Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2019 | Jan. 08, 2020 | |
DEI [Abstract] | ||
Entity Registrant Name | CHS Inc. | |
Entity Central Index Key | 0000823277 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
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, 2019 | Aug. 31, 2019 |
Current assets [Abstract] | ||
Cash and cash equivalents | $ 192,761 | $ 211,179 |
Receivables | 2,631,374 | 2,731,209 |
Inventories | 3,368,868 | 2,854,288 |
Other current assets | 980,904 | 865,919 |
Total current assets | 7,173,907 | 6,662,595 |
Investments | 3,713,201 | 3,683,996 |
Property, plant and equipment | 5,086,628 | 5,088,708 |
Other assets | 1,240,555 | 1,012,195 |
Total assets | 17,214,291 | 16,447,494 |
Current liabilities [Abstract] | ||
Notes payable | 2,170,924 | 2,156,108 |
Current portion of long-term debt | 28,231 | 39,210 |
Accounts payable | 2,447,610 | 1,931,415 |
Accrued expenses | 467,765 | 555,323 |
Other current liabilities | 1,066,902 | 901,651 |
Total current liabilities | 6,181,432 | 5,583,707 |
Long-term debt | 1,725,837 | 1,749,901 |
Other liabilities | 684,106 | 496,356 |
Commitments and contingencies (Note 13) | ||
Equities: | ||
Preferred stock | 2,264,038 | 2,264,038 |
Equity certificates | 4,897,197 | 4,988,877 |
Accumulated other comprehensive loss | (228,571) | (226,933) |
Capital reserves | 1,681,597 | 1,584,158 |
Total CHS Inc. equities | 8,614,261 | 8,610,140 |
Noncontrolling interests | 8,655 | 7,390 |
Total equities | 8,622,916 | 8,617,530 |
Total liabilities and equities | $ 17,214,291 | $ 16,447,494 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 7,621,485 | $ 8,484,289 |
Cost of goods sold | 7,295,942 | 8,013,648 |
Gross profit | 325,543 | 470,641 |
Marketing, general and administrative expenses | 168,331 | 156,143 |
Operating earnings (loss) | 157,212 | 314,498 |
Interest Expense | 34,971 | 38,908 |
Other (income) loss | (13,498) | (25,134) |
Equity (income) loss from investments | (49,662) | (66,508) |
Income (loss) before income taxes | 185,401 | 367,232 |
Income tax expense (benefit) | 6,664 | 20,117 |
Net income (loss) | 178,737 | 347,115 |
Net income (loss) attributable to noncontrolling interests | 855 | (389) |
Net income (loss) attributable to CHS Inc. | $ 177,882 | $ 347,504 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Net income (loss) | $ 178,737 | $ 347,115 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Postretirement benefit plan activity, net of tax expense (benefit) | 5,073 | 2,101 |
Cash flow hedges, net of tax expense (benefit) | (5,872) | (1,307) |
Foreign currency translation adjustment, net of tax expense (benefit) | (839) | (405) |
Other comprehensive income (loss), net of tax | (1,638) | 389 |
Comprehensive income (loss) | 177,099 | 347,504 |
Less comprehensive income attributable to noncontrolling interests | 855 | (389) |
Comprehensive Income (Loss) Attributable to CHS | $ 176,244 | $ 347,893 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 178,737 | $ 347,115 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 136,643 | 137,779 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (30,468) | (47,621) |
Provision for doubtful accounts | 1,775 | 5,009 |
Deferred taxes | (3,579) | 26,555 |
Other, net | 8,341 | (3,162) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | 108,495 | (182,767) |
Inventories | (514,580) | (416,196) |
Accounts payable and accrued expenses | 386,021 | 299,741 |
Other liabilities | (110,684) | (261,251) |
Net cash provided by (used in) operating activities | 160,701 | (94,798) |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (131,808) | (104,750) |
Proceeds from disposition of property, plant and equipment | 3,015 | 5,752 |
Expenditures for major repairs | (7,691) | (3,441) |
Changes in CHS Capital notes receivable, net | 15,195 | (126,865) |
Financing extended to customers | (915) | (3,928) |
Payments from customer financing | 4,209 | 71,137 |
Other investing activities, net | 3,046 | 7,319 |
Net cash provided by (used in) investing activities | (114,949) | (154,776) |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 5,414,395 | 4,429,276 |
Payments on lines of credit, long-term borrowings and capital lease obligations | (5,445,420) | (4,317,479) |
Preferred stock dividends paid | (42,167) | (42,167) |
Redemptions of equities | (5,447) | (24,072) |
Other financing activities, net | 6,757 | 3,503 |
Net cash provided by (used in) financing activities | (71,882) | 49,061 |
Effect of exchange rate changes on cash and cash equivalents | (1,153) | (1,535) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (27,283) | (202,048) |
Cash and cash equivalents and restricted cash at beginning of period | 299,675 | 543,940 |
Cash and cash equivalents and restricted cash at end of period | $ 272,392 | $ 341,892 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation These unaudited condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary for a fair statement of our financial position, results of operations and cash flows for the 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 the seasonal nature of our businesses, among other things. Our unaudited condensed consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended August 31, 2019 , included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC"). Certain captions within the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows have been combined within other captions as allowed by SEC financial statement reporting requirements under Regulation S-X. Prior year information has been revised to conform with the current presentation. Significant Accounting Policies The following significant accounting policy was updated or changed since our Annual Report on Form 10-K for the year ended August 31, 2019 . Leases As described in the "Recent Accounting Pronouncements" section, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases , as amended (collectively "Accounting Standards Codification ("ASC") Topic 842"), on September 1, 2019, using the modified retrospective approach. Our accounting policies and additional disclosures with respect to ASC Topic 842 are included in Note 14, Leases . Recent Accounting Pronouncements Except for the recent accounting pronouncements described below, other recent accounting pronouncements are not expected to have a material impact on our condensed consolidated financial statements. Adopted We adopted ASC Topic 842 as of September 1, 2019, using the modified retrospective approach. In addition, we used the additional optional transition method and package of practical expedients in the period of adoption without retrospective adjustment to previous periods presented, although we elected not to apply the hindsight practical expedient available under the standard. As a result of using the modified retrospective method, prior periods have not been restated, and a $33.7 million cumulative-effect adjustment was recorded to increase the opening balance of capital reserves as of the adoption date related to recognition of previously deferred gains associated with the sale-leaseback of our primary corporate office building located in Inver Grove Heights, Minnesota. Additionally, adoption of ASC Topic 842 resulted in the recognition of operating lease right of use assets and associated lease liabilities of $268.4 million and $267.0 million , respectively, as of September 1, 2019. Adoption of ASC Topic 842 did not have a material impact on our Condensed Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows. Additional information and further disclosures related to our leases and lease-related financial statement amounts is included within Note 14, Leases. Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 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 capital reserves 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 adoption will have on our condensed consolidated financial statements. |
Revenues (Notes)
Revenues (Notes) | 3 Months Ended |
Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following table presents revenues recognized under ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), disaggregated by reportable segment, as well as the amount of revenues recognized under ASC Topic 815, Derivatives and Hedging ("ASC Topic 815"), and other applicable accounting guidance for the three months ended November 30, 2019 and 2018 . Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 842, Leases , and ASC Topic 470, Debt , that fall outside the scope of ASC Topic 606. ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues Three Months Ended November 30, 2019: (Dollars in thousands) Energy $ 1,693,848 $ 201,575 $ — $ 1,895,423 Ag 1,358,626 4,316,087 37,142 5,711,855 Corporate and Other 5,541 — 8,666 14,207 Total revenues $ 3,058,015 $ 4,517,662 $ 45,808 $ 7,621,485 Three Months Ended November 30, 2018: 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. 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 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 receivables within our Condensed Consolidated Balance Sheets and were not material as of November 30, 2019 , and August 31, 2019 . Contract liabilities relate to advance payments from customers for goods and services that we have yet to provide. Contract liabilities of $205.0 million and $207.5 million as of November 30, 2019 , and August 31, 2019 , respectively, are recorded within other current liabilities on our Condensed Consolidated Balance Sheets. For the three months ended November 30, 2019 and 2018 , we recognized revenues of $92.0 million and $95.2 million , respectively, which were included in the other current liabilities balance at the beginning of the period. |
Receivables
Receivables | 3 Months Ended |
Nov. 30, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables November 30, 2019 August 31, 2019 (Dollars in thousands) Trade accounts receivable $ 1,706,564 $ 1,803,284 CHS Capital short-term notes receivable 606,605 592,909 Other 497,880 511,821 Gross receivables 2,811,049 2,908,014 Less: allowances and reserves 179,675 176,805 Total receivables $ 2,631,374 $ 2,731,209 Receivables are comprised of trade accounts receivable, short-term notes receivable in our wholly-owned subsidiary, CHS Capital, LLC ("CHS Capital"), and other receivables, less an allowance for doubtful accounts. Notes receivable from commercial borrowers are collateralized by various combinations of mortgages, personal property, accounts and notes receivable, inventories and assignments of capital stock from certain regional cooperatives. These loans are originated in various states, primarily in the Upper Midwest region of the United States, the most significant of which include Minnesota, North Dakota and South 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. 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 $164.3 million and $180.0 million at November 30, 2019 , and August 31, 2019 , respectively. The long-term notes receivable are included in other assets on our Condensed Consolidated Balance Sheets. As of November 30, 2019 , and August 31, 2019 , the commercial notes represented 45% and 41% , respectively, and the producer notes represented 55% and 59% , respectively, of total CHS Capital notes receivable. CHS Capital has commitments to extend credit to customers if there are no violations of contractually established conditions. As of November 30, 2019 , CHS Capital's customers had additional available credit of $538.8 million . No significant troubled debt restructuring activity occurred and no third-party customer or borrower accounted for more than 10% of the total receivables balance as of November 30, 2019 , or August 31, 2019 . |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories November 30, 2019 August 31, 2019 (Dollars in thousands) Grain and oilseed $ 1,451,865 $ 1,024,645 Energy 721,887 717,378 Agronomy 1,051,970 954,037 Processed grain and oilseed 102,483 109,900 Other 40,663 48,328 Total inventories $ 3,368,868 $ 2,854,288 As of November 30, 2019 , we valued approximately 14% of inventories, primarily crude oil and refined fuels within our Energy segment, using the lower of cost, determined on the LIFO method, or net realizable value ( 16% as of August 31, 2019 ). If the FIFO method of accounting had been used, inventories would have been higher than the reported amount by $247.2 million and $ 215.0 million as of November 30, 2019 , and August 31, 2019 , respectively. Actual valuation of inventory under the LIFO method can be made only at the end of each year based on 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, 2019 | |
