Cover Page
Cover Page - USD ($) | 12 Months Ended | |
Aug. 31, 2020 | Nov. 05, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Aug. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36079 | |
Entity Registrant Name | CHS Inc. | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-0251095 | |
Entity Address, Address Line One | 5500 Cenex Drive | |
Entity Address, City or Town | Inver Grove Heights, | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55077 | |
City Area Code | (651) | |
Local Phone Number | 355-6000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Central Index Key | 0000823277 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
8% Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 8% Cumulative Redeemable Preferred Stock | |
Trading Symbol | CHSCP | |
Security Exchange Name | NASDAQ | |
Class B, Series 1 Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class B Cumulative Redeemable Preferred Stock, Series 1 | |
Trading Symbol | CHSCO | |
Security Exchange Name | NASDAQ | |
Class B, Series 2 Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 | |
Trading Symbol | CHSCN | |
Security Exchange Name | NASDAQ | |
Class B, Series 3 Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 | |
Trading Symbol | CHSCM | |
Security Exchange Name | NASDAQ | |
Class B, Series 4 Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class B Cumulative Redeemable Preferred Stock, Series 4 | |
Trading Symbol | CHSCL | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 140,874 | $ 211,179 |
Receivables | 2,366,047 | 2,731,209 |
Inventories | 2,742,138 | 2,854,288 |
Other current assets | 1,017,488 | 865,919 |
Total current assets | 6,266,547 | 6,662,595 |
Investments | 3,630,033 | 3,683,996 |
Property, plant and equipment | 4,957,938 | 5,088,708 |
Other assets | 1,139,429 | 1,012,195 |
Total assets | 15,993,947 | 16,447,494 |
Current liabilities: | ||
Notes payable | 1,575,491 | 2,156,108 |
Current portion of long-term debt | 189,287 | 39,210 |
Accounts payable | 1,724,516 | 1,931,415 |
Accrued expenses | 501,904 | 555,323 |
Other Liabilities, Current | 928,843 | 901,651 |
Liabilities, Current | 4,920,041 | 5,583,707 |
Long-term debt | 1,601,836 | 1,749,901 |
Other liabilities | 652,897 | 496,356 |
Commitments and contingencies (Note 17) | ||
Equities: | ||
Preferred stock | 2,264,038 | 2,264,038 |
Equity certificates | 5,161,610 | 4,988,877 |
Accumulated other comprehensive loss | (233,924) | (226,933) |
Capital reserves | 1,618,147 | 1,584,158 |
Total CHS Inc. equities | 8,809,871 | 8,610,140 |
Noncontrolling interests | 9,302 | 7,390 |
Total equities | 8,819,173 | 8,617,530 |
Total liabilities and equities | $ 15,993,947 | $ 16,447,494 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 28,406,365 | $ 31,900,453 | $ 32,683,347 |
Cost of goods sold | 27,424,558 | 30,516,120 | 31,591,227 |
Gross Profit | 981,807 | 1,384,333 | 1,092,120 |
Marketing, general and administrative expenses | 704,542 | 724,731 | 639,756 |
Operating earnings (loss) | 277,265 | 659,602 | 452,364 |
Gain on disposal of business | (1,450) | (3,886) | (131,816) |
Interest expense | 116,977 | 167,065 | 149,202 |
Other income | (38,425) | (82,423) | (82,737) |
Equity income from investments | (186,715) | (236,755) | (153,515) |
Income before income taxes | 386,878 | 815,601 | 671,230 |
Income tax benefit | (36,731) | (12,456) | (104,076) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 423,609 | 828,057 | 775,306 |
Net income (loss) attributable to noncontrolling interests | 1,170 | (1,823) | (601) |
Earnings attributable to CHS Inc. | $ 422,439 | $ 829,880 | $ 775,907 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 423,609 | $ 828,057 | $ 775,306 |
Other comprehensive income (loss), net of tax: | |||
Pension and other postretirement benefits | 12,798 | (32,559) | 20,066 |
Unrealized net loss on available-for-sale investments | 0 | 0 | (3,148) |
Cash flow hedges | (4,411) | 20,196 | 2,540 |
Foreign currency translation adjustment | (15,378) | (9,949) | (12,021) |
Other comprehensive income, net of tax | (6,991) | (22,312) | 7,437 |
Comprehensive income | 416,618 | 805,745 | 782,743 |
Comprehensive income (loss) attributable to noncontrolling interests | 1,170 | (1,823) | (601) |
Comprehensive income attributable to CHS Inc. | $ 415,448 | $ 807,568 | $ 783,344 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equities - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | $ 8,617,530 | $ 8,165,028 | $ 7,705,640 |
Reversal of prior year patronage and redemption estimates | 180,000 | 153,941 | 6,058 |
Cash patronage dividends payable | (90,115) | (75,776) | 0 |
Redemptions of equities | 96,438 | 85,540 | (6,725) |
Preferred stock dividends | (168,668) | (168,668) | (168,668) |
Cumulative effect adjustment asc topic 842 | 25,320 | ||
Other, net | 2,074 | 2,800 | 4,020 |
Net income | 423,609 | 828,057 | 775,306 |
Other comprehensive income, net of tax | (6,991) | (22,312) | 7,437 |
Estimated patronage refunds | (30,000) | (90,000) | (75,000) |
Estimated equity redemptions | (33,000) | (90,000) | (75,000) |
Balance | 8,819,173 | 8,617,530 | 8,165,028 |
Capital Equity Certificates | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | 3,753,493 | 3,837,580 | 3,906,426 |
Reversal of prior year patronage and redemption estimates | 80,000 | 78,941 | 6,058 |
Redemptions of equities | (80,133) | (70,859) | (6,064) |
Other, net | (1,173) | (2,169) | (3,840) |
Estimated equity redemptions | (28,000) | (90,000) | (65,000) |
Balance | 3,724,187 | 3,753,493 | 3,837,580 |
Nonpatronage Equity Certificates | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | 29,074 | 29,498 | 29,836 |
Redemptions of equities | (340) | (409) | (185) |
Other, net | (7) | (15) | (153) |
Balance | 28,727 | 29,074 | 29,498 |
Nonqualified Equity Certificates | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | 1,206,310 | 742,378 | 405,387 |
Reversal of prior year patronage and redemption estimates | (462,398) | (345,330) | (126,333) |
Distribution of patronage refunds | 474,407 | 352,980 | 128,831 |
Redemptions of equities | (15,965) | (14,272) | (476) |
Other, net | (628) | (1,844) | (361) |
Estimated patronage refunds | 211,970 | 472,398 | 345,330 |
Estimated equity redemptions | (5,000) | 0 | (10,000) |
Balance | 1,408,696 | 1,206,310 | 742,378 |
Preferred Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | 2,264,038 | 2,264,038 | 2,264,038 |
Balance | 2,264,038 | 2,264,038 | 2,264,038 |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | (226,933) | (199,915) | (180,360) |
Other comprehensive income, net of tax | (6,991) | (22,312) | 7,437 |
TaxCutsAndJobsActof2017ReclassfromAOCItoRetainedEarningsTaxEffect | (4,706) | (26,992) | |
Balance | (233,924) | (226,933) | (199,915) |
Capital Reserves | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | 1,584,158 | 1,482,003 | 1,267,808 |
Reversal of prior year patronage and redemption estimates | 562,398 | 420,330 | 126,333 |
Distribution of patronage refunds | (564,522) | (428,756) | (128,831) |
Preferred stock dividends | (168,668) | (168,668) | (168,668) |
Cumulative effect adjustment asc topic 842 | 25,320 | ||
Other, net | (1,008) | 7,061 | 2,792 |
Net income | 422,439 | 829,880 | 775,907 |
TaxCutsAndJobsActof2017ReclassfromAOCItoRetainedEarningsTaxEffect | 4,706 | 26,992 | |
Estimated patronage refunds | 241,970 | 562,398 | 420,330 |
Balance | 1,618,147 | 1,584,158 | 1,482,003 |
Noncontrolling Interests | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | 7,390 | 9,446 | 12,505 |
Other, net | 742 | (233) | (2,458) |
Net income | 1,170 | (1,823) | (601) |
Balance | $ 9,302 | $ 7,390 | $ 9,446 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||
Total cash and cash equivalents and restricted cash | $ 216,993 | $ 299,675 | $ 543,940 |
Cash flows from operating activities: | |||
Net income | 423,609 | 828,057 | 775,306 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
DepreciationDepletionAndAmortizationincludingmajormaintenance | 550,251 | 541,507 | 539,736 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 49,130 | 12,560 | 36,782 |
Provision for doubtful accounts | 3,418 | 57,745 | 2,085 |
Gain/recovery on disposal of business | (1,450) | (3,886) | (131,816) |
Deferred taxes | (32,761) | (13,852) | (146,961) |
Other, net | (1,642) | 6,094 | (3,699) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Receivables | 308,399 | (218,192) | 210,775 |
Inventories | 104,884 | 284,694 | (169,581) |
Accounts payable and accrued expenses | (330,949) | (38,229) | (78,388) |
Other, net | 14,340 | (316,567) | 40,258 |
Net cash provided by operating activities | 1,087,229 | 1,139,931 | 1,074,497 |
Cash flows from investing activities: | |||
Capital expenditures | (418,359) | (443,216) | (355,412) |
Proceeds from disposition of property, plant and equipment | 32,670 | 53,974 | 91,153 |
Proceeds from sale of business | 1,139 | 5,044 | 234,914 |
Expenditures for major maintenance | (14,496) | (232,094) | (80,514) |
CHSCapitalPaymentsForProceedsFromLoansReceivable | 119,591 | (10,903) | 25,335 |
Financing extended to customers | (6,386) | (12,210) | (74,402) |
Payments from customer financing | 35,791 | 90,193 | 52,453 |
Business acquisitions, net of cash acquired | 231 | (119,421) | 0 |
Other investing activities, net | 6,114 | 7,350 | 26,949 |
Net cash used in investing activities | (243,705) | (661,283) | (79,524) |
Cash flows from financing activities: | |||
Proceeds from notes payable and long-term borrowings | 24,343,870 | 29,071,363 | 36,040,240 |
Payments on notes payable, long-term debt and finance lease obligations | (24,948,926) | (29,450,339) | (36,525,136) |
Preferred stock dividends paid | (168,668) | (168,668) | (168,668) |
Redemptions of equities | (96,438) | (85,540) | (8,847) |
Cash patronage dividends paid | (90,115) | (75,776) | 0 |
Other financing activities, net | 29,129 | (16,686) | (69,759) |
Net cash used in financing activities | (931,148) | (725,646) | (732,170) |
Effect of exchange rate changes on cash and cash equivalents | 4,942 | 2,733 | 8,864 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (82,682) | (244,265) | 271,667 |
Cash and cash equivalents and restricted cash at beginning of period | 211,179 | 450,617 | |
Cash and cash equivalents and restricted cash at end of period | 140,874 | 211,179 | 450,617 |
Supplemental Cash Flow Elements [Abstract] | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 119,354 | 172,259 | 148,874 |
Income Taxes Paid | 6,840 | 19,918 | 13,410 |
Receivables And Loans Securitization Facility, Notes Receivables Acquired | 0 | 0 | 615,089 |
Receivables And Loans Securitization Facility, Accounts Receivables Acquired | 0 | 0 | 402,421 |
Receivables And Loans Securitization Facility, Securitized Debt Acquired | 0 | 0 | 634,000 |
Transfer From Receivables | 0 | 0 | 386,900 |
Capital Expenditures Incurred but Not yet Paid | 14,906 | 28,478 | 53,453 |
Lease Obligation Incurred | 11,190 | 7,351 | 396 |
Other current liabilities | 63,000 | 180,000 | $ 153,941 |
Contribution of Property | $ 0 | $ 7,353 |
Investments - Schedule of Equit
Investments - Schedule of Equity Method Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Assets, Current | $ 6,266,547 | $ 6,662,595 | |
Liabilities, Current | 4,920,041 | 5,583,707 | |
Revenues | 28,406,365 | 31,900,453 | $ 32,683,347 |
Gross Profit | 981,807 | 1,384,333 | 1,092,120 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 423,609 | 828,057 | 775,306 |
Earnings attributable to CHS Inc. | 422,439 | 829,880 | 775,907 |
CF Industries Nitrogen | |||
Schedule of Equity Method Investments [Line Items] | |||
Assets, Current | 552,127 | 590,057 | |
Assets, Noncurrent | 6,564,086 | 7,028,766 | |
Liabilities, Current | 222,391 | 228,324 | |
Liabilities, Noncurrent | 3,036 | 2,455 | |
Revenues | 2,522,827 | 2,894,795 | 2,449,695 |
Gross Profit | 570,901 | 737,168 | 423,612 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 529,462 | 706,291 | 401,295 |
Earnings attributable to CHS Inc. | 127,954 | 160,373 | 106,895 |
Ventura Foods and Ardent Mills | |||
Schedule of Equity Method Investments [Line Items] | |||
Assets, Current | 1,548,930 | 1,469,003 | |
Assets, Noncurrent | 2,461,886 | 2,327,217 | |
Liabilities, Current | 628,440 | 535,579 | |
Liabilities, Noncurrent | 895,620 | 790,401 | |
Revenues | 5,440,143 | 5,752,368 | 5,882,035 |
Gross Profit | 584,352 | 565,784 | 601,927 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 181,049 | 248,303 | 226,776 |
Earnings attributable to CHS Inc. | $ 48,927 | $ 69,157 | $ 46,069 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | Organization, Basis of Presentation and Significant Accounting Policies Organization CHS Inc. (referred to herein as "CHS," "we," "us" or "our") is the nation’s leading integrated agricultural cooperative. As a cooperative, CHS is owned by farmers and ranchers and their member cooperatives ("members") across the United States. We also have preferred shareholders that own shares of our various series of preferred stock, which are each listed and traded on the Global Select Market of The Nasdaq Stock Market LLC ("The Nasdaq"). See Note 12, Equities , for more detailed information. We buy commodities from and provide products and services to individual agricultural producers, local cooperatives and other companies (including member and other nonmember customers), both domestic and international. Those products and services include initial agricultural inputs such as fuels, farm supplies, crop nutrients and crop protection products; as well as agricultural outputs that include grains and oilseeds, grain and oilseed processing and food products, and ethanol production and marketing. A portion of our operations are conducted through equity investments and joint ventures whose operating results are not fully consolidated with our results; rather, a proportionate share of the income or loss from those entities is included as a component in our net income under the equity method of accounting. Basis of Presentation The consolidated financial statements include the accounts of CHS and all our subsidiaries and limited liability companies in which we have a controlling interest. The effects of all significant intercompany transactions have been eliminated. The notes to our consolidated financial statements refer to our Energy, Ag and Nitrogen Production reportable segments, as well as our Corporate and Other category, which represents an aggregation of individually immaterial operating segments. The Nitrogen Production reportable segment results from our investment in CF Industries Nitrogen, LLC ("CF Nitrogen"). See Note 14, Segment Reporting , for more information. Certain captions within the Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows have been combined within other captions as allowed by Securities and Exchange Commission financial statement reporting requirements under Regulation S-X. Prior year information has been updated to conform with the current presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Due to the inherent uncertainty involved in making estimates, actual results could differ from those estimates. We evaluate our estimates and assumptions on an ongoing basis. Significant Accounting Policies Significant accounting policies are summarized below or within the related notes to our consolidated financial statements. Cash and Cash Equivalents and Restricted Cash Cash equivalents include short-term, highly liquid investments with original maturities of three months or less at the date of acquisition. The fair value of cash and cash equivalents approximates the carrying value due to the short-term nature of the instruments. Restricted cash is included in our Consolidated Balance Sheets within other current assets (current portion) and other assets (noncurrent portion), as appropriate, and primarily relates to customer deposits for futures and option contracts associated with regulated commodities held in separate accounts as required under federal and other regulations. Pursuant to the requirements of the Commodity Exchange Act, such funds must be carried in separate accounts that are designated as segregated customer accounts, as applicable. Restricted cash also includes funds held in escrow pursuant to applicable regulations limiting their usage. The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within our Consolidated Balance Sheets that aggregates to the amount presented in our Consolidated Statements of Cash Flows. August 31, 2020 2019 2018 (Dollars in thousands) Cash and cash equivalents $ 140,874 $ 211,179 $ 450,617 Restricted cash included in other current assets 76,119 88,496 90,193 Restricted cash included in other assets — — 3,130 Total cash and cash equivalents and restricted cash $ 216,993 $ 299,675 $ 543,940 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 Accounting Standards Codification ("ASC") Topic 842, Leases ("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 $25.3 million cumulative-effect adjustment, including the deferred income tax impact, 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 Consolidated Statements of Operations or Consolidated Statements of Cash Flows. Additional information and further disclosures related to our leases and lease-related financial statement amounts are included within Note 19, Leases . |
Description of New Accounting Pronouncements Not yet Adopted | Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses ("ASC Topic 326"): Measurement of Credit Losses on Financial Instruments |
Receivables
Receivables | 12 Months Ended |
Aug. 31, 2020 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Trade accounts receivable $ 1,476,585 $ 1,803,284 CHS Capital short-term notes receivable 563,934 592,909 Other 491,068 511,821 Gross receivables 2,531,587 2,908,014 Less allowances and reserves 165,540 176,805 Total receivables $ 2,366,047 $ 2,731,209 Trade Accounts Receivable Trade accounts receivable are initially recorded at a selling price that approximates fair value upon the sale of goods or services to customers. Subsequently, trade accounts receivable are carried at net realizable value, which includes an allowance for estimated uncollectible amounts. We calculate this allowance based on our history of write-offs, level of past due accounts and our relationships with and the economic status of our customers. Receivables from related parties are disclosed in Note 18, Related Party Transactions . No third-party customer accounted for more than 10% of the total receivables balance as of August 31, 2020 or 2019. CHS Capital Notes Receivable Notes Receivable CHS Capital, LLC ("CHS Capital"), our wholly-owned subsidiary, has short-term notes receivable from commercial and producer borrowers. The short-term notes receivable have maturity terms of 12 months or less and are reported at their outstanding unpaid principal balances, adjusted for the allowance of loan losses, as CHS Capital has the intent and ability to hold the applicable loans for the foreseeable future or until maturity or pay-off. The carrying value of CHS Capital short-term notes receivable approximates fair value given the notes' short-term duration and use of market pricing adjusted for risk. Notes receivable from commercial borrowers are collateralized by various combinations of mortgages, personal property, accounts and notes receivable, inventories and assignments of certain regional cooperative's capital stock. These loans are primarily originated in the states of North Dakota and Minnesota. 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 $101.5 million and $180.0 million at August 31, 2020 and 2019, respectively. The long-term notes receivable are included in other assets on our Consolidated Balance Sheets. As of August 31, 2020 and 2019, commercial notes represented 33% and 41%, respectively, and producer notes represented 67% and 59%, respectively, of total CHS Capital notes receivable. CHS Capital has commitments to extend credit to customers if there are no violations of any contractually established conditions. As of August 31, 2020, CHS Capital customers had additional available credit of $714.5 million. Allowance for Loan Losses and Impairments CHS Capital maintains an allowance for loan losses that is an estimate of potential incurred losses inherent in the loans receivable portfolio. In accordance with FASB ASC 450-20, Accounting for Loss Contingencies, and ASC 310-10, Accounting by Creditors for Impairment of a Loan , the allowance for loan losses consists of general and specific components. The general component is based on historical loss experience and qualitative factors addressing operational risks and industry trends. The specific component relates to loans receivable that are classified as impaired. Additions to the allowance for loan losses are reflected within marketing, general and administrative expenses in the Consolidated Statements of Operations. The portion of loans receivable deemed uncollectible is charged off against the allowance. Recoveries of previously charged off amounts increase the allowance for loan losses. No significant amounts of CHS Capital notes were past due as of August 31, 2020 or 2019, and specific and general loan loss reserves related to CHS Capital notes were not material as of either date. Interest Income Interest income is recognized on the accrual basis using a method that computes simple interest on a daily basis. Accrual of interest on commercial loans receivable is discontinued at the time the receivable is 90 days past due unless the credit is well-collateralized and in process of collection. Past due status is based on contractual terms of the loan. Producer loans receivable are placed in nonaccrual status based on estimates and analysis due to the annual debt service terms inherent to CHS Capital's producer loans. In all cases, loans are placed in nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. Troubled Debt Restructurings Restructuring of a loan constitutes a troubled debt restructuring, or restructured loan, if the creditor for economic reasons related to the debtor's financial difficulties grants a concession to the debtor that it would otherwise not consider. Concessions vary by program and borrower. Concessions may include interest rate reductions, term extensions, payment deferrals or the acceptance of additional collateral in lieu of payments. In limited circumstances, principal may be forgiven. When a restructured loan constitutes a troubled debt restructuring, CHS includes these loans within its impaired loans. CHS Capital had no significant troubled debt restructurings and no third-party borrowers that accounted for more than 10% of the total CHS Capital notes receivable or total receivables as of August 31, 2020 or 2019. Loan Participations For the years ended August 31, 2020 and 2019, CHS Capital sold $70.6 million and $92.3 million of notes receivable, respectively, to various counterparties under a master participation agreement. The sale resulted in the removal of notes receivable from the Consolidated Balance Sheet. CHS Capital has no retained interests in the transferred notes receivable, other than collection and administrative services. Proceeds from sales of notes receivable have been included in investing activities in the Consolidated Statements of Cash Flows. Fees received related to the servicing of notes receivable are recorded in other income in the Consolidated Statements of Operations. We consider the fees received adequate compensation for services rendered and, accordingly, have recorded no servicing asset or liability. Other Receivables Other receivables are comprised of certain other amounts recorded in the normal course of business, including receivables related to vendor rebates, value-added taxes, certain financing receivables and pre-crop financing, primarily to Brazilian farmers, to finance a portion of supplier production costs. We receive volume-based rebates from certain vendors during the year. These vendor rebates are accounted for in accordance with ASC 705, Cost of Sales and Services, based on the terms of the volume rebate program. For rebates that meet the definition of a binding arrangement and are both probable and estimable, we estimate the amount of the rebate we will receive and accrue it as a reduction of the cost of inventory and cost of goods sold over the period in which the rebate is earned. For pre-crop financing arrangements, we do not bear costs or operational risks associated with the related growing crops, although our ability to be paid depends on the crops actually being produced. The financing is collateralized by future crops, land and physical assets of the suppliers, carries a local market |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Grain and oilseed $ 1,064,079 $ 1,024,645 Energy 696,858 717,378 Agronomy 822,535 954,037 Processed grain and oilseed 126,022 109,900 Other 32,644 48,328 Total inventories $ 2,742,138 $ 2,854,288 Grain, processed grain, oilseed, processed oilseed and other minimally processed soy-based inventories are stated at net realizable value. These inventories are agricultural commodity inventories that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. Agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing and have predictable and insignificant disposal costs. Changes in the net realizable value of merchandisable agricultural commodities inventories are recognized in earnings as a component of cost of goods sold. All other inventories are stated at the lower of cost or net realizable value. Costs for inventories produced or modified by us through a manufacturing process include fixed and variable production and raw material costs, and in-bound freight costs for raw materials. Costs for inventories purchased for resale include the cost of products and freight incurred to place the products at our points of sale. The costs of certain energy inventories (wholesale refined products, crude oil and asphalt) are determined on the last-in, first-out ("LIFO") method; all other inventories of nongrain products purchased for resale are valued on the first-in, first-out ("FIFO") and average cost methods. |
Deferred Costs, Capitalized, Pr
Deferred Costs, Capitalized, Prepaid, and Other Assets | 12 Months Ended |
Aug. 31, 2020 | |
Other Current Assets [Abstract] | |
Other Assets | Other Assets Other assets as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Goodwill $ 172,404 $ 172,404 Customer lists, trademarks and other intangible assets 65,025 71,206 Notes receivable 109,145 189,045 Long-term derivative assets 21,157 36,408 Prepaid pension and other benefits 106,209 73,100 Capitalized major maintenance 228,511 286,890 Cash value life insurance 130,673 122,792 Operating lease right of use assets 257,834 — Other 48,471 60,350 Total other assets $ 1,139,429 $ 1,012,195 Goodwill and Other Intangible Assets Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is assessed for impairment on an annual basis as of July 31, either by first assessing qualitative factors to determine whether a quantitative goodwill impairment test is necessary or by proceeding directly to the quantitative test. The quantitative test may be required more frequently if triggering events or other circumstances occur that could indicate impairment. Goodwill is assessed for impairment at the reporting unit level, which has been determined to be our operating segments or one level below our operating segments in certain instances. There were no changes in the net carrying amount of goodwill for the year ended August 31, 2020. Changes in the net carrying amount of goodwill for the year ended August 31, 2019, by segment, are as follows: Energy Ag Corporate Total (Dollars in thousands) Balances, August 31, 2018 $ 552 $ 127,338 $ 10,574 $ 138,464 Goodwill acquired during the period — 61,358 — 61,358 Impairment — (27,418) — (27,418) Balances, August 31, 2019 552 161,278 10,574 172,404 Goodwill of $61.4 million acquired during the third quarter of fiscal 2019 was related to our acquisition of the remaining 75% ownership in West Central Distribution, LLC ("WCD") that we did not previously own. See Note 20, Acquisitions , for additional information related to the acquisition. No goodwill has been allocated to our Nitrogen Production segment, which consists of a single investment accounted for under the equity method. The outbreak and pandemic of the novel coronavirus known as COVID-19 and other factors resulted in substantial reductions in demand and sharp price declines in certain industries in which we operate during fiscal 2020, particularly with respect to the production of renewable fuels, other energy products and processing and food ingredients. Based on these deteriorated macroeconomic and industry conditions, management considered the impacts on each of our businesses and determined that we needed to perform interim impairment assessments of goodwill and asset groups, during our third quarter, for a reporting unit within our Ag segment that operates in the renewable fuels industry. Third-party price outlooks, projections of future volumes, expenses and other cash flows and a discount rate reflective of the relative risk of the cash flows were used to estimate fair value. Management believes the assumptions utilized in the assessment are appropriate and reasonable for estimating fair value. The estimated fair value of the reporting unit exceeded the carrying amount by approximately 18%, and thus no impairment was recorded. As a result of our annual goodwill impairment analyses performed as of July 31, 2019, we recorded a goodwill impairment charge of $27.4 million associated with a reporting unit in our Ag segment. The impairment charge primarily resulted from changing market dynamics that reduced future profitability within the reporting unit, as well as strategy changes and the challenging economic environment in the agriculture industry. The impairment charge was recorded in marketing, general and administrative expenses in the Consolidated Statement of Operations for the year ended August 31, 2019. No material impairments related to long-lived assets were recorded, and no goodwill impairments were identified as a result of our annual goodwill analyses performed as of July 31, 2020 or 2018. Management will continue to monitor the results and projected cash flows for each of our businesses to assess whether any reserves or impairments may be necessary in the future, particularly for our businesses that have experienced or could experience substantial reductions in demand or price declines associated with the COVID-19 pandemic. Intangible assets subject to amortization primarily include customer lists, trademarks and noncompete agreements, and are amortized over their respective useful lives (ranging from two Acquisitions , for additional information related to the acquisition. Information regarding intangible assets is as follows: August 31, 2020 August 31, 2019 Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 84,895 $ (23,770) $ 61,125 $ 84,815 $ (17,609) $ 67,206 Trademarks and other intangible assets 10,735 (6,835) 3,900 9,736 (5,736) 4,000 Total intangible assets $ 95,630 $ (30,605) $ 65,025 $ 94,551 $ (23,345) $ 71,206 Intangible asset amortization expense for the years ended August 31, 2020, 2019 and 2018, was $7.3 million, $5.3 million and $3.4 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows: (Dollars in thousands) 2021 $ 8,215 2022 7,973 2023 7,870 2024 7,660 2025 7,345 Thereafter 25,866 Total $ 64,929 Capitalized Major Maintenance Activity related to capitalized major maintenance costs at our refineries for the years ended August 31, 2020, 2019 and 2018, is summarized below: Balance at Cost Amortization Balance at (Dollars in thousands) 2020 $ 286,890 $ 14,496 $ (72,875) $ 228,511 2019 130,780 224,406 (68,296) 286,890 2018 105,006 87,460 (61,686) 130,780 |
Other Current Assets | Other Current Assets Other current assets as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Derivative assets (Note 15) $ 371,195 $ 253,341 Margin and related deposits 194,097 155,306 Supplier advance payments 198,699 197,290 Other 253,497 259,982 Total other current assets $ 1,017,488 $ 865,919 Margin and Related Deposits Many of our derivative contracts with futures and options brokers require us to make margin deposits of cash or other assets. Subsequent margin deposits may also be necessary when changes in commodity prices result in a loss on the contract value to comply with applicable regulations. Our margin and related deposit assets are generally held in segregated accounts to support the associated derivative contracts and may be used to fund or partially fund the settlement of those contracts as they expire. Similar to our derivative financial instruments, margin and related deposits are reported on a gross basis. Supplier Advance Payments |
