Correction of Immaterial Errors

Lease Accounting:

We lease rail cars, equipment, vehicles and other assets under noncancelable lease agreements for use in our agricultural and transportation operations in both our Energy and Ag segments. During the fourth quarter of fiscal 2015, we determined that we had historically applied the accounting principles of ASC Topic 840, Leases, incorrectly by accounting for all of our lease arrangements as operating leases. We subsequently determined that certain of our leases met, at lease inception, one or more of the ASC 840-10-25-1 criteria that require a lease to be classified and accounted for as a capital lease. Consequently, prior period amounts in the financial statements, notes thereto and related disclosures contained in this Annual Report on Form 10-K for the year ended August 31, 2015 have been revised to adjust for these errors.

Statement of Cash Flows Presentation:

During the fourth quarter of fiscal 2015, we determined that our historical presentation of cash flows related to the acquisition of property, plant and equipment and expenditures for major repairs was incorrect. Amounts presented as cash outflows in prior periods included acquisitions of assets for which cash had not yet been paid, resulting in misstatements of both investing and operating cash flows. We have revised prior period amounts in the financial statements, notes thereto and related disclosures contained in this Annual Report on Form 10-K for the year ended August 31, 2015 to correct these errors.

Materiality Assessment:

We assessed the materiality of the misstatements described above on prior period financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250 ("ASC 250"), Presentation of Financial Statements, and concluded these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), our consolidated financial statements as of August 31, 2014 and for the years ended August 31, 2014 and 2013, which are presented herein, have been revised. The following are selected line items from our consolidated financial statements illustrating the effects of these revisions:



	CONSOLIDATED BALANCE SHEET
	August 31
	2014
	As Previously Reported		Revision		As Revised
	(Dollars in thousands)
ASSETS
Property, plant and equipment	$	4,031,023	$	149,125	$	4,180,148
Total assets	15,146,979		149,125		15,296,104
LIABILITIES AND EQUITIES
Current portion of long-term debt	156,836		45,129		201,965
Total current liabilities	6,184,009		45,129		6,229,138
Long-term debt	1,299,664		103,996		1,403,660
Total liabilities and equities	15,146,979		149,125		15,296,104



	CONSOLIDATED STATEMENTS OF OPERATIONS
	For the Years Ended August 31
	2014							2013
	As Previously Reported		Revision			As Revised		As Previously Reported		Revision			As Revised
	(Dollars in thousands)
Cost of goods sold	$	41,016,798	$	(5,311	)	$	41,011,487	$	42,706,205	$	(5,132	)	$	42,701,073
Gross profit	1,647,235		5,311			1,652,546		1,773,652		5,132			1,778,784
Operating earnings	1,044,637		5,311			1,049,948		1,220,029		5,132			1,225,161
Interest expense, net	134,942		5,311			140,253		231,567		5,132			236,699
Income before income taxes	1,131,303		—			1,131,303		1,085,994		—			1,085,994



	CONSOLIDATED STATEMENTS OF CASH FLOWS
	For the Years Ended August 31
	2014						2013
	As Previously Reported		Revision		As Revised		As Previously Reported		Revision		As Revised
	(Dollars in thousands)
Cash flows from operating activities:
Depreciation and amortization	267,167		39,080		306,247		241,791		34,789		276,580
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts payable and accrued expenses	(164,616	)	(25,187	)	(189,803	)	52,897		(39,639	)	13,258
Net cash provided by (used in) operating activities	1,427,351		13,893		1,441,244		2,477,800		(4,850	)	2,472,950
Cash flows from investing activities:
Acquisition of property, plant and equipment	(943,888	)	24,812		(919,076	)	(659,373	)	39,490		(619,883	)
Expenditures for major repairs	(3,305	)	375		(2,930	)	(73,701	)	149		(73,552	)
Net cash provided by (used in) investing activities	(1,341,582	)	25,187		(1,316,395	)	(534,958	)	39,639		(495,319	)
Cash flows from financing activities:
Principal payments on capital lease obligations	—		(39,871	)	(39,871	)	—		(35,387	)	(35,387	)
Other financing activities, net	(447	)	791		344		(336	)	598		262
Net cash provided by (used in) financing activities	240,530		(39,080	)	201,450		(443,174	)	(34,789	)	(477,963	)