Investments [Abstract] | |
Investments | Investments November 30, 2019 August 31, 2019 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,743,776 $ 2,708,942 Ventura Foods, LLC 378,463 374,516 Ardent Mills, LLC 209,956 209,027 Other equity method investments 256,042 267,247 Other investments 124,964 124,264 Total investments $ 3,713,201 $ 3,683,996 Equity Method Investments Joint ventures and other investments, in which we have significant ownership and influence, but not control, are accounted for in our condensed consolidated financial statements using the equity method of accounting. Our primary equity method investments are described below. In addition to recognition of our share of income from our equity method investments, our equity method investments are evaluated for indicators of other-than-temporary impairment on an ongoing basis in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Other investments consist primarily of investments in cooperatives without readily determinable fair values and are generally measured at cost, unless an impairment or other observable market price change occurs requiring an adjustment. CF Nitrogen We have a $2.7 billion investment in CF Industries Nitrogen, LLC ("CF Nitrogen"), a 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 the CF Nitrogen 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, 2019 and 2018 , equity earnings were $34.8 million and $40.9 million , respectively, and 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 with Wilsey Foods, Inc., a majority-owned subsidiary of MK USA Holdings, Inc., that produces and distributes primarily vegetable oil-based products. Additionally, we have a 12% interest in Ardent Mills, LLC ("Ardent Mills"), which is a joint venture with Cargill Incorporated and ConAgra Foods, Inc., and combines the North American flour milling operations of the three parent companies. We account for Ventura Foods and Ardent Mills as equity method investments, and our share of the results of these equity methods investments are 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, 2019 and 2018 : Three Months Ended 2019 2018 (Dollars in thousands) Net sales $ 2,098,284 $ 2,241,539 Gross profit 346,027 339,937 Net earnings 214,004 272,736 Earnings attributable to CHS Inc. 53,462 67,668 Our investments in other equity method investees are not significant in relation to our condensed consolidated financial statements, either individually or in the aggregate. |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 3 Months Ended |
Nov. 30, 2019 | |
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, 2019 . The table below summarizes our notes payable as of November 30, 2019 , and August 31, 2019 . November 30, 2019 August 31, 2019 (Dollars in thousands) Notes payable $ 1,357,062 $ 1,330,550 CHS Capital notes payable 813,862 825,558 Total notes payable $ 2,170,924 $ 2,156,108 As of November 30, 2019 , our primary line of credit was a five -year unsecured revolving credit facility with a syndicate of domestic and international banks. The credit facility provides a committed amount of $2.75 billion that expires on July 16, 2024. As of November 30, 2019 , and August 31, 2019 , the outstanding balance on this facility was $245.0 million and $335.0 million , respectively. Additionally, on September 30, 2019, CHS Capital entered into a credit agreement with a revolving note. Under this agreement, CHS Capital has available capacity of $150.0 million of which no amount was outstanding as of November 30, 2019. We have a receivables and loans securitization facility ("Securitization Facility") with certain unaffiliated financial institutions ("Purchasers"). Under the Securitization Facility, we and certain of our subsidiaries ("Originators") sell trade accounts and notes receivable ("Receivables") to Cofina Funding, LLC ("Cofina"), a wholly-owned bankruptcy-remote indirect subsidiary of CHS. Cofina in turn transfers the Receivables to the Purchasers, and this arrangement is accounted for as a secured borrowing. 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 26, 2020, but may be extended. On September 6, 2019, we renewed our repurchase facility ("Repurchase Facility") related to the Securitization Facility. Under the Repurchase Facility, we can borrow up to $150.0 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, 2019 , and August 31, 2019 , the outstanding balance under the Repurchase Facility was $150.0 million . Interest expense for the three months ended November 30, 2019 and 2018 , was $35.0 million and $38.9 million , respectively, net of capitalized interest of $2.8 million and $2.1 million , respectively. |
Equities
Equities | 3 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Equities | Equities Changes in Equities Changes in equities for the three months ended November 30, 2019 and 2018 , are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance as of August 31, 2019 $ 3,753,493 $ 29,074 $ 1,206,310 $ 2,264,038 $ (226,933 ) $ 1,584,158 $ 7,390 $ 8,617,530 Reversal of prior year redemption estimates 5,447 — — — — — — 5,447 Redemptions of equities (4,721 ) (54 ) (672 ) — — — — (5,447 ) Preferred stock dividends — — — — — (84,334 ) — (84,334 ) ASC Topic 842 cumulative-effect adjustment — — — — — 33,707 — 33,707 Other, net (8 ) — (39 ) — — (1,312 ) 410 (949 ) Net income — — — — — 177,882 855 178,737 Other comprehensive loss, net of tax — — — — (1,638 ) — — (1,638 ) Estimated 2020 cash patronage refunds — — — — — (28,504 ) — (28,504 ) Estimated 2020 equity redemptions (91,633 ) — — — — — — (91,633 ) Balance as of November 30, 2019 $ 3,662,578 $ 29,020 $ 1,205,599 $ 2,264,038 $ (228,571 ) $ 1,681,597 $ 8,655 $ 8,622,916 Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance as of 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, net of tax — — — — 389 — — 389 Estimated 2019 cash patronage refunds — — — — — (89,344 ) — (89,344 ) Estimated 2019 equity redemptions (50,081 ) — — — — — — (50,081 ) Balance as of November 30, 2018 $ 3,789,158 $ 29,315 $ 740,467 $ 2,264,038 $ (204,232 ) $ 1,663,971 $ 9,375 $ 8,292,092 Preferred Stock Dividends The following is a summary of dividends per share by class of preferred stock for the three months ended November 30, 2019 and 2018 . Due to the timing of dividend declarations during the first quarter of each fiscal year, the per share amount of dividends is comprised of two quarterly dividend declarations for those periods. Three Months Ended Nasdaq symbol 2019 2018 Class of preferred stock: (Dollars per share) 8% Cumulative Redeemable CHSCP 1.00 1.00 Class B Cumulative Redeemable, Series 1 CHSCO 0.98 0.98 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN 0.88 0.88 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM 0.84 0.84 Class B Cumulative Redeemable, Series 4 CHSCL 0.94 0.94 Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the three months ended November 30, 2019 and 2018 : Pension and Other Postretirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustment Total (Dollars in thousands) Balance as of August 31, 2019, net of tax $ (172,478 ) $ 15,297 $ (69,752 ) $ (226,933 ) Other comprehensive income (loss), before tax: Amounts before reclassifications (85 ) (3,331 ) (2,411 ) (5,827 ) Amounts reclassified out 4,977 (4,473 ) — 504 Total other comprehensive income (loss), before tax 4,892 (7,804 ) (2,411 ) (5,323 ) Tax effect 181 1,932 1,572 3,685 Other comprehensive income (loss), net of tax 5,073 (5,872 ) (839 ) (1,638 ) Balance as of November 30, 2019, net of tax $ (167,405 ) $ 9,425 $ (70,591 ) $ (228,571 ) 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 ) 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, marketing, general and administrative expenses and other income (see Note 8, Benefit Plans, for further information). Gains or losses associated with cash flow hedges are recorded as cost of goods sold (see Note 11, Derivative Financial Instruments and Hedging Activities , for further information). Gains or losses on the sale of available-for-sale investments and foreign currency translation reclassifications related to sales of businesses are recorded as other income. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Nov. 30, 2019 | |
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 nonqualified supplemental executive and Board retirement plans. Components of net periodic benefit costs for the three months ended November 30, 2019 and 2018 , are as follows: Three Months Ended November 30, Qualified Pension Benefits Nonqualified Pension Benefits Other Benefits 2019 2018 2019 2018 2019 2018 Components of net periodic benefit costs: (Dollars in thousands) Service cost $ 10,538 $ 9,648 $ 101 $ 78 $ 262 $ 263 Interest cost 5,431 7,099 107 187 187 274 Expected return on assets (11,671 ) (11,242 ) — — — — Prior service cost (credit) amortization 45 42 (28 ) (19 ) (111 ) (139 ) Actuarial loss (gain) amortization 5,396 3,087 25 — (348 ) (407 ) Net periodic benefit cost $ 9,739 $ 8,634 $ 205 $ 246 $ (10 ) $ (9 ) 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 recorded in other income. Employer Contributions Any contributions made during fiscal 2020 will depend primarily on market returns on the pension plan assets and minimum funding level requirements. No contributions were made to the pension plans during the three months ended November 30, 2019 , and we do not currently anticipate being required to make a contribution for our benefit plans in fiscal 2020. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Our effective tax rate for the three months ended November 30, 2019 , was 3.6% , compared to 5.5% for the three months ended November 30, 2018 . The decreased effective tax rate reflects the equity management assumptions used in fiscal 2020. It is reasonably possible that the amount of unrecognized tax benefits could significantly change within the next 12 months. We have ongoing federal, state and international income tax audits in various jurisdictions and are evaluating uncertain tax positions that may be challenged by local tax authorities and not fully sustained. These uncertain tax positions are reviewed on an ongoing basis and adjusted in light of facts and circumstances, including progression of tax audits, developments in case law and closing of statutes of limitation. The total amounts of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of November 30, 2019 , and August 31, 2019 , are $98.7 million and $ 93.3 million, respectively. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We are an integrated agricultural enterprise, providing grain, foods and energy resources to businesses and consumers on a global basis. We provide a wide variety of products and services, from initial agricultural inputs such as fuels, farm supplies, crop nutrient and crop protection products, to agricultural outputs that include grains and oilseeds, grain and oilseed processing and food products, and the production and marketing of ethanol. 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 businesses. 