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Investments

3 Months Ended

Nov. 30, 2011

Note 4. Investments

Agriliance LLC (Agriliance) is owned and governed by us (50%) and Land O’Lakes, Inc. (50%). We account for our Agriliance investment using the equity method of accounting within Corporate and Other. Agriliance is currently winding down its business activities and primarily holds long-term liabilities. During the three months ended November 30, 2010, the Company received $20.0 million of cash distributions from Agriliance as returns of capital for proceeds from the sale of Agriliance retail facilities and the collection of receivables.

We have a 50% interest in Ventura Foods, LLC, (Ventura Foods), a joint venture which produces and distributes primarily vegetable oil-based products, and is included in Corporate and Other. We account for Ventura Foods as an equity method investment, and as of November 30, 2011, our carrying value of Ventura Foods of $277.6 million exceeded our share of their equity by $13.2 million, of which $0.4 million is being amortized with a remaining life of less than one year. The remaining basis difference represents equity method goodwill. The following provides summarized unaudited financial information for the Ventura Foods balance sheets as of November 30, 2011, August 31, 2011, and November 30, 2010 and the statements of operations for the three months ended November 30, 2011 and 2010:


	For the Three Months Ended November 30,
	2011		2010
Net sales	$	665,583	$	540,481
Gross profit		56,051		62,795
Net income		15,102		22,858
Net income attributable to CHS Inc.		7,551		11,429


	November 30, 2011		August 31, 2011		November 30, 2010
Current assets	$	595,727	$	585,760	$	549,899
Non-current assets		460,204		464,621		459,729
Current liabilities		235,469		227,199		201,954
Non-current liabilities		291,816		292,368		306,535