Investments
Investments | 12 Months Ended |
Aug. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments Investments as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,662,618 $ 2,708,942 Ventura Foods, LLC 381,351 374,516 Ardent Mills, LLC 208,927 209,027 Other equity method investments 253,182 267,247 Other investments 123,955 124,264 Total investments $ 3,630,033 $ 3,683,996 Joint ventures and other investments in which we have significant ownership and influence but not control, are accounted for in our consolidated financial statements using the equity method of accounting. Our significant equity method investments consist of CF Nitrogen, Ventura Foods, LLC ("Ventura Foods"), and Ardent Mills, LLC ("Ardent Mills"), which are summarized below. In addition to the 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 U.S. GAAP. We have approximately $383.0 million of cumulative undistributed earnings from our equity method investees included in the investments balance as of August 31, 2020. All equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value with changes therein reflected in net income. We have elected to utilize the measurement alternative for equity investments that do not have readily determinable fair values and measure these investments at cost less impairment plus or minus observable price changes in orderly transactions. Our share in the income or loss of these equity method investments is recorded within equity (income) loss from investments in the Consolidated Statements of Operations. Other investments consist primarily of investments in cooperatives without readily determinable fair values and are generally recorded at cost, unless an impairment or other observable market price change occurs requiring an adjustment. Investments in other cooperatives are recorded in a manner similar to equity investments without readily determinable fair values, plus patronage dividends received in the form of capital stock and other equities. Patronage dividends are recorded as a reduction to cost of goods sold at the time qualified written notices of allocation are received. Investments in debt and equity instruments are carried at amounts that approximate fair values. CF Nitrogen We have a $2.7 billion investment in 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. At the time we entered into the strategic venture, we also entered into a supply agreement that entitles us to purchase up to 1.1 million tons of granular urea and 580,000 tons of urea ammonium nitrate ("UAN") annually from CF Nitrogen for ratable delivery through fiscal 2096. Our purchases under the supply agreement are based on prevailing market prices and we receive semi-annual cash distributions (in January and July of each year) from CF Nitrogen via our membership interest. These distributions are based on actual volumes purchased from CF Nitrogen under the strategic venture and will have the effect of reducing our investment to zero over 80 years on a straight-line basis. We account for this investment using the hypothetical liquidation at book value method, recognizing our share of the earnings and losses of CF Nitrogen as equity income from investments in our Nitrogen Production segment based on our contractual claims on the entity's net assets pursuant to the liquidation provisions of CF Nitrogen's Limited Liability Company Agreement, adjusted for the semi-annual cash distributions. Cash distributions received from CF Nitrogen for the years ended August 31, 2020 and 2019, were $174.3 million and $186.5 million, respectively. The following tables provide aggregate summarized financial information for CF Nitrogen for the balance sheets as of August 31, 2020 and 2019, and the statements of operations for the 12 months ended August 31, 2020, 2019 and 2018: 2020 2019 (Dollars in thousands) Current assets $ 552,127 $ 590,057 Noncurrent assets 6,564,086 7,028,766 Current liabilities 222,391 228,324 Noncurrent liabilities 3,036 2,455 2020 2019 2018 (Dollars in thousands) Net sales $ 2,522,827 $ 2,894,795 $ 2,449,695 Gross profit 570,901 737,168 423,612 Net earnings 529,462 706,291 401,295 Earnings attributable to CHS Inc. 127,954 160,373 106,895 Ventura Foods and Ardent Mills We have a 50% interest in Ventura Foods, which is a joint venture with Wilsey Foods, Inc., a majority-owned subsidiary of MBK USA Holdings, Inc., that produces and distributes primarily vegetable-oil-based products, and we have a 12% interest in Ardent Mills, which is a joint venture with Cargill Incorporated and Conagra Brands, Inc., and is the largest flour miller in the United States. We account for Ventura Foods and Ardent Mills as equity method investments included in Corporate and Other. The following tables provide aggregate summarized financial information for our equity method investments in Ventura Foods and Ardent Mills for balance sheets as of August 31, 2020 and 2019, and statements of operations for the 12 months ended August 31, 2020, 2019 and 2018: 2020 2019 (Dollars in thousands) Current assets $ 1,548,930 $ 1,469,003 Noncurrent assets 2,461,886 2,327,217 Current liabilities 628,440 535,579 Noncurrent liabilities 895,620 790,401 2020 2019 2018 (Dollars in thousands) Net sales $ 5,440,143 $ 5,752,368 $ 5,882,035 Gross profit 584,352 565,784 601,927 Net earnings 181,049 248,303 226,776 Earnings attributable to CHS Inc. 48,927 69,157 46,069 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As of August 31, 2020 and 2019, major classes of property, plant and equipment, which include finance lease assets, consisted of the amounts in the table below. 2020 2019 (Dollars in thousands) Land and land improvements $ 317,714 $ 319,452 Buildings 1,110,490 1,079,073 Machinery and equipment 7,559,437 7,392,767 Office equipment and other 362,084 346,649 Construction in progress 310,901 329,297 Gross property, plant and equipment 9,660,626 9,467,238 Less accumulated depreciation and amortization 4,702,688 4,378,530 Total property, plant and equipment $ 4,957,938 $ 5,088,708 Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided on the straight-line method by charges to operations at rates based on the expected useful lives of individual or groups of assets (generally 15 to 20 years for land improvements; 20 to 40 years for buildings; five to 20 years for machinery and equipment; and three to 10 years for office equipment and other). Expenditures for maintenance and minor repairs and renewals are expensed. We also capitalize and amortize eligible costs to acquire or develop internal-use software that are incurred during the application development stage. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from the related accounts and resulting gains or losses are reflected in operations. Depreciation expense, including amortization of finance lease assets, for the years ended August 31, 2020, 2019 and 2018, was $470.4 million, $495.3 million and $475.8 million, respectively. Property, plant and equipment and other long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable in accordance with U.S. GAAP. This evaluation of recoverability is based on various indicators, including the nature, future economic benefits and geographic locations of the assets, historical or future profitability measures and other external market conditions. If these indicators suggest the carrying amounts of an asset or asset group may not be recoverable, potential impairment is evaluated using undiscounted estimated future cash flows. Should the sum of the expected future net cash flows be less than the carrying value, an impairment loss would be recognized. An impairment loss would be measured as the amount by which the carrying value of the asset or asset group exceeds its fair value. No significant impairments were identified during fiscal 2020; however, as a result of these monitoring activities, our Ag segment recorded impairment charges of approximately $12.2 million associated with certain nonstrategic long-lived assets that ceased operation during fiscal 2019. These impairments were included in marketing, general and administrative expenses in the Consolidated Statements of Operations. We have asset retirement obligations with respect to certain of our refineries and other assets due to various legal obligations to clean and/or dispose of the component parts at the time they are retired. In most cases, these assets can be used for extended and indeterminate periods of time if they are properly maintained and/or upgraded. It is our practice and current intent to maintain refineries and related assets and to continue making improvements to those assets based on technological advances. As a result, we believe our refineries and related assets have indeterminate lives for purposes of estimating asset retirement obligations because dates or ranges of dates upon which we would retire a refinery and related assets cannot reasonably be estimated at this time. When a date or range of dates can reasonably be estimated for the retirement of any component part of a refinery or other asset, we estimate the cost of performing the retirement activities and record a liability for the fair value of that future cost. |
Other Assets
Other Assets | 12 Months Ended |
Aug. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Goodwill $ 172,404 $ 172,404 Customer lists, trademarks and other intangible assets 65,025 71,206 Notes receivable 109,145 189,045 Long-term derivative assets 21,157 36,408 Prepaid pension and other benefits 106,209 73,100 Capitalized major maintenance 228,511 286,890 Cash value life insurance 130,673 122,792 Operating lease right of use assets 257,834 — Other 48,471 60,350 Total other assets $ 1,139,429 $ 1,012,195 Goodwill and Other Intangible Assets Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is assessed for impairment on an annual basis as of July 31, either by first assessing qualitative factors to determine whether a quantitative goodwill impairment test is necessary or by proceeding directly to the quantitative test. The quantitative test may be required more frequently if triggering events or other circumstances occur that could indicate impairment. Goodwill is assessed for impairment at the reporting unit level, which has been determined to be our operating segments or one level below our operating segments in certain instances. There were no changes in the net carrying amount of goodwill for the year ended August 31, 2020. Changes in the net carrying amount of goodwill for the year ended August 31, 2019, by segment, are as follows: Energy Ag Corporate Total (Dollars in thousands) Balances, August 31, 2018 $ 552 $ 127,338 $ 10,574 $ 138,464 Goodwill acquired during the period — 61,358 — 61,358 Impairment — (27,418) — (27,418) Balances, August 31, 2019 552 161,278 10,574 172,404 Goodwill of $61.4 million acquired during the third quarter of fiscal 2019 was related to our acquisition of the remaining 75% ownership in West Central Distribution, LLC ("WCD") that we did not previously own. See Note 20, Acquisitions , for additional information related to the acquisition. No goodwill has been allocated to our Nitrogen Production segment, which consists of a single investment accounted for under the equity method. The outbreak and pandemic of the novel coronavirus known as COVID-19 and other factors resulted in substantial reductions in demand and sharp price declines in certain industries in which we operate during fiscal 2020, particularly with respect to the production of renewable fuels, other energy products and processing and food ingredients. Based on these deteriorated macroeconomic and industry conditions, management considered the impacts on each of our businesses and determined that we needed to perform interim impairment assessments of goodwill and asset groups, during our third quarter, for a reporting unit within our Ag segment that operates in the renewable fuels industry. Third-party price outlooks, projections of future volumes, expenses and other cash flows and a discount rate reflective of the relative risk of the cash flows were used to estimate fair value. Management believes the assumptions utilized in the assessment are appropriate and reasonable for estimating fair value. The estimated fair value of the reporting unit exceeded the carrying amount by approximately 18%, and thus no impairment was recorded. As a result of our annual goodwill impairment analyses performed as of July 31, 2019, we recorded a goodwill impairment charge of $27.4 million associated with a reporting unit in our Ag segment. The impairment charge primarily resulted from changing market dynamics that reduced future profitability within the reporting unit, as well as strategy changes and the challenging economic environment in the agriculture industry. The impairment charge was recorded in marketing, general and administrative expenses in the Consolidated Statement of Operations for the year ended August 31, 2019. No material impairments related to long-lived assets were recorded, and no goodwill impairments were identified as a result of our annual goodwill analyses performed as of July 31, 2020 or 2018. Management will continue to monitor the results and projected cash flows for each of our businesses to assess whether any reserves or impairments may be necessary in the future, particularly for our businesses that have experienced or could experience substantial reductions in demand or price declines associated with the COVID-19 pandemic. Intangible assets subject to amortization primarily include customer lists, trademarks and noncompete agreements, and are amortized over their respective useful lives (ranging from two Acquisitions , for additional information related to the acquisition. Information regarding intangible assets is as follows: August 31, 2020 August 31, 2019 Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 84,895 $ (23,770) $ 61,125 $ 84,815 $ (17,609) $ 67,206 Trademarks and other intangible assets 10,735 (6,835) 3,900 9,736 (5,736) 4,000 Total intangible assets $ 95,630 $ (30,605) $ 65,025 $ 94,551 $ (23,345) $ 71,206 Intangible asset amortization expense for the years ended August 31, 2020, 2019 and 2018, was $7.3 million, $5.3 million and $3.4 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows: (Dollars in thousands) 2021 $ 8,215 2022 7,973 2023 7,870 2024 7,660 2025 7,345 Thereafter 25,866 Total $ 64,929 Capitalized Major Maintenance Activity related to capitalized major maintenance costs at our refineries for the years ended August 31, 2020, 2019 and 2018, is summarized below: Balance at Cost Amortization Balance at (Dollars in thousands) 2020 $ 286,890 $ 14,496 $ (72,875) $ 228,511 2019 130,780 224,406 (68,296) 286,890 2018 105,006 87,460 (61,686) 130,780 |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
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 August 31, 2020. Notes Payable Notes payable as of August 31, 2020 and 2019, consisted of the following: Weighted-average Interest Rate 2020 2019 2020 2019 (Dollars in thousands) Notes payable 1.96% 3.36% $ 763,215 $ 1,330,550 CHS Capital notes payable 1.29% 2.90% 812,276 825,558 Total notes payable $ 1,575,491 $ 2,156,108 Our primary line of credit is a five We maintain a series of uncommitted bilateral facilities that are renewed annually. Amounts borrowed under these short-term credit facilities are used to fund our working capital. The following table summarizes our primary lines of credit as of August 31, 2020 and 2019: Primary Revolving Credit Facilities Fiscal Year Total Capacity Borrowings Outstanding Interest Rates 2020 2020 2019 (Dollars in thousands) Committed five-year unsecured facility 2024 $ 2,750,000 $ 345,000 $ 335,000 LIBOR or base rate +0.00% to 1.55% Uncommitted bilateral facilities* 2021 300,000 — 430,000 LIBOR or base rate + applicable margin *Total capacity for the uncommitted bilateral facilities was $630.0 million at August 31, 2019. As of August 31, 2020, the uncommitted bilateral facilities do not include $300.0 million of capacity with a banking partner for which we are currently in the process of terminating the related agreement. In addition to our facilities above, our wholly-owned subsidiaries, CHS Europe S.a.r.l. and CHS Agronegocio Industria e Comercio Ltda, had uncommitted lines of credit with $318.4 million outstanding as of August 31, 2020. In addition, our other international subsidiaries had lines of credit outstanding of $69.7 million as of August 31, 2020. CHS Capital Notes Payable 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 amount available under the Securitization Facility fluctuates over time based on the total amount of eligible Receivables generated during the normal course of business. As of August 31, 2020, total availability under the Securitization Facility was $423.0 million, all of which had been utilized. We also have a 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 August 31, 2020 and 2019, the outstanding balance under the Repurchase Facility was $150.0 million. On June 26, 2020, we amended our existing Securitization Facility and Repurchase Facility. As a result of the amendment, the maximum availability of the Securitization Facility was decreased from $700.0 million to $500.0 million. On September 24, 2020 the Securitization Facility and Repurchase Facility were further amended increasing the maximum availability under the Securitization Facility to $600.0 million from $500.0 million and extending their respective termination dates to July 30, 2021. CHS Capital sells loan commitments it has originated to Compeer Financial, PCA, d/b/a ProPartners Financial on a recourse basis. The total outstanding commitments under the program were $150.0 million as of August 31, 2020, of which $133.3 million was borrowed under these commitments with an interest rate of 1.45%. CHS Capital borrows funds under short-term notes issued as part of a surplus funds program. Borrowings under this program are unsecured and bear interest at variable rates ranging from 0.35% to 1.40% as of August 31, 2020, and are due upon demand. Borrowings under these notes totaled $134.9 million as of August 31, 2020. On September 30, 2019, CHS Capital entered into a credit agreement with a revolving note. Under this agreement, CHS Capital had available capacity of $100.0 million of which no amount was outstanding as of August 31, 2020. This agreement matured subsequent to August 31, 2020, and was not renewed. Long-Term Debt During the year ended August 31, 2020, we repaid approximately $25.4 million of long-term debt consisting of scheduled debt maturities and optional prepayments. On August 14, 2020, we entered into a Note Purchase Agreement to borrow $375.0 million of long-term debt in the form of notes that was funded on November 2, 2020. Amounts included in long-term debt on our Consolidated Balance Sheets as of August 31, 2020 and 2019, are presented in the table below. 2020 2019 (Dollars in thousands) 4.00% unsecured notes $100 million face amount, due in equal installments beginning in fiscal 2017 through fiscal 2021 $ 20,000 $ 40,000 4.52% unsecured notes $160 million face amount, due in fiscal 2021 162,090 161,978 4.67% unsecured notes $130 million face amount, due in fiscal 2023 137,623 136,086 4.39% unsecured notes $152 million face amount, due in fiscal 2023 152,000 152,000 3.85% unsecured notes $80 million face amount, due in fiscal 2025 80,000 80,000 3.80% unsecured notes $100 million face amount, due in fiscal 2025 100,000 100,000 4.58% unsecured notes $150 million face amount, due in fiscal 2025 154,012 151,776 4.82% unsecured notes $80 million face amount, due in fiscal 2026 80,000 80,000 4.69% unsecured notes $58 million face amount, due in fiscal 2027 58,000 58,000 4.74% unsecured notes $95 million face amount, due in fiscal 2028 95,000 95,000 4.89% unsecured notes $100 million face amount, due in fiscal 2031 100,000 100,000 4.71% unsecured notes $100 million face amount, due in fiscal 2033 100,000 100,000 5.40% unsecured notes $125 million face amount, due in fiscal 2036 125,000 125,000 Private placement debt 1,363,725 1,379,840 2.25% unsecured term loans from cooperative and other banks, due in fiscal 2025 (a) 366,000 366,000 Bank financing 366,000 366,000 Finance lease liabilities 31,460 28,239 Other notes and contracts with interest rates from 0.0% to 10.0% 34,709 18,601 Deferred financing costs (4,771) (3,569) Total long-term debt 1,791,123 1,789,111 Less current portion 189,287 39,210 Long-term portion $ 1,601,836 $ 1,749,901 (a) Borrowings are variable under the agreement and bear interest at a base rate (or LIBOR) plus an applicable margin. As of August 31, 2020, the fair value of our long-term debt is estimated to be $1.9 billion based on quoted market prices of similar debt (a Level 2 fair value measurement based on the classification hierarchy of ASC Topic 820, Fair Value Measurement ). We have a 10-year term loan with a syndicate of banks. The agreement provides for committed term loans in an amount up to $600.0 million. As of August 31, 2020, $236.0 million of term loans were outstanding under this agreement. The agreement includes a revolving feature, whereby we are able to pay down and re-advance an amount up to $300.0 million of the $600.0 million. As of August 31, 2020, $130.0 million of revolving loans were outstanding under this agreement. Principal on the outstanding balances is payable in full in September 2025. Long-term debt outstanding as of August 31, 2020, has aggregate maturities, excluding fair value adjustments and finance leases (see Note 19, Leases , for a schedule of minimum future lease payments under finance leases), as follows: (Dollars in thousands) 2021 $ 181,628 2022 30,828 2023 282,828 2024 780 2025 696,780 Thereafter 558,103 Total $ 1,750,947 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Aug. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure | Other Current Liabilities Other current liabilities as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Customer margin deposits and credit balances $ 149,539 $ 143,049 Customer advance payments 300,100 336,645 Derivative liabilities (Note 15) 416,204 241,957 Dividends and equity payable 63,000 180,000 Total other current liabilities $ 928,843 $ 901,651 |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes CHS is a nonexempt agricultural cooperative and files a consolidated federal income tax return within our tax return period. We are subject to tax on income from nonpatronage sources, nonqualified patronage distributions and undistributed patronage-sourced income. Income tax (benefit) expense is primarily the current tax payable for the period and the change during the period in certain deferred tax assets and liabilities. Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities recognized under U.S. GAAP and such amounts recognized for federal and state income tax purposes, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. The (benefit from) provision for income taxes for the years ended August 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 (Dollars in thousands) Current: Federal $ 4,519 $ 211 $ 15,576 State (2,231) 3,815 7,041 Foreign 2,748 (2,630) 20,268 Total Current 5,036 1,396 42,885 Deferred: Federal (36,231) (4,923) (146,780) State (5,263) (8,491) (127) Foreign (273) (438) (54) Total Deferred (41,767) (13,852) (146,961) Total $ (36,731) $ (12,456) $ (104,076) Domestic income before income taxes was $324.4 million, $825.7 million and $717.4 million for the years ended August 31, 2020, 2019 and 2018, respectively. Foreign income (loss) before income taxes was $62.5 million, ($3.1) million and ($46.2) million for the years ended August 31, 2020, 2019 and 2018, respectively. Deferred taxes are comprised of basis differences related to investments, accrued liabilities and certain federal and state tax credits. Deferred tax assets and liabilities as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Deferred tax assets: Accrued expenses $ 51,560 $ 62,245 Postretirement health care and deferred compensation 42,898 42,747 Tax credit carryforwards 123,193 152,347 Loss carryforwards 116,741 136,435 Nonqualified equity 344,924 290,447 Lease obligations 64,140 — Other 85,856 97,071 Deferred tax assets valuation reserve (219,891) (246,344) Total deferred tax assets 609,421 534,948 Deferred tax liabilities: Pension 17,131 11,237 Investments 95,916 99,838 Major maintenance 91 4,679 Property, plant and equipment 556,160 560,334 Right of use asset 64,140 — Other 15,326 1,760 Total deferred tax liabilities 748,764 677,848 Net deferred tax liabilities $ 139,343 $ 142,900 We have total gross loss carryforwards of $576.6 million, of which $366.9 million will expire over periods ranging from fiscal 2021 to fiscal 2041. The remainder will carry forward indefinitely. Based on estimates of future taxable profits and losses in certain foreign tax jurisdictions, as well as consideration of other factors, we assessed whether a valuation allowance was necessary to reduce specific foreign loss carryforwards to amounts we believe are more likely than not to be realized as of August 31, 2020. If our estimates prove inaccurate, adjustments to the valuation allowances may be required in the future with gains or losses being charged to income in the period such determination is made. McPherson refinery's gross state tax credit carryforwards for income tax were approximately $125.5 million and $123.3 million as of August 31, 2020 and 2019, respectively. McPherson refinery's valuation allowance on Kansas state credits is necessary due to the limited amount of taxable income generated in Kansas by the combined group on an annual basis. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was signed into law. As a result, our alternative minimum tax credit became refundable and has been classified in other current assets on the Consolidated Balance Sheet as of August 31, 2020. Our general business credits of $59.1 million, comprised primarily of low-sulfur diesel credits, will begin to expire on August 31, 2027, and our state tax credits of $125.5 million began to expire on August 31, 2020. The reconciliation of the statutory federal income tax rates to the effective tax rates for the years ended August 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 25.7 % State and local income taxes, net of federal income tax benefit (1.8) (0.7) 0.7 Patronage earnings (13.1) (14.3) (13.6) Domestic production activities deduction (19.0) (9.9) (8.4) Export activities at rates other than the U.S. statutory rate 1.8 (2.1) 5.7 U.S. tax reform — — (23.2) Intercompany transfer of business assets (1.6) — (6.1) Increase in unrecognized tax benefits 4.2 0.2 6.8 Valuation allowance (1.0) 2.6 (3.0) Tax credits 0.2 0.4 0.7 Other (0.2) 1.3 (0.8) Effective tax rate (9.5) % (1.5) % (15.5) % On December 22, 2017, the Tax Cuts and Jobs Act ("Tax Act") was enacted into law. The Tax Act provides for significant U.S. tax law changes that reduced our federal corporate statutory tax rate from 35% to 21% as of January 1, 2018. As a fiscal year-end taxpayer, our annual statutory federal corporate tax rate applicable to fiscal 2018 was a blended rate of 25.7%. For fiscal 2020 and fiscal 2019, the annual statutory federal corporate tax rate was 21%. Primary drivers of the fiscal 2020 income tax benefit were retaining the current Domestic Production Activities Deduction ("DPAD") benefit and from the settlement of a U.S. federal audit resulting in additional tax credit carryovers, which were partially offset by an increase in our unrecognized deferred tax benefit. Primary drivers of the fiscal 2019 income tax benefit were retaining the current DPAD benefit and deducting previously disallowed DPAD available from the carryback of excise tax credits, which were partially offset by an increase in our unrecognized deferred tax benefit as described below. Primary drivers of the fiscal 2018 income tax benefit were recognition of deferred benefits from revaluation of our net deferred tax liability resulting from the Tax Act, an intercompany transfer of a business on December 1, 2017, and a current tax benefit from retaining a significant portion of the DPAD, which were partially offset by deferred tax expense from an increase in our unrecognized tax benefit as described below. We file income tax returns in the U.S. federal jurisdiction, as well as various state and foreign jurisdictions. Our uncertain tax positions are affected by the tax years that are under audit or remain subject to examination by the relevant taxing authorities. In addition to the current year, fiscal 2007 through 2019 remain subject to examination, at least for certain issues. Reserves are recorded against unrecognized tax benefits when we believe certain fully supportable tax return positions are likely to be challenged and we may or may not prevail. If we determine that a tax position is more likely than not to be sustained upon audit, based on the technical merits of the position, we recognize the benefit by measuring the amount that is greater than 50% likely of being realized. We reevaluate the technical merits of our tax positions and recognize an uncertain tax benefit, or derecognize a previously recorded tax benefit, when there is (i) a completion of a tax audit, (ii) effective settlement of an issue, (iii) a change in applicable tax law including a tax case or legislative guidance, or (iv) expiration of the applicable statute of limitations. Significant judgment is required in accounting for tax reserves. A reconciliation of the gross beginning and ending amounts of unrecognized tax benefits for the periods presented follows: 2020 2019 2018 (Dollars in thousands) Balance at beginning of period $ 101,128 $ 91,135 $ 37,830 Additions attributable to current year tax positions 14,410 14,162 3,640 Additions attributable to prior year tax positions 6,128 — 49,665 Reductions attributable to prior year tax positions (2,516) (4,169) — Balance at end of period $ 119,150 $ 101,128 $ 91,135 If we were to prevail on all positions taken in relation to uncertain tax positions, $111.3 million of the unrecognized tax benefits would ultimately benefit our effective tax rate. It is reasonably possible that the total amount of unrecognized tax benefits could significantly change in the next 12 months. We recognize interest and penalties related to unrecognized tax benefits in our provision for income taxes. We recognized $1.0 million benefit and $1.7 million expense for interest and penalties related to unrecognized tax benefits in our Consolidated Statement of Operations for the years ended August 31, 2020 and 2019, respectively, and a related $1.0 million and $2.9 million interest payable on our Consolidated Balance Sheet as of August 31, 2020 and 2019, respectively. No interest or penalties were recognized in our Consolidated Statements of Operations for the year ended August 31, 2018. |
Equities
Equities | 12 Months Ended |
Aug. 31, 2020 | |
Equity [Abstract] | |
