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Acquisitions | 12 Months Ended
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Aug. 31, 2012
Business Combinations [Abstract] |
Acquisition | Acquisitions NCRA: On November 29, 2011, the CHS Board of Directors approved a stock transfer agreement, dated as of November 29, 2011, between the Company and GROWMARK, Inc. (Growmark), and a stock transfer agreement, dated as of November 29, 2011, between the Company and MFA Oil Company (MFA). Pursuant to these agreements, the Company will acquire from Growmark and MFA shares of Class A common stock and Class B common stock of NCRA representing approximately 25.571% of NCRA’s outstanding capital stock. Prior to the first closing, the Company owned the remaining approximately 74.429% of NCRA’s outstanding capital stock as of August 31, 2012 and accordingly, upon completion of the acquisitions contemplated by these agreements, NCRA will be a wholly-owned subsidiary. With the first closing in September 2012, the Company's ownership increased to 79.2%. Pursuant to the agreement with Growmark, the Company will acquire stock representing approximately 18.616% of NCRA’s outstanding capital stock in four separate closings to be held on September 1, 2012, September 1, 2013, September 1, 2014 and September 1, 2015, for an aggregate base purchase price of $255.5 million (approximately $48.0 million of which will be paid at each of the first three closings, and $111.4 million of which will be paid at the final closing). In addition, Growmark is entitled to receive up to two contingent purchase price payments following each individual closing, calculated as set forth in the agreement with Growmark, if the average crack spread margin referred to therein over the fiscal year ending on August 31 of the calendar year in which the contingent payment date falls exceeds a specified target. Pursuant to the agreement with MFA, the Company will acquire stock representing approximately 6.955% of NCRA’s outstanding capital stock in four separate closings to be held on September 1, 2012, September 1, 2013, September 1, 2014 and September 1, 2015, for an aggregate base purchase price of $95.5 million (approximately $18.0 million of which will be paid at each of the first three closings, and $41.6 million of which will be paid at the final closing). In addition, MFA is entitled to receive up to two contingent purchase price payments following each individual closing, calculated as set forth in the agreement with MFA, if the average crack spread margin referred to therein over the fiscal year ending on August 31 of the calendar year in which the contingent payment date falls exceeds a specified target. As all conditions associated with the purchase have been met, the Company has accounted for this transaction as a forward purchase contract which required recognition in the first quarter of fiscal 2012 in accordance with ASC Topic 480, Distinguishing Liabilities from Equity (ASC 480). As a result, the Company is no longer including the noncontrolling interests related to NCRA as a component of equity. Instead, the Company recorded the present value of the future payments to be made to Growmark and MFA as a liability on its Consolidated Balance Sheet as of November 30, 2011. The liability as of August 31, 2012 was $334.7 million, including interest accretion of $6.0 million. Noncontrolling interests in the amount of $337.1 million was reclassified and an additional adjustment to equity in the amount of $96.7 million was recorded as a result of the transaction. The equity adjustment included the initial fair value of the crack spread contingent payments of $105.2 million. The fair value of the liability associated with the crack spread contingent payments was calculated utilizing an average price option model, an adjusted Black-Scholes pricing model commonly used in the energy industry to value options. As of August 31, 2012, the fair value of the crack spread contingent payment was $127.5 million and is included on the Company's Consolidated Balance Sheet in other liabilities with changes of $22.3 million included as an increase in cost of goods sold in the Company's Consolidated Statements of Operations during the year ended August 31, 2012. The portion of NCRA earnings attributable to Growmark and MFA for the first quarter of fiscal 2012, prior to the transaction date, have been included in net income attributable to noncontrolling interests. Beginning in the second quarter of fiscal 2012, in accordance with ASC 480, earnings are no longer attributable to the noncontrolling interests and patronage earned by Growmark and MFA is included as interest, net in the Consolidated Statements of Operations. During the year ended August 31, 2012, $107.2 million was included in interest for the patronage earned. Solbar: On February 9, 2012, the Company completed the acquisition of Solbar Industries Ltd., an Israeli company (Solbar), included in its Ag segment. Effective upon the closing of the merger, each outstanding share of Solbar was converted into the right to receive $4.00 in cash, without interest, and each outstanding Solbar stock option was terminated in exchange for a cash payment in an amount per share equal to the difference between the applicable exercise price per share and $4.00, for total consideration paid of $128.7 million, net of cash acquired of $6.6 million. Solbar provides soy protein ingredients to manufacturers in the meat, vegetarian, beverage, bars and crisps, confectionary, bakery, and pharmaceutical manufacturing markets. This acquisition deepens the Company's presence in the value-added soy protein market. The fair market value of net assets was determined by market valuation reports using Level 3 inputs. Allocation of purchase price for this transaction resulted in goodwill of $39.8 million, which is nondeductible for tax purposes, and definite-lived intangible assets of $23.3 million. As this acquisition is not material, proforma results of operations are not presented. Solbar and its subsidiaries operate primarily in the countries of Israel, China and the U.S. The acquisition resulted in fair value measurements that are not on a recurring basis and did not have a material impact on the Company's consolidated results of operations. Purchase accounting has been finalized and fair values assigned to the net assets acquired were as follows:
(Dollars in thousands) |  |
Current assets |  | $ | 74,240 |
Investments |  | 961 |
Property, plant and equipment |  | 71,324 |
Goodwill |  | 39,794 |
Definite-lived intangible assets |  | 23,306 |
Current liabilities |  | (63,417 | )
Long-term debt |  | (15,849 | )
Other liabilities |  | (1,694 | )
Total net assets acquired |  | $ | 128,665 |
Creston: In November 2011, the Company acquired an oilseed crushing facility in Creston, Iowa for $32.3 million.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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