Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2018 | Jan. 10, 2019 | |
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 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Nov. 30, 2018 | Aug. 31, 2018 |
Current assets [Abstract] | ||
Cash and cash equivalents | $ 266,152 | $ 450,617 |
Receivables | 2,686,095 | 2,460,401 |
Inventories | 3,184,449 | 2,768,649 |
Derivative assets | 202,932 | 329,757 |
Margin and related deposits | 214,594 | 151,150 |
Supplier advance payments | 399,095 | 288,423 |
Other current assets | 234,406 | 244,208 |
Total current assets | 7,187,723 | 6,693,205 |
Investments | 3,774,536 | 3,711,925 |
Property, plant and equipment | 5,078,307 | 5,141,719 |
Other assets | 813,190 | 834,329 |
Total assets | 16,853,756 | 16,381,178 |
Current liabilities [Abstract] | ||
Notes payable | 2,401,553 | 2,272,196 |
Current portion of long-term debt | 167,423 | 167,565 |
Customer margin deposits and credit balances | 133,698 | 137,395 |
Customer advance payments | 325,817 | 409,088 |
Accounts payable | 2,202,487 | 1,844,489 |
Derivative liabilities | 282,557 | 438,465 |
Accrued expenses | 428,940 | 511,032 |
Dividends and equities payable | 311,461 | 153,941 |
Total current liabilities | 6,253,936 | 5,934,171 |
Long-term debt | 1,739,956 | 1,762,690 |
Long-term deferred tax liabilities | 209,767 | 182,770 |
Other liabilities | 358,005 | 336,519 |
Commitments and contingencies (Note 15) | ||
Equities: | ||
Preferred stock | 2,264,038 | 2,264,038 |
Equity certificates | 4,558,940 | 4,609,456 |
Accumulated other comprehensive loss | (204,232) | (199,915) |
Capital reserves | 1,663,971 | 1,482,003 |
Total CHS Inc. equities | 8,282,717 | 8,155,582 |
Noncontrolling interests | 9,375 | 9,446 |
Total equities | 8,292,092 | 8,165,028 |
Total liabilities and equities | $ 16,853,756 | $ 16,381,178 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 8,484,289 | $ 8,031,884 |
Cost of goods sold | 8,013,648 | 7,711,392 |
Gross profit | 470,641 | 320,492 |
Marketing, general and administrative | 162,496 | 140,346 |
Reserve and impairment charges (recoveries), net | (6,353) | (3,787) |
Operating earnings (loss) | 314,498 | 183,933 |
Interest Expense | 38,908 | 40,702 |
Other (income) loss | (25,134) | (26,195) |
Equity (income) loss from investments | (66,508) | (38,362) |
Income (loss) before income taxes | 367,232 | 207,788 |
Income tax expense (benefit) | 20,117 | 20,606 |
Net income (loss) | 347,115 | 187,182 |
Net income (loss) attributable to noncontrolling interests | (389) | (464) |
Net income (loss) attributable to CHS Inc. | $ 347,504 | $ 187,646 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Net income (loss) | $ 347,115 | $ 187,182 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Postretirement benefit plan activity, net of tax expense (benefit) | 2,101 | 1,594 |
Unrealized net gain (loss) on available for sale investments, net of tax expense (benefit) | 0 | 3,640 |
Cash flow hedges, net of tax expense (benefit) | (1,307) | (4) |
Foreign currency translation adjustment, net of tax expense (benefit) | (405) | (2,211) |
Other comprehensive income (loss), net of tax | 389 | 3,019 |
Comprehensive income (loss) | 347,504 | 190,201 |
Less comprehensive income attributable to noncontrolling interests | (389) | (464) |
Comprehensive Income (Loss) Attributable to CHS | $ 347,893 | $ 190,665 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 347,115 | $ 187,182 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 118,603 | 120,148 |
Amortization of deferred major repair costs | 19,176 | 16,418 |
Equity (income) loss from investments | (66,508) | (38,362) |
Distributions from equity investments | 18,887 | 12,514 |
Provision for doubtful accounts | 5,009 | (3,601) |
Deferred taxes | 26,555 | 16,346 |
Other, net | (3,162) | 375 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | (182,767) | (56,700) |
Inventories | (416,196) | (513,023) |
Derivative assets | 139,694 | 63,926 |
Margin and related deposits | (63,476) | (893) |
Supplier advance payments | (110,672) | (293,536) |
Other current assets and other assets | 12,541 | 6,323 |
Customer margin deposits and credit balances | (3,697) | (18,045) |
Customer advance payments | (83,271) | (10,251) |
Accounts payable and accrued expenses | 299,741 | 453,219 |
Derivative liabilities | (159,385) | (99,956) |
Other liabilities | 7,015 | 4,376 |
Net cash provided by (used in) operating activities | (94,798) | (153,540) |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (104,750) | (85,824) |
Proceeds from disposition of property, plant and equipment | 5,752 | 56,079 |
Proceeds from sale of business | 1,730 | 29,457 |
Expenditures for major repairs | (3,441) | (1,039) |
Investments redeemed | 1,499 | 5,195 |
Changes in CHS Capital notes receivable, net | (126,865) | (69,227) |
Financing extended to customers | (3,928) | (15,778) |
Payments from customer financing | 71,137 | 16,520 |
Other investing activities, net | 4,090 | 1,847 |
Net cash provided by (used in) investing activities | (154,776) | (62,770) |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 4,429,276 | 8,006,980 |
Payments on lines of credit, long-term borrowings and capital lease obligations | (4,317,479) | (7,654,661) |
Preferred stock dividends paid | (42,167) | (42,167) |
Redemptions of equities | (24,072) | (3,682) |
Other financing activities, net | 3,503 | (21,257) |
Net cash provided by (used in) financing activities | 49,061 | 285,213 |
Effect of exchange rate changes on cash and cash equivalents | (1,535) | 2,236 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (202,048) | 71,139 |
Cash and cash equivalents and restricted cash at beginning of period | 543,940 | 272,272 |
Cash and cash equivalents and restricted cash at end of period | $ 341,892 | $ 343,411 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Nov. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The unaudited Consolidated Balance Sheet as of November 30, 2018 , the Consolidated Statements of Operations for the three months ended November 30, 2018 , and 2017 , the Consolidated Statements of Comprehensive Income for the three months ended November 30, 2018 , and 2017 , and the Consolidated Statements of Cash Flows for the three months ended November 30, 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, 2018 , 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"). As described in Note 2, Restatement of Previously Issued Financial Information , the consolidated financial statements for the three months ended November 30, 2017 , have been restated to reflect the correction of misstatements. We have also restated all relevant amounts impacted within the notes to the consolidated financial statements. 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. See Note 12, 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, 2018 , included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC"). Significant Accounting Policies The following significant accounting policies have been updated since our Annual Report on Form 10-K for the year ended August 31, 2018, as a result of the adoption of certain new accounting pronouncements effective for us during the three months ended November 30, 2018. Restricted Cash Restricted cash is included in our Consolidated Balance Sheets within other current assets (current portion) and other assets (non-current portion), as appropriate, and primarily relates to customer deposits for futures and option contracts associated with regulated commodities held in separate accounts as required under federal and other regulations. Pursuant to the requirements of the Commodity Exchange Act, such funds must be carried in separate accounts that are designated as segregated customer accounts, as applicable. Restricted cash also includes funds held in escrow pursuant to applicable regulations limiting their usage. The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within our Consolidated Balance Sheets that aggregates to the amount presented in our Consolidated Statements of Cash Flows. During the three months ended November 30, 2018, we updated the presentation of our Consolidated Statements of Cash Flows to include restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on our Consolidated Statements of Cash Flows. November 30, 2018 August 31, 2018 November 30, 2017 August 31, 2017 (Dollars in thousands) Cash and cash equivalents $ 266,152 $ 450,617 $ 249,767 $ 181,379 Restricted cash included in other current assets 72,687 90,193 88,525 83,561 Restricted cash included in other assets 3,053 3,130 5,119 7,332 Total Cash and cash equivalents and restricted cash $ 341,892 $ 543,940 $ 343,411 $ 272,272 Investments As described in the "Recent Accounting Pronouncements" section below, we adopted Accounting Standards Update ("ASU") No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which was effective for us September 1, 2018. As a result, all equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value with changes therein reflected in net income. We have elected to utilize the measurement alternative for equity investments that do not have readily determinable fair values and measure these investments at cost less impairment plus or minus observable price changes in orderly transactions. Investments in other cooperatives are recorded in a manner similar to equity investments without readily determinable fair values, plus patronage dividends received in the form of capital stock and other equities. Patronage dividends are recorded as a reduction to cost of goods sold at the time qualified written notices of allocation are received. Investments in debt and equity instruments are carried at amounts that approximate fair values. Revenue Recognition We provide a wide variety of products and services, ranging from agricultural inputs such as fuels, farm supplies and crop nutrients, to agricultural outputs that include grain and oilseed, processed grains and oilseeds and food products, and ethanol production and marketing. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which generally occurs when control of the goods has transferred to the customer. For the majority of our contracts with customers, control transfers to customers at a point-in-time when the goods/services have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. In limited arrangements, control transfers over time as the customer simultaneously receives and consumes the benefits of the service as we complete the performance obligation(s). Revenue is recognized at the transaction price that we expect to be entitled to in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties. We follow a policy of recognizing revenue at the point-in-time or over the period of time we satisfy our performance obligation by transferring control over a product or service to a customer in accordance with the underlying contract. For physically settled derivative sales contracts that are outside the scope of the revenue guidance, we recognize revenue when control of the inventory is transferred within the meaning of Accounting Standards Codification ("ASC") Topic 606. Recent Accounting Pronouncements Adopted In March 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("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 Consolidated Statements of Operations. This ASU provides that the service cost component should 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 (such as interest, expected return on plan assets, prior service cost amortization and actuarial gain/loss amortization) are required to be presented in the Consolidated Statements of Operations separately outside of operating income. Additionally, only service cost may be capitalized in assets. This ASU was 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 Consolidated Statements of Operations has been applied retrospectively, and the guidance regarding the capitalization of the service cost component in assets has been applied prospectively. The adoption of this guidance had no impact on previously reported income (loss) before income taxes or net income attributable to CHS; however, non-service cost components of net periodic benefit costs in prior periods have been reclassified from operating expenses and are now reported outside of operating income within other (income) loss. Specifically, the retrospective adjustments recorded as a result of the adoption of this guidance resulted in an increase to cost of goods sold and marketing, general and administrative expense of $0.3 million and $0.8 million , respectively, and a corresponding increase of $1.2 million to other income during the three months ended November 30, 2017. There was no impact to previously reported income before income taxes and net income attributable to CHS as a result of adoption. The adoption of this amended guidance did not 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 was effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. The guidance has been applied prospectively. The adoption of this amended guidance did not 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 requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Consolidated Statements of Cash Flows as well as disclosure about the nature of restrictions on cash, cash equivalents and amounts generally described as restricted cash. Additionally, the guidance requires disclosure of the total amount of cash, cash equivalents and restricted cash for each comparative period for which a Consolidated Balance Sheet is presented. This ASU was effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. The amendments in this ASU were applied retrospectively to all periods presented. Refer to the additional disclosures pertaining to restricted cash within the Restricted Cash significant accounting policy above. The adoption of this amended guidance did not have a material impact on our Consolidated Statements of Cash Flows. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This guidance eliminates the previous cost method of accounting for certain equity securities that did not have readily determinable fair values. This guidance also simplifies the impairment assessment and allows for a fair value measurement alternative for equity investments without readily determinable fair values and includes presentation and disclosure changes. This ASU was effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year and was applied following a prospective basis. We have elected to utilize the measurement alternative for equity investments that do not have readily determinable fair values and measure these investments at cost less impairment plus or minus observable price changes in orderly transactions. As a result of the adoption of this amended guidance, we reclassified approximately $4.7 million from accumulated other comprehensive loss to the opening balance of capital reserves within our Consolidated Balance Sheet as of September 1, 2018, which did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to reduce existing diversity in practice in how certain cash receipts and payments are presented and classified in the Consolidated Statements of Cash Flows. This ASU was 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 did not have a material impact on our Consolidated Statements of Cash Flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments within this ASU, as well as within the additional clarifying ASUs issued by the FASB, provide a single comprehensive model to be used to determine the measurement of revenue and timing of recognition for revenue arising from contracts with customers. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 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. This ASU was effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year, and we elected to apply the modified retrospective method of adoption to all contracts as of the date of initial application. The majority of our revenues are attributable to forward commodity sales contracts, which are considered to be physically settled derivatives under ASC 815, Derivatives and Hedging (Topic 815). Revenues arising from derivative contracts accounted for under ASC 815 are specifically outside the scope of ASC Topic 606 and therefore not subject to the provisions of the new revenue recognition guidance. As such, the impact of adoption of the new revenue guidance has only been assessed for our revenue contracts that are not accounted for as derivative arrangements. The primary impact of adoption was changes to the timing of revenue recognition for certain revenue streams that had an immaterial impact. Following the modified retrospective method of adoption, we determined the cumulative effect of adoption for all contracts with customers that had not been completed as of the adoption date was less than $1.0 million . Additionally, the impact of applying ASC Topic 606 compared to previous guidance during the three months ended November 30, 2018, was an overall decrease to revenues of $13.1 million . Our revenue recognition accounting policy and additional information related to our revenue streams and related performance obligations required to be satisfied in order to recognize revenue can be found within Note 3, Revenues. Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU reduces the complexity of accounting for implementation, setup, and other upfront costs incurred in a cloud computing service arrangement that is hosted by a vendor. This ASU aligns the accounting for implementation costs of hosting arrangements, irrespective of whether the arrangements convey a license to the hosted software. This ASU permits either a prospective or retrospective transition approach. This ASU is effective for us beginning September 1, 2020, for our fiscal year 2021 and for interim periods within that fiscal year, with early adoption permitted. The adoption of this amended guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General . This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year and (b) the effects of a one-percentage-point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for postretirement health care benefits. The new disclosures include the interest crediting rates for cash balance plans and an explanation of significant gains and losses related to changes in benefit obligations. This ASU is effective for us beginning September 1, 2021, for our fiscal year 2022 and for interim periods within that fiscal year, with early adoption permitted. The adoption of this amended guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying and adding certain disclosures. Specifically, the guidance removes the requirement to disclose the amount and reasons for any transfers between Level 1 and Level 2 of the fair value hierarchy and removes the requirement to disclose a description of the valuation processes used to value Level 3 fair value measurements. The guidance also requires additional disclosures surrounding Level 3 changes in unrealized gains/losses included in other comprehensive income as well as the range and weighted average significant unobservable inputs calculation. This ASU is effective for us beginning September 1, 2020, for our fiscal year 2021 and for interim periods within that fiscal year. Early adoption is permitted. We elected to remove the disclosures permitted by ASU No. 2018-13 during the fourth quarter of fiscal 2018 but have not early adopted the new required additional disclosures, which is permitted by the guidance. The adoption of this amended guidance is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments in this ASU introduce a new approach, based on expected losses, to estimate credit losses on certain types of financial instruments. This ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses associated with most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures. Entities are required to apply the provisions of this ASU 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 within ASC 840 - Leases . The amendments within this ASU, as well as within additional clarifying ASUs issued by the FASB, 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. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , which amends ASU No. 2016-02, Leases . This ASU is effective for us beginning September 1, 2019, for our fiscal year 2020 and for interim periods within that fiscal year. We have initiated our assessment of the new lease standard, including the utilization of surveys to gather more information about existing leases and the implementation of a new lease software to improve the collection, maintenance and aggregation of lease data necessary for the expanded reporting and disclosure requirements under the new lease standard. It is expected that the primary impact upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases as right of use assets and liabilities on our Consolidated Balance Sheets. This will result in a significant increase in assets and liabilities recorded on our Consolidated Balance Sheets. Although we expect the new lease guidance will have a material impact on our Consolidated Balance Sheets, we are continuing to evaluate the practical expedient guidance provisions available and the extent of potential impacts on our consolidated financial statements, processes and internal controls. |
