 $ 279,990 $ 2,264,063 $ (209,700 ) $ 1,577,469 $ 12,467 $ 7,858,956 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the nine months ended May 31, 2017 , and 2016 : 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, 2016 $ (165,146 ) $ 5,656 $ (9,196 ) $ (43,040 ) $ (211,726 ) Current period other comprehensive income (loss), net of tax (309 ) 1,627 1,184 (12,208 ) (9,706 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 10,908 — 809 15 11,732 Net other comprehensive income (loss), net of tax 10,599 1,627 1,993 (12,193 ) 2,026 Balance as of May 31, 2017 $ (154,547 ) $ 7,283 $ (7,203 ) $ (55,233 ) $ (209,700 ) 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, 2015 $ (171,729 ) $ 4,156 $ (5,324 ) $ (41,310 ) $ (214,207 ) Current period other comprehensive income (loss), net of tax 135 462 (6,805 ) (6,380 ) (12,588 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 9,671 — 2,860 470 13,001 Net other comprehensive income (loss), net of tax 9,806 462 (3,945 ) (5,910 ) 413 Balance as of May 31, 2016 $ (161,923 ) $ 4,618 $ (9,269 ) $ (47,220 ) $ (213,794 ) Amounts reclassified from accumulated other comprehensive income (loss) were primarily related to pension and other post-retirement benefits. Pension and other post-retirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts and are recorded as marketing, general and administrative expenses (see Note 9, Benefit Plans for further information). |
Benefit Plans
Benefit Plans | 9 Months Ended |
May 31, 2017 | |
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 nine months ended May 31, 2017 , and 2016 , are as follows: Qualified Pension Benefits Non-Qualified Pension Benefits Other Benefits 2017 2016 2017 2016 2017 2016 Components of net periodic benefit costs for the three months ended May 31 are as follows: (Dollars in thousands) Service cost $ 10,537 $ 9,383 $ 302 $ 258 $ 290 $ 353 Interest cost 5,753 7,691 210 352 232 427 Expected return on assets (12,058 ) (12,013 ) — — — — Prior service cost (credit) amortization 385 402 4 57 (141 ) (30 ) Actuarial (gain) loss amortization 5,708 4,765 136 172 (199 ) (116 ) Net periodic benefit cost $ 10,325 $ 10,228 $ 652 $ 839 $ 182 $ 634 Components of net periodic benefit costs for the nine months ended May 31 are as follows: Service cost $ 31,612 $ 28,149 $ 905 $ 776 $ 870 $ 1,059 Interest cost 17,257 23,075 632 1,055 698 1,282 Expected return on assets (36,173 ) (36,040 ) — — — — Prior service cost (credit) amortization 1,155 1,205 14 171 (424 ) (90 ) Actuarial (gain) loss amortization 17,123 14,294 409 518 (598 ) (348 ) Net periodic benefit cost $ 30,974 $ 30,683 $ 1,960 $ 2,520 $ 546 $ 1,903 Employer Contributions Total contributions to be made during fiscal 2017 will depend primarily on market returns on the pension plan assets and minimum funding level requirements. During the nine months ended May 31, 2017 , we made no contributions to the pension plans. At this time, we do not anticipate being required to make a contribution for our benefit plans in fiscal 2017. |
Segment Reporting
Segment Reporting | 9 Months Ended |
May 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We define our operating segments in accordance with ASC Topic 280, Segment Reporting , to reflect the manner in which our chief operating decision maker, our Chief Executive Officer, evaluates performance and allocates resources in managing our business. We have aggregated those operating segments into four reportable segments: Energy, Ag, Nitrogen Production and Foods. 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; serves as a wholesaler and retailer of crop inputs; and produces and markets ethanol. Our Nitrogen Production segment consists solely of our equity method investment in CF Nitrogen, which was completed in February 2016 and which entitles us, pursuant to a supply agreement that we entered into with CF Nitrogen, to purchase up to a specified annual quantity of granular urea and UAN annually from CF Nitrogen. The addition of our Nitrogen Production segment had no impact on historically reported segment results and balances as this segment came into existence in fiscal 2016. Our Foods segment consists solely of our equity method investment in Ventura Foods. In prior periods, Ventura Foods was reported as a component of Corporate and Other. Historically reported segment results and balances have been revised to reflect the addition of our Foods segment. There were no changes to the composition of our Energy or Ag segments as a result of the addition of our Nitrogen Production and Foods segments. Corporate and Other primarily represents our non-consolidated wheat milling operations, as well as our business solutions operations, which primarily consists of commodities hedging, insurance and financial services related to crop production. Corporate administrative expenses and interest 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. Many of our business activities are highly seasonal and operating results vary throughout the year. For example, in our Ag segment, our crop nutrients and country operations businesses generally experience higher volumes and income during the spring planting season and in the fall, which corresponds to harvest. Our grain marketing operations are also subject to fluctuations in volume 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 fall 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, ethanol, 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, drought, 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. See Note 4, Investments for more information on these entities. Reconciling Amounts represent the elimination of revenues and interest 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 nine months ended May 31, 2017 , and 2016 , is presented in the tables below. Energy Ag Nitrogen Production Foods Corporate Reconciling Total For the Three Months Ended May 31, 2017: (Dollars in thousands) Revenues $ 1,638,107 $ 7,053,991 $ — $ — $ 26,820 $ (104,828 ) $ 8,614,090 Operating earnings (loss) (5,723 ) (226,668 ) (5,619 ) (3,101 ) 10,814 — (230,297 ) (Gain) loss on investments — (393 ) — — — — (393 ) Interest expense 4,343 16,609 10,708 (231 ) 8,358 (586 ) 39,201 Other income (332 ) (12,493 ) (477 ) — 1,162 586 (11,554 ) Equity (income) loss from investments (391 ) (9,199 ) (24,534 ) (9,920 ) (4,349 ) — (48,393 ) Income (loss) before income taxes $ (9,343 ) $ (221,192 ) $ 8,684 $ 7,050 $ 5,643 $ — $ (209,158 ) Intersegment revenues $ (97,876 ) $ (7,545 ) $ — $ — $ 593 $ 104,828 $ — Energy Ag Nitrogen Production Foods Corporate Reconciling Total For the Three Months Ended May 31, 2016: (Dollars in thousands) Revenues $ 1,322,624 $ 6,526,714 $ — $ — $ 25,114 $ (77,864 ) $ 7,796,588 Operating earnings (loss) 103,614 24,432 253 (2,243 ) 22,004 — 148,060 (Gain) loss on investments — (881 ) — — 181 — (700 ) Interest expense (4,270 ) 24,518 16,549 645 7,951 (7,927 ) 37,466 Other income (217 ) (17,473 ) — — (1,011 ) 7,927 (10,774 ) Equity (income) loss from investments (1,300 ) (5,931 ) (41,257 ) (19,922 ) (4,043 ) — (72,453 ) Income (loss) before income taxes $ 109,401 $ 24,199 $ 24,961 $ 17,034 $ 18,926 $ — $ 194,521 Intersegment revenues $ (76,114 ) $ (3,016 ) $ — $ — $ 1,266 $ 77,864 $ — Energy Ag Nitrogen Production Foods Corporate Reconciling Total For the Nine Months Ended May 31, 2017: (Dollars in thousands) Revenues $ 4,867,321 $ 19,345,316 $ — $ — $ 85,691 $ (315,582 ) $ 23,982,746 Operating earnings (loss) 86,563 (131,363 ) (14,033 ) (8,370 ) 33,904 — (33,299 ) (Gain) loss on investments — 6,302 — — (2,076 ) — 4,226 Interest expense 12,176 49,798 35,626 (231 ) 27,743 (7,701 ) 117,411 Other income (828 ) (48,103 ) (30,047 ) — 868 7,701 (70,409 ) Equity (income) loss from investments (2,039 ) (18,071 ) (60,787 ) (28,850 ) (14,774 ) — (124,521 ) Income (loss) before income taxes $ 77,254 $ (121,289 ) $ 41,175 $ 20,711 $ 22,143 $ — $ 39,994 Intersegment revenues $ (297,057 ) $ (16,068 ) $ — $ — $ (2,457 ) $ 315,582 $ — Total assets at May 31, 2017 $ 4,292,789 $ 7,028,635 $ 2,834,040 $ 374,007 $ 2,692,326 $ — $ 17,221,797 Energy Ag Nitrogen Production Foods Corporate Reconciling Total For the Nine Months Ended May 31, 2016: (Dollars in thousands) Revenues $ 4,162,685 $ 18,221,420 $ — $ — $ 68,210 $ (287,605 ) $ 22,164,710 Operating earnings (loss) 214,827 77,605 (5,506 ) (6,319 ) 35,464 — 316,071 (Gain) loss on investments — (6,595 ) — — (2,827 ) — (9,422 ) Interest expense (20,723 ) 57,785 21,286 2,246 18,886 (7,927 ) 71,553 Other income (174 ) (27,778 ) — — (2,130 ) 7,927 (22,155 ) Equity (income) loss from investments (3,487 ) (8,152 ) (53,112 ) (55,449 ) (11,619 ) — (131,819 ) Income (loss) before income taxes $ 239,211 $ 62,345 $ 26,320 $ 46,884 $ 33,154 $ — $ 407,914 Intersegment revenues $ (250,425 ) $ (36,032 ) $ — $ — $ (1,148 ) $ 287,605 $ — |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
May 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities Disclosure | 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 we do not apply hedge accounting under ASC Topic 815, Derivatives and Hedging , except with respect to 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 described 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 our 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 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 . May 31, 2017 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 $ 363,627 $ — $ 27,711 $ 335,916 Foreign exchange derivatives 10,558 — 3,895 6,663 Interest rate derivatives - hedge 9,496 — — 9,496 Embedded derivative asset - current 4,507 — — 4,507 Total current derivatives $ 388,188 $ — $ 31,606 $ 356,582 Embedded derivative asset - long term 20,540 — — 20,540 Total $ 408,728 $ — $ 31,606 $ 377,122 Derivative Liabilities: Commodity and freight derivatives $ 271,337 $ 3,136 $ 27,711 $ 240,490 Foreign exchange derivatives 11,689 — 3,895 7,794 Interest rate derivatives - hedge 1,182 — — 1,182 Interest rate derivatives - non-hedge 4 — — 4 Total $ 284,212 $ 3,136 $ 31,606 $ 249,470 August 31, 2016 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 $ 500,192 $ — $ 23,689 $ 476,503 Foreign exchange derivatives 21,551 — 9,187 12,364 Interest rate derivatives - hedge 22,078 — — 22,078 Total $ 543,821 $ — $ 32,876 $ 510,945 Derivative Liabilities: Commodity and freight derivatives $ 491,302 $ 811 $ 23,689 $ 466,802 Foreign exchange derivatives 22,289 — 9,187 13,102 Interest rate derivatives - non-hedge 8 — — 8 Total $ 513,599 $ 811 $ 32,876 $ 479,912 Derivatives Not Designated as Hedging Instruments The majority of our derivative instruments have not been designated as hedging instruments for accounting purposes. 