Equities | Equities Patronage and Equity Redemptions In accordance with our bylaws and by action of the Board of Directors, annual net earnings from patronage sources are distributed to consenting patrons following the close of each fiscal year and are based on amounts using financial statement earnings. The cash portion of the qualified patronage distribution, if any, is determined annually by the Board of Directors, with the balance issued in the form of qualified and/or nonqualified capital equity certificates. Total patronage distributions for fiscal 2020 are estimated to be $242.0 million, with the qualified cash portion estimated to be $30.0 million and nonqualified equity distributions of $212.0 million. No portion of annual net earnings for fiscal 2020 will be issued in the form of qualified capital equity certificates. Patronage distributions for the years ended August 31, 2019, 2018 and 2017 were $564.5 million (with a $90.1 million cash portion), $428.8 million (with a $75.8 million cash portion) and $128.8 million (with no cash portion), respectively. Annual net earnings from patronage or other sources may be added to the unallocated capital reserve or, upon action by the Board of Directors, may be allocated to members in the form of nonpatronage equity certificates. The Board of Directors authorized, in accordance with our bylaws, that 10% of the earnings from patronage business for fiscal 2020, 2019 and 2018 be added to our capital reserves. Redemptions of outstanding equity are at the discretion of the Board of Directors. Redemptions of capital equity certificates approved by the Board of Directors are divided into two pools, one for nonindividuals (primarily member cooperatives) who may participate in an annual redemption program for qualified equities held by them and another for individual members who are eligible for equity redemptions at age 70 or upon death. The CHS redemption policy includes a redemption program for individuals similar to the one that is available to nonindividual members, subject to CHS Board of Directors overall discretion whether to redeem outstanding equity. In accordance with authorization from the Board of Directors, we expect total redemptions related to the year ended August 31, 2020, that will be distributed in fiscal 2021, to be approximately $33.0 million. This amount is classified as a current liability on our August 31, 2020, Consolidated Balance Sheet. During the years ended August 31, 2020, 2019 and 2018, we redeemed in cash, outstanding owners' equities in accordance with authorization from the Board of Directors, in the amounts of $96.4 million, $85.5 million and $8.8 million, respectively. Preferred Stock The following is a summary of our outstanding preferred stock as of August 31, 2020, all shares of which are listed and traded on The Nasdaq: Nasdaq Symbol Issuance Date Shares Outstanding Redemption Value Net Proceeds (a) Dividend Rate Dividend Payment Frequency Redeemable Beginning (d) (Dollars in millions) 8% Cumulative Redeemable CHSCP (e) 12,272,003 $ 306.8 $ 311.2 8.00 % Quarterly 7/18/2023 Class B Cumulative Redeemable, Series 1 CHSCO (f) 21,459,066 536.5 569.3 7.875 % Quarterly 9/26/2023 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN 3/11/2014 16,800,000 420.0 406.2 7.10 % Quarterly 3/31/2024 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM 9/15/2014 19,700,000 492.5 476.7 6.75 % Quarterly 9/30/2024 Class B Cumulative Redeemable, Series 4 CHSCL 1/21/2015 20,700,000 517.5 501.0 7.50 % Quarterly 1/21/2025 (a) Includes patrons' equities redeemed with preferred stock. (b) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 accumulates dividends at a rate of 7.10% per year until March 31, 2024, and then at a rate equal to the three-month LIBOR plus 4.298%, not to exceed 8.00% per annum, subsequent to March 31, 2024. (c) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulates dividends at a rate of 6.75% per year until September 30, 2024, and then at a rate equal to the three-month LIBOR plus 4.155%, not to exceed 8.00% per annum, subsequent to September 30, 2024. (d) Preferred stock is redeemable for cash at our option, in whole or in part, at a per share price equal to the per share liquidation preference of $25.00 per share, plus all dividends accumulated and unpaid on that share to and including the date of redemption, beginning on the dates set forth in this column. (e) The 8% Cumulative Redeemable Preferred Stock was issued at various times from 2003 through 2010. (f) Shares of Class B Cumulative Redeemable Preferred Stock, Series 1 were issued on September 26, 2013; August 25, 2014; March 31, 2016; and March 30, 2017. Preferred Stock Dividends We made dividend payments on our preferred stock of $168.7 million during each of the years ended August 31, 2020, 2019 and 2018. As of August 31, 2020, we have no authorized but unissued shares of preferred stock. The following is a summary of dividends per share by series of preferred stock for the years ended August 31, 2020 and 2019. Years Ended August 31, Nasdaq Symbol 2020 2019 (Dollars per share) 8% Cumulative Redeemable CHSCP $ 2.00 $ 2.00 Class B Cumulative Redeemable, Series 1 CHSCO 1.97 1.97 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN 1.78 1.78 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM 1.69 1.69 Class B Cumulative Redeemable, Series 4 CHSCL 1.88 1.88 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component, for the years ended August 31, 2020, 2019 and 2018 are as follows: Pension and Other Postretirement Benefits Unrealized Net Gain (Loss) on Available for Sale Investments Cash Flow Hedges Foreign Currency Translation Adjustment Total (Dollars in thousands) Balance as of August 31, 2017, net of tax $ (132,444) $ 10,041 $ (6,954) $ (51,003) $ (180,360) Other comprehensive income (loss), before tax: Amounts before reclassifications 7,633 21,078 1,031 (10,062) 19,680 Amounts reclassified out 21,804 (25,534) 1,704 (2,042) (4,068) Total other comprehensive income (loss), before tax 29,437 (4,456) 2,735 (12,104) 15,612 Tax effect (9,371) 1,308 (195) 83 (8,175) Other comprehensive income (loss), net of tax 20,066 (3,148) 2,540 (12,021) 7,437 Reclassification of tax effects to capital reserves (27,957) 1,968 (1,468) 465 (26,992) 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 (51,118) — 37,709 (9,990) (23,399) Amounts reclassified out 10,279 — (9,843) — 436 Total other comprehensive income (loss), before tax (40,839) — 27,866 (9,990) (22,963) Tax effect 8,280 — (7,670) 41 651 Other comprehensive income (loss), net of tax (32,559) — 20,196 (9,949) (22,312) Reclassifications 416 (8,861) 983 2,756 (4,706) 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 (4,751) — 16,430 (17,021) (5,342) Amounts reclassified out 19,908 — (22,291) — (2,383) Total other comprehensive income (loss), before tax 15,157 — (5,861) (17,021) (7,725) Tax effect (2,359) — 1,450 1,643 734 Other comprehensive income (loss), net of tax 12,798 — (4,411) (15,378) (6,991) Balance as of August 31, 2020, net of tax $ (159,680) $ — $ 10,886 $ (85,130) $ (233,924) Amounts reclassified from accumulated other comprehensive income (loss) were related to pension and other postretirement benefits, cash flow hedges, available-for-sale investments and foreign currency translation adjustments. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts and are recorded as cost of goods sold and marketing, general and administrative expenses (see Note 13, Benefit Plans , for further information). Gains or losses on the sale of available-for-sale investments are recorded to other income. Foreign currency translation reclassifications related to sales of businesses are recorded to other income. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans We have various pension and other defined benefit as well as defined contribution plans in which substantially all employees may participate. We also have nonqualified supplemental executive and Board retirement plans. We provide defined life insurance and health care benefits for certain retired employees and Board of Directors participants. The plan is contributory based on years of service and family status, with retiree contributions adjusted annually. Financial information on changes in projected benefit obligation, plan assets funded and balance sheet status as of August 31, 2020 and 2019, is as follows: Qualified Nonqualified Other Benefits 2020 2019 2020 2019 2020 2019 (Dollars in thousands) Change in benefit obligation: Projected benefit obligation at beginning of period $ 876,696 $ 767,184 $ 19,047 $ 20,755 $ 31,098 $ 29,790 Service cost 42,151 38,592 405 311 1,050 1,053 Interest cost 21,722 28,396 429 747 747 1,094 Actuarial loss (gain) 6,265 (9,606) 1,382 76 (2,286) (2,596) Assumption change 40,694 102,441 775 1,841 1,275 3,398 Plan amendments — 18 — — — — Settlements — (615) (2,130) (3,975) — — Benefits paid (69,526) (49,714) (725) (708) (1,568) (1,641) Projected benefit obligation at end of period $ 918,002 $ 876,696 $ 19,183 $ 19,047 $ 30,316 $ 31,098 Change in plan assets: Fair value of plan assets at beginning of period $ 909,427 $ 829,616 $ — $ — $ — $ — Actual gain on plan assets 90,241 90,139 — — — — Company contributions 46,400 40,001 2,855 4,683 1,568 1,641 Settlements — (615) (2,130) (3,975) — — Benefits paid (69,526) (49,714) (725) (708) (1,568) (1,641) Fair value of plan assets at end of period $ 976,542 $ 909,427 $ — $ — $ — $ — Funded status at end of period $ 58,540 $ 32,731 $ (19,183) $ (19,047) $ (30,316) $ (31,098) Amounts recognized on balance sheet: Noncurrent assets $ 58,540 $ 32,731 $ — $ — $ — $ — Accrued benefit cost: Current liabilities — — (1,660) (1,580) (2,090) (2,040) Noncurrent liabilities — — (17,523) (17,467) (28,226) (29,058) Ending balance $ 58,540 $ 32,731 $ (19,183) $ (19,047) $ (30,316) $ (31,098) Amounts recognized in accumulated other comprehensive loss (pretax): Prior service cost (credit) $ 938 $ 1,117 $ (502) $ (616) $ (2,715) $ (3,160) Net loss (gain) 225,983 244,164 3,813 2,151 (15,064) (15,445) Ending balance $ 226,921 $ 245,281 $ 3,311 $ 1,535 $ (17,779) $ (18,605) The accumulated benefit obligation of the qualified pension plans was $871.6 million and $833.2 million at August 31, 2020 and 2019, respectively. The accumulated benefit obligation of the nonqualified pension plans was $18.2 million and $16.9 million at August 31, 2020 and 2019, respectively. Information for the pension plans with an accumulated benefit obligation in excess of plan assets is set forth below: Years Ended August 31, 2020 2019 (Dollars in thousands) Projected benefit obligation $ 19,183 $ 19,047 Accumulated benefit obligation 18,172 16,907 Components of net periodic benefit costs for the years ended August 31, 2020, 2019 and 2018, are as follows: Qualified Nonqualified Other Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 (Dollars in thousands) Components of net periodic benefit costs: Service cost $ 42,151 $ 38,592 $ 39,677 $ 405 $ 311 $ 548 $ 1,050 $ 1,053 $ 943 Interest cost 21,722 28,396 24,007 429 747 711 747 1,094 908 Expected return on assets (46,684) (44,968) (48,159) — — — — — — Settlement of retiree obligations — 51 — — 191 (112) — — — Prior service cost (credit) amortization 178 190 1,437 (114) (75) 30 (445) (556) (565) Actuarial loss (gain) amortization 21,583 12,348 18,073 98 2 61 (1,392) (1,627) (1,224) Net periodic benefit cost (benefit) $ 38,950 $ 34,609 $ 35,035 $ 818 $ 1,176 $ 1,238 $ (40) $ (36) $ 62 Weighted-average assumptions to determine the net periodic benefit cost: Discount rate 3.06 % 4.23 % 3.80 % 2.70 % 4.09 % 3.53 % 2.89 % 4.08 % 3.56 % Expected return on plan assets 5.50 % 5.50 % 5.75 % N/A N/A N/A N/A N/A N/A Rate of compensation increase 5.28 % 5.14 % 5.08 % 5.28 % 5.14 % 5.08 % N/A N/A N/A Weighted-average assumptions to determine the benefit obligations: Discount rate 2.67 % 3.06 % 4.23 % 2.15 % 2.70 % 4.09 % 2.43 % 2.89 % 4.13 % Rate of compensation increase 4.99 % 5.28 % 5.14 % 4.99 % 5.28 % 5.14 % N/A N/A N/A Components of net periodic benefit costs and amounts recognized in other comprehensive loss (income) for the years ended August 31, 2020, 2019 and 2018, are as follows: Qualified Nonqualified Other Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 (Dollars in thousands) Other comprehensive loss (income): Prior service cost $ — $ 18 $ 244 $ — $ — $ — $ — $ — $ — Net actuarial loss (gain) 3,401 47,556 (8,553) 2,157 1,917 (578) (1,011) 801 (2,234) Amortization of actuarial (gain) loss (21,583) (12,307) (18,073) (98) (2) (61) 1,392 1,627 1,224 Amortization of prior service (credit) costs (178) (190) (1,437) 114 75 (30) 445 556 565 Settlement of retiree obligations (a) — — — (397) (191) 112 — — — Total recognized in other comprehensive loss (income) $ (18,360) $ 35,077 $ (27,819) $ 1,776 $ 1,799 $ (557) $ 826 $ 2,984 $ (445) (a) Reflects amounts reclassified from accumulated other comprehensive loss (income) to net earnings. Estimated amortization in fiscal 2021 from accumulated other comprehensive loss into net periodic benefit cost is as follows: Qualified Nonqualified Other (Dollars in thousands) Amortization of prior service cost (credit) $ 178 $ (114) $ (445) Amortization of actuarial loss (gain) 21,790 212 (1,365) A significant assumption for pension costs and obligations is the discount rate. We utilize a full-yield curve approach by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The discount rate reflects the rate at which the associated benefits could be effectively settled as of the measurement date. In estimating this rate, we look at rates of return on fixed-income investments of similar duration to the liabilities in the plans that receive high investment-grade ratings by recognized ratings agencies. For measurement purposes, a 7.1% annual rate of increase in the per capita cost of covered health care benefits was assumed for the year ended August 31, 2020. The rate was assumed to decrease gradually to 4.5% by 2027 and remain at that level thereafter. An annual analysis of the risk versus the return of the investment portfolio is conducted to justify the expected long-term rate of return assumption. We generally use long-term historical return information for the targeted asset mix identified in asset and liability studies. Adjustments are made to the expected long-term rate of return assumption, when deemed necessary, based upon revised expectations of future investment performance of the overall investment markets. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in the assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease (Dollars in thousands) Effect on total of service and interest cost components $ 200 $ (170) Effect on postretirement benefit obligation 2,100 (1,800) Contributions depend primarily on market returns on the pension plan assets and minimum funding level requirements. During fiscal 2020, we made a discretionary contribution of $46.4 million to the pension plans. Based on the funded status of the qualified pension plans as of August 31, 2020, we do not believe we will be required to contribute to these plans in fiscal 2021, although we may voluntarily elect to do so. We expect to pay $3.8 million to participants of the nonqualified pension and postretirement benefit plans during fiscal 2021. Our retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows: Qualified Nonqualified Other Benefits (Dollars in thousands) 2021 $ 75,700 $ 1,660 $ 2,090 2022 65,900 1,840 2,280 2023 63,500 1,840 2,470 2024 64,700 1,620 2,450 2025 65,300 1,820 2,450 2026-2030 326,700 8,010 9,790 We have trusts that hold the assets for the defined benefit plans. CHS has a qualified plan committee that sets investment guidelines with the assistance of external consultants. Investment objectives for the plans' assets are as follows: • Optimization of the long-term returns on plan assets at an acceptable level of risk; • Maintenance of broad diversification across asset classes and among investment managers; and • Focus on long-term return objectives. Asset allocation targets promote optimal expected return and volatility characteristics given the long-term time horizon for fulfilling the obligations of the pension plans. The investment portfolio contains a diversified portfolio of investment categories, including equities, fixed-income securities and real estate. Securities are also diversified in terms of domestic and international securities, short- and long-term securities, growth and value equities, large and small cap stocks, as well as active and passive management styles. Our pension plans' investment policy strategy is such that liabilities match assets. This is being accomplished through the asset portfolio mix by reducing volatility and de-risking the plans. The plans' target allocation percentages range between 45% and 65% for fixed income securities and range between 35% and 55% for equity securities. The qualified plan committee believes that with prudent risk tolerance and asset diversification, the plans should be able to meet pension obligations in the future. Our pension plans' recurring fair value measurements by asset category at August 31, 2020 and 2019, are presented in the tables below: 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Cash and cash equivalents $ 57,801 $ — $ — $ 57,801 Equities: Common/collective trust at net asset value (1) — — — 219,050 Fixed income securities: Common/collective trust at net asset value (1) — — — 603,250 Partnership and joint venture interests measured at net asset value (1) — — — 94,400 Other assets measured at net asset value (1) — — — 2,041 Total $ 57,801 $ — $ — $ 976,542 2019 Level 1 Level 2 Level 3 Total (Dollars in thousands) Cash and cash equivalents $ 7,938 $ — $ — $ 7,938 Equities: Common/collective trust at net asset value (1) — — — 209,860 Fixed income securities: Common/collective trust at net asset value (1) — — — 574,296 Partnership and joint venture interests measured at net asset value (1) — — — 101,641 Other assets measured at net asset value (1) — — — 15,692 Total $ 7,938 $ — $ — $ 909,427 (1) In accordance with ASC Topic 820-10, Fair Value Measurement, certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of net assets. Definitions for valuation levels are found in Note 16, Fair Value Measurements . We use the following valuation methodologies for assets measured at fair value. Common/collective trusts. Common/collective trusts primarily consist of equity and fixed income funds and are valued using other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risks, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the trust, etc.). Common/collective trust investments can be redeemed daily and without restriction. Redemption of the entire investment balance generally requires a 45- to 60-day notice period. The equity funds provide exposure to large, mid and small cap U.S. equities, international large and small cap equities and emerging market equities. The fixed income funds provide exposure to U.S., international and emerging market debt securities. Partnership and joint venture interests. Valued at the net asset value of shares held by the plan at year-end as a practical expedient for fair value. The net asset value is based on the fair value of the underlying assets owned by the trust, minus its liabilities, then divided by the number of units outstanding. Redemptions of these interests generally require a 45- to 60-day notice period. Other assets. Other assets primarily include real estate funds and hedge funds held in the asset portfolio of our U.S. defined benefit pension plans. We are one of approximately 400 employers that contribute to the Co-op Retirement Plan ("Co-op Plan"), which is a defined benefit plan constituting a "multiple employer plan" under the Internal Revenue Code of 1986, as amended, and a "multiemployer plan" under the accounting standards. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and • If we choose to stop participating in the multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The withdrawal liability associated with the multiemployer plan was approximately $46.0 million as of August 31, 2020. Our participation in the Co-op Plan for the years ended August 31, 2020, 2019 and 2018, is outlined in the table below: Contributions of CHS (Dollars in thousands) Plan Name EIN/Plan Number 2020 2019 2018 Surcharge Imposed Expiration Date of Collective Bargaining Agreement Co-op Retirement Plan 01-0689331 / 001 $ 1,455 $ 1,712 $ 1,662 N/A N/A Our contributions for the years stated above did not represent more than 5% of total contributions to the Co-op Plan as indicated in the Co-op Plan's most recently available annual report (Form 5500). Provisions of the Pension Protection Act of 2006 ("PPA") do not apply to the Co-op Plan because there is a special exemption for cooperative plans if the plan is maintained by more than one employer and at least 85% of the employers are rural cooperatives or cooperative organizations owned by agricultural producers. In the Co-op Plan, a "zone status" determination is not required, and therefore not determined. In addition, the accumulated benefit obligations and plan assets are not determined or allocated separately by individual employers. The most recent financial statements available in 2020 and 2019 are for the Co-op Plan's year-end at March 31, 2020 and 2019, respectively. In total, the Co-op Plan was at least 80% funded on those dates based on the total plan assets and accumulated benefit obligations. Because the provisions of the PPA do not apply to the Co-op Plan, funding improvement plans and surcharges are not applicable. Future contribution requirements are determined each year as part of the actuarial valuation of the plan and may change as a result of plan experience. In addition to the contributions to the Co-op Plan listed above, total contributions to individually insignificant multi-employer pension plans were immaterial in fiscal 2020, 2019 and 2018. We have other contributory defined contribution plans covering substantially all employees. Total contributions by us to these plans were $34.5 million, $31.0 million and $24.7 million, for the years ended August 31, 2020, 2019 and 2018, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Aug. 31, 2020 | |
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 nutrients 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 the business. We have aggregated those operating segments into three reportable segments: Energy, Ag and Nitrogen Production. Our Energy segment produces and provides primarily for the wholesale distribution of petroleum products and transportation of those products. Our Ag segment purchases and further processes or resells grains and oilseeds originated by our country operations business, by our member cooperatives and by third parties; serves as a wholesaler and retailer of crop inputs; and produces and markets ethanol. Our Nitrogen Production segment consists solely of our equity method investment in CF Nitrogen, which entitles us, pursuant to a supply agreement that we entered with CF Nitrogen, to purchase up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Corporate and Other represents our financing and hedging businesses, which primarily consists of a U.S. Commodity Futures Trading Commission-regulated futures commission merchant for commodities hedging, financial services related to crop production, and insurance which was disposed of in May 2018. Our nonconsolidated investments in Ventura Foods and Ardent Mills are also included in our Corporate and Other category. Corporate administrative expenses and interest are allocated to each reportable segment, along with Corporate and Other, based on direct use for services, such as information technology and legal, and other factors or considerations relevant to the costs incurred. Many of our business activities are highly seasonal and operating results vary throughout the year. For example, in our Ag segment, our 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 also subject to fluctuations in volume and earnings based on producer harvests, world grain prices and demand. Our Energy segment generally experiences higher volumes and profitability in certain operating areas, such as refined products, in the summer and early fall when gasoline and diesel fuel usage is highest and is subject to global supply and demand forces. Other energy products, such as propane, may experience higher volumes and profitability during the winter heating and 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, availability of a reliable rail and river transportation network, outbreaks of disease, government regulations and policies, global trade disputes, 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. We account for these investments primarily using the equity method of accounting, wherein we record our proportionate share of income or loss reported by the entity as equity income from investments, without consolidating the revenues and expenses of the entity in our Consolidated Statements of Operations. In our Nitrogen Production segment, this consists of our approximate 10% membership interest (based on product tons) in CF Nitrogen. In Corporate and Other, this principally includes our 50% ownership in Ventura Foods and our 12% ownership in Ardent Mills. See Note 6, Investments , for more information related to CF Nitrogen, Ventura Foods and Ardent Mills. Reconciling amounts represent the elimination of revenues between segments. Such transactions are executed at market prices to more accurately evaluate the profitability of the individual business segments. Segment information for the years ended August 31, 2020, 2019 and 2018 is presented in the tables below. The fiscal 2020 and fiscal 2019 results for our Ag segment include results associated with our acquisition of the remaining 75% ownership interest in WCD that we did not previously own on March 1, 2019, which were not included in our fiscal 2018 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 20, Acquisitions . Energy Ag Nitrogen Production Corporate Reconciling Total (Dollars in thousands) For the year ended August 31, 2020 Revenues, including intersegment revenues $ 5,820,154 $ 22,940,712 $ — $ 55,567 $ (410,068) $ 28,406,365 Intersegment revenues (389,020) (14,613) — (6,435) 410,068 — Revenues, net of intersegment revenues $ 5,431,134 $ 22,926,099 $ — $ 49,132 $ — $ 28,406,365 Operating earnings (loss) 219,861 82,543 (33,497) 8,358 — 277,265 Gain on disposal of business — (211) — (1,239) — (1,450) Interest expense 308 71,682 45,255 11,806 (12,074) 116,977 Other income (3,005) (35,349) (2,635) (9,510) 12,074 (38,425) Equity income from investments (2,759) (7,303) (127,954) (48,699) — (186,715) Income before income taxes $ 225,317 $ 53,724 $ 51,837 $ 56,000 $ — $ 386,878 Capital expenditures 175,169 158,903 — 84,287 — 418,359 Depreciation and amortization 245,983 196,510 — 34,882 — 477,375 Total assets as of August 31, 2020 4,447,526 6,325,857 2,681,616 2,538,948 — 15,993,947 Energy Ag Nitrogen Production Corporate Reconciling Total (Dollars in thousands) For the year ended August 31, 2019 Revenues, including intersegment revenues $ 7,581,450 $ 24,736,425 $ — $ 68,710 $ (486,132) $ 31,900,453 Intersegment revenues (462,374) (16,353) — (7,405) 486,132 — Revenues, net of intersegment revenues $ 7,119,076 $ 24,720,072 $ — $ 61,305 $ — $ 31,900,453 Operating earnings (loss) 615,662 65,181 (35,046) 13,805 — 659,602 Gain on disposal of business — (3,886) — — — (3,886) Interest expense 5,719 101,386 55,226 11,684 (6,950) 167,065 Other income (5,548) (70,888) (2,769) (10,168) 6,950 (82,423) Equity income from investments (2,697) (4,447) (160,373) (69,238) — (236,755) Income before income taxes $ 618,188 $ 43,016 $ 72,870 $ 81,527 $ — $ 815,601 Capital expenditures 268,877 110,197 — 64,142 — 443,216 Depreciation and amortization 233,624 208,294 — 31,293 — 473,211 Total assets as of August 31, 2019 4,401,793 6,415,580 2,730,306 2,899,815 — 16,447,494 Energy Ag Nitrogen Production Corporate Reconciling Total (Dollars in thousands) For the year ended August 31, 2018 Revenues, including intersegment revenues $ 8,068,717 $ 25,052,395 $ — $ 64,516 $ (502,281) $ 32,683,347 Intersegment revenues (479,598) (14,914) — (7,769) 502,281 — Revenues, net of intersegment revenues $ 7,589,119 $ 25,037,481 $ — $ 56,747 $ — $ 32,683,347 Operating earnings (loss) 388,112 93,728 (20,619) (8,857) — 452,364 Gain on disposal of business (65,862) (7,707) — (58,247) — (131,816) Interest expense 14,627 94,256 50,499 (7,712) (2,468) 149,202 Other income (9,698) (68,471) (3,061) (3,975) 2,468 (82,737) Equity (income) loss from investments (3,063) 1,392 (106,895) (44,949) — (153,515) Income before income taxes $ 452,108 $ 74,258 $ 38,838 $ 106,026 $ — $ 671,230 Capital expenditures 248,207 77,962 — 29,243 — 355,412 Depreciation and amortization 230,230 218,716 — 29,104 — 478,050 We have international sales, which are predominantly in our Ag segment. The following table presents our sales, based on the geographic location of the subsidiary making the sale, for the years ended August 31, 2020, 2019 and 2018: 2020 2019 2018 (Dollars in thousands) North America (a) $ 25,360,077 $ 27,896,269 $ 29,475,724 South America 1,559,380 2,027,020 1,569,330 Europe, Middle East and Africa (EMEA) 774,068 895,472 536,501 Asia Pacific (APAC) 712,840 1,081,692 1,101,792 Total $ 28,406,365 $ 31,900,453 $ 32,683,347 (a) Revenues in North America are substantially all attributed to revenues from the United States. Long-lived assets include our property, plant and equipment, finance lease assets and capitalized major maintenance costs. The following table presents long-lived assets by geographical region based on physical location: 2020 2019 (Dollars in thousands) United States $ 5,121,315 $ 5,295,752 International 65,134 79,846 Total $ 5,186,449 $ 5,375,598 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | The following tables present the gross fair values of derivative assets, derivative liabilities and margin deposits (cash collateral) recorded on our Consolidated Balance Sheets, along with related amounts permitted to be offset in accordance with U.S. GAAP. Although we have certain netting arrangements for our exchange-traded futures and options contracts and certain over-the-counter ("OTC") contracts, we have elected to report our derivative instruments on a gross basis on our Consolidated Balance Sheets under ASC Topic 210-20, Balance Sheet - Offsetting . August 31, 2020 Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting Gross Amounts Recognized Cash Collateral Derivative Instruments Net Amounts (Dollars in thousands) Derivative Assets Commodity derivatives $ 327,493 $ — $ 2,980 $ 324,513 Foreign exchange derivatives 11,809 — 9,385 2,424 Embedded derivative asset 18,998 — — 18,998 Total $ 358,300 $ — $ 12,365 $ 345,935 Derivative Liabilities Commodity derivatives $ 343,343 $ 956 $ 5,578 $ 336,809 Foreign exchange derivatives 69,466 — 9,385 60,081 Total $ 412,809 $ 956 $ 14,963 $ 396,890 August 31, 2019 Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting Gross Amounts Recognized Cash Collateral Derivative Instruments Net Amounts (Dollars in thousands) Derivative Assets Commodity derivatives $ 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 less than 12 months are recorded in other current assets and other current liabilities, respectively, on the Consolidated Balance Sheets. Derivative assets and liabilities with maturities greater than 12 months are recorded in other assets and other liabilities, respectively, on the Consolidated Balance Sheets. The amount of long-term derivative assets, excluding derivatives accounted for as fair value hedges, recorded on the Consolidated Balance Sheet at August 31, 2020 and 2019, was $21.2 million and $26.6 million, respectively. The amount of long-term derivative liabilities, excluding derivatives accounted for as fair value hedges, recorded on the Consolidated Balance Sheet at August 31, 2020 and 2019, was $5.4 million and $7.4 million, respectively. Derivatives Not Designated as Hedging Instruments The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the years ended August 31, 2020, 2019 and 2018. Derivative Type Location of 2020 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 89,248 $ 125,323 $ 162,321 Foreign exchange derivatives Cost of goods sold (184,692) 4,228 (26,010) Foreign exchange derivatives Marketing, general and administrative expenses (2,986) (1,229) 596 Interest rate derivatives Interest expense (1,226) — (1) Embedded derivative Other income 2,634 2,769 3,061 Total $ (97,022) $ 131,091 $ 139,967 Commodity Contracts When we enter a commodity purchase or sales commitment, we are exposed to risks related to price changes and performance, including delivery, quality, quantity and shipment period. If market prices decrease, we are exposed to risk of loss in the market value of inventory and purchase contracts with a fixed or partially fixed price. Conversely, we are exposed to risk of loss on our fixed or partially fixed price sales contracts if market prices increase. Our use of hedging reduces exposure to price volatility by protecting against adverse short-term price movements, but also limits the benefits of favorable short-term price movements. To reduce price risk associated with fixed price commitments, we generally enter into commodity derivative contracts, to the extent practical, to achieve a net commodity position within the formal position limits we have established and deemed prudent for each commodity. These contracts are primarily transacted on regulated commodity futures exchanges, but may also include over-the-counter derivative instruments when deemed appropriate. For commodities where there is no liquid derivative contract, risk is managed using forward sales contracts, other pricing arrangements and, to some extent, futures contracts in highly correlated commodities. These contracts are economic hedges of price risk, but are not designated as hedging instruments for accounting purposes. The contracts are recorded on our Consolidated Balance Sheets at fair values based on quotes listed on regulated commodity exchanges or the market prices of the underlying products listed on the exchanges, except that fertilizer and certain propane contracts are accounted for as normal purchase and normal sales transactions. Unrealized gains and losses on these contracts are recognized in cost of goods sold in our Consolidated Statements of Operations. When a futures position is established, initial margin must be deposited with the applicable exchange or broker. The amount of margin required varies by commodity and is set by the applicable exchange at its sole discretion. If the market price relative to a short futures position increases, an additional margin deposit would be required. Similarly, a margin deposit would be required if the market price relative to a long futures position decreases. Conversely, if the market price increases relative to a long futures position or decreases relative to a short futures position, margin deposits may be returned by the applicable exchange or broker. Our policy is to manage our commodity price risk exposure according to internal policies and in alignment with our tolerance for risk. Our profitability from operations is primarily derived from margins on products sold and grain merchandised, not from hedging transactions. At any one time, inventory and purchase contracts for delivery to us may be substantial. We have risk management policies that include established net position limits. These limits are defined for each commodity and business unit and may include both trader and management limits as appropriate. The limits policy is managed within each individual business unit to ensure any limits overage is explained and exposures reduced, or a temporary limit increase is established if needed. The position limits are reviewed at least annually with our senior leadership and Board of Directors. We monitor current market conditions and may expand or reduce our net position limits in response to changes in those conditions. In addition, all purchase and sales contracts are subject to credit approvals and appropriate terms and conditions. The use of hedging instruments does not protect against nonperformance by counterparties to cash contracts. We evaluate counterparty exposure by reviewing contracts and adjusting the values to reflect potential nonperformance. Risk of nonperformance by counterparties includes inability to perform because of a counterparty's financial condition and the risk that the counterparty will refuse to perform on a contract during periods of price fluctuations where contract prices are significantly different than the current market prices. We manage these risks by entering into fixed price purchase and sales contracts with preapproved producers and by establishing appropriate limits for individual suppliers. Fixed price contracts are entered into with customers of acceptable creditworthiness, as internally evaluated. Regarding our use of derivatives, we primarily transact in exchange traded instruments or enter into over-the-counter derivatives that clear through a designated clearing organization, which limits our counterparty exposure relative to hedging activities. Historically, we have not experienced significant events of nonperformance on open contracts. Accordingly, we only adjust the estimated fair values of specifically identified contracts for nonperformance. Although we have established policies and procedures, we make no assurances that historical nonperformance experience will carry forward to future periods. As of August 31, 2020 and 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. 