Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Feb. 28, 2018 | Apr. 04, 2018 | |
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 | Feb. 28, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Feb. 28, 2018 | Aug. 31, 2017 |
Current assets [Abstract] | ||
Cash and cash equivalents | $ 190,426 | $ 181,379 |
Receivables | 1,765,640 | 1,869,632 |
Inventories | 3,650,158 | 2,576,585 |
Derivative assets | 429,625 | 232,017 |
Margin deposits | 188,167 | 206,062 |
Supplier advance payments | 658,815 | 249,234 |
Other current assets | 310,674 | 299,618 |
Total current assets | 7,193,505 | 5,614,527 |
Investments | 3,752,876 | 3,750,993 |
Property, plant and equipment | 5,179,868 | 5,356,434 |
Other assets | 958,613 | 1,251,802 |
Total assets | 17,084,862 | 15,973,756 |
Current liabilities [Abstract] | ||
Notes payable | 2,993,456 | 1,988,215 |
Current portion of long-term debt | 46,290 | 156,345 |
Customer margin deposits and credit balances | 106,323 | 157,914 |
Customer advance payments | 727,535 | 413,163 |
Accounts payable | 1,835,289 | 1,951,292 |
Derivative liabilities | 372,406 | 316,018 |
Accrued expenses | 459,867 | 437,527 |
Dividends and equities payable | 128,700 | 12,121 |
Total current liabilities | 6,669,866 | 5,432,595 |
Long-term debt | 1,915,843 | 2,023,448 |
Long-term deferred tax liabilities | 171,844 | 333,221 |
Other liabilities | 265,349 | 278,667 |
Commitments and contingencies (Note 13) | ||
Equities: | ||
Preferred stock | 2,264,038 | 2,264,038 |
Equity certificates | 4,307,292 | 4,341,649 |
Accumulated other comprehensive loss | (168,225) | (183,670) |
Capital reserves | 1,646,837 | 1,471,217 |
Total CHS Inc. equities | 8,049,942 | 7,893,234 |
Noncontrolling interests | 12,018 | 12,591 |
Total equities | 8,061,960 | 7,905,825 |
Total liabilities and equities | $ 17,084,862 | $ 15,973,756 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 6,851,093 | $ 7,320,406 | $ 14,899,982 | $ 15,368,656 |
Cost of goods sold | 6,708,610 | 7,079,664 | 14,444,237 | 14,775,217 |
Gross profit | 142,483 | 240,742 | 455,745 | 593,439 |
Marketing, general and administrative | 186,716 | 157,862 | 326,881 | 305,711 |
Reserve and impairment charges (recoveries), net | (11,349) | 72,373 | (15,133) | 90,730 |
Operating earnings (loss) | (32,884) | 10,507 | 143,997 | 196,998 |
(Gain) loss on investments | (4,100) | (2,782) | (6,919) | 4,619 |
Interest Expense | 40,176 | 39,945 | 80,878 | 78,210 |
Other (income) loss | (14,969) | (14,453) | (37,164) | (58,854) |
Equity (income) loss from investments | (39,441) | (35,800) | (77,803) | (76,128) |
Income (loss) before income taxes | (14,550) | 23,597 | 185,005 | 249,151 |
Income tax expense (benefit) | (181,176) | 8,624 | (161,240) | 25,236 |
Net income (loss) | 166,626 | 14,973 | 346,245 | 223,915 |
Net income (loss) attributable to noncontrolling interests | (48) | 406 | (512) | 198 |
Net income (loss) attributable to CHS Inc. | $ 166,674 | $ 14,567 | $ 346,757 | $ 223,717 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Net income (loss) | $ 166,626 | $ 14,973 | $ 346,245 | $ 223,915 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Postretirement benefit plan activity, net of tax expense (benefit) | 3,141 | 3,724 | 7,338 | 6,963 |
Unrealized net gain (loss) on available for sale investments, net of tax expense (benefit) | 3,554 | 968 | 7,194 | 1,744 |
Cash flow hedges, net of tax expense (benefit) | 1,063 | 963 | 1,059 | 1,618 |
Foreign currency translation adjustment, net of tax expense (benefit) | 2,461 | 9,123 | (146) | (10,041) |
Other comprehensive income (loss), net of tax | 10,219 | 14,778 | 15,445 | 284 |
Comprehensive income (loss) | 176,845 | 29,751 | 361,690 | 224,199 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (48) | 406 | (512) | 198 |
Comprehensive Income (Loss) Attributable to CHS | $ 176,893 | $ 29,345 | $ 362,202 | $ 224,001 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Unaudited) Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Postretirement benefit plan activity, tax expense (benefit) | $ 1,309 | $ 2,312 | $ 3,929 | $ 4,323 |
Unrealized net gain (loss) on available for sale investments, tax expense (benefit) | 1,481 | 600 | 1,885 | 1,083 |
Cash flow hedges, tax expense (benefit) | 443 | 598 | 441 | 1,005 |
Foreign currency translation adjustment, tax expense (benefit) | $ 422 | $ (204) | $ (21) | $ 5 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 346,245 | $ 223,915 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 240,349 | 241,730 |
Amortization of deferred major repair costs | 32,839 | 36,431 |
Equity (income) loss from investments | (77,803) | (76,128) |
Distributions from equity investments | 78,461 | 86,096 |
Provision for doubtful accounts | (3,625) | 97,113 |
Gain on disposal of business | (24,236) | 0 |
Unrealized (gain) loss on crack spread contingent liability | 0 | (12,879) |
Deferred taxes | (166,511) | 22,366 |
Other, net | 18,840 | 24,923 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | 169,359 | 152,926 |
Inventories | (1,076,037) | (1,389,281) |
Derivative assets | (33,757) | 120,346 |
Margin deposits | 17,895 | 19,985 |
Supplier advance payments | (409,581) | (354,105) |
Other current assets and other assets | 21,344 | (3,401) |
Customer margin deposits and credit balances | (51,591) | (59,284) |
Customer advance payments | 314,372 | 457,095 |
Accounts payable and accrued expenses | (44,413) | 58,427 |
Derivative liabilities | 50,922 | (239,894) |
Other liabilities | (58,252) | (49,555) |
Net cash provided by (used in) operating activities | (655,180) | (643,174) |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (142,886) | (207,877) |
Proceeds from disposition of property, plant and equipment | 59,680 | 6,794 |
Proceeds from sale of business | 53,552 | 0 |
Expenditures for major repairs | (2,832) | (687) |
Short-term investments, net | (19,922) | (2,742) |
Investments in joint ventures and other | (664) | (5,628) |
Investments redeemed | 6,496 | 2,660 |
Proceeds from sale of investments | 4,177 | 6,041 |
Changes in CHS Capital notes receivable, net | (25,846) | (108,060) |
Financing extended to customers | (66,014) | (41,358) |
Payments from customer financing | 30,893 | 60,789 |
Other investing activities, net | 6,206 | 4,924 |
Net cash provided by (used in) investing activities | (97,160) | (285,144) |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 18,414,973 | 21,159,218 |
Payments on lines of credit, long term-debt and capital lease obligations | (17,512,264) | (20,062,366) |
Changes in checks and drafts outstanding | (45,925) | 1,388 |
Preferred stock dividends paid | (84,334) | (83,650) |
Retirements of equities | (4,742) | (13,670) |
Cash patronage dividends paid | 0 | (103,879) |
Other financing activities, net | (3,949) | 2,551 |
Net cash provided by (used in) financing activities | 763,759 | 899,592 |
Effect of exchange rate changes on cash and cash equivalents | (2,372) | (786) |
Net increase (decrease) in cash and cash equivalents | 9,047 | (29,512) |
Cash and cash equivalents at beginning of period | 181,379 | 279,313 |
Cash and cash equivalents at end of period | $ 190,426 | $ 249,801 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Feb. 28, 2018 | |
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 February 28, 2018 , the Consolidated Statements of Operations for the three and six months ended February 28, 2018 , and 2017 , the Consolidated Statements of Comprehensive Income for the three and six months ended February 28, 2018 , and 2017 , and the Consolidated Statements of Cash Flows for the six months ended February 28, 2018 , and 2017 , 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, 2017 , 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 ("U.S. GAAP"). Over the course of fiscal 2017, we incurred charges relating to a trading partner of ours in Brazil, which entered into bankruptcy-like proceedings under Brazilian law, intangible and fixed asset impairment charges associated with certain assets meeting the criteria to be classified as held for sale, fixed asset impairment charges due to the cancellation of a capital project at one of our refineries and bad debt and loan loss reserve charges relating to a single large producer borrower. Charges and impairments of this nature, as well as any recoveries related to amounts previously reserved, are included in the Consolidated Statements of Operations in the line item, "Reserve and impairment charges (recoveries), net" for the three and six months ended February 28, 2018 , and 2017 . The timing and amounts of these charges and impairments, and any recoveries were determined utilizing facts and circumstances that were present in the respective quarters in which the charges, impairments or recoveries were recorded. Prior year information has been revised to conform to the current year presentation. The notes to our consolidated financial statements reference our Energy, Ag and Nitrogen Production reportable segments, as well as our Corporate and Other category, which represents an aggregation of individually immaterial operating segments. Our equity method investment in Ventura Foods, LLC ("Ventura Foods"), which previously represented our Foods reportable segment, was determined to represent an individually immaterial operating segment during the second quarter of fiscal 2018 and has been aggregated within the Corporate and Other category. See Note 10, Segment Reporting , for more information related to our reportable segments. 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, 2017 , included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC"). Recent Accounting Pronouncements Adopted In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. This ASU is effective for periods beginning after December 15, 2017; however, early adoption of this ASU is permitted during the first interim period if an entity issues interim financial statements and 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. We elected to early adopt ASU No. 2016-16 during the first quarter of fiscal 2018. The adoption did not have a material impact on our consolidated financial statements. Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). Under existing U.S. GAAP the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). The amendments in this ASU also require certain disclosures about stranded tax effects. This ASU is effective for us beginning September 1, 2019, for our fiscal year 2020 and for interim periods within that fiscal year. Early adoption in any period is permitted. The Company’s provisional adjustments recorded to account for the impact of the Tax Cuts and Jobs Act resulted in stranded tax effects. The Company is currently evaluating the timing and impact of adopting ASU 2018-02. In August 2017, the FASB issued ASU No. 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU is intended to improve the financial reporting of hedging relationships to better represent the economic results of an entity’s risk management activities in its financial statements and make certain improvements to simplify the application of the hedge accounting guidance. The amendments in this ASU will make more financial and nonfinancial hedging strategies eligible for hedge accounting, amend the presentation and disclosure requirements and change how entities assess effectiveness. Entities are required to apply this ASU'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, 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 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 changes the presentation of net periodic pension cost and net periodic postretirement benefit cost in the income statement. This ASU requires that the service cost component be included in the same income statement line item as other compensation costs arising from services rendered by the employees during the period. The other components of net periodic benefit cost should be presented in the income statement separately outside of operating income if that subtotal is presented. Additionally, only service cost may be capitalized in assets. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. The guidance on the presentation of the components of net periodic benefit cost in the income statement should be applied retrospectively and the guidance regarding the capitalization of the service cost component in assets should be applied prospectively. The adoption of this amended guidance is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) : 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. The adoption of this amended guidance is not expected to have a material impact 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. The adoption of this amended guidance is not expected to have a material impact on our consolidated statement of cash flows. 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. The adoption of this amended guidance is not expected to have a material impact on our consolidated statement of cash flows. 