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 quantity of granular urea and urea ammonium nitrate ("UAN") annually from CF Nitrogen. Corporate and Other represents our financing and hedging businesses, which primarily consist of commodities hedging and financial services related to crop production. Our non-consolidated investments in Ventura Foods and Ardent Mills are also included in Corporate and Other. Corporate administrative expenses and interest are allocated to each business segment and Corporate and Other, based on direct usage for services that can be tracked, such as information technology and legal, and other factors or considerations relevant to the costs incurred. Many of our business activities are highly seasonal and operating results vary throughout the year. For example, in our Ag segment, our country operations business generally experiences higher volumes and income during the spring planting season and during the fall harvest season, and our agronomy business generally experiences higher volumes and income during the spring planting season. Our global grain marketing operations are 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 crop-drying seasons. Our revenues, assets and cash flows can be significantly affected by global market prices for commodities such as petroleum products, natural gas, grains, oilseeds, crop nutrients and flour. Changes in market prices for commodities that we purchase without a corresponding change in the selling prices of those products can affect revenues and operating earnings. Commodity prices are affected by a wide range of factors beyond our control, including the weather, crop damage due to plant disease or insects, drought, availability and adequacy of supply, government regulations and policies, world events, and general political and economic conditions. While our revenues and operating results are derived primarily from businesses and operations that are wholly-owned or subsidiaries and limited liability companies in which we have a controlling interest, a portion of our business operations are conducted through companies in which we hold ownership interests of 50% or less or do not control the operations. See Note 5, Investments, for more information on these entities. Reconciling amounts primarily represent the elimination of revenues between segments. Such transactions are executed at market prices to more accurately evaluate the profitability of the individual business segments. Segment information for the three months ended November 30, 2019 and 2018 , is presented in the tables below. Fiscal 2020 results for our Ag segment include results associated with our acquisition of the remaining 75% ownership interest in West Central Distribution, LLC ("WCD") that we did not previously own on March 1, 2019, which are not included in our prior period results. Refer to further details related to our acquisition of the remaining 75% ownership interest in WCD that we did not previously own within Note 15, Acquisitions . Energy Ag Nitrogen Production Corporate Reconciling Total Three Months Ended November 30, 2019: (Dollars in thousands) Revenues, including intersegment revenues $ 2,027,895 $ 5,715,994 $ — $ 15,950 $ (138,354 ) $ 7,621,485 Operating earnings (loss) 161,199 (417 ) (7,823 ) 4,253 — 157,212 Interest expense 374 20,741 12,130 3,838 (2,112 ) 34,971 Other income (964 ) (11,453 ) (1,569 ) (1,624 ) 2,112 (13,498 ) Equity (income) loss from investments (364 ) 4,157 (34,834 ) (18,621 ) — (49,662 ) Income (loss) before income taxes $ 162,153 $ (13,862 ) $ 16,450 $ 20,660 $ — $ 185,401 Intersegment revenues $ (132,472 ) $ (4,139 ) $ — $ (1,743 ) $ 138,354 $ — Total assets as of November 30, 2019 $ 4,449,652 $ 7,108,507 $ 2,761,709 $ 2,894,423 $ — $ 17,214,291 Energy Ag Nitrogen Production Corporate Reconciling Total 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 (986 ) (22,400 ) (1,571 ) (948 ) 771 (25,134 ) Equity (income) loss from investments (73 ) 1,209 (40,915 ) (26,729 ) — (66,508 ) Income before income taxes $ 232,461 $ 80,318 $ 23,679 $ 30,774 $ — $ 367,232 Intersegment revenues $ (148,792 ) $ (3,317 ) $ — $ (1,463 ) $ 153,572 $ — |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Nov. 30, 2019 | |
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, except with respect to certain interest rate swap contracts accounted for as fair value hedges and certain future crude oil purchases that are accounted for as cash flow hedges. Derivative instruments are primarily recorded within other current assets and other current liabilities on our Condensed Consolidated Balance Sheets at fair value as described in Note 12, Fair Value Measurements . Derivatives Not Designated as Hedging Instruments The following tables present the gross fair values of derivative assets, derivative liabilities and margin deposits (cash collateral) recorded on our Condensed Consolidated Balance Sheets, along with 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, 2019 Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting Gross Amount Recognized Cash Collateral Derivative Instruments Net Amount (Dollars in thousands) Derivative Assets Commodity derivatives $ 159,617 $ — $ 27,199 $ 132,418 Foreign exchange derivatives 5,518 — 3,632 1,886 Embedded derivative asset 17,933 — — 17,933 Total $ 183,068 $ — $ 30,831 $ 152,237 Derivative Liabilities Commodity derivatives $ 183,025 $ 3,030 $ 37,749 $ 142,246 Foreign exchange derivatives 19,297 — 3,632 15,665 Total $ 202,322 $ 3,030 $ 41,381 $ 157,911 August 31, 2019 Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting Gross Amount Recognized Cash Collateral Derivative Instruments Net Amount (Dollars in thousands) Derivative Assets Commodity derivatives $ 215,030 $ — $ 58,726 $ 156,304 Foreign exchange derivatives 10,334 — 7,108 3,226 Embedded derivative asset 21,364 — — 21,364 Total $ 246,728 $ — $ 65,834 $ 180,894 Derivative Liabilities Commodity derivatives $ 223,410 $ 4,191 $ 41,647 $ 177,572 Foreign exchange derivatives 20,609 — 7,108 13,501 Total $ 244,019 $ 4,191 $ 48,755 $ 191,073 Derivative assets and liabilities with maturities of 12 months or less are recorded in other current assets and other current liabilities, respectively, on our Condensed Consolidated Balance Sheets. Derivative assets and liabilities with maturities greater than 12 months are recorded in other assets and other liabilities, respectively, on our Condensed Consolidated Balance Sheets. The amount of long-term derivative assets, excluding derivatives designated as cash flow or fair value hedges, recorded on our Condensed Consolidated Balance Sheets at November 30, 2019 , and August 31, 2019 , was $18.6 million and $26.6 million , respectively. The amount of long-term derivative liabilities, excluding derivatives designated as cash flow or fair value hedges, recorded on our Condensed Consolidated Balance Sheets at November 30, 2019 , and August 31, 2019 , was $6.8 million and $7.4 million , respectively. The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Condensed Consolidated Statements of Operations for the three months ended November 30, 2019 and 2018 . Three Months Ended Location of Gain (Loss) 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 42,674 $ (6,448 ) Foreign exchange derivatives Cost of goods sold (10,161 ) 16,056 Foreign exchange derivatives Marketing, general and administrative expenses 1,743 (832 ) Embedded derivative Other income 1,569 1,571 Total $ 35,825 $ 10,347 Commodity Contracts As of November 30, 2019 , and August 31, 2019 , 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 contracts accounted for as derivative instruments. November 30, 2019 August 31, 2019 Long Short Long Short (Units in thousands) Grain and oilseed (bushels) 546,758 733,722 547,096 717,522 Energy products (barrels) 9,705 5,363 13,895 4,663 Processed grain and oilseed (tons) 454 2,753 597 2,454 Crop nutrients (tons) 73 29 76 23 Ocean freight (metric tons) 200 55 295 85 Natural gas (MMBtu) 60 — 130 — Foreign Exchange Contracts We conduct a substantial portion of our business in U.S. dollars, but we are exposed to risks relating to foreign currency fluctuations primarily due to global grain marketing transactions in South America, the Asia Pacific region and Europe, and purchases of products from Canada. We use foreign currency derivative instruments to mitigate the impact of exchange rate fluctuations. Although we have some risk exposure relating to foreign currency transactions, a larger impact with exchange rate fluctuations is 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. The notional amounts of our foreign exchange derivative contracts were $972.2 million and $894.7 million as of November 30, 2019 , and August 31, 2019 , respectively. Embedded Derivative Asset Under the terms of our strategic investment in CF Nitrogen, if the CF Industries credit rating is reduced below certain levels by two of three specified credit ratings agencies, we are entitled to receive a nonrefundable annual payment of $5.0 million from CF Industries. These payments will continue on an annual basis until the date that the 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. Since the CF Industries credit rating was reduced below the specified levels during fiscal 2017, we have received an annual payment of $5.0 million from CF Industries. Gains totaling $1.6 million were recognized in other income in our Condensed Consolidated Statements of Operations for the periods ended November 30, 2019 and 2018 . The fair value of the embedded derivative asset recorded on our Condensed Consolidated Balance Sheet as of November 30, 2019 , was equal to $17.9 million . The current and long-term portions of the embedded derivative asset are included in other current assets and other assets on our Condensed Consolidated Balance Sheets, respectively. See Note 12, Fair Value Measurements, for additional information regarding valuation of the embedded derivative asset. Derivatives Designated as Fair Value or Cash Flow Hedging Strategies Fair Value Hedges As of November 30, 2019 , and August 31, 2019 , we had outstanding interest rate swaps with an aggregate notional amount of $365.0 million designated as fair value hedges of portions of our fixed-rate debt that is due between fiscal 2021 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 item on our Condensed Consolidated Balance Sheets in which they are recorded. Balance Sheet Location November 30, 2019 August 31, 2019 (Dollars in thousands) Other assets $ 6,886 $ 9,841 The following table sets forth the pretax gains (losses) on derivatives accounted for as hedging instruments that have been included in our Condensed Consolidated Statements of Operations for the three months ended November 30, 2019 and 2018 . Three Months Ended Gain (Loss) on Fair Value Hedging Relationships Location of Gain (Loss) 2019 2018 (Dollars in thousands) Interest rate swaps Interest expense $ (2,955 ) $ (955 ) Hedged item Interest expense 2,955 955 Total $ — $ — The following table provides the location and carrying amount of hedged liabilities in our Condensed Consolidated Balance Sheets as of November 30, 2019 , and August 31, 2019 . November 30, 2019 August 31, 2019 Balance Sheet Location Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in Carrying Amount of Hedged Liabilities (Dollars in thousands) Long-term debt $ 331,435 $ 33,565 $ 334,389 $ 30,611 Cash Flow Hedges In fiscal 2018, our Energy segment began designating certain 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, 2019 , and August 31, 2019, the aggregate notional amount of cash flow hedges was 9.1 million and 7.7 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 Condensed Consolidated Balance Sheets in which they are recorded. Derivative Assets Derivative Liabilities Balance Sheet Location November 30, 2019 August 31, 2019 Balance Sheet Location November 30, 2019 August 31, 2019 (Dollars in thousands) (Dollars in thousands) Other current assets $ 26,112 $ 33,179 Other current liabilities $ 5,387 $ 5,351 The following table presents the pretax losses recorded in other comprehensive income relating to cash flow hedges for the three months ended November 30, 2019 and 2018 : Three Months Ended 2019 2018 (Dollars in thousands) Commodity derivatives $ (7,103 ) $ (2,463 ) The following table presents the pretax gains relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Condensed Consolidated Statements of Operations for the three months ended November 30, 2019 and 2018 : Three Months Ended Location of Gain 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 4,852 $ 1,900 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 30, 2019 | |
