XML 63 R16.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Derivative Financial Instruments and Hedging Activities | 3 Months Ended
--- | ---
Nov. 30, 2014
Derivative Financial Instruments and Hedging Activities [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments and Hedging Activities Our derivative instruments primarily consist of commodity and freight futures and forward contracts and, to a minor degree, may include foreign currency and interest rate swap contracts. These contracts are economic hedges of price risk, but are not designated or accounted for as hedging instruments for accounting purposes, with the exception of certain interest rate swap contracts which are accounted for as cash flow or fair value hedges. Derivative instruments are recorded on our Consolidated Balance Sheets at fair value as discussed in Note 11, Fair Value Measurements. The following tables present the gross fair values of derivative assets, derivative liabilities, and margin deposits (cash collateral) recorded on the Consolidated Balance Sheets along with the related amounts permitted to be offset in accordance with GAAP. We have elected not to offset derivative assets and liabilities when we have the right of offset under FASB ASC Topic 210-20, Balance Sheet - Offsetting; or when the instruments are subject to master netting arrangements under ASC Topic 815-10-45, Derivatives and Hedging - Overall.
| November 30, 2014
|  |  | Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting |  |
| Gross Amounts Recognized |  | Cash Collateral |  | Derivative Instruments |  | Net Amounts
| (Dollars in thousands)
Derivative Assets: |  |  |  |  |  |  |
Commodity and freight derivatives | $ | 681,270 |  |  | $ | — |  |  | $ | 156,944 |  |  | $ | 524,326 |
Foreign exchange derivatives | 6,929 |  |  | — |  |  | 198 |  |  | 6,731 |
Interest rate derivatives - hedge | 12,367 |  |  | — |  |  | — |  |  | 12,367 |
Total | $ | 700,566 |  |  | $ | — |  |  | $ | 157,142 |  |  | $ | 543,424 |
Derivative Liabilities: |  |  |  |  |  |  |
Commodity and freight derivatives | $ | 628,365 |  |  | $ | 53,166 |  |  | $ | 156,944 |  |  | $ | 418,255 |
Foreign exchange derivatives | 264 |  |  | — |  |  | 198 |  |  | 66 |
Interest rate derivatives - hedge | 594 |  |  | — |  |  | — |  |  | 594 |
Interest rate derivatives - non-hedge | 116 |  |  | — |  |  | — |  |  | 116 |
Total | $ | 629,339 |  |  | $ | 53,166 |  |  | $ | 157,142 |  |  | $ | 419,031 |
| August 31, 2014
|  |  | Amounts Not Offset on the Consolidated Balance Sheet but Eligible for Offsetting |  |
| Gross Amounts Recognized |  | Cash Collateral |  | Derivative Instruments |  | Net Amounts
| (Dollars in thousands)
Derivative Assets: |  |  |  |  |  |  |
Commodity and freight derivatives | $ | 597,210 |  |  | $ | — |  |  | $ | 42,229 |  |  | $ | 554,981 |
Foreign exchange derivatives | 2,523 |  |  | — |  |  | 1,174 |  |  | 1,349 |
Interest rate derivatives - hedge | 4,200 |  |  | — |  |  | — |  |  | 4,200 |
Total | $ | 603,933 |  |  | $ | — |  |  | $ | 43,403 |  |  | $ | 560,530 |
Derivative Liabilities: |  |  |  |  |  |  |
Commodity and freight derivatives | $ | 597,612 |  |  | $ | 2,504 |  |  | $ | 42,229 |  |  | $ | 552,879 |
Foreign exchange derivatives | 2,248 |  |  | — |  |  | 1,174 |  |  | 1,074 |
Interest rate derivatives - non-hedge | 130 |  |  | — |  |  | — |  |  | 130 |
Total | $ | 599,990 |  |  | $ | 2,504 |  |  | $ | 43,403 |  |  | $ | 554,083 |
Derivatives Not Designated as Hedging Instruments The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three months ended November 30, 2014 and 2013.