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 this ASU’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. This ASU is effective for us beginning September 1, 2019, for our fiscal year 2020 and for interim periods within that fiscal year, and the ASU’s provisions are required to be applied using a modified retrospective approach. We have initiated a preliminary assessment of the new lease standard, including the implementation of a new lease software that will improve the collection, maintenance, and aggregation of lease data necessary for the reporting and disclosure requirements under the new lease standard. One of the more significant changes arising from the new lease standard relates to a number of operating lease agreements not currently recognized on our Consolidated Balance Sheets. The new lease guidance will require these lease agreements to be recognized on the Consolidated Balance Sheets as a right-of-use asset along with a corresponding lease liability. As a result, our preliminary assessment indicates the provisions of ASU No. 2016-02 are expected to have a material impact on our Consolidated Balance Sheets. Although we expect the new lease guidance to have a material impact on our Consolidated Balance Sheets, we are continuing to evaluate the extent of potential impact the new lease guidance 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, as well as within additional clarifying ASUs issued by the FASB, 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. The new revenue recognition guidance 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. The new revenue recognition guidance 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. We have completed an initial assessment of our revenue streams and do not believe that the new revenue recognition guidance will have a material impact on our consolidated financial statements. Certain revenue streams are expected to fall within the scope of the new revenue recognition guidance; however, a substantial portion of our revenue falls outside the scope of the new revenue recognition guidance and will continue to follow existing guidance, primarily ASC 815, Derivatives and Hedging . We are continuing to evaluate the impact of the new revenue recognition guidance, including potential changes to business practices and/or contractual terms for in scope revenue streams, as well as the scope of expanded disclosures related to revenue. We expect to complete our final evaluation and implementation of the new revenue recognition guidance throughout fiscal 2018, which will allow us to adopt ASU No. 2014-09 and the related ASUs on September 1, 2018, in the first quarter of fiscal 2019, using the modified retrospective method. |
Receivables
Receivables | 6 Months Ended |
Feb. 28, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables February 28, 2018 August 31, 2017 (Dollars in thousands) Trade accounts receivable $ 1,105,996 $ 1,234,500 CHS Capital notes receivable 96,351 164,807 Deferred purchase price receivable 227,602 202,947 Other 553,862 493,104 1,983,811 2,095,358 Less allowances and reserves 218,171 225,726 Total receivables $ 1,765,640 $ 1,869,632 Trade Accounts 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. CHS Capital Notes Receivable CHS Capital, LLC ("CHS Capital"), our wholly-owned subsidiary, has short-term notes receivable from commercial and producer borrowers. The short-term notes receivable have maturity terms of 12 months or less and are reported at their outstanding unpaid principal balances, adjusted for the allowance of loan losses, as CHS Capital has the intent and ability to hold the applicable loans for the foreseeable future or until maturity or pay-off. The carrying value of CHS Capital short-term notes receivable approximates fair value, given the notes' short duration and the use of market pricing adjusted for risk. The notes receivable from commercial borrowers are collateralized by various combinations of mortgages, personal property, accounts and notes receivable, inventories and assignments of certain regional cooperative’s 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 , totaling $0.6 million and $17.0 million at February 28, 2018 , and August 31, 2017 , respectively. The long-term notes receivable are included in Other assets on our Consolidated Balance Sheets. As of February 28, 2018 , and August 31, 2017 , the commercial notes represented 3% and 17% , respectively, and the producer notes represented 97% and 83% , respectively, of the total CHS Capital notes receivable. CHS Capital has commitments to extend credit to customers if there are no violations of any contractually established conditions. As of February 28, 2018 , CHS Capital's customers have additional available credit of $348.6 million . Allowance for Loan Losses and Impairments CHS Capital maintains an allowance for loan losses which is the estimate of potential incurred losses inherent in the loans receivable portfolio. In accordance with FASB ASC 450-20, Accounting for Loss Contingencies, and ASC 310-10, Accounting by Creditors for Impairment of a Loan , the allowance for loan losses consists of general and specific components. The general component is based on historical loss experience and qualitative factors addressing operational risks and industry trends. The specific component relates to loans receivable that are classified as impaired. Additions to the allowance for loan losses are reflected within reserve and impairment charges (recoveries), net in the Consolidated Statements of Operations. The portion of loans receivable deemed uncollectible is charged off against the allowance. Recoveries of previously charged off amounts increase the allowance for loan losses. The amount of CHS Capital notes that were past due was not significant at any reporting date presented. Interest Income Interest income is recognized on the accrual basis using a method that computes simple interest daily. The accrual of interest on commercial loans receivable is discontinued at the time the commercial loan receivable is 90 days past due unless the credit is well-collateralized and in process of collection. Past due status is based on contractual terms of the loan. Producer loans receivable are placed in non-accrual status based on estimates and analysis due to the annual debt service terms inherent to CHS Capital’s producer loans. In all cases, loans are placed in nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. Sale of Receivables Receivables Securitization Facility On July 18, 2017, we amended an existing receivables and loans securitization facility (“Securitization Facility”) with certain unaffiliated financial institutions (the "Purchasers"). Under the Securitization Facility, we and certain of our subsidiaries sell trade accounts and notes receivable (the “Receivables”) to Cofina Funding, LLC (“Cofina”), a wholly-owned bankruptcy-remote indirect subsidiary of CHS. Cofina in turn sells the purchased Receivables in their entirety to the Purchasers. Prior to amending the Securitization Facility in July 2017, the transfer of Receivables was accounted for as a secured borrowing. Under the terms of the amended Securitization Facility CHS accounts for Receivables sold under the Securitization Facility as a sale of financial assets pursuant to ASC 860, Transfers and Servicing and derecognizes the sold Receivables from its Consolidated Balance Sheets. Sales of Receivables by Cofina occur continuously and are settled with the Purchasers on a monthly basis. The proceeds from the sale of these Receivables comprise a combination of cash and a deferred purchase price (“DPP”) receivable. The DPP receivable is ultimately realized by CHS following the collection of the underlying Receivables sold to the Purchasers. The amount available under the Securitization Facility fluctuates over time based on the total amount of eligible Receivables generated during the normal course of business, with maximum availability of $700.0 million . As of February 28, 2018 , the total availability under the Securitization Facility was $618.0 million , of which all has been utilized. The Securitization Facility terminates on July 17, 2018, but may be extended. We use the proceeds from the sale of Receivables under the Securitization Facility for general corporate purposes. We have no retained interests in the transferred Receivables, other than our right to the DPP receivable and collection and administrative services. The DPP receivable is recorded at fair value within the Consolidated Balance Sheets, including a current portion within receivables and a long-term portion within other assets. Subsequent cash receipts related to the DPP receivable have been reflected as investing activities and additional sales of Receivables under the Securitization Facility are reflected in operating or investing activities, based on the underlying Receivable, in our Consolidated Statements of Cash Flows. Losses incurred on the sale of Receivables are recorded in interest expense and fees received related to the servicing of the Receivables are recorded in other income (loss) in the Consolidated Statements of Operations. We consider the fees received adequate compensation for services rendered, and accordingly have recorded no servicing asset or liability. The fair value of the DPP receivable is determined by discounting the expected cash flows to be received based on unobservable inputs consisting of the face amount of the Receivables adjusted for anticipated credit losses. The DPP receivable is being measured like an investment in debt securities classified as available for sale, with changes to the fair value being recorded in other comprehensive income in accordance with ASC 320 , Investments - Debt and Equity Securities . Our risk of loss following the transfer of Receivables under the Securitization Facility is limited to the DPP receivable outstanding and any short-falls in collections for specified non-credit related reasons after sale. Payment of the DPP receivable is not subject to significant risks other than delinquencies and credit losses on accounts receivable sold under the Securitization Facility. The following table is a reconciliation of the beginning and ending balances of the DPP receivable for the six months ended February 28, 2018 : (Dollars in thousands) Balance - as of August 31, 2017 $ 548,602 Monthly settlements, net (33,292 ) Cash collections on DPP (4,355 ) Fair value adjustment 6,804 Balance - as of February 28, 2018 $ 517,759 There was no DPP receivable as of February 28, 2017, and therefore, no comparative period is included in the table above. Other Receivables Other receivables are comprised of certain other amounts recorded in the normal course of business, including receivables related to valued added taxes and pre-crop financing, primarily to Brazilian farmers, to finance a portion of supplier production costs. We do not bear any of the costs or operational risks associated with the related growing crops. The financing is fully collateralized by future crops, land and physical assets of the suppliers, carries a local market interest rate and settles when the farmer’s crop is harvested and sold. |
Inventories
Inventories | 6 Months Ended |
Feb. 28, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories February 28, 2018 August 31, 2017 (Dollars in thousands) Grain and oilseed $ 1,515,669 $ 1,145,285 Energy 779,629 755,886 Crop nutrients 413,719 248,699 Feed and farm supplies 762,513 353,130 Processed grain and oilseed 168,354 49,723 Other 10,274 23,862 Total inventories $ 3,650,158 $ 2,576,585 As of February 28, 2018 , we valued approximately 16% of inventories, primarily related to our Energy segment, using the lower of cost, determined on the LIFO method, or net realizable value ( 19% as of August 31, 2017 ). If the FIFO method of accounting had been used, inventories would have been higher than the reported amount by $243.5 million and $ 186.2 million as of February 28, 2018 , and August 31, 2017 , 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 | 6 Months Ended |
Feb. 28, 2018 | |
Investments [Abstract] | |
Investments | Investments February 28, 2018 August 31, 2017 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,751,166 $ 2,756,076 Ventura Foods, LLC 353,079 347,016 Ardent Mills, LLC 211,017 206,529 TEMCO, LLC 37,583 41,323 Other equity method investments 265,288 268,444 Cost method investments 134,743 131,605 Total investments $ 3,752,876 $ 3,750,993 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 Industries Nitrogen, LLC ("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 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 we receive as a result of our membership interest in CF Nitrogen. For the three months ended February 28, 2018 , and 2017 , this amount was $24.0 million and $21.6 million , respectively. For the six months ended February 28, 2018, and 2017, this amount was $44.3 million and $36.3 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. We account for Ventura Foods as an equity method investment, and as of February 28, 2018 , 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 Corporate and Other. 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 investment in CF Nitrogen for the six months ended February 28, 2018, and 2017: For the Six Months Ended February 28, 2018 2017 (Dollars in thousands) Net sales $ 1,084,270 $ 1,024,409 Gross profit 135,649 125,966 Net earnings 128,803 87,798 Earnings attributable to CHS Inc. 44,347 36,253 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 6 Months Ended |