Restatement of Previously Issue
Restatement of Previously Issued Financial Information (Notes) | 3 Months Ended |
Nov. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Financial Information | Restatement of Previously Issued Financial Information The consolidated financial statements for the three months ended November 30, 2017, have been restated to reflect the correction of misstatements. We have also restated all amounts impacted within the notes to the consolidated financial statements. A description of the adjustments and their impact on the previously issued financial information are included below. Descriptions of Restatement Adjustments Restatement Background During the preparation of our Annual Report on Form 10-K for the year ended August 31, 2018, we noted potentially excessive valuations in the net derivative asset valuations relating to certain rail freight contracts purchased in connection with our North American grain marketing operations. An investigation concluded that the rail freight misstatements included in our consolidated financial statements were due to intentional misconduct by a former employee in our rail freight trading operations, as well as due to rail freight contracts and certain non-rail contracts not meeting the technical accounting requirements to qualify as derivative financial instruments. The misconduct consisted of the former employee manipulating the mark-to-market valuation of rail cars that were the subject of rail freight purchase contracts and manipulating the quantity of rail cars included in the monthly mark-to-market valuation. In addition, the investigation revealed intentional misstatements were made by the former employee to our independent registered public accounting firm in connection with its audit of our consolidated financial statements for the fiscal year ended August 31, 2017. During the course of, and as a result of, the investigation, we terminated the former employee and have taken additional personnel actions. As described in additional detail in the Explanatory Note in our Annual Report on Form 10-K for the year ended August 31, 2018, the Company restated its audited consolidated financial statements for the fiscal years ended August 31, 2017 and 2016, and our unaudited consolidated financial statements for the quarterly periods ended November 30, 2017 and 2016, February 28, 2018 and 2017, and May 31, 2018 and 2017. As a result of the misstatements, we restated our interim consolidated financial statements for the three months ended November 30, 2017 . In addition to the adjustments related to freight derivatives and related misstatements, we also made adjustments related to certain intercompany balances and other historical misstatements unrelated to the freight derivatives and related misstatements. Consolidated financial statement adjustment tables The following tables present the impacts of the restatement adjustments to our unaudited Consolidated Statement of Operations, unaudited Consolidated Statement of Comprehensive Income and unaudited Consolidated Statement of Cash Flows for the three months ended November 30, 2017 . The restatement references identified in the following tables directly correlate to the restatement adjustments detailed below. The categories of restatement adjustments and their impact on previously reported consolidated financial statements are described below. (a) Freight derivatives and related misstatements - Corrections for freight derivatives and related misstatements were driven by the misstatement of amounts associated with both the value and quantity of rail freight contracts, as well as due to rail and certain non-rail freight contracts not meeting the technical accounting requirements to qualify as derivative financial instruments. In addition to the elimination of the underlying freight derivative assets and liabilities and related impacts on revenues and cost of goods sold, additional adjustments were recorded to account for prepaid freight capacity balances in relevant periods. Additional details related to the impact of the freight derivatives and related misstatements and their impact on each period are discussed in restatement reference (a). (b) Intercompany misstatements - As a result of the work performed in relation to the freight misstatement, additional misstatements related to the incorrect elimination of intercompany balances were also identified and corrected within the consolidated financial statements. Certain of these intercompany misstatements resulted in a misstatement of various financial statement line items; however, the intercompany misstatements did not result in a material misstatement of income (loss) before income taxes or net income (loss). Additional details related to the impact of the intercompany misstatements and their impact on each period are discussed in restatement reference (b). (c) Other misstatements - We made adjustments for other previously identified misstatements unrelated to the freight derivatives and related misstatements that were not material, individually or in the aggregate, to our consolidated financial statements. These other misstatements related primarily to certain misclassifications, adjustments to revenues and cost of goods sold, and adjustments to various income tax and indirect tax accrual accounts. Additional details related to the impact of the other misstatements and their impact on each period are discussed in restatement reference (c). CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) For the Three Months Ended November 30, 2017 As Previously Reported Restatement Adjustments As Restated Accounting Changes* As Presented Restatement References (Dollars in thousands) Revenues $ 8,048,889 $ (17,005 ) $ 8,031,884 $ — $ 8,031,884 a, b, c Cost of goods sold 7,735,627 (24,570 ) 7,711,057 335 7,711,392 a, b, c Gross profit 313,262 7,565 320,827 (335 ) 320,492 Marketing, general and administrative 140,168 (668 ) 139,500 846 140,346 c Reserve and impairment charges (recoveries), net (3,787 ) — (3,787 ) — (3,787 ) Operating earnings (loss) 176,881 8,233 185,114 (1,181 ) 183,933 Interest expense 40,702 — 40,702 — 40,702 Other (income) loss (25,014 ) — (25,014 ) (1,181 ) (26,195 ) Equity (income) loss from investments (38,362 ) — (38,362 ) — (38,362 ) Income (loss) before income taxes 199,555 8,233 207,788 — 207,788 Income tax expense (benefit) 19,936 670 20,606 — 20,606 a Net income (loss) 179,619 7,563 187,182 — 187,182 Net income (loss) attributable to noncontrolling interests (464 ) — (464 ) — (464 ) Net income (loss) attributable to CHS Inc. $ 180,083 $ 7,563 $ 187,646 $ — $ 187,646 * Previously reported amounts have been revised to reflect the impact of adopting ASU 2017-17 retrospectively during the first quarter of fiscal 2019. Refer to details related to the adoption of new ASUs within Note 1, Basis of Presentation and Significant Accounting Policies . Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.5 million reduction of income before income taxes and a $1.2 million reduction of net income. These adjustments related to a $0.5 million increase of cost of goods sold and a $0.7 million increase of income tax expense related to the tax effect of the freight derivatives and related misstatements. Intercompany misstatements (b) The correction of intercompany misstatements had no impact on income (loss) before income taxes or net income (loss); however, the correction resulted in an $11.4 million decrease of both revenues and cost of goods sold due to different practices of eliminating intercompany sales between CHS's businesses that existed in previous periods. Other misstatements (c) The correction of other misstatements resulted in an $8.8 million increase of income before income taxes and net income. The $8.8 million increase of income before income taxes relates primarily to a $6.2 million decrease of cost of goods sold related to the valuation of crack spread derivatives and a $2.6 million decrease in costs related to postretirement benefit plan activity that resulted from a timing difference associated with recording certain benefit plan expenses (included in cost of goods sold and marketing, general and administrative expenses). Additionally, certain misclassification and offsetting adjustments were made between line items included in the Consolidated Statements of Operations primarily due to the application of differing accounting policies between businesses. These misclassification adjustments resulted in a $5.7 million decrease of revenues and cost of goods sold. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the Three Months Ended November 30, 2017 As Previously Reported Restatement Adjustments As Restated Restatement References (Dollars in thousands) Net income (loss) $ 179,619 $ 7,563 $ 187,182 a, c Other comprehensive income (loss), net of tax: Postretirement benefit plan activity 4,196 (2,602 ) 1,594 c Unrealized net gain (loss) on available for sale investments 3,640 — 3,640 Cash flow hedges (4 ) — (4 ) Foreign currency translation adjustment (2,607 ) 396 (2,211 ) a Other comprehensive income (loss), net of tax 5,225 (2,206 ) 3,019 Comprehensive income 184,844 5,357 190,201 Less comprehensive income attributable to noncontrolling interests (464 ) — (464 ) Comprehensive income attributable to CHS Inc. $ 185,308 $ 5,357 $ 190,665 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $1.2 million reduction of net income. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the three months ended November 30, 2017, above. The adjustment related to foreign currency translation is attributable to the foreign currency impact associated with goodwill that was impaired during fiscal 2015. Intercompany misstatements (b) None Other misstatements (c) The correction of other misstatements resulted in an $8.8 million increase of net income. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the three months ended November 30, 2017, above. The adjustment related to postretirement benefit plan activity is attributable to a timing difference associated with recording certain benefit plan expenses. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended November 30, 2017 As Previously Reported Restatement Adjustments As Restated Accounting Changes* As Presented Restatement References (Dollars in thousands) Cash flows from operating activities: Net income (loss) $ 179,619 $ 7,563 $ 187,182 $ — $ 187,182 a, c Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 120,148 — 120,148 — 120,148 Amortization of deferred major repair costs 16,418 — 16,418 — 16,418 Equity (income) loss from investments (38,362 ) — (38,362 ) — (38,362 ) Distributions from equity investments 12,514 — 12,514 — 12,514 Provision for doubtful accounts (3,601 ) — (3,601 ) — (3,601 ) Deferred taxes 15,044 1,302 16,346 — 16,346 a Other, net 2,976 (2,601 ) 375 — 375 c Changes in operating assets and liabilities, net of acquisitions: Receivables (80,637 ) 23,937 (56,700 ) — (56,700 ) c Inventories (472,180 ) (40,843 ) (513,023 ) — (513,023 ) c Derivative assets 67,365 (3,439 ) 63,926 — 63,926 a, c Margin and related deposits (893 ) — (893 ) — (893 ) Supplier advance payments (292,905 ) (631 ) (293,536 ) — (293,536 ) b Other current assets and other assets 2,689 883 3,572 2,751 6,323 a Customer margin deposits and credit balances (18,045 ) — (18,045 ) — (18,045 ) Customer advance payments 1,278 (11,529 ) (10,251 ) — (10,251 ) b, c Accounts payable and accrued expenses 441,071 12,148 453,219 — 453,219 a, c Derivative liabilities (97,329 ) (2,627 ) (99,956 ) — (99,956 ) a, c Other liabilities 4,376 — 4,376 — 4,376 Net cash provided by (used in) operating activities (140,454 ) (15,837 ) (156,291 ) 2,751 (153,540 ) Cash flows from investing activities: Acquisition of property, plant and equipment (85,824 ) — (85,824 ) — (85,824 ) Proceeds from disposition of property, plant and equipment 56,079 — 56,079 — 56,079 Proceeds from sale of business 29,457 — 29,457 — 29,457 Expenditures for major repairs (1,039 ) — (1,039 ) — (1,039 ) Investments redeemed 5,195 — 5,195 — 5,195 Changes in CHS Capital notes receivable, net (69,227 ) — (69,227 ) — (69,227 ) Financing extended to customers (15,778 ) — (15,778 ) — (15,778 ) Payments from customer financing 16,520 — 16,520 — 16,520 Other investing activities, net 1,847 — 1,847 — 1,847 Net cash provided by (used in) investing activities (62,770 ) — (62,770 ) — (62,770 ) Cash flows from financing activities: Proceeds from lines of credit and long-term borrowings 8,006,980 — 8,006,980 — 8,006,980 Payments on lines of credit, long-term borrowings and capital lease obligations (7,657,713 ) 3,052 (7,654,661 ) — (7,654,661 ) c Preferred stock dividends paid (42,167 ) — (42,167 ) — (42,167 ) Redemptions of equities (3,682 ) — (3,682 ) — (3,682 ) Other financing activities, net (31,680 ) 10,423 (21,257 ) — (21,257 ) c Net cash provided by (used in) financing activities 271,738 13,475 285,213 — 285,213 Effect of exchange rate changes on cash and cash equivalents 2,236 — 2,236 — 2,236 Net increase (decrease) in cash and cash equivalents and restricted cash 70,750 (2,362 ) 68,388 2,751 71,139 b Cash and cash equivalents and restricted cash at beginning of period 181,379 — $ 181,379 90,893 272,272 Cash and cash equivalents and restricted cash at end of period $ 252,129 $ (2,362 ) $ 249,767 $ 93,644 $ 343,411 * Previously reported amounts have been revised to reflect the impact of adopting ASU 2016-18 retrospectively during the first quarter of fiscal 2019. Refer to details related to the adoption of new ASUs within Note 1, Basis of Presentation and Significant Accounting Policies . Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $1.2 million reduction of net income for the three months ended November 30, 2017. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the three months ended November 30, 2017, above. The impact of the adjustments to the Consolidated Balance Sheets as of August 31, 2017, and November 30, 2017, resulted in certain misclassifications of less than $3.0 million between operating activity line items in the Consolidated Statements of Cash Flows; however, none of the freight derivatives and related misstatements impacted the classifications between operating, investing or financing activities. Intercompany misstatements (b) The correction of intercompany misstatements did not impact net income for the three months ended November 30, 2017; however, the impact of adjustments to the Consolidated Balance Sheets as of August 31, 2017, and November 30, 2017, resulted in certain misclassification adjustments of less than $3.0 million between line items in the Consolidated Statements of Cash Flows. None of the intercompany misstatements impacted the classifications between operating, investing or financing activities within the Consolidated Statements of Cash Flows; however, a timing difference related to the application of supplier advance payments resulted in a $2.4 million decrease of cash as of November 30, 2017. Other misstatements (c) The correction of other misstatements resulted in an $8.8 million increase of net income for the three months ended November 30, 2017. Refer to further details of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the three months ended November 30, 2017, above. The impact of the adjustments to the Consolidated Balance Sheets as of August 31, 2017, and November 30, 2017, resulted in certain misclassification adjustments between line items in the Consolidated Statements of Cash Flows. As a result, two misclassification adjustments were made between operating and financing activities, including a $3.1 million reduction of notes payable resulting from a duplicative entry and the misclassification of a $10.4 million negative cash balance associated with a timing difference for the application of in-transit cash. In addition, various misclassification adjustments were made between operating activity lines, the most significant of which related to (1) a $24.1 million decrease of inventory and increase in accounts receivable as of August 31, 2017, due to a timing difference related to the settlement of a single ocean vessel and (2) the $18.3 million net impact associated with the decrease of inventory and increase of accounts payable that resulted from the misclassification adjustment for certain items previously included within a contra-inventory account to accounts payable as of August 31, 2017, and November 30, 2017. |
Receivables
Receivables | 3 Months Ended |
Nov. 30, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables November 30, 2018 August 31, 2018 (Dollars in thousands) Trade accounts receivable $ 1,743,258 $ 1,578,764 CHS Capital notes receivable 683,407 569,379 Other 486,398 534,071 2,913,063 2,682,214 Less: allowances and reserves 226,968 221,813 Total receivables $ 2,686,095 $ 2,460,401 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 that 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 as well as in 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 $211.3 million and $203.0 million at November 30, 2018 , and August 31, 2018 , respectively. The long-term notes receivable are included in Other assets on our Consolidated Balance Sheets. As of November 30, 2018 , and August 31, 2018 , the commercial notes represented 52% and 40% , respectively, and the producer notes represented 48% and 60% , 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 November 30, 2018 , CHS Capital's customers had additional available credit of $567.4 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. Other Receivables Other receivables are comprised of certain other amounts recorded in the normal course of business, including receivables related to value-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, though our ability to be paid depends on the crops actually produced. The financing is 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. |
Revenues (Notes)
Revenues (Notes) | 3 Months Ended |