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 nine months ended May 31, 2017 , and 2016 . For the Three Months Ended May 31, For the Nine Months Ended May 31, Location of Gain (Loss) 2017 2016 2017 2016 (Dollars in thousands) Commodity and freight derivatives Cost of goods sold $ 102,327 $ (193,548 ) $ 177,633 $ (103,532 ) Foreign exchange derivatives Cost of goods sold (7,168 ) 2,249 (4,573 ) (7,550 ) Foreign exchange derivatives Marketing, general and administrative 22 (12,820 ) (784 ) 2,308 Interest rate derivatives Interest expense — (5,096 ) 4 (6,299 ) Embedded derivative Other Income 477 — 30,051 — Total $ 95,658 $ (209,215 ) $ 202,331 $ (115,073 ) Commodity and Freight Contracts As of May 31, 2017 , and August 31, 2016 , we had outstanding commodity futures, options and freight contracts that were used as economic hedges, as well as fixed-price forward contracts related to physical purchases and sales of commodities. The table below presents the notional volumes for all outstanding commodity and freight contracts accounted for as derivative instruments. May 31, 2017 August 31, 2016 Long Short Long Short (Units in thousands) Grain and oilseed - bushels 663,358 860,178 774,279 995,396 Energy products - barrels 13,694 8,151 14,740 6,470 Processed grain and oilseed - tons 327 2,188 541 2,060 Crop nutrients - tons 70 241 108 135 Ocean and barge freight - metric tons 4,110 876 4,406 877 Rail freight - rail cars 210 97 205 79 Natural gas - MMBtu 3,275 — 3,550 300 Foreign Exchange Contracts We are exposed to risk regarding foreign currency fluctuations even though a substantial amount of international sales are denominated in U.S. dollars. In addition to specific transactional exposure, foreign currency fluctuations can 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. From time to time, we enter into foreign currency hedge contracts to minimize the impact of currency fluctuations on our transactional exposures. The notional amounts of our foreign exchange derivative contracts were $789.4 million and $802.2 million as of May 31, 2017 , and August 31, 2016 , respectively. Embedded Derivative Asset Under the terms of our strategic investment in CF Nitrogen, if CF Industries' credit rating is reduced below certain levels by two of three specified credit ratings agencies, we are entitled to receive a non-refundable annual payment of $5.0 million from CF Industries. The payment would continue on an annual basis until the date that CF Industries' credit rating is upgraded to or above certain levels by two of the three specified credit ratings agencies or February 1, 2026, whichever is earlier. During the three months ended November 30, 2016, CF Industries' credit rating was reduced below the specified levels and we recorded a gain of $29.1 million in other income in our Consolidated Statement of Operations. During November 2016 we received a $5.0 million payment from CF Industries, which reduced the fair value of the associated embedded derivative asset to $24.1 million as of November 30, 2016. In addition, during the three months ended February 28, 2017, we recorded adjustments of $0.5 million in other income in our Consolidated Statement of Operations to reflect the $24.6 million fair value of the embedded derivative asset on our Consolidated Balance Sheet as of February 28, 2017. During the three months ended May 31, 2017, we recorded adjustments of $0.5 million in other income in our Consolidated Statement of Operations to reflect the $25.0 million fair value of the embedded derivative asset on our Consolidated Balance Sheet as of May 31, 2017. The current and long-term portions of the embedded derivative asset are included in derivative assets and other assets on our Consolidated Balance Sheet, respectively. See Note 12, Fair Value Measurements for more information on the valuation of the embedded derivative. Derivatives Designated as Cash Flow or Fair Value Hedging Strategies As of May 31, 2017 , and August 31, 2016 , we had 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 $495.0 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 three-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 nine months ended May 31, 2017 , and 2016 , we recorded offsetting fair value adjustments of $13.8 million and $7.6 million , respectively, with no ineffectiveness recorded in earnings. In fiscal 2015, we entered into forward-starting 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. During the first quarter of fiscal 2016, we determined that certain of the anticipated debt issuances would be delayed; and we consequently recorded the losses on the ineffective portion of the related swaps in earnings. Additionally, we paid $6.4 million in cash to settle two of the interest rate swaps upon their scheduled termination dates. During the second quarter of fiscal 2016, we settled an additional two interest rate swaps, paying $5.3 million in cash upon their scheduled termination. In January 2016, we issued the fixed-rate debt associated with these swaps and will amortize the amounts which were previously deferred to other comprehensive income into earnings over the life of the debt. The amounts to be included in earnings are not expected to be material during any 12-month period. During the third quarter of fiscal 2016, we settled the remaining two interest rate swaps, paying $5.1 million in cash upon their scheduled termination. We did not issue additional fixed-rate debt as previously planned, and we reclassified all amounts previously recorded to other comprehensive income into earnings. As of May 31, 2017 , we had no outstanding cash flow hedges. The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three and nine months ended May 31, 2017 , and 2016 . For the Three Months Ended May 31, For the Nine Months Ended May 31, 2017 2016 2017 2016 (Dollars in thousands) Interest rate derivatives $ — $ — $ — $ (10,070 ) 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 nine months ended May 31, 2017 , and 2016 . For the Three Months Ended May 31, For the Nine Months Ended May 31, Location of Gain (Loss) 2017 2016 2017 2016 (Dollars in thousands) Interest rate derivatives Interest expense $ (435 ) $ (4,166 ) $ (1,311 ) $ (4,631 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
May 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs or market data that a market participant would obtain from sources independent of us to value the asset or liability. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The fair value hierarchy consists of three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Recurring fair value measurements at May 31, 2017 , and August 31, 2016 , are as follows: May 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (Dollars in thousands) Assets: Commodity and freight derivatives $ 25,493 $ 338,134 $ — $ 363,627 Foreign currency derivatives — 10,558 — 10,558 Interest rate swap derivatives — 9,496 — 9,496 Deferred compensation assets 51,710 — — 51,710 Embedded derivative asset — 25,047 — 25,047 Other assets 13,760 — — 13,760 Total $ 90,963 $ 383,235 $ — $ 474,198 Liabilities: Commodity and freight derivatives $ 31,941 $ 239,396 $ — $ 271,337 Foreign currency derivatives — 11,689 — 11,689 Interest rate swap derivatives — 1,186 — 1,186 Crack spread contingent consideration liability — — 1,778 1,778 Total $ 31,941 $ 252,271 $ 1,778 $ 285,990 August 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (Dollars in thousands) Assets: Commodity and freight derivatives $ 62,538 $ 437,654 $ — $ 500,192 Foreign currency derivatives — 21,551 — 21,551 Interest rate swap derivatives — 22,078 — 22,078 Deferred compensation assets 50,099 — — 50,099 Other assets 12,678 — — 12,678 Total $ 125,315 $ 481,283 $ — $ 606,598 Liabilities: Commodity and freight derivatives $ 22,331 $ 468,971 $ — $ 491,302 Foreign currency derivatives — 22,289 — 22,289 Interest rate swap derivatives — 8 — 8 Crack spread contingent consideration liability — — 15,051 15,051 Total $ 22,331 $ 491,268 $ 15,051 $ 528,650 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 with fixed-price components, ocean freight contracts and other over-the-counter ("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 derivatives are determined utilizing valuation models that are widely accepted in the market to value these 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 expense. See Note 11, Derivative Financial Instruments and Hedging Activities for additional information about interest rates 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. Embedded derivative asset — As of May 31, 2017 , we had an embedded derivative asset of $25.0 million to reflect the fair value of an embedded derivative inherent to the agreement relating to our investment in CF Nitrogen. The inputs into the fair value measurement include the probability of future upgrades and downgrades of CF Industries' credit rating based on historical credit rating movements of other public companies and the discount rates to be applied to potential annual payments based on applicable historical and current yield coupon rates. Based on these observable inputs, our fair value measurement is classified within Level 2. See Note 11, Derivative Financial Instruments and Hedging Activities for additional information. Crack spread contingent consideration liability — The fair value of the contingent consideration liability related to the purchase of CHS McPherson Refinery Inc., the sole owner of our McPherson, Kansas refinery, 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 Item Fair Value May 31, 2017 (Dollars in thousands) Valuation Technique Unobservable Input Input Used Crack spread contingent consideration liability $1,778 Adjusted Black-Scholes option pricing model Forward crack spread margin quotes on May 31, 2017 (a) $14.56 Contractual target crack spread margin (b) $17.50 Expected volatility (c) 78.71% Risk-free interest rate (d) 0.94% Expected life - years (e) 0.25 (a) Represents forward crack spread margin quotes and management estimates based on the future settlement date. (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 number of years remaining related to the final 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. 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 May 31, 2017 , and 2016 . Level 3 Liabilities Crack spread contingent consideration liability 2017 2016 (Dollars in thousands) Balances, February 28, 2017, and February 29, 2016, respectively $ 2,172 $ 24,155 Total (gains) losses included in cost of goods sold (394 ) 506 Balances, May 31, 2017, and 2016, respectively $ 1,778 $ 24,661 The following table represents a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the nine months ended May 31, 2017 , and 2016 . Level 3 Liabilities Crack spread contingent consideration liability 2017 2016 (Dollars in thousands) Balances, August 31, 2016, and 2015, respectively $ 15,051 $ 75,982 Total (gains) losses included in cost of goods sold (13,273 ) (51,321 ) Balances, May 31, 2017, and 2016, respectively $ 1,778 $ 24,661 There were no material transfers between Level 1, Level 2 and Level 3 assets and liabilities during the three and nine months ended May 31, 2017 , and 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
