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Segment Reporting | 12 Months Ended
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Aug. 31, 2012
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company has aligned the segments based on an assessment of how the businesses are operated and the products and services they sell. The Energy segment produces and provides primarily for the wholesale distribution of petroleum products and transportation of those products. The Ag segment purchases and further processes or resells grains and oilseeds originated by the country operations business, by the Company’s member cooperatives and by third parties, and also serves as a wholesaler and retailer of crop inputs. Corporate and Other primarily represents the non-consolidated wheat milling and packaged food joint ventures, as well as the business solutions operations, which consists of commodities hedging, insurance and financial services related to crop production. Corporate administrative expenses are allocated to each business segment, and Corporate and Other, based on direct usage for services that can be tracked, such as information technology and legal, and other factors or considerations relevant to the costs incurred. Many of the Company’s business activities are highly seasonal and operating results will vary throughout the year. Historically, the Company’s income is generally lowest during the second fiscal quarter and highest during the third fiscal quarter. For example, in the Ag segment, agronomy and country operations businesses experience higher volumes and income during the spring planting season and in the fall, which corresponds to harvest. Also in the Ag segment, the grain marketing operations are subject to fluctuations in volumes and earnings based on producer harvests, world grain prices and demand. The Company’s Energy segment generally experiences higher volumes and profitability in certain operating areas, such as refined products, in the summer and early fall when gasoline and diesel fuel usage is highest and is subject to global supply and demand forces. Other energy products, such as propane, may experience higher volumes and profitability during the winter heating and crop drying seasons. The Company’s 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 the Company purchases 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 the Company’s control, including the weather, crop damage due to disease or insects, drought, the availability and adequacy of supply, government regulations and policies, world events, and general political and economic conditions. While the Company’s revenues and operating results are derived from businesses and operations which are wholly-owned and majority-owned, a portion of the Company’s business operations are conducted through companies in which it holds ownership interests of 50% or less and does not control the operations. The Company accounts for these investments primarily using the equity method of accounting, wherein the Company records its proportionate share of income or loss reported by the entity as equity income from investments, without consolidating the revenues and expenses of the entity in its Consolidated Statements of Operations. In the Ag segment, this principally includes the Company’s 50% ownership in TEMCO. In Corporate and Other, these investments principally include the Company’s 50% ownership in Ventura Foods and its 24% ownership in Horizon Milling and Horizon Milling G.P. Reconciling Amounts represent the elimination of revenues between segments. Such transactions are executed at market prices to more accurately evaluate the profitability of the individual business segments. Segment information for the years ended August 31, 2012, 2011 and 2010 is as follows:
| Energy |  | Ag |  | Corporate and Other |  | Reconciling Amounts |  | Total
| (Dollars in thousands)
For the year ended August 31, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues | $ | 12,816,542 |  |  | $ | 28,181,445 |  |  | $ | 68,882 |  |  | $ | (467,583 | ) |  | $ | 40,599,286 |
Cost of goods sold | 11,514,463 |  |  | 27,544,040 |  |  | (2,777 | ) |  | (467,583 | ) |  | 38,588,143 |
Gross profit | 1,302,079 |  |  | 637,405 |  |  | 71,659 |  |  | — |  |  | 2,011,143 |
Marketing, general and administrative | 155,786 |  |  | 273,757 |  |  | 68,690 |  |  |  |  |  | 498,233 |
Operating earnings | 1,146,293 |  |  | 363,648 |  |  | 2,969 |  |  | — |  |  | 1,512,910 |
Loss on investments | 4,008 |  |  | 1,049 |  |  | 408 |  |  |  |  |  | 5,465 |
Interest, net | 122,302 |  |  | 57,915 |  |  | 13,046 |  |  |  |  |  | 193,263 |