Feb. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Goodwill of $153.8 million and $154.1 million as of February 28, 2018 , and August 31, 2017 , respectively, is included in other assets on our Consolidated Balance Sheets. Changes in the net carrying amount of goodwill for the six months ended February 28, 2018 , by segment, are as follows: Energy Ag Corporate Total (Dollars in thousands) Balances, August 31, 2017 $ 552 $ 142,929 $ 10,574 $ 154,055 Effect of foreign currency translation adjustments — (277 ) — (277 ) Balances, February 28, 2018 $ 552 $ 142,652 $ 10,574 $ 153,778 No goodwill has been allocated to our Nitrogen Production segment, which consists of an investment accounted for under the equity method. 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: February 28, August 31, Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 41,077 $ (11,565 ) $ 29,512 $ 46,180 $ (14,695 ) $ 31,485 Trademarks and other intangible assets 6,536 (4,811 ) 1,725 23,623 (21,778 ) 1,845 Total intangible assets $ 47,613 $ (16,376 ) $ 31,237 $ 69,803 $ (36,473 ) $ 33,330 Total amortization expense for intangible assets during the three and six months ended February 28, 2018 , was $0.8 million and $1.7 million , respectively. Total amortization expense for intangible assets during the three and six months ended February 28, 2017, was $1.0 million and $2.3 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 $ 3,291 Year 2 3,202 Year 3 2,981 Year 4 2,900 Year 5 2,705 |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 6 Months Ended |
Feb. 28, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with our debt covenants as of February 28, 2018 . February 28, 2018 August 31, 2017 (Dollars in thousands) Notes payable $ 2,844,803 $ 1,695,423 CHS Capital notes payable 148,653 292,792 Total notes payable $ 2,993,456 $ 1,988,215 On February 28, 2018 , 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 increased to $1.7 billion at February 28, 2018 , from $480.0 million at August 31, 2017 , due to the seasonal nature of our business operations. Interest expense for the three months ended February 28, 2018 , and 2017, was $40.2 million and $39.9 million , respectively, net of capitalized interest of $1.3 million and $1.5 million , respectively. Interest expense for the six months ended February 28, 2018 , and 2017, was $80.9 million and $78.2 million respectively, net of capitalized interest of $3.1 million and $3.1 million , respectively. |
Equities
Equities | 6 Months Ended |
Feb. 28, 2018 | |
Equity [Abstract] | |
Equities | Equities Changes in Equities Changes in equities for the six months ended February 28, 2018 , are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance, August 31, 2017 $ 3,906,426 $ 29,836 $ 405,387 $ 2,264,038 $ (183,670 ) $ 1,471,217 $ 12,591 $ 7,905,825 Reversal of prior year redemption estimates 2,621 — (126,333 ) — — 126,333 — 2,621 Distribution of 2017 patronage refunds — — 128,858 — — (128,858 ) — — Redemptions of equities (2,402 ) (69 ) (150 ) — — — — (2,621 ) Preferred stock dividends — — — — — (126,501 ) — (126,501 ) Other, net (4,150 ) (111 ) (345 ) — — 4,768 (61 ) 101 Net income (loss) — — — — — 346,757 (512 ) 346,245 Other comprehensive income (loss), net of tax — — — — 15,445 — — 15,445 Estimated 2018 cash patronage refunds — — — — — (46,879 ) — (46,879 ) Estimated 2018 equity redemptions (32,276 ) — — — — — — (32,276 ) Balance, February 28, 2018 $ 3,870,219 $ 29,656 $ 407,417 $ 2,264,038 $ (168,225 ) $ 1,646,837 $ 12,018 $ 8,061,960 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the six months ended February 28, 2018 , and 2017 : 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, 2017, net of tax $ (135,046 ) $ 10,041 $ (6,954 ) $ (51,711 ) $ (183,670 ) Other comprehensive income (loss), before tax: Amounts before reclassifications — 10,606 646 1,875 13,127 Amounts reclassified out 11,267 (1,527 ) 854 (2,042 ) 8,552 Total other comprehensive income (loss), before tax 11,267 9,079 1,500 (167 ) 21,679 Tax effect (3,929 ) (1,885 ) (441 ) 21 (6,234 ) Other comprehensive income (loss), net of tax 7,338 7,194 1,059 (146 ) 15,445 Balance as of February 28, 2018, net of tax $ (127,708 ) $ 17,235 $ (5,895 ) $ (51,857 ) $ (168,225 ) 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, net of tax $ (165,146 ) $ 5,656 $ (9,196 ) $ (43,040 ) $ (211,726 ) Other comprehensive income (loss), before tax: Amounts before reclassifications (500 ) 2,827 1,747 (10,051 ) (5,977 ) Amounts reclassified out 11,786 — 876 15 12,677 Total other comprehensive income (loss), before tax 11,286 2,827 2,623 (10,036 ) 6,700 Tax effect (4,323 ) (1,083 ) (1,005 ) (5 ) (6,416 ) Other comprehensive income (loss), net of tax 6,963 1,744 1,618 (10,041 ) 284 Balance as of February 28, 2017, net of tax $ (158,183 ) $ 7,400 $ (7,578 ) $ (53,081 ) $ (211,442 ) 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). |
Income Taxes
Income Taxes | 6 Months Ended |
Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Act was enacted into law. The Tax Act provides for significant U.S. tax law changes and modifications including the reduction of the federal corporate statutory tax rate from 35% to 21% as of January 1, 2018, repeal of the Domestic Production Activities Deduction ("DPAD"), and enactment of the Deduction for Qualified Business Income of Pass-Thru Entities ("QBI deduction"). As a fiscal year-end taxpayer, our annual statutory federal corporate tax rate applicable to fiscal 2018 is a blended rate of 25.7% . Beginning in fiscal 2019, the annual statutory federal corporate tax rate will be 21% . The Tax Act also requires companies to pay a one-time repatriation tax on certain unrepatriated earnings of foreign subsidiaries that were previously tax deferred (“transition tax”), and creates new taxes on certain foreign sourced earnings. Foreign taxes historically have not had a material impact to our financial statements, and the foreign impacts of the Tax Act are discussed below. Subsequent to the three-month period ended February 28, 2018, the Consolidated Appropriations Act, 2018 (the "Appropriations Act") was enacted into law on March 23, 2018. The Appropriations Act modifies the QBI deduction under Sec. 199A of the Tax Act to reenact DPAD for agricultural and horticultural cooperatives as it existed prior to tax reform, and it also modifies the QBI deduction available to cooperative patrons as enacted by the Tax Act. All references to the Tax Act below include the modifications introduced by the Appropriations Act. On December 22, 2017, the SEC issued Staff Accounting Bulletin 118 ("SAB 118") which provides guidance on accounting for effects of the Tax Act. SAB 118 provides a measurement period of up to one year from the Tax Act’s enactment date for companies to complete their accounting under ASC 740. In accordance with SAB 118, to the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. As of February 28, 2018, we have not finalized our work associated with the income tax effects of the enactment of the Tax Act; however, we have made a reasonable estimate of the effects on our existing deferred tax balances, and believe there will be no additional tax expense as a result of the one-time transition tax. Our income tax provision as of February 28, 2018, reflects the current year impacts of the Tax Act on the estimated annual effective tax rate, and a discrete provisional net benefit of $136.8 million from the revaluation of our U.S. net deferred tax liability resulting directly from the enactment of the Tax Act based on information available, prepared, or analyzed as of the date of this report. Deferred Tax Assets and Liabilities We remeasured our existing U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, of which the federal component is approximately 25.7% for reversals expected in fiscal 2018 and 21.0% thereafter. The calculation cannot be completed until all of the underlying timing differences as of August 31, 2018, are known and we are still analyzing certain aspects of the Tax Act and refining our calculations. As we complete our work and refine our calculations, any changes may give rise to new or additional deferred tax amounts. Specifically, we are now subject to the employee compensation deduction limitations under Internal Revenue Code Section 162(m), and we are evaluating whether our written binding employment contacts are exempted under the Tax Act’s Section 162(m) transition rule. Additional guidance from the IRS is necessary to ascertain the scope of the transition rule. Foreign Tax Effects To determine the amount of the transition tax, we must determine, in addition to other factors, the amount of post-1986 accumulated and current earnings and profits of our relevant subsidiaries as well as the amount of non-U.S. income taxes paid on such earnings. We are able to make a reasonable estimate of the transition tax and recorded no provisional tax liability. However, we continue to gather additional information and will refine the amount if necessary. We continue to review the anticipated impacts of global intangible low-taxed income ("GILTI"), including whether we should account for its tax effects as an in-period or deferred tax expense. Due to the complexity of the GILTI tax rules and the dependency upon future results of our global operations and our global structure, we are unable to make a reasonable estimate of this provision and consequently we haven't decided how to treat the deferred taxes associated with GILTI. Accordingly, we have not recorded any impact associated with GILTI in the tax rate during the three months ended February 28, 2018. In addition to the revaluation of our U.S. net deferred tax liability as a result of the Tax Act, we also recorded a $41.3 million deferred tax benefit during the second quarter of fiscal 2018, resulting from the intercompany transfer of business assets. On December 1, 2017, as part of the consolidation of certain operations and the alignment of global supply chain functions into a single platform, certain inter-regional grain trading operations were transferred to the U.S. taxing jurisdiction. ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory , requires companies to account for the income tax impacts of intercompany transfers of assets at the time of the transaction. We adopted ASU 2016-16 in the first quarter of fiscal 2018. The two tax benefits described above are the primary contributors to our tax benefit position for the three and six- month periods ended February 28, 2018, within the Consolidated Statements of Operations. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Feb. 28, 2018 | |
Retirement Benefits [Abstract] | |
Benefit plans | Benefit Plans We have various pension and other defined benefit and defined contribution plans, in which substantially all employees may participate. We also have non-qualified supplemental executive and Board retirement plans. Components of net periodic benefit costs for the three and six months ended February 28, 2018 , and 2017 , are as follows: Qualified Pension Benefits Non-Qualified Pension Benefits Other Benefits 2018 2017 2018 2017 2018 2017 Components of net periodic benefit costs for the three months ended February 28 are as follows: (Dollars in thousands) Service cost $ 9,920 $ 11,692 $ 137 $ 344 $ 236 $ 227 Interest cost 5,991 3,812 178 70 227 39 Expected return on assets (12,049 ) (12,101 ) — — — — Prior service cost (credit) amortization 360 368 7 (47 ) (142 ) (253 ) Actuarial (gain) loss amortization 4,511 6,650 16 100 (306 ) (283 ) Net periodic benefit cost $ 8,733 $ 10,421 $ 338 $ 467 $ 15 $ (270 ) Components of net periodic benefit costs for the six months ended February 28 are as follows: Service cost $ 19,839 $ 21,075 $ 274 $ 603 $ 472 $ 580 Interest cost 11,992 11,504 356 422 454 466 Expected return on assets (24,089 ) (24,115 ) — — — — Prior service cost (credit) amortization 719 770 15 10 (283 ) (283 ) Actuarial (gain) loss amortization 11,399 11,415 30 273 (612 ) (399 ) Net periodic benefit cost $ 19,860 $ 20,649 $ 675 $ 1,308 $ 31 $ 364 Employer Contributions Total contributions to be made during fiscal 2018 will depend primarily on market returns on the pension plan assets and minimum funding level requirements. During the six months ended February 28, 2018 , 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 2018. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Feb. 28, 2018 | |