Nov. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Adoption of New Revenue Guidance As described in Note 1, Basis of Presentation and Significant Accounting Policies , we adopted the guidance within ASU 2014-09 as of September 1, 2018, using the modified retrospective transition approach. Consistent with other companies that actively trade commodities, a majority of our revenues are attributable to forward commodity sales contracts that are considered to be physically settled derivatives under ASC 815, Derivatives and Hedging (ASC Topic 815) and therefore fall outside the scope of ASC Topic 606. As a result, these revenues are not subject to the provisions of the new revenue guidance and the impact of adoption is limited to our revenue streams that fall within the scope of the new revenue guidance. The majority of our revenue streams that fall within the scope of the new revenue guidance are recognized at a point-in-time; however, the adoption of ASU 2014-09 resulted in a minimal number of changes to the timing of revenue recognition for certain revenue streams. Under the modified retrospective method of adoption, we determined the cumulative effect of adoption for all contracts with customers that had not been completed as of the adoption date and recognized an adjustment of less than $1.0 million to the opening capital reserves balance within the Consolidated Balance Sheet as of September 1, 2018. Additionally, the impact of applying ASC Topic 606 compared to previous guidance during the three months ended November 30, 2018, was an overall decrease to revenues of $13.1 million . The change in accounting for revenue recognition under ASU 2014-09 did not have a material impact on our Consolidated Statement of Operations for the three months ended November 30, 2018, or Consolidated Balance Sheet as of November 30, 2018. Revenue Recognition Accounting Policy and Performance Obligations We provide a wide variety of products and services, from agricultural inputs such as fuels, farm supplies and crop nutrients, to agricultural outputs that include grain and oilseed, processed grains and oilseeds and food products, and ethanol production and marketing. We primarily conduct our operations and derive revenues within our Energy and Ag businesses. Our Energy business derives its revenues through refining, wholesaling and retailing of petroleum products. Our Ag business derives its revenues through the origination and marketing of grain, including service activities conducted at export terminals; through wholesale sales of crop nutrients and processed sunflowers; from sales of soybean meal, soybean refined oil and soyflour products; through the production and marketing of renewable fuels; and through retail sales of petroleum and agronomy products, and feed and farm supplies. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which generally occurs when control of the goods has transferred to customers. For the majority of our contracts with customers, control transfers to customers at a point-in-time when goods/services have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. In limited arrangements, control transfers over time as the customer simultaneously receives and consumes the benefits of the service as we complete our performance obligation(s). Revenue is recognized at the transaction price that we expect to be entitled to in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties. We follow a policy of recognizing revenue at the point-in-time or over the period of time that we satisfy our performance obligation by transferring control over a product or service to a customer in accordance with the underlying contract. For physically settled derivative sales contracts that are outside the scope of the revenue guidance, we recognize revenue when control of the inventory is transferred within the meaning of ASC Topic 606. The amount of revenue recognized during the three months ended November 30, 2018, for performance obligations that were fully satisfied in previous periods was not material. Shipping and Handling Costs Shipping and handling amounts billed to a customer as part of a sales transaction are included in revenues, and the related costs are included in cost of goods sold. Shipping and handling is treated as a fulfillment activity rather than a promised service, and therefore is not considered a separate performance obligation. Taxes Collected from Customers and Remitted to Governmental Authorities Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Contract Costs Commissions related to contracts with a duration of less than one year are expensed as incurred. We recognize incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets we otherwise would have recognized is one year or less. Disaggregation of Revenues The following table presents revenues recognized under ASC Topic 606 disaggregated by reportable segment, as well as the amount of revenues recognized under ASC Topic 815 and other applicable accounting guidance for the three months ended November 30, 2018. Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 840, Leases and ASC Topic 470, Debt that fall outside the scope of ASC Topic 606. ASC 606 ASC 815 Other Guidance Total Revenues For the Three Months Ended November 30, 2018: (Dollars in thousands) Energy $ 1,940,190 $ 221,098 $ — $ 2,161,288 Ag 1,355,826 4,913,428 36,143 6,305,397 Corporate and Other 5,234 — 12,370 17,604 Total revenues $ 3,301,250 $ 5,134,526 $ 48,513 $ 8,484,289 Less than 1% of revenues accounted for under ASC Topic 606 included within the table above are recorded over time; these revenues are primarily related to service contracts. Our Energy segment derives its revenues through refining, wholesaling and retailing of petroleum products. Our Energy segment produces and sells (primarily wholesale) gasoline, diesel fuel, propane, asphalt, lubricants and other related products and provides transportation services. We are the nation’s largest cooperative energy company, with operations that include petroleum refining and pipelines; the supply, marketing and distribution of refined fuels (gasoline, diesel fuel and other energy products); the blending, sale and distribution of lubricants; and the wholesale supply of propane and other natural gas liquids. For the majority of revenues arising from sales to Energy customers, we satisfy our performance obligation of providing energy products such as gasoline, diesel fuel, propane, asphalt, lubricants and other related products at the point-in-time that the finished petroleum product is delivered or made available to the wholesale or retail customer, at which point control is considered to have been transferred to the customer and revenue can be recognized, as there are no remaining performance obligations that we need to satisfy in order to be entitled to the agreed-upon transaction price as stated in the contract. For fixed and provisionally-priced derivative sales contracts that are accounted for under the provisions of the derivative accounting guidance and are outside the scope of the revenue recognition guidance, we recognize revenue when control of the inventory is transferred within the meaning of ASC 606. Our Ag segment derives its revenues through the origination and marketing of grain, including service activities conducted at export terminals; through wholesale sales of crop nutrients and processed sunflowers; from sales of soybean meal, soybean refined oil and soyflour products; through the production and marketing of renewable fuels; and through retail sales of petroleum and agronomy products, and feed and farm supplies. For the majority of revenues arising from sales to Ag customers, we satisfy our performance obligation of delivering a commodity or other agricultural end product to a customer at the point-in-time that the commodity or other end-product (wholesale grain, crop nutrients/agronomy products, soybean products, ethanol or country operations retail products) has been delivered or is made available to the customer, at which point control is considered to have been transferred to the customer and revenue can be recognized, as there are no remaining performance obligations that need to be satisfied in order to be entitled to the agreed-upon transaction price as stated in the contract. The amount of revenue recognized follows the contractually specified price, which may include freight or other contractually specified cost components. For fixed and provisionally-priced derivative sales contracts that are accounted for under the provisions of the derivative accounting guidance and are outside the scope of the revenue recognition guidance, we recognize revenue when control of the inventory is transferred within the meaning of ASC Topic 606. Corporate and Other primarily consists of our financing and hedging businesses, which are presented together due to the similar nature of their products and services as well as the relatively lower amount of revenues for those businesses compared to our Ag and Energy businesses. Prior to its sale on May 4, 2018, our insurance business was also included in Corporate and Other. Revenues arising from Corporate and Other are primarily comprised of revenues generated by our hedging and financing businesses. Revenues from our hedging business are primarily recognized at the point-in-time that the hedging transaction is completed after we have fully satisfied all performance obligations under the contract, and revenues arising from our financing business are recognized in accordance with ASC Topic 470, Debt, and fall outside the scope of ASC Topic 606. Contract Assets and Contract Liabilities Contract assets relate to unbilled amounts arising from goods that have already been transferred to the customer where the right to payment is not conditional upon the passage of time. This results in the recognition of an asset, as the amount of revenue recognized at a certain point in time exceeds the amount billed to the customer. Contract assets are recorded in accounts receivable within our Consolidated Balance Sheets and were immaterial as of November 30, 2018, and August 31, 2018. Contract liabilities relate to advance payments from customers for goods and services that we have yet to provide. Contract liabilities of $187.9 million and $177.9 million as of November 30, 2018, and August 31, 2018, respectively, are recorded within customer advance payments on our Consolidated Balance Sheets. For the three months ended November 30, 2018, we recognized revenues of $95.2 million , which were included in the customer advance payments balance at the beginning of the period. Practical expedients We applied ASC Topic 606 utilizing the following allowable exemptions or practical expedients: • Election to not disclose the unfulfilled performance obligation balance for contracts with an original duration of one year or less. • Recognition of the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would otherwise have been recognized is one year or less. • Election to present revenues net of sales taxes and other similar taxes. • Practical expedient to treat shipping and handling as a fulfillment activity rather than a promised service, resulting in the conclusion that shipping and handling is not a separate performance obligation. |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories November 30, 2018 August 31, 2018 (Dollars in thousands) Grain and oilseed $ 1,525,151 $ 1,298,522 Energy 680,807 715,161 Crop nutrients 325,189 246,326 Feed and farm supplies 522,490 391,906 Processed grain and oilseed 113,138 99,426 Other 17,674 17,308 Total inventories $ 3,184,449 $ 2,768,649 As of November 30, 2018 , we valued approximately 14% of inventories, primarily related to our Energy segment, using the lower of cost, determined on the LIFO method, or net realizable value ( 16% as of August 31, 2018 ). If the FIFO method of accounting had been used, inventories would have been higher than the reported amount by $115.6 million and $ 345.0 million as of November 30, 2018 , and August 31, 2018 , 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 | 3 Months Ended |
Nov. 30, 2018 | |
Investments [Abstract] | |
Investments | Investments November 30, 2018 August 31, 2018 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,775,989 $ 2,735,073 Ventura Foods, LLC 367,429 360,150 Ardent Mills, LLC 212,887 205,898 Other equity method investments 294,130 288,016 Cost method investments 124,101 122,788 Total investments $ 3,774,536 $ 3,711,925 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. CF Nitrogen 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 approximate 10% 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 November 30, 2018 , and 2017 , this amount was $40.9 million and $20.3 million , respectively. These amounts are included as equity income from investments in our Nitrogen Production segment. Ventura Foods and Ardent Mills We have a 50% interest in Ventura Foods, LLC ("Ventura Foods"), which is a joint venture that produces and distributes primarily vegetable oil-based products, and we have a 12% interest in Ardent Mills, LLC ("Ardent Mills"), which is a joint venture with Cargill Incorporated and ConAgra Foods, Inc. that combines the North American flour milling operations of the three parent companies. We account for Ventura Foods and Ardent Mills as equity method investments included in Corporate and Other. The following table provides aggregate summarized unaudited financial information for our equity method investments in CF Nitrogen, Ventura Foods and Ardent Mills for the three months ended November 30, 2018, and 2017: For the Three Months Ended 2018 2017 (Dollars in thousands) Net sales $ 2,241,539 $ 2,081,514 Gross profit 339,937 211,432 Net earnings 272,736 112,071 Earnings attributable to CHS Inc. 67,668 28,766 Our investments in other equity method investees are not significant in relation to our consolidated financial statements, either individually or in the aggregate. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 3 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Goodwill of $138.5 million is included in other assets on our Consolidated Balance Sheets as of November 30, 2018 , and August 31, 2018 . There were no changes in the net carrying amount of goodwill for the three months ended November 30, 2018 . 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: November 30, August 31, Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 40,815 $ (13,791 ) $ 27,024 $ 40,815 $ (13,082 ) $ 27,733 Trademarks and other intangible assets 6,536 (4,990 ) 1,546 6,536 (4,931 ) 1,605 Total intangible assets $ 47,351 $ (18,781 ) $ 28,570 $ 47,351 $ (18,013 ) $ 29,338 Total amortization expense for intangible assets during the three months ended November 30, 2018 , and 2017, was $0.8 million and $0.9 million , respectively. The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows: (Dollars in thousands) Year 1 $ 3,070 Year 2 2,991 Year 3 2,933 Year 4 2,751 Year 5 2,667 |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 3 Months Ended |
Nov. 30, 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 November 30, 2018 . The table below summarizes our notes payable as of November 30, 2018 , and August 31, 2018 . November 30, 2018 August 31, 2018 (Dollars in thousands) Notes payable $ 1,496,122 $ 1,437,264 CHS Capital notes payable 905,431 834,932 Total notes payable $ 2,401,553 $ 2,272,196 On November 30, 2018 , our primary line of credit was a five -year, unsecured revolving credit facility with a committed amount of $3.0 billion that expires in September 2020. The outstanding balance on this facility was $403.0 million at November 30, 2018 . There was no outstanding balance at August 31, 2018 . On June 28, 2018, we amended our existing receivables and loans securitization facility (the "Securitization Facility") with certain unaffiliated financial institutions (the "Purchasers"). Under the Securitization Facility, we and certain of our subsidiaries (the "Originators") 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 transfers the Receivables to the Purchasers, which is accounted for as a secured borrowing. During the period from July 2017 through the amendment of the Securitization Facility in June 2018, CHS accounted for Receivables sold under the Securitization Facility as a sale of financial assets pursuant to Accounting Standards Codification 860, Transfers and Servicing , and the Receivables sold were derecognized from our Consolidated Balance Sheets. We use the proceeds from the sale of Receivables under the Securitization Facility for general corporate purposes and settlements are made on a monthly basis. The Securitization Facility terminates on June 17, 2019, but may be extended. On September 4, 2018, we entered into a repurchase facility ("the Repurchase Facility") related to the Securitization Facility. Under the Repurchase Facility, we can borrow up to $150 million , collateralized by a subordinated note issued by Cofina in favor of the Originators and representing a portion of the outstanding balance of the Receivables sold by the Originators to Cofina under the Securitization Facility. As of November 30, 2018, the outstanding balance under the Repurchase Facility was $150 million . Interest expense for the three months ended November 30, 2018 , and 2017, was $38.9 million and $40.7 million , respectively, net of capitalized interest of $2.1 million and $1.8 million , respectively. |
Equities
Equities | 3 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
Equities | Equities Changes in Equities Changes in equities for the three months ended November 30, 2018 , and 2017 are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance, August 31, 2018 $ 3,837,580 $ 29,498 $ 742,378 $ 2,264,038 $ (199,915 ) $ 1,482,003 $ 9,446 $ 8,165,028 Reversal of prior year redemption estimates 24,072 — — — — — — 24,072 Redemptions of equities (22,004 ) (183 ) (1,885 ) — — — — (24,072 ) Preferred stock dividends — — — — — (84,334 ) — (84,334 ) Reclassification of unrealized (gain) loss on investments — — — — (4,706 ) 4,706 — — Other, net (409 ) — (26 ) — — 3,436 318 3,319 Net income (loss) — — — — — 347,504 (389 ) 347,115 Other comprehensive income (loss), net of tax — — — — 389 — — 389 Estimated 2019 cash patronage refunds — — — — — (89,344 ) — (89,344 ) Estimated 2019 equity redemptions (50,081 ) — — — — — — (50,081 ) Balance, November 30, 2018 $ 3,789,158 $ 29,315 $ 740,467 $ 2,264,038 $ (204,232 ) $ 1,663,971 $ 9,375 $ 8,292,092 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 $ (180,360 ) $ 1,267,808 $ 12,505 $ 7,705,640 Reversal of prior year redemption estimates 1,561 — — — — — — 1,561 Redemptions of equities (1,449 ) (53 ) (59 ) — — — — (1,561 ) Preferred stock dividends — — — — — (84,334 ) — (84,334 ) Other, net (1,498 ) (66 ) (344 ) — — 3,954 (2 ) 2,044 Net income (loss) — — — — — 187,646 (464 ) — 187,182 Other comprehensive income (loss), net of tax — — — — 3,019 — — 3,019 Estimated 2018 cash patronage refunds — — — — — (50,702 ) — (50,702 ) Estimated 2018 equity redemptions (19,901 ) — — — — — — (19,901 ) Balance, November 30, 2017 (As restated) $ 3,885,139 $ 29,717 $ 404,984 $ 2,264,038 $ (177,341 ) $ 1,324,372 $ 12,039 $ 7,742,948 * Certain amounts associated with Accumulated Other Comprehensive Loss, Capital Reserves and Noncontrolling Interests in the changes in equities table above were restated to reflect the impact of the misstatements associated with the restatement of previously issued financial statements. Note that the majority of the restatement adjustments within the changes in equities table above relate to the opening restatement adjustments to the August 31, 2017, balances. Additionally, the misstatements for activity in the changes in equities table above relates primarily to net income (loss) during the first quarter of fiscal 2018. Refer to further details included within Note 2, Restatement of Previously Issued Financial Information. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the three months ended November 30, 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, 2018, net of tax $ (140,335 ) $ 8,861 $ (5,882 ) $ (62,559 ) $ (199,915 ) Other comprehensive income (loss), before tax: Amounts before reclassifications 175 — (317 ) (25 ) (167 ) Amounts reclassified out 2,565 — (1,475 ) — 1,090 Total other comprehensive income (loss), before tax 2,740 — (1,792 ) (25 ) 923 Tax effect (639 ) — 485 (380 ) (534 ) Other comprehensive income (loss), net of tax 2,101 — (1,307 ) (405 ) 389 Reclassifications 416 (8,861 ) 983 2,756 (4,706 ) Balance as of November 30, 2018, net of tax $ (137,818 ) $ — $ (6,206 ) $ (60,208 ) $ (204,232 ) 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 $ (132,444 ) $ 10,041 $ (6,954 ) $ (51,003 ) $ (180,360 ) Other comprehensive income (loss), before tax: Amounts before reclassifications — 4,044 (435 ) (612 ) 2,997 Amounts reclassified out 4,214 — 429 (2,042 ) 2,601 Total other comprehensive income (loss), before tax 4,214 4,044 (6 ) (2,654 ) 5,598 Tax effect (2,620 ) (404 ) 2 443 (2,579 ) Other comprehensive income (loss), net of tax 1,594 3,640 (4 ) (2,211 ) 3,019 Balance as of November 30, 2017, net of tax $ (130,850 ) $ 13,681 $ (6,958 ) $ (53,214 ) $ (177,341 ) Amounts reclassified from accumulated other comprehensive income (loss) were related to pension and other postretirement benefits, cash flow hedges, available for sale investments and foreign currency translation adjustments. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts and are recorded as cost of goods sold and marketing, general and administrative expenses (see Note 11, Benefit Plans, for further information). Amortization related to gains or losses on cash flow hedges was recorded to interest expense. Gains or losses on the sale of available for sale investments are recorded to other income. Foreign currency translation reclassifications related to sales of businesses are recorded to other income. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted into law. The Tax Act provides for significant U.S. tax law changes and reduces the federal corporate statutory tax rate from 35% to 21% as of January 1, 2018. 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, our annual statutory federal corporate tax rate is 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"). We have not recorded a liability for the transition tax. The Tax Act initially repealed the Domestic Production Activities Deduction ("DPAD") and enacted the Deduction for Qualified Business Income of Pass-Thru Entities ("QBI Deduction"); however, the Consolidated Appropriations Act, 2018 (the "Appropriations Act") enacted into law on March 23, 2018, impacted these deductions. The Appropriations Act modifies the QBI Deduction under Section 199A of the Tax Act to reenact DPAD for agricultural and horticultural cooperatives as it existed prior to the enactment of the Tax Act, and it also modifies the QBI Deduction available to cooperative patrons as enacted by the Tax Act. As of August 31, 2018, the effects of the Tax Act were provisional in accordance with the SEC's Staff Accounting Bulletin 118. No adjustments were recorded for the three months ended November 30, 2018, associated with the remeasurement of deferred tax balances or the one-time transition tax, and in accordance with Staff Accounting Bulletin 118, the amounts are no longer provisional. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Nov. 30, 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 months ended November 30, 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 November 30 are as follows: (Dollars in thousands) Service cost $ 9,648 $ 9,919 $ 78 $ 137 $ 263 $ 236 Interest cost 7,099 6,002 187 178 274 227 Expected return on assets (11,242 ) (12,040 ) — — — — Prior service cost (credit) amortization 42 359 (19 ) 8 (139 ) (141 ) Actuarial (gain) loss amortization 3,087 4,518 — 15 (407 ) (306 ) Net periodic benefit cost $ 8,634 $ 8,758 $ 246 $ 338 $ (9 ) $ 16 The service cost component of defined benefit net periodic benefit cost is recorded in cost of goods sold and marketing, general and administrative expenses. The other components of net periodic benefit cost are reflected in other (income) loss. Employer Contributions Total contributions to be made during fiscal 2019 will depend primarily on market returns on the pension plan assets and minimum funding level requirements. During the three months ended November 30, 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 2019. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Nov. 30, 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 have been aggregated within Corporate and Other. 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 trade and associated 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, global trade disputes, and general political and economic conditions. While our revenues and operating results are derived from businesses and operations that 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 6, 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 months ended November 30, 2018 , and 2017 , is presented in the tables below. Energy Ag Nitrogen Production Corporate Reconciling Total For the Three Months Ended November 30, 2018: (Dollars in thousands) Revenues, including intersegment revenues $ 2,310,080 $ 6,308,714 $ — $ 19,067 $ (153,572 ) $ 8,484,289 Operating earnings (loss) 235,639 80,127 (5,128 ) 3,860 — 314,498 Interest expense 4,237 21,000 13,679 763 (771 ) 38,908 Other (income) loss (986 ) (22,400 ) (1,571 ) (948 ) 771 (25,134 ) Equity (income) loss from investments (73 ) 1,209 (40,915 ) (26,729 ) — (66,508 ) Income (loss) before income taxes $ 232,461 $ 80,318 $ 23,679 $ 30,774 $ — $ 367,232 Intersegment revenues $ (148,792 ) $ (3,317 ) $ — $ (1,463 ) $ 153,572 $ — Total assets at November 30, 2018 $ 4,100,190 $ 6,951,297 $ 2,796,154 $ 3,006,115 $ — $ 16,853,756 Energy Ag Nitrogen Production Corporate Reconciling Total For the Three Months Ended November 30, 2017: (As Restated) (Dollars in thousands) Revenues, including intersegment revenues $ 2,074,000 $ 6,081,027 $ — $ 18,775 $ (141,918 ) $ 8,031,884 Operating earnings (loss) 124,031 60,909 (3,135 ) 2,128 — 183,933 Interest expense 5,635 17,604 13,272 4,580 (389 ) 40,702 Other (income) loss (888 ) (23,586 ) (1,738 ) (372 ) 389 (26,195 ) Equity (income) loss from investments (1,152 ) (8,254 ) (20,335 ) (8,621 ) — (38,362 ) Income (loss) before income taxes $ 120,436 $ 75,145 $ 5,666 $ 6,541 $ — $ 207,788 Intersegment revenues $ (134,854 ) $ (4,033 ) $ — $ (3,031 ) $ 141,918 $ — |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Nov. 30, 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 forward contracts and, to a minor degree, may include foreign currency and interest rate swap contracts. These contracts are economic hedges of price risk, but we do not apply hedge accounting under ASC Topic 815, Derivatives and Hedging , except with respect to certain interest rate swap contracts that are accounted for as fair value hedges. Derivative instruments are recorded on our Consolidated Balance Sheets at fair value as described in Note 14, 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 . November 30, 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 derivatives $ 176,292 $ — $ 33,094 $ 143,198 Foreign exchange derivatives 15,877 — 6,581 9,296 Embedded derivative asset 20,166 — — 20,166 Total $ 212,335 $ — $ 39,675 $ 172,660 Derivative Liabilities: Commodity derivatives $ 276,899 $ 23,121 $ 33,094 $ 220,684 Foreign exchange derivatives 9,471 — 6,581 2,890 Total $ 286,370 $ 23,121 $ 39,675 $ 223,574 August 31, 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 derivatives $ 313,033 $ — $ 26,781 $ 286,252 Foreign exchange derivatives 15,401 — 8,703 6,698 Embedded derivative asset 23,595 — — 23,595 Total $ 352,029 $ — $ 35,484 $ 316,545 Derivative Liabilities: Commodity derivatives $ 421,054 $ 12,983 $ 26,781 $ 381,290 Foreign exchange derivatives 24,701 — 8,703 15,998 Total $ 445,755 $ 12,983 $ 35,484 $ 397,288 Derivative assets and liabilities with maturities of 12 months or less are recorded in derivative assets and derivative liabilities, respectively, on our Consolidated Balance Sheets. Derivative assets and liabilities with maturities greater than 12 months are recorded in other assets and other liabilities, respectively, on our Consolidated Balance Sheets. The amount of long-term derivative assets and liabilities, excluding derivatives accounted for as fair value hedges, recorded on our Consolidated Balance Sheet at November 30, 2018 , were $18.7 million and $16.1 million , respectively. The amount of long-term derivative assets and liabilities, excluding derivatives accounted for as fair value hedges, recorded on our Consolidated Balance Sheet at August 31, 2018, were $23.1 million and $7.9 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 months ended November 30, 2018 , and 2017 . For the Three Months Ended Location of Gain (Loss) 2018 (As Restated) 2017 (Dollars in thousands) Commodity derivatives Cost of goods sold $ (6,448 ) $ 32,917 Foreign exchange derivatives Cost of goods sold 16,056 6,766 Foreign exchange derivatives Marketing, general and administrative (832 ) (495 ) Interest rate derivatives Interest expense — (1 ) Embedded derivative Other income 1,571 1,738 Total $ 10,347 $ 40,925 Commodity Contracts As of November 30, 2018 , and August 31, 2018 , we had outstanding commodity futures and options 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. November 30, 2018 August 31, 2018 Long Short Long Short (Units in thousands) Grain and oilseed - bushels 560,843 837,696 715,866 929,873 Energy products - barrels 16,632 7,670 17,011 8,329 Processed grain and oilseed - tons 374 3,077 1,064 2,875 Crop nutrients - tons 44 91 11 76 Ocean freight - metric tons — — 227 45 Natural gas - MMBtu — — 610 — Foreign Exchange Contracts We are exposed to risk regarding foreign currency fluctuations even though a substantial amount of our 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 $762.4 million and $988.8 million as of November 30, 2018 , and August 31, 2018 , 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 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. The fair value of the embedded derivative asset recorded on our Consolidated Balance Sheet as of November 30, 2018 , was equal to $20.1 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 14, Fair Value Measurements, for more information on the valuation of the embedded derivative asset. Derivatives Designated as Cash Flow or Fair Value Hedging Strategies Fair Value Hedges As of November 30, 2018 , and August 31, 2018 , 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 interest rate swap instruments designated as fair value hedges and the line items on our Consolidated Balance Sheets in which they are recorded. Derivative Liabilities Balance Sheet Location November 30, 2018 August 31, 2018 (Dollars in thousands) Derivative liabilities $ 687 $ 771 Other liabilities 9,720 8,681 Total $ 10,407 $ 9,452 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 months ended November 30, 2018 , and 2017 . For the Three Months Ended November 30, Gain (Loss) on Fair Value Hedging Relationships: Location of Gain (Loss) 2018 2017 (Dollars in thousands) Interest rate swaps Interest expense $ (955 ) $ (8,317 ) Hedged item Interest expense 955 8,317 Total $ — $ — The following table provides the location and carrying amount of hedged liabilities in our Consolidated Balance Sheets as of November 30, 2018 , and August 31, 2018 . November 30, 2018 August 31, 2018 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 $ 484,593 $ 10,407 $ 485,548 $ 9,452 Cash Flow Hedges In the fourth quarter of fiscal 2018, our Energy segment began designating certain of its pay-fixed, receive-variable, cash-settled swaps as cash flow hedges of future crude oil purchases. We also began designating certain pay-variable, receive-fixed, cash-settled swaps as cash flow hedges of future refined product sales. These hedging instruments and the related hedged items are exposed to significant market price risk and potential volatility. As part of our risk management strategy, we look to hedge a portion of our expected future crude oil needs and the resulting refined product output based on prevailing futures prices, management's expectations about future commodity price changes and our risk appetite. As of November 30, 2018 , and August 31, 2018, the aggregate notional amount of cash flow hedges was 5.4 million and 1.1 million barrels, respectively. The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the line items on our Consolidated Balance Sheets in which they are recorded. Derivative Assets Derivative Liabilities Balance Sheet Location November 30, 2018 August 31, 2018 Balance Sheet Location November 30, 2018 August 31, 2018 (Dollars in thousands) (Dollars in thousands) Derivative assets $ 9,336 $ 812 Derivative liabilities $ 11,622 $ 634 The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three months ended November 30, 2018, and 2017 : For the Three Months Ended 2018 2017 (Dollars in thousands) Commodity derivatives $ (2,463 ) $ — The following table presents the pretax gains (losses) relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Consolidated Statements of Operations for the three months ended November 30, 2018, and 2017 : For the Three Months Ended Location of Gain (Loss) 2018 2017 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 1,900 $ — |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 30, 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 November 30, 2018 , and August 31, 2018 , are as follows: November 30, 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 derivatives $ 27,029 $ 158,600 $ — $ 185,629 Foreign currency derivatives — 15,877 — 15,877 Deferred compensation assets 37,713 — — 37,713 Embedded derivative asset — 20,166 — 20,166 Other assets 5,767 — — 5,767 Total $ 70,509 $ 194,643 $ — $ 265,152 Liabilities: Commodity derivatives $ 40,398 $ 248,122 $ — $ 288,520 Foreign currency derivatives — 9,471 — 9,471 Interest rate swap derivatives — 10,407 — 10,407 Total $ 40,398 $ 268,000 $ — $ 308,398 August 31, 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 derivatives $ 54,487 $ 259,359 $ — $ 313,846 Foreign currency derivatives — 15,401 — 15,401 Deferred compensation assets 39,073 — — 39,073 Embedded derivative asset — 23,595 — 23,595 Other assets 5,334 — — 5,334 Total $ 98,894 $ 298,355 $ — $ 397,249 Liabilities: Commodity derivatives $ 31,778 $ 389,911 $ — $ 421,689 Foreign currency derivatives — 24,701 — 24,701 Interest rate swap derivatives — 9,452 — 9,452 Total $ 31,778 $ 424,064 $ — $ 455,842 Commodity 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, select 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 driven by local market supply and demand, and are generally based on 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 13, Derivative Financial Instruments and Hedging Activities, for additional information about interest rates swaps designated as fair value and cash flow hedges. Deferred compensation and other assets — Our deferred compensation investments, Rabbi Trust assets and available-for-sale investments in common stock of other companies are valued based on unadjusted quoted prices on active exchanges and are classified within Level 1. Changes in the fair values of these other assets are primarily recognized in our Consolidated Statements of Operations as a component of marketing, general and administrative expenses. Embedded derivative asset — 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 13, 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 ended November 30, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 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 November 30, 2018 , our bank covenants allowed maximum guarantees of $1.0 billion , of which $151.3 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 November 30, 2018 . Gain Contingency As of November 30, 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. Refer to Note 16, Subsequent Events, for details related to the gain contingency realized during the second quarter of fiscal 2019. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Nov. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As described in Note 15, Commitments and Contingencies , a gain contingency existed as of November 30, 2018, following the application of 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 gain contingency was resolved subsequent to November 30, 2018, and a gain of approximately $80.8 million will be recognized primarily as a reduction of cost of goods sold in the Consolidated Statement of Operations during the second quarter of fiscal 2019. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 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, 2018 , 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 March 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("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 Consolidated Statements of Operations. This ASU provides that the service cost component should 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 (such as interest, expected return on plan assets, prior service cost amortization and actuarial gain/loss amortization) are required to be presented in the Consolidated Statements of Operations separately outside of operating income. Additionally, only service cost may be capitalized in assets. This ASU was 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 Consolidated Statements of Operations has been applied retrospectively, and the guidance regarding the capitalization of the service cost component in assets has been applied prospectively. The adoption of this guidance had no impact on previously reported income (loss) before income taxes or net income attributable to CHS; however, non-service cost components of net periodic benefit costs in prior periods have been reclassified from operating expenses and are now reported outside of operating income within other (income) loss. Specifically, the retrospective adjustments recorded as a result of the adoption of this guidance resulted in an increase to cost of goods sold and marketing, general and administrative expense of $0.3 million and $0.8 million , respectively, and a corresponding increase of $1.2 million to other income during the three months ended November 30, 2017. There was no impact to previously reported income before income taxes and net income attributable to CHS as a result of adoption. The adoption of this amended guidance did not 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 was effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. The guidance has been applied prospectively. The adoption of this amended guidance did not 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 requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Consolidated Statements of Cash Flows as well as disclosure about the nature of restrictions on cash, cash equivalents and amounts generally described as restricted cash. Additionally, the guidance requires disclosure of the total amount of cash, cash equivalents and restricted cash for each comparative period for which a Consolidated Balance Sheet is presented. This ASU was effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year. The amendments in this ASU were applied retrospectively to all periods presented. Refer to the additional disclosures pertaining to restricted cash within the Restricted Cash significant accounting policy above. The adoption of this amended guidance did not have a material impact on our Consolidated Statements of Cash Flows. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This guidance eliminates the previous cost method of accounting for certain equity securities that did not have readily determinable fair values. This guidance also simplifies the impairment assessment and allows for a fair value measurement alternative for equity investments without readily determinable fair values and includes presentation and disclosure changes. This ASU was effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year and was applied following a prospective basis. We have elected to utilize the measurement alternative for equity investments that do not have readily determinable fair values and measure these investments at cost less impairment plus or minus observable price changes in orderly transactions. As a result of the adoption of this amended guidance, we reclassified approximately $4.7 million from accumulated other comprehensive loss to the opening balance of capital reserves within our Consolidated Balance Sheet as of September 1, 2018, which did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to reduce existing diversity in practice in how certain cash receipts and payments are presented and classified in the Consolidated Statements of Cash Flows. This ASU was 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 did not have a material impact on our Consolidated Statements of Cash Flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments within this ASU, as well as within the additional clarifying ASUs issued by the FASB, provide a single comprehensive model to be used to determine the measurement of revenue and timing of recognition for revenue arising from contracts with customers. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 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. This ASU was effective for us beginning September 1, 2018, for our fiscal year 2019 and for interim periods within that fiscal year, and we elected to apply the modified retrospective method of adoption to all contracts as of the date of initial application. The majority of our revenues are attributable to forward commodity sales contracts, which are considered to be physically settled derivatives under ASC 815, Derivatives and Hedging (Topic 815). Revenues arising from derivative contracts accounted for under ASC 815 are specifically outside the scope of ASC Topic 606 and therefore not subject to the provisions of the new revenue recognition guidance. As such, the impact of adoption of the new revenue guidance has only been assessed for our revenue contracts that are not accounted for as derivative arrangements. The primary impact of adoption was changes to the timing of revenue recognition for certain revenue streams that had an immaterial impact. Following the modified retrospective method of adoption, we determined the cumulative effect of adoption for all contracts with customers that had not been completed as of the adoption date was less than $1.0 million . Additionally, the impact of applying ASC Topic 606 compared to previous guidance during the three months ended November 30, 2018, was an overall decrease to revenues of $13.1 million . Our revenue recognition accounting policy and additional information related to our revenue streams and related performance obligations required to be satisfied in order to recognize revenue can be found within Note 3, Revenues. Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU reduces the complexity of accounting for implementation, setup, and other upfront costs incurred in a cloud computing service arrangement that is hosted by a vendor. This ASU aligns the accounting for implementation costs of hosting arrangements, irrespective of whether the arrangements convey a license to the hosted software. This ASU permits either a prospective or retrospective transition approach. This ASU is effective for us beginning September 1, 2020, for our fiscal year 2021 and for interim periods within that fiscal year, with early adoption permitted. The adoption of this amended guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General . This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year and (b) the effects of a one-percentage-point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for postretirement health care benefits. The new disclosures include the interest crediting rates for cash balance plans and an explanation of significant gains and losses related to changes in benefit obligations. This ASU is effective for us beginning September 1, 2021, for our fiscal year 2022 and for interim periods within that fiscal year, with early adoption permitted. The adoption of this amended guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying and adding certain disclosures. Specifically, the guidance removes the requirement to disclose the amount and reasons for any transfers between Level 1 and Level 2 of the fair value hierarchy and removes the requirement to disclose a description of the valuation processes used to value Level 3 fair value measurements. The guidance also requires additional disclosures surrounding Level 3 changes in unrealized gains/losses included in other comprehensive income as well as the range and weighted average significant unobservable inputs calculation. This ASU is effective for us beginning September 1, 2020, for our fiscal year 2021 and for interim periods within that fiscal year. Early adoption is permitted. We elected to remove the disclosures permitted by ASU No. 2018-13 during the fourth quarter of fiscal 2018 but have not early adopted the new required additional disclosures, which is permitted by the guidance. The adoption of this amended guidance is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments in this ASU introduce a new approach, based on expected losses, to estimate credit losses on certain types of financial instruments. This ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses associated with most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures. Entities are required to apply the provisions of this ASU 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 within ASC 840 - Leases . The amendments within this ASU, as well as within additional clarifying ASUs issued by the FASB, 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. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , which amends ASU No. 2016-02, Leases . This ASU is effective for us beginning September 1, 2019, for our fiscal year 2020 and for interim periods within that fiscal year. We have initiated our assessment of the new lease standard, including the utilization of surveys to gather more information about existing leases and the implementation of a new lease software to improve the collection, maintenance and aggregation of lease data necessary for the expanded reporting and disclosure requirements under the new lease standard. It is expected that the primary impact upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases as right of use assets and liabilities on our Consolidated Balance Sheets. This will result in a significant increase in assets and liabilities recorded on our Consolidated Balance Sheets. Although we expect the new lease guidance will have a material impact on our Consolidated Balance Sheets, we are continuing to evaluate the practical expedient guidance provisions available and the extent of potential impacts on our consolidated financial statements, processes and internal controls. |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within our Consolidated Balance Sheets that aggregates to the amount presented in our Consolidated Statements of Cash Flows. During the three months ended November 30, 2018, we updated the presentation of our Consolidated Statements of Cash Flows to include restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on our Consolidated Statements of Cash Flows. November 30, 2018 August 31, 2018 November 30, 2017 August 31, 2017 (Dollars in thousands) Cash and cash equivalents $ 266,152 $ 450,617 $ 249,767 $ 181,379 Restricted cash included in other current assets 72,687 90,193 88,525 83,561 Restricted cash included in other assets 3,053 3,130 5,119 7,332 Total Cash and cash equivalents and restricted cash $ 341,892 $ 543,940 $ 343,411 $ 272,272 |
Reconciliation of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within our Consolidated Balance Sheets that aggregates to the amount presented in our Consolidated Statements of Cash Flows. During the three months ended November 30, 2018, we updated the presentation of our Consolidated Statements of Cash Flows to include restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on our Consolidated Statements of Cash Flows. November 30, 2018 August 31, 2018 November 30, 2017 August 31, 2017 (Dollars in thousands) Cash and cash equivalents $ 266,152 $ 450,617 $ 249,767 $ 181,379 Restricted cash included in other current assets 72,687 90,193 88,525 83,561 Restricted cash included in other assets 3,053 3,130 5,119 7,332 Total Cash and cash equivalents and restricted cash $ 341,892 $ 543,940 $ 343,411 $ 272,272 |
Restatement of Previously Iss_2
Restatement of Previously Issued Financial Information (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Consolidated Financial Statement Adjustments | For the Three Months Ended November 30, 2017 As Previously Reported Restatement Adjustments As Restated Accounting Changes* As Presented Restatement References (Dollars in thousands) Revenues $ 8,048,889 $ (17,005 ) $ 8,031,884 $ — $ 8,031,884 a, b, c Cost of goods sold 7,735,627 (24,570 ) 7,711,057 335 7,711,392 a, b, c Gross profit 313,262 7,565 320,827 (335 ) 320,492 Marketing, general and administrative 140,168 (668 ) 139,500 846 140,346 c Reserve and impairment charges (recoveries), net (3,787 ) — (3,787 ) — (3,787 ) Operating earnings (loss) 176,881 8,233 185,114 (1,181 ) 183,933 Interest expense 40,702 — 40,702 — 40,702 Other (income) loss (25,014 ) — (25,014 ) (1,181 ) (26,195 ) Equity (income) loss from investments (38,362 ) — (38,362 ) — (38,362 ) Income (loss) before income taxes 199,555 8,233 207,788 — 207,788 Income tax expense (benefit) 19,936 670 20,606 — 20,606 a Net income (loss) 179,619 7,563 187,182 — 187,182 Net income (loss) attributable to noncontrolling interests (464 ) — (464 ) — (464 ) Net income (loss) attributable to CHS Inc. $ 180,083 $ 7,563 $ 187,646 $ — $ 187,646 * Previously reported amounts have been revised to reflect the impact of adopting ASU 2017-17 retrospectively during the first quarter of fiscal 2019. Refer to details related to the adoption of new ASUs within Note 1, Basis of Presentation and Significant Accounting Policies . Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.5 million reduction of income before income taxes and a $1.2 million reduction of net income. These adjustments related to a $0.5 million increase of cost of goods sold and a $0.7 million increase of income tax expense related to the tax effect of the freight derivatives and related misstatements. Intercompany misstatements (b) The correction of intercompany misstatements had no impact on income (loss) before income taxes or net income (loss); however, the correction resulted in an $11.4 million decrease of both revenues and cost of goods sold due to different practices of eliminating intercompany sales between CHS's businesses that existed in previous periods. Other misstatements (c) The correction of other misstatements resulted in an $8.8 million increase of income before income taxes and net income. The $8.8 million increase of income before income taxes relates primarily to a $6.2 million decrease of cost of goods sold related to the valuation of crack spread derivatives and a $2.6 million decrease in costs related to postretirement benefit plan activity that resulted from a timing difference associated with recording certain benefit plan expenses (included in cost of goods sold and marketing, general and administrative expenses). Additionally, certain misclassification and offsetting adjustments were made between line items included in the Consolidated Statements of Operations primarily due to the application of differing accounting policies between businesses. These misclassification adjustments resulted in a $5.7 million decrease of revenues and cost of goods sold. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the Three Months Ended November 30, 2017 As Previously Reported Restatement Adjustments As Restated Restatement References (Dollars in thousands) Net income (loss) $ 179,619 $ 7,563 $ 187,182 a, c Other comprehensive income (loss), net of tax: Postretirement benefit plan activity 4,196 (2,602 ) 1,594 c Unrealized net gain (loss) on available for sale investments 3,640 — 3,640 Cash flow hedges (4 ) — (4 ) Foreign currency translation adjustment (2,607 ) 396 (2,211 ) a Other comprehensive income (loss), net of tax 5,225 (2,206 ) 3,019 Comprehensive income 184,844 5,357 190,201 Less comprehensive income attributable to noncontrolling interests (464 ) — (464 ) Comprehensive income attributable to CHS Inc. $ 185,308 $ 5,357 $ 190,665 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $1.2 million reduction of net income. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the three months ended November 30, 2017, above. The adjustment related to foreign currency translation is attributable to the foreign currency impact associated with goodwill that was impaired during fiscal 2015. Intercompany misstatements (b) None Other misstatements (c) The correction of other misstatements resulted in an $8.8 million increase of net income. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the three months ended November 30, 2017, above. The adjustment related to postretirement benefit plan activity is attributable to a timing difference associated with recording certain benefit plan expenses. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended November 30, 2017 As Previously Reported Restatement Adjustments As Restated Accounting Changes* As Presented Restatement References (Dollars in thousands) Cash flows from operating activities: Net income (loss) $ 179,619 $ 7,563 $ 187,182 $ — $ 187,182 a, c Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 120,148 — 120,148 — 120,148 Amortization of deferred major repair costs 16,418 — 16,418 — 16,418 Equity (income) loss from investments (38,362 ) — (38,362 ) — (38,362 ) Distributions from equity investments 12,514 — 12,514 — 12,514 Provision for doubtful accounts (3,601 ) — (3,601 ) — (3,601 ) Deferred taxes 15,044 1,302 16,346 — 16,346 a Other, net 2,976 (2,601 ) 375 — 375 c Changes in operating assets and liabilities, net of acquisitions: Receivables (80,637 ) 23,937 (56,700 ) — (56,700 ) c Inventories (472,180 ) (40,843 ) (513,023 ) — (513,023 ) c Derivative assets 67,365 (3,439 ) 63,926 — 63,926 a, c Margin and related deposits (893 ) — (893 ) — (893 ) Supplier advance payments (292,905 ) (631 ) (293,536 ) — (293,536 ) b Other current assets and other assets 2,689 883 3,572 2,751 6,323 a Customer margin deposits and credit balances (18,045 ) — (18,045 ) — (18,045 ) Customer advance payments 1,278 (11,529 ) (10,251 ) — (10,251 ) b, c Accounts payable and accrued expenses 441,071 12,148 453,219 — 453,219 a, c Derivative liabilities (97,329 ) (2,627 ) (99,956 ) — (99,956 ) a, c Other liabilities 4,376 — 4,376 — 4,376 Net cash provided by (used in) operating activities (140,454 ) (15,837 ) (156,291 ) 2,751 (153,540 ) Cash flows from investing activities: Acquisition of property, plant and equipment (85,824 ) — (85,824 ) — (85,824 ) Proceeds from disposition of property, plant and equipment 56,079 — 56,079 — 56,079 Proceeds from sale of business 29,457 — 29,457 — 29,457 Expenditures for major repairs (1,039 ) — (1,039 ) — (1,039 ) Investments redeemed 5,195 — 5,195 — 5,195 Changes in CHS Capital notes receivable, net (69,227 ) — (69,227 ) — (69,227 ) Financing extended to customers (15,778 ) — (15,778 ) — (15,778 ) Payments from customer financing 16,520 — 16,520 — 16,520 Other investing activities, net 1,847 — 1,847 — 1,847 Net cash provided by (used in) investing activities (62,770 ) — (62,770 ) — (62,770 ) Cash flows from financing activities: Proceeds from lines of credit and long-term borrowings 8,006,980 — 8,006,980 — 8,006,980 Payments on lines of credit, long-term borrowings and capital lease obligations (7,657,713 ) 3,052 (7,654,661 ) — (7,654,661 ) c Preferred stock dividends paid (42,167 ) — (42,167 ) — (42,167 ) Redemptions of equities (3,682 ) — (3,682 ) — (3,682 ) Other financing activities, net (31,680 ) 10,423 (21,257 ) — (21,257 ) c Net cash provided by (used in) financing activities 271,738 13,475 285,213 — 285,213 Effect of exchange rate changes on cash and cash equivalents 2,236 — 2,236 — 2,236 Net increase (decrease) in cash and cash equivalents and restricted cash 70,750 (2,362 ) 68,388 2,751 71,139 b Cash and cash equivalents and restricted cash at beginning of period 181,379 — $ 181,379 90,893 272,272 Cash and cash equivalents and restricted cash at end of period $ 252,129 $ (2,362 ) $ 249,767 $ 93,644 $ 343,411 * Previously reported amounts have been revised to reflect the impact of adopting ASU 2016-18 retrospectively during the first quarter of fiscal 2019. Refer to details related to the adoption of new ASUs within Note 1, Basis of Presentation and Significant Accounting Policies . Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $1.2 million reduction of net income for the three months ended November 30, 2017. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the three months ended November 30, 2017, above. The impact of the adjustments to the Consolidated Balance Sheets as of August 31, 2017, and November 30, 2017, resulted in certain misclassifications of less than $3.0 million between operating activity line items in the Consolidated Statements of Cash Flows; however, none of the freight derivatives and related misstatements impacted the classifications between operating, investing or financing activities. Intercompany misstatements (b) The correction of intercompany misstatements did not impact net income for the three months ended November 30, 2017; however, the impact of adjustments to the Consolidated Balance Sheets as of August 31, 2017, and November 30, 2017, resulted in certain misclassification adjustments of less than $3.0 million between line items in the Consolidated Statements of Cash Flows. None of the intercompany misstatements impacted the classifications between operating, investing or financing activities within the Consolidated Statements of Cash Flows; however, a timing difference related to the application of supplier advance payments resulted in a $2.4 million decrease of cash as of November 30, 2017. Other misstatements (c) The correction of other misstatements resulted in an $8.8 million increase of net income for the three months ended November 30, 2017. Refer to further details of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the three months ended November 30, 2017, above. The impact of the adjustments to the Consolidated Balance Sheets as of August 31, 2017, and November 30, 2017, resulted in certain misclassification adjustments between line items in the Consolidated Statements of Cash Flows. As a result, two misclassification adjustments were made between operating and financing activities, including a $3.1 million reduction of notes payable resulting from a duplicative entry and the misclassification of a $10.4 million negative cash balance associated with a timing difference for the application of in-transit cash. In addition, various misclassification adjustments were made between operating activity lines, the most significant of which related to (1) a $24.1 million decrease of inventory and increase in accounts receivable as of August 31, 2017, due to a timing difference related to the settlement of a single ocean vessel and (2) the $18.3 million net impact associated with the decrease of inventory and increase of accounts payable that resulted from the misclassification adjustment for certain items previously included within a contra-inventory account to accounts payable as of August 31, 2017, and November 30, 2017. |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | November 30, 2018 August 31, 2018 (Dollars in thousands) Trade accounts receivable $ 1,743,258 $ 1,578,764 CHS Capital notes receivable 683,407 569,379 Other 486,398 534,071 2,913,063 2,682,214 Less: allowances and reserves 226,968 221,813 Total receivables $ 2,686,095 $ 2,460,401 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table presents revenues recognized under ASC Topic 606 disaggregated by reportable segment, as well as the amount of revenues recognized under ASC Topic 815 and other applicable accounting guidance for the three months ended November 30, 2018. Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 840, Leases and ASC Topic 470, Debt that fall outside the scope of ASC Topic 606. ASC 606 ASC 815 Other Guidance Total Revenues For the Three Months Ended November 30, 2018: (Dollars in thousands) Energy $ 1,940,190 $ 221,098 $ — $ 2,161,288 Ag 1,355,826 4,913,428 36,143 6,305,397 Corporate and Other 5,234 — 12,370 17,604 Total revenues $ 3,301,250 $ 5,134,526 $ 48,513 $ 8,484,289 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | November 30, 2018 August 31, 2018 (Dollars in thousands) Grain and oilseed $ 1,525,151 $ 1,298,522 Energy 680,807 715,161 Crop nutrients 325,189 246,326 Feed and farm supplies 522,490 391,906 Processed grain and oilseed 113,138 99,426 Other 17,674 17,308 Total inventories $ 3,184,449 $ 2,768,649 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Table Text Block] | November 30, 2018 August 31, 2018 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,775,989 $ 2,735,073 Ventura Foods, LLC 367,429 360,150 Ardent Mills, LLC 212,887 205,898 Other equity method investments 294,130 288,016 Cost method investments 124,101 122,788 Total investments $ 3,774,536 $ 3,711,925 |