2020 2019 Derivative Type Long Short Long Short (Units in thousands) Grain and oilseed (bushels) 664,673 892,303 547,096 717,522 Energy products (barrels) 10,028 6,570 13,895 4,663 Processed grain and oilseed (tons) 657 3,304 597 2,454 Crop nutrients (tons) 74 127 76 23 Ocean freight (metric tons) 1,140 95 295 85 Natural gas (MMBtu) — — 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 CHS has 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 $1.2 billion and $894.7 million as of August 31, 2020 and 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 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 $2.6 million, $2.8 million and $3.1 million were recognized in other income in our Consolidated Statements of Operations during fiscal 2020, fiscal 2019 and fiscal 2018, respectively. The fair value of the embedded derivative asset recorded on our Consolidated Balance Sheet as of August 31, 2020, was equal to $19.0 million. The current and long-term portions of the embedded derivative asset are included in other current assets and other assets on our Consolidated Balance Sheet, respectively. See Note 16, Fair Value Measurements , for additional information regarding the valuation of the embedded derivative asset. Derivatives Designated as Cash Flow or Fair Value Hedging Strategies Fair Value Hedges During the year ended August 31, 2020, we exited all our interest rate swaps resulting in a $16.4 million gain, which is being amortized over the life of the fixed-rate debt for which the swaps had previously been designated as fair value hedges, through fiscal 2025. As of 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. Our objective in entering into these transactions was to offset changes in the fair value of the debt associated with the risk of variability in the three-month U.S. dollar LIBOR interest rate, in essence converting the fixed-rate debt to variable-rate debt. Under these interest rate swaps, we received fixed-rate interest payments and made interest payments based on the three-month LIBOR. Offsetting changes in the fair values of both the swap instruments and the hedged debt were recorded contemporaneously each period and only created an impact to earnings to the extent the hedge was ineffective. The following table presents the fair value of our derivative interest rate swap instruments designated as fair value hedges and the line items on our Consolidated Balance Sheets in which they are recorded as of August 31, 2020 and 2019. 2020 2019 Balance Sheet Location Derivative Assets (Dollars in thousands) Other assets $ — $ 9,841 The following table sets forth the pretax gains (losses) on derivatives accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the years ended August 31, 2020, 2019 and 2018. Gain (Loss) on Fair Value Hedging Relationships Location of 2020 2019 2018 (Dollars in thousands) Interest rate swaps Interest expense $ (1,897) $ 21,158 $ 18,723 Hedged item Interest expense 1,897 (21,158) (18,723) Total $ — $ — $ — The following table provides the location and carrying amount of hedged liabilities in our Consolidated Balance Sheets as of August 31, 2020 and 2019. August 31, 2020 August 31, 2019 Balance Sheet Location Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities (Dollars in thousands) Long-term debt $ — $ — $ 334,389 $ 30,611 Cash Flow Hedges In fiscal 2018, our Energy segment began designating certain of its pay-fixed, receive-variable, cash-settled swaps as cash flow hedges of future crude oil purchases. We also began designating certain pay-variable, receive-fixed, cash-settled swaps as cash flow hedges of future refined product sales. These hedging instruments and the related hedged items are exposed to significant market price risk and potential volatility. As part of our risk management strategy, we look to hedge a portion of our expected future crude oil needs and the resulting refined product output based on prevailing futures prices, management's expectations about future commodity price changes and our risk appetite. As of August 31, 2020 and 2019, the aggregate notional amount of cash flow hedges was 9.7 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 Consolidated Balance Sheets in which they are recorded as of August 31, 2020 and 2019. Derivative Assets Derivative Liabilities Balance Sheet Location 2020 2019 Balance Sheet Location 2020 2019 (Dollars in thousands) (Dollars in thousands) Other current assets $ 34,052 $ 33,179 Other current liabilities $ 8,821 $ 5,351 The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the years ended August 31, 2020, 2019 and 2018: 2020 2019 2018 (Dollars in thousands) Commodity derivatives $ (2,596) $ 27,650 $ 178 The following table presents the pretax gains (losses) relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Consolidated Statements of Operations for the years ended August 31, 2020, 2019 and 2018: Location of 2020 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 23,807 $ 11,497 $ — |
Derivatives and Fair Value | Note 15 Derivative Financial Instruments and Hedging Activities We enter into various derivative instruments to manage our exposure to movements primarily associated with agricultural and energy commodity prices and, to a lesser degree, foreign currency exchange rates and interest rates. Except for certain interest rate swaps and certain pay-fixed, receive-variable, cash-settled swaps related to future crude oil purchases, which are accounted for as fair value hedges and cash flow hedges, respectively, our derivative instruments represent economic hedges of price risk for which hedge accounting under ASC Topic 815 is not applied. Rather, the derivative instruments are recorded on our Consolidated Balance Sheets at fair value with changes in fair value being recorded directly to earnings, primarily within cost of goods sold in our Consolidated Statements of Operations. See Note 16, Fair Value Measurements, for additional information. The majority of our exchange traded agricultural commodity futures are settled daily through CHS Hedging, our wholly-owned futures commission merchant. The following tables present the gross fair values of derivative assets, derivative liabilities and margin deposits (cash collateral) recorded on our Consolidated Balance Sheets, along with related amounts permitted to be offset in accordance with U.S. GAAP. Although we have certain netting arrangements for our exchange-traded futures and options contracts and certain over-the-counter ("OTC") contracts, we have elected to report our derivative instruments on a gross basis on our Consolidated Balance Sheets under ASC Topic 210-20, Balance Sheet - Offsetting . August 31, 2020 Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting Gross Amounts Recognized Cash Collateral Derivative Instruments Net Amounts (Dollars in thousands) Derivative Assets Commodity derivatives $ 327,493 $ — $ 2,980 $ 324,513 Foreign exchange derivatives 11,809 — 9,385 2,424 Embedded derivative asset 18,998 — — 18,998 Total $ 358,300 $ — $ 12,365 $ 345,935 Derivative Liabilities Commodity derivatives $ 343,343 $ 956 $ 5,578 $ 336,809 Foreign exchange derivatives 69,466 — 9,385 60,081 Total $ 412,809 $ 956 $ 14,963 $ 396,890 August 31, 2019 Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting Gross Amounts Recognized Cash Collateral Derivative Instruments Net Amounts (Dollars in thousands) Derivative Assets Commodity derivatives $ 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 less than 12 months are recorded in other current assets and other current liabilities, respectively, on the Consolidated Balance Sheets. Derivative assets and liabilities with maturities greater than 12 months are recorded in other assets and other liabilities, respectively, on the Consolidated Balance Sheets. The amount of long-term derivative assets, excluding derivatives accounted for as fair value hedges, recorded on the Consolidated Balance Sheet at August 31, 2020 and 2019, was $21.2 million and $26.6 million, respectively. The amount of long-term derivative liabilities, excluding derivatives accounted for as fair value hedges, recorded on the Consolidated Balance Sheet at August 31, 2020 and 2019, was $5.4 million and $7.4 million, respectively. Derivatives Not Designated as Hedging Instruments The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the years ended August 31, 2020, 2019 and 2018. Derivative Type Location of 2020 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 89,248 $ 125,323 $ 162,321 Foreign exchange derivatives Cost of goods sold (184,692) 4,228 (26,010) Foreign exchange derivatives Marketing, general and administrative expenses (2,986) (1,229) 596 Interest rate derivatives Interest expense (1,226) — (1) Embedded derivative Other income 2,634 2,769 3,061 Total $ (97,022) $ 131,091 $ 139,967 Commodity Contracts When we enter a commodity purchase or sales commitment, we are exposed to risks related to price changes and performance, including delivery, quality, quantity and shipment period. If market prices decrease, we are exposed to risk of loss in the market value of inventory and purchase contracts with a fixed or partially fixed price. Conversely, we are exposed to risk of loss on our fixed or partially fixed price sales contracts if market prices increase. Our use of hedging reduces exposure to price volatility by protecting against adverse short-term price movements, but also limits the benefits of favorable short-term price movements. To reduce price risk associated with fixed price commitments, we generally enter into commodity derivative contracts, to the extent practical, to achieve a net commodity position within the formal position limits we have established and deemed prudent for each commodity. These contracts are primarily transacted on regulated commodity futures exchanges, but may also include over-the-counter derivative instruments when deemed appropriate. For commodities where there is no liquid derivative contract, risk is managed using forward sales contracts, other pricing arrangements and, to some extent, futures contracts in highly correlated commodities. These contracts are economic hedges of price risk, but are not designated as hedging instruments for accounting purposes. The contracts are recorded on our Consolidated Balance Sheets at fair values based on quotes listed on regulated commodity exchanges or the market prices of the underlying products listed on the exchanges, except that fertilizer and certain propane contracts are accounted for as normal purchase and normal sales transactions. Unrealized gains and losses on these contracts are recognized in cost of goods sold in our Consolidated Statements of Operations. When a futures position is established, initial margin must be deposited with the applicable exchange or broker. The amount of margin required varies by commodity and is set by the applicable exchange at its sole discretion. If the market price relative to a short futures position increases, an additional margin deposit would be required. Similarly, a margin deposit would be required if the market price relative to a long futures position decreases. Conversely, if the market price increases relative to a long futures position or decreases relative to a short futures position, margin deposits may be returned by the applicable exchange or broker. Our policy is to manage our commodity price risk exposure according to internal policies and in alignment with our tolerance for risk. Our profitability from operations is primarily derived from margins on products sold and grain merchandised, not from hedging transactions. At any one time, inventory and purchase contracts for delivery to us may be substantial. We have risk management policies that include established net position limits. These limits are defined for each commodity and business unit and may include both trader and management limits as appropriate. The limits policy is managed within each individual business unit to ensure any limits overage is explained and exposures reduced, or a temporary limit increase is established if needed. The position limits are reviewed at least annually with our senior leadership and Board of Directors. We monitor current market conditions and may expand or reduce our net position limits in response to changes in those conditions. In addition, all purchase and sales contracts are subject to credit approvals and appropriate terms and conditions. The use of hedging instruments does not protect against nonperformance by counterparties to cash contracts. We evaluate counterparty exposure by reviewing contracts and adjusting the values to reflect potential nonperformance. Risk of nonperformance by counterparties includes inability to perform because of a counterparty's financial condition and the risk that the counterparty will refuse to perform on a contract during periods of price fluctuations where contract prices are significantly different than the current market prices. We manage these risks by entering into fixed price purchase and sales contracts with preapproved producers and by establishing appropriate limits for individual suppliers. Fixed price contracts are entered into with customers of acceptable creditworthiness, as internally evaluated. Regarding our use of derivatives, we primarily transact in exchange traded instruments or enter into over-the-counter derivatives that clear through a designated clearing organization, which limits our counterparty exposure relative to hedging activities. Historically, we have not experienced significant events of nonperformance on open contracts. Accordingly, we only adjust the estimated fair values of specifically identified contracts for nonperformance. Although we have established policies and procedures, we make no assurances that historical nonperformance experience will carry forward to future periods. As of August 31, 2020 and 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. 2020 2019 Derivative Type Long Short Long Short (Units in thousands) Grain and oilseed (bushels) 664,673 892,303 547,096 717,522 Energy products (barrels) 10,028 6,570 13,895 4,663 Processed grain and oilseed (tons) 657 3,304 597 2,454 Crop nutrients (tons) 74 127 76 23 Ocean freight (metric tons) 1,140 95 295 85 Natural gas (MMBtu) — — 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 CHS has 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 $1.2 billion and $894.7 million as of August 31, 2020 and 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 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 $2.6 million, $2.8 million and $3.1 million were recognized in other income in our Consolidated Statements of Operations during fiscal 2020, fiscal 2019 and fiscal 2018, respectively. The fair value of the embedded derivative asset recorded on our Consolidated Balance Sheet as of August 31, 2020, was equal to $19.0 million. The current and long-term portions of the embedded derivative asset are included in other current assets and other assets on our Consolidated Balance Sheet, respectively. See Note 16, Fair Value Measurements , for additional information regarding the valuation of the embedded derivative asset. Derivatives Designated as Cash Flow or Fair Value Hedging Strategies Fair Value Hedges During the year ended August 31, 2020, we exited all our interest rate swaps resulting in a $16.4 million gain, which is being amortized over the life of the fixed-rate debt for which the swaps had previously been designated as fair value hedges, through fiscal 2025. As of 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. Our objective in entering into these transactions was to offset changes in the fair value of the debt associated with the risk of variability in the three-month U.S. dollar LIBOR interest rate, in essence converting the fixed-rate debt to variable-rate debt. Under these interest rate swaps, we received fixed-rate interest payments and made interest payments based on the three-month LIBOR. Offsetting changes in the fair values of both the swap instruments and the hedged debt were recorded contemporaneously each period and only created an impact to earnings to the extent the hedge was ineffective. The following table presents the fair value of our derivative interest rate swap instruments designated as fair value hedges and the line items on our Consolidated Balance Sheets in which they are recorded as of August 31, 2020 and 2019. 2020 2019 Balance Sheet Location Derivative Assets (Dollars in thousands) Other assets $ — $ 9,841 The following table sets forth the pretax gains (losses) on derivatives accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the years ended August 31, 2020, 2019 and 2018. Gain (Loss) on Fair Value Hedging Relationships Location of 2020 2019 2018 (Dollars in thousands) Interest rate swaps Interest expense $ (1,897) $ 21,158 $ 18,723 Hedged item Interest expense 1,897 (21,158) (18,723) Total $ — $ — $ — The following table provides the location and carrying amount of hedged liabilities in our Consolidated Balance Sheets as of August 31, 2020 and 2019. August 31, 2020 August 31, 2019 Balance Sheet Location Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities (Dollars in thousands) Long-term debt $ — $ — $ 334,389 $ 30,611 Cash Flow Hedges In fiscal 2018, our Energy segment began designating certain of its pay-fixed, receive-variable, cash-settled swaps as cash flow hedges of future crude oil purchases. We also began designating certain pay-variable, receive-fixed, cash-settled swaps as cash flow hedges of future refined product sales. These hedging instruments and the related hedged items are exposed to significant market price risk and potential volatility. As part of our risk management strategy, we look to hedge a portion of our expected future crude oil needs and the resulting refined product output based on prevailing futures prices, management's expectations about future commodity price changes and our risk appetite. As of August 31, 2020 and 2019, the aggregate notional amount of cash flow hedges was 9.7 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 Consolidated Balance Sheets in which they are recorded as of August 31, 2020 and 2019. Derivative Assets Derivative Liabilities Balance Sheet Location 2020 2019 Balance Sheet Location 2020 2019 (Dollars in thousands) (Dollars in thousands) Other current assets $ 34,052 $ 33,179 Other current liabilities $ 8,821 $ 5,351 The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the years ended August 31, 2020, 2019 and 2018: 2020 2019 2018 (Dollars in thousands) Commodity derivatives $ (2,596) $ 27,650 $ 178 The following table presents the pretax gains (losses) relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Consolidated Statements of Operations for the years ended August 31, 2020, 2019 and 2018: Location of 2020 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 23,807 $ 11,497 $ — |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurement, 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. We determine fair values of derivative instruments and certain other assets, based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. ASC Topic 820 describes three levels within its hierarchy that may be used to measure fair value, and our assessment of relevant instruments within those levels is as follows: Level 1. Values are based on unadjusted quoted prices in active markets for identical assets or liabilities. These assets and liabilities may include exchange-traded derivative instruments, rabbi trust investments, deferred compensation investments and available-for-sale investments. Level 2. Values are based on 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, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. These assets and liabilities include interest rate, foreign exchange and commodity swaps; forward commodity contracts with a fixed price component; and other OTC derivatives whose value is determined with inputs that are based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from, or corroborated by, observable market data. Level 3. Values are generated from unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. These unobservable inputs would reflect our own estimates of assumptions that market participants would use in pricing related assets or liabilities. Valuation techniques might include the use of pricing models, discounted cash flow models or similar techniques. The following tables present assets and liabilities, included on our Consolidated Balance Sheets, that are recognized at fair value on a recurring basis and indicate the fair value hierarchy utilized to determine these fair values. Assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. The lowest level of input is considered Level 3. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. Recurring fair value measurements at August 31, 2020 and 2019, are as follows: 2020 Quoted Prices in Active Markets Significant Other Observable Significant Total (Dollars in thousands) Assets Commodity derivatives $ 5,762 $ 355,783 $ — $ 361,545 Foreign currency derivatives — 11,523 — 11,523 Deferred compensation assets 47,669 — — 47,669 Embedded derivative asset — 18,998 — 18,998 Segregated investments 85,950 — — 85,950 Other assets 5,276 — — 5,276 Total $ 144,657 $ 386,304 $ — $ 530,961 Liabilities Commodity derivatives $ 6,037 $ 346,126 $ — $ 352,163 Foreign currency derivatives — 69,467 — 69,467 Total $ 6,037 $ 415,593 $ — $ 421,630 2019 Quoted Prices in Active Markets Significant Other Observable Significant Total (Dollars in thousands) Assets Commodity derivatives $ 67,817 $ 180,392 $ — $ 248,209 Foreign currency 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 currency derivatives — 20,701 — 20,701 Total $ 40,305 $ 209,156 $ — $ 249,461 Commodity and foreign currency derivatives. Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. Our forward commodity purchase and sales contracts with fixed-price components, select ocean freight contracts and other 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 listed or OTC markets. Changes in the fair values of these contracts are recognized in our Consolidated Statements of Operations as a component of cost of goods sold. Interest rate swap derivatives. Fair values of our interest rate swap derivatives are determined utilizing valuation models that are widely accepted in the market to value these OTC derivative contracts. The specific terms of the contracts, as well as market observable inputs, such as interest rates and credit risk assumptions, are factored into the models. As all significant inputs are market observable, all interest rate swaps are classified within Level 2. Changes in the fair values of contracts not designated as hedging instruments for accounting purposes are recognized in our Consolidated Statements of Operations as a component of interest expense. As of August 31, 2020, all interest rate swaps were unwound. See Note 15, Derivative Financial Instruments and Hedging Activities , for additional information about interest rates swaps designated as fair value and cash flow hedges. Deferred compensation and other assets. Our deferred compensation investments consist primarily of rabbi trust assets that are valued based on unadjusted quoted prices on active exchanges and classified within Level 1. Changes in the fair values of these other assets are primarily recognized in our Consolidated Statements of Operations as a component of marketing, general and administrative expenses. Embedded derivative asset. The embedded derivative asset relates to contingent payments inherent 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 15, 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental We are required to comply with various environmental laws and regulations incidental to our normal business operations. To meet our compliance requirements, we establish reserves for future costs of remediation associated with identified issues that are both probable and can be reasonably estimated. Estimates of environmental costs are based on current available facts, existing technology, undiscounted site-specific costs and currently enacted laws and regulations and are included in cost of goods sold and marketing, general and administrative expenses in our Consolidated Statements of Operations. Recoveries, if any, are recorded in the period in which recovery is received. Liabilities are monitored and adjusted as new facts or changes in law or technology occur. The resolution of any such matters may affect consolidated net income for any fiscal period; however, we believe any resulting liabilities, individually or in the aggregate, will not have a material effect on our consolidated financial position, results of operations or cash flows during any fiscal year. Other Litigation and Claims We are involved as a defendant in various lawsuits, claims and disputes, which are in the normal course of our business. The resolution of any such matters may affect consolidated net income for any fiscal period; however, we believe any resulting liabilities, individually or in the aggregate, will not have a material effect on our consolidated financial position, results of operations or cash flows during any fiscal year. Guarantees We are a guarantor for lines of credit and performance obligations of related, nonconsolidated companies. Our bank covenants allow maximum guarantees of $1.0 billion, of which $127.9 million were outstanding on August 31, 2020. 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 are current as of August 31, 2020. Credit Commitments CHS Capital has commitments to extend credit to customers if there is no violation of any condition established in the contracts. As of August 31, 2020, CHS Capital customers have additional available credit of $714.5 million. Unconditional Purchase Obligations Unconditional purchase obligations are commitments to transfer funds in the future for fixed or minimum amounts or quantities of goods or services at fixed or minimum prices. Our long-term unconditional purchase obligations primarily relate to pipeline and grain handling take-or-pay and throughput agreements and are not recorded on our Consolidated Balance Sheets. As of August 31, 2020, minimum future payments required under long-term commitments that are noncancelable, and that third parties have used to secure financing for facilities that will provide contracted goods, are as follows: Payments Due by Period Total 2021 2022 2023 2024 2025 Thereafter (Dollars in thousands) Long-term unconditional purchase obligations $ 544,203 $ 78,939 $ 58,214 $ 58,592 $ 58,262 $ 52,702 $ 237,494 Total payments under these arrangements were $77.6 million, $70.8 million and $61.4 million for the years ended August 31, 2020, 2019 and 2018, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We purchase and sell grain and other agricultural commodity products from certain equity investees, primarily CF Nitrogen, Ventura Foods, Ardent Mills and TEMCO, LLC. Sales to and purchases from related parties for the years ended August 31, 2020, 2019 and 2018, respectively, are as follows: 2020 2019 2018 (Dollars in thousands) Sales $ 2,528,921 $ 2,628,670 $ 2,928,984 Purchases 872,819 901,812 2,505,185 Receivables due from and payables due to related parties as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Due from related parties $ 129,397 $ 26,785 Due to related parties 53,602 60,156 As a cooperative, we are owned by farmers and ranchers and their member cooperatives, which are referred to as members. We buy commodities from and provide products and services to our members. Individually, our members do not have a significant ownership in CHS. |
Leases, Codification Topic 842
Leases, Codification Topic 842 | 12 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessor Disclosure | Note 19 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 $25.3 million cumulative-effect adjustment, including the deferred income tax impact, 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 Consolidated Statements of Operations or 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 nonlease 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 nonlease components such as maintenance costs, payments for leased assets beyond their noncancelable lease term and payments for other nonlease 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: Year Ended (Dollars in thousands) Operating lease expense $ 71,541 Finance lease expense: Amortization of assets 8,205 Interest on lease liabilities 1,060 Short-term lease expense 15,991 Variable lease expense 3,674 Total net lease expense* $ 100,471 *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 August 31, 2020 (Dollars in thousands) Operating leases Assets Operating lease right of use assets Other assets $ 257,834 Liabilities Current operating lease liabilities Accrued expenses 57,200 Long-term operating lease liabilities Other liabilities 203,691 Total operating lease liabilities $ 260,891 Finance leases Assets Finance lease assets Property, plant and equipment $ 44,860 Liabilities Current finance lease liabilities Current portion of long-term debt 7,993 Long-term finance lease liabilities Long-term debt 23,467 Total finance lease liabilities $ 31,460 Weighted average remaining lease term (in years) Operating leases 8.3 Finance leases 6.0 Weighted average discount rate Operating leases 3.11 % Finance leases 3.33 % Supplemental cash flow and other information related to operating and finance leases is as follows: Year Ended (Dollars in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 71,003 Operating cash flows from finance leases 1,060 Financing cash flows from finance leases 7,949 Supplemental noncash information: Right of use assets obtained in exchange for lease liabilities 56,461 Right of use asset modifications 7,333 Maturities of lease liabilities as of August 31, 2020, were as follows: August 31, 2020 Finance Leases Operating Leases (Dollars in thousands) Fiscal 2021 $ 8,845 $ 64,379 Fiscal 2022 7,017 50,398 Fiscal 2023 6,053 40,269 Fiscal 2024 3,443 32,195 Fiscal 2025 2,046 23,034 Thereafter 7,933 95,553 Total maturities of lease liabilities 35,337 305,828 Less amounts representing interest 3,877 44,937 Present value of future minimum lease payments 31,460 260,891 Less current obligations 7,993 57,200 Long-term obligations $ 23,467 $ 203,691 Disclosures Related to Periods Prior to Adoption of New Lease Standard The following pertains to previously disclosed information 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. 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 Finance 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) | 12 Months Ended |