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 three reportable segments: Energy, Ag and Nitrogen Production. 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 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 urea ammonium nitrate annually from CF Nitrogen. Insignificant operating segments, including our equity method investment in Ventura Foods have been aggregated within Corporate and Other. Prior to becoming an insignificant operating segment, our investment in Ventura Foods previously constituted our Foods segment. Reported segment results and balances for prior periods have been revised to reflect the aggregation of our equity method investment in Ventura Foods within Corporate and Other. No changes were made to the Ag, Energy, or Nitrogen Production segments as a result of the aggregation of our Foods segment. Corporate administrative expenses and interest are allocated to each business segment, and Corporate and Other, based on direct usage for services, 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 six months ended February 28, 2018 , and 2017 , is presented in the tables below. Energy Ag Nitrogen Production Corporate Reconciling Total For the Three Months Ended February 28, 2018: (Dollars in thousands) Revenues $ 1,781,047 $ 5,163,803 $ — $ 13,168 $ (106,925 ) $ 6,851,093 Operating earnings (loss) 10,372 (29,967 ) (7,239 ) (6,050 ) — (32,884 ) (Gain) loss on investments — (1,992 ) — (2,108 ) — (4,100 ) Interest expense 2,629 22,784 12,676 2,665 (578 ) 40,176 Other (income) loss (627 ) (14,286 ) (433 ) (201 ) 578 (14,969 ) Equity (income) loss from investments (660 ) (5,567 ) (24,012 ) (9,202 ) — (39,441 ) Income (loss) before income taxes $ 9,030 $ (30,906 ) $ 4,530 $ 2,796 $ — $ (14,550 ) Intersegment revenues $ (101,609 ) $ (3,574 ) $ — $ (1,742 ) $ 106,925 $ — Energy Ag Nitrogen Production Corporate Reconciling Total For the Three Months Ended February 28, 2017: (Dollars in thousands) Revenues $ 1,529,034 $ 5,855,331 $ — $ 31,430 $ (95,389 ) $ 7,320,406 Operating earnings (loss) 19,506 (14,291 ) (4,385 ) 9,677 — 10,507 (Gain) loss on investments — (690 ) — (2,092 ) — (2,782 ) Interest expense 3,565 16,850 12,182 11,411 (4,063 ) 39,945 Other (income) loss (187 ) (17,686 ) (464 ) (179 ) 4,063 (14,453 ) Equity (income) loss from investments (486 ) (3,455 ) (21,557 ) (10,302 ) — (35,800 ) Income (loss) before income taxes $ 16,614 $ (9,310 ) $ 5,454 $ 10,839 $ — $ 23,597 Intersegment revenues $ (89,094 ) $ (4,758 ) $ — $ (1,537 ) $ 95,389 $ — Energy Ag Nitrogen Production Corporate Reconciling Total For the Six Months Ended February 28, 2018: (Dollars in thousands) Revenues $ 3,868,750 $ 11,250,483 $ — $ 31,943 $ (251,194 ) $ 14,899,982 Operating earnings (loss) 127,545 30,855 (10,374 ) (4,029 ) — 143,997 (Gain) loss on investments — (4,811 ) — (2,108 ) — (6,919 ) Interest expense 8,264 40,388 25,948 7,245 (967 ) 80,878 Other (income) loss (1,020 ) (34,514 ) (2,171 ) (426 ) 967 (37,164 ) Equity (income) loss from investments (1,812 ) (13,821 ) (44,347 ) (17,823 ) — (77,803 ) Income (loss) before income taxes $ 122,113 $ 43,613 $ 10,196 $ 9,083 $ — $ 185,005 Intersegment revenues $ (238,813 ) $ (7,607 ) $ — $ (4,774 ) $ 251,194 $ — Total assets at February 28, 2018 $ 4,236,271 $ 7,852,648 $ 2,773,870 $ 2,222,073 $ — $ 17,084,862 Energy Ag Nitrogen Production Corporate Reconciling Total For the Six Months Ended February 28, 2017: (Dollars in thousands) Revenues $ 3,229,214 $ 12,291,325 $ — $ 58,871 $ (210,754 ) $ 15,368,656 Operating earnings (loss) 92,286 95,306 (8,414 ) 17,820 — 196,998 (Gain) loss on investments — 6,695 — (2,076 ) — 4,619 Interest expense 7,833 33,189 24,918 19,385 (7,115 ) 78,210 Other (income) loss (496 ) (35,609 ) (29,570 ) (294 ) 7,115 (58,854 ) Equity (income) loss from investments (1,648 ) (8,872 ) (36,253 ) (29,355 ) — (76,128 ) Income (loss) before income taxes $ 86,597 $ 99,903 $ 32,491 $ 30,160 $ — $ 249,151 Intersegment revenues $ (199,181 ) $ (8,523 ) $ — $ (3,050 ) $ 210,754 $ — |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Feb. 28, 2018 | |
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 lesser 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 fair value hedges. Derivative instruments are recorded on our Consolidated Balance Sheets at fair value as described in Note 12, Fair Value Measurements . Derivatives Not Designated as Hedging Instruments The following tables present the gross fair values of derivative assets, derivative liabilities, and margin deposits (cash collateral) for derivatives not accounted for as hedging instruments, recorded on our Consolidated Balance Sheets along with the related amounts permitted to be offset in accordance with U.S. 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 . February 28, 2018 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 $ 423,978 $ — $ 29,401 $ 394,577 Foreign exchange derivatives 6,026 — 3,125 2,901 Embedded derivative asset 22,704 — — 22,704 Total $ 452,708 $ — $ 32,526 $ 420,182 Derivative Liabilities: Commodity and freight derivatives $ 367,708 $ 30,893 $ 29,401 $ 307,414 Foreign exchange derivatives 12,906 — 3,125 9,781 Interest rate derivatives - non-hedge 1 — — 1 Total $ 380,615 $ 30,893 $ 32,526 $ 317,196 August 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 $ 384,648 $ — $ 35,080 $ 349,568 Foreign exchange derivatives 8,771 — 3,636 5,135 Embedded derivative asset 25,533 — — 25,533 Total $ 418,952 $ — $ 38,716 $ 380,236 Derivative Liabilities: Commodity and freight derivatives $ 309,762 $ 3,898 $ 35,080 $ 270,784 Foreign exchange derivatives 19,931 — 3,636 16,295 Total $ 329,693 $ 3,898 $ 38,716 $ 287,079 Derivative assets and liabilities with maturities of 12 months or less are recorded in derivative assets and derivative liabilities, respectively, on the Consolidated Balance Sheets. Derivative assets and liabilities with maturities greater than 12 months are recorded in other assets and other liabilities, respectively, on the Consolidated Balance Sheets. The amount of long-term derivative assets and liabilities recorded on the Consolidated Balance Sheet at February 28, 2018 , were $23.1 million and $8.2 million , respectively. The amount of long-term derivative assets and liabilities recorded on the Consolidated Balance Sheet at August 31, 2017, were $186.9 million and $13.7 million , respectively. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three and six months ended February 28, 2018 , and 2017 . For the Three Months Ended For the Six Months Ended February 28, Location of Gain (Loss) 2018 2017 2018 2017 (Dollars in thousands) Commodity and freight derivatives Cost of goods sold $ (96,310 ) $ 56,896 $ (68,559 ) $ 75,305 Foreign exchange derivatives Cost of goods sold (5,818 ) (3,429 ) 948 2,595 Foreign exchange derivatives Marketing, general and administrative 344 (951 ) (151 ) (806 ) Interest rate derivatives Interest expense (1 ) 1 (1 ) 4 Embedded derivative Other income 433 468 2,171 29,574 Total $ (101,352 ) $ 52,985 $ (65,592 ) $ 106,672 Commodity and Freight Contracts As of February 28, 2018 , and August 31, 2017 , 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. February 28, 2018 August 31, 2017 Long Short Long Short (Units in thousands) Grain and oilseed - bushels 777,266 1,037,549 570,673 768,540 Energy products - barrels 20,648 11,277 15,072 18,252 Processed grain and oilseed - tons 238 1,158 299 2,347 Crop nutrients - tons 15 9 9 15 Ocean and barge freight - metric tons 6,263 3,349 2,777 1,766 Rail freight - rail cars 168 53 176 75 Natural gas - MMBtu 300 — 500 — 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 $723.2 million and $776.7 million as of February 28, 2018 , and August 31, 2017 , 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 in November of each year 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 first quarter of fiscal 2017, CF Industries' credit rating was reduced below the specified levels and we received a $5.0 million payment from CF Industries, which was recorded as a gain in our Consolidated Statement of Operations. We also recorded an embedded derivative asset of $24.1 million on our Consolidated Balance Sheet and a corresponding gain in our Consolidated Statement of Operations for the fair value of the embedded derivative asset during the three months ended November 30, 2016. During the first quarter of fiscal 2018, we received a second $5.0 million payment from CF Industries. The fair value of the embedded derivative asset recorded on our Consolidated Balance Sheet as of February 28, 2018 , was equal to $22.7 million . The current and long-term portions of the embedded derivative asset are included in derivative assets and other assets on our Consolidated Balance Sheets, respectively. See Note 12, Fair Value Measurements for more information on the valuation of the embedded derivative asset. Derivatives Designated as Fair Value Hedging Strategies As of February 28, 2018 , and August 31, 2017 , we had 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 that is due between fiscal 2019 and fiscal 2025. 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 ("LIBOR"), in essence converting the fixed-rate debt to variable-rate debt. Under these interest rate swaps, we receive fixed-rate interest payments and make interest payments based on the three-month LIBOR. 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. The following table presents the fair value of our derivative instruments designated as fair value hedges and the line items on our Consolidated Balance Sheets in which they are recorded. Derivative Assets Derivative Liabilities Fair Value Hedges Balance Sheet Location February 28, 2018 August 31, 2017 Balance Sheet Location February 28, 2018 August 31, 2017 (Dollars in thousands) (Dollars in thousands) Interest rate swaps Other assets $ — $ 9,978 Other liabilities $ 8,616 $ 707 The following table sets forth the pretax gains (losses) on derivatives accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three and six months ended February 28, 2018 , and 2017 . For the Three Months Ended February 28, For the Six Months Ended February 28, Gain (Loss) on Fair Value Hedging Relationships: Location of Gain (Loss) 2018 2017 2018 2017 (Dollars in thousands) Interest rate swaps Interest expense $ (9,571 ) $ (4,237 ) $ (17,888 ) $ (17,513 ) Hedged item Interest expense 9,571 4,237 17,888 17,513 Total $ — $ — $ — $ — The following table provides the location and carrying amount of hedged liabilities in our Consolidated Balance Sheets as of February 28, 2018 , and August 31, 2017 . February 28, 2018 August 31, 2017 Balance Sheet Location Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities (Dollars in thousands) Long-term debt $ 486,384 $ 8,616 $ 504,271 $ (9,271 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Feb. 28, 2018 | |
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 independent sources 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 February 28, 2018 , and August 31, 2017 , are as follows: February 28, 2018 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 $ 26,002 $ 397,976 $ — $ 423,978 Foreign currency derivatives — 6,026 — 6,026 Deferred compensation assets 53,041 — — 53,041 Deferred purchase price receivable — — 517,759 517,759 Embedded derivative asset — 22,704 — 22,704 Other assets 17,342 — — 17,342 Total $ 96,385 $ 426,706 $ 517,759 $ 1,040,850 Liabilities: Commodity and freight derivatives $ 55,696 $ 312,012 $ — $ 367,708 Foreign currency derivatives — 12,906 — 12,906 Interest rate swap derivatives — 8,617 — 8,617 Total $ 55,696 $ 333,535 $ — $ 389,231 August 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 $ 48,491 $ 336,157 $ — $ 384,648 Foreign currency derivatives — 8,771 — 8,771 Interest rate swap derivatives — 9,978 — 9,978 Deferred compensation assets 52,414 — — 52,414 Deferred purchase price receivable — — 548,602 548,602 Embedded derivative asset — 25,533 — 25,533 Other assets 14,846 — — 14,846 Total $ 115,751 $ 380,439 $ 548,602 $ 1,044,792 Liabilities: Commodity and freight derivatives $ 31,189 $ 278,573 $ — $ 309,762 Foreign currency derivatives — 19,931 — 19,931 Interest rate swap derivatives — 707 — 707 Total $ 31,189 $ 299,211 $ — $ 330,400 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. Deferred purchase price receivable — The fair value of the DPP receivable included in receivables, net and other assets, is determined by discounting the expected cash flows to be received. The expected cash flows are primarily based on unobservable inputs consisting of the face amount of the Receivables adjusted for anticipated credit losses. Significant changes in the anticipated credit losses could result in a significantly higher (or lower) fair value measurement. Due to the use of significant unobservable inputs in the pricing model, including management's assumptions related to anticipated credit losses, the DPP receivable is classified as a Level 3 fair value measurement. The reconciliation of the DPP receivable for the period ended February 28, 2018 , is included in Note 2, Receivables . Embedded derivative asset — The embedded derivative asset relates to contingent payments inherent in 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. There were no material transfers between Level 1, Level 2 and Level 3 assets and liabilities during the three months and six months ended February 28, 2018 and 2017. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 28, 2018 | |