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 use of observable inputs and minimize 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 on 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, 2019 , and August 31, 2019 , are as follows: November 30, 2019 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 $ 26,343 $ 159,387 $ — $ 185,730 Foreign exchange derivatives — 5,606 — 5,606 Interest rate swap derivatives — 6,886 — 6,886 Deferred compensation assets 46,754 — — 46,754 Embedded derivative asset — 17,933 — 17,933 Segregated investments 91,080 — — 91,080 Other assets 6,082 — — 6,082 Total $ 170,259 $ 189,812 $ — $ 360,071 Liabilities Commodity derivatives $ 36,032 $ 152,380 $ — $ 188,412 Foreign exchange derivatives — 19,297 — 19,297 Total $ 36,032 $ 171,677 $ — $ 207,709 August 31, 2019 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 $ 67,817 $ 180,392 $ — $ 248,209 Foreign exchange derivatives — 10,339 — 10,339 Interest rate swap derivatives — 9,841 — 9,841 Deferred compensation assets 40,368 — — 40,368 Embedded derivative asset — 21,364 — 21,364 Segregated investments 77,777 — — 77,777 Other assets 6,519 — — 6,519 Total $ 192,481 $ 221,936 $ — $ 414,417 Liabilities Commodity derivatives $ 40,305 $ 188,455 $ — $ 228,760 Foreign exchange derivatives — 20,701 — 20,701 Total $ 40,305 $ 209,156 $ — $ 249,461 Commodity and foreign exchange 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. 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 Condensed 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 using 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 Condensed Consolidated Statements of Operations as a component of interest expense. See Note 11, Derivative Financial Instruments and Hedging Activities, for additional information about interest rate swaps designated as fair value and cash flow hedges. Deferred compensation and other assets . Our deferred compensation investments consist primarily of rabbi trust assets that 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 Condensed 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 to our investment in CF Nitrogen. The inputs used in the fair value measurement include the probability of future upgrades and downgrades of the CF Industries credit rating based on historical credit rating movements of other public companies and the discount rates applied to potential annual payments based on applicable historical and current yield coupon rates. Based on these observable inputs, our fair value measurement is classified within Level 2. See Note 11, Derivative Financial Instruments and Hedging Activities, for additional information. Segregated investments. Our segregated investments are comprised of U.S. Treasury securities, which are valued using quoted market prices and classified within Level 1. There were no material transfers between Level 1, Level 2 and Level 3 assets and liabilities during the three months ended November 30, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2019 | |
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. To meet 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 expenses in our Condensed 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 aggregate, will not have a material effect on our condensed consolidated financial statements 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 net income for any fiscal period; however, we believe any resulting liabilities, individually or in aggregate, will not have a material effect on our condensed consolidated financial statements during any fiscal year. Guarantees We are a guarantor for lines of credit and performance obligations of related, non-consolidated companies. Our bank covenants allow maximum guarantees of $1.0 billion , of which $178.3 million were outstanding on November 30, 2019 . 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, 2019 . |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases We adopted ASC Topic 842 on September 1, 2019, using the modified retrospective approach. In addition, we used the additional optional transition method and package of practical expedients in the period of adoption without retrospective adjustment to previous periods presented, although we elected not to apply the hindsight practical expedient. As a result of using the additional optional transition method and following a modified retrospective approach, prior periods have not been restated, and a $33.7 million cumulative-effect adjustment was recorded to increase the opening balance of capital reserves as of the adoption date related to recognition of previously deferred gains associated with the sale-leaseback of our primary corporate office building located in Inver Grove Heights, Minnesota. Our accounting for finance leases (previously referred to as capital leases) remains substantially unchanged; however, adoption of ASC Topic 842 resulted in recognition of operating lease right of use assets and associated lease liabilities of $268.4 million and $267.0 million , respectively, as of September 1, 2019. Adoption of ASC Topic 842 did not have a material impact on our Condensed Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows. We assess arrangements at inception to determine whether they contain a lease. An arrangement is considered to contain a lease if it conveys the right to control the use of an asset for a period of time in exchange for consideration. The right to control the use of an asset must include both (a) the right to obtain substantially all economic benefits associated with an identified asset and (b) the right to direct how and for what purpose the identified asset is used. Certain arrangements provide us with the right to use an identified asset; however, most of these arrangements are not considered to represent a lease as we do not control how and for what purpose the identified asset is used. For example, our supply agreements, warehousing and distribution services agreements, and transportation services agreements generally do not contain leases. We lease property, plant and equipment used in our operations primarily under operating lease agreements and, to a lesser extent, under finance lease agreements. Our operating leases are primarily for railcars, equipment, vehicles and office space, many of which contain renewal options and escalation clauses. Renewal options are included as part of the right of use asset and liability when it is reasonably certain that we will exercise the renewal option; however, renewal options are generally not included as we are not reasonably certain to exercise such options. Operating lease right of use assets and liabilities for operating leases are recognized at the lease commencement date for leases in excess of 12 months based on the present value of lease payments over the lease term. For measurement and classification of lease agreements, lease and non-lease components are grouped into a single lease component for all asset classes. Variable lease payments are excluded from measurement of right of use assets and liabilities and generally include payments for non-lease components such as maintenance costs, payments for leased assets beyond their noncancelable lease term and payments for other non-lease components such as sales tax. The discount rate used to calculate present value is our collateralized incremental borrowing rate or, if available, the rate implicit in the lease. The incremental borrowing rate is determined for each lease based primarily on its lease term. Certain lease arrangements include rental payments adjusted annually based on changes in an inflation index. Our lease arrangements generally do not contain residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term. The components of lease expense recognized in our Condensed Consolidated Statements of Operations are as follows: Three Months Ended November 30, 2019 (Dollars in thousands) Operating lease expense $ 16,480 Finance lease expense: Amortization of assets 2,189 Interest on lease liabilities 224 Short-term lease expense 3,343 Variable lease expense 116 Total net lease expense* $ 22,352 *Income related to sub-lease activity is not material and has been excluded from the table above. Supplemental balance sheet information related to operating and finance leases is as follows: Balance Sheet Location November 30, 2019 (Dollars in thousands) Operating leases Assets Operating lease right of use assets Other assets $ 259,028 Liabilities Current operating lease liabilities Accrued expenses 53,868 Long-term operating lease liabilities Other liabilities 204,305 Total operating lease liabilities $ 258,173 Finance leases Assets Finance lease assets Property, plant and equipment $ 40,536 Liabilities Current finance lease liabilities Current portion of long-term debt 6,049 Long-term finance lease liabilities Long-term debt 21,092 Total finance lease liabilities $ 27,141 Weighted average remaining lease term (in years) Operating leases 8.4 Finance leases 6.3 Weighted average discount rate Operating leases 3.13 % Finance leases 3.34 % Supplemental cash flow and other information related to operating and finance leases is as follows: Three Months Ended November 30, 2019 (Dollars in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 15,722 Operating cash flows from finance leases 224 Financing cash flows from finance leases 1,673 Supplemental noncash information: Right of use assets obtained in exchange for lease liabilities 4,724 Maturities of lease liabilities as of November 30, 2019 , were as follows: November 30, 2019 Finance Leases Operating Leases (Dollars in thousands) Remainder of fiscal 2020 $ 4,790 $ 45,821 Fiscal 2021 6,190 53,054 Fiscal 2022 5,045 40,159 Fiscal 2023 4,452 31,851 Fiscal 2024 2,685 24,958 After fiscal 2024 7,228 105,730 Total maturities of lease liabilities 30,390 301,573 Less amounts representing interest 3,249 43,400 Present value of future minimum lease payments 27,141 258,173 Less current obligations 6,049 53,868 Long-term obligations $ 21,092 $ 204,305 Disclosures Related to Periods Prior to Adoption of New Lease Standard The following pertains to previously disclosed information from Note 6, Property, Plant and Equipment , and Note 15, Commitments and Contingencies , contained in our Annual Report on Form 10-K for the fiscal year ended August 31, 2019 , which incorporates information about leases now in the scope of ASC Topic 842 discussed above. Total rental expense for operating leases was $113.3 million, $88.5 million and $81.3 million for the years ended August 31, 2019 , 2018 and 2017, respectively. Various leases under capital lease totaled $62.7 million and $50.0 million as of August 31, 2019 and 2018, respectively. Accumulated amortization on assets under capital leases was $20.6 million and $18.9 million as of August 31, 2019 and 2018, respectively. Minimum future lease payments required under noncancelable capital and operating leases as of August 31, 2019 , were as follows: August 31, 2019 Capital Leases Operating Leases (Dollars in thousands) Fiscal 2020 $ 6,761 $ 87,168 Fiscal 2021 6,199 57,381 Fiscal 2022 5,021 43,665 Fiscal 2023 4,548 34,328 Fiscal 2024 2,638 26,793 Thereafter 6,517 92,653 Total minimum future lease payments 31,684 $ 341,988 Less amount representing interest 3,445 Present value of net minimum lease payments $ 28,239 |
Acquisitions (Notes)
Acquisitions (Notes) | 3 Months Ended |
Nov. 30, 2019 | |
Business Acquisition [Line Items] | |
Business Combination Disclosure [Text Block] | Note 15 Acquisitions On March 1, 2019, we completed our acquisition of the remaining 75% ownership interest in WCD, a full-service wholesale distributor of agronomy products that operates primarily in the United States. The purchase price was equal to $113.4 million, including $6.7 million that was previously paid and $106.7 million paid on March 1, 2019, of which the net cash flows were reduced by $8.0 million of cash acquired. Prior to completing this acquisition and through February 28, 2019, we had a 25% ownership interest in WCD, which was accounted for under the equity method of accounting whereby we shared in the economics of WCD earnings on a pro-rata basis. By acquiring the remaining ownership interest in WCD, we were able to expand our agronomy platform, position ourselves as a leading supply partner to cooperatives and retailers serving growers throughout the United States and add value for our owners. The WCD enterprise value was determined using a discounted cash flow model in which the fair value of the business was estimated based on the earning capacity of WCD. We estimated the fair value of the previously held equity interest to be equal to 25% of the total fair value of WCD, which was implied based on the price we paid for the remaining 75% interest. The acquisition-date fair value of the previous equity interest was $37.8 million and is included in measurement of the consideration transferred. We recognized a gain of approximately $19.1 million as a result of remeasuring our prior equity interest in WCD held before acquisition of the remaining 75% interest. The gain was included in other income in our Condensed Consolidated Statements of Operations for the third quarter of fiscal 2019. Preliminary allocation of the purchase price for this transaction resulted in goodwill of $61.4 million , which is nondeductible for tax purposes, and definite-lived intangible assets of $47.2 million . As this acquisition is not considered to have a material impact on our financial statements, pro forma results of operations are not presented. The acquisition resulted in fair value measurements that are not on a recurring basis and did not have a material impact on our Condensed Consolidated Statements of Operations. Purchase accounting has not been finalized and preliminary fair values assigned to the net assets acquired are as follows: (Dollars in thousands) Cash $ 8,033 Current assets 708,764 Property, plant and equipment 44,064 Goodwill 61,358 Intangible assets 47,200 Other assets 55 Liabilities (718,262 ) Total net assets acquired $ 151,212 Operating results for WCD are included in our Condensed Consolidated Statements of Operations from the day of the acquisition on March 1, 2019, including revenues and a loss before income taxes of $77.8 million and $0.3 million , respectively, for the three months ended November 30, 2019 . |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | These unaudited condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary for a fair statement of our financial position, results of operations and cash flows for the 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 the seasonal nature of our businesses, among other things. Our unaudited condensed consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q |