May 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies Environmental We are required to comply with various environmental laws and regulations incidental to our normal business operations. In order to meet our compliance requirements, we establish reserves for the probable future costs of remediation of identified issues, which are included in cost of goods sold and marketing, general and administrative in our Consolidated Statements of Operations. The resolution of any such matters may affect consolidated net income for any fiscal period; however, we believe any resulting liabilities, individually or in the aggregate, will not have a material effect on our consolidated financial position, results of operations or cash flows during any fiscal year. Other Litigation and Claims We are involved as a defendant in various lawsuits, claims and disputes, which are in the normal course of our business. The resolution of any such matters may affect consolidated net income for any fiscal period; however, we believe any resulting liabilities, individually or in the aggregate, will not have a material effect on our consolidated financial position, results of operations or cash flows during any fiscal year. Guarantees We are a guarantor for lines of credit and performance obligations of related, non-consolidated companies. As of May 31, 2017 , our bank covenants allowed maximum guarantees of $1.0 billion , of which $101.5 million were 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 these guarantees were current as of May 31, 2017 . |
Organization, Basis of Presen20
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy | Our consolidated financial statements include the accounts of CHS and all of our wholly owned and majority owned subsidiaries. The effects of all significant intercompany transactions have been eliminated. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended August 31, 2016 , included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC"). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted In January 2017, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairment. The amendments within this ASU eliminate Step 2 of the goodwill impairment test, which requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under the amended standard, goodwill impairment is instead measured using Step 1 of the goodwill impairment test with goodwill impairment being equal to the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. We elected to early adopt ASU No. 2017-04 during the second quarter of fiscal 2017. The amendments have been applied to the annual goodwill impairment testing performed as of May 31, 2017, and will be applied prospectively to all future goodwill impairment tests performed on an interim or annual basis. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which simplifies the presentation of debt issuance costs. This ASU requires the presentation of debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred financing cost. This ASU was effective for us beginning September 1, 2016, for our fiscal year 2017 and for interim periods within that fiscal year. As a result, $5.6 million of deferred issuance costs related to private placement debt and bank financing have been reclassified from other assets to long-term debt as of August 31, 2016 . In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , which codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line of credit arrangements as assets. ASU No. 2015-15 was effective immediately. At August 31, 2016, we had unamortized deferred financing costs related to our line of credit arrangements, and we will continue to present debt issuance costs related to line of credit arrangements as an asset in our Consolidated Balance Sheets. Not Yet Adopted In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Postretirement Benefit Cost. This ASU is intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted as of the beginning of an annual period for which interim financial statements have not been issued or made available for issuance. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business . The amendments within this ASU narrow the existing definition of a business and provide a more robust framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The definition of a business impacts various areas of accounting, including acquisitions, disposals and goodwill. Under the new guidance, fewer acquisitions are expected to be considered businesses. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted and the guidance should be applied prospectively to transactions following the adoption date. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This ASU is intended to reduce diversity in practice by adding or clarifying guidance on classification and presentation of changes in restricted cash on the statement of cash flows. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted, including in an interim period. The amendments in this ASU should be applied retrospectively to all periods presented. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This ASU is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory by requiring an entity to recognize the income tax consequences when a transfer occurs, instead of when an asset is sold to an outside party. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted as of the beginning of an annual reporting period for which interim or annual financial statements have not been issued. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to reduce existing diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. Early adoption is permitted, including in an interim period. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . The amendments in this ASU introduce a new approach, based on expected losses, to estimate credit losses on certain types of financial instruments. This ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses associated with most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This ASU is effective for us beginning September 1, 2020, for our fiscal year 2021 and for interim periods within that fiscal year. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which replaces the existing guidance in Accounting Standards Codification ("ASC") 840 - Leases . The amendments within this ASU introduce a lessee model requiring entities to recognize assets and liabilities for most leases, but continue recognizing the associated expenses in a manner similar to existing accounting guidance. This ASU does not make fundamental changes to existing lessor accounting; however, it does modify what constitutes a sales-type or direct financing lease and the related accounting, and aligns a number of the underlying principles with those of the new revenue standard, ASU No. 2014-09. The guidance also eliminates existing real estate-specific provisions and requires expanded qualitative and quantitative disclosures. Entities are required to apply the standard’s provisions using a modified retrospective approach at the beginning of the earliest comparative period presented in the year of adoption. This ASU is effective for us beginning September 1, 2019, for our fiscal year 2020 and for interim periods within that fiscal year. We are currently evaluating the impact the adoption will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The amendments within this ASU provide a single comprehensive model to be used in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU includes a five step model for the recognition of revenue, including (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations, and (5) recognizing revenue when (or as) an entity satisfies a performance obligation. This ASU also specifies the accounting for certain costs to obtain or fulfill a contract with a customer and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14 delaying the effective date of adoption for CHS to September 1, 2018. The FASB issued four subsequent ASUs in 2016 containing implementation guidance related to ASU No. 2014-09, including: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which is intended to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which contains certain provision and practical expedients in response to identified implementation issues; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which contains certain corrections and clarifications to increase stakeholders’ awareness of the proposals and to expedite improvements. ASU No. 2014-09 permits the use of either a full or modified retrospective method upon adoption. Although early application as of the original date is permitted, we expect to adopt ASU No. 2014-09 and the related ASUs on September 1, 2018, in the first quarter of fiscal 2019. We are continuing to evaluate the effect this guidance will have on our consolidated financial statements, including potential impacts on the timing of revenue recognition and additional information that may be necessary for expanded disclosures regarding revenue. We have completed an initial assessment of our revenue streams and are currently evaluating the quantitative and qualitative impacts of the new standard on our businesses. We expect to complete our evaluation by the end of fiscal 2017, which will allow us to select an adoption method and determine the impact that the new standard will have on our businesses. |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