Aug. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 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. Related party transactions through the date of the acquisition have been included within Note 18, Related Party Transactions . 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 purchase 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 the 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 the acquisition of the remaining 75% interest. The gain is included in other (income) loss in our Consolidated Statements of Operations. 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 consolidated results of operations. Purchase accounting has been finalized and fair values assigned to the net assets acquired are as follows: (Dollars in thousands) Cash $ 8,033 Other current assets 708,764 Property, plant and equipment 44,064 Goodwill 61,358 Other intangible assets 47,200 Other non-current assets 55 Liabilities (718,262) Total net assets acquired $ 151,212 Operating results for WCD are included in our Consolidated Statements of Operations from the day of the acquisition on March 1, 2019, through August 31, 2020. WCD revenues and income before income taxes were $569.2 million and $19.0 million, respectively, for the year ended August 31, 2020, and $456.2 million and $12.9 million, respectively, for the year ended August 31, 2019. Due to the timing of the acquisition during the third quarter of fiscal 2019, WCD's results prior to acquisition were not included in the fiscal 2019 or fiscal 2018 results. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Aug. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Balance at Additions: Deductions: Balance at (Dollars in thousands) Allowances for doubtful accounts 2020 $ 176,805 $ 3,089 $ (14,354) $ 165,540 2019 221,813 57,380 (102,388) 176,805 2018 225,726 2,748 (6,661) 221,813 Valuation allowance for deferred tax assets 2020 $ 246,344 $ 5,206 $ (31,659) $ 219,891 2019 230,374 41,260 (25,290) 246,344 2018 289,083 61,854 (120,563) 230,374 Reserve for supplier advance payments 2020 $ 65,885 $ — $ — $ 65,885 2019 110,613 — (44,728) 65,885 2018 130,705 — (20,092) 110,613 *Net of reserve adjustments |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of CHS and all our subsidiaries and limited liability companies in which we have a controlling interest. The effects of all significant intercompany transactions have been eliminated. The notes to our consolidated financial statements refer to our Energy, Ag and Nitrogen Production reportable segments, as well as our Corporate and Other category, which represents an aggregation of individually immaterial operating segments. The Nitrogen Production reportable segment results from our investment in CF Industries Nitrogen, LLC ("CF Nitrogen"). See Note 14, Segment Reporting , for more information. |
Use of Estimates | Use of Estimates    The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Due to the inherent uncertainty involved in making estimates, actual results could differ from those estimates. We evaluate our estimates and assumptions on an ongoing basis. |
Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash Cash equivalents include short-term, highly liquid investments with original maturities of three months or less at the date of acquisition. The fair value of cash and cash equivalents approximates the carrying value due to the short-term nature of the instruments. Restricted cash is included in our Consolidated Balance Sheets within other current assets (current portion) and other assets (noncurrent portion), as appropriate, and primarily relates to customer deposits for futures and option contracts associated with regulated commodities held in separate accounts as required under federal and other regulations. Pursuant to the requirements of the Commodity Exchange Act, such funds must be carried in separate accounts that are designated as segregated customer accounts, as applicable. Restricted cash also includes funds held in escrow pursuant to applicable regulations limiting their usage. The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported within our Consolidated Balance Sheets that aggregates to the amount presented in our Consolidated Statements of Cash Flows. August 31, 2020 2019 2018 (Dollars in thousands) Cash and cash equivalents $ 140,874 $ 211,179 $ 450,617 Restricted cash included in other current assets 76,119 88,496 90,193 Restricted cash included in other assets — — 3,130 Total cash and cash equivalents and restricted cash $ 216,993 $ 299,675 $ 543,940 |
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 Accounting Standards Codification ("ASC") Topic 842, Leases ("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 $25.3 million cumulative-effect adjustment, including the deferred income tax impact, 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 Consolidated Statements of Operations or Consolidated Statements of Cash Flows. Additional information and further disclosures related to our leases and lease-related financial statement amounts are included within Note 19, Leases . |
Fair Value Measurements | ASC Topic 820, Fair Value Measurement, 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. We determine fair values of derivative instruments and certain other assets, based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. ASC Topic 820 describes three levels within its hierarchy that may be used to measure fair value, and our assessment of relevant instruments within those levels is as follows: Level 1. Values are based on unadjusted quoted prices in active markets for identical assets or liabilities. These assets and liabilities may include exchange-traded derivative instruments, rabbi trust investments, deferred compensation investments and available-for-sale investments. Level 2. Values are based on 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, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. These assets and liabilities include interest rate, foreign exchange and commodity swaps; forward commodity contracts with a fixed price component; and other OTC derivatives whose value is determined with inputs that are based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from, or corroborated by, observable market data. Level 3. Values are generated from unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. These unobservable inputs would reflect our own estimates of assumptions that market participants would use in pricing related assets or liabilities. Valuation techniques might include the use of pricing models, discounted cash flow models or similar techniques. |
Fair Value of Financial Instruments | Commodity and foreign currency derivatives. Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. Our forward commodity purchase and sales contracts with fixed-price components, select ocean freight contracts and other 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 listed or OTC markets. Changes in the fair values of these contracts are recognized in our Consolidated Statements of Operations as a component of cost of goods sold. Interest rate swap derivatives. Fair values of our interest rate swap derivatives are determined utilizing valuation models that are widely accepted in the market to value these OTC derivative contracts. The specific terms of the contracts, as well as market observable inputs, such as interest rates and credit risk assumptions, are factored into the models. As all significant inputs are market observable, all interest rate swaps are classified within Level 2. Changes in the fair values of contracts not designated as hedging instruments for accounting purposes are recognized in our Consolidated Statements of Operations as a component of interest expense. As of August 31, 2020, all interest rate swaps were unwound. See Note 15, Derivative Financial Instruments and Hedging Activities , for additional information about interest rates swaps designated as fair value and cash flow hedges. Deferred compensation and other assets. Our deferred compensation investments consist primarily of rabbi trust assets that are valued based on unadjusted quoted prices on active exchanges and classified within Level 1. Changes in the fair values of these other assets are primarily recognized in our Consolidated Statements of Operations as a component of marketing, general and administrative expenses. Embedded derivative asset. The embedded derivative asset relates to contingent payments inherent 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 15, 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. |
Equity Method Investments | Joint ventures and other investments in which we have significant ownership and influence but not control, are accounted for in our consolidated financial statements using the equity method of accounting. Our significant equity method investments consist of CF Nitrogen, Ventura Foods, LLC ("Ventura Foods"), and Ardent Mills, LLC ("Ardent Mills"), which are summarized below. |
Revenue Recognition and Deferre
Revenue Recognition and Deferred Revenue (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue | We provide a wide variety of products and services, from agricultural inputs such as fuels, farm supplies and agronomy products, to agricultural outputs that include grain and oilseed, processed grains and oilseeds and food products, and renewable fuels production and marketing. We primarily conduct our operations and derive revenues within our Energy and Ag segments. Our Energy segment derives its revenues through refining, wholesaling and retailing of petroleum products. Our Ag segment derives its revenues through origination and marketing of grain, including service activities conducted at export terminals; through wholesale sales of agronomy products and processed sunflowers; from sales of soybean meal, soybean refined oil and soyflour products; through production and marketing of renewable fuels; and through retail sales of petroleum and agronomy products, and feed and farm supplies. Corporate and Other primarily consists of our financing and hedging businesses. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which generally occurs when control of the goods has transferred to customers in accordance with the underlying contract. For the majority of our contracts with customers, control transfers to customers at a point in time when goods/services have been delivered, as that is generally when legal title, physical possession and risks and rewards of ownership of the goods/services transfer to the customer. In limited arrangements, control transfers over time as the customer simultaneously receives and consumes the benefits of the service as we complete our performance obligation(s). Revenue is recognized as the transaction price we expect to be entitled to in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties. For physically settled derivative sales contracts that are outside the scope of the revenue guidance, we recognize revenue when control of the inventory is transferred within the meaning of ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). Revenues arising from our financing business are recognized in accordance with ASC Topic 470, Debt ("ASC Topic 470") , and fall outside the scope of ASC Topic 606. Shipping and Handling Costs Shipping and handling amounts billed to a customer as part of a sales transaction are included in revenues, and the related costs are included in cost of goods sold. Shipping and handling is treated as a fulfillment activity rather than a promised service, and therefore is not considered a separate performance obligation. Taxes Collected from Customers and Remitted to Governmental Authorities Revenues are recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Contract Costs Commissions related to contracts with a duration of less than one year are expensed as incurred. We recognize incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets we otherwise would have recognized is one year or less. Disaggregation of Revenues The following table presents revenues recognized under ASC Topic 606 disaggregated by reportable segment, as well as the amount of revenues recognized under ASC Topic 815, Derivatives and Hedging ("ASC Topic 815"), and other applicable accounting guidance for the year ended August 31, 2020 and 2019. Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 842 and ASC Topic 470 that fall outside the scope of ASC Topic 606. Year Ended August 31, 2020 Reportable Segment* ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues (Dollars in thousands) Energy $ 4,833,003 $ 598,131 $ — $ 5,431,134 Ag 5,963,198 16,901,258 61,643 22,926,099 Corporate and Other 22,903 — 26,229 49,132 Total revenues $ 10,819,104 $ 17,499,389 $ 87,872 $ 28,406,365 Year Ended August 31, 2019 Reportable Segment* ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues (Dollars in thousands) Energy $ 6,393,075 $ 726,001 $ — $ 7,119,076 Ag 6,319,304 18,268,977 131,791 24,720,072 Corporate and Other 20,262 — 41,043 61,305 Total revenues $ 12,732,641 $ 18,994,978 $ 172,834 $ 31,900,453 *Our Nitrogen Production reportable segment represents an equity method investment that records earnings and allocated expenses, but not revenues. Less than 1% of revenues accounted for under ASC Topic 606 included within the table above are recorded over time and relate primarily 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 on the passage of time. This results in the recognition of an asset, as the amount of revenue recognized at a certain point in time exceeds the amount billed to the customer. Contract assets are recorded in accounts receivable within our Consolidated Balance Sheets and were immaterial as of August 31, 2020 and 2019. Contract liabilities relate to advance payments from customers for goods and services that we have yet to provide. Contract liabilities of $139.1 million and $207.5 million as of August 31, 2020 and 2019, respectively, are recorded within other current liabilities on our Consolidated Balance Sheets. For the years ended August 31, 2020 and 2019, we recognized revenues of $194.8 million and $170.7 million, respectively, which were included in the other current liabilities balance at the beginning of the period. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Revenues [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Year Ended August 31, 2020 Reportable Segment* ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues (Dollars in thousands) Energy $ 4,833,003 $ 598,131 $ — $ 5,431,134 Ag 5,963,198 16,901,258 61,643 22,926,099 Corporate and Other 22,903 — 26,229 49,132 Total revenues $ 10,819,104 $ 17,499,389 $ 87,872 $ 28,406,365 Year Ended August 31, 2019 Reportable Segment* ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues (Dollars in thousands) Energy $ 6,393,075 $ 726,001 $ — $ 7,119,076 Ag 6,319,304 18,268,977 131,791 24,720,072 Corporate and Other 20,262 — 41,043 61,305 Total revenues $ 12,732,641 $ 18,994,978 $ 172,834 $ 31,900,453 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Trade accounts receivable $ 1,476,585 $ 1,803,284 CHS Capital short-term notes receivable 563,934 592,909 Other 491,068 511,821 Gross receivables 2,531,587 2,908,014 Less allowances and reserves 165,540 176,805 Total receivables $ 2,366,047 $ 2,731,209 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Grain and oilseed $ 1,064,079 $ 1,024,645 Energy 696,858 717,378 Agronomy 822,535 954,037 Processed grain and oilseed 126,022 109,900 Other 32,644 48,328 Total inventories $ 2,742,138 $ 2,854,288 |
Deferred Costs, Capitalized, _2
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Derivative assets (Note 15) $ 371,195 $ 253,341 Margin and related deposits 194,097 155,306 Supplier advance payments 198,699 197,290 Other 253,497 259,982 Total other current assets $ 1,017,488 $ 865,919 Margin and Related Deposits |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Investments [Abstract] | |
Summary of investments | Investments as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,662,618 $ 2,708,942 Ventura Foods, LLC 381,351 374,516 Ardent Mills, LLC 208,927 209,027 Other equity method investments 253,182 267,247 Other investments 123,955 124,264 Total investments $ 3,630,033 $ 3,683,996 |
Summarized financial information of equity method investments | The following tables provide aggregate summarized financial information for CF Nitrogen for the balance sheets as of August 31, 2020 and 2019, and the statements of operations for the 12 months ended August 31, 2020, 2019 and 2018: 2020 2019 (Dollars in thousands) Current assets $ 552,127 $ 590,057 Noncurrent assets 6,564,086 7,028,766 Current liabilities 222,391 228,324 Noncurrent liabilities 3,036 2,455 2020 2019 2018 (Dollars in thousands) Net sales $ 2,522,827 $ 2,894,795 $ 2,449,695 Gross profit 570,901 737,168 423,612 Net earnings 529,462 706,291 401,295 Earnings attributable to CHS Inc. 127,954 160,373 106,895 2020 2019 (Dollars in thousands) Current assets $ 1,548,930 $ 1,469,003 Noncurrent assets 2,461,886 2,327,217 Current liabilities 628,440 535,579 Noncurrent liabilities 895,620 790,401 2020 2019 2018 (Dollars in thousands) Net sales $ 5,440,143 $ 5,752,368 $ 5,882,035 Gross profit 584,352 565,784 601,927 Net earnings 181,049 248,303 226,776 Earnings attributable to CHS Inc. 48,927 69,157 46,069 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Major classes of property, plant and equipment, including capital lease assets | As of August 31, 2020 and 2019, major classes of property, plant and equipment, which include finance lease assets, consisted of the amounts in the table below. 2020 2019 (Dollars in thousands) Land and land improvements $ 317,714 $ 319,452 Buildings 1,110,490 1,079,073 Machinery and equipment 7,559,437 7,392,767 Office equipment and other 362,084 346,649 Construction in progress 310,901 329,297 Gross property, plant and equipment 9,660,626 9,467,238 Less accumulated depreciation and amortization 4,702,688 4,378,530 Total property, plant and equipment $ 4,957,938 $ 5,088,708 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Goodwill $ 172,404 $ 172,404 Customer lists, trademarks and other intangible assets 65,025 71,206 Notes receivable 109,145 189,045 Long-term derivative assets 21,157 36,408 Prepaid pension and other benefits 106,209 73,100 Capitalized major maintenance 228,511 286,890 Cash value life insurance 130,673 122,792 Operating lease right of use assets 257,834 — Other 48,471 60,350 Total other assets $ 1,139,429 $ 1,012,195 |
Changes in the Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill for the year ended August 31, 2019, by segment, are as follows: Energy Ag Corporate Total (Dollars in thousands) Balances, August 31, 2018 $ 552 $ 127,338 $ 10,574 $ 138,464 Goodwill acquired during the period — 61,358 — 61,358 Impairment — (27,418) — (27,418) Balances, August 31, 2019 552 161,278 10,574 172,404 |
Schedule of Intangible Assets included in Other Assets | Information regarding intangible assets is as follows: August 31, 2020 August 31, 2019 Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (Dollars in thousands) Customer lists $ 84,895 $ (23,770) $ 61,125 $ 84,815 $ (17,609) $ 67,206 Trademarks and other intangible assets 10,735 (6,835) 3,900 9,736 (5,736) 4,000 Total intangible assets $ 95,630 $ (30,605) $ 65,025 $ 94,551 $ (23,345) $ 71,206 |
Estimated Amortization Expense Related to Intangible Assets Subject to Amortization | The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows: (Dollars in thousands) 2021 $ 8,215 2022 7,973 2023 7,870 2024 7,660 2025 7,345 Thereafter 25,866 Total $ 64,929 |
Activity Related to Capitalized Major Maintenance Costs at Refineries | Activity related to capitalized major maintenance costs at our refineries for the years ended August 31, 2020, 2019 and 2018, is summarized below: Balance at Cost Amortization Balance at (Dollars in thousands) 2020 $ 286,890 $ 14,496 $ (72,875) $ 228,511 2019 130,780 224,406 (68,296) 286,890 2018 105,006 87,460 (61,686) 130,780 |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Notes payable as of August 31, 2020 and 2019, consisted of the following: Weighted-average Interest Rate 2020 2019 2020 2019 (Dollars in thousands) Notes payable 1.96% 3.36% $ 763,215 $ 1,330,550 CHS Capital notes payable 1.29% 2.90% 812,276 825,558 Total notes payable $ 1,575,491 $ 2,156,108 |
Summary of primary lines of credit | The following table summarizes our primary lines of credit as of August 31, 2020 and 2019: Primary Revolving Credit Facilities Fiscal Year Total Capacity Borrowings Outstanding Interest Rates 2020 2020 2019 (Dollars in thousands) Committed five-year unsecured facility 2024 $ 2,750,000 $ 345,000 $ 335,000 LIBOR or base rate +0.00% to 1.55% Uncommitted bilateral facilities* 2021 300,000 — 430,000 LIBOR or base rate + applicable margin |
Schedule of amounts included in long-term debt | Amounts included in long-term debt on our Consolidated Balance Sheets as of August 31, 2020 and 2019, are presented in the table below. 2020 2019 (Dollars in thousands) 4.00% unsecured notes $100 million face amount, due in equal installments beginning in fiscal 2017 through fiscal 2021 $ 20,000 $ 40,000 4.52% unsecured notes $160 million face amount, due in fiscal 2021 162,090 161,978 4.67% unsecured notes $130 million face amount, due in fiscal 2023 137,623 136,086 4.39% unsecured notes $152 million face amount, due in fiscal 2023 152,000 152,000 3.85% unsecured notes $80 million face amount, due in fiscal 2025 80,000 80,000 3.80% unsecured notes $100 million face amount, due in fiscal 2025 100,000 100,000 4.58% unsecured notes $150 million face amount, due in fiscal 2025 154,012 151,776 4.82% unsecured notes $80 million face amount, due in fiscal 2026 80,000 80,000 4.69% unsecured notes $58 million face amount, due in fiscal 2027 58,000 58,000 4.74% unsecured notes $95 million face amount, due in fiscal 2028 95,000 95,000 4.89% unsecured notes $100 million face amount, due in fiscal 2031 100,000 100,000 4.71% unsecured notes $100 million face amount, due in fiscal 2033 100,000 100,000 5.40% unsecured notes $125 million face amount, due in fiscal 2036 125,000 125,000 Private placement debt 1,363,725 1,379,840 2.25% unsecured term loans from cooperative and other banks, due in fiscal 2025 (a) 366,000 366,000 Bank financing 366,000 366,000 Finance lease liabilities 31,460 28,239 Other notes and contracts with interest rates from 0.0% to 10.0% 34,709 18,601 Deferred financing costs (4,771) (3,569) Total long-term debt 1,791,123 1,789,111 Less current portion 189,287 39,210 Long-term portion $ 1,601,836 $ 1,749,901 (a) Borrowings are variable under the agreement and bear interest at a base rate (or LIBOR) plus an applicable margin. |
Schedule of minimum future payments | Long-term debt outstanding as of August 31, 2020, has aggregate maturities, excluding fair value adjustments and finance leases (see Note 19, Leases , for a schedule of minimum future lease payments under finance leases), as follows: (Dollars in thousands) 2021 $ 181,628 2022 30,828 2023 282,828 2024 780 2025 696,780 Thereafter 558,103 Total $ 1,750,947 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Customer margin deposits and credit balances $ 149,539 $ 143,049 Customer advance payments 300,100 336,645 Derivative liabilities (Note 15) 416,204 241,957 Dividends and equity payable 63,000 180,000 Total other current liabilities $ 928,843 $ 901,651 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for (benefit from) income taxes | The (benefit from) provision for income taxes for the years ended August 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 (Dollars in thousands) Current: Federal $ 4,519 $ 211 $ 15,576 State (2,231) 3,815 7,041 Foreign 2,748 (2,630) 20,268 Total Current 5,036 1,396 42,885 Deferred: Federal (36,231) (4,923) (146,780) State (5,263) (8,491) (127) Foreign (273) (438) (54) Total Deferred (41,767) (13,852) (146,961) Total $ (36,731) $ (12,456) $ (104,076) |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Deferred tax assets: Accrued expenses $ 51,560 $ 62,245 Postretirement health care and deferred compensation 42,898 42,747 Tax credit carryforwards 123,193 152,347 Loss carryforwards 116,741 136,435 Nonqualified equity 344,924 290,447 Lease obligations 64,140 — Other 85,856 97,071 Deferred tax assets valuation reserve (219,891) (246,344) Total deferred tax assets 609,421 534,948 Deferred tax liabilities: Pension 17,131 11,237 Investments 95,916 99,838 Major maintenance 91 4,679 Property, plant and equipment 556,160 560,334 Right of use asset 64,140 — Other 15,326 1,760 Total deferred tax liabilities 748,764 677,848 Net deferred tax liabilities $ 139,343 $ 142,900 |
Reconciliation of the statutory federal income tax rates to effective tax rates | The reconciliation of the statutory federal income tax rates to the effective tax rates for the years ended August 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 25.7 % State and local income taxes, net of federal income tax benefit (1.8) (0.7) 0.7 Patronage earnings (13.1) (14.3) (13.6) Domestic production activities deduction (19.0) (9.9) (8.4) Export activities at rates other than the U.S. statutory rate 1.8 (2.1) 5.7 U.S. tax reform — — (23.2) Intercompany transfer of business assets (1.6) — (6.1) Increase in unrecognized tax benefits 4.2 0.2 6.8 Valuation allowance (1.0) 2.6 (3.0) Tax credits 0.2 0.4 0.7 Other (0.2) 1.3 (0.8) Effective tax rate (9.5) % (1.5) % (15.5) % |
Reconciliation of the gross beginning and ending amounts of unrecognized tax benefits | A reconciliation of the gross beginning and ending amounts of unrecognized tax benefits for the periods presented follows: 2020 2019 2018 (Dollars in thousands) Balance at beginning of period $ 101,128 $ 91,135 $ 37,830 Additions attributable to current year tax positions 14,410 14,162 3,640 Additions attributable to prior year tax positions 6,128 — 49,665 Reductions attributable to prior year tax positions (2,516) (4,169) — Balance at end of period $ 119,150 $ 101,128 $ 91,135 |
Equities (Tables)
Equities (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class [Table Text Block] | The following is a summary of our outstanding preferred stock as of August 31, 2020, all shares of which are listed and traded on The Nasdaq: Nasdaq Symbol Issuance Date Shares Outstanding Redemption Value Net Proceeds (a) Dividend Rate Dividend Payment Frequency Redeemable Beginning (d) (Dollars in millions) 8% Cumulative Redeemable CHSCP (e) 12,272,003 $ 306.8 $ 311.2 8.00 % Quarterly 7/18/2023 Class B Cumulative Redeemable, Series 1 CHSCO (f) 21,459,066 536.5 569.3 7.875 % Quarterly 9/26/2023 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN 3/11/2014 16,800,000 420.0 406.2 7.10 % Quarterly 3/31/2024 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM 9/15/2014 19,700,000 492.5 476.7 6.75 % Quarterly 9/30/2024 Class B Cumulative Redeemable, Series 4 CHSCL 1/21/2015 20,700,000 517.5 501.0 7.50 % Quarterly 1/21/2025 (a) Includes patrons' equities redeemed with preferred stock. (b) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 accumulates dividends at a rate of 7.10% per year until March 31, 2024, and then at a rate equal to the three-month LIBOR plus 4.298%, not to exceed 8.00% per annum, subsequent to March 31, 2024. (c) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulates dividends at a rate of 6.75% per year until September 30, 2024, and then at a rate equal to the three-month LIBOR plus 4.155%, not to exceed 8.00% per annum, subsequent to September 30, 2024. (d) Preferred stock is redeemable for cash at our option, in whole or in part, at a per share price equal to the per share liquidation preference of $25.00 per share, plus all dividends accumulated and unpaid on that share to and including the date of redemption, beginning on the dates set forth in this column. (e) The 8% Cumulative Redeemable Preferred Stock was issued at various times from 2003 through 2010. (f) Shares of Class B Cumulative Redeemable Preferred Stock, Series 1 were issued on September 26, 2013; August 25, 2014; March 31, 2016; and March 30, 2017. Years Ended August 31, Nasdaq Symbol 2020 2019 (Dollars per share) 8% Cumulative Redeemable CHSCP $ 2.00 $ 2.00 Class B Cumulative Redeemable, Series 1 CHSCO 1.97 1.97 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN 1.78 1.78 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM 1.69 1.69 Class B Cumulative Redeemable, Series 4 CHSCL 1.88 1.88 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in accumulated other comprehensive income (loss) by component, for the years ended August 31, 2020, 2019 and 2018 are as follows: Pension and Other Postretirement Benefits Unrealized Net Gain (Loss) on Available for Sale Investments Cash Flow Hedges Foreign Currency Translation Adjustment Total (Dollars in thousands) Balance as of August 31, 2017, net of tax $ (132,444) $ 10,041 $ (6,954) $ (51,003) $ (180,360) Other comprehensive income (loss), before tax: Amounts before reclassifications 7,633 21,078 1,031 (10,062) 19,680 Amounts reclassified out 21,804 (25,534) 1,704 (2,042) (4,068) Total other comprehensive income (loss), before tax 29,437 (4,456) 2,735 (12,104) 15,612 Tax effect (9,371) 1,308 (195) 83 (8,175) Other comprehensive income (loss), net of tax 20,066 (3,148) 2,540 (12,021) 7,437 Reclassification of tax effects to capital reserves (27,957) 1,968 (1,468) 465 (26,992) 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 (51,118) — 37,709 (9,990) (23,399) Amounts reclassified out 10,279 — (9,843) — 436 Total other comprehensive income (loss), before tax (40,839) — 27,866 (9,990) (22,963) Tax effect 8,280 — (7,670) 41 651 Other comprehensive income (loss), net of tax (32,559) — 20,196 (9,949) (22,312) Reclassifications 416 (8,861) 983 2,756 (4,706) 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 (4,751) — 16,430 (17,021) (5,342) Amounts reclassified out 19,908 — (22,291) — (2,383) Total other comprehensive income (loss), before tax 15,157 — (5,861) (17,021) (7,725) Tax effect (2,359) — 1,450 1,643 734 Other comprehensive income (loss), net of tax 12,798 — (4,411) (15,378) (6,991) Balance as of August 31, 2020, net of tax $ (159,680) $ — $ 10,886 $ (85,130) $ (233,924) |
Equities Peferred Stock Table (
Equities Peferred Stock Table (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Preferred Stock [Abstract] | |