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 February 28, 2018 , our bank covenants allowed maximum guarantees of $1.0 billion , of which $144.2 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 February 28, 2018 . Lease Commitments On November 30, 2017, we completed a sale-leaseback transaction for our primary corporate office building located in Inver Grove Heights, Minnesota. Simultaneous with the closing of the sale, the Company entered into a 20 -year operating lease arrangement with base annual rent of approximately $3.4 million during the first year, followed by annual increases of 2% through the remainder of the lease period. Gain Contingency As of February 28, 2018, a gain contingency resulted from applying ASC Topic 450-30, Gain Contingencies , to the facts and circumstances surrounding the potential for certain excise tax credits associated with manufacturing changes within our Energy business. The resulting gain, if recognized, will likely have a material impact on our consolidated financial statements. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Feb. 28, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Zip Trip Sale On March 23, 2018, we consummated the sale of 33 of our Zip Trip stores located in the Northwest United States for total consideration of $70 million plus the value of inventory. These stores were classified as held for sale at February 28, 2018, and the sale will result in a gain recorded in earnings during the third quarter of fiscal 2018. This disposition does not represent a strategic shift that has or will have a material effect on our operations or financial results. |
Organization, Basis of Presen21
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Feb. 28, 2018 | |
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, 2017 , 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 October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. This ASU is effective for periods beginning after December 15, 2017; however, early adoption of this ASU is permitted during the first interim period if an entity issues interim financial statements and 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. We elected to early adopt ASU No. 2016-16 during the first quarter of fiscal 2018. The adoption did not have a material impact on our consolidated financial statements. Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). Under existing U.S. GAAP the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). The amendments in this ASU also require certain disclosures about stranded tax effects. This ASU is effective for us beginning September 1, 2019, for our fiscal year 2020 and for interim periods within that fiscal year. Early adoption in any period is permitted. The Company’s provisional adjustments recorded to account for the impact of the Tax Cuts and Jobs Act resulted in stranded tax effects. The Company is currently evaluating the timing and impact of adopting ASU 2018-02. In August 2017, the FASB issued ASU No. 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU is intended to improve the financial reporting of hedging relationships to better represent the economic results of an entity’s risk management activities in its financial statements and make certain improvements to simplify the application of the hedge accounting guidance. The amendments in this ASU will make more financial and nonfinancial hedging strategies eligible for hedge accounting, amend the presentation and disclosure requirements and change how entities assess effectiveness. Entities are required to apply this ASU'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, 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 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 changes the presentation of net periodic pension cost and net periodic postretirement benefit cost in the income statement. This ASU requires that the service cost component be included in the same income statement line item as other compensation costs arising from services rendered by the employees during the period. The other components of net periodic benefit cost should be presented in the income statement separately outside of operating income if that subtotal is presented. Additionally, only service cost may be capitalized in assets. This ASU is effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. The guidance on the presentation of the components of net periodic benefit cost in the income statement should be applied retrospectively and the guidance regarding the capitalization of the service cost component in assets should be applied prospectively. The adoption of this amended guidance is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) : 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. The adoption of this amended guidance is not expected to have a material impact 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. The adoption of this amended guidance is not expected to have a material impact on our consolidated statement of cash flows. 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. The adoption of this amended guidance is not expected to have a material impact on our consolidated statement of cash flows. 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 this ASU’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. This ASU is effective for us beginning September 1, 2019, for our fiscal year 2020 and for interim periods within that fiscal year, and the ASU’s provisions are required to be applied using a modified retrospective approach. We have initiated a preliminary assessment of the new lease standard, including the implementation of a new lease software that will improve the collection, maintenance, and aggregation of lease data necessary for the reporting and disclosure requirements under the new lease standard. One of the more significant changes arising from the new lease standard relates to a number of operating lease agreements not currently recognized on our Consolidated Balance Sheets. The new lease guidance will require these lease agreements to be recognized on the Consolidated Balance Sheets as a right-of-use asset along with a corresponding lease liability. As a result, our preliminary assessment indicates the provisions of ASU No. 2016-02 are expected to have a material impact on our Consolidated Balance Sheets. Although we expect the new lease guidance to have a material impact on our Consolidated Balance Sheets, we are continuing to evaluate the extent of potential impact the new lease guidance 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, as well as within additional clarifying ASUs issued by the FASB, 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. The new revenue recognition guidance 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. The new revenue recognition guidance 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. We have completed an initial assessment of our revenue streams and do not believe that the new revenue recognition guidance will have a material impact on our consolidated financial statements. Certain revenue streams are expected to fall within the scope of the new revenue recognition guidance; however, a substantial portion of our revenue falls outside the scope of the new revenue recognition guidance and will continue to follow existing guidance, primarily ASC 815, Derivatives and Hedging . We are continuing to evaluate the impact of the new revenue recognition guidance, including potential changes to business practices and/or contractual terms for in scope revenue streams, as well as the scope of expanded disclosures related to revenue. We expect to complete our final evaluation and implementation of the new revenue recognition guidance throughout fiscal 2018, which will allow us to adopt ASU No. 2014-09 and the related ASUs on September 1, 2018, in the first quarter of fiscal 2019, using the modified retrospective method. |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Receivables [Abstract] | ||
Schedule of Accounts, Notes, Loans and Financing Receivable | February 28, 2018 August 31, 2017 (Dollars in thousands) Trade accounts receivable $ 1,105,996 $ 1,234,500 CHS Capital notes receivable 96,351 164,807 Deferred purchase price receivable 227,602 202,947 Other 553,862 493,104 1,983,811 2,095,358 Less allowances and reserves 218,171 225,726 Total receivables $ 1,765,640 $ 1,869,632 | |
Schedule of Deferred Purchase Price [Table Text Block] | (Dollars in thousands) Balance - as of August 31, 2017 $ 548,602 Monthly settlements, net (33,292 ) Cash collections on DPP (4,355 ) Fair value adjustment 6,804 Balance - as of February 28, 2018 $ 517,759 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | February 28, 2018 August 31, 2017 (Dollars in thousands) Grain and oilseed $ 1,515,669 $ 1,145,285 Energy 779,629 755,886 Crop nutrients 413,719 248,699 Feed and farm supplies 762,513 353,130 Processed grain and oilseed 168,354 49,723 Other 10,274 23,862 Total inventories $ 3,650,158 $ 2,576,585 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Table Text Block] | February 28, 2018 August 31, 2017 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,751,166 $ 2,756,076 Ventura Foods, LLC 353,079 347,016 Ardent Mills, LLC 211,017 206,529 TEMCO, LLC 37,583 41,323 Other equity method investments 265,288 268,444 Cost method investments 134,743 131,605 Total investments $ 3,752,876 $ 3,750,993 |
Equity Method Investments [Table Text Block] | The following table provides aggregate summarized unaudited financial information for our equity method investment in CF Nitrogen for the six months ended February 28, 2018, and 2017: For the Six Months Ended February 28, 2018 2017 (Dollars in thousands) Net sales $ 1,084,270 $ 1,024,409 Gross profit 135,649 125,966 Net earnings 128,803 87,798 Earnings attributable to CHS Inc. 44,347 36,253 |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Goodwill [Table Text Block] | Energy Ag Corporate Total (Dollars in thousands) Balances, August 31, 2017 $ 552 $ 142,929 $ 10,574 $ 154,055 Effect of foreign currency translation adjustments — (277 ) — (277 ) Balances, February 28, 2018 $ 552 $ 142,652 $ 10,574 $ 153,778 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | February 28, August 31, Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 41,077 $ (11,565 ) $ 29,512 $ 46,180 $ (14,695 ) $ 31,485 Trademarks and other intangible assets 6,536 (4,811 ) 1,725 23,623 (21,778 ) 1,845 Total intangible assets $ 47,613 $ (16,376 ) $ 31,237 $ 69,803 $ (36,473 ) $ 33,330 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | (Dollars in thousands) Year 1 $ 3,291 Year 2 3,202 Year 3 2,981 Year 4 2,900 Year 5 2,705 |
Notes Payable and Long-Term D26
Notes Payable and Long-Term Debt (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | February 28, 2018 August 31, 2017 (Dollars in thousands) Notes payable $ 2,844,803 $ 1,695,423 CHS Capital notes payable 148,653 292,792 Total notes payable $ 2,993,456 $ 1,988,215 |
Schedule of Interest,Net | Interest expense for the three months ended February 28, 2018 , and 2017, was $40.2 million and $39.9 million , respectively, net of capitalized interest of $1.3 million and $1.5 million , respectively. Interest expense for the six months ended February 28, 2018 , and 2017, was $80.9 million and $78.2 million respectively, net of capitalized interest of $3.1 million and $3.1 million , respectively. |
Equities (Tables)
Equities (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | 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, 2017, net of tax $ (135,046 ) $ 10,041 $ (6,954 ) $ (51,711 ) $ (183,670 ) Other comprehensive income (loss), before tax: Amounts before reclassifications — 10,606 646 1,875 13,127 Amounts reclassified out 11,267 (1,527 ) 854 (2,042 ) 8,552 Total other comprehensive income (loss), before tax 11,267 9,079 1,500 (167 ) 21,679 Tax effect (3,929 ) (1,885 ) (441 ) 21 (6,234 ) Other comprehensive income (loss), net of tax 7,338 7,194 1,059 (146 ) 15,445 Balance as of February 28, 2018, net of tax $ (127,708 ) $ 17,235 $ (5,895 ) $ (51,857 ) $ (168,225 ) 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, net of tax $ (165,146 ) $ 5,656 $ (9,196 ) $ (43,040 ) $ (211,726 ) Other comprehensive income (loss), before tax: Amounts before reclassifications (500 ) 2,827 1,747 (10,051 ) (5,977 ) Amounts reclassified out 11,786 — 876 15 12,677 Total other comprehensive income (loss), before tax 11,286 2,827 2,623 (10,036 ) 6,700 Tax effect (4,323 ) (1,083 ) (1,005 ) (5 ) (6,416 ) Other comprehensive income (loss), net of tax 6,963 1,744 1,618 (10,041 ) 284 Balance as of February 28, 2017, net of tax $ (158,183 ) $ 7,400 $ (7,578 ) $ (53,081 ) $ (211,442 ) |