May 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | May 31, 2017 August 31, 2016 (Dollars in thousands) Trade accounts receivable $ 1,739,027 $ 1,804,646 CHS Capital notes receivable 766,731 858,805 Other 464,051 380,956 2,969,809 3,044,407 Less allowances and reserves 247,484 163,644 Total receivables $ 2,722,325 $ 2,880,763 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
May 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | May 31, 2017 August 31, 2016 (Dollars in thousands) Grain and oilseed $ 1,171,408 $ 937,258 Energy 750,170 729,695 Crop nutrients 181,380 217,521 Feed and farm supplies 530,081 417,431 Processed grain and oilseed 27,991 48,930 Other 23,057 19,864 Total inventories $ 2,684,087 $ 2,370,699 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
May 31, 2017 | |
Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Table Text Block] | 2017 2016 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,808,993 $ 2,796,323 Ventura Foods, LLC 374,006 369,487 Ardent Mills, LLC 195,869 194,986 TEMCO, LLC 41,581 44,578 Other equity method investments 290,391 263,025 Cost method investments 130,909 127,577 Total investments $ 3,841,749 $ 3,795,976 |
Equity Method Investments [Table Text Block] | The following table provides aggregate summarized unaudited financial information for our equity method investments in CF Nitrogen, Ventura Foods and Ardent Mills for the three and nine months ended May 31, 2017, and 2016: For the Three Months Ended May 31, For the Nine Months Ended May 31, 2017 2016 2017 2016 (Dollars in thousands) Net sales $ 2,043,628 $ 1,623,696 $ 5,807,777 $ 4,673,341 Gross profit 234,055 255,191 651,705 638,093 Net earnings 133,132 121,022 317,674 283,996 Earnings attributable to CHS Inc. 38,662 64,615 104,568 118,845 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
May 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Goodwill [Table Text Block] | Energy Ag Corporate Total (Dollars in thousands) Balances, August 31, 2016 $ 552 $ 148,916 $ 10,946 $ 160,414 Effect of foreign currency translation adjustments — (868 ) — (868 ) Impairment — (5,542 ) — (5,542 ) Other — (298 ) (372 ) (670 ) Balances, May 31, 2017 $ 552 $ 142,208 $ 10,574 $ 153,334 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | May 31, August 31, Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 48,975 $ (14,568 ) $ 34,407 $ 51,554 $ (15,550 ) $ 36,004 Trademarks and other intangible assets 23,618 (21,713 ) 1,905 35,015 (26,253 ) 8,762 Total intangible assets $ 72,593 $ (36,281 ) $ 36,312 $ 86,569 $ (41,803 ) $ 44,766 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | (Dollars in thousands) Year 1 $ 3,654 Year 2 3,653 Year 3 3,487 Year 4 3,344 Year 5 3,170 |
Notes Payable and Long-Term D25
Notes Payable and Long-Term Debt (Tables) | 9 Months Ended |
May 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | May 31, 2017 August 31, 2016 (Dollars in thousands) Notes payable $ 2,465,333 $ 1,803,174 CHS Capital notes payable 856,475 928,305 Total notes payable $ 3,321,808 $ 2,731,479 |
Schedule of Interest,Net | Interest expense for the three months ended May 31, 2017 , and 2016, was $39.2 million and $37.5 million , respectively, net of capitalized interest of $1.6 million and $6.5 million , respectively. Interest expense for the nine months ended May 31, 2017 , and 2016, was $117.4 million and $71.6 million , respectively, net of capitalized interest of $4.7 million and $27.3 million , respectively. |
Equities (Tables)
Equities (Tables) | 9 Months Ended |
May 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the nine months ended May 31, 2017 , and 2016 : 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, 2016 $ (165,146 ) $ 5,656 $ (9,196 ) $ (43,040 ) $ (211,726 ) Current period other comprehensive income (loss), net of tax (309 ) 1,627 1,184 (12,208 ) (9,706 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 10,908 — 809 15 11,732 Net other comprehensive income (loss), net of tax 10,599 1,627 1,993 (12,193 ) 2,026 Balance as of May 31, 2017 $ (154,547 ) $ 7,283 $ (7,203 ) $ (55,233 ) $ (209,700 ) 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, 2015 $ (171,729 ) $ 4,156 $ (5,324 ) $ (41,310 ) $ (214,207 ) Current period other comprehensive income (loss), net of tax 135 462 (6,805 ) (6,380 ) (12,588 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 9,671 — 2,860 470 13,001 Net other comprehensive income (loss), net of tax 9,806 462 (3,945 ) (5,910 ) 413 Balance as of May 31, 2016 $ (161,923 ) $ 4,618 $ (9,269 ) $ (47,220 ) $ (213,794 ) |
Schedule of Stockholders Equity | Changes in equities for the nine months ended May 31, 2017 , are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance, August 31, 2016 $ 3,932,513 $ 22,894 $ 281,767 $ 2,244,132 $ (211,726 ) $ 1,582,380 $ 14,290 $ 7,866,250 Reversal of prior year patronage and redemption estimates (121,892 ) — — — — 278,968 — 157,076 Distribution of 2016 patronage refunds 153,589 — — — — (257,468 ) — (103,879 ) Redemptions of equities (43,949 ) (154 ) (1,386 ) — — — — (45,489 ) Equities issued, net 3,176 — — 19,986 — — — 23,162 Preferred stock dividends — — — — — (139,760 ) — (139,760 ) Other, net (7,560 ) 7,300 (391 ) (55 ) — 3,046 (1,066 ) 1,274 Net income — — — — — 178,532 (757 ) 177,775 Other comprehensive income (loss), net of tax — — — — 2,026 — — 2,026 Estimated 2017 cash patronage refunds — — — — — (68,229 ) — (68,229 ) Estimated 2017 equity redemptions (11,250 ) — — — — — — (11,250 ) Balance, May 31, 2017 $ 3,904,627 $ 30,040 $ 279,990 $ 2,264,063 $ (209,700 ) $ 1,577,469 $ 12,467 $ 7,858,956 |
Benefit Plans Schedule of Net B
Benefit Plans Schedule of Net Benefit Costs (Tables) | 9 Months Ended |
May 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs of Assumptions Used | Qualified Pension Benefits Non-Qualified Pension Benefits Other Benefits 2017 2016 2017 2016 2017 2016 Components of net periodic benefit costs for the three months ended May 31 are as follows: (Dollars in thousands) Service cost $ 10,537 $ 9,383 $ 302 $ 258 $ 290 $ 353 Interest cost 5,753 7,691 210 352 232 427 Expected return on assets (12,058 ) (12,013 ) — — — — Prior service cost (credit) amortization 385 402 4 57 (141 ) (30 ) Actuarial (gain) loss amortization 5,708 4,765 136 172 (199 ) (116 ) Net periodic benefit cost $ 10,325 $ 10,228 $ 652 $ 839 $ 182 $ 634 Components of net periodic benefit costs for the nine months ended May 31 are as follows: Service cost $ 31,612 $ 28,149 $ 905 $ 776 $ 870 $ 1,059 Interest cost 17,257 23,075 632 1,055 698 1,282 Expected return on assets (36,173 ) (36,040 ) — — — — Prior service cost (credit) amortization 1,155 1,205 14 171 (424 ) (90 ) Actuarial (gain) loss amortization 17,123 14,294 409 518 (598 ) (348 ) Net periodic benefit cost $ 30,974 $ 30,683 $ 1,960 $ 2,520 $ 546 $ 1,903 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
May 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Energy Ag Nitrogen Production Foods Corporate Reconciling Total For the Three Months Ended May 31, 2017: (Dollars in thousands) Revenues $ 1,638,107 $ 7,053,991 $ — $ — $ 26,820 $ (104,828 ) $ 8,614,090 Operating earnings (loss) (5,723 ) (226,668 ) (5,619 ) (3,101 ) 10,814 — (230,297 ) (Gain) loss on investments — (393 ) — — — — (393 ) Interest expense 4,343 16,609 10,708 (231 ) 8,358 (586 ) 39,201 Other income (332 ) (12,493 ) (477 ) — 1,162 586 (11,554 ) Equity (income) loss from investments (391 ) (9,199 ) (24,534 ) (9,920 ) (4,349 ) — (48,393 ) Income (loss) before income taxes $ (9,343 ) $ (221,192 ) $ 8,684 $ 7,050 $ 5,643 $ — $ (209,158 ) Intersegment revenues $ (97,876 ) $ (7,545 ) $ — $ — $ 593 $ 104,828 $ — Energy Ag Nitrogen Production Foods Corporate Reconciling Total For the Three Months Ended May 31, 2016: (Dollars in thousands) Revenues $ 1,322,624 $ 6,526,714 $ — $ — $ 25,114 $ (77,864 ) $ 7,796,588 Operating earnings (loss) 103,614 24,432 253 (2,243 ) 22,004 — 148,060 (Gain) loss on investments — (881 ) — — 181 — (700 ) Interest expense (4,270 ) 24,518 16,549 645 7,951 (7,927 ) 37,466 Other income (217 ) (17,473 ) — — (1,011 ) 7,927 (10,774 ) Equity (income) loss from investments (1,300 ) (5,931 ) (41,257 ) (19,922 ) (4,043 ) — (72,453 ) Income (loss) before income taxes $ 109,401 $ 24,199 $ 24,961 $ 17,034 $ 18,926 $ — $ 194,521 Intersegment revenues $ (76,114 ) $ (3,016 ) $ — $ — $ 1,266 $ 77,864 $ — Energy Ag Nitrogen Production Foods Corporate Reconciling Total For the Nine Months Ended May 31, 2017: (Dollars in thousands) Revenues $ 4,867,321 $ 19,345,316 $ — $ — $ 85,691 $ (315,582 ) $ 23,982,746 Operating earnings (loss) 86,563 (131,363 ) (14,033 ) (8,370 ) 33,904 — (33,299 ) (Gain) loss on investments — 6,302 — — (2,076 ) — 4,226 Interest expense 12,176 49,798 35,626 (231 ) 27,743 (7,701 ) 117,411 Other income (828 ) (48,103 ) (30,047 ) — 868 7,701 (70,409 ) Equity (income) loss from investments (2,039 ) (18,071 ) (60,787 ) (28,850 ) (14,774 ) — (124,521 ) Income (loss) before income taxes $ 77,254 $ (121,289 ) $ 41,175 $ 20,711 $ 22,143 $ — $ 39,994 Intersegment revenues $ (297,057 ) $ (16,068 ) $ — $ — $ (2,457 ) $ 315,582 $ — Total assets at May 31, 2017 $ 4,292,789 $ 7,028,635 $ 2,834,040 $ 374,007 $ 2,692,326 $ — $ 17,221,797 Energy Ag Nitrogen Production Foods Corporate Reconciling Total For the Nine Months Ended May 31, 2016: (Dollars in thousands) Revenues $ 4,162,685 $ 18,221,420 $ — $ — $ 68,210 $ (287,605 ) $ 22,164,710 Operating earnings (loss) 214,827 77,605 (5,506 ) (6,319 ) 35,464 — 316,071 (Gain) loss on investments — (6,595 ) — — (2,827 ) — (9,422 ) Interest expense (20,723 ) 57,785 21,286 2,246 18,886 (7,927 ) 71,553 Other income (174 ) (27,778 ) — — (2,130 ) 7,927 (22,155 ) Equity (income) loss from investments (3,487 ) (8,152 ) (53,112 ) (55,449 ) (11,619 ) — (131,819 ) Income (loss) before income taxes $ 239,211 $ 62,345 $ 26,320 $ 46,884 $ 33,154 $ — $ 407,914 Intersegment revenues $ (250,425 ) $ (36,032 ) $ — $ — $ (1,148 ) $ 287,605 $ — |
Derivative Financial Instrume29
Derivative Financial Instruments and Hedging Activities Derivative Financial Insturments and Hedging Activities (Tables) | 9 Months Ended |