Equity Method Investments [Table Text Block] | The following table provides aggregate summarized unaudited financial information for our equity method investments in CF Nitrogen, Ventura Foods and Ardent Mills for the three months ended November 30, 2018, and 2017: For the Three Months Ended 2018 2017 (Dollars in thousands) Net sales $ 2,241,539 $ 2,081,514 Gross profit 339,937 211,432 Net earnings 272,736 112,071 Earnings attributable to CHS Inc. 67,668 28,766 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | November 30, August 31, Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 40,815 $ (13,791 ) $ 27,024 $ 40,815 $ (13,082 ) $ 27,733 Trademarks and other intangible assets 6,536 (4,990 ) 1,546 6,536 (4,931 ) 1,605 Total intangible assets $ 47,351 $ (18,781 ) $ 28,570 $ 47,351 $ (18,013 ) $ 29,338 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | (Dollars in thousands) Year 1 $ 3,070 Year 2 2,991 Year 3 2,933 Year 4 2,751 Year 5 2,667 |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | November 30, 2018 August 31, 2018 (Dollars in thousands) Notes payable $ 1,496,122 $ 1,437,264 CHS Capital notes payable 905,431 834,932 Total notes payable $ 2,401,553 $ 2,272,196 |
Schedule of Interest,Net | Interest expense for the three months ended November 30, 2018 , and 2017, was $38.9 million and $40.7 million , respectively, net of capitalized interest of $2.1 million and $1.8 million , respectively. |
Equities (Tables)
Equities (Tables) | 3 Months Ended |
Nov. 30, 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, 2018, net of tax $ (140,335 ) $ 8,861 $ (5,882 ) $ (62,559 ) $ (199,915 ) Other comprehensive income (loss), before tax: Amounts before reclassifications 175 — (317 ) (25 ) (167 ) Amounts reclassified out 2,565 — (1,475 ) — 1,090 Total other comprehensive income (loss), before tax 2,740 — (1,792 ) (25 ) 923 Tax effect (639 ) — 485 (380 ) (534 ) Other comprehensive income (loss), net of tax 2,101 — (1,307 ) (405 ) 389 Reclassifications 416 (8,861 ) 983 2,756 (4,706 ) Balance as of November 30, 2018, net of tax $ (137,818 ) $ — $ (6,206 ) $ (60,208 ) $ (204,232 ) 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 $ (132,444 ) $ 10,041 $ (6,954 ) $ (51,003 ) $ (180,360 ) Other comprehensive income (loss), before tax: Amounts before reclassifications — 4,044 (435 ) (612 ) 2,997 Amounts reclassified out 4,214 — 429 (2,042 ) 2,601 Total other comprehensive income (loss), before tax 4,214 4,044 (6 ) (2,654 ) 5,598 Tax effect (2,620 ) (404 ) 2 443 (2,579 ) Other comprehensive income (loss), net of tax 1,594 3,640 (4 ) (2,211 ) 3,019 Balance as of November 30, 2017, net of tax $ (130,850 ) $ 13,681 $ (6,958 ) $ (53,214 ) $ (177,341 ) |
Schedule of Stockholders Equity | Changes in equities for the three months ended November 30, 2018 , and 2017 are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance, August 31, 2018 $ 3,837,580 $ 29,498 $ 742,378 $ 2,264,038 $ (199,915 ) $ 1,482,003 $ 9,446 $ 8,165,028 Reversal of prior year redemption estimates 24,072 — — — — — — 24,072 Redemptions of equities (22,004 ) (183 ) (1,885 ) — — — — (24,072 ) Preferred stock dividends — — — — — (84,334 ) — (84,334 ) Reclassification of unrealized (gain) loss on investments — — — — (4,706 ) 4,706 — — Other, net (409 ) — (26 ) — — 3,436 318 3,319 Net income (loss) — — — — — 347,504 (389 ) 347,115 Other comprehensive income (loss), net of tax — — — — 389 — — 389 Estimated 2019 cash patronage refunds — — — — — (89,344 ) — (89,344 ) Estimated 2019 equity redemptions (50,081 ) — — — — — — (50,081 ) Balance, November 30, 2018 $ 3,789,158 $ 29,315 $ 740,467 $ 2,264,038 $ (204,232 ) $ 1,663,971 $ 9,375 $ 8,292,092 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 $ (180,360 ) $ 1,267,808 $ 12,505 $ 7,705,640 Reversal of prior year redemption estimates 1,561 — — — — — — 1,561 Redemptions of equities (1,449 ) (53 ) (59 ) — — — — (1,561 ) Preferred stock dividends — — — — — (84,334 ) — (84,334 ) Other, net (1,498 ) (66 ) (344 ) — — 3,954 (2 ) 2,044 Net income (loss) — — — — — 187,646 (464 ) — 187,182 Other comprehensive income (loss), net of tax — — — — 3,019 — — 3,019 Estimated 2018 cash patronage refunds — — — — — (50,702 ) — (50,702 ) Estimated 2018 equity redemptions (19,901 ) — — — — — — (19,901 ) Balance, November 30, 2017 (As restated) $ 3,885,139 $ 29,717 $ 404,984 $ 2,264,038 $ (177,341 ) $ 1,324,372 $ 12,039 $ 7,742,948 * Certain amounts associated with Accumulated Other Comprehensive Loss, Capital Reserves and Noncontrolling Interests in the changes in equities table above were restated to reflect the impact of the misstatements associated with the restatement of previously issued financial statements. Note that the majority of the restatement adjustments within the changes in equities table above relate to the opening restatement adjustments to the August 31, 2017, balances. Additionally, the misstatements for activity in the changes in equities table above relates primarily to net income (loss) during the first quarter of fiscal 2018. Refer to further details included within Note 2, Restatement of Previously Issued Financial Information. |
Benefit Plans Schedule of Net B
Benefit Plans Schedule of Net Benefit Costs (Tables) | 3 Months Ended |
Nov. 30, 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 November 30 are as follows: (Dollars in thousands) Service cost $ 9,648 $ 9,919 $ 78 $ 137 $ 263 $ 236 Interest cost 7,099 6,002 187 178 274 227 Expected return on assets (11,242 ) (12,040 ) — — — — Prior service cost (credit) amortization 42 359 (19 ) 8 (139 ) (141 ) Actuarial (gain) loss amortization 3,087 4,518 — 15 (407 ) (306 ) Net periodic benefit cost $ 8,634 $ 8,758 $ 246 $ 338 $ (9 ) $ 16 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Energy Ag Nitrogen Production Corporate Reconciling Total For the Three Months Ended November 30, 2018: (Dollars in thousands) Revenues, including intersegment revenues $ 2,310,080 $ 6,308,714 $ — $ 19,067 $ (153,572 ) $ 8,484,289 Operating earnings (loss) 235,639 80,127 (5,128 ) 3,860 — 314,498 Interest expense 4,237 21,000 13,679 763 (771 ) 38,908 Other (income) loss (986 ) (22,400 ) (1,571 ) (948 ) 771 (25,134 ) Equity (income) loss from investments (73 ) 1,209 (40,915 ) (26,729 ) — (66,508 ) Income (loss) before income taxes $ 232,461 $ 80,318 $ 23,679 $ 30,774 $ — $ 367,232 Intersegment revenues $ (148,792 ) $ (3,317 ) $ — $ (1,463 ) $ 153,572 $ — Total assets at November 30, 2018 $ 4,100,190 $ 6,951,297 $ 2,796,154 $ 3,006,115 $ — $ 16,853,756 Energy Ag Nitrogen Production Corporate Reconciling Total For the Three Months Ended November 30, 2017: (As Restated) (Dollars in thousands) Revenues, including intersegment revenues $ 2,074,000 $ 6,081,027 $ — $ 18,775 $ (141,918 ) $ 8,031,884 Operating earnings (loss) 124,031 60,909 (3,135 ) 2,128 — 183,933 Interest expense 5,635 17,604 13,272 4,580 (389 ) 40,702 Other (income) loss (888 ) (23,586 ) (1,738 ) (372 ) 389 (26,195 ) Equity (income) loss from investments (1,152 ) (8,254 ) (20,335 ) (8,621 ) — (38,362 ) Income (loss) before income taxes $ 120,436 $ 75,145 $ 5,666 $ 6,541 $ — $ 207,788 Intersegment revenues $ (134,854 ) $ (4,033 ) $ — $ (3,031 ) $ 141,918 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Reconciliation of gross and net fair values of assets and liabilities subject to offsetting arrangements | November 30, 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 derivatives $ 176,292 $ — $ 33,094 $ 143,198 Foreign exchange derivatives 15,877 — 6,581 9,296 Embedded derivative asset 20,166 — — 20,166 Total $ 212,335 $ — $ 39,675 $ 172,660 Derivative Liabilities: Commodity derivatives $ 276,899 $ 23,121 $ 33,094 $ 220,684 Foreign exchange derivatives 9,471 — 6,581 2,890 Total $ 286,370 $ 23,121 $ 39,675 $ 223,574 August 31, 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 derivatives $ 313,033 $ — $ 26,781 $ 286,252 Foreign exchange derivatives 15,401 — 8,703 6,698 Embedded derivative asset 23,595 — — 23,595 Total $ 352,029 $ — $ 35,484 $ 316,545 Derivative Liabilities: Commodity derivatives $ 421,054 $ 12,983 $ 26,781 $ 381,290 Foreign exchange derivatives 24,701 — 8,703 15,998 Total $ 445,755 $ 12,983 $ 35,484 $ 397,288 |
Derivatives Not Designated as Hedging Instruments | The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three months ended November 30, 2018 , and 2017 . For the Three Months Ended Location of Gain (Loss) 2018 (As Restated) 2017 (Dollars in thousands) Commodity derivatives Cost of goods sold $ (6,448 ) $ 32,917 Foreign exchange derivatives Cost of goods sold 16,056 6,766 Foreign exchange derivatives Marketing, general and administrative (832 ) (495 ) Interest rate derivatives Interest expense — (1 ) Embedded derivative Other income 1,571 1,738 Total $ 10,347 $ 40,925 |
Schedule of Derivative Instruments, Purchase and Sales Contracts | all outstanding commodity and freight contracts accounted for as derivative instruments. November 30, 2018 August 31, 2018 Long Short Long Short (Units in thousands) Grain and oilseed - bushels 560,843 837,696 715,866 929,873 Energy products - barrels 16,632 7,670 17,011 8,329 Processed grain and oilseed - tons 374 3,077 1,064 2,875 Crop nutrients - tons 44 91 11 76 Ocean freight - metric tons — — 227 45 Natural gas - MMBtu — — 610 — |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the line items on our Consolidated Balance Sheets in which they are recorded. Derivative Assets Derivative Liabilities Balance Sheet Location November 30, 2018 August 31, 2018 Balance Sheet Location November 30, 2018 August 31, 2018 (Dollars in thousands) (Dollars in thousands) Derivative assets $ 9,336 $ 812 Derivative liabilities $ 11,622 $ 634 The following table presents the fair value of our derivative interest rate swap instruments designated as fair value hedges and the line items on our Consolidated Balance Sheets in which they are recorded. Derivative Liabilities Balance Sheet Location November 30, 2018 August 31, 2018 (Dollars in thousands) Derivative liabilities $ 687 $ 771 Other liabilities 9,720 8,681 Total $ 10,407 $ 9,452 |
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 months ended November 30, 2018 , and 2017 . For the Three Months Ended November 30, Gain (Loss) on Fair Value Hedging Relationships: Location of Gain (Loss) 2018 2017 (Dollars in thousands) Interest rate swaps Interest expense $ (955 ) $ (8,317 ) Hedged item Interest expense 955 8,317 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 November 30, 2018 , and August 31, 2018 . November 30, 2018 August 31, 2018 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 $ 484,593 $ 10,407 $ 485,548 $ 9,452 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three months ended November 30, 2018, and 2017 : For the Three Months Ended 2018 2017 (Dollars in thousands) Commodity derivatives $ (2,463 ) $ — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the pretax gains (losses) relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Consolidated Statements of Operations for the three months ended November 30, 2018, and 2017 : For the Three Months Ended Location of Gain (Loss) 2018 2017 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 1,900 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | November 30, 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 derivatives $ 27,029 $ 158,600 $ — $ 185,629 Foreign currency derivatives — 15,877 — 15,877 Deferred compensation assets 37,713 — — 37,713 Embedded derivative asset — 20,166 — 20,166 Other assets 5,767 — — 5,767 Total $ 70,509 $ 194,643 $ — $ 265,152 Liabilities: Commodity derivatives $ 40,398 $ 248,122 $ — $ 288,520 Foreign currency derivatives — 9,471 — 9,471 Interest rate swap derivatives — 10,407 — 10,407 Total $ 40,398 $ 268,000 $ — $ 308,398 August 31, 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 derivatives $ 54,487 $ 259,359 $ — $ 313,846 Foreign currency derivatives — 15,401 — 15,401 Deferred compensation assets 39,073 — — 39,073 Embedded derivative asset — 23,595 — 23,595 Other assets 5,334 — — 5,334 Total $ 98,894 $ 298,355 $ — $ 397,249 Liabilities: Commodity derivatives $ 31,778 $ 389,911 $ — $ 421,689 Foreign currency derivatives — 24,701 — 24,701 Interest rate swap derivatives — 9,452 — 9,452 Total $ 31,778 $ 424,064 $ — $ 455,842 |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Aug. 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 266,152 | $ 450,617 | $ 249,767 | $ 181,379 |
Total Cash and cash equivalents and restricted cash | 341,892 | 543,940 | 343,411 | 272,272 |
Restricted cash included in other current assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 72,687 | 90,193 | 88,525 | 83,561 |
Restricted cash included in other assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 3,053 | $ 3,130 | $ 5,119 | $ 7,332 |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 01, 2018 | Nov. 30, 2018 | Nov. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase (decrease) to cost of goods sold | $ 8,013,648 | $ 7,711,392 | |
Increase to marketing, general and administrative expense | 162,496 | 140,346 | |
Increase to other income | 25,134 | 26,195 | |
Overall decrease to revenues | (8,484,289) | (8,031,884) | |
Accounting Standards Update 2017-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase (decrease) to cost of goods sold | 335 | ||
Increase to marketing, general and administrative expense | 846 | ||
Increase to other income | $ 1,181 | ||
Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from AOCI | $ 4,700 | 0 | |
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption for all contracts and customers that had not been completed as of the adoption date | $ 1,000 | ||
Overall decrease to revenues | (3,301,250) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Overall decrease to revenues | $ 13,100 |
Restatement of Previously Iss_3
Restatement of Previously Issued Financial Information - Summary of Impacts of the Restatement Adjustments on Previously Reported Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Revenues | $ 8,484,289 | $ 8,031,884 |
Cost of goods sold | 8,013,648 | 7,711,392 |
Gross profit | 470,641 | 320,492 |
Marketing, general and administrative | 162,496 | 140,346 |
Reserve and impairment charges (recoveries), net | (3,787) | |
Operating earnings (loss) | 314,498 | 183,933 |
Interest Expense | 38,908 | 40,702 |
Other (income) loss | (25,134) | (26,195) |
Equity (income) loss from investments | (66,508) | (38,362) |
Income (loss) before income taxes | 367,232 | 207,788 |
Income tax expense (benefit) | 20,117 | 20,606 |
Net income (loss) | 347,115 | 187,182 |
Net income (loss) attributable to noncontrolling interests | (389) | (464) |
Net income (loss) attributable to CHS Inc. | $ 347,504 | 187,646 |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Revenues | 8,048,889 | |
Cost of goods sold | 7,735,627 | |
Gross profit | 313,262 | |
Marketing, general and administrative | 140,168 | |
Reserve and impairment charges (recoveries), net | (3,787) | |
Operating earnings (loss) | 176,881 | |
Interest Expense | 40,702 | |
Other (income) loss | (25,014) | |
Equity (income) loss from investments | (38,362) | |
Income (loss) before income taxes | 199,555 | |
Income tax expense (benefit) | 19,936 | |
Net income (loss) | 179,619 | |
Net income (loss) attributable to noncontrolling interests | (464) | |
Net income (loss) attributable to CHS Inc. | 180,083 | |
Restatement Adjustments | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Revenues | (17,005) | |
Cost of goods sold | (24,570) | |
Gross profit | 7,565 | |
Marketing, general and administrative | (668) | |
Reserve and impairment charges (recoveries), net | 0 | |
Operating earnings (loss) | 8,233 | |
Interest Expense | 0 | |
Other (income) loss | 0 | |
Equity (income) loss from investments | 0 | |
Income (loss) before income taxes | 8,233 | |
Income tax expense (benefit) | 670 | |
Net income (loss) | 7,563 | |
Net income (loss) attributable to CHS Inc. | 7,563 | |
As Restated | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Revenues | 8,031,884 | |
Cost of goods sold | 7,711,057 | |
Gross profit | 320,827 | |
Marketing, general and administrative | 139,500 | |
Reserve and impairment charges (recoveries), net | (3,787) | |
Operating earnings (loss) | 185,114 | |
Interest Expense | 40,702 | |
Other (income) loss | (25,014) | |
Equity (income) loss from investments | (38,362) | |
Income (loss) before income taxes | 207,788 | |
Income tax expense (benefit) | 20,606 | |
Net income (loss) | 187,182 | |
Net income (loss) attributable to noncontrolling interests | (464) | |
Net income (loss) attributable to CHS Inc. | 187,646 | |
Revisions related to ASU 2017-07 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cost of goods sold | 335 | |
Gross profit | (335) | |
Marketing, general and administrative | 846 | |
Operating earnings (loss) | (1,181) | |
Other (income) loss | $ (1,181) |
Restatement of Previously Iss_4
Restatement of Previously Issued Financial Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | Aug. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase (decrease) to income before income taxes | $ 367,232 | $ 207,788 | ||
Increase (decrease) to net income | 347,115 | 187,182 | ||
Decrease in cash | (266,152) | (249,767) | $ (181,379) | $ (450,617) |
Increase (decrease) to cost of goods sold | 8,013,648 | 7,711,392 | ||
Increase (decrease) to income tax expense | 20,117 | 20,606 | ||
Increase (decrease) to revenues | 8,484,289 | 8,031,884 | ||
Misstatement between line items in the Consolidated Statements of Cash Flows | 3,000 | |||
Decrease of inventory | $ (3,184,449) | $ (2,768,649) | ||
Restatement Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase (decrease) to income before income taxes | 8,233 | |||
Increase (decrease) to net income | 7,563 | |||
Increase (decrease) to cost of goods sold | (24,570) | |||
Increase (decrease) to income tax expense | 670 | |||
Increase (decrease) to revenues | (17,005) | |||
Freight Derivatives and Related Misstatements | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Misstatement between line items in the Consolidated Statements of Cash Flows | 3,000 | |||
Freight Derivatives and Related Misstatements | Restatement Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase (decrease) to income before income taxes | (500) | |||
Increase (decrease) to net income | (1,200) | |||
Increase (decrease) to cost of goods sold | 500 | |||
Increase (decrease) to income tax expense | 700 | |||
Intercompany Misstatements | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Misstatement between line items in the Consolidated Statements of Cash Flows | 3,000 | |||
Intercompany Misstatements | Restatement Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Decrease in cash | 2,400 | |||
Increase (decrease) to revenues | (11,400) | |||