Equity income from investments | (7,537 | ) |  | (22,737 | ) |  | (72,115 | ) |  |  |  |  | (102,389 | )
Income before income taxes | $ | 1,027,520 |  |  | $ | 327,421 |  |  | $ | 61,630 |  |  | $ | — |  |  | $ | 1,416,571 |
Intersegment revenues | $ | (467,583 | ) |  |  |  |  |  |  |  | $ | 467,583 |  |  | $ | — |
Goodwill | $ | 1,165 |  |  | $ | 73,630 |  |  | $ | 6,898 |  |  |  |  |  | $ | 81,693 |
Capital expenditures | $ | 294,560 |  |  | $ | 168,825 |  |  | $ | 5,226 |  |  |  |  |  | $ | 468,611 |
Depreciation and amortization | $ | 109,496 |  |  | $ | 92,538 |  |  | $ | 17,598 |  |  |  |  |  | $ | 219,632 |
Total identifiable assets at August 31, 2012 | $ | 3,684,571 |  |  | $ | 6,816,809 |  |  | $ | 2,921,771 |  |  |  |  |  | $ | 13,423,151 |
For the year ended August 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues | $ | 11,467,381 |  |  | $ | 25,767,033 |  |  | $ | 64,809 |  |  | $ | (383,389 | ) |  | $ | 36,915,834 |
Cost of goods sold | 10,694,687 |  |  | 25,204,301 |  |  | (2,611 | ) |  | (383,389 | ) |  | 35,512,988 |
Gross profit | 772,694 |  |  | 562,732 |  |  | 67,420 |  |  | — |  |  | 1,402,846 |
Marketing, general and administrative | 142,708 |  |  | 229,369 |  |  | 66,421 |  |  |  |  |  | 438,498 |
Operating earnings (losses) | 629,986 |  |  | 333,363 |  |  | 999 |  |  | — |  |  | 964,348 |
Loss (gain) on investments | 1,027 |  |  | (118,344 | ) |  | (9,412 | ) |  |  |  |  | (126,729 | )
Interest, net | 5,829 |  |  | 57,438 |  |  | 11,568 |  |  |  |  |  | 74,835 |
Equity income from investments | (6,802 | ) |  | (40,482 | ) |  | (84,130 | ) |  |  |  |  | (131,414 | )
Income before income taxes | $ | 629,932 |  |  | $ | 434,751 |  |  | $ | 82,973 |  |  | $ | — |  |  | $ | 1,147,656 |
Intersegment revenues | $ | (383,389 | ) |  |  |  |  |  |  |  | $ | 383,389 |  |  | $ | — |
Goodwill | $ | 1,165 |  |  | $ | 18,346 |  |  | $ | 6,898 |  |  |  |  |  | $ | 26,409 |
Capital expenditures | $ | 198,692 |  |  | $ | 107,866 |  |  | $ | 4,112 |  |  |  |  |  | $ | 310,670 |
Depreciation and amortization | $ | 126,018 |  |  | $ | 79,231 |  |  | $ | 15,445 |  |  |  |  |  | $ | 220,694 |
Total identifiable assets at August 31, 2011 | $ | 3,883,205 |  |  | $ | 5,276,537 |  |  | $ | 3,057,268 |  |  |  |  |  | $ | 12,217,010 |
For the year ended August 31, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues | $ | 8,799,890 |  |  | $ | 16,715,055 |  |  | $ | 48,522 |  |  | $ | (295,536 | ) |  | $ | 25,267,931 |
Cost of goods sold | 8,437,504 |  |  | 16,258,679 |  |  | (3,237 | ) |  | (295,536 | ) |  | 24,397,410 |
Gross profit | 362,386 |  |  | 456,376 |  |  | 51,759 |  |  | — |  |  | 870,521 |
Marketing, general and administrative | 123,834 |  |  | 187,640 |  |  | 55,108 |  |  |  |  |  | 366,582 |
Operating earnings (losses) | 238,552 |  |  | 268,736 |  |  | (3,349 | ) |  | — |  |  | 503,939 |
Gain on investments | (269 | ) |  | (421 | ) |  | (28,743 | ) |  |  |  |  | (29,433 | )
Interest, net | 9,939 |  |  | 33,039 |  |  | 15,346 |  |  |  |  |  | 58,324 |
Equity income from investments | (5,554 | ) |  | (31,248 | ) |  | (71,985 | ) |  |  |  |  | (108,787 | )
Income before income taxes | $ | 234,436 |  |  | $ | 267,366 |  |  | $ | 82,033 |  |  | $ | — |  |  | $ | 583,835 |
Intersegment revenues | $ | (295,536 | ) |  |  |  |  |  |  |  | $ | 295,536 |  |  | $ | — |
Goodwill | $ | 1,165 |  |  | $ | 14,975 |  |  | $ | 6,898 |  |  |  |  | $ | 23,038 |
Capital expenditures | $ | 197,637 |  |  | $ | 122,468 |  |  | $ | 4,157 |  |  |  |  |  | $ | 324,262 |
Depreciation and amortization | $ | 118,071 |  |  | $ | 69,170 |  |  | $ | 15,681 |  |  |  |  |  | $ | 202,922 |
The Company's international sales to geographic regions are presented by selling location. Given the Company's international expansion initiatives in fiscal 2012, the Company re-analyzed the way sales are reported by regions and believes that presenting sales by the location in which the sale originated is the most accurate depiction of the Company's international presence. As the Company had previously presented international sales based on the location to which the product was transported, all previous years have been updated to reflect the new methodology. International sales for the years ended August 31, 2012, 2011 and 2010 are as follows:
| 2012 |  | 2011 |  | 2010
| (Dollars in millions)
Asia | $ | 290 |  |  | $ | 6 |  |  | $ | 31 |
Europe | 1,064 |  |  | 277 |  |  | 119 |
U.S. Only | 37,503 |  |  | 35,287 |  |  | 24,274 |
South America | 1,444 |  |  | 1,066 |  |  | 593 |
| $ | 40,301 |  |  | $ | 36,636 |  |  | $ | 25,017 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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