Consolidation, Policy | should be read in conjunction with the consolidated financial statements and notes thereto for the year ended August 31, 2019 , included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC"). |
Significant Accounting Policies [Text Block] | Significant Accounting Policies The following significant accounting policy was updated or changed since our Annual Report on Form 10-K for the year ended August 31, 2019 . Leases As described in the "Recent Accounting Pronouncements" section, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases , as amended (collectively "Accounting Standards Codification ("ASC") Topic 842"), on September 1, 2019, using the modified retrospective approach. Our accounting policies and additional disclosures with respect to ASC Topic 842 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Except for the recent accounting pronouncements described below, other recent accounting pronouncements are not expected to have a material impact on our condensed consolidated financial statements. Adopted We adopted ASC Topic 842 as of September 1, 2019, using the modified retrospective approach. In addition, we used the additional optional transition method and package of practical expedients in the period of adoption without retrospective adjustment to previous periods presented, although we elected not to apply the hindsight practical expedient available under the standard. As a result of using the modified retrospective method, prior periods have not been restated, and a $33.7 million cumulative-effect adjustment was recorded to increase the opening balance of capital reserves as of the adoption date related to recognition of previously deferred gains associated with the sale-leaseback of our primary corporate office building located in Inver Grove Heights, Minnesota. Additionally, adoption of ASC Topic 842 resulted in the recognition of operating lease right of use assets and associated lease liabilities of $268.4 million and $267.0 million , respectively, as of September 1, 2019. Adoption of ASC Topic 842 did not have a material impact on our Condensed Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows. Additional information and further disclosures related to our leases and lease-related financial statement amounts is included within Note 14, Leases. Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 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 capital reserves 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 adoption will have on our condensed consolidated financial statements. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table presents revenues recognized under ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), disaggregated by reportable segment, as well as the amount of revenues recognized under ASC Topic 815, Derivatives and Hedging ("ASC Topic 815"), and other applicable accounting guidance for the three months ended November 30, 2019 and 2018 . Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 842, Leases , and ASC Topic 470, Debt , that fall outside the scope of ASC Topic 606. ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues Three Months Ended November 30, 2019: (Dollars in thousands) Energy $ 1,693,848 $ 201,575 $ — $ 1,895,423 Ag 1,358,626 4,316,087 37,142 5,711,855 Corporate and Other 5,541 — 8,666 14,207 Total revenues $ 3,058,015 $ 4,517,662 $ 45,808 $ 7,621,485 Three Months Ended November 30, 2018: 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 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | November 30, 2019 August 31, 2019 (Dollars in thousands) Trade accounts receivable $ 1,706,564 $ 1,803,284 CHS Capital short-term notes receivable 606,605 592,909 Other 497,880 511,821 Gross receivables 2,811,049 2,908,014 Less: allowances and reserves 179,675 176,805 Total receivables $ 2,631,374 $ 2,731,209 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | November 30, 2019 August 31, 2019 (Dollars in thousands) Grain and oilseed $ 1,451,865 $ 1,024,645 Energy 721,887 717,378 Agronomy 1,051,970 954,037 Processed grain and oilseed 102,483 109,900 Other 40,663 48,328 Total inventories $ 3,368,868 $ 2,854,288 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Table Text Block] | November 30, 2019 August 31, 2019 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,743,776 $ 2,708,942 Ventura Foods, LLC 378,463 374,516 Ardent Mills, LLC 209,956 209,027 Other equity method investments 256,042 267,247 Other investments 124,964 124,264 Total investments $ 3,713,201 $ 3,683,996 |
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, 2019 and 2018 : Three Months Ended 2019 2018 (Dollars in thousands) Net sales $ 2,098,284 $ 2,241,539 Gross profit 346,027 339,937 Net earnings 214,004 272,736 Earnings attributable to CHS Inc. 53,462 67,668 |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | November 30, 2019 August 31, 2019 (Dollars in thousands) Notes payable $ 1,357,062 $ 1,330,550 CHS Capital notes payable 813,862 825,558 Total notes payable $ 2,170,924 $ 2,156,108 |
Schedule of Interest,Net | Interest expense for the three months ended November 30, 2019 and 2018 , was $35.0 million and $38.9 million , respectively, net of capitalized interest of $2.8 million and $2.1 million , respectively. |
Equities (Tables)
Equities (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Class of Stock [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Pension and Other Postretirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustment Total (Dollars in thousands) Balance as of August 31, 2019, net of tax $ (172,478 ) $ 15,297 $ (69,752 ) $ (226,933 ) Other comprehensive income (loss), before tax: Amounts before reclassifications (85 ) (3,331 ) (2,411 ) (5,827 ) Amounts reclassified out 4,977 (4,473 ) — 504 Total other comprehensive income (loss), before tax 4,892 (7,804 ) (2,411 ) (5,323 ) Tax effect 181 1,932 1,572 3,685 Other comprehensive income (loss), net of tax 5,073 (5,872 ) (839 ) (1,638 ) Balance as of November 30, 2019, net of tax $ (167,405 ) $ 9,425 $ (70,591 ) $ (228,571 ) 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 ) |
Schedule of Stockholders Equity | Changes in equities for the three months ended November 30, 2019 and 2018 , are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance as of August 31, 2019 $ 3,753,493 $ 29,074 $ 1,206,310 $ 2,264,038 $ (226,933 ) $ 1,584,158 $ 7,390 $ 8,617,530 Reversal of prior year redemption estimates 5,447 — — — — — — 5,447 Redemptions of equities (4,721 ) (54 ) (672 ) — — — — (5,447 ) Preferred stock dividends — — — — — (84,334 ) — (84,334 ) ASC Topic 842 cumulative-effect adjustment — — — — — 33,707 — 33,707 Other, net (8 ) — (39 ) — — (1,312 ) 410 (949 ) Net income — — — — — 177,882 855 178,737 Other comprehensive loss, net of tax — — — — (1,638 ) — — (1,638 ) Estimated 2020 cash patronage refunds — — — — — (28,504 ) — (28,504 ) Estimated 2020 equity redemptions (91,633 ) — — — — — — (91,633 ) Balance as of November 30, 2019 $ 3,662,578 $ 29,020 $ 1,205,599 $ 2,264,038 $ (228,571 ) $ 1,681,597 $ 8,655 $ 8,622,916 Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balance as of 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, net of tax — — — — 389 — — 389 Estimated 2019 cash patronage refunds — — — — — (89,344 ) — (89,344 ) Estimated 2019 equity redemptions (50,081 ) — — — — — — (50,081 ) Balance as of November 30, 2018 $ 3,789,158 $ 29,315 $ 740,467 $ 2,264,038 $ (204,232 ) $ 1,663,971 $ 9,375 $ 8,292,092 |
Preferred Stock [Text Block] | Preferred Stock Dividends The following is a summary of dividends per share by class of preferred stock for the three months ended November 30, 2019 and 2018 . Due to the timing of dividend declarations during the first quarter of each fiscal year, the per share amount of dividends is comprised of two quarterly dividend declarations for those periods. Three Months Ended Nasdaq symbol 2019 2018 Class of preferred stock: (Dollars per share) 8% Cumulative Redeemable CHSCP 1.00 1.00 Class B Cumulative Redeemable, Series 1 CHSCO 0.98 0.98 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN 0.88 0.88 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM 0.84 0.84 Class B Cumulative Redeemable, Series 4 CHSCL 0.94 0.94 |
Benefit Plans Schedule of Net B
Benefit Plans Schedule of Net Benefit Costs (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs of Assumptions Used | Three Months Ended November 30, Qualified Pension Benefits Nonqualified Pension Benefits Other Benefits 2019 2018 2019 2018 2019 2018 Components of net periodic benefit costs: (Dollars in thousands) Service cost $ 10,538 $ 9,648 $ 101 $ 78 $ 262 $ 263 Interest cost 5,431 7,099 107 187 187 274 Expected return on assets (11,671 ) (11,242 ) — — — — Prior service cost (credit) amortization 45 42 (28 ) (19 ) (111 ) (139 ) Actuarial loss (gain) amortization 5,396 3,087 25 — (348 ) (407 ) Net periodic benefit cost $ 9,739 $ 8,634 $ 205 $ 246 $ (10 ) $ (9 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Energy Ag Nitrogen Production Corporate Reconciling Total Three Months Ended November 30, 2019: (Dollars in thousands) Revenues, including intersegment revenues $ 2,027,895 $ 5,715,994 $ — $ 15,950 $ (138,354 ) $ 7,621,485 Operating earnings (loss) 161,199 (417 ) (7,823 ) 4,253 — 157,212 Interest expense 374 20,741 12,130 3,838 (2,112 ) 34,971 Other income (964 ) (11,453 ) (1,569 ) (1,624 ) 2,112 (13,498 ) Equity (income) loss from investments (364 ) 4,157 (34,834 ) (18,621 ) — (49,662 ) Income (loss) before income taxes $ 162,153 $ (13,862 ) $ 16,450 $ 20,660 $ — $ 185,401 Intersegment revenues $ (132,472 ) $ (4,139 ) $ — $ (1,743 ) $ 138,354 $ — Total assets as of November 30, 2019 $ 4,449,652 $ 7,108,507 $ 2,761,709 $ 2,894,423 $ — $ 17,214,291 Energy Ag Nitrogen Production Corporate Reconciling Total 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 (986 ) (22,400 ) (1,571 ) (948 ) 771 (25,134 ) Equity (income) loss from investments (73 ) 1,209 (40,915 ) (26,729 ) — (66,508 ) Income before income taxes $ 232,461 $ 80,318 $ 23,679 $ 30,774 $ — $ 367,232 Intersegment revenues $ (148,792 ) $ (3,317 ) $ — $ (1,463 ) $ 153,572 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Reconciliation of gross and net fair values of assets and liabilities subject to offsetting arrangements | November 30, 2019 Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting Gross Amount Recognized Cash Collateral Derivative Instruments Net Amount (Dollars in thousands) Derivative Assets Commodity derivatives $ 159,617 $ — $ 27,199 $ 132,418 Foreign exchange derivatives 5,518 — 3,632 1,886 Embedded derivative asset 17,933 — — 17,933 Total $ 183,068 $ — $ 30,831 $ 152,237 Derivative Liabilities Commodity derivatives $ 183,025 $ 3,030 $ 37,749 $ 142,246 Foreign exchange derivatives 19,297 — 3,632 15,665 Total $ 202,322 $ 3,030 $ 41,381 $ 157,911 August 31, 2019 Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting Gross Amount Recognized Cash Collateral Derivative Instruments Net Amount (Dollars in thousands) Derivative Assets Commodity derivatives $ 215,030 $ — $ 58,726 $ 156,304 Foreign exchange derivatives 10,334 — 7,108 3,226 Embedded derivative asset 21,364 — — 21,364 Total $ 246,728 $ — $ 65,834 $ 180,894 Derivative Liabilities Commodity derivatives $ 223,410 $ 4,191 $ 41,647 $ 177,572 Foreign exchange derivatives 20,609 — 7,108 13,501 Total $ 244,019 $ 4,191 $ 48,755 $ 191,073 |
Derivatives Not Designated as Hedging Instruments | The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Condensed Consolidated Statements of Operations for the three months ended November 30, 2019 and 2018 . Three Months Ended Location of Gain (Loss) 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 42,674 $ (6,448 ) Foreign exchange derivatives Cost of goods sold (10,161 ) 16,056 Foreign exchange derivatives Marketing, general and administrative expenses 1,743 (832 ) Embedded derivative Other income 1,569 1,571 Total $ 35,825 $ 10,347 |