May 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Reconciliation of gross and net fair values of assets and liabilities subject to offsetting arrangements [Table Text Block] | May 31, 2017 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 $ 363,627 $ — $ 27,711 $ 335,916 Foreign exchange derivatives 10,558 — 3,895 6,663 Interest rate derivatives - hedge 9,496 — — 9,496 Embedded derivative asset - current 4,507 — — 4,507 Total current derivatives $ 388,188 $ — $ 31,606 $ 356,582 Embedded derivative asset - long term 20,540 — — 20,540 Total $ 408,728 $ — $ 31,606 $ 377,122 Derivative Liabilities: Commodity and freight derivatives $ 271,337 $ 3,136 $ 27,711 $ 240,490 Foreign exchange derivatives 11,689 — 3,895 7,794 Interest rate derivatives - hedge 1,182 — — 1,182 Interest rate derivatives - non-hedge 4 — — 4 Total $ 284,212 $ 3,136 $ 31,606 $ 249,470 August 31, 2016 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 $ 500,192 $ — $ 23,689 $ 476,503 Foreign exchange derivatives 21,551 — 9,187 12,364 Interest rate derivatives - hedge 22,078 — — 22,078 Total $ 543,821 $ — $ 32,876 $ 510,945 Derivative Liabilities: Commodity and freight derivatives $ 491,302 $ 811 $ 23,689 $ 466,802 Foreign exchange derivatives 22,289 — 9,187 13,102 Interest rate derivatives - non-hedge 8 — — 8 Total $ 513,599 $ 811 $ 32,876 $ 479,912 |
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 for accounting purposes. 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 nine months ended May 31, 2017 , and 2016 . For the Three Months Ended May 31, For the Nine Months Ended May 31, Location of Gain (Loss) 2017 2016 2017 2016 (Dollars in thousands) Commodity and freight derivatives Cost of goods sold $ 102,327 $ (193,548 ) $ 177,633 $ (103,532 ) Foreign exchange derivatives Cost of goods sold (7,168 ) 2,249 (4,573 ) (7,550 ) Foreign exchange derivatives Marketing, general and administrative 22 (12,820 ) (784 ) 2,308 Interest rate derivatives Interest expense — (5,096 ) 4 (6,299 ) Embedded derivative Other Income 477 — 30,051 — Total $ 95,658 $ (209,215 ) $ 202,331 $ (115,073 ) |
Schedule of Derivative Instruments, Purchase and Sales Contracts [Table Text Block] | all outstanding commodity and freight contracts accounted for as derivative instruments. May 31, 2017 August 31, 2016 Long Short Long Short (Units in thousands) Grain and oilseed - bushels 663,358 860,178 774,279 995,396 Energy products - barrels 13,694 8,151 14,740 6,470 Processed grain and oilseed - tons 327 2,188 541 2,060 Crop nutrients - tons 70 241 108 135 Ocean and barge freight - metric tons 4,110 876 4,406 877 Rail freight - rail cars 210 97 205 79 Natural gas - MMBtu 3,275 — 3,550 300 |
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 nine months ended May 31, 2017 , and 2016 . For the Three Months Ended May 31, For the Nine Months Ended May 31, 2017 2016 2017 2016 (Dollars in thousands) Interest rate derivatives $ — $ — $ — $ (10,070 ) 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 nine months ended May 31, 2017 , and 2016 . For the Three Months Ended May 31, For the Nine Months Ended May 31, Location of Gain (Loss) 2017 2016 2017 2016 (Dollars in thousands) Interest rate derivatives Interest expense $ (435 ) $ (4,166 ) $ (1,311 ) $ (4,631 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
May 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | May 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (Dollars in thousands) Assets: Commodity and freight derivatives $ 25,493 $ 338,134 $ — $ 363,627 Foreign currency derivatives — 10,558 — 10,558 Interest rate swap derivatives — 9,496 — 9,496 Deferred compensation assets 51,710 — — 51,710 Embedded derivative asset — 25,047 — 25,047 Other assets 13,760 — — 13,760 Total $ 90,963 $ 383,235 $ — $ 474,198 Liabilities: Commodity and freight derivatives $ 31,941 $ 239,396 $ — $ 271,337 Foreign currency derivatives — 11,689 — 11,689 Interest rate swap derivatives — 1,186 — 1,186 Crack spread contingent consideration liability — — 1,778 1,778 Total $ 31,941 $ 252,271 $ 1,778 $ 285,990 August 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (Dollars in thousands) Assets: Commodity and freight derivatives $ 62,538 $ 437,654 $ — $ 500,192 Foreign currency derivatives — 21,551 — 21,551 Interest rate swap derivatives — 22,078 — 22,078 Deferred compensation assets 50,099 — — 50,099 Other assets 12,678 — — 12,678 Total $ 125,315 $ 481,283 $ — $ 606,598 Liabilities: Commodity and freight derivatives $ 22,331 $ 468,971 $ — $ 491,302 Foreign currency derivatives — 22,289 — 22,289 Interest rate swap derivatives — 8 — 8 Crack spread contingent consideration liability — — 15,051 15,051 Total $ 22,331 $ 491,268 $ 15,051 $ 528,650 |
Fair Value Inputs, Liabilities, Quantitative Information | Quantitative Information about Level 3 Fair Value Measurements Item Fair Value May 31, 2017 (Dollars in thousands) Valuation Technique Unobservable Input Input Used Crack spread contingent consideration liability $1,778 Adjusted Black-Scholes option pricing model Forward crack spread margin quotes on May 31, 2017 (a) $14.56 Contractual target crack spread margin (b) $17.50 Expected volatility (c) 78.71% Risk-free interest rate (d) 0.94% Expected life - years (e) 0.25 (a) Represents forward crack spread margin quotes and management estimates based on the future settlement date. (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 number of years remaining related to the final 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 May 31, 2017 , and 2016 . Level 3 Liabilities Crack spread contingent consideration liability 2017 2016 (Dollars in thousands) Balances, February 28, 2017, and February 29, 2016, respectively $ 2,172 $ 24,155 Total (gains) losses included in cost of goods sold (394 ) 506 Balances, May 31, 2017, and 2016, respectively $ 1,778 $ 24,661 The following table represents a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the nine months ended May 31, 2017 , and 2016 . Level 3 Liabilities Crack spread contingent consideration liability 2017 2016 (Dollars in thousands) Balances, August 31, 2016, and 2015, respectively $ 15,051 $ 75,982 Total (gains) losses included in cost of goods sold (13,273 ) (51,321 ) Balances, May 31, 2017, and 2016, respectively $ 1,778 $ 24,661 |
Organization, Basis of Presen31
Organization, Basis of Presentation and Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - Accounting Standards Update 2015-03 [Member] $ in Millions | Aug. 31, 2016USD ($) |
Other Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Debt Issuance Costs, Net | $ (5.6) |
Long-term Debt [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Debt Issuance Costs, Net | $ 5.6 |
Receivables - Schedule of Rece
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | May 31, 2017 | Aug. 31, 2016 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,739,027 | $ 1,804,646 |
CHS Capital notes receivable | 766,731 | 858,805 |
Other | 464,051 | 380,956 |
Receivables, gross | 2,969,809 | 3,044,407 |
Less allowances and reserves | 247,484 | 163,644 |
Total receivables | $ 2,722,325 | $ 2,880,763 |
Receivables - Narrative (Detai
Receivables - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
May 31, 2017USD ($)a | May 31, 2017USD ($)a | Aug. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for Doubtful Accounts Receivable, Period Increase (Decrease) | $ 98.7 | ||
Valuation Allowances and Reserves, Additions for Charges to Other Accounts | $ 130.7 | ||
Notes Receivable, Long-Term | |||
Area of Land | a | 14,000 | 14,000 | |
Land credited against debt, Value | $ 139 | $ 139 | |
Interest Income Accrual Term, Discontinued | 90 days | ||
CHS Capital long-term notes receivable additional available credit of counterparty | 966.2 | $ 966.2 | |
Minimum [Member] | |||
Notes Receivable, Short-Term | |||
CHS Capital notes receivable, current, term | 12 months | ||
Maximum [Member] | |||
Notes Receivable, Short-Term | |||
CHS Capital notes receivable, current, term | 14 months | ||
CHS Capital Notes Receivable [Member] | |||
Notes Receivable, Long-Term | |||
CHS Capital long-term notes receivable, non-current, term | 10 years | ||
CHS Capital long-term notes receivable | $ 252.4 | $ 252.4 | $ 322.4 |
Commercial Notes to Notes and Loans Receivable, Net, Percentage | 52.00% | 52.00% | 26.00% |
Producer Notes to Notes and Loans Receivable, Net, Percentage | 48.00% | 48.00% | 74.00% |
Financing Receivable, Percent Past Due | 5.00% | 2.50% | |
CHS Capital loan loss reserves | $ 17.2 | $ 17.2 | $ 45.8 |
Customer Concentration Risk [Member] | CHS Capital Notes Receivable [Member] | |||
Notes Receivable, Long-Term | |||
Concentration Risk, Percentage | 20.00% |
Inventories - Schedule of Inve
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | May 31, 2017 | Aug. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Grain and oilseed | $ 1,171,408 | $ 937,258 |
Energy | 750,170 | 729,695 |
Crop nutrients | 181,380 | 217,521 |
Feed and farm supplies | 530,081 | 417,431 |
Processed grain and oilseed | 27,991 | 48,930 |
Other | 23,057 | 19,864 |
Total inventories | $ 2,684,087 | $ 2,370,699 |
Inventories - Narrative (Detai
Inventories - Narrative (Details) - USD ($) $ in Millions | May 31, 2017 | Aug. 31, 2016 |
Inventory Disclosure [Abstract] | ||
LIFO inventory, difference amount had FIFO inventory valuation method been used | $ 140.9 | $ 93.9 |
Percentage of LIFO inventory | 19.00% | 19.00% |
Investments - Narrative (Detai
Investments - Narrative (Details) $ in Thousands, T in Millions | Feb. 01, 2016USD ($) | May 31, 2017USD ($)TTons | May 31, 2016USD ($) | May 31, 2017USD ($)TTons | May 31, 2016USD ($) | Feb. 01, 2096USD ($) | Aug. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity (income) loss from investments | $ (48,393) | $ (72,453) | $ (124,521) | $ (131,819) | |||
Cost Method Investments | 130,909 | 130,909 | $ 127,577 | ||||
Investments | $ 3,841,749 | $ 3,841,749 | 3,795,976 | ||||
CF Nitrogen LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Payments to Acquire Equity Method Investments | $ 2,800,000 | ||||||
Ownership percentage | 11.40% | ||||||
Supply agreement, term | 80 years | ||||||
Maximum annual granular urea eligible for purchase | T | 1.1 | 1.1 | |||||
Maximum annual UAN eligible for purchase | Tons | 580,000 | 580,000 | |||||
Equity Method Investments | $ 2,808,993 | $ 2,808,993 | 2,796,323 | ||||
Ventura Foods, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 374,006 | 374,006 | 369,487 | ||||
TEMCO, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 41,581 | 41,581 | 44,578 | ||||
Ardent Mills LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | $ 195,869 | $ 195,869 | 194,986 | ||||
Cargill, Inc. [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership of joint venture partner | 50.00% | 50.00% | |||||