Schedule of Stock by Class [Table Text Block] | The following is a summary of our outstanding preferred stock as of August 31, 2020, all shares of which are listed and traded on The Nasdaq: Nasdaq Symbol Issuance Date Shares Outstanding Redemption Value Net Proceeds (a) Dividend Rate Dividend Payment Frequency Redeemable Beginning (d) (Dollars in millions) 8% Cumulative Redeemable CHSCP (e) 12,272,003 $ 306.8 $ 311.2 8.00 % Quarterly 7/18/2023 Class B Cumulative Redeemable, Series 1 CHSCO (f) 21,459,066 536.5 569.3 7.875 % Quarterly 9/26/2023 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN 3/11/2014 16,800,000 420.0 406.2 7.10 % Quarterly 3/31/2024 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM 9/15/2014 19,700,000 492.5 476.7 6.75 % Quarterly 9/30/2024 Class B Cumulative Redeemable, Series 4 CHSCL 1/21/2015 20,700,000 517.5 501.0 7.50 % Quarterly 1/21/2025 (a) Includes patrons' equities redeemed with preferred stock. (b) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 accumulates dividends at a rate of 7.10% per year until March 31, 2024, and then at a rate equal to the three-month LIBOR plus 4.298%, not to exceed 8.00% per annum, subsequent to March 31, 2024. (c) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulates dividends at a rate of 6.75% per year until September 30, 2024, and then at a rate equal to the three-month LIBOR plus 4.155%, not to exceed 8.00% per annum, subsequent to September 30, 2024. (d) Preferred stock is redeemable for cash at our option, in whole or in part, at a per share price equal to the per share liquidation preference of $25.00 per share, plus all dividends accumulated and unpaid on that share to and including the date of redemption, beginning on the dates set forth in this column. (e) The 8% Cumulative Redeemable Preferred Stock was issued at various times from 2003 through 2010. (f) Shares of Class B Cumulative Redeemable Preferred Stock, Series 1 were issued on September 26, 2013; August 25, 2014; March 31, 2016; and March 30, 2017. Years Ended August 31, Nasdaq Symbol 2020 2019 (Dollars per share) 8% Cumulative Redeemable CHSCP $ 2.00 $ 2.00 Class B Cumulative Redeemable, Series 1 CHSCO 1.97 1.97 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN 1.78 1.78 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM 1.69 1.69 Class B Cumulative Redeemable, Series 4 CHSCL 1.88 1.88 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans disclosures | Financial information on changes in projected benefit obligation, plan assets funded and balance sheet status as of August 31, 2020 and 2019, is as follows: Qualified Nonqualified Other Benefits 2020 2019 2020 2019 2020 2019 (Dollars in thousands) Change in benefit obligation: Projected benefit obligation at beginning of period $ 876,696 $ 767,184 $ 19,047 $ 20,755 $ 31,098 $ 29,790 Service cost 42,151 38,592 405 311 1,050 1,053 Interest cost 21,722 28,396 429 747 747 1,094 Actuarial loss (gain) 6,265 (9,606) 1,382 76 (2,286) (2,596) Assumption change 40,694 102,441 775 1,841 1,275 3,398 Plan amendments — 18 — — — — Settlements — (615) (2,130) (3,975) — — Benefits paid (69,526) (49,714) (725) (708) (1,568) (1,641) Projected benefit obligation at end of period $ 918,002 $ 876,696 $ 19,183 $ 19,047 $ 30,316 $ 31,098 Change in plan assets: Fair value of plan assets at beginning of period $ 909,427 $ 829,616 $ — $ — $ — $ — Actual gain on plan assets 90,241 90,139 — — — — Company contributions 46,400 40,001 2,855 4,683 1,568 1,641 Settlements — (615) (2,130) (3,975) — — Benefits paid (69,526) (49,714) (725) (708) (1,568) (1,641) Fair value of plan assets at end of period $ 976,542 $ 909,427 $ — $ — $ — $ — Funded status at end of period $ 58,540 $ 32,731 $ (19,183) $ (19,047) $ (30,316) $ (31,098) Amounts recognized on balance sheet: Noncurrent assets $ 58,540 $ 32,731 $ — $ — $ — $ — Accrued benefit cost: Current liabilities — — (1,660) (1,580) (2,090) (2,040) Noncurrent liabilities — — (17,523) (17,467) (28,226) (29,058) Ending balance $ 58,540 $ 32,731 $ (19,183) $ (19,047) $ (30,316) $ (31,098) Amounts recognized in accumulated other comprehensive loss (pretax): Prior service cost (credit) $ 938 $ 1,117 $ (502) $ (616) $ (2,715) $ (3,160) Net loss (gain) 225,983 244,164 3,813 2,151 (15,064) (15,445) Ending balance $ 226,921 $ 245,281 $ 3,311 $ 1,535 $ (17,779) $ (18,605) |
Schedule of information for pensions plans with an accumulated benefit obligation in excess of plan assets | Information for the pension plans with an accumulated benefit obligation in excess of plan assets is set forth below: Years Ended August 31, 2020 2019 (Dollars in thousands) Projected benefit obligation $ 19,183 $ 19,047 Accumulated benefit obligation 18,172 16,907 |
Schedule of net benefit costs of assumptions used | Components of net periodic benefit costs for the years ended August 31, 2020, 2019 and 2018, are as follows: Qualified Nonqualified Other Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 (Dollars in thousands) Components of net periodic benefit costs: Service cost $ 42,151 $ 38,592 $ 39,677 $ 405 $ 311 $ 548 $ 1,050 $ 1,053 $ 943 Interest cost 21,722 28,396 24,007 429 747 711 747 1,094 908 Expected return on assets (46,684) (44,968) (48,159) — — — — — — Settlement of retiree obligations — 51 — — 191 (112) — — — Prior service cost (credit) amortization 178 190 1,437 (114) (75) 30 (445) (556) (565) Actuarial loss (gain) amortization 21,583 12,348 18,073 98 2 61 (1,392) (1,627) (1,224) Net periodic benefit cost (benefit) $ 38,950 $ 34,609 $ 35,035 $ 818 $ 1,176 $ 1,238 $ (40) $ (36) $ 62 Weighted-average assumptions to determine the net periodic benefit cost: Discount rate 3.06 % 4.23 % 3.80 % 2.70 % 4.09 % 3.53 % 2.89 % 4.08 % 3.56 % Expected return on plan assets 5.50 % 5.50 % 5.75 % N/A N/A N/A N/A N/A N/A Rate of compensation increase 5.28 % 5.14 % 5.08 % 5.28 % 5.14 % 5.08 % N/A N/A N/A Weighted-average assumptions to determine the benefit obligations: Discount rate 2.67 % 3.06 % 4.23 % 2.15 % 2.70 % 4.09 % 2.43 % 2.89 % 4.13 % Rate of compensation increase 4.99 % 5.28 % 5.14 % 4.99 % 5.28 % 5.14 % N/A N/A N/A |
Schedule of components of net periodic benefit costs and amounts recognized in other comprehensive income (loss) | Components of net periodic benefit costs and amounts recognized in other comprehensive loss (income) for the years ended August 31, 2020, 2019 and 2018, are as follows: Qualified Nonqualified Other Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 (Dollars in thousands) Other comprehensive loss (income): Prior service cost $ — $ 18 $ 244 $ — $ — $ — $ — $ — $ — Net actuarial loss (gain) 3,401 47,556 (8,553) 2,157 1,917 (578) (1,011) 801 (2,234) Amortization of actuarial (gain) loss (21,583) (12,307) (18,073) (98) (2) (61) 1,392 1,627 1,224 Amortization of prior service (credit) costs (178) (190) (1,437) 114 75 (30) 445 556 565 Settlement of retiree obligations (a) — — — (397) (191) 112 — — — Total recognized in other comprehensive loss (income) $ (18,360) $ 35,077 $ (27,819) $ 1,776 $ 1,799 $ (557) $ 826 $ 2,984 $ (445) |
Schedule of amounts in accumulated other comprehensive income (loss) to be recognized over next fiscal year | stimated amortization in fiscal 2021 from accumulated other comprehensive loss into net periodic benefit cost is as follows: Qualified Nonqualified Other (Dollars in thousands) Amortization of prior service cost (credit) $ 178 $ (114) $ (445) Amortization of actuarial loss (gain) 21,790 212 (1,365) |
Schedule of effect of one-percentage-point change in assumed health care cost trend rates | A one-percentage-point change in the assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease (Dollars in thousands) Effect on total of service and interest cost components $ 200 $ (170) Effect on postretirement benefit obligation 2,100 (1,800) |
Schedule of expected benefit payments | Our retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows: Qualified Nonqualified Other Benefits (Dollars in thousands) 2021 $ 75,700 $ 1,660 $ 2,090 2022 65,900 1,840 2,280 2023 63,500 1,840 2,470 2024 64,700 1,620 2,450 2025 65,300 1,820 2,450 2026-2030 326,700 8,010 9,790 |
Schedule of defined benefit plans, fair value disclosure | Our pension plans' recurring fair value measurements by asset category at August 31, 2020 and 2019, are presented in the tables below: 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Cash and cash equivalents $ 57,801 $ — $ — $ 57,801 Equities: Common/collective trust at net asset value (1) — — — 219,050 Fixed income securities: Common/collective trust at net asset value (1) — — — 603,250 Partnership and joint venture interests measured at net asset value (1) — — — 94,400 Other assets measured at net asset value (1) — — — 2,041 Total $ 57,801 $ — $ — $ 976,542 2019 Level 1 Level 2 Level 3 Total (Dollars in thousands) Cash and cash equivalents $ 7,938 $ — $ — $ 7,938 Equities: Common/collective trust at net asset value (1) — — — 209,860 Fixed income securities: Common/collective trust at net asset value (1) — — — 574,296 Partnership and joint venture interests measured at net asset value (1) — — — 101,641 Other assets measured at net asset value (1) — — — 15,692 Total $ 7,938 $ — $ — $ 909,427 (1) In accordance with ASC Topic 820-10, Fair Value Measurement, certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of net assets. |
Schedule of multiemployer plans | Our participation in the Co-op Plan for the years ended August 31, 2020, 2019 and 2018, is outlined in the table below: Contributions of CHS (Dollars in thousands) Plan Name EIN/Plan Number 2020 2019 2018 Surcharge Imposed Expiration Date of Collective Bargaining Agreement Co-op Retirement Plan 01-0689331 / 001 $ 1,455 $ 1,712 $ 1,662 N/A N/A |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information for the years ended August 31, 2020, 2019 and 2018 is presented in the tables below. The fiscal 2020 and fiscal 2019 results for our Ag segment include results associated with our acquisition of the remaining 75% ownership interest in WCD that we did not previously own on March 1, 2019, which were not included in our fiscal 2018 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 20, Acquisitions . Energy Ag Nitrogen Production Corporate Reconciling Total (Dollars in thousands) For the year ended August 31, 2020 Revenues, including intersegment revenues $ 5,820,154 $ 22,940,712 $ — $ 55,567 $ (410,068) $ 28,406,365 Intersegment revenues (389,020) (14,613) — (6,435) 410,068 — Revenues, net of intersegment revenues $ 5,431,134 $ 22,926,099 $ — $ 49,132 $ — $ 28,406,365 Operating earnings (loss) 219,861 82,543 (33,497) 8,358 — 277,265 Gain on disposal of business — (211) — (1,239) — (1,450) Interest expense 308 71,682 45,255 11,806 (12,074) 116,977 Other income (3,005) (35,349) (2,635) (9,510) 12,074 (38,425) Equity income from investments (2,759) (7,303) (127,954) (48,699) — (186,715) Income before income taxes $ 225,317 $ 53,724 $ 51,837 $ 56,000 $ — $ 386,878 Capital expenditures 175,169 158,903 — 84,287 — 418,359 Depreciation and amortization 245,983 196,510 — 34,882 — 477,375 Total assets as of August 31, 2020 4,447,526 6,325,857 2,681,616 2,538,948 — 15,993,947 Energy Ag Nitrogen Production Corporate Reconciling Total (Dollars in thousands) For the year ended August 31, 2019 Revenues, including intersegment revenues $ 7,581,450 $ 24,736,425 $ — $ 68,710 $ (486,132) $ 31,900,453 Intersegment revenues (462,374) (16,353) — (7,405) 486,132 — Revenues, net of intersegment revenues $ 7,119,076 $ 24,720,072 $ — $ 61,305 $ — $ 31,900,453 Operating earnings (loss) 615,662 65,181 (35,046) 13,805 — 659,602 Gain on disposal of business — (3,886) — — — (3,886) Interest expense 5,719 101,386 55,226 11,684 (6,950) 167,065 Other income (5,548) (70,888) (2,769) (10,168) 6,950 (82,423) Equity income from investments (2,697) (4,447) (160,373) (69,238) — (236,755) Income before income taxes $ 618,188 $ 43,016 $ 72,870 $ 81,527 $ — $ 815,601 Capital expenditures 268,877 110,197 — 64,142 — 443,216 Depreciation and amortization 233,624 208,294 — 31,293 — 473,211 Total assets as of August 31, 2019 4,401,793 6,415,580 2,730,306 2,899,815 — 16,447,494 Energy Ag Nitrogen Production Corporate Reconciling Total (Dollars in thousands) For the year ended August 31, 2018 Revenues, including intersegment revenues $ 8,068,717 $ 25,052,395 $ — $ 64,516 $ (502,281) $ 32,683,347 Intersegment revenues (479,598) (14,914) — (7,769) 502,281 — Revenues, net of intersegment revenues $ 7,589,119 $ 25,037,481 $ — $ 56,747 $ — $ 32,683,347 Operating earnings (loss) 388,112 93,728 (20,619) (8,857) — 452,364 Gain on disposal of business (65,862) (7,707) — (58,247) — (131,816) Interest expense 14,627 94,256 50,499 (7,712) (2,468) 149,202 Other income (9,698) (68,471) (3,061) (3,975) 2,468 (82,737) Equity (income) loss from investments (3,063) 1,392 (106,895) (44,949) — (153,515) Income before income taxes $ 452,108 $ 74,258 $ 38,838 $ 106,026 $ — $ 671,230 Capital expenditures 248,207 77,962 — 29,243 — 355,412 Depreciation and amortization 230,230 218,716 — 29,104 — 478,050 |
Schedule of Sales Based on Geographic Locations | The following table presents our sales, based on the geographic location of the subsidiary making the sale, for the years ended August 31, 2020, 2019 and 2018: 2020 2019 2018 (Dollars in thousands) North America (a) $ 25,360,077 $ 27,896,269 $ 29,475,724 South America 1,559,380 2,027,020 1,569,330 Europe, Middle East and Africa (EMEA) 774,068 895,472 536,501 Asia Pacific (APAC) 712,840 1,081,692 1,101,792 Total $ 28,406,365 $ 31,900,453 $ 32,683,347 (a) Revenues in North America are substantially all attributed to revenues from the United States. |
Schedule of Long-lived Assets by Geographical Region | The following table presents long-lived assets by geographical region based on physical location: 2020 2019 (Dollars in thousands) United States $ 5,121,315 $ 5,295,752 International 65,134 79,846 Total $ 5,186,449 $ 5,375,598 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gross fair values of derivative assets, derivative liabilities, and margin deposits (cash collateral) | The following tables present the gross fair values of derivative assets, derivative liabilities and margin deposits (cash collateral) recorded on our Consolidated Balance Sheets, along with related amounts permitted to be offset in accordance with U.S. GAAP. Although we have certain netting arrangements for our exchange-traded futures and options contracts and certain over-the-counter ("OTC") contracts, we have elected to report our derivative instruments on a gross basis on our Consolidated Balance Sheets under ASC Topic 210-20, Balance Sheet - Offsetting . August 31, 2020 Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting Gross Amounts Recognized Cash Collateral Derivative Instruments Net Amounts (Dollars in thousands) Derivative Assets Commodity derivatives $ 327,493 $ — $ 2,980 $ 324,513 Foreign exchange derivatives 11,809 — 9,385 2,424 Embedded derivative asset 18,998 — — 18,998 Total $ 358,300 $ — $ 12,365 $ 345,935 Derivative Liabilities Commodity derivatives $ 343,343 $ 956 $ 5,578 $ 336,809 Foreign exchange derivatives 69,466 — 9,385 60,081 Total $ 412,809 $ 956 $ 14,963 $ 396,890 August 31, 2019 Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting Gross Amounts Recognized Cash Collateral Derivative Instruments Net Amounts (Dollars in thousands) Derivative Assets Commodity derivatives $ 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 |
Pretax gains (losses) on derivatives not accounted for as hedging instruments | The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the years ended August 31, 2020, 2019 and 2018. Derivative Type Location of 2020 2019 2018 (Dollars in thousands) Commodity derivatives Cost of goods sold $ 89,248 $ 125,323 $ 162,321 Foreign exchange derivatives Cost of goods sold (184,692) 4,228 (26,010) Foreign exchange derivatives Marketing, general and administrative expenses (2,986) (1,229) 596 Interest rate derivatives Interest expense (1,226) — (1) Embedded derivative Other income 2,634 2,769 3,061 Total $ (97,022) $ 131,091 $ 139,967 |
Schedule of notional volumes for outstanding commodity contracts | The table below presents the notional volumes for all outstanding commodity contracts. 2020 2019 Derivative Type Long Short Long Short (Units in thousands) Grain and oilseed (bushels) 664,673 892,303 547,096 717,522 Energy products (barrels) 10,028 6,570 13,895 4,663 Processed grain and oilseed (tons) 657 3,304 597 2,454 Crop nutrients (tons) 74 127 76 23 Ocean freight (metric tons) 1,140 95 295 85 Natural gas (MMBtu) — — 130 — |
Schedule of fair value of derivative interest rate swap instruments designated as fair value hedges | The following table presents the fair value of our derivative interest rate swap instruments designated as fair value hedges and the line items on our Consolidated Balance Sheets in which they are recorded as of August 31, 2020 and 2019. 2020 2019 Balance Sheet Location Derivative Assets (Dollars in thousands) Other assets $ — $ 9,841 Derivative Assets Derivative Liabilities Balance Sheet Location 2020 2019 Balance Sheet Location 2020 2019 (Dollars in thousands) (Dollars in thousands) Other current assets $ 34,052 $ 33,179 Other current liabilities $ 8,821 $ 5,351 |
Schedule of pretax gains (losses) on derivatives accounted for as hedging instruments | The following table sets forth the pretax gains (losses) on derivatives accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the years ended August 31, 2020, 2019 and 2018. Gain (Loss) on Fair Value Hedging Relationships Location of 2020 2019 2018 (Dollars in thousands) Interest rate swaps Interest expense $ (1,897) $ 21,158 $ 18,723 Hedged item Interest expense 1,897 (21,158) (18,723) Total $ — $ — $ — 2020 2019 2018 (Dollars in thousands) Commodity derivatives $ (2,596) $ 27,650 $ 178 |
Schedule of location and carrying amount of hedged liabilities | The following table provides the location and carrying amount of hedged liabilities in our Consolidated Balance Sheets as of August 31, 2020 and 2019. August 31, 2020 August 31, 2019 Balance Sheet Location Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities (Dollars in thousands) Long-term debt $ — $ — $ 334,389 $ 30,611 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities recognized at fair value on a recurring basis | The following tables present assets and liabilities, included on our Consolidated Balance Sheets, that are recognized at fair value on a recurring basis and indicate the fair value hierarchy utilized to determine these fair values. Assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. The lowest level of input is considered Level 3. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. Recurring fair value measurements at August 31, 2020 and 2019, are as follows: 2020 Quoted Prices in Active Markets Significant Other Observable Significant Total (Dollars in thousands) Assets Commodity derivatives $ 5,762 $ 355,783 $ — $ 361,545 Foreign currency derivatives — 11,523 — 11,523 Deferred compensation assets 47,669 — — 47,669 Embedded derivative asset — 18,998 — 18,998 Segregated investments 85,950 — — 85,950 Other assets 5,276 — — 5,276 Total $ 144,657 $ 386,304 $ — $ 530,961 Liabilities Commodity derivatives $ 6,037 $ 346,126 $ — $ 352,163 Foreign currency derivatives — 69,467 — 69,467 Total $ 6,037 $ 415,593 $ — $ 421,630 2019 Quoted Prices in Active Markets Significant Other Observable Significant Total (Dollars in thousands) Assets Commodity derivatives $ 67,817 $ 180,392 $ — $ 248,209 Foreign currency 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 currency derivatives — 20,701 — 20,701 Total $ 40,305 $ 209,156 $ — $ 249,461 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded unconditional purchase obligations disclosure | As of August 31, 2020, minimum future payments required under long-term commitments that are noncancelable, and that third parties have used to secure financing for facilities that will provide contracted goods, are as follows: Payments Due by Period Total 2021 2022 2023 2024 2025 Thereafter (Dollars in thousands) Long-term unconditional purchase obligations $ 544,203 $ 78,939 $ 58,214 $ 58,592 $ 58,262 $ 52,702 $ 237,494 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | , primarily CF Nitrogen, Ventura Foods, Ardent Mills and TEMCO, LLC. Sales to and purchases from related parties for the years ended August 31, 2020, 2019 and 2018, respectively, are as follows: 2020 2019 2018 (Dollars in thousands) Sales $ 2,528,921 $ 2,628,670 $ 2,928,984 Purchases 872,819 901,812 2,505,185 Receivables due from and payables due to related parties as of August 31, 2020 and 2019, are as follows: 2020 2019 (Dollars in thousands) Due from related parties $ 129,397 $ 26,785 Due to related parties 53,602 60,156 |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Tables) | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Leases [Abstract] | ||
lease liability maturity | Maturities of lease liabilities as of August 31, 2020, were as follows: August 31, 2020 Finance Leases Operating Leases (Dollars in thousands) Fiscal 2021 $ 8,845 $ 64,379 Fiscal 2022 7,017 50,398 Fiscal 2023 6,053 40,269 Fiscal 2024 3,443 32,195 Fiscal 2025 2,046 23,034 Thereafter 7,933 95,553 Total maturities of lease liabilities 35,337 305,828 Less amounts representing interest 3,877 44,937 Present value of future minimum lease payments 31,460 260,891 Less current obligations 7,993 57,200 Long-term obligations $ 23,467 $ 203,691 | |
Lease, Cost | 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: Year Ended (Dollars in thousands) Operating lease expense $ 71,541 Finance lease expense: Amortization of assets 8,205 Interest on lease liabilities 1,060 Short-term lease expense 15,991 Variable lease expense 3,674 Total net lease expense* $ 100,471 | |
Lease Balance Sheet Disclosure | Supplemental balance sheet information related to operating and finance leases is as follows: Balance Sheet Location August 31, 2020 (Dollars in thousands) Operating leases Assets Operating lease right of use assets Other assets $ 257,834 Liabilities Current operating lease liabilities Accrued expenses 57,200 Long-term operating lease liabilities Other liabilities 203,691 Total operating lease liabilities $ 260,891 Finance leases Assets Finance lease assets Property, plant and equipment $ 44,860 Liabilities Current finance lease liabilities Current portion of long-term debt 7,993 Long-term finance lease liabilities Long-term debt 23,467 Total finance lease liabilities $ 31,460 Weighted average remaining lease term (in years) Operating leases 8.3 Finance leases 6.0 Weighted average discount rate Operating leases 3.11 % Finance leases 3.33 % | |
Lease Cash Inflow and Other Information Disclosure | Supplemental cash flow and other information related to operating and finance leases is as follows: Year Ended (Dollars in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 71,003 Operating cash flows from finance leases 1,060 Financing cash flows from finance leases 7,949 Supplemental noncash information: Right of use assets obtained in exchange for lease liabilities 56,461 Right of use asset modifications 7,333 | |
Schedule of Future Minimum Payments for Capital and Operating Leases | Minimum future lease payments required under noncancelable capital and operating leases as of August 31, 2019, were as follows: August 31, 2019 Finance 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) | 12 Months Ended |
Aug. 31, 2020 | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (Dollars in thousands) Cash $ 8,033 Other current assets 708,764 Property, plant and equipment 44,064 Goodwill 61,358 Other intangible assets 47,200 Other non-current assets 55 Liabilities (718,262) Total net assets acquired $ 151,212 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2020 | Sep. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassifications | |||
Operating Lease, Right-of-Use Asset | $ 257,834 | $ 268,400 | |
ASC842cumulativeeffectadjustment | 25,300 | ||
Other liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Liability | 267,000 | ||
Other assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 268,400 |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Significant Accounting Policies Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 140,874 | $ 211,179 | $ 450,617 | |
Total cash and cash equivalents and restricted cash | 216,993 | 299,675 | 543,940 | $ 272,273 |
Restricted cash included in other current assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 76,119 | 88,496 | 90,193 | |
Other assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 0 | $ 0 | $ 3,130 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Contract with Customer, Liability, Current | $ 139,100 | $ 207,500 |
Revenue from Contract with Customer, Excluding Assessed Tax | (28,406,365) | (31,900,453) |
Contract with Customer, Liability, Revenue Recognized | $ 194,800 | $ 170,700 |
Revenues Disaggregated Revenue
Revenues Disaggregated Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Disaggregation of Revenue [Table Text Block] | Year Ended August 31, 2020 Reportable Segment* ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues (Dollars in thousands) Energy $ 4,833,003 $ 598,131 $ — $ 5,431,134 Ag 5,963,198 16,901,258 61,643 22,926,099 Corporate and Other 22,903 — 26,229 49,132 Total revenues $ 10,819,104 $ 17,499,389 $ 87,872 $ 28,406,365 Year Ended August 31, 2019 Reportable Segment* ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues (Dollars in thousands) Energy $ 6,393,075 $ 726,001 $ — $ 7,119,076 Ag 6,319,304 18,268,977 131,791 24,720,072 Corporate and Other 20,262 — 41,043 61,305 Total revenues $ 12,732,641 $ 18,994,978 $ 172,834 $ 31,900,453 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ (28,406,365) | $ (31,900,453) |
Accounting Standards Update 2014-09 | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (10,819,104) | (12,732,641) |
Accounting Standards Update 2017-12 [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (17,499,389) | (18,994,978) |
Other Guidance [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (87,872) | (172,834) |
Energy | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (5,431,134) | (7,119,076) |
Energy | Accounting Standards Update 2014-09 | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (4,833,003) | (6,393,075) |
Energy | Accounting Standards Update 2017-12 [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (598,131) | (726,001) |
Energy | Other Guidance [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Ag | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (22,926,099) | (24,720,072) |
Ag | Accounting Standards Update 2014-09 | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (5,963,198) | (6,319,304) |
Ag | Accounting Standards Update 2017-12 [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (16,901,258) | (18,268,977) |
Ag | Other Guidance [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (61,643) | (131,791) |
Corporate and Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (49,132) | (61,305) |
Corporate and Other | Accounting Standards Update 2014-09 | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (22,903) | (20,262) |
Corporate and Other | Accounting Standards Update 2017-12 [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Corporate and Other | Other Guidance [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (26,229) | $ (41,043) |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,476,585 | $ 1,803,284 |
CHS Capital short-term notes receivable | 563,934 | 592,909 |
Other | 491,068 | 511,821 |
Receivables, gross | 2,531,587 | 2,908,014 |
Less allowances and reserves | 165,540 | 176,805 |
Total receivables | $ 2,366,047 | $ 2,731,209 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
CHS Capital long-term notes receivable | $ 101.5 | $ 180 |
Percentage of commercial notes to CHS Capital long-term notes receivable | 33.00% | 41.00% |
Percentage of producer notes to CHS Capital long-term notes receivable | 67.00% | 59.00% |
Interest income accrual, discontinued, term | 90 days | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
CHS Capital short-term notes receivable, term | 12 months | |
Long-term notes receivable, term | 10 years | |
CHS Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Additional available credit | $ 714.5 | |
CHS Capital Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan loss reserves | 0 | |
Note receivables sold under loan participations | $ 70.6 | $ 92.3 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Aug. 31, 2020 | May 31, 2020 | Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Grain and oilseed | $ 1,064,079 | $ 1,024,645 | |
Energy | 696,858 | 717,378 | |
Agronomy | 822,535 | 954,037 | |
Processed grain and oilseed | 126,022 | 109,900 | |
Other | 32,644 | 48,328 | |
Total inventories | $ 2,742,138 | $ 2,854,288 | |
Percentage of LIFO Inventory | 16.00% | 16.00% | |
Inventory, LIFO Reserve | $ 93,500 | $ 215,000 | |
Production Related Impairments or Charges | $ 42,000 | ||
Decrease in production related impairment charge | $ 34,000 |
Deferred Costs, Capitalized, _3
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Other Current Assets [Abstract] | ||
Derivative Asset, Current | $ 371,195 | $ 253,341 |
Margin Deposit Assets | 194,097 | 155,306 |
Advances on Inventory Purchases | 198,699 | 197,290 |
Other Assets | 253,497 | 259,982 |
Other current assets | $ 1,017,488 | $ 865,919 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Cost method investments | $ 123,955 | $ 124,264 | |
Investments | 3,630,033 | 3,683,996 | |
Revenues | 28,406,365 | 31,900,453 | $ 32,683,347 |
Gross Profit | 981,807 | 1,384,333 | 1,092,120 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 423,609 | 828,057 | 775,306 |
CF Industries Nitrogen, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 2,662,618 | 2,708,942 | |
Revenues | 2,522,827 | 2,894,795 | 2,449,695 |
Gross Profit | 570,901 | 737,168 | 423,612 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 529,462 | 706,291 | $ 401,295 |
Ventura Foods, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 381,351 | 374,516 | |
Ardent Mills, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 208,927 | 209,027 | |
Other equity method investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 253,182 | $ 267,247 |
Investments - Narrative (Detail
Investments - Narrative (Details) | Feb. 01, 2016USD ($) | Aug. 31, 2020USD ($)T | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Feb. 01, 2096USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Equity (income) loss from investments, net of distributions received | $ (186,715,000) | $ (236,755,000) | $ (153,515,000) | ||
Investment Company, Distributable Earnings | $ 383,000,000 | ||||
CF Industries Nitrogen | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Amount invested in equity method investment | $ 2,700,000,000 | ||||
Supply agreement, term | 80 years | ||||
Maximum annual granular urea eligible for purchases | T | 1,100,000 | ||||
Maximum annual UAN eligible for purchases | T | 580,000 | ||||
Equity method investments | $ 2,662,618,000 | 2,708,942,000 | |||
Cash Distribution from Equity Method | $ 174,300,000 | 186,500,000 | |||
CF Industries Nitrogen | Forecast | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 0 | ||||
CF Industries Nitrogen | Nitrogen Production | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 10.00% | ||||
Ventura Foods | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 381,351,000 | 374,516,000 | |||
Ventura Foods | Ag | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | ||||
Ardent Mills | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 12.00% | ||||
Equity method investments | $ 208,927,000 | $ 209,027,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,660,626 | $ 9,467,238 |
Less accumulated depreciation and amortization | 4,702,688 | 4,378,530 |
Total property, plant and equipment | 4,957,938 | 5,088,708 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 317,714 | 319,452 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,110,490 | 1,079,073 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,559,437 | 7,392,767 |
Office equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 362,084 | 346,649 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 310,901 | $ 329,297 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Assets under capital leases | $ 62.7 | $ 50 | |
Accumulated amortization on assets under capital leases | 20.6 | 18.9 | |
Depreciation expense | $ 470.4 | 495.3 | $ 475.8 |
Ag | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charge | $ 12.2 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2020 | Sep. 01, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 172,404 | $ 172,404 | |||
Customer lists, trademarks and other intangible assets | 65,025 | 71,206 | |||
Notes receivable | 109,145 | 189,045 | |||
Long-term derivative assets | 21,157 | 36,408 | |||
Prepaid pension and other benefits | 106,209 | 73,100 | |||
Capitalized major maintenance | 228,511 | 286,890 | $ 130,780 | $ 105,006 | |
Cash value life insurance | 130,673 | 122,792 | |||
Operating Lease, Right-of-Use Asset | 257,834 | $ 268,400 | |||
Other | 48,471 | 60,350 | |||
Other assets | 1,139,429 | 1,012,195 | |||
Change in Goodwill | 0 | ||||
Customer lists, trademarks and other intangible assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Customer lists, trademarks and other intangible assets | $ 65,025 | $ 71,206 |
Other Assets - Schedule of Good
Other Assets - Schedule of Goodwill (Details) - USD ($) | Mar. 01, 2019 | Jul. 31, 2018 | Aug. 31, 2019 |
Goodwill [Roll Forward] | |||
Impairment | $ 0 | ||
Balances, end of period | $ 172,404,000 | ||
Corporate and Other | |||
Goodwill [Line Items] | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | ||
Goodwill [Roll Forward] | |||
Balances, beginning of period | 10,574,000 | ||
Balances, end of period | 10,574,000 | ||
Operating Segments | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | 61,358,000 | ||
Goodwill [Roll Forward] | |||
Balances, beginning of period | 138,464,000 | ||
Impairment | (27,418,000) | ||
Balances, end of period | 172,404,000 | ||
Energy | |||
Goodwill [Line Items] | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | ||
Goodwill [Roll Forward] | |||
Balances, beginning of period | 552,000 | ||
Balances, end of period | 552,000 | ||
Ag | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | 61,358,000 | ||
Goodwill [Roll Forward] | |||
Balances, beginning of period | 127,338,000 | ||
Impairment | (27,418,000) | ||
Balances, end of period | $ 161,278,000 | ||
West Central [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | $ 61,358,000 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) | Jul. 31, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Mar. 01, 2019 |
Goodwill [Line Items] | |||||
Remainingownershipacquired | 75.00% | ||||
Goodwill | $ 172,404,000 | $ 172,404,000 | |||
Goodwill impairment, result of annual impairment analysis | $ 0 | ||||
Goodwill impairment charge | $ 0 | ||||
Amortization of intangible assets | 7,300,000 | 5,300,000 | $ 3,400,000 | ||
Ag | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | 61,358,000 | ||||
Goodwill | 161,278,000 | $ 127,338,000 | |||
Goodwill impairment charge | $ 27,418,000 | ||||
Nitrogen Production | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 0 | ||||
Minimum | Other Intangible Assets | |||||
Goodwill [Line Items] | |||||
Intangible asset useful lives | 2 years | ||||
Maximum | Other Intangible Assets | |||||
Goodwill [Line Items] | |||||
Intangible asset useful lives | 30 years |
Other Assets - Schedule of Inta
Other Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 95,630 | $ 94,551 |
Accumulated Amortization | (30,605) | (23,345) |
Net | 65,025 | 71,206 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 84,895 | 84,815 |
Accumulated Amortization | (23,770) | (17,609) |
Net | 61,125 | 67,206 |
Trademarks and other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 10,735 | 9,736 |
Accumulated Amortization | (6,835) | (5,736) |
Net | $ 3,900 | $ 4,000 |
Other Assets - Schedule of Defi
Other Assets - Schedule of Definite Lived Intangible Assets Estimated Annual Amortization Expense (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2021 | $ 8,215 |
2022 | 7,973 |
2023 | 7,870 |
2024 | 7,660 |
2025 | 7,345 |
Thereafter | 25,866 |
Total | $ 64,929 |
Other Assets - Rollforward of C
Other Assets - Rollforward of Capitalized Maintenance Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Capitalized Maintenance Expense [Roll Forward] | |||
Balance at Beginning of Year | $ 286,890 | $ 130,780 | $ 105,006 |
Cost Deferred | 14,496 | 224,406 | 87,460 |
Amortization | (72,875) | (68,296) | (61,686) |
Balance at End of Year | $ 228,511 | $ 286,890 | $ 130,780 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt - Schedule of Notes Payable (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Short-term Debt [Line Items] | ||
Notes payable | $ 1,575,491 | $ 2,156,108 |
Line of Credit Facility, Current Borrowing Capacity | $ 2,750,000 | |
Notes Payable, Other Payables [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.96% | 3.36% |
CHS Capital notes payable | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.29% | 2.90% |
CHS Capital notes payable | CHS Capital notes payable | ||
Short-term Debt [Line Items] | ||
Notes payable | $ 812,276 | $ 825,558 |
Notes Payable, Other Payables [Member] | Recourse loan commitments | ||
Short-term Debt [Line Items] | ||
Notes payable | 133,300 | |
Short-term bank loans and notes payable current borrowing capacity | 150,000 | |
Notes Payable, Other Payables [Member] | Short-Term Notes Payable, Surplus Funds Program [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable | 134,900 | |
Revolving credit facility | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | 100,000 | |
Revolving credit facility | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable | $ 763,215 | $ 1,330,550 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 14, 2020 | Jun. 26, 2020 | Jun. 25, 2020 | Sep. 04, 2018 | |
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 116,977 | $ 167,065 | $ 149,202 | |||||
Long-term Debt, Fair Value | 1,900,000 | |||||||
Notes payable | 1,575,491 | 2,156,108 | ||||||
Long-term Debt | 1,750,947 | |||||||
Capitalized Interest | (10,900) | (9,400) | $ (6,700) | |||||
Long-term debt repaid | 25,400 | |||||||
Line of Credit Facility, Current Borrowing Capacity | 2,750,000 | |||||||
Principal Amount Outstanding of Loans Held-in-portfolio | 423,000 | |||||||
maximum availability under securitization | 500,000 | $ 500,000 | $ 700,000 | |||||
Notes Purchase Agreement | $ 375,000 | |||||||
increase to maximum availability under securitization | 600,000 | |||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100,000 | |||||||
Unsecured debt | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 0.00% | |||||||
Unsecured debt | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 10.00% | |||||||
Five-year revolving facilities | Line of credit | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, amount outstanding | $ 345,000 | 335,000 | ||||||
Debt Instrument, Term | 5 years | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 2,750,000 | |||||||
Five-year revolving facilities | Line of credit | Revolving credit facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.55% | |||||||
Uncommitted lines of credit | Line of credit | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Line of Credit, Noncurrent | $ 318,400 | |||||||
Other international subsidiaries, lines of credit | Line of credit | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, amount outstanding | 69,700 | |||||||
Repurchase Facility [Member] | Subordinated Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000 | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 150,000 | 150,000 | ||||||
Private placement, payable in equal installments beginning in 2017 through 2021 | Unsecured debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | $ 20,000 | 40,000 | ||||||
Private placement, payable in equal installments beginning in 2017 through 2021 | Notes Payable, Other Payables [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.00% | |||||||
Debt Instrument, Face Amount | $ 100,000 | |||||||
Other notes and contracts | Secured debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 34,709 | 18,601 | ||||||
Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | 763,215 | $ 1,330,550 | ||||||
Recourse loan commitments | Notes Payable, Other Payables [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term bank loans and notes payable current borrowing capacity | 150,000 | |||||||
Notes payable | $ 133,300 | |||||||
Interest rate | 1.45% | |||||||
Short-Term Notes Payable, Surplus Funds Program [Member] | Notes Payable, Other Payables [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 134,900 | |||||||
Short-Term Notes Payable, Surplus Funds Program [Member] | Notes Payable, Other Payables [Member] | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 0.35% | |||||||
Short-Term Notes Payable, Surplus Funds Program [Member] | Notes Payable, Other Payables [Member] | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 1.40% | |||||||
Committed Term Loans, September 2015 [Member] | Secured debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Term | 10 years | |||||||
Debt Instrument, Face Amount | $ 600,000 | |||||||
Long-term Debt | $ 236,000 |
Notes Payable and Long-Term D_5
Notes Payable and Long-Term Debt - Schedule of Primary Lines of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 2,750,000 | |
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | 100,000 | |
Line of credit | Five-year revolving facilities | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | 2,750,000 | |
Long-term Line of Credit | 345,000 | $ 335,000 |
Line of credit | Bilateral, uncommitted revolving facilities [Member] | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | 300,000 | 630,000 |
Short-term Debt, Fair Value | $ 0 | $ 430,000 |
Line of credit | Maximum | Five-year revolving facilities | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.55% |
Notes Payable and Long-Term D_6
Notes Payable and Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 | Aug. 31, 2020 | Aug. 31, 2019 |
Debt Instrument [Line Items] | ||||
Notes payable | $ 1,575,491 | $ 2,156,108 | ||
Total long-term debt | 1,750,947 | |||
Debt Issuance Costs, Net | (4,771) | (3,569) | ||
Capital Lease Obligations | 31,460 | 28,239 | ||
Long-term Debt, Fair Value | 1,791,123 | |||
Less current portion | 189,287 | 39,210 | ||
Long-term portion | $ 1,601,836 | 1,749,901 | ||
Unsecured debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.00% | |||
Unsecured debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 10.00% | |||
Committed Term Loans, September 2015 [Member] | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 600,000 | |||
Total long-term debt | 236,000 | |||
Debt Instrument, Term | 10 years | |||
Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Notes payable | 763,215 | 1,330,550 | ||
Private placement, payable in equal installments beginning in 2017 through 2021 | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 20,000 | 40,000 | ||
Private placement, payable in equal installments beginning in 2017 through 2021 | Notes Payable, Other Payables [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 100,000 | |||
Interest rate | 4.00% | |||
Private placement, payable in its entirety in 2021 | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 160,000 | |||
Total long-term debt | $ 162,090 | 161,978 | ||
Interest rate | 4.52% | |||
Private placement, payable in its entirety in 2023 | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 130,000 | |||
Total long-term debt | $ 137,623 | 136,086 | ||
Interest rate | 4.67% | |||
Private placement, payable in 2023 152k [Member] [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 152,000 | |||
Total long-term debt | $ 152,000 | 152,000 | ||
Interest rate | 4.39% | |||
Private placement, payable in 2025 80k [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 80,000 | |||
Total long-term debt | $ 80,000 | 80,000 | ||
Interest rate | 3.85% | |||
Private placement, payable in 2025 100k [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 100,000 | |||
Total long-term debt | $ 100,000 | 100,000 | ||
Interest rate | 3.80% | |||
Private placement, payable in 2025 150k [Member] [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 150,000 | |||
Total long-term debt | $ 154,012 | 151,776 | ||
Interest rate | 4.58% | |||
Private placement, payable in its entirety in 2026 | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 80,000 | |||
Total long-term debt | $ 80,000 | 80,000 | ||
Interest rate | 4.82% | |||
Private placement, payable in its entirety in 2027 [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 58,000 | |||
Total long-term debt | $ 58,000 | 58,000 | ||
Interest rate | 4.69% | |||
Private placement, payable in its entirety in 2028 [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 95,000 | |||
Total long-term debt | $ 95,000 | 95,000 | ||
Interest rate | 4.74% | |||
Private placement, payable in its entirety in 2031 [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 100,000 | |||
Total long-term debt | $ 100,000 | 100,000 | ||
Interest rate | 4.89% | |||
Private placement, payable in its entirety 2033 [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 100,000 | |||
Total long-term debt | $ 100,000 | 100,000 | ||
Interest rate | 4.71% | |||
Private placement, payable in its entirety in 2036 [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 125,000 | |||
Total long-term debt | $ 125,000 | 125,000 | ||
Interest rate | 5.40% | |||
Private Placement [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 1,363,725 | 1,379,840 | ||
Term loans, 430K payable in 2025 [Member] | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 366,000 | 366,000 | ||
Bank financing [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 366,000 | 366,000 | ||
Other notes and contracts | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 34,709 | 18,601 | ||
Committed Term Loans, September 2016 [Member] | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 600,000 | |||
Total long-term debt | $ 130,000 | |||
Debt instrument, amount available to be paid and re-advanced | $ 300,000 | |||
us-gaap_DebtInstrumentName | us-gaap_LongtermDebtType | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Fair Value | 1,789,111 | |||
Less current portion | $ 39,210 | |||
Unsecured term loans | Unsecured debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.25% |
Notes Payable and Long-Term D_7
Notes Payable and Long-Term Debt - Schedule of Minimum Future Payments (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 181,628 |
2022 | 30,828 |
2023 | 282,828 |
2024 | 780 |
2025 | 696,780 |
Thereafter | 558,103 |
Total | $ 1,750,947 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
Other Liabilities Disclosure [Abstract] | |||
Customer Margin Deposits And Credit Balances | $ 149,539 | $ 143,049 | |
CustomerAdvancepayments | 300,100 | 336,645 | |
Derivative Liability, Current | 416,204 | 241,957 | |
Other current liabilities | 63,000 | 180,000 | $ 153,941 |
Other Liabilities, Current | $ 928,843 | $ 901,651 |
Income Taxes - Provision for (B
Income Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Current: | |||
Federal | $ 4,519 | $ 211 | $ 15,576 |
State | (2,231) | 3,815 | 7,041 |
Foreign | 2,748 | (2,630) | 20,268 |
Current Total | 5,036 | 1,396 | 42,885 |
Deferred: | |||
Federal | (36,231) | (4,923) | (146,780) |
State | (5,263) | (8,491) | (127) |
Foreign | (273) | (438) | (54) |
Deferred Total | (41,767) | (13,852) | (146,961) |
Total | $ (36,731) | $ (12,456) | $ (104,076) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax benefit | $ (36,731) | $ (12,456) | $ (104,076) |
Deferred Tax Liabilities, Net | 139,343 | 142,900 | |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 324,400 | 825,700 | 717,400 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 62,500 | $ (3,100) | $ (46,200) |
Statutory federal income tax rate | 21.00% | 21.00% | 25.70% |
Operating Loss Carryforwards | $ 576,600 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 366,900 | ||
Amount of unrecognized tax benefits that would benefit effective tax rate | 111,300 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 1,000 | $ 1,700 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 1,000 | 2,900 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | ||
State tax credit | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 125,500 | ||
Low sulfer diesel credits | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 59,100 | ||
NCRA | State tax credit | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | $ 125,500 | $ 123,300 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Deferred tax assets: | ||
Accrued expenses | $ 51,560 | $ 62,245 |
Postretirement health care and deferred compensation | 42,898 | 42,747 |
Tax credit carryforwards | 123,193 | 152,347 |
Loss carryforwards | 116,741 | 136,435 |
Nonqualified equity | 344,924 | 290,447 |
Deferred tax asset lease obligation | 64,140 | |
Other | 85,856 | 97,071 |
Deferred tax assets valuation reserve | (219,891) | (246,344) |
Total deferred tax assets | 609,421 | 534,948 |
Deferred tax liabilities: | ||
Pension | 17,131 | 11,237 |
Investments | 95,916 | 99,838 |
Deferred Tax Liabilities, Deferred Expense, Other Capitalized Costs | 91 | 4,679 |
Property, plant and equipment | 556,160 | 560,334 |
Deferred tax liability right of use asset | 64,140 | |
Other | 15,326 | 1,760 |
Total deferred tax liabilities | 748,764 | 677,848 |
Net deferred tax liabilities | $ 139,343 | $ 142,900 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Tax Rates to the Effective Tax Rates (Details) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 25.70% |
State and local income taxes, net of federal income tax benefit | (1.80%) | (0.70%) | 0.70% |
Patronage earnings | (13.10%) | (14.30%) | (13.60%) |
Domestic production activities deduction | (19.00%) | (9.90%) | (8.40%) |
Export activities at rates other than the U.S. statutory rate | 1.80% | (2.10%) | 5.70% |
U.S. tax reform | 0.00% | 0.00% | (23.20%) |
Intercompany transfer of business assets | (1.60%) | 0.00% | (6.10%) |
Increase in unrecognized tax benefits | 4.20% | 0.20% | 6.80% |
Valuation allowance | (1.00%) | 2.60% | (3.00%) |
Tax credits | (0.20%) | (0.40%) | (0.70%) |
Other | (0.20%) | 1.30% | (0.80%) |
Effective tax rate | (9.50%) | (1.50%) | (15.50%) |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 101,128 | $ 91,135 | $ 37,830 |
Additions attributable to current year tax positions | 14,410 | 14,162 | 3,640 |
Additions attributable to prior year tax positions | 6,128 | 0 | 49,665 |
Reductions attributable to prior year tax positions | (2,516) | (4,169) | 0 |
Balance at end of period | $ 119,150 | $ 101,128 | $ 91,135 |
Equities - Narrative (Details)
Equities - Narrative (Details) | 12 Months Ended | |||
Aug. 31, 2020USD ($)pools | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Class of Stock [Line Items] | ||||
Estimated patronage refunds | $ (30,000,000) | $ (90,000,000) | $ (75,000,000) | |
Cash patronage dividends payable | $ (90,115,000) | (75,776,000) | 0 | |
Patronage source earnings, percentage allocated to reserves | 10.00% | |||
Capital equity certificates, number of pools | pools | 2 | |||
Equity redemptions, age | 70 years | |||
Redemptions of equities | $ 96,438,000 | 85,540,000 | 8,847,000 | |
Preferred stock dividends paid | (168,668,000) | (168,668,000) | (168,668,000) | |
Reclassifications | ||||
Estimated Cash Patronage Dividends Payable | 30,000,000 | |||
futurePaymentsForRepurchaseOfOtherEquity | (33,000,000) | |||
Class B, Series 1 Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Redemption Amount | 536,500,000 | |||
Accumulated Other Comprehensive Loss | ||||
Class of Stock [Line Items] | ||||
Reclassifications | 0 | (4,706,000) | (26,992,000) | |
Capital Reserves | ||||
Class of Stock [Line Items] | ||||
Estimated patronage refunds | 241,970,000 | 562,398,000 | 420,330,000 | |
Nonqualified Equity Certificates | ||||
Class of Stock [Line Items] | ||||
Estimated patronage refunds | 211,970,000 | 472,398,000 | 345,330,000 | |
Qualified Equity Certificates | ||||
Class of Stock [Line Items] | ||||
Estimated patronage refunds | $ 0 | |||
Patronage refunds and capital stock | ||||
Class of Stock [Line Items] | ||||
PatronageRefunds | 564,500,000 | 428,800,000 | $ 128,800,000 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Class of Stock [Line Items] | ||||
Reclassifications | $ 983,000 | $ (1,468,000) |
Equities - Summary of Outstandi
Equities - Summary of Outstanding Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Class of Stock [Line Items] | ||
Preferred Stock, Liquidation Preference Per Share | $ 25 | |
8% Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 2 | $ 2 |
Preferred Stock, Shares Outstanding | 12,272,003 | |
Preferred Stock, Redemption Amount | $ 306.8 | |
Proceeds from issuance of preferred stock, net of issuance costs | $ 311.2 | |
Preferred Stock, Dividend Rate, Percentage | 8.00% | |
Class B, Series 1 Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 1.97 | 1.97 |
Preferred Stock, Shares Outstanding | 21,459,066 | |
Preferred Stock, Redemption Amount | $ 536.5 | |
Proceeds from issuance of preferred stock, net of issuance costs | $ 569.3 | |
Preferred Stock, Dividend Rate, Percentage | 7.875% | |
Class B, Series 2 Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 1.78 | 1.78 |
Preferred Stock, Shares Outstanding | 16,800,000 | |
Preferred Stock, Redemption Amount | $ 420 | |
Proceeds from issuance of preferred stock, net of issuance costs | $ 406.2 | |
Preferred Stock, Dividend Rate, Percentage | 7.10% | |
Class B, Series 2 Preferred Stock [Member] | Maximum | ||
Class of Stock [Line Items] | ||
Preferred Stock, Basis Spread on Dividends, Percent | 8.00% | |
Class B, Series 2 Preferred Stock [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Basis Spread on Dividends, Percent | 4.298% | |
Class B, Series 3 Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 1.69 | 1.69 |
Preferred Stock, Shares Outstanding | 19,700,000 | |
Preferred Stock, Redemption Amount | $ 492.5 | |
Proceeds from issuance of preferred stock, net of issuance costs | $ 476.7 | |
Preferred Stock, Dividend Rate, Percentage | 6.75% | |
Class B, Series 3 Preferred Stock [Member] | Maximum | ||
Class of Stock [Line Items] | ||
Preferred Stock, Basis Spread on Dividends, Percent | 8.00% | |
Class B, Series 3 Preferred Stock [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Basis Spread on Dividends, Percent | 4.155% | |
Class B, Series 4 Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 1.88 | $ 1.88 |
Preferred Stock, Shares Outstanding | 20,700,000 | |
Preferred Stock, Redemption Amount | $ 517.5 | |
Proceeds from issuance of preferred stock, net of issuance costs | $ 501 | |
Preferred Stock, Dividend Rate, Percentage | 7.50% |
Equities - Accumulated Other Co
Equities - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | $ 8,617,530 | $ 8,165,028 | $ 7,705,640 |
Other comprehensive income, net of tax | (6,991) | (22,312) | 7,437 |
Reclassifications | |||
Balance | 8,819,173 | 8,617,530 | 8,165,028 |
Pension and Other Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (4,751) | (51,118) | 7,633 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 19,908 | 10,279 | 21,804 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | (172,478) | (140,335) | (132,444) |
Other Comprehensive Income (Loss), before Tax | 15,157 | (40,839) | 29,437 |
Tax effect | (2,359) | 8,280 | (9,371) |
Other comprehensive income, net of tax | 12,798 | (32,559) | 20,066 |
Reclassifications | 416 | (27,957) | |
Balance | (159,680) | (172,478) | (140,335) |
Unrealized Net Gain (Loss) on Available for Sale Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | 21,078 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 25,534 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | 0 | 8,861 | 10,041 |
Other Comprehensive Income (Loss), before Tax | 0 | 0 | (4,456) |
Tax effect | 0 | 0 | 1,308 |
Other comprehensive income, net of tax | 0 | 0 | (3,148) |
Reclassifications | (8,861) | 1,968 | |
Balance | 0 | 0 | 8,861 |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 16,430 | 37,709 | 1,031 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (22,291) | (9,843) | 1,704 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | 15,297 | (5,882) | (6,954) |
Other Comprehensive Income (Loss), before Tax | (5,861) | 27,866 | 2,735 |
Tax effect | 1,450 | (7,670) | (195) |
Other comprehensive income, net of tax | (4,411) | 20,196 | 2,540 |
Reclassifications | 983 | (1,468) | |
Balance | 10,886 | 15,297 | (5,882) |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (17,021) | (9,990) | (10,062) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | (2,042) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | (69,752) | (62,559) | (51,003) |
Other Comprehensive Income (Loss), before Tax | (17,021) | (9,990) | (12,104) |
Tax effect | 1,643 | 41 | 83 |
Other comprehensive income, net of tax | (15,378) | (9,949) | (12,021) |
Reclassifications | 2,756 | 465 | |
Balance | (85,130) | (69,752) | (62,559) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (5,342) | (23,399) | 19,680 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (2,383) | 436 | (4,068) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | (226,933) | (199,915) | (180,360) |
Other Comprehensive Income (Loss), before Tax | (7,725) | (22,963) | 15,612 |
Tax effect | 734 | 651 | (8,175) |
Other comprehensive income, net of tax | (6,991) | (22,312) | 7,437 |
Reclassifications | 0 | (4,706) | (26,992) |
Balance | $ (233,924) | $ (226,933) | $ (199,915) |
Benefit Plans - Financial Infor
Benefit Plans - Financial Information on Changes in Benefit Obligation, Plan Assets Funded and Balance Sheets Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Change in plan assets: [Abstract] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 46,400 | ||
Pension Benefits | |||
Change in plan assets: [Abstract] | |||
Fair value of plan assets at beginning of period | 909,427 | ||
Fair value of plan assets at end of period | 976,542 | $ 909,427 | |
Other Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligation at beginning of period | 31,098 | 29,790 | |
Service cost | 1,050 | 1,053 | $ 943 |
Interest cost | 747 | 1,094 | 908 |
Actuarial (gain) loss | (2,286) | (2,596) | |
Assumption change | 1,275 | 3,398 | |
Plan Amendments | 0 | 0 | |
Settlements | 0 | 0 | |
Benefits paid | (1,568) | (1,641) | |
Projected benefit obligation at end of period | 30,316 | 31,098 | 29,790 |
Change in plan assets: [Abstract] | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Actual gain (loss) on plan assets | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 1,568 | 1,641 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |
Benefits Paid | (1,568) | (1,641) | |
Fair value of plan assets at end of period | 0 | 0 | 0 |
Funded Status of Plan | (30,316) | (31,098) | |
ASSETS | |||
Non-current assets | 0 | 0 | |
Liabilities [Abstract] | |||
Current liabilities | (2,090) | (2,040) | |
Non-current liabilities | (28,226) | (29,058) | |
Ending balance | (30,316) | (31,098) | |
Amounts recognized in accumulated other comprehensive loss (pretax): [Abstract] | |||
Prior service cost (credit) | (2,715) | (3,160) | |
Net (gain) loss | (15,064) | (15,445) | |
Ending balance | (17,779) | (18,605) | |
Qualified Pension Benefits | Pension Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligation at beginning of period | 876,696 | 767,184 | |
Service cost | 42,151 | 38,592 | 39,677 |
Interest cost | 21,722 | 28,396 | 24,007 |
Actuarial (gain) loss | 6,265 | (9,606) | |
Assumption change | 40,694 | 102,441 | |
Plan Amendments | 0 | 18 | |
Settlements | 0 | 615 | |
Benefits paid | (69,526) | (49,714) | |
Projected benefit obligation at end of period | 918,002 | 876,696 | 767,184 |
Change in plan assets: [Abstract] | |||
Fair value of plan assets at beginning of period | 909,427 | 829,616 | |
Actual gain (loss) on plan assets | 90,241 | 90,139 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 46,400 | 40,001 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | (615) | |
Benefits Paid | (69,526) | (49,714) | |
Fair value of plan assets at end of period | 976,542 | 909,427 | 829,616 |
Funded Status of Plan | 58,540 | 32,731 | |
ASSETS | |||
Non-current assets | 58,540 | 32,731 | |
Liabilities [Abstract] | |||
Current liabilities | 0 | 0 | |
Non-current liabilities | 0 | 0 | |
Ending balance | 58,540 | 32,731 | |
Amounts recognized in accumulated other comprehensive loss (pretax): [Abstract] | |||
Prior service cost (credit) | 938 | 1,117 | |
Net (gain) loss | 225,983 | 244,164 | |
Ending balance | 226,921 | 245,281 | |
Nonqualified Pension Benefits | Pension Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligation at beginning of period | 19,047 | 20,755 | |
Service cost | 405 | 311 | 548 |
Interest cost | 429 | 747 | 711 |
Actuarial (gain) loss | 1,382 | 76 | |
Assumption change | 775 | 1,841 | |
Plan Amendments | 0 | 0 | |
Settlements | (2,130) | (3,975) | |
Benefits paid | (725) | (708) | |
Projected benefit obligation at end of period | 19,183 | 19,047 | 20,755 |
Change in plan assets: [Abstract] | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Actual gain (loss) on plan assets | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2,855 | 4,683 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (2,130) | (3,975) | |
Benefits Paid | (725) | (708) | |
Fair value of plan assets at end of period | 0 | 0 | $ 0 |
Funded Status of Plan | (19,183) | (19,047) | |
ASSETS | |||
Non-current assets | 0 | 0 | |
Liabilities [Abstract] | |||
Current liabilities | (1,660) | (1,580) | |
Non-current liabilities | (17,523) | (17,467) | |
Ending balance | (19,183) | (19,047) | |
Amounts recognized in accumulated other comprehensive loss (pretax): [Abstract] | |||
Prior service cost (credit) | (502) | (616) | |
Net (gain) loss | 3,813 | 2,151 | |
Ending balance | $ 3,311 | $ 1,535 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020USD ($)Employers | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 46,400 | ||
Defined benefit plan, health care benefits annual rate of increase in the per capita cost | 7.10% | ||
Defined benefit plan, health care benefits, decrease in the per capita cost trend rate | 4.50% | ||
Defined contribution plan, contributions by employer | $ 34,500 | $ 31,000 | $ 24,700 |
Pension protection act, percentage of employers that are rural cooperatives or cooperative organizations owned by agricultural producers, criteria | 85.00% | ||
Separate Account, Liability, Surrender and Withdrawal | $ 46,000 | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 871,600 | 833,200 | |
Defined benefit plan, expected future benefit payments, next twelve months | 75,700 | ||
Non-Qualified Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 18,200 | 16,900 | |
Defined benefit plan, expected future benefit payments, next twelve months | 1,660 | ||
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 1,568 | $ 1,641 | |
Defined benefit plan, expected future benefit payments, next twelve months | 2,090 | ||
Pension Plans And Postretirement Plans, Defined Benefit, Non-Qualified [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, expected future benefit payments, next twelve months | $ 3,800 | ||
Co-op Retirement Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employers contributing to Co-op Retirement Plan (in number of employers) | Employers | 400 | ||
Maximum | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 65.00% | ||
Maximum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 55.00% | ||
Maximum | Co-op Retirement Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions as percent of total contributions of all contributing employers | 5.00% | ||
Minimum | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 45.00% | ||
Minimum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 35.00% | ||
Minimum | Co-op Retirement Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, funded percentage | 80.00% |
Benefit Plans - Information for
Benefit Plans - Information for the Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 19,183 | $ 19,047 |
Accumulated benefit obligation | $ 18,172 | $ 16,907 |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Other Benefits | |||
Component of net periodic benefit costs: [Abstract] | |||
Service costs | $ 1,050 | $ 1,053 | $ 943 |
Interest costs | 747 | 1,094 | 908 |
Expected return on assets | 0 | 0 | 0 |
Settlement of retiree obligations | 0 | 0 | 0 |
Prior service cost (credit) amortization | (445) | (556) | (565) |
Actuarial loss (gain) amortization | (1,392) | (1,627) | (1,224) |
Periodic benefit costs, net | $ (40) | $ (36) | $ 62 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.89% | 4.08% | 3.56% |
Weighted-average assumptions to determine the net periodic benefit cost: [Abstract] | |||
Discount rate | 2.43% | 2.89% | 4.13% |
Qualified Pension Benefits | Pension Benefits | |||
Component of net periodic benefit costs: [Abstract] | |||
Service costs | $ 42,151 | $ 38,592 | $ 39,677 |
Interest costs | 21,722 | 28,396 | 24,007 |
Expected return on assets | (46,684) | (44,968) | (48,159) |
Settlement of retiree obligations | 0 | 51 | 0 |
Prior service cost (credit) amortization | 178 | 190 | 1,437 |
Actuarial loss (gain) amortization | 21,583 | 12,348 | 18,073 |
Periodic benefit costs, net | $ 38,950 | $ 34,609 | $ 35,035 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.06% | 4.23% | 3.80% |
Expected return on plan assets | 5.50% | 5.50% | 5.75% |
Rate of compensation increase | 5.28% | 5.14% | 5.08% |
Weighted-average assumptions to determine the net periodic benefit cost: [Abstract] | |||
Discount rate | 2.67% | 3.06% | 4.23% |
Rate of compensation increase | 4.99% | 5.28% | 5.14% |
Nonqualified Pension Benefits | Pension Benefits | |||
Component of net periodic benefit costs: [Abstract] | |||
Service costs | $ 405 | $ 311 | $ 548 |
Interest costs | 429 | 747 | 711 |
Expected return on assets | 0 | 0 | 0 |
Settlement of retiree obligations | 0 | 191 | (112) |
Prior service cost (credit) amortization | (114) | (75) | 30 |
Actuarial loss (gain) amortization | 98 | 2 | 61 |
Periodic benefit costs, net | $ 818 | $ 1,176 | $ 1,238 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.70% | 4.09% | 3.53% |
Rate of compensation increase | 5.28% | 5.14% | 5.08% |
Weighted-average assumptions to determine the net periodic benefit cost: [Abstract] | |||
Discount rate | 2.15% | 2.70% | 4.09% |
Rate of compensation increase | 4.99% | 5.28% | 5.14% |
Benefit Plans - Components of_2
Benefit Plans - Components of Net Periodic Benefit Costa and Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Pension Benefits | Qualified Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Prior service cost | $ 0 | $ 18 | $ 244 |
Net actuarial loss (gain) | 3,401 | 47,556 | (8,553) |
Amortization of actuarial (gain) loss | 21,583 | 12,307 | 18,073 |