Schedule of Stockholders Equity | Changes in equities for the six months ended February 28, 2018 , are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance, August 31, 2017 $ 3,906,426 $ 29,836 $ 405,387 $ 2,264,038 $ (183,670 ) $ 1,471,217 $ 12,591 $ 7,905,825 Reversal of prior year redemption estimates 2,621 — (126,333 ) — — 126,333 — 2,621 Distribution of 2017 patronage refunds — — 128,858 — — (128,858 ) — — Redemptions of equities (2,402 ) (69 ) (150 ) — — — — (2,621 ) Preferred stock dividends — — — — — (126,501 ) — (126,501 ) Other, net (4,150 ) (111 ) (345 ) — — 4,768 (61 ) 101 Net income (loss) — — — — — 346,757 (512 ) 346,245 Other comprehensive income (loss), net of tax — — — — 15,445 — — 15,445 Estimated 2018 cash patronage refunds — — — — — (46,879 ) — (46,879 ) Estimated 2018 equity redemptions (32,276 ) — — — — — — (32,276 ) Balance, February 28, 2018 $ 3,870,219 $ 29,656 $ 407,417 $ 2,264,038 $ (168,225 ) $ 1,646,837 $ 12,018 $ 8,061,960 |
Benefit Plans Schedule of Net B
Benefit Plans Schedule of Net Benefit Costs (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs of Assumptions Used | Qualified Pension Benefits Non-Qualified Pension Benefits Other Benefits 2018 2017 2018 2017 2018 2017 Components of net periodic benefit costs for the three months ended February 28 are as follows: (Dollars in thousands) Service cost $ 9,920 $ 11,692 $ 137 $ 344 $ 236 $ 227 Interest cost 5,991 3,812 178 70 227 39 Expected return on assets (12,049 ) (12,101 ) — — — — Prior service cost (credit) amortization 360 368 7 (47 ) (142 ) (253 ) Actuarial (gain) loss amortization 4,511 6,650 16 100 (306 ) (283 ) Net periodic benefit cost $ 8,733 $ 10,421 $ 338 $ 467 $ 15 $ (270 ) Components of net periodic benefit costs for the six months ended February 28 are as follows: Service cost $ 19,839 $ 21,075 $ 274 $ 603 $ 472 $ 580 Interest cost 11,992 11,504 356 422 454 466 Expected return on assets (24,089 ) (24,115 ) — — — — Prior service cost (credit) amortization 719 770 15 10 (283 ) (283 ) Actuarial (gain) loss amortization 11,399 11,415 30 273 (612 ) (399 ) Net periodic benefit cost $ 19,860 $ 20,649 $ 675 $ 1,308 $ 31 $ 364 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Energy Ag Nitrogen Production Corporate Reconciling Total For the Three Months Ended February 28, 2018: (Dollars in thousands) Revenues $ 1,781,047 $ 5,163,803 $ — $ 13,168 $ (106,925 ) $ 6,851,093 Operating earnings (loss) 10,372 (29,967 ) (7,239 ) (6,050 ) — (32,884 ) (Gain) loss on investments — (1,992 ) — (2,108 ) — (4,100 ) Interest expense 2,629 22,784 12,676 2,665 (578 ) 40,176 Other (income) loss (627 ) (14,286 ) (433 ) (201 ) 578 (14,969 ) Equity (income) loss from investments (660 ) (5,567 ) (24,012 ) (9,202 ) — (39,441 ) Income (loss) before income taxes $ 9,030 $ (30,906 ) $ 4,530 $ 2,796 $ — $ (14,550 ) Intersegment revenues $ (101,609 ) $ (3,574 ) $ — $ (1,742 ) $ 106,925 $ — Energy Ag Nitrogen Production Corporate Reconciling Total For the Three Months Ended February 28, 2017: (Dollars in thousands) Revenues $ 1,529,034 $ 5,855,331 $ — $ 31,430 $ (95,389 ) $ 7,320,406 Operating earnings (loss) 19,506 (14,291 ) (4,385 ) 9,677 — 10,507 (Gain) loss on investments — (690 ) — (2,092 ) — (2,782 ) Interest expense 3,565 16,850 12,182 11,411 (4,063 ) 39,945 Other (income) loss (187 ) (17,686 ) (464 ) (179 ) 4,063 (14,453 ) Equity (income) loss from investments (486 ) (3,455 ) (21,557 ) (10,302 ) — (35,800 ) Income (loss) before income taxes $ 16,614 $ (9,310 ) $ 5,454 $ 10,839 $ — $ 23,597 Intersegment revenues $ (89,094 ) $ (4,758 ) $ — $ (1,537 ) $ 95,389 $ — Energy Ag Nitrogen Production Corporate Reconciling Total For the Six Months Ended February 28, 2018: (Dollars in thousands) Revenues $ 3,868,750 $ 11,250,483 $ — $ 31,943 $ (251,194 ) $ 14,899,982 Operating earnings (loss) 127,545 30,855 (10,374 ) (4,029 ) — 143,997 (Gain) loss on investments — (4,811 ) — (2,108 ) — (6,919 ) Interest expense 8,264 40,388 25,948 7,245 (967 ) 80,878 Other (income) loss (1,020 ) (34,514 ) (2,171 ) (426 ) 967 (37,164 ) Equity (income) loss from investments (1,812 ) (13,821 ) (44,347 ) (17,823 ) — (77,803 ) Income (loss) before income taxes $ 122,113 $ 43,613 $ 10,196 $ 9,083 $ — $ 185,005 Intersegment revenues $ (238,813 ) $ (7,607 ) $ — $ (4,774 ) $ 251,194 $ — Total assets at February 28, 2018 $ 4,236,271 $ 7,852,648 $ 2,773,870 $ 2,222,073 $ — $ 17,084,862 Energy Ag Nitrogen Production Corporate Reconciling Total For the Six Months Ended February 28, 2017: (Dollars in thousands) Revenues $ 3,229,214 $ 12,291,325 $ — $ 58,871 $ (210,754 ) $ 15,368,656 Operating earnings (loss) 92,286 95,306 (8,414 ) 17,820 — 196,998 (Gain) loss on investments — 6,695 — (2,076 ) — 4,619 Interest expense 7,833 33,189 24,918 19,385 (7,115 ) 78,210 Other (income) loss (496 ) (35,609 ) (29,570 ) (294 ) 7,115 (58,854 ) Equity (income) loss from investments (1,648 ) (8,872 ) (36,253 ) (29,355 ) — (76,128 ) Income (loss) before income taxes $ 86,597 $ 99,903 $ 32,491 $ 30,160 $ — $ 249,151 Intersegment revenues $ (199,181 ) $ (8,523 ) $ — $ (3,050 ) $ 210,754 $ — |
Derivative Financial Instrume30
Derivative Financial Instruments and Hedging Activities Derivative Financial Insturments and Hedging Activities (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
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] | February 28, 2018 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 $ 423,978 $ — $ 29,401 $ 394,577 Foreign exchange derivatives 6,026 — 3,125 2,901 Embedded derivative asset 22,704 — — 22,704 Total $ 452,708 $ — $ 32,526 $ 420,182 Derivative Liabilities: Commodity and freight derivatives $ 367,708 $ 30,893 $ 29,401 $ 307,414 Foreign exchange derivatives 12,906 — 3,125 9,781 Interest rate derivatives - non-hedge 1 — — 1 Total $ 380,615 $ 30,893 $ 32,526 $ 317,196 August 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 $ 384,648 $ — $ 35,080 $ 349,568 Foreign exchange derivatives 8,771 — 3,636 5,135 Embedded derivative asset 25,533 — — 25,533 Total $ 418,952 $ — $ 38,716 $ 380,236 Derivative Liabilities: Commodity and freight derivatives $ 309,762 $ 3,898 $ 35,080 $ 270,784 Foreign exchange derivatives 19,931 — 3,636 16,295 Total $ 329,693 $ 3,898 $ 38,716 $ 287,079 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three and six months ended February 28, 2018 , and 2017 . For the Three Months Ended For the Six Months Ended February 28, Location of Gain (Loss) 2018 2017 2018 2017 (Dollars in thousands) Commodity and freight derivatives Cost of goods sold $ (96,310 ) $ 56,896 $ (68,559 ) $ 75,305 Foreign exchange derivatives Cost of goods sold (5,818 ) (3,429 ) 948 2,595 Foreign exchange derivatives Marketing, general and administrative 344 (951 ) (151 ) (806 ) Interest rate derivatives Interest expense (1 ) 1 (1 ) 4 Embedded derivative Other income 433 468 2,171 29,574 Total $ (101,352 ) $ 52,985 $ (65,592 ) $ 106,672 |
Schedule of Derivative Instruments, Purchase and Sales Contracts [Table Text Block] | all outstanding commodity and freight contracts accounted for as derivative instruments. February 28, 2018 August 31, 2017 Long Short Long Short (Units in thousands) Grain and oilseed - bushels 777,266 1,037,549 570,673 768,540 Energy products - barrels 20,648 11,277 15,072 18,252 Processed grain and oilseed - tons 238 1,158 299 2,347 Crop nutrients - tons 15 9 9 15 Ocean and barge freight - metric tons 6,263 3,349 2,777 1,766 Rail freight - rail cars 168 53 176 75 Natural gas - MMBtu 300 — 500 — |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of our derivative instruments designated as fair value hedges and the line items on our Consolidated Balance Sheets in which they are recorded. Derivative Assets Derivative Liabilities Fair Value Hedges Balance Sheet Location February 28, 2018 August 31, 2017 Balance Sheet Location February 28, 2018 August 31, 2017 (Dollars in thousands) (Dollars in thousands) Interest rate swaps Other assets $ — $ 9,978 Other liabilities $ 8,616 $ 707 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table sets forth the pretax gains (losses) on derivatives accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three and six months ended February 28, 2018 , and 2017 . For the Three Months Ended February 28, For the Six Months Ended February 28, Gain (Loss) on Fair Value Hedging Relationships: Location of Gain (Loss) 2018 2017 2018 2017 (Dollars in thousands) Interest rate swaps Interest expense $ (9,571 ) $ (4,237 ) $ (17,888 ) $ (17,513 ) Hedged item Interest expense 9,571 4,237 17,888 17,513 Total $ — $ — $ — $ — |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table provides the location and carrying amount of hedged liabilities in our Consolidated Balance Sheets as of February 28, 2018 , and August 31, 2017 . February 28, 2018 August 31, 2017 Balance Sheet Location Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities (Dollars in thousands) Long-term debt $ 486,384 $ 8,616 $ 504,271 $ (9,271 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | February 28, 2018 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 $ 26,002 $ 397,976 $ — $ 423,978 Foreign currency derivatives — 6,026 — 6,026 Deferred compensation assets 53,041 — — 53,041 Deferred purchase price receivable — — 517,759 517,759 Embedded derivative asset — 22,704 — 22,704 Other assets 17,342 — — 17,342 Total $ 96,385 $ 426,706 $ 517,759 $ 1,040,850 Liabilities: Commodity and freight derivatives $ 55,696 $ 312,012 $ — $ 367,708 Foreign currency derivatives — 12,906 — 12,906 Interest rate swap derivatives — 8,617 — 8,617 Total $ 55,696 $ 333,535 $ — $ 389,231 August 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 $ 48,491 $ 336,157 $ — $ 384,648 Foreign currency derivatives — 8,771 — 8,771 Interest rate swap derivatives — 9,978 — 9,978 Deferred compensation assets 52,414 — — 52,414 Deferred purchase price receivable — — 548,602 548,602 Embedded derivative asset — 25,533 — 25,533 Other assets 14,846 — — 14,846 Total $ 115,751 $ 380,439 $ 548,602 $ 1,044,792 Liabilities: Commodity and freight derivatives $ 31,189 $ 278,573 $ — $ 309,762 Foreign currency derivatives — 19,931 — 19,931 Interest rate swap derivatives — 707 — 707 Total $ 31,189 $ 299,211 $ — $ 330,400 |
Receivables - Schedule of Rece
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Feb. 28, 2018 | Aug. 31, 2017 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,105,996 | $ 1,234,500 |
CHS Capital notes receivable | 96,351 | 164,807 |
Deferred purchase price receivable | 227,602 | 202,947 |
Other | 553,862 | 493,104 |
Receivables, gross | 1,983,811 | 2,095,358 |
Less allowances and reserves | 218,171 | 225,726 |
Total receivables | $ 1,765,640 | $ 1,869,632 |
Receivables - Narrative (Detai
Receivables - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Feb. 28, 2018 | Aug. 31, 2017 | Feb. 28, 2017 | |
Notes Receivable, Long-Term | |||
Interest Income Accrual Term, Discontinued | 90 days | ||
CHS Capital long-term notes receivable additional available credit of counterparty | $ 348,600 | ||
Deferred purchase price receivable | $ 517,759 | $ 548,602 | $ 0 |
Maximum [Member] | |||
Notes Receivable, Short-Term | |||
CHS Capital notes receivable, current, term | 12 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 | $ 600 | $ 17,000 | |
Commercial Notes to Notes and Loans Receivable, Net, Percentage | 3.00% | 17.00% | |
Producer Notes to Notes and Loans Receivable, Net, Percentage | 97.00% | 83.00% |
Receivables Schedule of Deferre
Receivables Schedule of Deferred Purchase Price (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Feb. 28, 2018 | Aug. 31, 2017 | Feb. 28, 2017 | |
Receivables [Abstract] | |||
Receivables Securitization Facility, Amount | $ 700,000 | ||
Availability under Securitization Facility | 618,000 | ||
Deferred purchase price receivable | 517,759 | $ 548,602 | $ 0 |
Monthly settlements, net | (33,292) | ||
Cash collections | (4,355) | ||
Fair value adjustment | $ 6,804 |
Inventories - Schedule of Inve
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Feb. 28, 2018 | Aug. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Grain and oilseed | $ 1,515,669 | $ 1,145,285 |
Energy | 779,629 | 755,886 |
Crop nutrients | 413,719 | 248,699 |
Feed and farm supplies | 762,513 | 353,130 |
Processed grain and oilseed | 168,354 | 49,723 |
Other | 10,274 | 23,862 |
Total inventories | $ 3,650,158 | $ 2,576,585 |
Inventories - Narrative (Detai
Inventories - Narrative (Details) - USD ($) $ in Millions | Feb. 28, 2018 | Aug. 31, 2017 |
Inventory Disclosure [Abstract] | ||
LIFO inventory, difference amount had FIFO inventory valuation method been used | $ 243.5 | $ 186.2 |
Percentage of LIFO inventory | 16.00% | 19.00% |