Nitrogen Production [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity (income) loss from investments | $ (24,534) | (41,257) | $ (60,787) | (53,112) | |||
Foods [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity (income) loss from investments | $ (9,920) | (19,922) | $ (28,850) | (55,449) | |||
Foods [Member] | Ventura Foods, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 50.00% | 50.00% | |||||
Equity value exceeding carrying value | $ 12,900 | $ 12,900 | |||||
Corporate and Other | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity (income) loss from investments | $ (4,349) | (4,043) | $ (14,774) | (11,619) | |||
Corporate and Other | Ardent Mills LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 12.00% | 12.00% | |||||
Number of parent companies | 3 | 3 | |||||
Ag [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity (income) loss from investments | $ (9,199) | $ (5,931) | $ (18,071) | $ (8,152) | |||
Ag [Member] | TEMCO, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 50.00% | 50.00% | |||||
Scenario, Forecast [Member] | Nitrogen Production [Member] | CF Nitrogen LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | $ 0 | ||||||
Miscellaneous Investments [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | $ 290,391 | $ 290,391 | $ 263,025 |
Investments Equity Method inves
Investments Equity Method investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) attributable to CHS Inc. | $ (45,185) | $ 190,275 | $ 178,532 | $ 425,767 |
Ardent Mills, Ventura, TEMCO [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net Sales | 2,043,628 | 1,623,696 | 5,807,777 | 4,673,341 |
Gross Profit | 234,055 | 255,191 | 651,705 | 638,093 |
Net earnings | 133,132 | 121,022 | 317,674 | 283,996 |
Net income (loss) attributable to CHS Inc. | $ 38,662 | $ 64,615 | $ 104,568 | $ 118,845 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets Goodwill by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
May 31, 2017 | May 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning Balance, Goodwill | $ 160,414 | |
Effect of foreign currency translation adjustments | (868) | |
Goodwill, Impairment Loss | $ (5,500) | (5,542) |
Other | (670) | |
Ending Balance, Goodwill | 153,334 | 153,334 |
Energy [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance, Goodwill | 552 | |
Effect of foreign currency translation adjustments | 0 | |
Goodwill, Impairment Loss | 0 | |
Other | 0 | |
Ending Balance, Goodwill | 552 | 552 |
Ag [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance, Goodwill | 148,916 | |
Effect of foreign currency translation adjustments | (868) | |
Goodwill, Impairment Loss | (5,542) | |
Other | (298) | |
Ending Balance, Goodwill | 142,208 | 142,208 |
Corporate and Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance, Goodwill | 10,946 | |
Effect of foreign currency translation adjustments | 0 | |
Goodwill, Impairment Loss | 0 | |
Other | (372) | |
Ending Balance, Goodwill | 10,574 | 10,574 |
Nitrogen Production [Member] | ||
Goodwill [Roll Forward] | ||
Ending Balance, Goodwill | 0 | 0 |
Foods [Member] | ||
Goodwill [Roll Forward] | ||
Ending Balance, Goodwill | $ 0 | $ 0 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | Aug. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 1,000 | $ 1,100 | $ 3,300 | $ 4,900 | |
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, Carrying Amount | 48,975 | $ 48,975 | $ 51,554 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (14,568) | (14,568) | (15,550) | ||
Finite-Lived Intangible Assets, Net | 34,407 | 34,407 | 36,004 | ||
Trademarks and other intangible assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Carrying Amount | 23,618 | 23,618 | 35,015 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (21,713) | (21,713) | (26,253) | ||
Finite-Lived Intangible Assets, Net | 1,905 | 1,905 | 8,762 | ||
Total intangible assets [Domain] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Carrying Amount | 72,593 | 72,593 | 86,569 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (36,281) | (36,281) | (41,803) | ||
Finite-Lived Intangible Assets, Net | $ 36,312 | $ 36,312 | $ 44,766 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Details) $ in Thousands | 3 Months Ended |
May 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 3,654 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,653 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,487 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,344 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 3,170 |
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 51,800 |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 32,400 |
Disposal Group, Including Discontinued Operation, Inventory | 23,900 |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 8,700 |
Disposal Group, Including Discontinued Operation, Intangible Assets | $ 2,400 |
Notes Payable and Long-Term D41
Notes Payable and Long-Term Debt - Footnote Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2017 | Aug. 31, 2016 | |
Debt Instrument [Line Items] | ||
Notes payable | $ 3,321,808 | $ 2,731,479 |
Notes payable | ||
Debt Instrument [Line Items] | ||
Notes payable | 2,465,333 | 1,803,174 |
CHS Capital notes payable | ||
Debt Instrument [Line Items] | ||
Notes payable | 856,475 | 928,305 |
Five-Year Revolving Facilities [Member] | Line of Credit [Member] | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 3,000,000 | |
Debt Instrument, Term | 5 years | |
Long-term Line of Credit | $ 1,100,000 | $ 700,000 |
Committed Term Loans, September 2015 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 10 years | |
Long-term Debt | $ 130,000 | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Committed Term Loans, September 2015 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Committed Term Loans, September 2015 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Notes Payable and Long-Term D42
Notes Payable and Long-Term Debt - Schedule of Interest, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Debt Disclosure [Abstract] | ||||
Interest Expense | $ 39.2 | $ 37.5 | $ 117.4 | $ 71.6 |
Capitalized interest | $ (1.6) | $ (6.5) | $ (4.7) | $ (27.3) |
Income Tax Disclosure (Details)
Income Tax Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
May 31, 2017 | May 31, 2017 | May 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred taxes | $ (75,000) | $ (145,357) | $ (16,356) |
Counterparty losses | 230,000 | ||
Deferred Federal Income Tax Expense (Benefit) | $ (84,400) |
Equities Changes in Equity (Det
Equities Changes in Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ 7,866,250 | |||
Reversal of prior year patronage and redemption estimates | 157,076 | |||
Patronage Refunds | (103,879) | |||
Redemptions of equities | (45,489) | |||
Equity Issued During Period, Value, New Issues | 23,162 | |||
Preferred stock dividends | (139,760) | |||
Other, net | 1,274 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (46,140) | $ 189,683 | 177,775 | $ 425,675 |
Net income (loss) attributable to CHS Inc. | (45,185) | 190,275 | 178,532 | 425,767 |
Net income (loss) attributable to noncontrolling interests | (955) | (592) | (757) | (92) |
Other comprehensive income (loss), net of tax | 1,742 | $ 14,914 | 2,026 | $ 413 |
Estimated 2017 cash patronage refunds | (68,229) | |||
Estimated 2017 equity redemptions | (11,250) | |||
Ending Balance | 7,858,956 | 7,858,956 | ||
Capital equity certificates [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 3,932,513 | |||
Reversal of prior year patronage and redemption estimates | (121,892) | |||
Patronage Refunds | 153,589 | |||
Redemptions of equities | (43,949) | |||
Equity Issued During Period, Value, New Issues | 3,176 | |||
Other, net | (7,560) | |||
Estimated 2017 equity redemptions | (11,250) | |||
Ending Balance | 3,904,627 | 3,904,627 | ||
Nonpatronage Equity Certificates [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 22,894 | |||
Reversal of prior year patronage and redemption estimates | 0 | |||
Patronage Refunds | 0 | |||
Redemptions of equities | (154) | |||
Other, net | 7,300 | |||
Ending Balance | 30,040 | 30,040 | ||
Non-qualified Equity Certificates [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 281,767 | |||
Reversal of prior year patronage and redemption estimates | 0 | |||
Patronage Refunds | 0 | |||
Redemptions of equities | (1,386) | |||
Other, net | (391) | |||
Ending Balance | 279,990 | 279,990 | ||
Preferred Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 2,244,132 | |||
Redemptions of equities | 0 | |||
Equity Issued During Period, Value, New Issues | 19,986 | |||
Other, net | (55) | |||
Ending Balance | 2,264,063 | 2,264,063 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (211,726) | |||
Other comprehensive income (loss), net of tax | 2,026 | |||
Ending Balance | (209,700) | (209,700) | ||
Capital Reserves [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 1,582,380 | |||
Reversal of prior year patronage and redemption estimates | 278,968 | |||
Patronage Refunds | (257,468) | |||
Preferred stock dividends | (139,760) | |||
Other, net | 3,046 | |||
Net income (loss) attributable to CHS Inc. | 178,532 | |||
Estimated 2017 cash patronage refunds | (68,229) | |||
Ending Balance | 1,577,469 | 1,577,469 | ||
Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 14,290 | |||
Other, net | (1,066) | |||
Net income (loss) attributable to noncontrolling interests | (757) | |||
Ending Balance | $ 12,467 | $ 12,467 |
Equities Accumulated Other Comp
Equities Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 7,866,250 | |||
Other comprehensive income (loss), net of tax | $ 1,742 | $ 14,914 | 2,026 | $ 413 |
Ending Balance | 7,858,956 | 7,858,956 | ||
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (211,726) | (214,207) | ||
Current period other comprehensive income (loss), net of tax | (9,706) | (12,588) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 11,732 | 13,001 | ||
Other comprehensive income (loss), net of tax | 2,026 | 413 | ||
Ending Balance | (209,700) | (213,794) | (209,700) | (213,794) |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (165,146) | (171,729) | ||
Current period other comprehensive income (loss), net of tax | (309) | 135 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 10,908 | 9,671 | ||
Other comprehensive income (loss), net of tax | 10,599 | 9,806 | ||
