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Equities
 12 Months Ended
Aug. 31, 2012
Equity [Abstract]  
Equities
Equities

In accordance with the bylaws and by action of the Board of Directors, annual net earnings from patronage sources are distributed to consenting patrons following the close of each fiscal year, and are based on amounts using financial statement earnings. The cash portion of the patronage distribution is determined annually by the Board of Directors, with the balance issued in the form of capital equity certificates. Total patronage refunds for fiscal 2012 are estimated to be $969.9 million, while the cash portion is estimated to be $378.7 million. The actual patronage refunds and cash portion for fiscal years 2011, 2010, and 2009 were $676.3 million ($260.7 million in cash), $402.4 million ($141.5 million in cash), and $438.0 million ($153.9 million in cash), respectively. By action of the Board of Directors, patronage losses incurred in fiscal 2009 from the wholesale crop nutrients business, totaling $60.2 million, were offset against the fiscal 2008 wholesale crop nutrients and CF Industries Holdings, Inc. patronage through the cancellation of capital equity certificates in fiscal 2010.

Annual net savings from patronage or other sources may be added to the unallocated capital reserve or, upon action by the Board of Directors, may be allocated to members in the form of nonpatronage equity certificates. The Board of Directors authorized, in accordance with the Company’s bylaws, that 10% of the earnings from patronage business for fiscal years 2012 and 2011, be added to the Company’s capital reserves.

Redemptions are at the discretion of the Board of Directors. Redemptions of capital equity certificates approved by the Board of Directors are divided into two pools, one for non-individuals (primarily member cooperatives) who may participate in an annual program for equities held by them and another for individual members who are eligible for equity redemptions at age 70 or upon death. In accordance with authorization from the Board of Directors, the Company expects total redemptions related to the year ended August 31, 2012, that will be distributed in fiscal 2013, to be approximately $196.0 million. These expected distributions are classified as a current liability on the August 31, 2012 Consolidated Balance Sheet.

For the years ended August 31, 2012, 2011 and 2010, the Company redeemed in cash, equities in accordance with authorization from the Board of Directors, in the amounts of $145.7 million, $61.2 million and $23.1 million, respectively. An additional $36.7 million of capital equity certificates were redeemed in fiscal year 2010 by issuance of shares of the Company’s 8% Cumulative Redeemable Preferred Stock (Preferred Stock). The amount of equities redeemed with each share of Preferred Stock issued was $28.30, which was the closing price per share of the stock on the NASDAQ Stock Market LLC on February 22, 2010.

The Preferred Stock is listed on the NASDAQ Stock Market LLC under the symbol CHSCP. On August 31, 2012, the Company had 12,272,003 shares of Preferred Stock outstanding with a total redemption value of approximately $306.8 million, excluding accumulated dividends. The Preferred Stock accumulates dividends at a rate of 8% per year, which are payable quarterly. Dividends paid on the Preferred Stock during the years ended August 31, 2012, 2011 and 2010, were $24.5 million, $24.5 million, and $23.2 million, respectively.

The Preferred Stock is redeemable at the Company’s option. At this time, the Company has no current plan or intent to redeem any Preferred Stock.
As discussed in Note 17, Acquisitions, the Company has a firm commitment to purchase the remaining NCRA noncontrolling interests. The following table presents the effects of changes in the Company's NCRA ownership interest on CHS equities for the years ended August 31, 2012, 2011, and 2010.
 
2012
 
2011
 
2010
 
(Dollars in thousands)
Net income attributable to CHS Inc.
$
1,260,628

 
$
961,355

 
$
502,159

Transfers to noncontrolling interests:
 
 
 
 
 
      Decrease in CHS Inc. capital reserves for purchase of noncontrolling interests
(82,138
)
 
 
 
 
Changes from net income attributable to CHS Inc. and transfers to noncontrolling interests
$
1,178,490

 
$
961,355

 
$
502,159