Schedule of Derivative Instruments, Purchase and Sales Contracts | all outstanding commodity contracts accounted for as derivative instruments. November 30, 2019 August 31, 2019 Long Short Long Short (Units in thousands) Grain and oilseed (bushels) 546,758 733,722 547,096 717,522 Energy products (barrels) 9,705 5,363 13,895 4,663 Processed grain and oilseed (tons) 454 2,753 597 2,454 Crop nutrients (tons) 73 29 76 23 Ocean freight (metric tons) 200 55 295 85 Natural gas (MMBtu) 60 — 130 — |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of our derivative interest rate swap instruments designated as fair value hedges and the line item on our Condensed Consolidated Balance Sheets in which they are recorded. Balance Sheet Location November 30, 2019 August 31, 2019 (Dollars in thousands) Other assets $ 6,886 $ 9,841 The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the line items on our Condensed Consolidated Balance Sheets in which they are recorded. Derivative Assets Derivative Liabilities Balance Sheet Location November 30, 2019 August 31, 2019 Balance Sheet Location November 30, 2019 August 31, 2019 (Dollars in thousands) (Dollars in thousands) Other current assets $ 26,112 $ 33,179 Other current liabilities $ 5,387 $ 5,351 |
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 Condensed Consolidated Statements of Operations for the three months ended November 30, 2019 and 2018 . Three Months Ended Gain (Loss) on Fair Value Hedging Relationships Location of Gain (Loss) 2019 2018 (Dollars in thousands) Interest rate swaps Interest expense $ (2,955 ) $ (955 ) Hedged item Interest expense 2,955 955 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 Condensed Consolidated Balance Sheets as of November 30, 2019 , and August 31, 2019 . November 30, 2019 August 31, 2019 Balance Sheet Location Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in Carrying Amount of Hedged Liabilities (Dollars in thousands) Long-term debt $ 331,435 $ 33,565 $ 334,389 $ 30,611 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table presents the pretax losses recorded in other comprehensive income relating to cash flow hedges for the three months ended November 30, 2019 and 2018 : Three Months Ended 2019 2018 (Dollars in thousands) Commodity derivatives $ (7,103 ) $ (2,463 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the pretax gains relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Condensed Consolidated Statements of Operations for the three months ended November 30, 2019 and 2018 : Three Months Ended Location of Gain 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 4,852 $ 1,900 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | November 30, 2019 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 $ 26,343 $ 159,387 $ — $ 185,730 Foreign exchange derivatives — 5,606 — 5,606 Interest rate swap derivatives — 6,886 — 6,886 Deferred compensation assets 46,754 — — 46,754 Embedded derivative asset — 17,933 — 17,933 Segregated investments 91,080 — — 91,080 Other assets 6,082 — — 6,082 Total $ 170,259 $ 189,812 $ — $ 360,071 Liabilities Commodity derivatives $ 36,032 $ 152,380 $ — $ 188,412 Foreign exchange derivatives — 19,297 — 19,297 Total $ 36,032 $ 171,677 $ — $ 207,709 August 31, 2019 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 $ 67,817 $ 180,392 $ — $ 248,209 Foreign exchange derivatives — 10,339 — 10,339 Interest rate swap derivatives — 9,841 — 9,841 Deferred compensation assets 40,368 — — 40,368 Embedded derivative asset — 21,364 — 21,364 Segregated investments 77,777 — — 77,777 Other assets 6,519 — — 6,519 Total $ 192,481 $ 221,936 $ — $ 414,417 Liabilities Commodity derivatives $ 40,305 $ 188,455 $ — $ 228,760 Foreign exchange derivatives — 20,701 — 20,701 Total $ 40,305 $ 209,156 $ — $ 249,461 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Lease expense is recognized on a straight-line basis over the lease term. The components of lease expense recognized in our Condensed Consolidated Statements of Operations are as follows: Three Months Ended November 30, 2019 (Dollars in thousands) Operating lease expense $ 16,480 Finance lease expense: Amortization of assets 2,189 Interest on lease liabilities 224 Short-term lease expense 3,343 Variable lease expense 116 Total net lease expense* $ 22,352 *Income related to sub-lease activity is not material and has been excluded from the table above. |
Lease Balance Sheet disclosure [Table Text Block] | Supplemental balance sheet information related to operating and finance leases is as follows: Balance Sheet Location November 30, 2019 (Dollars in thousands) Operating leases Assets Operating lease right of use assets Other assets $ 259,028 Liabilities Current operating lease liabilities Accrued expenses 53,868 Long-term operating lease liabilities Other liabilities 204,305 Total operating lease liabilities $ 258,173 Finance leases Assets Finance lease assets Property, plant and equipment $ 40,536 Liabilities Current finance lease liabilities Current portion of long-term debt 6,049 Long-term finance lease liabilities Long-term debt 21,092 Total finance lease liabilities $ 27,141 Weighted average remaining lease term (in years) Operating leases 8.4 Finance leases 6.3 Weighted average discount rate Operating leases 3.13 % Finance leases 3.34 % |
Lease Cash flow and other information disclosure [Table Text Block] | Supplemental cash flow and other information related to operating and finance leases is as follows: Three Months Ended November 30, 2019 (Dollars in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 15,722 Operating cash flows from finance leases 224 Financing cash flows from finance leases 1,673 Supplemental noncash information: Right of use assets obtained in exchange for lease liabilities 4,724 |
Lease liability maturity [Table Text Block] | Maturities of lease liabilities as of November 30, 2019 , were as follows: November 30, 2019 Finance Leases Operating Leases (Dollars in thousands) Remainder of fiscal 2020 $ 4,790 $ 45,821 Fiscal 2021 6,190 53,054 Fiscal 2022 5,045 40,159 Fiscal 2023 4,452 31,851 Fiscal 2024 2,685 24,958 After fiscal 2024 7,228 105,730 Total maturities of lease liabilities 30,390 301,573 Less amounts representing interest 3,249 43,400 Present value of future minimum lease payments 27,141 258,173 Less current obligations 6,049 53,868 Long-term obligations $ 21,092 $ 204,305 |
Schedule of future minimum payments for capital and operating leases [Table Text Block] | Minimum future lease payments required under noncancelable capital and operating leases as of August 31, 2019 , were as follows: August 31, 2019 Capital Leases Operating Leases (Dollars in thousands) Fiscal 2020 $ 6,761 $ 87,168 Fiscal 2021 6,199 57,381 Fiscal 2022 5,021 43,665 Fiscal 2023 4,548 34,328 Fiscal 2024 2,638 26,793 Thereafter 6,517 92,653 Total minimum future lease payments 31,684 $ 341,988 Less amount representing interest 3,445 Present value of net minimum lease payments $ 28,239 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (Dollars in thousands) Cash $ 8,033 Current assets 708,764 Property, plant and equipment 44,064 Goodwill 61,358 Intangible assets 47,200 Other assets 55 Liabilities (718,262 ) Total net assets acquired $ 151,212 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Sep. 01, 2019 |
Accounting Policies [Abstract] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 33,700 | |
Operating Lease, Right-of-Use Asset | $ 259,028 | 268,400 |
Operating Lease, Liability | $ 258,173 | $ 267,000 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized | $ 92 | $ 95.2 | |
Contract liabilities | $ 205 | $ 207.5 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 7,621,485 | $ 8,484,289 |
Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,895,423 | 2,161,288 |
Ag | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,711,855 | 6,305,397 |
Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,207 | 17,604 |
ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,058,015 | 3,301,250 |
ASC 606 | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,693,848 | 1,940,190 |
ASC 606 | Ag | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,358,626 | 1,355,826 |
ASC 606 | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,541 | 5,234 |
ASC 815 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,517,662 | 5,134,526 |
ASC 815 | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 201,575 | 221,098 |
ASC 815 | Ag | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,316,087 | 4,913,428 |
ASC 815 | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other Guidance | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 45,808 | 48,513 |
Other Guidance | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other Guidance | Ag | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 37,142 | 36,143 |
Other Guidance | Corporate and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 8,666 | $ 12,370 |
Receivables - Schedule of Rece
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,706,564 | $ 1,803,284 |
CHS Capital short-term notes receivable | 606,605 | 592,909 |
Other | 497,880 | 511,821 |
Receivables, gross | 2,811,049 | 2,908,014 |
Less: allowances and reserves | 179,675 | 176,805 |
Total receivables | $ 2,631,374 | $ 2,731,209 |
Receivables - Narrative (Detai
Receivables - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2019 | Aug. 31, 2019 | |
Notes Receivable, Long-Term | ||
CHS Capital long-term notes receivable additional available credit of counterparty | $ 538.8 | |
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 | $ 164.3 | $ 180 |
Commercial Notes to Notes and Loans Receivable, Net, Percentage | 45.00% | 41.00% |
Producer Notes to Notes and Loans Receivable, Net, Percentage | 55.00% | 59.00% |
Inventories - Schedule of Inve
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Grain and oilseed | $ 1,451,865 | $ 1,024,645 |
Energy | 721,887 | 717,378 |
Agronomy | 1,051,970 | 954,037 |
Processed grain and oilseed | 102,483 | 109,900 |
Other | 40,663 | 48,328 |
Total inventories | $ 3,368,868 | $ 2,854,288 |
Inventories - Narrative (Detai
Inventories - Narrative (Details) - USD ($) $ in Millions | Nov. 30, 2019 | Aug. 31, 2019 |
Inventory Disclosure [Abstract] | ||
LIFO inventory, difference amount had FIFO inventory valuation method been used | $ 247.2 | $ 215 |
Percentage of LIFO inventory | 14.00% | 16.00% |
Investments - Narrative (Detai
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2019USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Equity (income) loss from investments | $ (49,662) | $ (66,508) | |
Cost Method Investments | 124,964 | $ 124,264 | |
Investments | 3,713,201 | 3,683,996 | |
CF Nitrogen LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Equity Method Investments | $ 2,700,000 | ||
Ownership percentage | 10.00% | ||
Equity Method Investments | $ 2,743,776 | 2,708,942 | |
Ventura Foods, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 378,463 | 374,516 | |
Ardent Mills LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 209,956 | $ 209,027 | |
Nitrogen Production [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity (income) loss from investments | $ (34,834) | (40,915) | |
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 | $ (18,621) | (26,729) | |
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 | $ 4,157 | $ 1,209 |
Investments Equity Method inves
Investments Equity Method investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Net income (loss) attributable to CHS Inc. | $ 177,882 | $ 347,504 | |
Other Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 256,042 | $ 267,247 | |
Ardent Mills, Ventura, CF Nitrogen [Member] [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net Sales | 2,098,284 | 2,241,539 | |
Gross Profit | 346,027 | 339,937 | |
Net earnings | 214,004 | 272,736 | |
Net income (loss) attributable to CHS Inc. | 53,462 | $ 67,668 | |
CF Nitrogen LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 2,743,776 | $ 2,708,942 |
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, 2019 | Aug. 31, 2019 |
Debt Instrument [Line Items] | ||
Notes payable | $ 2,170,924 | $ 2,156,108 |
Notes payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 1,357,062 | 1,330,550 |
CHS Capital notes payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 813,862 | $ 825,558 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 35 | $ 38.9 | |
Capitalized interest | $ 2.8 | $ 2.1 | |