Other Misstatements | Restatement Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase (decrease) to income before income taxes | 8,800 | |||
Misstatement between line items in the Consolidated Statements of Cash Flows | 18,300 | 18,300 | ||
Reduction of notes payable | 3,100 | |||
Other Misstatements, Reclassification, Unit of Measure Assumption Adjustment | Restatement Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase (decrease) to cost of goods sold | (6,200) | |||
Other Misstatements, Postretirement Benefit Plan Activity | Restatement Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase (decrease) in costs related to postretirement benefit plan activity | (2,600) | |||
Other Misstatements, Reclassification, Application of Accounting Policies | Restatement Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase (decrease) to revenues | (5,700) | |||
Other Misstatements, Timing Difference | Restatement Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Negative cash balance | $ 10,400 | |||
Decrease of inventory | 24,100 | |||
Increase in accounts receivable | $ 24,100 |
Restatement of Previously Iss_5
Restatement of Previously Issued Financial Information - Summary of Impacts of the Restatement Adjustments on Previously Reported Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | $ 347,115 | $ 187,182 |
Other comprehensive income (loss), net of tax: | ||
Postretirement benefit plan activity | 2,101 | 1,594 |
Unrealized net gain (loss) on available for sale investments | 0 | 3,640 |
Cash flow hedges | (1,307) | (4) |
Foreign currency translation adjustment | (2,211) | |
Other comprehensive income (loss), net of tax | 389 | 3,019 |
Comprehensive income | 347,504 | 190,201 |
Less comprehensive income attributable to noncontrolling interests | (389) | (464) |
Comprehensive income attributable to CHS Inc. | $ 347,893 | 190,665 |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | 179,619 | |
Other comprehensive income (loss), net of tax: | ||
Postretirement benefit plan activity | 4,196 | |
Unrealized net gain (loss) on available for sale investments | 3,640 | |
Cash flow hedges | (4) | |
Foreign currency translation adjustment | (2,607) | |
Other comprehensive income (loss), net of tax | 5,225 | |
Comprehensive income | 184,844 | |
Less comprehensive income attributable to noncontrolling interests | (464) | |
Comprehensive income attributable to CHS Inc. | 185,308 | |
Restatement Adjustments | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income (loss) | 7,563 | |
Other comprehensive income (loss), net of tax: | ||
Postretirement benefit plan activity | (2,602) | |
Unrealized net gain (loss) on available for sale investments | 0 | |
Cash flow hedges | 0 | |
Foreign currency translation adjustment | 396 | |
Other comprehensive income (loss), net of tax | (2,206) | |
Comprehensive income | 5,357 | |
Less comprehensive income attributable to noncontrolling interests | 0 | |
Comprehensive income attributable to CHS Inc. | $ 5,357 |
Restatement of Previously Iss_6
Restatement of Previously Issued Financial Information - Summary of Impacts of the Restatement Adjustments on Previously Reported Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 347,115 | $ 187,182 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 118,603 | 120,148 |
Amortization of deferred major repair costs | 19,176 | 16,418 |
Equity (income) loss from investments | (66,508) | (38,362) |
Distributions from equity investments | 18,887 | 12,514 |
Provision for doubtful accounts | 5,009 | (3,601) |
Deferred taxes | 16,346 | |
Other, net | (3,162) | 375 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | (182,767) | (56,700) |
Inventories | (416,196) | (513,023) |
Derivative assets | (139,694) | (63,926) |
Margin and related deposits | (63,476) | (893) |
Supplier advance payments | (110,672) | (293,536) |
Other current assets and other assets | 12,541 | 6,323 |
Customer margin deposits and credit balances | (3,697) | (18,045) |
Customer advance payments | (83,271) | (10,251) |
Accounts payable and accrued expenses | 299,741 | 453,219 |
Derivative liabilities | (159,385) | (99,956) |
Other liabilities | 7,015 | 4,376 |
Net cash provided by (used in) operating activities | (94,798) | (153,540) |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (104,750) | (85,824) |
Proceeds from disposition of property, plant and equipment | 5,752 | 56,079 |
Proceeds from sale of business | 1,730 | 29,457 |
Expenditures for major repairs | (3,441) | (1,039) |
Investments redeemed | 5,195 | |
Changes in CHS Capital notes receivable, net | (126,865) | (69,227) |
Financing extended to customers | (3,928) | (15,778) |
Financing extended to customers | 16,520 | |
Other investing activities, net | 4,090 | 1,847 |
Net cash provided by (used in) investing activities | (154,776) | (62,770) |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 8,006,980 | |
Payments on lines of credit, long-term borrowings and capital lease obligations | (4,317,479) | (7,654,661) |
Preferred stock dividends paid | (42,167) | (42,167) |
Redemptions of equities | (24,072) | (3,682) |
Other financing activities, net | 3,503 | (21,257) |
Net cash provided by (used in) financing activities | 49,061 | 285,213 |
Effect of exchange rate changes on cash and cash equivalents | (1,535) | 2,236 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (202,048) | 71,139 |
Cash and cash equivalents and restricted cash at beginning of period | 543,940 | 272,272 |
Cash and cash equivalents and restricted cash at end of period | $ 341,892 | 343,411 |
As Previously Reported | ||
Cash flows from operating activities: | ||
Net income (loss) | 179,619 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 120,148 | |
Amortization of deferred major repair costs | 16,418 | |
Equity (income) loss from investments | (38,362) | |
Distributions from equity investments | 12,514 | |
Provision for doubtful accounts | (3,601) | |
Deferred taxes | 15,044 | |
Other, net | 2,976 | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | (80,637) | |
Inventories | (472,180) | |
Derivative assets | 67,365 | |
Margin and related deposits | (893) | |
Supplier advance payments | (292,905) | |
Other current assets and other assets | 2,689 | |
Customer margin deposits and credit balances | (18,045) | |
Customer advance payments | 1,278 | |
Accounts payable and accrued expenses | 441,071 | |
Derivative liabilities | (97,329) | |
Other liabilities | 4,376 | |
Net cash provided by (used in) operating activities | (140,454) | |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (85,824) | |
Proceeds from disposition of property, plant and equipment | 56,079 | |
Proceeds from sale of business | 29,457 | |
Expenditures for major repairs | (1,039) | |
Investments redeemed | 5,195 | |
Changes in CHS Capital notes receivable, net | (69,227) | |
Financing extended to customers | (15,778) | |
Financing extended to customers | 16,520 | |
Other investing activities, net | 1,847 | |
Net cash provided by (used in) investing activities | (62,770) | |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 8,006,980 | |
Payments on lines of credit, long-term borrowings and capital lease obligations | (7,657,713) | |
Preferred stock dividends paid | (42,167) | |
Redemptions of equities | (3,682) | |
Other financing activities, net | (31,680) | |
Net cash provided by (used in) financing activities | 271,738 | |
Effect of exchange rate changes on cash and cash equivalents | 2,236 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 70,750 | |
Cash and cash equivalents and restricted cash at beginning of period | 181,379 | |
Cash and cash equivalents and restricted cash at end of period | 252,129 | |
Restatement Adjustments | ||
Cash flows from operating activities: | ||
Net income (loss) | 7,563 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 0 | |
Amortization of deferred major repair costs | 0 | |
Equity (income) loss from investments | 0 | |
Distributions from equity investments | 0 | |
Provision for doubtful accounts | 0 | |
Deferred taxes | 1,302 | |
Other, net | (2,601) | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | 23,937 | |
Inventories | (40,843) | |
Derivative assets | (3,439) | |
Margin and related deposits | 0 | |
Supplier advance payments | (631) | |
Other current assets and other assets | 883 | |
Customer margin deposits and credit balances | 0 | |
Customer advance payments | (11,529) | |
Accounts payable and accrued expenses | 12,148 | |
Derivative liabilities | (2,627) | |
Other liabilities | 0 | |
Net cash provided by (used in) operating activities | (15,837) | |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | 0 | |
Proceeds from disposition of property, plant and equipment | 0 | |
Proceeds from sale of business | 0 | |
Expenditures for major repairs | 0 | |
Investments redeemed | 0 | |
Changes in CHS Capital notes receivable, net | 0 | |
Financing extended to customers | 0 | |
Financing extended to customers | 0 | |
Other investing activities, net | 0 | |
Net cash provided by (used in) investing activities | 0 | |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 0 | |
Payments on lines of credit, long-term borrowings and capital lease obligations | 3,052 | |
Preferred stock dividends paid | 0 | |
Redemptions of equities | 0 | |
Other financing activities, net | 10,423 | |
Net cash provided by (used in) financing activities | 13,475 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | (2,362) | |
Cash and cash equivalents and restricted cash at beginning of period | 0 | |
Cash and cash equivalents and restricted cash at end of period | (2,362) | |
As Restated | ||
Cash flows from operating activities: | ||
Net income (loss) | 187,182 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 120,148 | |
Amortization of deferred major repair costs | 16,418 | |
Equity (income) loss from investments | (38,362) | |
Distributions from equity investments | 12,514 | |
Provision for doubtful accounts | (3,601) | |
Deferred taxes | 16,346 | |
Other, net | 375 | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | (56,700) | |
Inventories | (513,023) | |
Derivative assets | 63,926 | |
Margin and related deposits | (893) | |
Supplier advance payments | (293,536) | |
Other current assets and other assets | 3,572 | |
Customer margin deposits and credit balances | (18,045) | |
Customer advance payments | (10,251) | |
Accounts payable and accrued expenses | 453,219 | |
Derivative liabilities | (99,956) | |
Other liabilities | 4,376 | |
Net cash provided by (used in) operating activities | (156,291) | |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (85,824) | |
Proceeds from disposition of property, plant and equipment | 56,079 | |
Proceeds from sale of business | 29,457 | |
Expenditures for major repairs | (1,039) | |
Investments redeemed | 5,195 | |
Changes in CHS Capital notes receivable, net | (69,227) | |
Financing extended to customers | (15,778) | |
Financing extended to customers | 16,520 | |
Other investing activities, net | 1,847 | |
Net cash provided by (used in) investing activities | (62,770) | |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 8,006,980 | |
Payments on lines of credit, long-term borrowings and capital lease obligations | (7,654,661) | |
Preferred stock dividends paid | (42,167) | |
Redemptions of equities | (3,682) | |
Other financing activities, net | (21,257) | |
Net cash provided by (used in) financing activities | 285,213 | |
Effect of exchange rate changes on cash and cash equivalents | 2,236 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 68,388 | |
Cash and cash equivalents and restricted cash at beginning of period | 181,379 | |
Cash and cash equivalents and restricted cash at end of period | 249,767 | |
Accounting Standards Update 2016-18 | ||
Changes in operating assets and liabilities, net of acquisitions: | ||
Other current assets and other assets | 2,751 | |
Net cash provided by (used in) operating activities | 2,751 | |
Cash flows from financing activities: | ||
Net increase (decrease) in cash and cash equivalents and restricted cash | 2,751 | |
Cash and cash equivalents and restricted cash at beginning of period | 90,893 | |
Cash and cash equivalents and restricted cash at end of period | $ 93,644 |
Receivables - Schedule of Rece
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Aug. 31, 2018 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,743,258 | $ 1,578,764 |
CHS Capital notes receivable | 683,407 | 569,379 |
Other | 486,398 | 534,071 |
Receivables, gross | 2,913,063 | 2,682,214 |
Less: allowances and reserves | 226,968 | 221,813 |
Total receivables | $ 2,686,095 | $ 2,460,401 |
Receivables - Narrative (Detai
Receivables - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2018 | Aug. 31, 2018 | |
Notes Receivable, Long-Term | ||
Interest Income Accrual Term, Discontinued | 90 days | |
CHS Capital long-term notes receivable additional available credit of counterparty | $ 567.4 | |
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 | $ 211.3 | $ 203 |
Commercial Notes to Notes and Loans Receivable, Net, Percentage | 52.00% | 40.00% |
Producer Notes to Notes and Loans Receivable, Net, Percentage | 48.00% | 60.00% |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Sep. 01, 2018 | Aug. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Overall decrease to revenues | $ (8,484,289) | $ (8,031,884) | ||
Contract liabilities | 187,900 | $ 177,900 | ||
Revenue recognized | 95,200 | |||
Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cumulative effect of adoption for all contracts and customers that had not been completed as of the adoption date | $ 1,000 | |||
Overall decrease to revenues | (3,301,250) | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Overall decrease to revenues | $ 13,100 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 8,484,289 | $ 8,031,884 |
Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,161,288 | |
Ag | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,305,397 | |
Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17,604 | |
ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,301,250 | |
ASC 606 | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,940,190 | |
ASC 606 | Ag | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,355,826 | |
ASC 606 | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,234 | |
ASC 815 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,134,526 | |
ASC 815 | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 221,098 | |
ASC 815 | Ag | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,913,428 | |
ASC 815 | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Other Guidance | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 48,513 | |
Other Guidance | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Other Guidance | Ag | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 36,143 | |
Other Guidance | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 12,370 |
Inventories - Schedule of Inve
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Aug. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Grain and oilseed | $ 1,525,151 | $ 1,298,522 |
Energy | 680,807 | 715,161 |
Crop nutrients | 325,189 | 246,326 |
Feed and farm supplies | 522,490 | 391,906 |
Processed grain and oilseed | 113,138 | 99,426 |
Other | 17,674 | 17,308 |
Total inventories | $ 3,184,449 | $ 2,768,649 |
Inventories - Narrative (Detai
Inventories - Narrative (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Aug. 31, 2018 |
Inventory Disclosure [Abstract] | ||
LIFO inventory, difference amount had FIFO inventory valuation method been used | $ 115.6 | $ 345 |
Percentage of LIFO inventory | 14.00% | 16.00% |
Investments - Narrative (Detai
Investments - Narrative (Details) $ in Thousands | Feb. 01, 2016USD ($) | Nov. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Aug. 31, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||
Equity (income) loss from investments | $ (66,508) | $ (38,362) | ||
Cost Method Investments | 124,101 | $ 122,788 | ||
Investments | $ 3,774,536 | 3,711,925 | ||
CF Nitrogen LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Acquire Equity Method Investments | $ 2,800,000 | |||
Ownership percentage | 10.00% | |||
Equity Method Investments | $ 2,775,989 | 2,735,073 | ||
Ventura Foods, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 367,429 | 360,150 | ||
Ardent Mills LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 212,887 | 205,898 | ||
Nitrogen Production [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity (income) loss from investments | $ (40,915) | (20,335) | ||
Foods [Member] | Ventura Foods, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | |||
Corporate and Other | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity (income) loss from investments | $ (26,729) | (8,621) | ||
Corporate and Other | Ardent Mills LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 12.00% | |||
Number of parent companies | 3 | |||
Ag | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity (income) loss from investments | $ 1,209 | $ (8,254) | ||
Miscellaneous Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $ 294,130 | $ 288,016 |
Investments Equity Method inves
Investments Equity Method investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Net income (loss) attributable to CHS Inc. | $ 347,504 | $ 187,646 |
Ardent Mills, Ventura, CF Nitrogen [Member] [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Net Sales | 2,241,539 | 2,081,514 |
Gross Profit | 339,937 | 211,432 |
Net earnings | 272,736 | 112,071 |
Net income (loss) attributable to CHS Inc. | $ 67,668 | $ 28,766 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Goodwill by Segment (Details) $ in Thousands | Nov. 30, 2018USD ($) |
Goodwill [Roll Forward] | |
Goodwill | $ 138,464 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Aug. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 800 | $ 900 | |
Other Intangible Assets [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||
Other Intangible Assets [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 30 years | ||
Customer Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Carrying Amount | $ 40,815 | $ 40,815 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (13,791) | (13,082) | |
Finite-Lived Intangible Assets, Net | 27,024 | 27,733 | |
Trademarks and other intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Carrying Amount | 6,536 | 6,536 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (4,990) | (4,931) | |
Finite-Lived Intangible Assets, Net | 1,546 | 1,605 | |
Total intangible assets [Domain] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Carrying Amount | 47,351 | 47,351 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (18,781) | (18,013) | |
Finite-Lived Intangible Assets, Net | $ 28,570 | $ 29,338 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 800 | $ 900 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 3,070 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,991 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,933 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,751 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 2,667 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt - Schedule of Notes Payable and Long-Term Debt (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Aug. 31, 2018 |
Debt Instrument [Line Items] | ||
Notes payable | $ 2,401,553 | $ 2,272,196 |
Notes payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 1,496,122 | 1,437,264 |
CHS Capital notes payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 905,431 | $ 834,932 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Sep. 04, 2018 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 38.9 | $ 40.7 | |
Capitalized interest | $ 2.1 | $ 1.8 | |
Five-Year Revolving Facilities | Line of Credit | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 5 years | ||
Current borrowing capacity | $ 3,000 | ||
Outstanding balance | 403 | ||
Repurchase Facility | Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Outstanding balance | $ 150 | ||