|  |  | For the Three Months Ended November 30,
| Location of Gain (Loss) |  | 2014 |  | 2013
|  |  | (Dollars in thousands)
Commodity and freight derivatives | Cost of goods sold |  | $ | 3,998 |  |  | $ | (19,789 | )
Foreign exchange derivatives | Cost of goods sold |  | 2,411 |  |  | (422 | )
Interest rate derivatives | Interest, net |  | 29 |  |  | (1 | )
Total |  | $ | 6,438 |  |  | $ | (20,212 | )
Commodity and Freight Contracts: As of November 30, 2014 and August 31, 2014, we had the following outstanding purchase and sales contracts:
| November 30, 2014 |  | August 31, 2014
| Purchase Contracts |  | Sales Contracts |  | Purchase Contracts |  | Sales Contracts
| (Units in thousands)
Grain and oilseed - bushels | 599,176 |  |  | 988,186 |  | 665,690 |  |  | 938,140
Energy products - barrels | 32,106 |  |  | 50,597 |  | 27,754 |  |  | 50,450
Soy products - tons | 126 |  |  | 1,271 |  | 37 |  |  | 1,212
Crop nutrients - tons | 582 |  |  | 1,131 |  | 1,613 |  |  | 1,607
Ocean and barge freight - metric tons | 1,260 |  |  | 308 |  | 5,423 |  |  | 4,005
Rail freight - rail cars | 249 |  |  | 126 |  | 321 |  |  | 186
Livestock - pounds | — |  |  | 4,240 |  | — |  |  | 46,280
Foreign Exchange Contracts: We conduct a substantial portion of our business in U.S. dollars, except for some grain marketing transactions primarily in South America and Europe, and purchases of products from Canada. We have minimal risk relating to foreign currency fluctuations, as substantially all international sales are denominated in U.S. dollars. From time to time, we enter into foreign currency futures contracts to mitigate currency fluctuations. Although our overall risk relating to foreign currency fluctuations is minimal, as substantially all international sales are denominated in U.S. dollars, these fluctuations do, however, impact the ability of foreign buyers to purchase U.S. agricultural products and the competitiveness of U.S. agricultural products compared to the same products offered by alternative sources of world supply. As of November 30, 2014, we had $6.9 million included in derivative assets and $0.3 million included in derivative liabilities associated with foreign currency contracts. Interest Rate Contracts: CHS Capital, our wholly-owned finance subsidiary, has interest rate swaps that lock the interest rates of underlying loans with a combined notional amount of $4.5 million expiring at various times through fiscal 2018, with $0.3 million of the notional amount expiring during fiscal 2015. None of CHS Capital’s interest rate swaps qualify for hedge accounting and as a result, changes in fair value are recorded in earnings within interest, net in our Consolidated Statements of Operations. Derivatives Designated as Cash Flow or Fair Value Hedging Strategies As of November 30, 2014 and August 31, 2014, we have certain derivatives designated as cash flow and fair value hedges. Interest Rate Contracts: We have entered into interest rate swaps with an aggregate notional amount of $420.0 million designated as fair value hedges of portions of our fixed-rate debt. Our objective is to offset changes in the fair value of the debt associated with the risk of variability in the 3-month U.S. dollar LIBOR interest rate, in essence converting the fixed-rate debt to variable-rate debt. Offsetting changes in the fair values of both the swap instruments and the hedged debt are recorded contemporaneously each period and only create an impact to earnings to the extent that the hedge is ineffective. During the three months ended November 30, 2014, we recorded offsetting fair value adjustments of $8.2 million, with no ineffectiveness recorded in earnings. During the first quarter of fiscal 2015, we entered into interest rate swaps with an aggregate notional amount of $100.0 million designated as cash flow hedges of the expected variability of future interest payments on our anticipated issuance of fixed-rate debt. The swaps expire in fiscal 2016 with no amounts expected to be included in earnings during the next 12 months. In fiscal 2013, we entered into interest rate swaps designated as cash flow hedges of the expected variability of future interest payments on the forecasted issuance of fixed-rate debt. Gains and losses related to these swaps were initially recorded in accumulated other comprehensive income. In February 2014, the swaps were terminated as the issuance of the underlying debt was no longer probable and, as a result, a $13.5 million pre-tax gain was reclassified into net income in that period. The following table sets forth the pretax gains (losses) recorded in accumulated other comprehensive loss relating to cash flow hedges for the three months ended November 30, 2014 and 2013.
|  | For the Three Months Ended November 30,
|  | 2014 |  | 2013
|  | (Dollars in thousands)
Interest rate derivatives |  | $ | (594 | ) |  | $ | (5,281 | )

X
- Details
Name: | chscp_DerivativeFinancialInstrumentsandHedgingActivitiesAbstract
Namespace Prefix: | chscp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708775-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624181-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624258-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708773-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624177-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration