Cover Page
Cover Page - shares | 6 Months Ended | |
Feb. 28, 2021 | Apr. 07, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 28, 2021 | |
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 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 Common Stock, Shares Outstanding | 0 | |
Entity Central Index Key | 0000823277 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
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 (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Current assets [Abstract] | ||
Cash and cash equivalents | $ 217,675 | $ 140,874 |
Receivables | 2,336,920 | 2,366,047 |
Inventories | 4,246,051 | 2,742,138 |
Other current assets | 2,150,250 | 1,017,488 |
Total current assets | 8,950,896 | 6,266,547 |
Investments | 3,639,453 | 3,630,033 |
Property, plant and equipment | 4,866,751 | 4,957,938 |
Other assets | 1,109,043 | 1,139,429 |
Total assets | 18,566,143 | 15,993,947 |
Current liabilities [Abstract] | ||
Notes payable | 2,952,392 | 1,575,491 |
Current portion of long-term debt | 167,792 | 189,287 |
Accounts payable | 2,042,475 | 1,724,516 |
Accrued expenses | 451,593 | 501,904 |
Other Liabilities | 1,948,781 | 928,843 |
Total current liabilities | 7,563,033 | 4,920,041 |
Long-term debt | 1,604,313 | 1,601,836 |
Other liabilities | 679,014 | 652,897 |
Commitments and contingencies (Note 13) | ||
Equities: | ||
Preferred stock | 2,264,038 | 2,264,038 |
Equity certificates | 5,159,756 | 5,161,610 |
Accumulated other comprehensive loss | (222,458) | (233,924) |
Capital reserves | 1,509,902 | 1,618,147 |
Total CHS Inc. equities | 8,711,238 | 8,809,871 |
Noncontrolling interests | 8,545 | 9,302 |
Total equities | 8,719,783 | 8,819,173 |
Total liabilities and equities | $ 18,566,143 | $ 15,993,947 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 8,320,159 | $ 6,598,226 | $ 17,035,802 | $ 14,219,711 |
Cost of goods sold | 8,218,439 | 6,283,171 | 16,755,978 | 13,579,113 |
Gross profit | 101,720 | 315,055 | 279,824 | 640,598 |
Marketing, general and administrative expenses | 161,510 | 199,570 | 332,171 | 367,901 |
Operating (loss) earnings | (59,790) | 115,485 | (52,347) | 272,697 |
Interest Expense | 28,855 | 33,411 | 53,905 | 68,382 |
Other income | (17,846) | (11,352) | (30,470) | (24,850) |
Equity income from investments | (64,109) | (34,398) | (114,132) | (84,060) |
(Loss) income before income taxes | (6,690) | 127,824 | 38,350 | 313,225 |
Income tax expense | 31,668 | 2,130 | 7,339 | 8,794 |
Net (loss) income | (38,358) | 125,694 | 31,011 | 304,431 |
Net (loss) income attributable to noncontrolling interests | (129) | 247 | (431) | 1,102 |
Net (loss) income attributable to CHS Inc. | $ (38,229) | $ 125,447 | $ 31,442 | $ 303,329 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Net income (loss) | $ (38,358) | $ 125,694 | $ 31,011 | $ 304,431 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Pension and other postretirement benefits | 3,869 | 3,746 | 7,514 | 8,819 |
Cash flow hedges | (559) | (5,812) | 1,110 | (11,684) |
Foreign currency translation adjustment | (761) | (8,519) | 2,842 | (9,358) |
Other comprehensive income (loss), net of tax | 2,549 | (10,585) | 11,466 | (12,223) |
Comprehensive income (loss) | (35,809) | 115,109 | 42,477 | 292,208 |
Less comprehensive income attributable to noncontrolling interests | (129) | 247 | (431) | 1,102 |
Comprehensive Income (Loss) Attributable to CHS | $ (35,680) | $ 114,862 | $ 42,908 | $ 291,106 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 31,011 | $ 304,431 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 267,726 | 272,652 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (3,687) | 40,109 |
Provision for doubtful accounts | (4,674) | 1,883 |
Deferred taxes | 35,797 | (5,763) |
Other, net | (18,495) | 4,181 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | (100,398) | 507,844 |
Inventories | (1,495,856) | (814,318) |
Accounts payable and accrued expenses | 273,448 | (54,786) |
Other liabilities | (119,417) | 45,365 |
Net cash provided by (used in) operating activities | (1,134,545) | 301,598 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (164,565) | (224,962) |
Proceeds from disposition of property, plant and equipment | 7,741 | 6,959 |
Expenditures for major repairs | (10,050) | (8,809) |
Proceeds from Sales of Business, Affiliate and Productive Assets | 39,567 | |
Changes in CHS Capital notes receivable, net | 43,283 | 209,608 |
Financing extended to customers | (1,816) | (4,475) |
Payments from customer financing | 5,589 | 8,709 |
Other investing activities, net | 10,633 | 12,805 |
Net cash provided by (used in) investing activities | (69,618) | (165) |
Cash flows from financing activities: | ||
Proceeds from lines of credit and long-term borrowings | 16,930,536 | 11,403,077 |
Payments on lines of credit, long-term borrowings and capital lease obligations | (15,483,358) | (11,486,347) |
Preferred stock dividends paid | (84,334) | (84,334) |
Redemptions of equities | (12,486) | (8,834) |
Cash patronage dividends paid | (21,416) | (90,030) |
Other financing activities, net | (9,222) | (13,079) |
Net cash provided by (used in) financing activities | 1,319,720 | (279,547) |
Effect of exchange rate changes on cash and cash equivalents | 1,026 | (5,613) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 116,583 | 16,273 |
Cash and cash equivalents and restricted cash at beginning of period | 216,993 | 299,675 |
Cash and cash equivalents and restricted cash at end of period | $ 333,576 | $ 315,948 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation These unaudited condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for interim periods are not necessarily indicative of results for a full fiscal year because of the seasonal nature of our businesses, among other things. Our unaudited condensed consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended August 31, 2020, included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC"). Significant Accounting Policies The following significant accounting policy was updated or changed since our Annual Report on Form 10-K for the year ended August 31, 2020. Receivables As described in the "Recent Accounting Pronouncements" section, we adopted Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses ("ASC Topic 326"): Measurement of Credit Losses on Financial Instruments , on September 1, 2020, using the modified retrospective approach. Our accounting policies with respect to ASC Topic 326 are included in Note 3, Receivables . Recent Accounting Pronouncements Except for the recent accounting pronouncement described below, other recent accounting pronouncements are not expected to have a material impact on our condensed consolidated financial statements. Adopted In June 2016, the Financial Accounting Standards Board issued ASC Topic 326. The amendments in this ASU introduce a new approach, based on expected losses, to estimate credit losses on certain types of financial instruments. This ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses associated with most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance sheet credit exposures. Entities are required to apply the provisions of this ASU as a cumulative-effect adjustment to the opening balance of capital reserves as of the beginning of the first reporting period in which the guidance is adopted. As part of our adoption efforts, we performed various data-gathering activities, developed a credit losses model, performed data analyses and made accounting policy election determinations. The impact of adoption did not have a material impact on our condensed consolidated financial statements. Not Yet Adopted |
Revenues (Notes)
Revenues (Notes) | 6 Months Ended |
Feb. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following table presents revenues recognized under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), disaggregated by reportable segment, as well as the amount of revenues recognized under ASC Topic 815, Derivatives and Hedging ("ASC Topic 815"), and other applicable accounting guidance for the three and six months ended February 28, 2021, and February 29, 2020. Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 842, Leases , and ASC Topic 470, Debt , that fall outside the scope of ASC Topic 606. ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues Three Months Ended February 28, 2021 (Dollars in thousands) Energy $ 1,243,072 $ 129,086 $ — $ 1,372,158 Ag 1,169,411 5,753,333 15,468 6,938,212 Corporate and Other 4,535 — 5,254 9,789 Total revenues $ 2,417,018 $ 5,882,419 $ 20,722 $ 8,320,159 Three Months Ended February 29, 2020 Energy $ 1,375,905 $ 85,145 $ — $ 1,461,050 Ag 1,066,783 4,035,447 21,972 5,124,202 Corporate and Other 5,343 — 7,631 12,974 Total revenues $ 2,448,031 $ 4,120,592 $ 29,603 $ 6,598,226 Six Months Ended February 28, 2021 Energy $ 2,308,036 $ 321,969 $ — $ 2,630,005 Ag 2,513,910 11,840,572 29,132 14,383,614 Corporate and Other 10,995 — 11,188 22,183 Total revenues $ 4,832,941 $ 12,162,541 $ 40,320 $ 17,035,802 Six Months Ended February 29, 2020 Energy $ 3,069,753 $ 286,720 $ — $ 3,356,473 Ag 2,425,409 8,351,534 59,114 10,836,057 Corporate and Other 10,883 — 16,298 27,181 Total revenues $ 5,506,045 $ 8,638,254 $ 75,412 $ 14,219,711 Less than 1% of revenues accounted for under ASC Topic 606 included within the table above are recorded over time; these revenues are primarily related to service contracts. Contract Assets and Contract Liabilities Contract assets relate to unbilled amounts arising from goods that have already been transferred to the customer where the right to payment is not conditional on the passage of time. This results in recognition of an asset, as the amount of revenue recognized at a certain point in time exceeds the amount billed to the customer. Contract assets are recorded in receivables within our Condensed Consolidated Balance Sheets and were not material as of February 28, 2021, or August 31, 2020. Contract liabilities relate to advance payments from customers for goods and services that we have yet to provide. Contract liabilities of $783.2 million and $139.1 million as of February 28, 2021, and August 31, 2020, respectively, are recorded within other current liabilities on our Condensed Consolidated Balance Sheets. For the three months ended February 28, 2021, and February 29, 2020, we recognized revenues of $19.9 million and $39.6 million related to contract liabilities, respectively. For the six months ended February 28, 2021, and February 29, 2020, we recognized revenues of $91.6 million and $131.6 million related to contract liabilities, respectively. These amounts were included in the other current liabilities balance at the beginning of the respective periods. |
Receivables
Receivables | 6 Months Ended |
Feb. 28, 2021 | |
Receivables [Abstract] | |
Receivables | Receivables February 28, August 31, (Dollars in thousands) Trade accounts receivable $ 1,650,031 $ 1,476,585 CHS Capital short-term notes receivable 442,172 563,934 Other 392,769 491,068 Gross receivables 2,484,972 2,531,587 Less: allowances and reserves 148,052 165,540 Total receivables $ 2,336,920 $ 2,366,047 Receivables are composed of trade accounts receivable, short-term notes receivable in our wholly-owned subsidiary, CHS Capital, LLC ("CHS Capital"), and other receivables, less an allowance for expected credit losses. The allowance for expected credit losses is based on our best estimate of expected credit losses in existing receivable balances and is determined using historical write-off experience, adjusted for various industry and regional data and current expectations of future credit losses. Notes receivable from commercial borrowers are collateralized by various combinations of mortgages, personal property, accounts and notes receivable, inventories and assignments of capital stock from certain regional cooperatives. These loans are originated in various states, primarily in the Upper Midwest region of the United States, the most significant of which include 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 primarily 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 $93.0 million and $101.5 million as of February 28, 2021, and August 31, 2020, respectively. Long-term notes receivable are included in other assets on our Condensed Consolidated Balance Sheets. As of February 28, 2021, and August 31, 2020, the commercial notes represented 67% and 33%, respectively, and the producer notes represented 33% and 67%, respectively, of total CHS Capital notes receivable. CHS Capital has commitments to extend credit to customers if there are no violations of contractually established conditions. As of February 28, 2021, CHS Capital customers had additional available credit of $618.0 million. No significant troubled debt restructuring activity occurred and no third-party customer or borrower accounted for more than 10% of the total receivables balance as of February 28, 2021, or August 31, 2020. |
Inventories
Inventories | 6 Months Ended |
Feb. 28, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories February 28, August 31, (Dollars in thousands) Grain and oilseed $ 1,927,931 $ 1,064,079 Energy 714,798 696,858 Agronomy 1,403,480 822,535 Processed grain and oilseed 155,492 126,022 Other 44,350 32,644 Total inventories $ 4,246,051 $ 2,742,138 |
Investments
Investments | 6 Months Ended |
Feb. 28, 2021 | |
Investments [Abstract] | |
Investments | Investments February 28, August 31, (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,651,652 $ 2,662,618 Ventura Foods, LLC 374,895 381,351 Ardent Mills, LLC 215,942 208,927 Other equity method investments 265,588 253,182 Other investments 131,376 123,955 Total investments $ 3,639,453 $ 3,630,033 Joint ventures and other investments, in which we have significant ownership and influence but not control, are accounted for in our condensed consolidated financial statements using the equity method of accounting. Our significant equity method investments consist of CF Industries Nitrogen, LLC ("CF Nitrogen"); Ventura Foods, LLC ("Ventura Foods"); Ardent Mills, LLC ("Ardent Mills"); and TEMCO, LLC ("TEMCO"), which are summarized below. In addition to recognition of our share of income from equity method investments, our equity method investments are evaluated for indicators of other-than-temporary impairment on an ongoing basis in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Other investments consist primarily of investments in cooperatives without readily determinable fair values and are generally measured at cost, unless an impairment or other observable market price change occurs, requiring an adjustment. Approximately $394.0 million of cumulative undistributed earnings from our equity method investees are included in the investments balance as of February 28, 2021. CF Nitrogen We have an approximate $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. 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 the CF Nitrogen Limited Liability Company Agreement, adjusted for the semi-annual cash distributions we receive as a result of our membership interest in CF Nitrogen. The following table provides summarized unaudited financial information for our equity method investment in CF Nitrogen for the six months ended February 28, 2021, and February 29, 2020: Six Months Ended February 28, February 29, (Dollars in thousands) Net sales $ 1,285,625 $ 1,297,018 Gross profit 321,565 297,630 Net earnings 297,297 280,599 Earnings attributable to CHS Inc. 53,033 62,757 Ventura Foods We have a 50% interest in Ventura Foods, a joint venture with Mitsui & Co., that produces and distributes primarily vegetable-oil-based products. We account for Ventura Foods as an equity method investment, and our share of the results of this equity method investment are included in Corporate and Other. The following table provides aggregate summarized unaudited financial information for our equity method investment in Ventura Foods for the six months ended February 28, 2021, and February 29, 2020: Six Months Ended February 28, February 29, (Dollars in thousands) Net sales $ 1,107,024 $ 1,229,151 Gross profit 134,311 150,818 Net earnings 42,620 45,117 Earnings attributable to CHS Inc. 21,310 22,557 Ardent Mills and TEMCO We have a 12% interest in Ardent Mills, which is a joint venture with Cargill Incorporated ("Cargill") and Conagra Brands, Inc., and is the largest flour miller in the United States. Additionally, we have a 50% interest in TEMCO, which is a joint venture with Cargill focused on export elevation, primarily to Asia. We account for Ardent Mills and TEMCO as equity method investments, and our shares of the results of these equity method investments are included in Corporate and Other and our Ag segment, respectively. The following table provides aggregate summarized unaudited financial information for our equity method investments in Ardent Mills and TEMCO for the six months ended February 28, 2021, and February 29, 2020: Six Months Ended February 28, February 29, (Dollars in thousands) Net sales $ 4,395,607 $ 3,070,160 Gross profit 287,843 170,294 Net earnings 145,783 44,145 Earnings attributable to CHS Inc. 30,419 (3,879) Our investments in other equity method investees are not significant in relation to our condensed consolidated financial statements, either individually or in the aggregate. |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 6 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with our debt covenants as of February 28, 2021. The table below summarizes our notes payable as of February 28, 2021, and August 31, 2020. February 28, August 31, (Dollars in thousands) Notes payable $ 2,249,275 $ 763,215 CHS Capital notes payable 703,117 812,276 Total notes payable $ 2,952,392 $ 1,575,491 As of February 28, 2021, our primary line of credit was a five 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 February 28, 2021, total availability under the Securitization Facility was $538.0 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 February 28, 2021, and August 31, 2020, the outstanding balance under the Repurchase Facility was $150.0 million. On September 24, 2020, the Securitization Facility and Repurchase Facility were 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. On February 19, 2021, we amended our 10-year term loan facility to convert the entire $366.0 million aggregate principle amount outstanding thereunder into a revolving loan, which can be paid down and readvanced in an amount up to the referenced $366.0 million until February 19, 2022. On February 19, 2022, the total funded loan balance outstanding reverts to a nonrevolving term loan that is payable on September 4, 2025. There was no balance outstanding under this facility as of February 28, 2021. On August 14, 2020, we entered into a Note Purchase Agreement to borrow $375.0 million of debt in the form of notes. The notes under this Note Purchase Agreement are structured in four series with maturities ranging from 7 to 15 years and interest accruing at rates ranging from 3.24% to 3.73%, subject to certain adjustments depending on our ratio of consolidated funded debt to consolidated cash flow. The funding of these notes took place on November 2, 2020. This funding is being used to pay debt maturities and manage liquidity. Interest expense for the three months ended February 28, 2021, and February 29, 2020, was $28.9 million and $33.4 million, respectively, net of capitalized interest of $2.1 million and $3.4 million, respectively. Interest expense for the six months ended February 28, 2021, and February 29, 2020, was $53.9 million and $68.4 million, respectively, net of capitalized interest of $4.2 million and $6.2 million, respectively. |
Equities
Equities | 6 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
Equities | Equities Changes in Equities Changes in equities for the three and six months ended February 28, 2021, and February 29, 2020, are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balances, August 31, 2020 $ 3,724,187 $ 28,727 $ 1,408,696 $ 2,264,038 $ (233,924) $ 1,618,147 $ 9,302 $ 8,819,173 Reversal of prior year redemption estimates 7,726 — — — — — — 7,726 Redemptions of equities (6,539) (31) (1,156) — — — — (7,726) Preferred stock dividends — — — — — (84,334) — (84,334) Other, net (654) (47) (197) — — (7,798) 35 (8,661) Net income (loss) — — — — — 69,671 (302) 69,369 Other comprehensive income, net of tax — — — — 8,917 — — 8,917 Estimated 2021 cash patronage refunds — — — — — (9,304) — (9,304) Estimated 2021 equity redemptions (9,304) — — — — — — (9,304) Balances, November 30, 2020 $ 3,715,416 $ 28,649 $ 1,407,343 $ 2,264,038 $ (225,007) $ 1,586,382 $ 9,035 $ 8,785,856 Reversal of prior year patronage and redemption estimates 4,760 — (211,970) — — 233,345 — 26,135 Distribution of 2020 patronage refunds — — 214,720 — — (236,136) — (21,416) Redemptions of equities (4,177) (35) (548) — — — — (4,760) Preferred stock dividends — — — — — (42,167) — (42,167) Other, net (26) — (15) — — 1,068 (361) 666 Net loss — — — — — (38,229) (129) (38,358) Other comprehensive income, net of tax — — — — 2,549 — — 2,549 Estimated 2021 cash patronage refunds — — — — — 5,639 — 5,639 Estimated 2021 equity redemptions 5,639 — — — — — — 5,639 Balances, February 28, 2021 $ 3,721,612 $ 28,614 $ 1,409,530 $ 2,264,038 $ (222,458) $ 1,509,902 $ 8,545 $ 8,719,783 Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balances, August 31, 2019 $ 3,753,493 $ 29,074 $ 1,206,310 $ 2,264,038 $ (226,933) $ 1,584,158 $ 7,390 $ 8,617,530 Reversal of prior year redemption estimates 5,447 — — — — — — 5,447 Redemptions of equities (4,721) (54) (672) — — — — (5,447) Preferred stock dividends — — — — — (84,334) — (84,334) ASC Topic 842 cumulative-effect adjustment — — — — — 33,707 — 33,707 Other, net (8) — (39) — — (1,312) 410 (949) Net income — — — — — 177,882 855 178,737 Other comprehensive loss, net of tax — — — — (1,638) — — (1,638) Estimated 2020 cash patronage refunds — — — — — (28,504) — (28,504) Estimated 2020 equity redemptions (91,633) — — — — — — (91,633) Balances, November 30, 2019 $ 3,662,578 $ 29,020 $ 1,205,599 $ 2,264,038 $ (228,571) $ 1,681,597 $ 8,655 $ 8,622,916 Reversal of prior year patronage and redemption estimates 3,387 — (472,398) — — 562,398 — 93,387 Distribution of 2019 patronage refunds — — 474,066 — — (564,096) — (90,030) Redemptions of equities (2,998) (20) (369) — — — — (3,387) Preferred stock dividends — — — — — (42,167) — (42,167) Other, net (201) — 3 — — 10 (324) (512) Net income — — — — — 125,447 247 125,694 Other comprehensive loss, net of tax — — — — (10,585) — — (10,585) Estimated 2020 cash patronage refunds — — — — — (22,206) — (22,206) Estimated 2020 equity redemptions (49,154) — — — — — — (49,154) Balances, February 29, 2020 $ 3,613,612 $ 29,000 $ 1,206,901 $ 2,264,038 $ (239,156) $ 1,740,983 $ 8,578 $ 8,623,956 Preferred Stock Dividends The following is a summary of dividends per share by series of preferred stock for the three and six months ended February 28, 2021, and February 29, 2020. Three Months Ended Six Months Ended Nasdaq symbol February 28, February 29, February 28, February 29, Series of preferred stock: (Dollars per share) 8% Cumulative Redeemable CHSCP $ 0.50 $ 0.50 $ 1.50 $ 1.50 Class B Cumulative Redeemable, Series 1 CHSCO $ 0.49 $ 0.49 $ 1.48 $ 1.48 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN $ 0.44 $ 0.44 $ 1.33 $ 1.33 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM $ 0.42 $ 0.42 $ 1.27 $ 1.27 Class B Cumulative Redeemable, Series 4 CHSCL $ 0.47 $ 0.47 $ 1.41 $ 1.41 Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the three and six months ended February 28, 2021, and February 29, 2020: Pension and Other Postretirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustment Total (Dollars in thousands) Balance as of August 31, 2020, net of tax $ (159,680) $ 10,886 $ (85,130) $ (233,924) Other comprehensive income (loss), before tax: Amounts before reclassifications (125) 14,506 3,629 18,010 Amounts reclassified 4,977 (12,284) — (7,307) Total other comprehensive income, before tax 4,852 2,222 3,629 10,703 Tax effect (1,207) (553) (26) (1,786) Other comprehensive income, net of tax 3,645 1,669 3,603 8,917 Balance as of November 30, 2020, net of tax $ (156,035) $ 12,555 $ (81,527) $ (225,007) Other comprehensive income (loss), before tax: Amounts before reclassifications — 2,929 (587) 2,342 Amounts reclassified 5,151 (3,673) — 1,478 Total other comprehensive income (loss), before tax 5,151 (744) (587) 3,820 Tax effect (1,282) 185 (174) (1,271) Other comprehensive income (loss), net of tax 3,869 (559) (761) 2,549 Balance as of February 28, 2021, net of tax $ (152,166) $ 11,996 $ (82,288) $ (222,458) Pension and Other Postretirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustment Total (Dollars in thousands) Balance as of August 31, 2019, net of tax $ (172,478) $ 15,297 $ (69,752) $ (226,933) Other comprehensive income (loss), before tax: Amounts before reclassifications (85) (3,331) (2,411) (5,827) Amounts reclassified 4,977 (4,473) — 504 Total other comprehensive income (loss), before tax 4,892 (7,804) (2,411) (5,323) Tax effect 181 1,932 1,572 3,685 Other comprehensive income (loss), net of tax 5,073 (5,872) (839) (1,638) Balance as of November 30, 2019, net of tax $ (167,405) $ 9,425 $ (70,591) $ (228,571) Other comprehensive income (loss), before tax: Amounts before reclassifications — (5,975) (8,540) (14,515) Amounts reclassified 4,977 (1,747) — 3,230 Total other comprehensive income (loss), before tax 4,977 (7,722) (8,540) (11,285) Tax effect (1,231) 1,910 21 700 Other comprehensive income (loss), net of tax 3,746 (5,812) (8,519) (10,585) Balance as of February 29, 2020, net of tax $ (163,659) $ 3,613 $ (79,110) $ (239,156) Amounts reclassified from accumulated other comprehensive income (loss) were related to pension and other postretirement benefits, cash flow hedges and foreign currency translation adjustments. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts and are recorded as cost of goods sold, marketing, general and administrative expenses, and other income (see Note 9, Benefit Plans, for further information). Gains or losses associated with cash flow hedges are recorded as cost of goods sold (see Note 11, Derivative Financial Instruments and Hedging Activities , for further information). Gains or losses on foreign currency translation reclassifications related to sales of businesses are recorded as other income. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Feb. 28, 2021 | |
Retirement Benefits [Abstract] | |
Benefit plans | Benefit Plans We have various pension and other defined benefit and defined contribution plans, in which substantially all employees may participate. We also have nonqualified supplemental executive and Board retirement plans. Components of net periodic benefit costs for the three and six months ended February 28, 2021, and February 29, 2020, are as follows: Three Months Ended Qualified Nonqualified Other Benefits February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 Components of net periodic benefit costs: (Dollars in thousands) Service cost $ 11,307 $ 10,538 $ 108 $ 101 $ 297 $ 262 Interest cost 4,141 5,431 68 107 123 187 Expected return on assets (10,910) (11,671) — — — — Prior service cost (credit) amortization 45 45 (28) (28) (111) (111) Actuarial loss (gain) amortization 5,447 5,396 53 25 (341) (348) Net periodic benefit cost (benefit) $ 10,030 $ 9,739 $ 201 $ 205 $ (32) $ (10) Six Months Ended Qualified Nonqualified Other Benefits February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 Components of net periodic benefit costs: (Dollars in thousands) Service cost $ 22,614 $ 21,076 $ 217 $ 203 $ 593 $ 525 Interest cost 8,281 10,861 136 214 246 374 Expected return on assets (21,821) (23,342) — — — — Prior service cost (credit) amortization 89 89 (57) (57) (223) (223) Actuarial loss (gain) amortization 10,895 10,791 106 49 (682) (696) Net periodic benefit cost (benefit) $ 20,058 $ 19,475 $ 402 $ 409 $ (66) $ (20) The service cost component of defined benefit net periodic benefit cost is recorded in cost of goods sold and marketing, general and administrative expenses. The other components of net periodic benefit cost are recorded in other income. Employer Contributions Any contributions made during fiscal 2021 will depend primarily on market returns on the pension plan assets and minimum funding level requirements. No contributions were made to the pension plans during the six months ended February 28, 2021, and we do not currently anticipate being required to make contributions for our pension plans in fiscal 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Our effective tax rate for the three months ended February 28, 2021, was (473.4)%, compared to 1.7% for the three months ended February 29, 2020. Our effective tax rate for the six months ended February 28, 2021, was 19.1%, compared to 2.8% for the six months ended February 29, 2020. Our income tax expense reflects the mix of full-year earnings projected across business units and equity management assumptions, which were partially offset by tax benefits related to an intercompany transfer of assets for tax planning. Income taxes and effective tax rate vary each year based on profitability and nonpatronage business activity during each of the comparable years. Our uncertain tax positions are affected by the tax years that are under audit or remain subject to examination by the relevant taxing authorities. Reserves are recorded against unrecognized tax benefits when we believe certain fully supportable tax return positions are likely to be challenged and we may not prevail. If we were to prevail on all positions taken in relation to uncertain tax positions, $129.8 million and $111.3 million of the unrecognized tax benefits would ultimately benefit our effective tax rate as of February 28, 2021, and August 31, 2020, respectively. It is reasonably possible that the total amount of unrecognized tax benefits could significantly change in the next 12 months. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Feb. 28, 2021 | |
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 our businesses. We have aggregated those operating segments into three reportable segments: Energy, Ag and Nitrogen Production. Our Energy segment produces and provides primarily for the wholesale distribution of petroleum products and transportation of those products. Our Ag segment purchases and further processes or resells grains and oilseeds originated by our country operations business, by our member cooperatives and by third parties; serves as a wholesaler and retailer of crop inputs; and produces and markets ethanol. Our Nitrogen Production segment consists solely of our equity method investment in CF Nitrogen, which entitles us, pursuant to a supply agreement that we entered into with CF Nitrogen, to purchase up to a specified quantity of granular urea and urea ammonium nitrate annually from CF Nitrogen. Corporate and Other represents our financing and hedging businesses, which consist primarily of financial services related to crop production and a U.S. Commodity Futures Trading Commission-regulated futures commission merchant for commodities hedging. 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 and Corporate and Other, based on direct use of 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. Our revenues generally trend lower during the second and fourth fiscal quarters and higher during the first and third fiscal quarters; however, our income (loss) before income taxes does not necessarily follow the same trend due to weather and other events that can impact profitability. For example, in our Ag segment, our country operations business generally experiences higher volumes and revenues during the fall harvest and spring planting seasons, which generally correspond to our first and third fiscal quarters, respectively. Additionally, our agronomy business generally experiences higher volumes during the spring planting season. Our global grain marketing operations are subject to fluctuations in volume and income based on producer harvests, world grain prices, demand and global trade volumes. Our Energy segment generally experiences higher volumes in certain operating areas, such as refined products, in the spring, summer and early fall when gasoline and diesel fuel use by agricultural producers is highest and is subject to global supply and demand forces. Other energy products, such as propane, generally experience higher volumes during the winter heating and fall crop-drying seasons. Our revenues, assets and cash flows can be significantly affected by global market prices for commodities such as petroleum products, natural gas, 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 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 consolidation of the revenues and expenses of the entity in our Condensed 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 5, Investments, for more information on these entities. Reconciling amounts primarily represent the elimination of revenues between segments. Such transactions are executed at market prices to more accurately evaluate the profitability of individual business segments. Segment information for the three and six months ended February 28, 2021, and February 29, 2020, is presented in the tables below. Energy Ag Nitrogen Production Corporate Reconciling Total Three Months Ended February 28, 2021 (Dollars in thousands) Revenues, including intersegment revenues $ 1,470,465 $ 6,942,185 $ — $ 12,046 $ (104,537) $ 8,320,159 Intersegment revenues (98,307) (3,973) — (2,257) 104,537 — Revenues, net of intersegment revenues $ 1,372,158 $ 6,938,212 $ — $ 9,789 $ — $ 8,320,159 Operating (loss) earnings (55,449) 2,093 (8,240) 1,806 — (59,790) Interest expense 1,063 16,630 12,241 7 (1,086) 28,855 Other income (990) (11,636) (302) (6,004) 1,086 (17,846) Equity income from investments (832) (16,945) (31,344) (14,988) — (64,109) (Loss) income before income taxes $ (54,690) $ 14,044 $ 11,165 $ 22,791 $ — $ (6,690) Energy Ag Nitrogen Production Corporate Reconciling Total Three Months Ended February 29, 2020 (Dollars in thousands) Revenues, including intersegment revenues $ 1,561,908 $ 5,127,441 $ — $ 14,049 $ (105,172) $ 6,598,226 Intersegment revenues (100,858) (3,239) — (1,075) 105,172 — Revenues, net of intersegment revenues $ 1,461,050 $ 5,124,202 $ — $ 12,974 $ — $ 6,598,226 Operating earnings (loss) 137,187 (6,809) (10,559) (4,334) — 115,485 Interest expense (187) 20,759 11,971 3,032 (2,164) 33,411 Other income (938) (11,395) (348) (835) 2,164 (11,352) Equity (income) loss from investments (609) 4,672 (27,923) (10,538) — (34,398) Income (loss) before income taxes $ 138,921 $ (20,845) $ 5,741 $ 4,007 $ — $ 127,824 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities Disclosure | 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 Condensed Consolidated Balance Sheets at fair value with changes in fair value being recorded directly to earnings, primarily within cost of goods sold in our Condensed Consolidated Statements of Operations. See Note 12, 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 Condensed 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 Condensed Consolidated Balance Sheets under ASC Topic 210-20, Balance Sheet - Offsetting . February 28, 2021 Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting Gross Amount Recognized Cash Collateral Derivative Instruments Net Amount (Dollars in thousands) Derivative Assets Commodity derivatives $ 980,141 $ — $ 18,849 $ 961,292 Foreign exchange derivatives 7,221 — 5,891 1,330 Embedded derivative asset 15,865 — — 15,865 Total $ 1,003,227 $ — $ 24,740 $ 978,487 Derivative Liabilities Commodity derivatives $ 515,002 $ 1,893 $ 19,964 $ 493,145 Foreign exchange derivatives 64,669 — 5,891 58,778 Total $ 579,671 $ 1,893 $ 25,855 $ 551,923 August 31, 2020 Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting Gross Amount Recognized Cash Collateral Derivative Instruments Net Amount (Dollars in thousands) Derivative Assets Commodity derivatives $ 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 Derivative assets and liabilities with maturities of 12 months or less are recorded in other current assets and other current liabilities, respectively, on our Condensed Consolidated Balance Sheets. Derivative assets and liabilities with maturities greater than 12 months are recorded in other assets and other liabilities, respectively, on our Condensed Consolidated Balance Sheets. The amount of long-term derivative assets recorded on our Condensed Consolidated Balance Sheets as of February 28, 2021, and August 31, 2020, was $15.2 million and $21.2 million, respectively. The amount of long-term derivative liabilities recorded on our Condensed Consolidated Balance Sheets as of February 28, 2021, and August 31, 2020, was $4.3 million and $5.4 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 Condensed Consolidated Statements of Operations for the three and six months ended February 28, 2021, and February 29, 2020. Three Months Ended Six Months Ended Location of Gain (Loss) February 28, February 29, February 28, February 29, (Dollars in thousands) Commodity derivatives Cost of goods sold $ (191,284) $ 100,268 $ (392,646) $ 142,942 Foreign exchange derivatives Cost of goods sold (30,881) (37,148) (8,240) (47,309) Foreign exchange derivatives Marketing, general and administrative expenses (435) 195 173 1,938 Embedded derivative Other income 302 348 1,866 1,917 Total $ (222,298) $ 63,663 $ (398,847) $ 99,488 Commodity Contracts As of February 28, 2021, and August 31, 2020, 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. February 28, 2021 August 31, 2020 Long Short Long Short (Units in thousands) Grain and oilseed (bushels) 851,400 1,181,716 664,673 892,303 Energy products (barrels) 12,560 11,779 10,028 6,570 Processed grain and oilseed (tons) 609 2,320 657 3,304 Crop nutrients (tons) 2 177 74 127 Ocean freight (metric tons) 370 — 1,140 95 Natural gas (MMBtu) — 200 — — Foreign Exchange Contracts We conduct a substantial portion of our business in U.S. dollars, but we are exposed to risks relating to foreign currency fluctuations primarily due to global grain marketing transactions in South America, the Asia Pacific region and Europe, and purchases of products from Canada. We use foreign currency derivative instruments to mitigate the impact of exchange rate fluctuations. Although we have some risk exposure related 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 $1.4 billion and $1.2 billion as of February 28, 2021, and August 31, 2020, respectively. Embedded Derivative Asset Under the terms of our strategic investment in CF Nitrogen, if the CF Industries credit rating is reduced below certain levels by two of three specified credit ratings agencies, we are entitled to receive a nonrefundable annual payment of $5.0 million from CF Industries. These payments will continue on an annual basis until the date that the CF Industries credit rating is upgraded to or above certain levels by two of the three specified credit ratings agencies or February 1, 2026, whichever is earlier. Since the CF Industries credit rating was reduced below the specified levels during fiscal 2017, we have received an annual payment of $5.0 million from CF Industries. Gains totaling $1.9 million were recognized in other income in our Condensed Consolidated Statements of Operations for each of the six months ended February 28, 2021, and February 29, 2020. The fair value of the embedded derivative asset recorded on our Condensed Consolidated Balance Sheet as of February 28, 2021, was equal to $15.9 million. The current and long-term portions of the embedded derivative asset are included in other current assets and other assets on our Condensed Consolidated Balance Sheets, respectively. See Note 12, Fair Value Measurements, for additional information regarding valuation of the embedded derivative asset. Derivatives Designated as Cash Flow Hedging Strategies Certain pay-fixed, receive-variable, cash-settled swaps are designated as cash flow hedges of future crude oil purchases in our Energy segment. We also designate 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. We may also elect to dedesignate certain derivative instruments previously designated as cash flow hedges as part of our risk management strategy. Amounts recorded in other comprehensive income for these dedesignated derivative instruments remain in other comprehensive income and are recognized in earnings in the period the underlying transaction affects earnings. As of February 28, 2021, and August 31, 2020, the aggregate notional amount of cash flow hedges was 1.5 million and 9.7 million barrels, respectively. The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the line items on our Condensed Consolidated Balance Sheets in which they are recorded. Derivative Assets Derivative Liabilities Balance Sheet Location February 28, 2021 August 31, Balance Sheet Location February 28, 2021 August 31, (Dollars in thousands) (Dollars in thousands) Other current assets $ 11,008 $ 34,052 Other current liabilities $ 1,154 $ 8,821 The following table presents the pretax losses recorded in other comprehensive income relating to cash flow hedges for the three and six months ended February 28, 2021, and February 29, 2020: Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, (Dollars in thousands) Commodity derivatives $ (2,084) $ (8,130) $ (110) $ (15,233) The following table presents the pretax gains relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Condensed Consolidated Statements of Operations for the three and six months ended February 28, 2021, and February 29, 2020: Three Months Ended Six Months Ended Location of Gain February 28, February 29, February 28, February 29, (Dollars in thousands) Commodity derivatives Cost of goods sold $ 4,082 $ 2,126 $ 16,755 $ 6,978 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Feb. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements, 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 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 under 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 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Recurring fair value measurements as of February 28, 2021, and August 31, 2020, are as follows: February 28, 2021 Quoted Prices in Significant Significant Total (Dollars in thousands) Assets Commodity derivatives $ 1,856 $ 989,293 $ — $ 991,149 Foreign exchange derivatives — 7,302 — 7,302 Deferred compensation assets 49,314 — — 49,314 Embedded derivative asset — 15,865 — 15,865 Segregated investments and marketable securities 185,224 — — 185,224 Other assets 5,991 — — 5,991 Total $ 242,385 $ 1,012,460 $ — $ 1,254,845 Liabilities Commodity derivatives $ 4,409 $ 511,748 $ — $ 516,157 Foreign exchange derivatives — 64,669 — 64,669 Total $ 4,409 $ 576,417 $ — $ 580,826 August 31, 2020 Quoted Prices in Significant Significant Total (Dollars in thousands) Assets Commodity derivatives $ 5,762 $ 355,783 $ — $ 361,545 Foreign exchange derivatives — 11,523 — 11,523 Deferred compensation assets 47,669 — — 47,669 Embedded derivative asset — 18,998 — 18,998 Segregated investments and marketable securities 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 exchange derivatives — 69,467 — 69,467 Total $ 6,037 $ 415,593 $ — $ 421,630 Commodity and foreign exchange derivatives . Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. Our forward commodity purchase and sales contracts with fixed-price components, select ocean freight contracts and other OTC derivatives are determined using inputs that are generally based on exchange traded prices and/or recent market bids and offers, adjusted for location-specific inputs, and are classified within Level 2. Location-specific inputs are driven by local market supply and demand and are generally based on broker or dealer quotations or market transactions in either the listed or OTC markets. Changes in the fair values of these contracts are recognized in our Condensed Consolidated Statements of Operations as a component of cost of goods sold. Deferred compensation and other assets . Our deferred compensation investments consist primarily of rabbi trust assets that are valued based on unadjusted quoted prices on active exchanges and are classified within Level 1. Changes in the fair values of these other assets are primarily recognized in our Condensed Consolidated Statements of Operations as a component of marketing, general and administrative expenses. Embedded derivative asset . The embedded derivative asset relates to contingent payments inherent to our investment in CF Nitrogen. The inputs used in the fair value measurement include the probability of future upgrades and downgrades of the CF Industries credit rating based on historical credit rating movements of other public companies and the discount rates applied to potential annual payments based on applicable historical and current yield coupon rates. Based on these observable inputs, our fair value measurement is classified within Level 2. See Note 11, Derivative Financial Instruments and Hedging Activities, for additional information. Segregated investments and marketable securities. Our segregated investments and marketable securities are comprised of investments in various government agencies and U.S. Treasury securities, which are valued using quoted market prices and classified within Level 1. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies Environmental We are required to comply with various environmental laws and regulations incidental to our normal business operations. To meet compliance requirements, we establish reserves for the future costs of remediation of identified issues that are both probable and can be reasonably estimated, which are included in cost of goods sold and marketing, general and administrative expenses in our Condensed Consolidated Statements of Operations. The resolution of any such matters may affect consolidated net income for any fiscal period; however, we believe any resulting liabilities, individually or in aggregate, will not have a material effect on our condensed consolidated financial statements during any fiscal year. Other Litigation and Claims We are involved as a defendant in various lawsuits, claims and disputes, which are in the normal course of our business. The resolution of any such matters may affect net income for any fiscal period; however, we believe any resulting liabilities, individually or in aggregate, will not have a material effect on our condensed consolidated financial statements during any fiscal year. Guarantees We are a guarantor for lines of credit and performance obligations of related, nonconsolidated companies. Our bank covenants allow maximum guarantees of $1.0 billion, of which $181.3 million were outstanding on February 28, 2021. We have collateral for a portion of these contingent obligations. We have not recorded a liability related to the contingent obligations as we do not expect to pay out any cash related to them, and the fair values are considered immaterial. The underlying loans to the counterparties for which we provide these guarantees were current as of February 28, 2021. |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Feb. 28, 2021 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases 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: Three Months Ended Six Months Ended February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 (Dollars in thousands) Operating lease expense $ 18,060 $ 20,538 $ 35,974 $ 36,098 Finance lease expense: Amortization of assets 1,890 1,073 3,945 3,262 Interest on lease liabilities 230 261 476 485 Short-term lease expense 4,068 6,317 8,424 9,660 Variable lease expense 863 710 1,541 913 Total net lease expense* $ 25,111 $ 28,899 $ 50,360 $ 50,418 *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 February 28, 2021 August 31, 2020 (Dollars in thousands) Operating leases Assets Operating lease right of use assets Other assets $ 265,684 $ 257,834 Liabilities Current operating lease liabilities Accrued expenses 58,766 57,200 Long-term operating lease liabilities Other liabilities 210,440 203,691 Total operating lease liabilities $ 269,206 $ 260,891 Finance leases Assets Finance lease assets Property, plant and equipment $ 40,502 $ 44,860 Liabilities Current finance lease liabilities Current portion of long-term debt 6,827 7,993 Long-term finance lease liabilities Long-term debt 20,379 23,467 Total finance lease liabilities $ 27,206 $ 31,460 Weighted average remaining lease term (in years) Operating leases 8.1 8.3 Finance leases 6.2 6.0 Weighted average discount rate Operating leases 3.05 % 3.11 % Finance leases 3.37 % 3.33 % Supplemental cash flow and other information related to operating and finance leases are as follows: Six Months Ended February 28, 2021 February 29, 2020 (Dollars in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 37,460 $ 28,368 Operating cash flows from finance leases 476 485 Financing cash flows from finance leases 4,602 3,285 Supplemental noncash information: Right of use assets obtained in exchange for lease liabilities 27,919 18,162 Right of use asset modifications 18,038 3,967 Maturities of lease liabilities as of February 28, 2021, were as follows: February 28, 2021 Finance Leases Operating Leases (Dollars in thousands) Remainder of fiscal 2021 $ 3,775 $ 35,958 Fiscal 2022 7,051 62,491 Fiscal 2023 6,121 48,834 Fiscal 2024 3,494 38,956 Fiscal 2025 2,086 28,928 After fiscal 2025 8,113 105,485 Total maturities of lease liabilities 30,640 320,652 Less amounts representing interest 3,434 51,446 Present value of future minimum lease payments 27,206 269,206 Less current lease liabilities 6,827 58,766 Long-term lease liabilities $ 20,379 $ 210,440 |
Other Current Assets and Liabil
Other Current Assets and Liabilities (note) | 6 Months Ended |
Feb. 28, 2021 | |
Other current assets and liabilities [Abstract] | |
Other current assets and liabilities Text block | Other Current Assets and Liabilities Other current assets and liabilities as of February 28, 2021, and August 31, 2020, are as follows: February 28, August 31, Other current assets (Dollars in thousands) Derivative assets (Note 11) $ 999,072 $ 371,195 Margin and related deposits 328,849 194,097 Supplier advance payments 515,663 198,699 Other 306,666 253,497 Total other current assets $ 2,150,250 $ 1,017,488 Other current liabilities Customer margin deposits and credit balances $ 218,217 $ 149,539 Customer advance payments 1,084,039 300,100 Derivative liabilities (Note 11) 576,543 416,204 Dividends and equity payable 69,982 63,000 Total other current liabilities $ 1,948,781 $ 928,843 |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation These unaudited condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for interim periods are not necessarily indicative of results for a full fiscal year because of the seasonal nature of our businesses, among other things. Our unaudited condensed consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended August 31, 2020, included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC"). |
Significant Accounting Policies [Text Block] | Significant Accounting Policies The following significant accounting policy was updated or changed since our Annual Report on Form 10-K for the year ended August 31, 2020. Receivables As described in the "Recent Accounting Pronouncements" section, we adopted Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses ("ASC Topic 326"): Measurement of Credit Losses on Financial Instruments |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Except for the recent accounting pronouncement described below, other recent accounting pronouncements are not expected to have a material impact on our condensed consolidated financial statements. Adopted In June 2016, the Financial Accounting Standards Board issued ASC Topic 326. The amendments in this ASU introduce a new approach, based on expected losses, to estimate credit losses on certain types of financial instruments. This ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses associated with most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance sheet credit exposures. Entities are required to apply the provisions of this ASU as a cumulative-effect adjustment to the opening balance of capital reserves as of the beginning of the first reporting period in which the guidance is adopted. As part of our adoption efforts, we performed various data-gathering activities, developed a credit losses model, performed data analyses and made accounting policy election determinations. The impact of adoption did not have a material impact on our condensed consolidated financial statements. Not Yet Adopted |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table presents revenues recognized under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), disaggregated by reportable segment, as well as the amount of revenues recognized under ASC Topic 815, Derivatives and Hedging ("ASC Topic 815"), and other applicable accounting guidance for the three and six months ended February 28, 2021, and February 29, 2020. Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 842, Leases , and ASC Topic 470, Debt , that fall outside the scope of ASC Topic 606. ASC Topic 606 ASC Topic 815 Other Guidance Total Revenues Three Months Ended February 28, 2021 (Dollars in thousands) Energy $ 1,243,072 $ 129,086 $ — $ 1,372,158 Ag 1,169,411 5,753,333 15,468 6,938,212 Corporate and Other 4,535 — 5,254 9,789 Total revenues $ 2,417,018 $ 5,882,419 $ 20,722 $ 8,320,159 Three Months Ended February 29, 2020 Energy $ 1,375,905 $ 85,145 $ — $ 1,461,050 Ag 1,066,783 4,035,447 21,972 5,124,202 Corporate and Other 5,343 — 7,631 12,974 Total revenues $ 2,448,031 $ 4,120,592 $ 29,603 $ 6,598,226 Six Months Ended February 28, 2021 Energy $ 2,308,036 $ 321,969 $ — $ 2,630,005 Ag 2,513,910 11,840,572 29,132 14,383,614 Corporate and Other 10,995 — 11,188 22,183 Total revenues $ 4,832,941 $ 12,162,541 $ 40,320 $ 17,035,802 Six Months Ended February 29, 2020 Energy $ 3,069,753 $ 286,720 $ — $ 3,356,473 Ag 2,425,409 8,351,534 59,114 10,836,057 Corporate and Other 10,883 — 16,298 27,181 Total revenues $ 5,506,045 $ 8,638,254 $ 75,412 $ 14,219,711 |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | February 28, August 31, (Dollars in thousands) Trade accounts receivable $ 1,650,031 $ 1,476,585 CHS Capital short-term notes receivable 442,172 563,934 Other 392,769 491,068 Gross receivables 2,484,972 2,531,587 Less: allowances and reserves 148,052 165,540 Total receivables $ 2,336,920 $ 2,366,047 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | February 28, August 31, (Dollars in thousands) Grain and oilseed $ 1,927,931 $ 1,064,079 Energy 714,798 696,858 Agronomy 1,403,480 822,535 Processed grain and oilseed 155,492 126,022 Other 44,350 32,644 Total inventories $ 4,246,051 $ 2,742,138 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Table Text Block] | February 28, August 31, (Dollars in thousands) Equity method investments: CF Industries Nitrogen, LLC $ 2,651,652 $ 2,662,618 Ventura Foods, LLC 374,895 381,351 Ardent Mills, LLC 215,942 208,927 Other equity method investments 265,588 253,182 Other investments 131,376 123,955 Total investments $ 3,639,453 $ 3,630,033 |
Equity Method Investments [Table Text Block] | The following table provides summarized unaudited financial information for our equity method investment in CF Nitrogen for the six months ended February 28, 2021, and February 29, 2020: Six Months Ended February 28, February 29, (Dollars in thousands) Net sales $ 1,285,625 $ 1,297,018 Gross profit 321,565 297,630 Net earnings 297,297 280,599 Earnings attributable to CHS Inc. 53,033 62,757 The following table provides aggregate summarized unaudited financial information for our equity method investment in Ventura Foods for the six months ended February 28, 2021, and February 29, 2020: Six Months Ended February 28, February 29, (Dollars in thousands) Net sales $ 1,107,024 $ 1,229,151 Gross profit 134,311 150,818 Net earnings 42,620 45,117 Earnings attributable to CHS Inc. 21,310 22,557 The following table provides aggregate summarized unaudited financial information for our equity method investments in Ardent Mills and TEMCO for the six months ended February 28, 2021, and February 29, 2020: Six Months Ended February 28, February 29, (Dollars in thousands) Net sales $ 4,395,607 $ 3,070,160 Gross profit 287,843 170,294 Net earnings 145,783 44,145 Earnings attributable to CHS Inc. 30,419 (3,879) |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | February 28, August 31, (Dollars in thousands) Notes payable $ 2,249,275 $ 763,215 CHS Capital notes payable 703,117 812,276 Total notes payable $ 2,952,392 $ 1,575,491 |
Equities (Tables)
Equities (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Class of Stock [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Pension and Other Postretirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustment Total (Dollars in thousands) Balance as of August 31, 2020, net of tax $ (159,680) $ 10,886 $ (85,130) $ (233,924) Other comprehensive income (loss), before tax: Amounts before reclassifications (125) 14,506 3,629 18,010 Amounts reclassified 4,977 (12,284) — (7,307) Total other comprehensive income, before tax 4,852 2,222 3,629 10,703 Tax effect (1,207) (553) (26) (1,786) Other comprehensive income, net of tax 3,645 1,669 3,603 8,917 Balance as of November 30, 2020, net of tax $ (156,035) $ 12,555 $ (81,527) $ (225,007) Other comprehensive income (loss), before tax: Amounts before reclassifications — 2,929 (587) 2,342 Amounts reclassified 5,151 (3,673) — 1,478 Total other comprehensive income (loss), before tax 5,151 (744) (587) 3,820 Tax effect (1,282) 185 (174) (1,271) Other comprehensive income (loss), net of tax 3,869 (559) (761) 2,549 Balance as of February 28, 2021, net of tax $ (152,166) $ 11,996 $ (82,288) $ (222,458) Pension and Other Postretirement Benefits Cash Flow Hedges Foreign Currency Translation Adjustment Total (Dollars in thousands) Balance as of August 31, 2019, net of tax $ (172,478) $ 15,297 $ (69,752) $ (226,933) Other comprehensive income (loss), before tax: Amounts before reclassifications (85) (3,331) (2,411) (5,827) Amounts reclassified 4,977 (4,473) — 504 Total other comprehensive income (loss), before tax 4,892 (7,804) (2,411) (5,323) Tax effect 181 1,932 1,572 3,685 Other comprehensive income (loss), net of tax 5,073 (5,872) (839) (1,638) Balance as of November 30, 2019, net of tax $ (167,405) $ 9,425 $ (70,591) $ (228,571) Other comprehensive income (loss), before tax: Amounts before reclassifications — (5,975) (8,540) (14,515) Amounts reclassified 4,977 (1,747) — 3,230 Total other comprehensive income (loss), before tax 4,977 (7,722) (8,540) (11,285) Tax effect (1,231) 1,910 21 700 Other comprehensive income (loss), net of tax 3,746 (5,812) (8,519) (10,585) Balance as of February 29, 2020, net of tax $ (163,659) $ 3,613 $ (79,110) $ (239,156) |
Schedule of Stockholders Equity | Changes in equities for the three and six months ended February 28, 2021, and February 29, 2020, are as follows: Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balances, August 31, 2020 $ 3,724,187 $ 28,727 $ 1,408,696 $ 2,264,038 $ (233,924) $ 1,618,147 $ 9,302 $ 8,819,173 Reversal of prior year redemption estimates 7,726 — — — — — — 7,726 Redemptions of equities (6,539) (31) (1,156) — — — — (7,726) Preferred stock dividends — — — — — (84,334) — (84,334) Other, net (654) (47) (197) — — (7,798) 35 (8,661) Net income (loss) — — — — — 69,671 (302) 69,369 Other comprehensive income, net of tax — — — — 8,917 — — 8,917 Estimated 2021 cash patronage refunds — — — — — (9,304) — (9,304) Estimated 2021 equity redemptions (9,304) — — — — — — (9,304) Balances, November 30, 2020 $ 3,715,416 $ 28,649 $ 1,407,343 $ 2,264,038 $ (225,007) $ 1,586,382 $ 9,035 $ 8,785,856 Reversal of prior year patronage and redemption estimates 4,760 — (211,970) — — 233,345 — 26,135 Distribution of 2020 patronage refunds — — 214,720 — — (236,136) — (21,416) Redemptions of equities (4,177) (35) (548) — — — — (4,760) Preferred stock dividends — — — — — (42,167) — (42,167) Other, net (26) — (15) — — 1,068 (361) 666 Net loss — — — — — (38,229) (129) (38,358) Other comprehensive income, net of tax — — — — 2,549 — — 2,549 Estimated 2021 cash patronage refunds — — — — — 5,639 — 5,639 Estimated 2021 equity redemptions 5,639 — — — — — — 5,639 Balances, February 28, 2021 $ 3,721,612 $ 28,614 $ 1,409,530 $ 2,264,038 $ (222,458) $ 1,509,902 $ 8,545 $ 8,719,783 Equity Certificates Accumulated Capital Nonpatronage Nonqualified Equity Certificates Preferred Capital Noncontrolling Total (Dollars in thousands) Balances, August 31, 2019 $ 3,753,493 $ 29,074 $ 1,206,310 $ 2,264,038 $ (226,933) $ 1,584,158 $ 7,390 $ 8,617,530 Reversal of prior year redemption estimates 5,447 — — — — — — 5,447 Redemptions of equities (4,721) (54) (672) — — — — (5,447) Preferred stock dividends — — — — — (84,334) — (84,334) ASC Topic 842 cumulative-effect adjustment — — — — — 33,707 — 33,707 Other, net (8) — (39) — — (1,312) 410 (949) Net income — — — — — 177,882 855 178,737 Other comprehensive loss, net of tax — — — — (1,638) — — (1,638) Estimated 2020 cash patronage refunds — — — — — (28,504) — (28,504) Estimated 2020 equity redemptions (91,633) — — — — — — (91,633) Balances, November 30, 2019 $ 3,662,578 $ 29,020 $ 1,205,599 $ 2,264,038 $ (228,571) $ 1,681,597 $ 8,655 $ 8,622,916 Reversal of prior year patronage and redemption estimates 3,387 — (472,398) — — 562,398 — 93,387 Distribution of 2019 patronage refunds — — 474,066 — — (564,096) — (90,030) Redemptions of equities (2,998) (20) (369) — — — — (3,387) Preferred stock dividends — — — — — (42,167) — (42,167) Other, net (201) — 3 — — 10 (324) (512) Net income — — — — — 125,447 247 125,694 Other comprehensive loss, net of tax — — — — (10,585) — — (10,585) Estimated 2020 cash patronage refunds — — — — — (22,206) — (22,206) Estimated 2020 equity redemptions (49,154) — — — — — — (49,154) Balances, February 29, 2020 $ 3,613,612 $ 29,000 $ 1,206,901 $ 2,264,038 $ (239,156) $ 1,740,983 $ 8,578 $ 8,623,956 |
Preferred Stock [Text Block] | Preferred Stock Dividends The following is a summary of dividends per share by series of preferred stock for the three and six months ended February 28, 2021, and February 29, 2020. Three Months Ended Six Months Ended Nasdaq symbol February 28, February 29, February 28, February 29, Series of preferred stock: (Dollars per share) 8% Cumulative Redeemable CHSCP $ 0.50 $ 0.50 $ 1.50 $ 1.50 Class B Cumulative Redeemable, Series 1 CHSCO $ 0.49 $ 0.49 $ 1.48 $ 1.48 Class B Reset Rate Cumulative Redeemable, Series 2 CHSCN $ 0.44 $ 0.44 $ 1.33 $ 1.33 Class B Reset Rate Cumulative Redeemable, Series 3 CHSCM $ 0.42 $ 0.42 $ 1.27 $ 1.27 Class B Cumulative Redeemable, Series 4 CHSCL $ 0.47 $ 0.47 $ 1.41 $ 1.41 |
Benefit Plans Schedule of Net B
Benefit Plans Schedule of Net Benefit Costs (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs of Assumptions Used | Components of net periodic benefit costs for the three and six months ended February 28, 2021, and February 29, 2020, are as follows: Three Months Ended Qualified Nonqualified Other Benefits February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 Components of net periodic benefit costs: (Dollars in thousands) Service cost $ 11,307 $ 10,538 $ 108 $ 101 $ 297 $ 262 Interest cost 4,141 5,431 68 107 123 187 Expected return on assets (10,910) (11,671) — — — — Prior service cost (credit) amortization 45 45 (28) (28) (111) (111) Actuarial loss (gain) amortization 5,447 5,396 53 25 (341) (348) Net periodic benefit cost (benefit) $ 10,030 $ 9,739 $ 201 $ 205 $ (32) $ (10) Six Months Ended Qualified Nonqualified Other Benefits February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 Components of net periodic benefit costs: (Dollars in thousands) Service cost $ 22,614 $ 21,076 $ 217 $ 203 $ 593 $ 525 Interest cost 8,281 10,861 136 214 246 374 Expected return on assets (21,821) (23,342) — — — — Prior service cost (credit) amortization 89 89 (57) (57) (223) (223) Actuarial loss (gain) amortization 10,895 10,791 106 49 (682) (696) Net periodic benefit cost (benefit) $ 20,058 $ 19,475 $ 402 $ 409 $ (66) $ (20) |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Reconciliation of gross and net fair values of assets and liabilities subject to offsetting arrangements | February 28, 2021 Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting Gross Amount Recognized Cash Collateral Derivative Instruments Net Amount (Dollars in thousands) Derivative Assets Commodity derivatives $ 980,141 $ — $ 18,849 $ 961,292 Foreign exchange derivatives 7,221 — 5,891 1,330 Embedded derivative asset 15,865 — — 15,865 Total $ 1,003,227 $ — $ 24,740 $ 978,487 Derivative Liabilities Commodity derivatives $ 515,002 $ 1,893 $ 19,964 $ 493,145 Foreign exchange derivatives 64,669 — 5,891 58,778 Total $ 579,671 $ 1,893 $ 25,855 $ 551,923 August 31, 2020 Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting Gross Amount Recognized Cash Collateral Derivative Instruments Net Amount (Dollars in thousands) Derivative Assets Commodity derivatives $ 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 |
Derivatives Not Designated as Hedging Instruments | The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Condensed Consolidated Statements of Operations for the three and six months ended February 28, 2021, and February 29, 2020. Three Months Ended Six Months Ended Location of Gain (Loss) February 28, February 29, February 28, February 29, (Dollars in thousands) Commodity derivatives Cost of goods sold $ (191,284) $ 100,268 $ (392,646) $ 142,942 Foreign exchange derivatives Cost of goods sold (30,881) (37,148) (8,240) (47,309) Foreign exchange derivatives Marketing, general and administrative expenses (435) 195 173 1,938 Embedded derivative Other income 302 348 1,866 1,917 Total $ (222,298) $ 63,663 $ (398,847) $ 99,488 |
Schedule of Derivative Instruments, Purchase and Sales Contracts | all outstanding commodity contracts. February 28, 2021 August 31, 2020 Long Short Long Short (Units in thousands) Grain and oilseed (bushels) 851,400 1,181,716 664,673 892,303 Energy products (barrels) 12,560 11,779 10,028 6,570 Processed grain and oilseed (tons) 609 2,320 657 3,304 Crop nutrients (tons) 2 177 74 127 Ocean freight (metric tons) 370 — 1,140 95 Natural gas (MMBtu) — 200 — — |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the line items on our Condensed Consolidated Balance Sheets in which they are recorded. Derivative Assets Derivative Liabilities Balance Sheet Location February 28, 2021 August 31, Balance Sheet Location February 28, 2021 August 31, (Dollars in thousands) (Dollars in thousands) Other current assets $ 11,008 $ 34,052 Other current liabilities $ 1,154 $ 8,821 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table presents the pretax losses recorded in other comprehensive income relating to cash flow hedges for the three and six months ended February 28, 2021, and February 29, 2020: Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, (Dollars in thousands) Commodity derivatives $ (2,084) $ (8,130) $ (110) $ (15,233) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the pretax gains relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Condensed Consolidated Statements of Operations for the three and six months ended February 28, 2021, and February 29, 2020: Three Months Ended Six Months Ended Location of Gain February 28, February 29, February 28, February 29, (Dollars in thousands) Commodity derivatives Cost of goods sold $ 4,082 $ 2,126 $ 16,755 $ 6,978 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | February 28, 2021 Quoted Prices in Significant Significant Total (Dollars in thousands) Assets Commodity derivatives $ 1,856 $ 989,293 $ — $ 991,149 Foreign exchange derivatives — 7,302 — 7,302 Deferred compensation assets 49,314 — — 49,314 Embedded derivative asset — 15,865 — 15,865 Segregated investments and marketable securities 185,224 — — 185,224 Other assets 5,991 — — 5,991 Total $ 242,385 $ 1,012,460 $ — $ 1,254,845 Liabilities Commodity derivatives $ 4,409 $ 511,748 $ — $ 516,157 Foreign exchange derivatives — 64,669 — 64,669 Total $ 4,409 $ 576,417 $ — $ 580,826 August 31, 2020 Quoted Prices in Significant Significant Total (Dollars in thousands) Assets Commodity derivatives $ 5,762 $ 355,783 $ — $ 361,545 Foreign exchange derivatives — 11,523 — 11,523 Deferred compensation assets 47,669 — — 47,669 Embedded derivative asset — 18,998 — 18,998 Segregated investments and marketable securities 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 exchange derivatives — 69,467 — 69,467 Total $ 6,037 $ 415,593 $ — $ 421,630 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Lease expense is recognized on a straight-line basis over the lease term. The components of lease expense recognized in our Condensed Consolidated Statements of Operations are as follows: Three Months Ended Six Months Ended February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 (Dollars in thousands) Operating lease expense $ 18,060 $ 20,538 $ 35,974 $ 36,098 Finance lease expense: Amortization of assets 1,890 1,073 3,945 3,262 Interest on lease liabilities 230 261 476 485 Short-term lease expense 4,068 6,317 8,424 9,660 Variable lease expense 863 710 1,541 913 Total net lease expense* $ 25,111 $ 28,899 $ 50,360 $ 50,418 *Income related to sub-lease activity is not material and has been excluded from the table above. |
Lease Balance Sheet disclosure [Table Text Block] | Supplemental balance sheet information related to operating and finance leases is as follows: Balance Sheet Location February 28, 2021 August 31, 2020 (Dollars in thousands) Operating leases Assets Operating lease right of use assets Other assets $ 265,684 $ 257,834 Liabilities Current operating lease liabilities Accrued expenses 58,766 57,200 Long-term operating lease liabilities Other liabilities 210,440 203,691 Total operating lease liabilities $ 269,206 $ 260,891 Finance leases Assets Finance lease assets Property, plant and equipment $ 40,502 $ 44,860 Liabilities Current finance lease liabilities Current portion of long-term debt 6,827 7,993 Long-term finance lease liabilities Long-term debt 20,379 23,467 Total finance lease liabilities $ 27,206 $ 31,460 Weighted average remaining lease term (in years) Operating leases 8.1 8.3 Finance leases 6.2 6.0 Weighted average discount rate Operating leases 3.05 % 3.11 % Finance leases 3.37 % 3.33 % |
Lease Cash flow and other information disclosure [Table Text Block] | Supplemental cash flow and other information related to operating and finance leases are as follows: Six Months Ended February 28, 2021 February 29, 2020 (Dollars in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 37,460 $ 28,368 Operating cash flows from finance leases 476 485 Financing cash flows from finance leases 4,602 3,285 Supplemental noncash information: Right of use assets obtained in exchange for lease liabilities 27,919 18,162 Right of use asset modifications 18,038 3,967 |
Lease liability maturity [Table Text Block] | Maturities of lease liabilities as of February 28, 2021, were as follows: February 28, 2021 Finance Leases Operating Leases (Dollars in thousands) Remainder of fiscal 2021 $ 3,775 $ 35,958 Fiscal 2022 7,051 62,491 Fiscal 2023 6,121 48,834 Fiscal 2024 3,494 38,956 Fiscal 2025 2,086 28,928 After fiscal 2025 8,113 105,485 Total maturities of lease liabilities 30,640 320,652 Less amounts representing interest 3,434 51,446 Present value of future minimum lease payments 27,206 269,206 Less current lease liabilities 6,827 58,766 Long-term lease liabilities $ 20,379 $ 210,440 |
Other Current Assets and Liab_2
Other Current Assets and Liabilities (table) | 6 Months Ended |
Feb. 28, 2021 | |
Other current assets and liabilities [Abstract] | |
Other current assets and liabilities Table Text block [Table] | Other current assets and liabilities as of February 28, 2021, and August 31, 2020, are as follows: February 28, August 31, Other current assets (Dollars in thousands) Derivative assets (Note 11) $ 999,072 $ 371,195 Margin and related deposits 328,849 194,097 Supplier advance payments 515,663 198,699 Other 306,666 253,497 Total other current assets $ 2,150,250 $ 1,017,488 Other current liabilities Customer margin deposits and credit balances $ 218,217 $ 149,539 Customer advance payments 1,084,039 300,100 Derivative liabilities (Note 11) 576,543 416,204 Dividends and equity payable 69,982 63,000 Total other current liabilities $ 1,948,781 $ 928,843 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue recognized | $ 19.9 | $ 39.6 | $ 91.6 | $ 131.6 | |
Contract liabilities | $ 783.2 | $ 783.2 | $ 139.1 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 8,320,159 | $ 6,598,226 | $ 17,035,802 | $ 14,219,711 |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,372,158 | 1,461,050 | 2,630,005 | 3,356,473 |
Ag | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,938,212 | 5,124,202 | 14,383,614 | 10,836,057 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,789 | 12,974 | 22,183 | 27,181 |
ASC Topic 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,417,018 | 2,448,031 | 4,832,941 | 5,506,045 |
ASC Topic 606 | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,243,072 | 1,375,905 | 2,308,036 | 3,069,753 |
ASC Topic 606 | Ag | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,169,411 | 1,066,783 | 2,513,910 | 2,425,409 |
ASC Topic 606 | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,535 | 5,343 | 10,995 | 10,883 |
ASC Topic 815 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,882,419 | 4,120,592 | 12,162,541 | 8,638,254 |
ASC Topic 815 | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 129,086 | 85,145 | 321,969 | 286,720 |
ASC Topic 815 | Ag | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,753,333 | 4,035,447 | 11,840,572 | 8,351,534 |
ASC Topic 815 | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Other Guidance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,722 | 29,603 | 40,320 | 75,412 |
Other Guidance | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Other Guidance | Ag | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,468 | 21,972 | 29,132 | 59,114 |
Other Guidance | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5,254 | $ 7,631 | $ 11,188 | $ 16,298 |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,650,031 | $ 1,476,585 |
CHS Capital short-term notes receivable | 442,172 | 563,934 |
Other | 392,769 | 491,068 |
Receivables, gross | 2,484,972 | 2,531,587 |
Less: allowances and reserves | 148,052 | 165,540 |
Total receivables | $ 2,336,920 | $ 2,366,047 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Feb. 28, 2021 | Aug. 31, 2020 | |
Notes Receivable, Long-Term | ||
CHS Capital long-term notes receivable additional available credit of counterparty | $ 618 | |
CHS Capital Notes Receivable [Member] | ||
Notes Receivable, Long-Term | ||
CHS Capital long-term notes receivable, non-current, term | 10 years | |
CHS Capital long-term notes receivable | $ 93 | $ 101.5 |
Commercial Notes to Notes and Loans Receivable, Net, Percentage | 67.00% | 33.00% |
Producer Notes to Notes and Loans Receivable, Net, Percentage | 33.00% | 67.00% |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Grain and oilseed | $ 1,927,931 | $ 1,064,079 |
Energy | 714,798 | 696,858 |
Agronomy | 1,403,480 | 822,535 |
Processed grain and oilseed | 155,492 | 126,022 |
Other | 44,350 | 32,644 |
Total inventories | $ 4,246,051 | $ 2,742,138 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Feb. 28, 2021 | Aug. 31, 2020 |
Inventory Disclosure [Abstract] | ||
LIFO inventory, difference amount had FIFO inventory valuation method been used | $ 284.3 | $ 93.5 |
Percentage of LIFO inventory | 11.00% | 16.00% |
Inventory [Line Items] | ||
Percentage of LIFO inventory | 11.00% | 16.00% |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity income from investments | $ (64,109) | $ (34,398) | $ (114,132) | $ (84,060) | |
Cost Method Investments | 131,376 | 131,376 | $ 123,955 | ||
Investments | 3,639,453 | 3,639,453 | 3,630,033 | ||
Investment Company, Distributable Earnings | $ 394,000 | 394,000 | |||
CF Nitrogen LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments to Acquire Equity Method Investments | $ 2,700,000 | ||||
Ownership percentage | 10.00% | 10.00% | |||
Equity Method Investments | $ 2,651,652 | $ 2,651,652 | 2,662,618 | ||
Ventura Foods, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 374,895 | $ 374,895 | 381,351 | ||
TEMCO, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | |||
Ardent Mills LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 12.00% | 12.00% | |||
Equity Method Investments | $ 215,942 | $ 215,942 | $ 208,927 | ||
Nitrogen Production [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity income from investments | $ (31,344) | (27,923) | $ (53,033) | (62,757) | |
Foods [Member] | Ventura Foods, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | |||
Corporate and Other | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity income from investments | $ (14,988) | (10,538) | $ (32,660) | (29,159) | |
Ag | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity income from investments | $ (16,945) | $ 4,672 | $ (27,118) | $ 8,829 |
Investments Equity Method inves
Investments Equity Method investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Feb. 28, 2021 | Nov. 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Cost Method Investments | $ 131,376 | $ 131,376 | $ 123,955 | ||||
Net income (loss) attributable to CHS Inc. | (38,229) | $ 125,447 | 31,442 | $ 303,329 | |||
Gross Profit | 101,720 | 315,055 | 279,824 | 640,598 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (38,358) | $ 69,369 | $ 125,694 | $ 178,737 | 31,011 | 304,431 | |
Other Equity Method Investments [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 265,588 | 265,588 | 253,182 | ||||
CF Nitrogen LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 2,651,652 | 2,651,652 | 2,662,618 | ||||
Net income (loss) attributable to CHS Inc. | 53,033 | 62,757 | |||||
Revenues | 1,285,625 | 1,297,018 | |||||
Gross Profit | 321,565 | 297,630 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 297,297 | 280,599 | |||||
Ventura Foods, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 374,895 | 374,895 | 381,351 | ||||
Net income (loss) attributable to CHS Inc. | 21,310 | 22,557 | |||||
Revenues | 1,107,024 | 1,229,151 | |||||
Gross Profit | 134,311 | 150,818 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 42,620 | 45,117 | |||||
Ardent Mills LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | $ 215,942 | 215,942 | $ 208,927 | ||||
TEMCO and Ardent Mills | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Net income (loss) attributable to CHS Inc. | 30,419 | (3,879) | |||||
Revenues | 4,395,607 | 3,070,160 | |||||
Gross Profit | 287,843 | 170,294 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 145,783 | $ 44,145 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt - Schedule of Notes Payable and Long-Term Debt (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Debt Instrument [Line Items] | ||
Notes payable | $ 2,952,392 | $ 1,575,491 |
Notes payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 2,249,275 | 763,215 |
CHS Capital notes payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 703,117 | $ 812,276 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | Aug. 14, 2020 | |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 28,855 | $ 33,411 | $ 53,900 | $ 68,400 | ||
Capitalized interest | 2,100 | 3,400 | 4,200 | 6,200 | ||
Interest Expense | 28,855 | $ 33,411 | 53,905 | $ 68,382 | ||
Principal Amount Outstanding of Loans Held-in-portfolio | 538,000 | 538,000 | ||||
increase to maximum availability under securitization | 600,000 | $ 600,000 | ||||
maximum availability under securitization | $ 500,000 | |||||
Notes Purchase Agreement | $ 375,000 | |||||
Five-Year Revolving Facilities | Line of Credit | Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 5 years | |||||
Current borrowing capacity | 2,750,000 | $ 2,750,000 | ||||
Outstanding balance | 1,300,000 | 1,300,000 | $ 345,000 | |||
Repurchase Facility | Subordinated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding balance | 150,000 | 150,000 | ||||
Maximum borrowing capacity | 150,000 | 150,000 | ||||
Term loans from cooperatives and other banks, 430K payable in 2025 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 366,000 | $ 366,000 |
Equities Changes in Equity (Det
Equities Changes in Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2021 | Nov. 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Feb. 28, 2021 | Feb. 29, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ 8,785,856 | $ 8,819,173 | $ 8,622,916 | $ 8,617,530 | $ 8,819,173 | $ 8,617,530 |
Reversal of prior year patronage and redemption estimates | 26,135 | 7,726 | 93,387 | 5,447 | ||
patronage refund | (21,416) | (90,030) | ||||
Redemptions of equities | (4,760) | (7,726) | (3,387) | (5,447) | ||
Preferred stock dividends | (42,167) | (84,334) | (42,167) | (84,334) | ||
ASC Topic 842 cumulative effect adjustment | 33,707 | |||||
Other, net | 666 | (8,661) | (512) | (949) | ||
Net income (loss) | (38,358) | 69,369 | 125,694 | 178,737 | 31,011 | 304,431 |
Net income (loss) attributable to CHS Inc. | (38,229) | 125,447 | 31,442 | 303,329 | ||
Net (loss) income attributable to noncontrolling interests | (129) | 247 | (431) | 1,102 | ||
Other comprehensive income, net of tax | 2,549 | 8,917 | (10,585) | (1,638) | 11,466 | (12,223) |
Estimated 2021 cash patronage refunds | 5,639 | (9,304) | (22,206) | (28,504) | ||
Estimated 2021 equity redemptions | 5,639 | (9,304) | (49,154) | (91,633) | ||
Ending Balance | 8,719,783 | 8,785,856 | 8,623,956 | 8,622,916 | 8,719,783 | 8,623,956 |
Capital equity certificates [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 3,715,416 | 3,724,187 | 3,662,578 | 3,753,493 | 3,724,187 | 3,753,493 |
Reversal of prior year patronage and redemption estimates | 4,760 | 7,726 | 3,387 | 5,447 | ||
Redemptions of equities | (4,177) | (6,539) | (2,998) | (4,721) | ||
Other, net | (26) | (654) | (201) | (8) | ||
Estimated 2021 equity redemptions | 5,639 | (9,304) | (49,154) | (91,633) | ||
Ending Balance | 3,721,612 | 3,715,416 | 3,613,612 | 3,662,578 | 3,721,612 | 3,613,612 |
Nonpatronage Equity Certificates [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 28,649 | 28,727 | 29,020 | 29,074 | 28,727 | 29,074 |
Reversal of prior year patronage and redemption estimates | 0 | 0 | 0 | 0 | ||
Redemptions of equities | (35) | (31) | (20) | (54) | ||
Other, net | (47) | |||||
Ending Balance | 28,614 | 28,649 | 29,000 | 29,020 | 28,614 | 29,000 |
Non-qualified Equity Certificates [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 1,407,343 | 1,408,696 | 1,205,599 | 1,206,310 | 1,408,696 | 1,206,310 |
Reversal of prior year patronage and redemption estimates | (211,970) | 0 | (472,398) | 0 | ||
patronage refund | 214,720 | 474,066 | ||||
Redemptions of equities | (548) | (1,156) | (369) | (672) | ||
Other, net | (15) | (197) | 3 | (39) | ||
Ending Balance | 1,409,530 | 1,407,343 | 1,206,901 | 1,205,599 | 1,409,530 | 1,206,901 |
Preferred Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 2,264,038 | 2,264,038 | 2,264,038 | 2,264,038 | 2,264,038 | 2,264,038 |
Redemptions of equities | 0 | 0 | 0 | 0 | ||
Ending Balance | 2,264,038 | 2,264,038 | 2,264,038 | 2,264,038 | 2,264,038 | 2,264,038 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | (225,007) | (233,924) | (228,571) | (226,933) | (233,924) | (226,933) |
Other comprehensive income, net of tax | 2,549 | 8,917 | (10,585) | (1,638) | ||
Ending Balance | (222,458) | (225,007) | (239,156) | (228,571) | (222,458) | (239,156) |
Capital Reserves [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 1,586,382 | 1,618,147 | 1,681,597 | 1,584,158 | 1,618,147 | 1,584,158 |
Reversal of prior year patronage and redemption estimates | 233,345 | 0 | 562,398 | 0 | ||
patronage refund | (236,136) | (564,096) | ||||
Preferred stock dividends | (42,167) | (84,334) | (42,167) | (84,334) | ||
Other, net | 1,068 | (7,798) | 10 | (1,312) | ||
Net income (loss) attributable to CHS Inc. | (38,229) | 69,671 | 125,447 | 177,882 | ||
Estimated 2021 cash patronage refunds | 5,639 | (9,304) | (22,206) | (28,504) | ||
Ending Balance | 1,509,902 | 1,586,382 | 1,740,983 | 1,681,597 | 1,509,902 | 1,740,983 |
Noncontrolling Interest [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 9,035 | 9,302 | 8,655 | 7,390 | 9,302 | 7,390 |
Other, net | (361) | 35 | (324) | 410 | ||
Net (loss) income attributable to noncontrolling interests | (129) | (302) | 247 | 855 | ||
Ending Balance | $ 8,545 | $ 9,035 | $ 8,578 | 8,655 | $ 8,545 | $ 8,578 |
Accounting Standards Update 2016-02 [Member] | Capital equity certificates [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ASC Topic 842 cumulative effect adjustment | 0 | |||||
Accounting Standards Update 2016-02 [Member] | Nonpatronage Equity Certificates [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ASC Topic 842 cumulative effect adjustment | 0 | |||||
Accounting Standards Update 2016-02 [Member] | Non-qualified Equity Certificates [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ASC Topic 842 cumulative effect adjustment | 0 | |||||
Accounting Standards Update 2016-02 [Member] | Preferred Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ASC Topic 842 cumulative effect adjustment | 0 | |||||
Accounting Standards Update 2016-02 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ASC Topic 842 cumulative effect adjustment | 0 | |||||
Accounting Standards Update 2016-02 [Member] | Capital Reserves [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ASC Topic 842 cumulative effect adjustment | 33,707 | |||||
Accounting Standards Update 2016-02 [Member] | Noncontrolling Interest [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ASC Topic 842 cumulative effect adjustment | $ 0 |
Equities Accumulated Other Comp
Equities Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2021 | Nov. 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Feb. 28, 2021 | Feb. 29, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | $ 8,785,856 | $ 8,819,173 | $ 8,622,916 | $ 8,617,530 | $ 8,819,173 | $ 8,617,530 |
Other comprehensive income (loss), net of tax | 2,549 | 8,917 | (10,585) | (1,638) | 11,466 | (12,223) |
Ending Balance | 8,719,783 | 8,785,856 | 8,623,956 | 8,622,916 | 8,719,783 | 8,623,956 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (156,035) | (159,680) | (167,405) | (172,478) | (159,680) | (172,478) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | (125) | 0 | (85) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 5,151 | 4,977 | 4,977 | 4,977 | ||
Other Comprehensive Income (Loss), before Tax | 5,151 | 4,852 | 4,977 | 4,892 | ||
Other Comprehensive Income (Loss), Tax | (1,282) | (1,207) | (1,231) | 181 | ||
Other comprehensive income (loss), net of tax | 3,869 | 3,645 | 3,746 | 5,073 | ||
Ending Balance | (152,166) | (156,035) | (163,659) | (167,405) | (152,166) | (163,659) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | 12,555 | 10,886 | 9,425 | 15,297 | 10,886 | 15,297 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 2,929 | 14,506 | (5,975) | (3,331) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (3,673) | (12,284) | (1,747) | (4,473) | ||
Other Comprehensive Income (Loss), before Tax | (744) | 2,222 | (7,722) | (7,804) | ||
Other Comprehensive Income (Loss), Tax | 185 | (553) | 1,910 | 1,932 | ||
Other comprehensive income (loss), net of tax | (559) | 1,669 | (5,812) | (5,872) | ||
Ending Balance | 11,996 | 12,555 | 3,613 | 9,425 | 11,996 | 3,613 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (81,527) | (85,130) | (70,591) | (69,752) | (85,130) | (69,752) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (587) | 3,629 | (8,540) | (2,411) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 0 | ||
Other Comprehensive Income (Loss), before Tax | (587) | 3,629 | (8,540) | (2,411) | ||
Other Comprehensive Income (Loss), Tax | (174) | (26) | 21 | 1,572 | ||
Other comprehensive income (loss), net of tax | (761) | 3,603 | (8,519) | (839) | ||
Ending Balance | (82,288) | (81,527) | (79,110) | (70,591) | (82,288) | (79,110) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (225,007) | (233,924) | (228,571) | (226,933) | (233,924) | (226,933) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 2,342 | 18,010 | (14,515) | (5,827) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,478 | (7,307) | 3,230 | 504 | ||
Other Comprehensive Income (Loss), before Tax | 3,820 | 10,703 | (11,285) | (5,323) | ||
Other Comprehensive Income (Loss), Tax | (1,271) | (1,786) | 700 | 3,685 | ||
Other comprehensive income (loss), net of tax | 2,549 | 8,917 | (10,585) | (1,638) | ||
Ending Balance | $ (222,458) | $ (225,007) | $ (239,156) | $ (228,571) | $ (222,458) | $ (239,156) |
Equities Dividends Per Share (D
Equities Dividends Per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
8% Cumulative Redeemable [Member] | ||||
8% Cumulative Redeemable [Line Items] | ||||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 0.50 | $ 0.50 | $ 1.50 | $ 1.50 |
Class B, Series 1 Preferred Stock [Member] | ||||
8% Cumulative Redeemable [Line Items] | ||||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | 0.49 | 0.49 | 1.48 | 1.48 |
Class B, Series 2 Preferred Stock [Member] | ||||
8% Cumulative Redeemable [Line Items] | ||||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | 0.44 | 0.44 | 1.33 | 1.33 |
Class B, Series 3 Preferred Stock [Member] | ||||
8% Cumulative Redeemable [Line Items] | ||||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | 0.42 | 0.42 | 1.27 | 1.27 |
Class B, Series 4 Preferred Stock [Member] | ||||
8% Cumulative Redeemable [Line Items] | ||||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $ 0.47 | $ 0.47 | $ 1.41 | $ 1.41 |
Benefit Plans - Net Periodic Be
Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Qualified Pension Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | $ 11,307 | $ 10,538 | $ 22,614 | $ 21,076 |
Interest cost | 4,141 | 5,431 | 8,281 | 10,861 |
Expected return on assets | (10,910) | (11,671) | (21,821) | (23,342) |
Prior service cost (credit) amortization | 45 | 45 | 89 | 89 |
Actuarial loss (gain) amortization | 5,447 | 5,396 | 10,895 | 10,791 |
Net periodic benefit cost (benefit) | 10,030 | 9,739 | 20,058 | 19,475 |
Non-Qualified Pension Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | 108 | 101 | 217 | 203 |
Interest cost | 68 | 107 | 136 | 214 |
Expected return on assets | 0 | 0 | 0 | 0 |
Prior service cost (credit) amortization | (28) | (28) | (57) | (57) |
Actuarial loss (gain) amortization | 53 | 25 | 106 | 49 |
Net periodic benefit cost (benefit) | 201 | 205 | 402 | 409 |
Other Benefits | ||||
Component of net periodic benefit costs: [Abstract] | ||||
Service cost | 297 | 262 | 593 | 525 |
Interest cost | 123 | 187 | 246 | 374 |
Expected return on assets | 0 | 0 | 0 | 0 |
Prior service cost (credit) amortization | (111) | (111) | (223) | (223) |
Actuarial loss (gain) amortization | (341) | (348) | (682) | (696) |
Net periodic benefit cost (benefit) | $ (32) | $ (10) | $ (66) | $ (20) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate Reconciliation, Percent | (473.40%) | 1.70% | 19.10% | 2.80% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 129.8 | $ 129.8 | $ 111.3 |
Segment Reporting - Segment Inf
Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 8,320,159 | $ 6,598,226 | $ 17,035,802 | $ 14,219,711 | |
Revenue From Contract With Customer Net of Intersegment Revenue Excluding Assessed Tax | 8,320,159 | 6,598,226 | 17,035,802 | 14,219,711 | |
Operating earnings (loss) | (59,790) | 115,485 | (52,347) | 272,697 | |
Interest Expense | 28,855 | 33,411 | 53,905 | 68,382 | |
Other income | (17,846) | (11,352) | (30,470) | (24,850) | |
Equity income from investments | (64,109) | (34,398) | (114,132) | (84,060) | |
Income (loss) before income taxes | (6,690) | 127,824 | 38,350 | 313,225 | |
Total assets | 18,566,143 | 18,566,143 | $ 15,993,947 | ||
Energy | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, including intersegment revenues | 1,470,465 | 1,561,908 | 2,828,310 | 3,589,803 | |
Revenues | 1,372,158 | 1,461,050 | 2,630,005 | 3,356,473 | |
Intersegment Revenue | (98,307) | (100,858) | (198,305) | (233,330) | |
Revenue From Contract With Customer Net of Intersegment Revenue Excluding Assessed Tax | 1,372,158 | 1,461,050 | 2,630,005 | 3,356,473 | |
Operating earnings (loss) | (55,449) | 137,187 | (123,834) | 298,386 | |
Interest Income, Operating | 1,063 | ||||
Interest Expense | (187) | 826 | 187 | ||
Other income | (990) | (938) | (1,472) | (1,902) | |
Equity income from investments | (832) | (609) | (1,321) | (973) | |
Income (loss) before income taxes | (54,690) | 138,921 | (121,867) | 301,074 | |
Total assets | 4,415,250 | 4,415,250 | |||
Ag | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, including intersegment revenues | 6,942,185 | 5,127,441 | 14,392,490 | 10,843,434 | |
Revenues | 6,938,212 | 5,124,202 | 14,383,614 | 10,836,057 | |
Intersegment Revenue | (3,973) | (3,239) | (8,876) | (7,377) | |
Revenue From Contract With Customer Net of Intersegment Revenue Excluding Assessed Tax | 6,938,212 | 5,124,202 | 14,383,614 | 10,836,057 | |
Operating earnings (loss) | 2,093 | (6,809) | 77,617 | (7,226) | |
Interest Expense | 16,630 | 20,759 | 31,135 | 41,500 | |
Other income | (11,636) | (11,395) | (23,453) | (22,848) | |
Equity income from investments | (16,945) | 4,672 | (27,118) | 8,829 | |
Income (loss) before income taxes | 14,044 | (20,845) | 97,053 | (34,707) | |
Total assets | 8,687,820 | 8,687,820 | |||
Nitrogen Production [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, including intersegment revenues | 0 | 0 | 0 | 0 | |
Intersegment Revenue | 0 | 0 | 0 | 0 | |
Revenue From Contract With Customer Net of Intersegment Revenue Excluding Assessed Tax | 0 | 0 | |||
Operating earnings (loss) | (8,240) | (10,559) | (15,862) | (18,381) | |
Interest Expense | 12,241 | 11,971 | 23,403 | 24,101 | |
Other income | (302) | (348) | (1,867) | (1,916) | |
Equity income from investments | (31,344) | (27,923) | (53,033) | (62,757) | |
Income (loss) before income taxes | 11,165 | 5,741 | 15,635 | 22,191 | |
Total assets | 2,667,517 | 2,667,517 | |||
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, including intersegment revenues | 12,046 | 14,049 | 27,528 | 29,999 | |
Revenues | 9,789 | 12,974 | 22,183 | 27,181 | |
Intersegment Revenue | (2,257) | (1,075) | (5,345) | (2,818) | |
Revenue From Contract With Customer Net of Intersegment Revenue Excluding Assessed Tax | 9,789 | 12,974 | 22,183 | 27,181 | |
Operating earnings (loss) | 1,806 | (4,334) | 9,732 | (82) | |
Interest Expense | 7 | 3,032 | 1,145 | 6,870 | |
Other income | (6,004) | (835) | (6,282) | (2,460) | |
Equity income from investments | (14,988) | (10,538) | (32,660) | (29,159) | |
Income (loss) before income taxes | 22,791 | 4,007 | 47,529 | 24,667 | |
Total assets | 2,795,556 | 2,795,556 | |||
Other Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (104,537) | (105,172) | (212,526) | (243,525) | |
Intersegment Revenue | 104,537 | 105,172 | 212,526 | 243,525 | |
Revenue From Contract With Customer Net of Intersegment Revenue Excluding Assessed Tax | 0 | 0 | |||
Operating earnings (loss) | 0 | 0 | 0 | 0 | |
Interest Expense | (1,086) | (2,164) | (2,604) | (4,276) | |
Other income | 1,086 | 2,164 | 2,604 | 4,276 | |
Equity income from investments | 0 | 0 | 0 | 0 | |
Income (loss) before income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
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 | Feb. 28, 2021 | Aug. 31, 2020 |
Reconciliation of gross and net fair value of assets and liabilities subject to offsetting arrangements [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,003,227 | $ 358,300 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 978,487 | 345,935 |
Derivative Liability, Fair Value, Gross Liability | 579,671 | 412,809 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 551,923 | 396,890 |
Not Designated as Hedging Instrument | Commodity derivatives | ||
Reconciliation of gross and net fair value of assets and liabilities subject to offsetting arrangements [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 980,141 | 327,493 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 961,292 | 324,513 |
Derivative Liability, Fair Value, Gross Liability | 515,002 | 343,343 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 493,145 | 336,809 |
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] | ||
Derivative Asset, Fair Value, Gross Asset | 7,221 | 11,809 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 1,330 | 2,424 |
Derivative Liability, Fair Value, Gross Liability | 64,669 | 69,466 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 58,778 | 60,081 |
Not Designated as Hedging Instrument | Embedded Derivative Financial Instruments [Member] | ||
Reconciliation of gross and net fair value of assets and liabilities subject to offsetting arrangements [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 15,865 | 18,998 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 15,865 | $ 18,998 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Purchase and Sale Contracts (Details) - Not Designated as Hedging Instrument t in Thousands, T in Thousands, MMBtu in Thousands, Bushels in Thousands, Barrels in Thousands | Feb. 28, 2021MMBtuBushelsBarrelsTt | Aug. 31, 2020BarrelsTBushelstMMBtu |
Grain and oilseed (bushels) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 851,400 | 664,673 |
Grain and oilseed (bushels) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bushels | 1,181,716 | 892,303 |
Energy products (barrels) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 12,560 | 10,028 |
Energy products (barrels) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Barrels | 11,779 | 6,570 |
Processed grain and oilseed (tons) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 609 | 657 |
Processed grain and oilseed (tons) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2,320 | 3,304 |
Crop nutrients (tons) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2 | 74 |
Crop nutrients (tons) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 177 | 127 |
Ocean Freight Contracts [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 370 | 1,140 |
Ocean Freight Contracts [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | t | 0 | 95 |
Natural gas (MMBtu) | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 0 | 0 |
Natural gas (MMBtu) | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBtu | 200 | 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Derivatives (Details) $ in Thousands, bbl in Millions | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2021USD ($)bbl | Feb. 29, 2020USD ($) | Aug. 31, 2020USD ($)bbl | |
Derivative [Line Items] | |||
Derivative Liability, Noncurrent | $ 4,300 | $ 5,400 | |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 978,487 | 345,935 | |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 24,740 | 12,365 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 551,923 | 396,890 | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 1,893 | 956 | |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 25,855 | 14,963 | |
Embedded Derivative, Gain on Embedded Derivative | 1,900 | $ 1,900 | |
Derivative Asset, Noncurrent, Excluding Fair Value Hedges | 15,200 | 21,200 | |
CF Nitrogen LLC [Member] | |||
Derivative [Line Items] | |||
Annual Payment Receivable Contingent On Investment Credit Rating | 5,000 | ||
Embedded derivative asset | 15,900 | ||
Foreign exchange derivatives | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 1,330 | 2,424 | |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 5,891 | 9,385 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 58,778 | 60,081 | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | 5,891 | 9,385 | |
Derivative, Notional Amount | 1,400,000 | 1,200,000 | |
Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 15,865 | 18,998 | |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 0 | 0 | |
Commodity derivatives | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 961,292 | 324,513 | |
Derivative Asset, Fair Value, Gross Amount Not Offset on Balance Sheet | 18,849 | 2,980 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 493,145 | 336,809 | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 1,893 | 956 | |
Derivative Liability, Fair Value, Gross Amount Not Offset on Balance Sheet | $ 19,964 | $ 5,578 | |
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount of cash flow hedges (in barrels) | bbl | 1.5 | 9.7 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities - Pretax Gains (Losses) On Derivatives Not Accounted For As Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (222,298) | $ 63,663 | $ (398,847) | $ 99,488 |
Commodity derivatives | Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (191,284) | 100,268 | (392,646) | 142,942 |
Foreign exchange derivatives | Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (30,881) | (37,148) | (8,240) | (47,309) |
Foreign exchange derivatives | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (435) | 195 | 173 | 1,938 |
Embedded Derivative Financial Instruments [Member] | Other Income [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 302 | $ 348 | $ 1,866 | $ 1,917 |
Derivative Financial Instrume_7
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 579,671 | $ 412,809 |
Derivative Financial Instrume_8
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instruments, Effect on Earnings (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,003,227 | $ 358,300 |
Derivative Financial Instrume_9
Derivative Financial Instruments and Hedging Activities - Fair Value of Commodity Derivative Instruments (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 579,671 | $ 412,809 |
Derivative Asset, Fair Value, Gross Asset | 1,003,227 | 358,300 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1,154 | 8,821 |
Derivative Asset, Fair Value, Gross Asset | $ 11,008 | $ 34,052 |
Derivative Financial Instrum_10
Derivative Financial Instruments and Hedging Activities - Commodity Derivatives (Details) - Commodity derivatives - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Cost of goods sold | ||||
Derivative [Line Items] | ||||
Pretax gains (losses) reclassified from AOCI related to cash flow hedges | $ 4,082 | $ 2,126 | $ 16,755 | $ 6,978 |
Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Pretax gains (losses) recorded in OCI related to cash flow hedges | $ (2,084) | $ (8,130) | $ (110) | $ (15,233) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | $ 49,314 | $ 47,669 |
Embedded derivative asset | 15,865 | 18,998 |
Securities Segregated under Other Regulations | 185,224 | 85,950 |
Other assets | 5,991 | 5,276 |
Total assets | 1,254,845 | 530,961 |
Foreign exchange derivatives | 69,467 | |
Total liabilities | 580,826 | 421,630 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 49,314 | 47,669 |
Embedded derivative asset | 0 | 0 |
Securities Segregated under Other Regulations | 185,224 | 85,950 |
Other assets | 5,991 | 5,276 |
Total assets | 242,385 | 144,657 |
Foreign exchange derivatives | 0 | |
Total liabilities | 4,409 | 6,037 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Embedded derivative asset | 15,865 | 18,998 |
Securities Segregated under Other Regulations | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 1,012,460 | 386,304 |
Foreign exchange derivatives | 69,467 | |
Total liabilities | 576,417 | 415,593 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Embedded derivative asset | 0 | 0 |
Securities Segregated under Other Regulations | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Foreign exchange derivatives | 0 | |
Total liabilities | 0 | 0 |
Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 991,149 | 361,545 |
Derivative Liability | 516,157 | 352,163 |
Commodity derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1,856 | 5,762 |
Derivative Liability | 4,409 | 6,037 |
Commodity derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 989,293 | 355,783 |
Derivative Liability | 511,748 | 346,126 |
Commodity derivatives | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivatives | 7,302 | 11,523 |
Foreign exchange derivatives | 64,669 | |
Foreign exchange derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivatives | 0 | 0 |
Foreign exchange derivatives | 0 | |
Foreign exchange derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivatives | 7,302 | 11,523 |
Foreign exchange derivatives | 64,669 | |
Foreign exchange derivatives | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivatives | 0 | $ 0 |
Foreign exchange derivatives | $ 0 |
Commitments and Contingencies G
Commitments and Contingencies Guarantees (Details) $ in Millions | Feb. 28, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure, undiscounted | $ 181.3 |
Maximum guarantees allowed by bank covenants | $ 1,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | |
Leases [Abstract] | |||||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 3,775 | $ 3,775 | |||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 35,958 | 35,958 | |||
Operating Lease, Payments | 37,460 | $ 28,368 | |||
Operating Lease, Right-of-Use Asset | 265,684 | 265,684 | $ 257,834 | ||
Operating Lease, Expense | 18,060 | $ 20,538 | 35,974 | 36,098 | |
Finance Lease, Right-of-Use Asset, Amortization | 1,890 | 1,073 | 3,945 | 3,262 | |
Finance Lease, Interest Expense | 230 | 261 | 476 | 485 | |
Short-term Lease, Cost | 4,068 | 6,317 | 8,424 | 9,660 | |
Variable Lease, Cost | 863 | 710 | 1,541 | 913 | |
Lease, Cost | 25,111 | $ 28,899 | 50,360 | 50,418 | |
Operating Lease, Liability | 269,206 | 269,206 | 260,891 | ||
Finance Lease, Right-of-Use Asset | 40,502 | 40,502 | 44,860 | ||
Finance Lease, Liability, Current | 6,827 | 6,827 | 7,993 | ||
Operating Lease, Liability, Current | 58,766 | 58,766 | 57,200 | ||
Finance Lease, Liability, Noncurrent | 20,379 | 20,379 | 23,467 | ||
Finance Lease, Liability | $ 27,206 | $ 27,206 | $ 31,460 | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 1 month 6 days | 8 years 1 month 6 days | 8 years 3 months 18 days | ||
Finance Lease, Weighted Average Remaining Lease Term | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.05% | 3.05% | 3.11% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 3.37% | 3.37% | 3.33% | ||
Finance Lease, Interest Payment on Liability | $ 476 | 485 | |||
Finance Lease, Principal Payments | 4,602 | 3,285 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 27,919 | 18,162 | |||
Finance Lease, Liability, Payments, Due Next Twelve Months | $ 7,051 | 7,051 | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 62,491 | 62,491 | |||
Finance Lease, Liability, Payments, Due Year Two | 6,121 | 6,121 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 48,834 | 48,834 | |||
Finance Lease, Liability, Payments, Due Year Three | 3,494 | 3,494 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 38,956 | 38,956 | |||
Finance Lease, Liability, Payments, Due Year Four | 2,086 | 2,086 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 28,928 | 28,928 | |||
Finance Lease, Liability, Payments, Due Year Five | 8,113 | 8,113 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 105,485 | 105,485 | |||
Finance Lease, Liability, Payment, Due | 30,640 | 30,640 | |||
Lessee, Operating Lease, Liability, Payments, Due | 320,652 | 320,652 | |||
Finance Lease, Liability, Undiscounted Excess Amount | 3,434 | 3,434 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 51,446 | 51,446 | |||
Operating Lease, Liability, Noncurrent | $ 210,440 | 210,440 | $ 203,691 | ||
Right of use asset modification | $ 18,038 | $ 3,967 |
Other Current Assets and Liab_3
Other Current Assets and Liabilities (details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Other current assets and liabilities [Abstract] | ||
Derivative Asset, Current | $ 999,072 | $ 371,195 |
Margin Deposit Assets | 328,849 | 194,097 |
Advances on Inventory Purchases | 515,663 | 198,699 |
Other Assets | 306,666 | 253,497 |
Other current assets | 2,150,250 | 1,017,488 |
Customer Margin Deposits And Credit Balances | 218,217 | 149,539 |
CustomerAdvancepayments | 1,084,039 | 300,100 |
Derivative Liability, Current | 576,543 | 416,204 |
Other current liabilities | 69,982 | 63,000 |
Other Liabilities, Current | $ 1,948,781 | $ 928,843 |