Maximum borrowing capacity | $ 150 |
Equities Changes in Equity (Det
Equities Changes in Equity (Details) - USD ($) $ in Thousands | Sep. 01, 2018 | Nov. 30, 2018 | Nov. 30, 2017 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 8,165,028 | $ 8,165,028 | $ 7,705,640 |
Reversal of prior year redemption estimates | 24,072 | 1,561 | |
Patronage Refunds | (1,561) | ||
Redemptions of equities | (24,072) | (84,334) | |
Preferred stock dividends | (84,334) | ||
Other, net | 3,319 | 2,044 | |
Net income (loss) | 347,115 | 187,182 | |
Net income (loss) attributable to CHS Inc. | 347,504 | 187,646 | |
Net income (loss) attributable to noncontrolling interests | (389) | (464) | |
Other comprehensive income (loss), net of tax | 389 | 3,019 | |
Estimated 2019 cash patronage refunds | (89,344) | (50,702) | |
Estimated 2019 equity redemptions | (50,081) | (19,901) | |
Ending Balance | 8,292,092 | 7,742,948 | |
Capital equity certificates [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 3,837,580 | 3,837,580 | 3,906,426 |
Reversal of prior year redemption estimates | 24,072 | 1,561 | |
Patronage Refunds | (1,449) | ||
Redemptions of equities | (22,004) | 0 | |
Other, net | (409) | (1,498) | |
Estimated 2019 equity redemptions | (50,081) | (19,901) | |
Ending Balance | 3,789,158 | 3,885,139 | |
Nonpatronage Equity Certificates [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 29,498 | 29,498 | 29,836 |
Reversal of prior year redemption estimates | 0 | 0 | |
Patronage Refunds | (53) | ||
Redemptions of equities | (183) | 0 | |
Other, net | (66) | ||
Ending Balance | 29,315 | 29,717 | |
Non-qualified Equity Certificates [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 742,378 | 742,378 | 405,387 |
Reversal of prior year redemption estimates | 0 | 0 | |
Patronage Refunds | (59) | ||
Redemptions of equities | (1,885) | 0 | |
Other, net | (26) | (344) | |
Ending Balance | 740,467 | 404,984 | |
Preferred Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 2,264,038 | 2,264,038 | 2,264,038 |
Patronage Refunds | 0 | ||
Redemptions of equities | 0 | 0 | |
Ending Balance | 2,264,038 | 2,264,038 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (199,915) | (199,915) | (180,360) |
Patronage Refunds | 0 | ||
Reclassification of unrealized (gain) loss on investments | 4,706 | ||
Other comprehensive income (loss), net of tax | 389 | 3,019 | |
Ending Balance | (204,232) | (177,341) | |
Capital Reserves [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1,482,003 | 1,482,003 | 1,267,808 |
Reversal of prior year redemption estimates | 0 | 0 | |
Patronage Refunds | 0 | ||
Redemptions of equities | (84,334) | ||
Preferred stock dividends | (84,334) | ||
Other, net | 3,436 | 3,954 | |
Net income (loss) attributable to CHS Inc. | 347,504 | 187,646 | |
Estimated 2019 cash patronage refunds | (89,344) | (50,702) | |
Ending Balance | 1,663,971 | 1,324,372 | |
Noncontrolling Interest [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 9,446 | 9,446 | 12,505 |
Patronage Refunds | 0 | ||
Other, net | 318 | (2) | |
Net income (loss) attributable to noncontrolling interests | (389) | (464) | |
Ending Balance | 9,375 | $ 12,039 | |
Accounting Standards Update 2016-01 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassification of unrealized (gain) loss on investments | $ 4,700 | 0 | |
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income (Loss) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassification of unrealized (gain) loss on investments | (4,706) | ||
Accounting Standards Update 2016-01 | Capital Reserves [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassification of unrealized (gain) loss on investments | 4,706 | ||
Accounting Standards Update 2016-01 | Noncontrolling Interest [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassification of unrealized (gain) loss on investments | $ 0 |
Equities Accumulated Other Comp
Equities Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 8,165,028 | $ 7,705,640 |
Other comprehensive income (loss), net of tax | 389 | 3,019 |
Ending Balance | 8,292,092 | 7,742,948 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (140,335) | (132,444) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 175 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2,565 | 4,214 |
Other Comprehensive Income (Loss), before Tax | 2,740 | 4,214 |
Other Comprehensive Income (Loss), Tax | (639) | (2,620) |
Other comprehensive income (loss), net of tax | 2,101 | 1,594 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 416 | |
Ending Balance | (137,818) | (130,850) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 8,861 | 10,041 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 4,044 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 0 | 4,044 |
Other Comprehensive Income (Loss), Tax | 0 | (404) |
Other comprehensive income (loss), net of tax | 0 | 3,640 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (8,861) | |
Ending Balance | 0 | 13,681 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (5,882) | (6,954) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (317) | (435) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (1,475) | 429 |
Other Comprehensive Income (Loss), before Tax | (1,792) | (6) |
Other Comprehensive Income (Loss), Tax | 485 | 2 |
Other comprehensive income (loss), net of tax | (1,307) | (4) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 983 | |
Ending Balance | (6,206) | (6,958) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (62,559) | (51,003) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (25) | (612) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (2,042) |
Other Comprehensive Income (Loss), before Tax | (25) | (2,654) |
Other Comprehensive Income (Loss), Tax | (380) | 443 |
Other comprehensive income (loss), net of tax | (405) | (2,211) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,756 | |
Ending Balance | (60,208) | (53,214) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (199,915) | (180,360) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (167) | 2,997 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,090 | 2,601 |
Other Comprehensive Income (Loss), before Tax | 923 | 5,598 |
Other Comprehensive Income (Loss), Tax | (534) | (2,579) |
Other comprehensive income (loss), net of tax | 389 | 3,019 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (4,706) | |
Ending Balance | $ (204,232) | $ (177,341) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2018 | Aug. 31, 2018 | |
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 | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Qualified Pension Benefits | ||
Component of net periodic benefit costs: [Abstract] | ||
Service cost | $ 9,648,000 | $ 9,919,000 |
Interest cost | 7,099,000 | 6,002,000 |
Expected return on assets | (11,242,000) | (12,040,000) |
Prior service cost (credit) amortization | 42,000 | 359,000 |
Actuarial (gain) loss amortization | 3,087,000 | 4,518,000 |
Net periodic benefit cost | 8,634,000 | 8,758,000 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0 | |
Non-Qualified Pension Benefits | ||
Component of net periodic benefit costs: [Abstract] | ||
Service cost | 78,000 | 137,000 |
Interest cost | 187,000 | 178,000 |
Expected return on assets | 0 | 0 |
Prior service cost (credit) amortization | (19,000) | 8,000 |
Actuarial (gain) loss amortization | 0 | 15,000 |
Net periodic benefit cost | 246,000 | 338,000 |
Other Benefits | ||
Component of net periodic benefit costs: [Abstract] | ||
Service cost | 263,000 | 236,000 |
Interest cost | 274,000 | 227,000 |
Expected return on assets | 0 | 0 |
Prior service cost (credit) amortization | (139,000) | (141,000) |
Actuarial (gain) loss amortization | (407,000) | (306,000) |
Net periodic benefit cost | $ (9,000) | $ 16,000 |
Segment Reporting - Segment In
Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 8,484,289 | $ 8,031,884 | |
Operating earnings (loss) | 314,498 | 183,933 | |
Interest Expense | 38,908 | 40,702 | |
Other (income) loss | (25,134) | (26,195) | |
Equity (income) loss from investments | (66,508) | (38,362) | |
Income (loss) before income taxes | 367,232 | 207,788 | |
Total assets | 16,853,756 | $ 16,381,178 | |
Energy | |||
Segment Reporting Information [Line Items] | |||
Revenues, including intersegment revenues | 2,310,080 | 2,074,000 | |
Revenues | 2,161,288 | ||
Operating earnings (loss) | 235,639 | 124,031 | |
Interest Expense | 4,237 | 5,635 | |
Other (income) loss | (986) | (888) | |
Equity (income) loss from investments | (73) | (1,152) | |
Income (loss) before income taxes | 232,461 | 120,436 | |
Total assets | 4,100,190 | ||
Ag | |||
Segment Reporting Information [Line Items] | |||
Revenues, including intersegment revenues | 6,308,714 | 6,081,027 | |
Revenues | 6,305,397 | ||
Operating earnings (loss) | 80,127 | 60,909 | |
Interest Expense | 21,000 | 17,604 | |
Other (income) loss | (22,400) | (23,586) | |
Equity (income) loss from investments | 1,209 | (8,254) | |
Income (loss) before income taxes | 80,318 | 75,145 | |
Total assets | 6,951,297 | ||
Nitrogen Production [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, including intersegment revenues | 0 | 0 | |
Operating earnings (loss) | (5,128) | (3,135) | |
Interest Expense | 13,679 | 13,272 | |
Other (income) loss | (1,571) | (1,738) | |
Equity (income) loss from investments | (40,915) | (20,335) | |
Income (loss) before income taxes | 23,679 | 5,666 | |
Total assets | 2,796,154 | ||
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, including intersegment revenues | 19,067 | 18,775 | |
Revenues | 17,604 | ||
Operating earnings (loss) | 3,860 | 2,128 | |
Interest Expense | 763 | 4,580 | |
Other (income) loss | (948) | (372) | |
Equity (income) loss from investments | (26,729) | (8,621) | |
Income (loss) before income taxes | 30,774 | 6,541 | |
Total assets | 3,006,115 | ||
Reconciling Amounts | |||
Segment Reporting Information [Line Items] | |||
Revenues | (153,572) | (141,918) | |
Operating earnings (loss) | 0 | 0 | |
Interest Expense | (771) | (389) | |
Other (income) loss | 771 | 389 | |
Equity (income) loss from investments | 0 | 0 | |
Income (loss) before income taxes | 0 | 0 | |
Total assets | 0 | ||
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | Energy | |||
Segment Reporting Information [Line Items] | |||
Revenues | (148,792) | (134,854) | |
Intersegment Eliminations [Member] | Ag | |||
Segment Reporting Information [Line Items] | |||
Revenues | (3,317) | (4,033) | |
Intersegment Eliminations [Member] | Nitrogen Production [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | (1,463) | (3,031) | |
Intersegment Eliminations [Member] | Reconciling Amounts | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 153,572 | $ 141,918 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Purchase and Sale Contracts (Details) - Not Designated as Hedging Instrument t in Thousands, T in Thousands, MMBtu in Thousands, Bushels in Thousands, Barrels in Thousands | Nov. 30, 2018TtBushelsMMBtuBarrels | Aug. 31, 2018TtBushelsMMBtuBarrels |
Grain and oilseed - bushels | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 560,843 | 715,866 |
Grain and oilseed - bushels | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 837,696 | 929,873 |
Energy products - barrels | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 16,632 | 17,011 |
Energy products - barrels | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 7,670 | 8,329 |
Processed grain and oilseed - tons | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 374 | 1,064 |
Processed grain and oilseed - tons | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,077 | 2,875 |
Crop nutrients - tons | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 44 | 11 |
Crop nutrients - tons | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 91 | 76 |
Ocean freight - metric tons | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 0 | 227 |
Ocean freight - metric tons | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 0 | 45 |
Natural gas - MMBtu | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 0 | 610 |
Natural gas - MMBtu | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 0 | 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Derivatives (Details) $ in Thousands, bbl in Millions | 3 Months Ended | 12 Months Ended |
Nov. 30, 2018USD ($)bbl | Aug. 31, 2018USD ($)bbl | |
Derivative [Line Items] | ||
Derivative Asset, Noncurrent | $ 18,700 | $ 23,100 |
Derivative Liability, Noncurrent | 16,100 | 7,900 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 172,660 | 316,545 |
Derivative Assets | 212,335 | 352,029 |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 39,675 | 35,484 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 223,574 | 397,288 |
Derivative Liabilities | 286,370 | 445,755 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 23,121 | 12,983 |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | $ 39,675 | 35,484 |
Credit Rating Agencies Threshold, Minimum | 66.67% | |
CF Nitrogen LLC [Member] | ||
Derivative [Line Items] | ||
Annual Payment Receivable Contingent On Investment Credit Rating | $ 5,000 | |
Embedded derivative asset | 20,100 | |
Foreign currency derivatives | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 9,296 | 6,698 |
Derivative Assets | 15,877 | 15,401 |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 6,581 | 8,703 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 2,890 | 15,998 |
Derivative Liabilities | 9,471 | 24,701 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 6,581 | 8,703 |
Derivative Asset, Notional Amount | 762,400 | 988,800 |
Interest rate swap derivatives | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Liabilities | 10,407 | 9,452 |
Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 20,166 | 23,595 |
Derivative Assets | 20,166 | 23,595 |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | 0 |
Commodity derivatives | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 143,198 | 286,252 |
Derivative Assets | 176,292 | 313,033 |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 33,094 | 26,781 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 220,684 | 381,290 |
Derivative Liabilities | 276,899 | 421,054 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 23,121 | 12,983 |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 33,094 | $ 26,781 |
Fair Value Hedging | Interest rate swap derivatives | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 495,000 | |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount of cash flow hedges (in barrels) | bbl | 5.4 | 1.1 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | $ 9,336 | $ 812 |
Derivative Liabilities | $ 11,622 | $ 634 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Pretax Gains (Losses) On Derivatives Not Accounted For As Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 10,347 | $ 40,925 |
Commodity derivatives | Cost of goods sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (6,448) | 32,917 |
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 | 16,056 | 6,766 |
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 | (832) | (495) |
Interest rate derivatives | Interest Expense | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | (1) |
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 | $ 1,571 | $ 1,738 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Aug. 31, 2018 |
Derivative [Line Items] | ||
Derivative Assets | $ 212,335 | $ 352,029 |
Derivative Liabilities | 286,370 | 445,755 |
Designated as Hedging Instrument | Interest rate swap derivatives | ||
Derivative [Line Items] | ||
Derivative Liabilities | 10,407 | 9,452 |
Designated as Hedging Instrument | Derivative Liabilities Current [Member] | Interest rate swap derivatives | ||
Derivative [Line Items] | ||
Derivative Liabilities | 687 | 771 |
Designated as Hedging Instrument | Other Liabilities | Interest rate swap derivatives | ||
Derivative [Line Items] | ||
Derivative Liabilities | $ 9,720 | $ 8,681 |
Derivative Financial Instrume_7
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instruments, Effect on Earnings (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Derivative [Line Items] | ||
Gain (loss) on fair value hedging relationship | $ 0 | $ 0 |
Interest Expense | Interest rate swap derivatives | ||
Derivative [Line Items] | ||
Gain (loss) on fair value hedging relationship | (955) | (8,317) |
Interest Expense | Hedged Item | ||
Derivative [Line Items] | ||
Gain (loss) on fair value hedging relationship | $ 955 | $ 8,317 |
Derivative Financial Instrume_8
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 | Nov. 30, 2018 | Aug. 31, 2018 |
Derivative [Line Items] | ||
Carrying Amount of Hedged Liabilities | $ 484,593 | $ 485,548 |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities | $ 10,407 | $ 9,452 |
Derivative Financial Instrume_9
Derivative Financial Instruments and Hedging Activities - Fair Value of Commodity Derivative Instruments (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Aug. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 212,335 | $ 352,029 |
Derivative Liabilities | $ 286,370 | $ 445,755 |
Derivative Financial Instrum_10
Derivative Financial Instruments and Hedging Activities - Commodity Derivatives (Details) - Commodity derivatives - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Cost of goods sold | ||
Derivative [Line Items] | ||
Pretax gains (losses) reclassified from AOCI related to cash flow hedges | $ 1,900 | $ 0 |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Pretax gains (losses) recorded in OCI related to cash flow hedges | $ (2,463) | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Nov. 30, 2018 | Aug. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | $ 37,713 | $ 39,073 |
Embedded derivative asset | 20,166 | 23,595 |
Other assets | 5,767 | 5,334 |
Total assets | 265,152 | 397,249 |
Foreign currency derivatives | 24,701 | |
Total liabilities | 308,398 | 455,842 |
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 | 37,713 | 39,073 |
Embedded derivative asset | 0 | 0 |
Other assets | 5,767 | 5,334 |
Total assets | 70,509 | 98,894 |
Foreign currency derivatives | 0 | |
Total liabilities | 40,398 | 31,778 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Embedded derivative asset | 20,166 | 23,595 |
Other assets | 0 | 0 |
Total assets | 194,643 | 298,355 |
Foreign currency derivatives | 24,701 | |
Total liabilities | 268,000 | 424,064 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Embedded derivative asset | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Foreign currency derivatives | 0 | |
Total liabilities | 0 | 0 |
Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 185,629 | 313,846 |
Derivative Liability | 288,520 | 421,689 |
Commodity 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 | 27,029 | 54,487 |
Derivative Liability | 40,398 | 31,778 |
Commodity derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 158,600 | 259,359 |
Derivative Liability | 248,122 | 389,911 |
Commodity 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 | 15,877 | 15,401 |
Foreign currency derivatives | 9,471 | |
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 | 15,877 | 15,401 |
Foreign currency derivatives | 9,471 | |
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 Liability | 10,407 | 9,452 |
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 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 Liability | 10,407 | 9,452 |
Interest rate swap derivatives | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 0 | $ 0 |
Commitments and Contingencies G
Commitments and Contingencies Guarantees (Details) $ in Millions | Nov. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure, undiscounted | $ 151.3 |
Maximum guarantees allowed by bank covenants | $ 1,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Feb. 28, 2019USD ($) |
Scenario, Forecast | |
Subsequent Event [Line Items] | |
Former gain contingency to be recognized | $ 80.8 |