Investments - Narrative (Detai
Investments - Narrative (Details) - USD ($) $ in Thousands | Feb. 01, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | Aug. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity (income) loss from investments | $ (39,441) | $ (35,800) | $ (77,803) | $ (76,128) | ||
Cost Method Investments | 134,743 | 134,743 | $ 131,605 | |||
Investments | $ 3,752,876 | $ 3,752,876 | 3,750,993 | |||
CF Nitrogen LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to Acquire Equity Method Investments | $ 2,800,000 | |||||
Ownership percentage | 11.40% | 11.40% | ||||
Equity Method Investments | $ 2,751,166 | $ 2,751,166 | 2,756,076 | |||
Ventura Foods, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 353,079 | 353,079 | 347,016 | |||
TEMCO, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 37,583 | 37,583 | 41,323 | |||
Ardent Mills LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | $ 211,017 | $ 211,017 | 206,529 | |||
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 | $ (24,012) | (21,557) | $ (44,347) | (36,253) | ||
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 | $ (9,202) | (10,302) | $ (17,823) | (29,355) | ||
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 | $ (5,567) | $ (3,455) | $ (13,821) | $ (8,872) | ||
Ag [Member] | TEMCO, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% | ||||
Miscellaneous Investments [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | $ 265,288 | $ 265,288 | $ 268,444 |
Investments Equity Method inves
Investments Equity Method investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) attributable to CHS Inc. | $ 166,674 | $ 14,567 | $ 346,757 | $ 223,717 |
CF Nitrogen LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net Sales | 1,084,270 | 1,024,409 | ||
Gross Profit | 135,649 | 125,966 | ||
Net earnings | 128,803 | 87,798 | ||
Net income (loss) attributable to CHS Inc. | $ 44,347 | $ 36,253 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets Goodwill by Segment (Details) $ in Thousands | 6 Months Ended |
Feb. 28, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance, Goodwill | $ 154,055 |
Effect of foreign currency translation adjustments | (277) |
Ending Balance, Goodwill | 153,778 |
Energy [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance, Goodwill | 552 |
Effect of foreign currency translation adjustments | 0 |
Ending Balance, Goodwill | 552 |
Ag [Member] | |
Goodwill [Roll Forward] | |
Beginning Balance, Goodwill | 142,929 |
Effect of foreign currency translation adjustments | (277) |
Ending Balance, Goodwill | 142,652 |
Corporate and Other | |
Goodwill [Roll Forward] | |
Beginning Balance, Goodwill | 10,574 |
Effect of foreign currency translation adjustments | 0 |
Ending Balance, Goodwill | 10,574 |
Nitrogen Production [Member] | |
Goodwill [Roll Forward] | |
Ending Balance, Goodwill | $ 0 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | Aug. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 800 | $ 1,000 | $ 1,700 | $ 2,300 | |
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 | 41,077 | $ 41,077 | $ 46,180 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (11,565) | (11,565) | (14,695) | ||
Finite-Lived Intangible Assets, Net | 29,512 | 29,512 | 31,485 | ||
Trademarks and other intangible assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Carrying Amount | 6,536 | 6,536 | 23,623 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (4,811) | (4,811) | (21,778) | ||
Finite-Lived Intangible Assets, Net | 1,725 | 1,725 | 1,845 | ||
Total intangible assets [Domain] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Carrying Amount | 47,613 | 47,613 | 69,803 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (16,376) | (16,376) | (36,473) | ||
Finite-Lived Intangible Assets, Net | $ 31,237 | $ 31,237 | $ 33,330 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets (Details) $ in Thousands | Feb. 28, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 3,291 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,202 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,981 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,900 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 2,705 |
Notes Payable and Long-Term D42
Notes Payable and Long-Term Debt - Footnote Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2018 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||
Notes payable | $ 2,993,456 | $ 1,988,215 |
Notes payable | ||
Debt Instrument [Line Items] | ||
Notes payable | 2,844,803 | 1,695,423 |
CHS Capital notes payable | ||
Debt Instrument [Line Items] | ||
Notes payable | 148,653 | 292,792 |
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, Amount Outstanding | $ 1,700,000 | $ 480,000 |
Notes Payable and Long-Term D43
Notes Payable and Long-Term Debt - Schedule of Interest, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Debt Disclosure [Abstract] | ||||
Interest Expense | $ 40.2 | $ 39.9 | $ 80.9 | $ 78.2 |
Capitalized interest | $ (1.3) | $ (1.5) | $ (3.1) | $ (3.1) |
Equities Changes in Equity (Det
Equities Changes in Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ 7,905,825 | |||
Reversal of prior year redemption estimates | 2,621 | |||
Patronage Refunds | 0 | |||
Redemptions of equities | (2,621) | |||
Preferred stock dividends | (126,501) | |||
Other, net | 101 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 166,626 | $ 14,973 | 346,245 | $ 223,915 |
Net income (loss) attributable to CHS Inc. | 166,674 | 14,567 | 346,757 | 223,717 |
Net income (loss) attributable to noncontrolling interests | (48) | 406 | (512) | 198 |
Other comprehensive income (loss), net of tax | 10,219 | 14,778 | 15,445 | 284 |
Estimated 2018 cash patronage refunds | (46,879) | |||
Estimated 2018 equity redemptions | (32,276) | |||
Ending Balance | 8,061,960 | 8,061,960 | ||
Capital equity certificates [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 3,906,426 | |||
Reversal of prior year redemption estimates | 2,621 | |||
Patronage Refunds | 0 | |||
Redemptions of equities | (2,402) | |||
Other, net | (4,150) | |||
Estimated 2018 equity redemptions | (32,276) | |||
Ending Balance | 3,870,219 | 3,870,219 | ||
Nonpatronage Equity Certificates [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 29,836 | |||
Reversal of prior year redemption estimates | 0 | |||
Patronage Refunds | 0 | |||
Redemptions of equities | (69) | |||
Other, net | (111) | |||
Ending Balance | 29,656 | 29,656 | ||
Non-qualified Equity Certificates [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 405,387 | |||
Reversal of prior year redemption estimates | (126,333) | |||
Patronage Refunds | 128,858 | |||
Redemptions of equities | (150) | |||
Other, net | (345) | |||
Ending Balance | 407,417 | 407,417 | ||
Preferred Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 2,264,038 | |||
Patronage Refunds | 0 | |||
Redemptions of equities | 0 | |||
Ending Balance | 2,264,038 | 2,264,038 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (183,670) | (211,726) | ||
Patronage Refunds | 0 | |||
Other comprehensive income (loss), net of tax | 15,445 | 284 | ||
Ending Balance | (168,225) | $ (211,442) | (168,225) | $ (211,442) |
Capital Reserves [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 1,471,217 | |||
Reversal of prior year redemption estimates | 126,333 | |||
Patronage Refunds | (128,858) | |||
Preferred stock dividends | (126,501) | |||
Other, net | 4,768 | |||
Net income (loss) attributable to CHS Inc. | 346,757 | |||
Estimated 2018 cash patronage refunds | (46,879) | |||
Ending Balance | 1,646,837 | 1,646,837 | ||
Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 12,591 | |||
Patronage Refunds | 0 | |||
Other, net | (61) | |||
Net income (loss) attributable to noncontrolling interests | (512) | |||
Ending Balance | $ 12,018 | $ 12,018 |
Equities Accumulated Other Comp
Equities Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 7,905,825 | |||
Other comprehensive income (loss), net of tax | $ 10,219 | $ 14,778 | 15,445 | $ 284 |
Ending Balance | 8,061,960 | 8,061,960 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (135,046) | (165,146) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | (500) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 11,267 | 11,786 | ||
Other Comprehensive Income (Loss), before Tax | 11,267 | 11,286 | ||
Other Comprehensive Income (Loss), Tax | (3,929) | (4,323) | ||
Other comprehensive income (loss), net of tax | 7,338 | 6,963 | ||
Ending Balance | (127,708) | (158,183) | (127,708) | (158,183) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 10,041 | 5,656 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 10,606 | 2,827 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (1,527) | 0 | ||
Other Comprehensive Income (Loss), before Tax | 9,079 | 2,827 | ||
Other Comprehensive Income (Loss), Tax | (1,885) | (1,083) | ||
Other comprehensive income (loss), net of tax | 7,194 | 1,744 | ||
Ending Balance | 17,235 | 7,400 | 17,235 | 7,400 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (6,954) | (9,196) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 646 | 1,747 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 854 | 876 | ||
Other Comprehensive Income (Loss), before Tax | 1,500 | 2,623 | ||
Other Comprehensive Income (Loss), Tax | (441) | (1,005) | ||
Other comprehensive income (loss), net of tax | 1,059 | 1,618 | ||
Ending Balance | (5,895) | (7,578) | (5,895) | (7,578) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (51,711) | (43,040) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 1,875 | (10,051) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (2,042) | 15 | ||
Other Comprehensive Income (Loss), before Tax | (167) | (10,036) | ||
Other Comprehensive Income (Loss), Tax | 21 | (5) | ||
Other comprehensive income (loss), net of tax | (146) | (10,041) | ||
Ending Balance | (51,857) | (53,081) | (51,857) | (53,081) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (183,670) | (211,726) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 13,127 | (5,977) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 8,552 | 12,677 | ||
Other Comprehensive Income (Loss), before Tax | 21,679 | 6,700 | ||
Other Comprehensive Income (Loss), Tax | (6,234) | (6,416) | ||
Other comprehensive income (loss), net of tax | 15,445 | 284 | ||
Ending Balance | $ (168,225) | $ (211,442) | $ (168,225) | $ (211,442) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2018 | Feb. 28, 2018 | Aug. 31, 2019 | Aug. 31, 2018 |
Income Tax Contingency [Line Items] | |||||
Provisional tax liability | $ 0 | ||||
Discrete provisional net benefit | $ 136,800,000 | ||||
Deferred tax benefit | $ 41,300,000 | ||||
Scenario, Forecast | |||||
Income Tax Contingency [Line Items] | |||||
Corporate Tax Rate | 21.00% | 25.70% |
Benefit Plans - Net Periodic B
Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Qualified Pension Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | $ 9,920,000 | $ 11,692,000 | $ 19,839,000 | $ 21,075,000 |
Interest cost | 5,991,000 | 3,812,000 | 11,992,000 | 11,504,000 |
Expected return on assets | (12,049,000) | (12,101,000) | (24,089,000) | (24,115,000) |
Prior service cost (credit) amortization | 360,000 | 368,000 | 719,000 | 770,000 |
Actuarial (gain) loss amortization | 4,511,000 | 6,650,000 | 11,399,000 | 11,415,000 |
Net periodic benefit cost | 8,733,000 | 10,421,000 | 19,860,000 | 20,649,000 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0 | |||
Non-Qualified Pension Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | 137,000 | 344,000 | 274,000 | 603,000 |
Interest cost | 178,000 | 70,000 | 356,000 | 422,000 |
Expected return on assets | 0 | 0 | 0 | 0 |
Prior service cost (credit) amortization | 7,000 | (47,000) | 15,000 | 10,000 |
Actuarial (gain) loss amortization | 16,000 | 100,000 | 30,000 | 273,000 |
Net periodic benefit cost | 338,000 | 467,000 | 675,000 | 1,308,000 |
Other Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | 236,000 | 227,000 | 472,000 | 580,000 |
Interest cost | 227,000 | 39,000 | 454,000 | 466,000 |
Expected return on assets | 0 | 0 | 0 | 0 |
Prior service cost (credit) amortization | (142,000) | (253,000) | (283,000) | (283,000) |
Actuarial (gain) loss amortization | (306,000) | (283,000) | (612,000) | (399,000) |
Net periodic benefit cost | $ 15,000 | $ (270,000) | $ 31,000 | $ 364,000 |
Segment Reporting - Segment In
Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 6,851,093 | $ 7,320,406 | $ 14,899,982 | $ 15,368,656 | |
Operating earnings (loss) | (32,884) | 10,507 | 143,997 | 196,998 | |
(Gain) loss on investments | (4,100) | (2,782) | (6,919) | 4,619 | |
Interest Expense | 40,176 | 39,945 | 80,878 | 78,210 | |
Other (income) loss | (14,969) | (14,453) | (37,164) | (58,854) | |
Equity (income) loss from investments | (39,441) | (35,800) | (77,803) | (76,128) | |
Income (loss) before income taxes | (14,550) | 23,597 | 185,005 | 249,151 | |
Total assets | 17,084,862 | 17,084,862 | $ 15,973,756 | ||
Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,781,047 | 1,529,034 | 3,868,750 | 3,229,214 | |
Operating earnings (loss) | 10,372 | 19,506 | 127,545 | 92,286 | |
(Gain) loss on investments | 0 | 0 | 0 | 0 | |
Interest Expense | 2,629 | 3,565 | 8,264 | 7,833 | |
Other (income) loss | (627) | (187) | (1,020) | (496) | |
Equity (income) loss from investments | (660) | (486) | (1,812) | (1,648) | |
Income (loss) before income taxes | 9,030 | 16,614 | 122,113 | 86,597 | |
Total assets | 4,236,271 | 4,236,271 | |||
Ag [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,163,803 | 5,855,331 | 11,250,483 | 12,291,325 | |
Operating earnings (loss) | (29,967) | (14,291) | 30,855 | 95,306 | |
(Gain) loss on investments | (1,992) | (690) | (4,811) | 6,695 | |
Interest Expense | 22,784 | 16,850 | 40,388 | 33,189 | |
Other (income) loss | (14,286) | (17,686) | (34,514) | (35,609) | |
Equity (income) loss from investments | (5,567) | (3,455) | (13,821) | (8,872) | |
Income (loss) before income taxes | (30,906) | (9,310) | 43,613 | 99,903 | |
Total assets | 7,852,648 | 7,852,648 | |||
Nitrogen Production [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating earnings (loss) | (7,239) | (4,385) | (10,374) | (8,414) | |
(Gain) loss on investments | 0 | 0 | 0 | 0 | |
Interest Expense | 12,676 | 12,182 | 25,948 | 24,918 | |
Other (income) loss | (433) | (464) | (2,171) | (29,570) | |
Equity (income) loss from investments | (24,012) | (21,557) | (44,347) | (36,253) | |
Income (loss) before income taxes | 4,530 | 5,454 | 10,196 | 32,491 | |
Total assets | 2,773,870 | 2,773,870 | |||
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 13,168 | 31,430 | 31,943 | 58,871 | |
Operating earnings (loss) | (6,050) | 9,677 | (4,029) | 17,820 | |
(Gain) loss on investments | (2,108) | (2,092) | (2,108) | (2,076) | |
Interest Expense | 2,665 | 11,411 | 7,245 | 19,385 | |
Other (income) loss | (201) | (179) | (426) | (294) | |
Equity (income) loss from investments | (9,202) | (10,302) | (17,823) | (29,355) | |
Income (loss) before income taxes | 2,796 | 10,839 | 9,083 | 30,160 | |
Total assets | 2,222,073 | 2,222,073 | |||
Reconciling Amounts | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (106,925) | (95,389) | (251,194) | (210,754) | |
Operating earnings (loss) | 0 | 0 | 0 | 0 | |
(Gain) loss on investments | 0 | 0 | 0 | 0 | |
Interest Expense | (578) | (4,063) | (967) | (7,115) | |
Other (income) loss | 578 | 4,063 | 967 | 7,115 | |
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 | (101,609) | (89,094) | (238,813) | (199,181) | |
Intersegment Eliminations [Member] | Ag [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (3,574) | (4,758) | (7,607) | (8,523) | |
Intersegment Eliminations [Member] | Nitrogen Production [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (1,742) | (1,537) | (4,774) | (3,050) | |
Intersegment Eliminations [Member] | Reconciling Amounts | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 106,925 | $ 95,389 | $ 251,194 | $ 210,754 |
Derivative Financial Instrume49
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 | Feb. 28, 2018rail_carTtBushelsMMBtuBarrels | Aug. 31, 2017rail_carTtBushelsMMBtuBarrels |
Grain and oilseed - bushels | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 777,266 | 570,673 |
Grain and oilseed - bushels | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 1,037,549 | 768,540 |
Energy products - barrels | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 20,648 | 15,072 |
Energy products - barrels | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 11,277 | 18,252 |
Processed grain and oilseed - tons | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 238 | 299 |
Processed grain and oilseed - tons | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,158 | 2,347 |
Crop nutrients - tons | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 15 | 9 |
Crop nutrients - tons | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 9 | 15 |
Ocean and barge freight - metric tons | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 6,263 | 2,777 |
Ocean and barge freight - metric tons | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 3,349 | 1,766 |
Rail freight - rail cars | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | rail_car | 168 | 176 |
Rail freight - rail cars | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | rail_car | 53 | 75 |
Natural gas - MMBtu | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 300 | 500 |
Natural gas - MMBtu | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 0 | 0 |
Derivative Financial Instrume50
Derivative Financial Instruments and Hedging Activities Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Feb. 28, 2018 | Aug. 31, 2017 | |
Derivative [Line Items] | ||||
Derivative Asset, Noncurrent | $ 23,100 | $ 186,900 | ||
Derivative Liability, Noncurrent | 8,200 | 13,700 | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 420,182 | 380,236 | ||
Derivative Assets | 452,708 | 418,952 | ||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 32,526 | 38,716 | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 317,196 | 287,079 | ||
Derivative Liabilities | 380,615 | 329,693 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 30,893 | 3,898 | ||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | $ 32,526 | 38,716 | ||
Credit Rating Agencies Threshold, Minimum | 66.67% | |||
CF Nitrogen LLC [Member] | ||||
Derivative [Line Items] | ||||
Annual Payment Receivable Contingent On Investment Credit Rating | $ 5,000 | |||
Payments For Credit Rating Decrease In Investment | $ 5,000 | $ 5,000 | ||
Embedded derivative asset | 22,700 | |||
Embedded Derivative, Gain on Embedded Derivative | $ 24,100 | |||
Foreign currency derivatives | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 2,901 | 5,135 | ||
Derivative Assets | 6,026 | 8,771 | ||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 3,125 | 3,636 | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 9,781 | 16,295 | ||
Derivative Liabilities | 12,906 | 19,931 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 3,125 | 3,636 | ||
Derivative Asset, Notional Amount | 723,200 | 776,700 | ||
Interest rate swap derivatives | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 1 | |||
Derivative Liabilities | 1 | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | |||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | |||
Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 22,704 | 25,533 | ||
Derivative Assets | 22,704 | 25,533 | ||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | 0 | ||
Commodity and freight derivatives | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 394,577 | 349,568 | ||
Derivative Assets | 423,978 | 384,648 | ||
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 29,401 | 35,080 | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 307,414 | 270,784 | ||
Derivative Liabilities | 367,708 | 309,762 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 30,893 | 3,898 | ||
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 29,401 | $ 35,080 | ||
Fair Value Hedging [Member] | Interest rate swap derivatives | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 495,000 |
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 | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (101,352) | $ 52,985 | $ (65,592) | $ 106,672 |
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 | (96,310) | 56,896 | (68,559) | 75,305 |
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 | (5,818) | (3,429) | 948 | 2,595 |
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 | 344 | (951) | (151) | (806) |
Interest rate derivatives | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (1) | 1 | (1) | 4 |
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 | $ 433 | $ 468 | $ 2,171 | $ 29,574 |
Derivative Financial Instrume52
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Feb. 28, 2018 | Aug. 31, 2017 |
Derivative [Line Items] | ||
Derivative Assets | $ 452,708 | $ 418,952 |
Derivative Liabilities | 380,615 | 329,693 |
Designated as Hedging Instrument | Other Assets | Interest rate swap derivatives | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 9,978 |
Designated as Hedging Instrument | Other Liabilities | Interest rate swap derivatives | ||
Derivative [Line Items] | ||
Derivative Liabilities | $ 8,616 | $ 707 |
Derivative Financial Instrume53
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instruments, Effect on Earnings (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Derivative [Line Items] | ||||
Gain (loss) on fair value hedging relationship | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Expense | Interest rate swap derivatives | ||||
Derivative [Line Items] | ||||
Gain (loss) on fair value hedging relationship | (9,571) | (4,237) | (17,888) | (17,513) |
Interest Expense | Hedged Item | ||||
Derivative [Line Items] | ||||
Gain (loss) on fair value hedging relationship | $ 9,571 | $ 4,237 | $ 17,888 | $ 17,513 |
Derivative Financial Instrume54
Derivative Financial Instruments and Hedging Activities - Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location (Details) - Designated as Hedging Instrument - Long-term debt - USD ($) $ in Thousands | Feb. 28, 2018 | Aug. 31, 2017 |
Derivative [Line Items] | ||
Carrying Amount of Hedged Liabilities | $ 486,384 | $ 504,271 |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities | $ 8,616 | $ (9,271) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Feb. 28, 2018 | Aug. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | $ 53,041 | $ 52,414 |
Deferred purchase price receivable | 517,759 | 548,602 |
Embedded derivative asset | 22,704 | 25,533 |
Other assets | 17,342 | 14,846 |
Total assets | 1,040,850 | 1,044,792 |
Foreign currency derivatives | 19,931 | |
Total liabilities | 389,231 | 330,400 |
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 | 53,041 | 52,414 |
Deferred purchase price receivable | 0 | 0 |
Embedded derivative asset | 0 | 0 |
Other assets | 17,342 | 14,846 |
Total assets | 96,385 | 115,751 |
Foreign currency derivatives | 0 | |
Total liabilities | 55,696 | 31,189 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Deferred purchase price receivable | 0 | 0 |
Embedded derivative asset | 22,704 | 25,533 |
Other assets | 0 | 0 |
Total assets | 426,706 | 380,439 |
Foreign currency derivatives | 19,931 | |
Total liabilities | 333,535 | 299,211 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Deferred purchase price receivable | 517,759 | 548,602 |
Embedded derivative asset | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 517,759 | 548,602 |
Foreign currency derivatives | 0 | |
Total liabilities | 0 | 0 |
Commodity and freight derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 423,978 | 384,648 |
Derivative Liability | 367,708 | 309,762 |
Commodity and freight derivatives | 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 | 26,002 | 48,491 |
Derivative Liability | 55,696 | 31,189 |
Commodity and freight derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 397,976 | 336,157 |
Derivative Liability | 312,012 | 278,573 |
Commodity and freight derivatives | 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, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives | 6,026 | 8,771 |
Foreign currency derivatives | 12,906 | |
Foreign currency derivatives | 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 | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives | 6,026 | 8,771 |
Foreign currency derivatives | 12,906 | |
Foreign currency derivatives | 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, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9,978 | |
Derivative Liability | 8,617 | 707 |
Interest rate swap derivatives | 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 | |
Derivative Liability | 0 | 0 |
Interest rate swap derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9,978 | |
Derivative Liability | 8,617 | 707 |
Interest rate swap derivatives | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liability | $ 0 | $ 0 |
Commitments and Contingencies G
Commitments and Contingencies Guarantees (Details) $ in Millions | Feb. 28, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure, undiscounted | $ 144.2 |
Maximum guarantees allowed by bank covenants | $ 1,000 |
Commitments and Contingencies L
Commitments and Contingencies Lease Commitments (Details) $ in Millions | 6 Months Ended |
Feb. 28, 2018USD ($) | |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Term of Contract | 20 years |
Sale Leaseback Transaction, Annual Rental Payments | $ 3.4 |
Annual Rent Increases, Percent | 2.00% |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Mar. 23, 2018USD ($)store | Feb. 28, 2018USD ($) | Feb. 28, 2017USD ($) |
Subsequent Event [Line Items] | |||
Proceeds from sale of business | $ 53,552 | $ 0 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Number of stores held for sale | store | 33 | ||
Proceeds from sale of business | $ 70,000 |