Ending Balance | (154,547) | (161,923) | (154,547) | (161,923) |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 5,656 | 4,156 | ||
Current period other comprehensive income (loss), net of tax | 1,627 | 462 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 1,627 | 462 | ||
Ending Balance | 7,283 | 4,618 | 7,283 | 4,618 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (9,196) | (5,324) | ||
Current period other comprehensive income (loss), net of tax | 1,184 | (6,805) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 809 | 2,860 | ||
Other comprehensive income (loss), net of tax | 1,993 | (3,945) | ||
Ending Balance | (7,203) | (9,269) | (7,203) | (9,269) |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (43,040) | (41,310) | ||
Current period other comprehensive income (loss), net of tax | (12,208) | (6,380) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 15 | 470 | ||
Other comprehensive income (loss), net of tax | (12,193) | (5,910) | ||
Ending Balance | $ (55,233) | $ (47,220) | $ (55,233) | $ (47,220) |
Benefit Plans - Net Periodic B
Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Qualified Pension Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | $ 10,537,000 | $ 9,383,000 | $ 31,612,000 | $ 28,149,000 |
Interest cost | 5,753,000 | 7,691,000 | 17,257,000 | 23,075,000 |
Expected return on assets | (12,058,000) | (12,013,000) | (36,173,000) | (36,040,000) |
Prior service cost (credit) amortization | 385,000 | 402,000 | 1,155,000 | 1,205,000 |
Actuarial (gain) loss amortization | 5,708,000 | 4,765,000 | 17,123,000 | 14,294,000 |
Net periodic benefit cost | 10,325,000 | 10,228,000 | 30,974,000 | 30,683,000 |
Defined Benefit Plan, Contributions by Employer | 0 | |||
Non-Qualified Pension Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | 302,000 | 258,000 | 905,000 | 776,000 |
Interest cost | 210,000 | 352,000 | 632,000 | 1,055,000 |
Expected return on assets | 0 | 0 | 0 | 0 |
Prior service cost (credit) amortization | 4,000 | 57,000 | 14,000 | 171,000 |
Actuarial (gain) loss amortization | 136,000 | 172,000 | 409,000 | 518,000 |
Net periodic benefit cost | 652,000 | 839,000 | 1,960,000 | 2,520,000 |
Other Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | 290,000 | 353,000 | 870,000 | 1,059,000 |
Interest cost | 232,000 | 427,000 | 698,000 | 1,282,000 |
Expected return on assets | 0 | 0 | 0 | 0 |
Prior service cost (credit) amortization | (141,000) | (30,000) | (424,000) | (90,000) |
Actuarial (gain) loss amortization | (199,000) | (116,000) | (598,000) | (348,000) |
Net periodic benefit cost | $ 182,000 | $ 634,000 | $ 546,000 | $ 1,903,000 |
Segment Reporting - Segment In
Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | Aug. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 8,614,090 | $ 7,796,588 | $ 23,982,746 | $ 22,164,710 | |
Operating earnings (loss) | (230,297) | 148,060 | (33,299) | 316,071 | |
(Gain) loss on investments | (393) | (700) | 4,226 | (9,422) | |
Interest expense | 39,201 | 37,466 | 117,411 | 71,553 | |
Other income | (11,554) | (10,774) | (70,409) | (22,155) | |
Equity (income) loss from investments | (48,393) | (72,453) | (124,521) | (131,819) | |
Income (loss) before income taxes | (209,158) | 194,521 | 39,994 | 407,914 | |
Total assets | 17,221,797 | 17,221,797 | $ 17,312,135 | ||
Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,638,107 | 1,322,624 | 4,867,321 | 4,162,685 | |
Operating earnings (loss) | (5,723) | 103,614 | 86,563 | 214,827 | |
(Gain) loss on investments | 0 | 0 | 0 | 0 | |
Interest expense | 4,343 | (4,270) | 12,176 | (20,723) | |
Other income | (332) | (217) | (828) | (174) | |
Equity (income) loss from investments | (391) | (1,300) | (2,039) | (3,487) | |
Income (loss) before income taxes | (9,343) | 109,401 | 77,254 | 239,211 | |
Total assets | 4,292,789 | 4,292,789 | |||
Ag [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,053,991 | 6,526,714 | 19,345,316 | 18,221,420 | |
Operating earnings (loss) | (226,668) | 24,432 | (131,363) | 77,605 | |
(Gain) loss on investments | (393) | (881) | 6,302 | (6,595) | |
Interest expense | 16,609 | 24,518 | 49,798 | 57,785 | |
Other income | (12,493) | (17,473) | (48,103) | (27,778) | |
Equity (income) loss from investments | (9,199) | (5,931) | (18,071) | (8,152) | |
Income (loss) before income taxes | (221,192) | 24,199 | (121,289) | 62,345 | |
Total assets | 7,028,635 | 7,028,635 | |||
Nitrogen Production [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating earnings (loss) | (5,619) | 253 | (14,033) | (5,506) | |
(Gain) loss on investments | 0 | 0 | 0 | 0 | |
Interest expense | 10,708 | 16,549 | 35,626 | 21,286 | |
Other income | (477) | 0 | (30,047) | 0 | |
Equity (income) loss from investments | (24,534) | (41,257) | (60,787) | (53,112) | |
Income (loss) before income taxes | 8,684 | 24,961 | 41,175 | 26,320 | |
Total assets | 2,834,040 | 2,834,040 | |||
Foods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating earnings (loss) | (3,101) | (2,243) | (8,370) | (6,319) | |
(Gain) loss on investments | 0 | 0 | 0 | 0 | |
Interest expense | (231) | 645 | (231) | 2,246 | |
Other income | 0 | 0 | 0 | 0 | |
Equity (income) loss from investments | (9,920) | (19,922) | (28,850) | (55,449) | |
Income (loss) before income taxes | 7,050 | 17,034 | 20,711 | 46,884 | |
Total assets | 374,007 | 374,007 | |||
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 26,820 | 25,114 | 85,691 | 68,210 | |
Operating earnings (loss) | 10,814 | 22,004 | 33,904 | 35,464 | |
(Gain) loss on investments | 0 | 181 | (2,076) | (2,827) | |
Interest expense | 8,358 | 7,951 | 27,743 | 18,886 | |
Other income | 1,162 | (1,011) | 868 | (2,130) | |
Equity (income) loss from investments | (4,349) | (4,043) | (14,774) | (11,619) | |
Income (loss) before income taxes | 5,643 | 18,926 | 22,143 | 33,154 | |
Total assets | 2,692,326 | 2,692,326 | |||
Reconciling Amounts | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (104,828) | (77,864) | (315,582) | (287,605) | |
Operating earnings (loss) | 0 | 0 | 0 | 0 | |
(Gain) loss on investments | 0 | 0 | 0 | 0 | |
Interest expense | (586) | (7,927) | (7,701) | (7,927) | |
Other income | 586 | 7,927 | 7,701 | 7,927 | |
Equity (income) loss from investments | 0 | 0 | 0 | 0 | |
Income (loss) before income taxes | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | |||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (97,876) | (76,114) | (297,057) | (250,425) | |
Intersegment Eliminations [Member] | Ag [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (7,545) | (3,016) | (16,068) | (36,032) | |
Intersegment Eliminations [Member] | Nitrogen Production [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Foods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 593 | 1,266 | (2,457) | (1,148) | |
Intersegment Eliminations [Member] | Reconciling Amounts | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 104,828 | $ 77,864 | $ 315,582 | $ 287,605 |
Derivative Financial Instrume48
Derivative Financial Instruments and Hedging Activities Purchase and Sale Contracts (Details) - Not Designated as Hedging Instrument [Member] t in Thousands, rail_car in Thousands, T in Thousands, MMBtu in Thousands, Bushels in Thousands, Barrels in Thousands | May 31, 2017Trail_cartBushelsMMBtuBarrels | Aug. 31, 2016Trail_cartBushelsMMBtuBarrels |
Grain and oilseed - bushels | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 663,358 | 774,279 |
Grain and oilseed - bushels | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 860,178 | 995,396 |
Energy products - barrels | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 13,694 | 14,740 |
Energy products - barrels | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 8,151 | 6,470 |
Processed grain and oilseed - tons | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 327 | 541 |
Processed grain and oilseed - tons | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,188 | 2,060 |
Crop nutrients - tons | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 70 | 108 |
Crop nutrients - tons | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 241 | 135 |
Ocean and barge freight - metric tons | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 4,110 | 4,406 |
Ocean and barge freight - metric tons | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 876 | 877 |
Rail freight - rail cars | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | rail_car | 210 | 205 |
Rail freight - rail cars | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | rail_car | 97 | 79 |
Natural gas - MMBtu | Long [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 3,275 | 3,550 |
Natural gas - MMBtu | Short [Member] | ||
Purchase and Sales Contracts [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 0 | 300 |
Derivative Financial Instrume49
Derivative Financial Instruments and Hedging Activities Derivatives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | May 31, 2017 | May 31, 2016 | Aug. 31, 2016 | Aug. 31, 2015 | |
Purchase and Sales Contracts [Line Items] | ||||||||||
Credit Rating Agencies Threshold, Minimum | 66.67% | |||||||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 377,122,000 | $ 377,122,000 | $ 510,945,000 | |||||||
Derivative Asset, Fair Value, Gross Asset, Current | 388,188,000 | 388,188,000 | ||||||||
Derivative Asset, Not offset, Policy election deduction, Current | 31,606,000 | 31,606,000 | ||||||||
Derivative Asset, Fair Value, Amount not offset against collateral, Current | 356,582,000 | 356,582,000 | ||||||||
Derivative Asset, Fair Value, Gross Asset | 408,728,000 | 408,728,000 | 543,821,000 | |||||||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 31,606,000 | 31,606,000 | 32,876,000 | |||||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 249,470,000 | 249,470,000 | 479,912,000 | |||||||
Derivative Liability, Fair Value, Gross Liability | 284,212,000 | 284,212,000 | 513,599,000 | |||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 3,136,000 | 3,136,000 | 811,000 | |||||||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 31,606,000 | 31,606,000 | 32,876,000 | |||||||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | 0 | |||||||||
CF Nitrogen LLC [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Annual Payment Receivable Contingent On Investment Credit Rating | 5,000,000 | |||||||||
Payments For Credit Rating Decrease In Investment | $ 5,000,000 | |||||||||
Embedded derivative asset | 25,000,000 | $ 24,600,000 | 24,100,000 | 25,000,000 | ||||||
Embedded Derivative, Gain on Embedded Derivative | 500,000 | $ 500,000 | $ 29,100,000 | |||||||