Amortization of prior service (credit) costs | (178) | (190) | (1,437) |
Settlement of retiree obligations | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) | (18,360) | 35,077 | (27,819) |
Pension Benefits | Nonqualified Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Prior service cost | 0 | 0 | 0 |
Net actuarial loss (gain) | 2,157 | 1,917 | (578) |
Amortization of actuarial (gain) loss | 98 | 2 | 61 |
Amortization of prior service (credit) costs | 114 | 75 | (30) |
Settlement of retiree obligations | (397) | (191) | 112 |
Total recognized in other comprehensive loss (income) | 1,776 | 1,799 | (557) |
Other Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Prior service cost | 0 | 0 | 0 |
Net actuarial loss (gain) | (1,011) | 801 | (2,234) |
Amortization of actuarial (gain) loss | 1,392 | 1,627 | 1,224 |
Amortization of prior service (credit) costs | 445 | 556 | 565 |
Settlement of retiree obligations | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) | $ 826 | $ 2,984 | $ (445) |
Benefit Plans - Schedule of Amo
Benefit Plans - Schedule of Amortization from Other Accumulated Comprehensive Income into Net Period Benefit Costs (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, health care benefits annual rate of increase in the per capita cost | 7.10% |
Defined benefit plan, health care benefits, decrease in the per capita cost trend rate | 4.50% |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2018 Amortization of prior service cost (credit) | $ 178 |
Fiscal 2018 Amortization of net actuarial (gain) loss | 21,790 |
Non-Qualified Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2018 Amortization of prior service cost (credit) | (114) |
Fiscal 2018 Amortization of net actuarial (gain) loss | 212 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2018 Amortization of prior service cost (credit) | (445) |
Fiscal 2018 Amortization of net actuarial (gain) loss | $ (1,365) |
Benefit Plans - Schedule of the
Benefit Plans - Schedule of the Effect a Percentage Point Change in the Assumed Health Care Cost Trend Rates (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Retirement Benefits [Abstract] | |
Effect on total of service and interest cost components (1% increase) | $ 200 |
Effect on total of service and interest cost components (1% decrease) | (170) |
Effect on postretirement benefit obligation (1% increase) | 2,100 |
Effect on postretirement benefit obligation (1% decrease) | $ (1,800) |
Benefit Plans - Expected Future
Benefit Plans - Expected Future Retiree Benefit Payments (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 75,700 |
2022 | 65,900 |
2023 | 63,500 |
2024 | 64,700 |
2025 | 65,300 |
2026-2030 | 326,700 |
Non-Qualified Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 1,660 |
2022 | 1,840 |
2023 | 1,840 |
2024 | 1,620 |
2025 | 1,820 |
2026-2030 | 8,010 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 2,090 |
2022 | 2,280 |
2023 | 2,470 |
2024 | 2,450 |
2025 | 2,450 |
2026-2030 | $ 9,790 |
Fixed Income Securities | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation percentage | 45.00% |
Fixed Income Securities | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation percentage | 65.00% |
Equity Securities | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation percentage | 35.00% |
Equity Securities | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation percentage | 55.00% |
Benefit Plans - Schedule of Pen
Benefit Plans - Schedule of Pension Plans' Fair Value Measurements (Details) - Pension Benefits - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | $ 976,542 | $ 909,427 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 57,801 | 7,938 |
Equity Securities: Common/collective trust [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 219,050 | 209,860 |
Fixed Income Securities: Common/collective trust [Member] [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 603,250 | 574,296 |
Partnership and joint venture interests | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 94,400 | 101,641 |
Other assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 2,041 | 15,692 |
Fair Value, Inputs, Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Equity Securities: Common/collective trust [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Fixed Income Securities: Common/collective trust [Member] [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Partnership and joint venture interests | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Other assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 57,801 | 7,938 |
Fair Value, Inputs, Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 57,801 | 7,938 |
Fair Value, Inputs, Level 1 | Equity Securities: Common/collective trust [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Fixed Income Securities: Common/collective trust [Member] [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Partnership and joint venture interests | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Other assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Equity Securities: Common/collective trust [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Fixed Income Securities: Common/collective trust [Member] [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Partnership and joint venture interests | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Other assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans assets, fair value | $ 0 | $ 0 |
Benefit Plans - Multiemployer C
Benefit Plans - Multiemployer Co-op Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Co-op Retirement Plan | Pension Benefits | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Employer Contribution, Cost | $ 1,455 | $ 1,712 | $ 1,662 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020USD ($)segment | Aug. 31, 2019USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Number of reportable segments | segment | 3 | |
Revenues | $ 28,406,365 | $ 31,900,453 |
Ag | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 22,926,099 | 24,720,072 |
Corporate and Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 49,132 | $ 61,305 |
CF Industries Nitrogen, LLC | Nitrogen Production | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 10.00% | |
Ventura Foods | Corporate and Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Ardent Mills, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 12.00% | |
Ardent Mills, LLC | Corporate and Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 12.00% |
Segment Reporting - Segment Inf
Segment Reporting - Segment Information (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues, including intersegment revenues | $ 28,406,365,000 | $ 31,900,453,000 | |
Intersegment Revenue | 0 | 0 | $ 0 |
RevenueFromContractWithCustomerNetofIntersegmentRevenueExcludingAssessedTax | 28,406,365,000 | 31,900,453,000 | 32,683,347,000 |
Revenues | 28,406,365,000 | 31,900,453,000 | 32,683,347,000 |
Operating earnings (loss) | 277,265,000 | 659,602,000 | 452,364,000 |
Gain/recovery on disposal of business | (1,450,000) | (3,886,000) | (131,816,000) |
Interest expense | 116,977,000 | 167,065,000 | 149,202,000 |
Other income | (38,425,000) | (82,423,000) | (82,737,000) |
Equity income from investments | (186,715,000) | (236,755,000) | (153,515,000) |
Income before income taxes | 386,878,000 | 815,601,000 | 671,230,000 |
Capital expenditures | 418,359,000 | 443,216,000 | 355,412,000 |
Depreciation and amortization, including amortization of deferred major maintenance | 477,375,000 | 473,211,000 | 478,050,000 |
Total assets | 15,993,947,000 | 16,447,494,000 | |
Nitrogen Production | |||
Segment Reporting Information [Line Items] | |||
RevenueFromContractWithCustomerNetofIntersegmentRevenueExcludingAssessedTax | 0 | 0 | 0 |
Ag | |||
Segment Reporting Information [Line Items] | |||
Revenues, including intersegment revenues | 22,926,099,000 | 24,720,072,000 | |
RevenueFromContractWithCustomerNetofIntersegmentRevenueExcludingAssessedTax | 22,926,099,000 | 24,720,072,000 | 25,037,481,000 |
Gain/recovery on disposal of business | (7,707,000) | ||
Energy | |||
Segment Reporting Information [Line Items] | |||
Revenues, including intersegment revenues | 5,431,134,000 | 7,119,076,000 | |
RevenueFromContractWithCustomerNetofIntersegmentRevenueExcludingAssessedTax | 5,431,134,000 | 7,119,076,000 | 7,589,119,000 |
Gain/recovery on disposal of business | (65,862,000) | ||
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, including intersegment revenues | 49,132,000 | 61,305,000 | |
Gain/recovery on disposal of business | (58,247,000) | ||
Reconciling Amounts | |||
Segment Reporting Information [Line Items] | |||
Gain/recovery on disposal of business | 0 | ||
Operating Segments | Nitrogen Production | |||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | 0 | 0 | 0 |
Revenues | 0 | 0 | 0 |
Operating earnings (loss) | (33,497,000) | (35,046,000) | (20,619,000) |
Gain/recovery on disposal of business | 0 | 0 | 0 |
Interest expense | 45,255,000 | 55,226,000 | 50,499,000 |
Other income | (2,635,000) | (2,769,000) | (3,061,000) |
Equity income from investments | (127,954,000) | (160,373,000) | (106,895,000) |
Income before income taxes | 51,837,000 | 72,870,000 | 38,838,000 |
Capital expenditures | 0 | 0 | 0 |
Depreciation and amortization, including amortization of deferred major maintenance | 0 | 0 | 0 |
Total assets | 2,681,616,000 | 2,730,306,000 | |
Operating Segments | Ag | |||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | (14,613,000) | (16,353,000) | (14,914,000) |
Revenues | 22,940,712,000 | 24,736,425,000 | 25,052,395,000 |
Operating earnings (loss) | 82,543,000 | 65,181,000 | 93,728,000 |
Gain/recovery on disposal of business | (211,000) | (3,886,000) | |
Interest expense | 71,682,000 | 101,386,000 | 94,256,000 |
Other income | (35,349,000) | (70,888,000) | (68,471,000) |
Equity income from investments | (7,303,000) | (4,447,000) | 1,392,000 |
Income before income taxes | 53,724,000 | 43,016,000 | 74,258,000 |
Capital expenditures | 158,903,000 | 110,197,000 | 77,962,000 |
Depreciation and amortization, including amortization of deferred major maintenance | 196,510,000 | 208,294,000 | 218,716,000 |
Total assets | 6,325,857,000 | 6,415,580,000 | |
Operating Segments | Energy | |||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | (389,020,000) | (462,374,000) | (479,598,000) |
Revenues | 5,820,154,000 | 7,581,450,000 | 8,068,717,000 |
Operating earnings (loss) | 219,861,000 | 615,662,000 | 388,112,000 |
Gain/recovery on disposal of business | 0 | 0 | |
Interest expense | 308,000 | 5,719,000 | 14,627,000 |
Other income | (3,005,000) | (5,548,000) | (9,698,000) |
Equity income from investments | (2,759,000) | (2,697,000) | (3,063,000) |
Income before income taxes | 225,317,000 | 618,188,000 | 452,108,000 |
Capital expenditures | 175,169,000 | 268,877,000 | 248,207,000 |
Depreciation and amortization, including amortization of deferred major maintenance | 245,983,000 | 233,624,000 | 230,230,000 |
Total assets | 4,447,526,000 | 4,401,793,000 | |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | (6,435,000) | (7,405,000) | (7,769,000) |
RevenueFromContractWithCustomerNetofIntersegmentRevenueExcludingAssessedTax | 49,132,000 | 61,305,000 | 56,747,000 |
Revenues | 55,567,000 | 68,710,000 | 64,516,000 |
Operating earnings (loss) | 8,358,000 | 13,805,000 | (8,857,000) |
Gain/recovery on disposal of business | (1,239,000) | 0 | |
Interest expense | 11,806,000 | 11,684,000 | (7,712,000) |
Other income | (9,510,000) | (10,168,000) | (3,975,000) |
Equity income from investments | (48,699,000) | (69,238,000) | (44,949,000) |
Income before income taxes | 56,000,000 | 81,527,000 | 106,026,000 |
Capital expenditures | 84,287,000 | 64,142,000 | 29,243,000 |
Depreciation and amortization, including amortization of deferred major maintenance | 34,882,000 | 31,293,000 | 29,104,000 |
Total assets | 2,538,948,000 | 2,899,815,000 | |
Reconciling Amounts | |||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | 410,068,000 | 486,132,000 | 502,281,000 |
RevenueFromContractWithCustomerNetofIntersegmentRevenueExcludingAssessedTax | 0 | 0 | 0 |
Revenues | (410,068,000) | (486,132,000) | (502,281,000) |
Operating earnings (loss) | 0 | 0 | 0 |
Gain/recovery on disposal of business | 0 | 0 | |
Interest expense | (12,074,000) | (6,950,000) | (2,468,000) |
Other income | 12,074,000 | 6,950,000 | 2,468,000 |
Equity income from investments | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Depreciation and amortization, including amortization of deferred major maintenance | 0 | 0 | $ 0 |
Total assets | $ 0 | $ 0 |
Segment Reporting - Sales By Ge
Segment Reporting - Sales By Geographic Regions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 28,406,365 | $ 31,900,453 | $ 32,683,347 |
Sales | 28,406,365 | 31,900,453 | |
srt_SegmentGeographicalDomain [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 28,406,365 | 31,900,453 | 32,683,347 |
Asia Pacific (APAC) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 712,840 | 1,081,692 | 1,101,792 |
North America (a) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 25,360,077 | 27,896,269 | 29,475,724 |
South America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,559,380 | 2,027,020 | 1,569,330 |
Europe, Middle East and Africa (EMEA) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 774,068 | $ 895,472 | $ 536,501 |
Segment Reporting - Long lived
Segment Reporting - Long lived assets by geography (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
International | ||
Long-lived assets | $ 65,134 | $ 79,846 |
srt_SegmentGeographicalDomain [Member] | ||
Long-lived assets | 5,186,449 | 5,375,598 |
United States | ||
Long-lived assets | $ 5,121,315 | $ 5,295,752 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Gross Fair Values of Derivative Assets, Derivative Liabilities, and Margin Deposits (Cash Collateral) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Reconciliation of gross and net fair value of assets and liabilities subject to offsetting arrangements [Line Items] | ||
Gross Amounts Recognized | $ 358,300 | $ 246,728 |
Derivative asset, fair value, gross amount not offset on Balance sheet | 12,365 | 65,834 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 345,935 | 180,894 |
Derivative Liability, Fair Value, Gross Liability | 412,809 | 244,019 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 956 | 4,191 |
Derivative liability, fair value, gross amount not offset on balance sheet | 14,963 | 48,755 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 396,890 | 191,073 |
Not Designated as Hedging Instrument | Commodity derivatives | ||
Reconciliation of gross and net fair value of assets and liabilities subject to offsetting arrangements [Line Items] | ||
Gross Amounts Recognized | 327,493 | 215,030 |
Derivative asset, fair value, gross amount not offset on Balance sheet | 2,980 | 58,726 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 324,513 | 156,304 |
Derivative Liability, Fair Value, Gross Liability | 343,343 | 223,410 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 956 | 4,191 |
Derivative liability, fair value, gross amount not offset on balance sheet | 5,578 | 41,647 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 336,809 | 177,572 |
Not Designated as Hedging Instrument | Foreign exchange derivatives | ||
Reconciliation of gross and net fair value of assets and liabilities subject to offsetting arrangements [Line Items] | ||
Gross Amounts Recognized | 11,809 | 10,334 |
Derivative asset, fair value, gross amount not offset on Balance sheet | 9,385 | 7,108 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 2,424 | 3,226 |
Derivative Liability, Fair Value, Gross Liability | 69,466 | 20,609 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Derivative liability, fair value, gross amount not offset on balance sheet | 9,385 | 7,108 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 60,081 | 13,501 |
Not Designated as Hedging Instrument | Embedded derivative asset | ||
Reconciliation of gross and net fair value of assets and liabilities subject to offsetting arrangements [Line Items] | ||
Gross Amounts Recognized | 18,998 | 21,364 |
Derivative asset, fair value, gross amount not offset on Balance sheet | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 18,998 | $ 21,364 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Narrative (Details) bbl in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2017USD ($) | Aug. 31, 2020USD ($)bbl | Aug. 31, 2019USD ($)bbl | Aug. 31, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Asset, Noncurrent, Excluding Fair Value Hedges | $ 21.2 | $ 26.6 | ||
Annual Payment Receivable Contingent On Investment Credit Rating | 5 | |||
Embedded Derivative, Gain on Embedded Derivative | 2.6 | 2.8 | $ 3.1 | |
Payments For Credit Rating Decrease | $ 5 | |||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 19 | |||
Derivative Liability, Noncurrent, Excluding Fair Value Hedges | 5.4 | $ 7.4 | ||
Interest rate swap gain | $ 16.4 | |||
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 9.7 | 7.7 | ||
Foreign exchange derivatives | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 1,200 | $ 894.7 | ||
Interest rate swap derivatives | Designated as Hedging Instrument | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 365 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Derivative Assets and Liabilities Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (97,022) | $ 131,091 | $ 139,967 |
Commodity derivatives | Cost of goods sold | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 89,248 | 125,323 | 162,321 |
Foreign exchange derivatives | Cost of goods sold | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (184,692) | 4,228 | (26,010) |
Foreign exchange derivatives | Marketing, general and administrative expenses | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (2,986) | (1,229) | 596 |
Interest rate derivatives | Interest expense | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (1,226) | 0 | (1) |
Embedded derivative asset | Other income | |||
Derivative [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 2,634 | $ 2,769 | $ 3,061 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities - Purchase and Sales Contracts Outstanding (Details) - Not Designated as Hedging Instrument t in Thousands, T in Thousands, MMBtu in Thousands, Bushels in Thousands, Barrels in Thousands | Aug. 31, 2020TMMBtuBarrelsBushelst | Aug. 31, 2019TtMMBtuBarrelsBushels |
Grain and oilseed contracts [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 664,673 | 547,096 |
Grain and oilseed contracts [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 892,303 | 717,522 |
Energy products [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 10,028 | 13,895 |
Energy products [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 6,570 | 4,663 |
Processed grain and oilseed contracts [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 657 | 597 |
Processed grain and oilseed contracts [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,304 | 2,454 |
Crop nutrient contracts | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 74 | 76 |
Crop nutrient contracts | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 127 | 23 |
Ocean freight contracts | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 1,140 | 295 |
Ocean freight contracts | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 95 | 85 |
Natural gas contracts [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 0 | 130 |
Natural gas contracts [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 0 | 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments and Hedging Activities - Derivative Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 412,809 | $ 244,019 |
Gross Amounts Recognized | $ 358,300 | $ 246,728 |
Derivative Financial Instrume_8
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Instruments Designated as Fair Value Hedges (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Derivative [Line Items] | ||
Derivative asset | $ 358,300 | $ 246,728 |
Derivative liability | 412,809 | 244,019 |
Designated as Hedging Instrument | Other assets | Interest rate swap derivatives | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 9,841 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative asset | 34,052 | 33,179 |
Derivative liability | $ 8,821 | $ 5,351 |
Derivative Financial Instrume_9
Derivative Financial Instruments and Hedging Activities - Pretax Gains (Losses) on Derivatives Accounted for as Hedging Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | $ 0 | $ 0 | $ 0 |
Interest expense | Interest rate swap derivatives | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (1,897) | 21,158 | 18,723 |
Interest expense | Hedged item | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 1,897 | (21,158) | (18,723) |
Cash Flow Hedging [Member] | Commodity [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments and Tax | $ (2,596) | $ 27,650 | $ 178 |
Derivative Financial Instrum_10
Derivative Financial Instruments and Hedging Activities - Location and Carrying Amount of Hedged Liabilities (Details) - Designated as Hedging Instrument - Long-term debt - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Derivative [Line Items] | ||
Carrying Amount of Hedged Liabilities | $ 0 | $ 334,389 |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities | $ 0 | $ 30,611 |
Derivative Financial Instrum_11
Derivative Financial Instruments and Hedging Activities - Pretax Gains (Losses) Recorded in Other Comprehensive Income Relating to Cash Flow Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Cash Flow Hedging [Member] | Commodity [Member] | |||
Derivative [Line Items] | |||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments and Tax | $ (2,596) | $ 27,650 | $ 178 |
Derivative Financial Instrum_12
Derivative Financial Instruments and Hedging Activities - Pretax Gains (Losses) Relating to Cash Flow Hedges Reclassified from AOCL into Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate derivatives | $ 23,807 | $ 11,497 | $ 0 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | $ 19,000 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Assets, at Fair Value | 47,669 | $ 40,368 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 18,998 | 21,364 |
Securities Segregated under Other Regulations | 85,950 | 77,777 |
Other assets | 5,276 | 6,519 |
Total assets | 530,961 | 414,417 |
Total liabilities | 421,630 | 249,461 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Assets, at Fair Value | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Securities Segregated under Other Regulations | 0 | |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Assets, at Fair Value | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 18,998 | 21,364 |
Securities Segregated under Other Regulations | 0 | |
Other assets | 0 | 0 |
Total assets | 386,304 | 221,936 |
Total liabilities | 415,593 | 209,156 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Assets, at Fair Value | 47,669 | 40,368 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Securities Segregated under Other Regulations | 85,950 | 77,777 |
Other assets | 5,276 | 6,519 |
Total assets | 144,657 | 192,481 |
Total liabilities | 6,037 | 40,305 |
Fair Value, Measurements, Recurring | Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 361,545 | 248,209 |
Derivative Liability | 352,163 | 228,760 |
Fair Value, Measurements, Recurring | Commodity derivatives | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Commodity derivatives | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 355,783 | 180,392 |
Derivative Liability | 346,126 | 188,455 |
Fair Value, Measurements, Recurring | Commodity derivatives | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 5,762 | 67,817 |
Derivative Liability | 6,037 | 40,305 |
Fair Value, Measurements, Recurring | Foreign currency derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 11,523 | 10,339 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 69,467 | 20,701 |
Fair Value, Measurements, Recurring | Foreign currency derivatives | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign currency derivatives | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 11,523 | 10,339 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 69,467 | 20,701 |
Fair Value, Measurements, Recurring | Foreign currency derivatives | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 0 | 0 |
Fair Value, Measurements, Recurring | Interest rate swap derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 9,841 | |
Fair Value, Measurements, Recurring | Interest rate swap derivatives | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 9,841 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Aug. 31, 2020USD ($) |
Guarantees [Abstract] | |
Maximum guarantees allowed by bank covenants | $ 1,000 |
Guarantor obligations, maximum exposure, undiscounted | 127.9 |
CHS Capital | |
Credit Commitments [Abstract] | |
CHS Capital long-term notes receivable additional available credit of counterparty | $ 714.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Unconditional Purchase Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Total payments under unconditional purchase obligation arrangements | $ 77,600 | $ 70,800 | $ 61,400 |
Minimum | |||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Long-term unconditional purchase obligations, Total | 544,203 | ||
2021 | 78,939 | ||
2022 | 58,214 | ||
2023 | 58,592 | ||
2024 | 58,262 | ||
2025 | 52,702 | ||
Thereafter | $ 237,494 |
Related Party Transactions (Det
Related Party Transactions (Details) - Primarily CF Nitrogen, TEMCO, Ardent Mills and Ventura Foods - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Sales | $ 2,528,921 | $ 2,628,670 | $ 2,928,984 |
Purchases | 872,819 | 901,812 | $ 2,505,185 |
Due from related parties | 129,397 | 26,785 | |
Due to related parties | $ 53,602 | $ 60,156 |
Leases, Codification Topic 84_2
Leases, Codification Topic 842 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Sep. 01, 2019 | |
Leases [Abstract] | |||||
Finance Lease, Liability, Payments, Due Next Twelve Months | $ 8,845 | ||||
Finance Lease, Liability, Payments, Due Year Two | 7,017 | ||||
Finance Lease, Liability, Payments, Due Year Three | 6,053 | ||||
Finance Lease, Liability, Payments, Due Year Four | 3,443 | ||||
Finance Lease, Liability, Payments, Due Year Five | 2,046 | ||||
Finance Lease, Liability, Payments, Due after Year Five | 7,933 | ||||
Finance Lease, Liability, Payment, Due | 35,337 | ||||
Finance Lease, Liability, Undiscounted Excess Amount | 3,877 | ||||
Finance Lease, Liability | 31,460 | ||||
Finance Lease, Liability, Current | 7,993 | ||||
Finance Lease, Liability, Noncurrent | 23,467 | ||||
Operating Leases, Future Minimum Payments, Next Rolling Twelve Months | 64,379 | ||||
Operating Leases, Future Minimum Payments Receivable, in Four Years | 32,195 | ||||
Operating Leases, Future Minimum Payments Receivable, in Five Years | 23,034 | ||||
Operating Leases, Future Minimum Payments Receivable, Thereafter | 95,553 | ||||
Lessee, Operating Lease, Liability, Payments, Due | 305,828 | ||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 44,937 | ||||
Operating Lease, Right-of-Use Asset | 257,834 | $ 268,400 | |||
Accumulated amortization on assets under capital leases | $ 20,600 | $ 18,900 | |||
Assets under capital leases | 62,700 | 50,000 | |||
Operating leases, rent expense, net | 113,300 | $ 88,500 | $ 81,300 | ||
CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 25,300 | ||||
Operating Lease, Expense | 71,541 | ||||
Finance Lease, Right-of-Use Asset, Amortization | 8,205 | ||||
Finance Lease, Interest Expense | 1,060 | ||||
Short-term Lease, Cost | 15,991 | ||||
Variable Lease, Cost | 3,674 | ||||
Lease, Cost | 100,471 | ||||
Finance Lease, Right-of-Use Asset | $ 44,860 | ||||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 3 months 18 days | ||||
Finance Lease, Weighted Average Remaining Lease Term | 6 years | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 3.11% | ||||
Finance Lease, Weighted Average Discount Rate, Percent | 3.33% | ||||
Operating Lease, Payments | $ 71,003 | ||||
Finance Lease, Interest Payment on Liability | 1,060 | ||||
Finance Lease, Principal Payments | 7,949 | ||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 56,461 | ||||
Right of Use Asset Modification | 7,333 | ||||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 6,761 | ||||
Capital Leases, Future Minimum Payments Due in Two Years | 6,199 | ||||
Capital Leases, Future Minimum Payments Due in Three Years | 5,021 | ||||
Capital Leases, Future Minimum Payments Due in Four Years | 4,548 | ||||
Capital Leases, Future Minimum Payments Due in Five Years | 2,638 | ||||
Capital Leases, Future Minimum Payments Due Thereafter | 6,517 | ||||
Capital Leases, Future Minimum Payments, Net Minimum Payments | 31,684 | ||||
Capital Leases, Future Minimum Payments, Interest Included in Payments | 3,445 | ||||
Capital Lease Obligations | 31,460 | 28,239 | |||
2020 | 87,168 | ||||
2021 | 50,398 | 57,381 | |||
2022 | 40,269 | 43,665 | |||
2023 | 34,328 | ||||
2024 | 26,793 | ||||
Operating Leases, Future Minimum Payments, Due Thereafter | 92,653 | ||||
Operating Leases, Future Minimum Payments Due | $ 341,988 | ||||
Other liabilities | |||||
Leases [Abstract] | |||||
Operating Lease, Liability | 267,000 | ||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Liability | 267,000 | ||||
Other liabilities | |||||
Leases [Abstract] | |||||
Operating Lease, Liability | 267,000 | ||||
Operating Lease, Liability, Noncurrent | 203,691 | ||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Liability, Noncurrent | 203,691 | ||||
Operating Lease, Liability | $ 267,000 | ||||
Accrued Liabilities [Member] | |||||
Leases [Abstract] | |||||
Operating Lease, Liability, Current | 57,200 | ||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Liability, Current | 57,200 | ||||
Liabilities, Total | |||||
Leases [Abstract] | |||||
Operating Lease, Liability | 260,891 | ||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Liability | $ 260,891 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) - USD ($) | Mar. 01, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Feb. 29, 2020 |
Business Acquisition [Line Items] | ||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 569,200,000 | $ 456,200,000 | ||
Remainingownershipacquired | 75.00% | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 37,800,000 | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 19,100,000 | |||
Amountpreviouslypaid | 6,700,000 | |||
Acquisitionpurchaseprice | 113,400,000 | |||
Payments to Acquire Business Two, Net of Cash Acquired | 106,700,000 | |||
Cash Acquired from Acquisition | 8,000,000 | |||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 19,000,000 | $ 12,900,000 | ||
West Central [Member] | ||||
Business Acquisition [Line Items] | ||||
Equity method investment, ownership percentage | 25.00% | |||
West Central [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill, Acquired During Period | 61,358,000 | |||
Cash Acquired from Acquisition | 8,033,000 | |||
Finite-lived Intangible Assets Acquired | $ 47,200,000 |
Acquisitions Assets Acquired an
Acquisitions Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Mar. 01, 2019USD ($) |
Business Combination, Separately Recognized Transactions [Line Items] | |
Cash Acquired from Acquisition | $ 8,000 |
West Central [Member] | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Finite-lived Intangible Assets Acquired | 47,200 |
Cash Acquired from Acquisition | 8,033 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 55 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 708,764 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (718,262) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 44,064 |
Goodwill, Acquired During Period | 61,358 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 151,212 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Allowances for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 176,805 | $ 221,813 | $ 225,726 |
Additions: Charged to Costs and Expenses | 3,089 | 57,380 | 2,748 |
Deductions: Write-offs, Net of Recoveries | (14,354) | (102,388) | (6,661) |
Balance at End of Year | 165,540 | 176,805 | 221,813 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 246,344 | 230,374 | 289,083 |
Additions: Charged to Costs and Expenses | 5,206 | 41,260 | 61,854 |
Deductions: Write-offs, Net of Recoveries | (31,659) | (25,290) | (120,563) |
Balance at End of Year | 219,891 | 246,344 | 230,374 |
Reserve for supplier advance payments | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 110,613 | 130,705 | |
Additions: Charged to Costs and Expenses | 0 | 0 | 0 |
Deductions: Write-offs, Net of Recoveries | 0 | (44,728) | (20,092) |
Balance at End of Year | $ 65,885 | $ 110,613 | $ 130,705 |