Five-Year Revolving Facilities | Line of Credit | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 5 years | ||
Current borrowing capacity | $ 2,750 | ||
Outstanding balance | 245 | $ 335 | |
Capital Support Agreement [Member] | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Current borrowing capacity | 150 | ||
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 | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 8,617,530 | $ 8,165,028 |
Reversal of prior year patronage and redemption estimates | 5,447 | 24,072 |
Redemptions of equities | (5,447) | (24,072) |
Preferred stock dividends | (84,334) | (84,334) |
ASC Topic 842 cumulative-effect adjustment | (33,707) | |
Other, net | (949) | 3,319 |
Net income (loss) | 178,737 | 347,115 |
Net income (loss) attributable to CHS Inc. | 177,882 | 347,504 |
Net income (loss) attributable to noncontrolling interests | 855 | (389) |
Other comprehensive income (loss), net of tax | (1,638) | 389 |
Estimated 2019 cash patronage refunds | (28,504) | (89,344) |
Estimated 2019 equity redemptions | (91,633) | (50,081) |
Ending Balance | 8,622,916 | 8,292,092 |
Capital equity certificates [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 3,753,493 | 3,837,580 |
Reversal of prior year patronage and redemption estimates | 5,447 | 24,072 |
Redemptions of equities | (4,721) | (22,004) |
Other, net | (8) | (409) |
Estimated 2019 equity redemptions | (91,633) | (50,081) |
Ending Balance | 3,662,578 | 3,789,158 |
Nonpatronage Equity Certificates [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 29,074 | 29,498 |
Reversal of prior year patronage and redemption estimates | 0 | 0 |
Redemptions of equities | (54) | (183) |
Ending Balance | 29,020 | 29,315 |
Non-qualified Equity Certificates [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 1,206,310 | 742,378 |
Reversal of prior year patronage and redemption estimates | 0 | 0 |
Redemptions of equities | (672) | (1,885) |
Other, net | (39) | (26) |
Ending Balance | 1,205,599 | 740,467 |
Preferred Stock [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 2,264,038 | 2,264,038 |
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 | (226,933) | (199,915) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (4,706) | |
Other comprehensive income (loss), net of tax | (1,638) | 389 |
Ending Balance | (228,571) | (204,232) |
Capital Reserves [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 1,584,158 | 1,482,003 |
Reversal of prior year patronage and redemption estimates | 0 | 0 |
Preferred stock dividends | (84,334) | (84,334) |
Other, net | (1,312) | 3,436 |
Net income (loss) attributable to CHS Inc. | 177,882 | 347,504 |
Estimated 2019 cash patronage refunds | (28,504) | (89,344) |
Ending Balance | 1,681,597 | 1,663,971 |
Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 7,390 | 9,446 |
Other, net | 410 | 318 |
Net income (loss) attributable to noncontrolling interests | 855 | (389) |
Ending Balance | 8,655 | 9,375 |
Accounting Standards Update 2016-02 [Member] | Capital equity certificates [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
ASC Topic 842 cumulative-effect adjustment | 0 | |
Accounting Standards Update 2016-02 [Member] | Nonpatronage Equity Certificates [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
ASC Topic 842 cumulative-effect adjustment | 0 | |
Accounting Standards Update 2016-02 [Member] | Non-qualified Equity Certificates [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
ASC Topic 842 cumulative-effect adjustment | 0 | |
Accounting Standards Update 2016-02 [Member] | Preferred Stock [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
ASC Topic 842 cumulative-effect adjustment | 0 | |
Accounting Standards Update 2016-02 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
ASC Topic 842 cumulative-effect adjustment | 0 | |
Accounting Standards Update 2016-02 [Member] | Capital Reserves [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
ASC Topic 842 cumulative-effect adjustment | (33,707) | |
Accounting Standards Update 2016-02 [Member] | Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
ASC Topic 842 cumulative-effect adjustment | $ 0 | |
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income (Loss) [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4,706 | |
Accounting Standards Update 2016-01 | Capital Reserves [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (4,706) |
Equities Accumulated Other Comp
Equities Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 8,617,530 | $ 8,165,028 |
Other comprehensive income (loss), net of tax | (1,638) | 389 |
Ending Balance | 8,622,916 | 8,292,092 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (172,478) | (140,335) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (85) | 175 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 4,977 | 2,565 |
Other Comprehensive Income (Loss), before Tax | 4,892 | 2,740 |
Other Comprehensive Income (Loss), Tax | 181 | (639) |
Other comprehensive income (loss), net of tax | 5,073 | 2,101 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 416 | |
Ending Balance | (167,405) | (137,818) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 8,861 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | |
Other Comprehensive Income (Loss), before Tax | 0 | |
Other Comprehensive Income (Loss), Tax | 0 | |
Other comprehensive income (loss), net of tax | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (8,861) | |
Ending Balance | 0 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 15,297 | (5,882) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (3,331) | (317) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (4,473) | (1,475) |
Other Comprehensive Income (Loss), before Tax | (7,804) | (1,792) |
Other Comprehensive Income (Loss), Tax | 1,932 | 485 |
Other comprehensive income (loss), net of tax | (5,872) | (1,307) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 983 | |
Ending Balance | 9,425 | (6,206) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (69,752) | (62,559) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (2,411) | (25) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | (2,411) | (25) |
Other Comprehensive Income (Loss), Tax | 1,572 | (380) |
Other comprehensive income (loss), net of tax | (839) | (405) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,756 | |
Ending Balance | (70,591) | (60,208) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (226,933) | (199,915) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (5,827) | (167) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 504 | 1,090 |
Other Comprehensive Income (Loss), before Tax | (5,323) | 923 |
Other Comprehensive Income (Loss), Tax | 3,685 | (534) |
Other comprehensive income (loss), net of tax | (1,638) | 389 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (4,706) | |
Ending Balance | $ (228,571) | $ (204,232) |
Equities Dividends Per Share (D
Equities Dividends Per Share (Details) - $ / shares | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
8% Cumulative Redeemable [Member] | ||
8% Cumulative Redeemable [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 1 | $ 1 |
Class B, Series 1 Preferred Stock [Member] | ||
8% Cumulative Redeemable [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | 0.98 | 0.98 |
Class B, Series 2 Preferred Stock [Member] | ||
8% Cumulative Redeemable [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | 0.88 | 0.88 |
Class B, Series 3 Preferred Stock [Member] | ||
8% Cumulative Redeemable [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | 0.84 | 0.84 |
Class B, Series 4 Preferred Stock [Member] | ||
8% Cumulative Redeemable [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 0.94 | $ 0.94 |
Benefit Plans - Net Periodic B
Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Qualified Pension Benefits | ||
Component of net periodic benefit costs: [Abstract] | ||
Service cost | $ 10,538 | $ 9,648 |
Interest cost | 5,431 | 7,099 |
Expected return on assets | (11,671) | (11,242) |
Prior service cost (credit) amortization | 45 | 42 |
Actuarial (gain) loss amortization | 5,396 | 3,087 |
Net periodic benefit cost | 9,739 | 8,634 |
Non-Qualified Pension Benefits | ||
Component of net periodic benefit costs: [Abstract] | ||
Service cost | 101 | 78 |
Interest cost | 107 | 187 |
Expected return on assets | 0 | 0 |
Prior service cost (credit) amortization | (28) | (19) |
Actuarial (gain) loss amortization | 25 | 0 |
Net periodic benefit cost | 205 | 246 |
Other Benefits | ||
Component of net periodic benefit costs: [Abstract] | ||
Service cost | 262 | 263 |
Interest cost | 187 | 274 |
Expected return on assets | 0 | 0 |
Prior service cost (credit) amortization | (111) | (139) |
Actuarial (gain) loss amortization | (348) | (407) |
Net periodic benefit cost | $ (10) | $ (9) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | 3.60% | 5.50% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 98.7 | $ 93.3 |
Segment Reporting - Segment In
Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | Mar. 01, 2019 | |
Segment Reporting Information [Line Items] | ||||
Remainingownershipacquired | 75.00% | |||
Revenues | $ 7,621,485 | $ 8,484,289 | ||
Operating earnings (loss) | 157,212 | 314,498 | ||
Interest Expense | 34,971 | 38,908 | ||
Other (income) loss | (13,498) | (25,134) | ||
Equity (income) loss from investments | (49,662) | (66,508) | ||
Income (loss) before income taxes | 185,401 | 367,232 | ||
Total assets | 17,214,291 | $ 16,447,494 | ||
Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, including intersegment revenues | 2,027,895 | 2,310,080 | ||
Revenues | 1,895,423 | 2,161,288 | ||
Operating earnings (loss) | 161,199 | 235,639 | ||
Interest Expense | 374 | 4,237 | ||
Other (income) loss | (964) | (986) | ||
Equity (income) loss from investments | (364) | (73) | ||
Income (loss) before income taxes | 162,153 | 232,461 | ||
Total assets | 4,449,652 | |||
Ag | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, including intersegment revenues | 5,715,994 | 6,308,714 | ||
Revenues | 5,711,855 | 6,305,397 | ||
Operating earnings (loss) | (417) | 80,127 | ||
Interest Expense | 20,741 | 21,000 | ||
Other (income) loss | (11,453) | (22,400) | ||
Equity (income) loss from investments | 4,157 | 1,209 | ||
Income (loss) before income taxes | (13,862) | 80,318 | ||
Total assets | 7,108,507 | |||
Nitrogen Production [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, including intersegment revenues | 0 | 0 | ||
Operating earnings (loss) | (7,823) | (5,128) | ||
Interest Expense | 12,130 | 13,679 | ||
Other (income) loss | (1,569) | (1,571) | ||
Equity (income) loss from investments | (34,834) | (40,915) | ||
Income (loss) before income taxes | 16,450 | 23,679 | ||
Total assets | 2,761,709 | |||
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, including intersegment revenues | 15,950 | 19,067 | ||
Revenues | 14,207 | 17,604 | ||
Operating earnings (loss) | 4,253 | 3,860 | ||
Interest Expense | 3,838 | 763 | ||
Other (income) loss | (1,624) | (948) | ||
Equity (income) loss from investments | (18,621) | (26,729) | ||
Income (loss) before income taxes | 20,660 | 30,774 | ||
Total assets | 2,894,423 | |||
Reconciling Amounts | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (138,354) | (153,572) | ||
Operating earnings (loss) | 0 | 0 | ||
Interest Expense | (2,112) | (771) | ||
Other (income) loss | 2,112 | 771 | ||
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 | (132,472) | (148,792) | ||
Intersegment Eliminations [Member] | Ag | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (4,139) | (3,317) | ||
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 | (1,743) | (1,463) | ||
Intersegment Eliminations [Member] | Reconciling Amounts | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 138,354 | $ 153,572 |
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, 2019TBushelstMMBtuBarrels | Aug. 31, 2019TBushelstMMBtuBarrels |
Grain and oilseed (bushels) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 546,758 | 547,096 |
Grain and oilseed (bushels) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 733,722 | 717,522 |
Energy products (barrels) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 9,705 | 13,895 |
Energy products (barrels) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 5,363 | 4,663 |
Processed grain and oilseed (tons) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 454 | 597 |
Processed grain and oilseed (tons) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,753 | 2,454 |
Crop nutrients (tons) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 73 | 76 |