Foreign currency derivatives | Not Designated as Hedging Instrument [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 6,663,000 | 6,663,000 | 12,364,000 | |||||||
Derivative Asset, Fair Value, Gross Asset | 10,558,000 | 10,558,000 | 21,551,000 | |||||||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 3,895,000 | 3,895,000 | 9,187,000 | |||||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 7,794,000 | 7,794,000 | 13,102,000 | |||||||
Derivative Liability, Fair Value, Gross Liability | 11,689,000 | 11,689,000 | 22,289,000 | |||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | 0 | |||||||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 3,895,000 | 3,895,000 | 9,187,000 | |||||||
Derivative Asset, Notional Amount | 789,400,000 | 789,400,000 | 802,200,000 | |||||||
Interest rate swap derivatives | Designated as Hedging Instrument [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 9,496,000 | 9,496,000 | 22,078,000 | |||||||
Derivative Asset, Fair Value, Gross Asset | 9,496,000 | 9,496,000 | 22,078,000 | |||||||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | 0 | 0 | |||||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 1,182,000 | 1,182,000 | ||||||||
Derivative Liability, Fair Value, Gross Liability | 1,182,000 | 1,182,000 | ||||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||||||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | 0 | ||||||||
Interest rate swap derivatives | Not Designated as Hedging Instrument [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 4,000 | 4,000 | 8,000 | |||||||
Derivative Liability, Fair Value, Gross Liability | 4,000 | 4,000 | 8,000 | |||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | 0 | |||||||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | 0 | 0 | |||||||
Commodity and freight derivatives | Not Designated as Hedging Instrument [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 335,916,000 | 335,916,000 | 476,503,000 | |||||||
Derivative Asset, Fair Value, Gross Asset | 363,627,000 | 363,627,000 | 500,192,000 | |||||||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 27,711,000 | 27,711,000 | 23,689,000 | |||||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 240,490,000 | 240,490,000 | 466,802,000 | |||||||
Derivative Liability, Fair Value, Gross Liability | 271,337,000 | 271,337,000 | 491,302,000 | |||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 3,136,000 | 3,136,000 | 811,000 | |||||||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 27,711,000 | 27,711,000 | $ 23,689,000 | |||||||
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 | 13,800,000 | $ 7,600,000 | ||||||||
Fair Value Hedging [Member] | Interest rate swap derivatives | Designated as Hedging Instrument [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Derivative Asset, Notional Amount | 495,000,000 | 495,000,000 | ||||||||
Cash Flow Hedging [Member] | Interest rate swap derivatives | Designated as Hedging Instrument [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Derivative Asset, Notional Amount | $ 300,000,000 | |||||||||
Cash paid to settle derivative | $ 5,100,000 | $ 5,300,000 | $ 6,400,000 | |||||||
Derivatives settled, number | 2 | 2 | 2 | |||||||
Derivatives [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Derivative Asset, Fair Value, Gross Asset, Current | 4,507,000 | 4,507,000 | ||||||||
Derivative Asset, Not offset, Policy election deduction, Current | 0 | 0 | ||||||||
Derivative Asset, Fair Value, Amount not offset against collateral, Current | 4,507,000 | 4,507,000 | ||||||||
Other Assets [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Purchase and Sales Contracts [Line Items] | ||||||||||
Derivative Asset, Fair Value, Gross Asset, Non-current | 20,540,000 | 20,540,000 | ||||||||
Derivative Asset, Not offset, Policy election deduction, Non-current | 0 | 0 | ||||||||
Derivative Asset, Fair Value, Amount not offset against collateral, Non-current | $ 20,540,000 | $ 20,540,000 |
Derivative Financial Instrume50
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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate derivatives | $ 0 | $ 0 | $ 0 | $ (10,070) |
Derivative Financial Instrume51
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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 95,658 | $ (209,215) | $ 202,331 | $ (115,073) |
Commodity and freight derivatives | Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 102,327 | (193,548) | 177,633 | (103,532) |
Foreign currency derivatives | Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (7,168) | 2,249 | (4,573) | (7,550) |
Foreign currency derivatives | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 22 | (12,820) | (784) | 2,308 |
Interest rate derivatives | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | (5,096) | 4 | (6,299) |
Embedded Derivative Financial Instruments [Member] | Other Income [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 477 | $ 0 | $ 30,051 | $ 0 |
Derivative Financial Instrume52
Derivative Financial Instruments and Hedging Activities Pretax Gains losses reclassified from OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Interest Expense | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest rate derivatives | $ (435) | $ (4,166) | $ (1,311) | $ (4,631) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | May 31, 2017 | Aug. 31, 2016 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | $ 51,710 | $ 50,099 |
Embedded derivative asset | 25,047 | |
Other assets | 13,760 | 12,678 |
Total assets | 474,198 | 606,598 |
Foreign currency derivatives | 22,289 | |
Total liabilities | 285,990 | 528,650 |
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] | ||
Deferred compensation assets | 51,710 | 50,099 |
Embedded derivative asset | 0 | |
Other assets | 13,760 | 12,678 |
Total assets | 90,963 | 125,315 |
Foreign currency derivatives | 0 | |
Total liabilities | 31,941 | 22,331 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Embedded derivative asset | 25,047 | |
Other assets | 0 | 0 |
Total assets | 383,235 | 481,283 |
Foreign currency derivatives | 22,289 | |
Total liabilities | 252,271 | 491,268 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Embedded derivative asset | 0 | |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Foreign currency derivatives | 0 | |
Total liabilities | 1,778 | 15,051 |
Commodity and freight derivatives | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 363,627 | 500,192 |
Derivative Liability | 271,337 | 491,302 |
Commodity and freight derivatives | 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] | ||
Derivative Asset | 25,493 | 62,538 |
Derivative Liability | 31,941 | 22,331 |
Commodity and freight derivatives | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 338,134 | 437,654 |
Derivative Liability | 239,396 | 468,971 |
Commodity and freight derivatives | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Foreign currency derivatives | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives | 10,558 | 21,551 |
Foreign currency derivatives | 11,689 | |
Foreign currency derivatives | 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] | ||
Foreign currency derivatives | 0 | 0 |
Foreign currency derivatives | 0 | |
Foreign currency derivatives | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives | 10,558 | 21,551 |
Foreign currency derivatives | 11,689 | |
Foreign currency derivatives | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives | 0 | 0 |
Foreign currency derivatives | 0 | |
Interest rate swap derivatives | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9,496 | 22,078 |
Derivative Liability | 1,186 | 8 |
Interest rate swap derivatives | 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] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Interest rate swap derivatives | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9,496 | 22,078 |
Derivative Liability | 1,186 | 8 |
Interest rate swap derivatives | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [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, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Crack spread contingent consideration liability | 1,778 | |
NCRA [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Crack spread contingent consideration liability | 15,051 | |
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] | ||
Crack spread contingent consideration liability | 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] | ||
Crack spread contingent consideration liability | 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] | ||
Crack spread contingent consideration liability | $ 1,778 | $ 15,051 |
Fair Value Measurements - Quan
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) - NCRA [Member] - USD ($) | 9 Months Ended | |||||
May 31, 2017 | Feb. 28, 2017 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Aug. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Crack spread contingent consideration liability | $ 1,778,000 | |||||
Crack Spread Contingent Payment [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 1,778,000 | $ 2,172,000 | $ 15,051,000 | $ 24,661,000 | $ 24,155,000 | $ 75,982,000 |
Crack Spread Contingent Payment [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Forward crack spread margin | $ 14.56 | |||||
Contractual target crack spread margin (in dollars per share) | $ 17.50 | |||||
Expected volatility | 78.71% | |||||
Own credit risk | 0.94% | |||||
Expected life (years) | 3 months |
Fair Value Measurements - Fa55
Fair Value Measurements - Fair Value Reconciliation Liabilities Using Significant Unobservable Inputs (Level 3) (Details) - NCRA [Member] - Crack Spread Contingent Payment [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 2,172 | $ 24,155 | $ 15,051 | $ 75,982 |
Ending Balance | 1,778 | 24,661 | 1,778 | 24,661 |
Cost of Goods, Total | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total (gains) losses included in cost of goods sold | $ (394) | $ 506 | $ (13,273) | $ (51,321) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 |
CF Nitrogen LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Embedded derivative asset | $ 25 | $ 24.6 | $ 24.1 |
Commitments and Contingencies G
Commitments and Contingencies Guarantees (Details) $ in Millions | May 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure, undiscounted | $ 101.5 |
Maximum guarantees allowed by bank covenants | $ 1,000 |