Crop nutrients (tons) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 29 | 23 |
Ocean Freight Contracts [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 200 | 295 |
Ocean Freight Contracts [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 55 | 85 |
Natural gas (MMBtu) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 60 | 130 |
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, 2019USD ($)bbl | Aug. 31, 2019USD ($)bbl | |
Derivative [Line Items] | ||
Derivative Liability, Noncurrent | $ 6,800 | $ 7,400 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 152,237 | 180,894 |
Derivative Assets | 183,068 | 246,728 |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 30,831 | 65,834 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 157,911 | 191,073 |
Derivative Liabilities | 202,322 | 244,019 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 3,030 | 4,191 |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 41,381 | 48,755 |
Embedded Derivative, Gain on Embedded Derivative | $ 1,600 | |
Credit Rating Agencies Threshold, Minimum | 66.67% | |
Derivative Asset, Noncurrent, Excluding Fair Value Hedges | $ 18,600 | 26,600 |
CF Nitrogen LLC [Member] | ||
Derivative [Line Items] | ||
Annual Payment Receivable Contingent On Investment Credit Rating | 5,000 | |
Embedded derivative asset | 17,900 | |
Foreign exchange derivatives | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 1,886 | 3,226 |
Derivative Assets | 5,518 | 10,334 |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 3,632 | 7,108 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 15,665 | 13,501 |
Derivative Liabilities | 19,297 | 20,609 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 3,632 | 7,108 |
Derivative, Notional Amount | 972,200 | 894,700 |
Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 17,933 | 21,364 |
Derivative Assets | 17,933 | 21,364 |
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 | 132,418 | 156,304 |
Derivative Assets | 159,617 | 215,030 |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 27,199 | 58,726 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 142,246 | 177,572 |
Derivative Liabilities | 183,025 | 223,410 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 3,030 | 4,191 |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 37,749 | $ 41,647 |
Fair Value Hedging | Interest rate swap derivatives | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 365,000 | |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount of cash flow hedges (in barrels) | bbl | 9.1 | 7.7 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | $ 26,112 | $ 33,179 |
Derivative Liabilities | $ 5,387 | $ 5,351 |
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, 2019 | Nov. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 35,825 | $ 10,347 |
Commodity derivatives | Cost of goods sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 42,674 | (6,448) |
Foreign exchange derivatives | Cost of goods sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (10,161) | 16,056 |
Foreign exchange 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 | 1,743 | (832) |
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 | $ 1,569 | $ 1,571 |
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, 2019 | Aug. 31, 2019 |
Derivative [Line Items] | ||
Derivative Assets | $ 183,068 | $ 246,728 |
Derivative Liabilities | 202,322 | 244,019 |
Designated as Hedging Instrument | Other Assets [Member] | Interest rate swap derivatives | ||
Derivative [Line Items] | ||
Derivative Assets | $ 6,886 | $ 9,841 |
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, 2019 | Nov. 30, 2018 | |
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 | (2,955) | (955) |
Interest Expense | Hedged Item | ||
Derivative [Line Items] | ||
Gain (loss) on fair value hedging relationship | $ 2,955 | $ 955 |
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, 2019 | Aug. 31, 2019 |
Derivative [Line Items] | ||
Carrying Amount of Hedged Liabilities | $ 331,435 | $ 334,389 |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities | $ 33,565 | $ 30,611 |
Derivative Financial Instrume_9
Derivative Financial Instruments and Hedging Activities - Fair Value of Commodity Derivative Instruments (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 183,068 | $ 246,728 |
Derivative Liabilities | $ 202,322 | $ 244,019 |
Derivative Financial Instrum_10
Derivative Financial Instruments and Hedging Activities - Commodity Derivatives (Details) - Commodity derivatives - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Cost of goods sold | ||
Derivative [Line Items] | ||
Pretax gains (losses) reclassified from AOCI related to cash flow hedges | $ 4,852 | $ 1,900 |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Pretax gains (losses) recorded in OCI related to cash flow hedges | $ (7,103) | $ (2,463) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | $ 46,754 | $ 40,368 |
Embedded derivative asset | 17,933 | 21,364 |
Securities Segregated under Other Regulations | 91,080 | 77,777 |
Other assets | 6,082 | 6,519 |
Total assets | 360,071 | 414,417 |
Foreign exchange derivatives | 20,701 | |
Total liabilities | 207,709 | 249,461 |
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 | 46,754 | 40,368 |
Embedded derivative asset | 0 | 0 |
Securities Segregated under Other Regulations | 91,080 | 77,777 |
Other assets | 6,082 | 6,519 |
Total assets | 170,259 | 192,481 |
Foreign exchange derivatives | 0 | |
Total liabilities | 36,032 | 40,305 |
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 | 17,933 | 21,364 |
Securities Segregated under Other Regulations | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 189,812 | 221,936 |
Foreign exchange derivatives | 20,701 | |
Total liabilities | 171,677 | 209,156 |
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 |
Securities Segregated under Other Regulations | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Foreign exchange derivatives | 0 | |
Total liabilities | 0 | 0 |
Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 185,730 | 248,209 |
Derivative Liability | 188,412 | 228,760 |
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 | 26,343 | 67,817 |
Derivative Liability | 36,032 | 40,305 |
Commodity derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 159,387 | 180,392 |
Derivative Liability | 152,380 | 188,455 |
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 exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivatives | 5,606 | 10,339 |
Foreign exchange derivatives | 19,297 | |
Foreign exchange 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 exchange derivatives | 0 | 0 |
Foreign exchange derivatives | 0 | |
Foreign exchange derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivatives | 5,606 | 10,339 |
Foreign exchange derivatives | 19,297 | |
Foreign exchange derivatives | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivatives | 0 | 0 |
Foreign exchange derivatives | 0 | |
Interest rate swap derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 6,886 | 9,841 |
Interest rate swap derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Interest rate swap derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 6,886 | 9,841 |
Interest rate swap derivatives | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 0 | $ 0 |
Commitments and Contingencies G
Commitments and Contingencies Guarantees (Details) $ in Millions | Nov. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure, undiscounted | $ 178.3 |
Maximum guarantees allowed by bank covenants | $ 1,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Sep. 01, 2019 | |
Leases [Abstract] | |||||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 0 | $ 0 | |||
Operating Leases, Rent Expense, Net | 0 | 0 | $ 0 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 33,700 | ||||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 4,790 | ||||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 45,821 | ||||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 6,761 | ||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 87,168 | ||||
Operating Lease, Payments | 15,722 | ||||
Operating Lease, Right-of-Use Asset | 259,028 | 268,400 | |||
Operating Lease, Expense | 16,480 | ||||
Finance Lease, Right-of-Use Asset, Amortization | 2,189 | ||||
Finance Lease, Interest Expense | 224 | ||||
Short-term Lease, Cost | 3,343 | ||||
Variable Lease, Cost | 116 | ||||
Lease, Cost | 22,352 | ||||
Operating Lease, Liability | 258,173 | $ 267,000 | |||
Finance Lease, Right-of-Use Asset | 40,536 | ||||
Finance Lease, Liability, Current | 6,049 | ||||
Operating Lease, Liability, Current | 53,868 | ||||
Finance Lease, Liability, Noncurrent | 21,092 | ||||
Finance Lease, Liability | $ 27,141 | ||||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 5 months | ||||
Finance Lease, Weighted Average Remaining Lease Term | 6 years 3 months | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 3.13% | ||||
Finance Lease, Weighted Average Discount Rate, Percent | 3.34% | ||||
Finance Lease, Interest Payment on Liability | $ 224 | ||||
Finance Lease, Principal Payments | 1,673 | ||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 4,724 | ||||
Capital Leases, Future Minimum Payments Due in Two Years | 6,199 | ||||
Operating Leases, Future Minimum Payments, Due in Two Years | 57,381 | ||||
Capital Leases, Future Minimum Payments Due in Three Years | 5,021 | ||||
Operating Leases, Future Minimum Payments, Due in Three Years | 43,665 | ||||
Capital Leases, Future Minimum Payments Due in Four Years | 4,548 | ||||
Operating Leases, Future Minimum Payments, Due in Four Years | 34,328 | ||||
Capital Leases, Future Minimum Payments Due in Five Years | 2,638 | ||||
Operating Leases, Future Minimum Payments, Due in Five Years | 26,793 | ||||
Capital Leases, Future Minimum Payments Due Thereafter | 6,517 | ||||
Operating Leases, Future Minimum Payments, Due Thereafter | 92,653 | ||||
Capital Leases, Future Minimum Payments, Net Minimum Payments | 31,684 | ||||
Operating Leases, Future Minimum Payments Due | 341,988 | ||||
Capital Leases, Future Minimum Payments, Interest Included in Payments | 3,445 | ||||
Capital Lease Obligations | 28,239 | ||||
Finance Lease, Liability, Payments, Due Next Twelve Months | 6,190 | ||||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 53,054 | ||||
Finance Lease, Liability, Payments, Due Year Two | 5,045 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 40,159 | ||||
Finance Lease, Liability, Payments, Due Year Three | 4,452 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 31,851 | ||||
Finance Lease, Liability, Payments, Due Year Four | 2,685 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 24,958 | ||||
Finance Lease, Liability, Payments, Due Year Five | 7,228 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 105,730 | ||||
Finance Lease, Liability, Payment, Due | 30,390 | ||||
Lessee, Operating Lease, Liability, Payments, Due | 301,573 | ||||
Finance Lease, Liability, Undiscounted Excess Amount | 3,249 | ||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 43,400 | ||||
Operating Lease, Liability, Noncurrent | $ 204,305 | ||||
Capital Leased Assets, Gross | $ 0 | $ 0 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Mar. 01, 2019 | Nov. 30, 2019 | Feb. 28, 2019 |
Business Acquisition [Line Items] | |||
Acquisitionpurchaseprice | $ 113.4 | ||
Amountpreviouslypaid | 6.7 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 77.8 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | 37.8 | ||
Business acquisitions, net of cash acquired | 106.7 | ||
Cash Acquired from Acquisition | 8 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 19.1 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (0.3) | ||
Remainingownershipacquired | 75.00% | ||
West Central [Member] | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 25.00% |
Acquisitions Fair Value of Net
Acquisitions Fair Value of Net Assets Acquired (Details) $ in Thousands | Mar. 01, 2019USD ($) |
Fair value of net assets acquired [Line Items] | |
Cash Acquired from Acquisition | $ 8,000 |
West Central [Member] | |
Fair value of net assets acquired [Line Items] | |
Cash Acquired from Acquisition | 8,033 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 708,764 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 44,064 |
Goodwill, Acquired During Period | 61,358 |
Finite-lived Intangible Assets Acquired | 47,200 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 55 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (718,262) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 151,212 |