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Segment Reporting
 6 Months Ended
Feb. 28, 2015
Segment Reporting [Abstract]  
Segment Reporting
        Segment Reporting

We have aligned our segments based on an assessment of how our businesses are operated and the products and services they sell.

Our Energy segment produces and provides primarily for the wholesale distribution of petroleum products and transportation of those products. Our Ag segment purchases and further processes or resells grains and oilseeds originated by our country operations business, by our member cooperatives and by third parties, and also serves as a wholesaler and retailer of crop inputs. Corporate and Other primarily represents our non-consolidated wheat milling and packaged food joint ventures, as well as our business solutions operations, which consist 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.

Prior to fiscal 2015, our renewable fuels marketing business was included in our Energy segment and our renewable fuels production business was included in our Ag segment. Effective in the first quarter of fiscal 2015, we reorganized certain parts of our business to better align our ethanol supply chain. As a result, our renewable fuels marketing business is now managed together with our renewable fuels production business within our Ag segment. In accordance with Accounting Standards Codification (ASC) Topic 280, Segment Reporting, we have identified our operating segments to reflect the manner in which our chief operating decision maker evaluates performance and manages the business, and we have aggregated those operating segments into our reportable Energy and Ag segments. Prior period segment information below has been revised to reflect this change to ensure comparability.

Many of our business activities are highly seasonal and operating results will vary throughout the year. Historically, our income is generally lowest during the second fiscal quarter and highest during the third fiscal quarter. For example, in our 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 our Ag segment, our grain marketing operations are subject to fluctuations in volumes and earnings based on producer harvests, world grain prices and demand. Our 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.

Our 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 we purchase 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 our control, including the weather, crop damage due to disease or insects, the availability and adequacy of supply, government regulations and policies, world events, and general political and economic conditions.

While our revenues and operating results are derived from businesses and operations which are wholly-owned and majority-owned, a portion of our business operations are conducted through companies in which we hold ownership interests of 50% or less and do not control the operations. We account for these investments primarily using the equity method of accounting, wherein we record our 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 our Consolidated Statements of Operations. In our Ag segment, this principally includes our 50% ownership in TEMCO. In Corporate and Other, these investments principally include our 50% ownership in Ventura Foods and our 12% ownership in Ardent Mills.

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 three and six months ended February 28, 2015 and 2014 is as follows:

Energy

Ag

Corporate
and Other

Reconciling
Amounts

Total
For the Three Months Ended February 28, 2015:
(Dollars in thousands)
Revenues
$
1,947,297


$
6,501,280


$
16,803


$
(109,652
)

$
8,355,728

Cost of goods sold
1,894,418


6,326,607


(8
)

(109,652
)

8,111,365

Gross profit
52,879


174,673


16,811


—


244,363

Marketing, general and administrative
46,758


106,671


17,346


—


170,775

Operating earnings (losses)
6,121


68,002


(535
)

—


73,588

(Gain) loss on investments
—


—


(2,199
)

—


(2,199
)
Interest, net
(7,264
)

14,399


2,355


—


9,490

Equity (income) loss from investments
(736
)

(4,442
)

(18,991
)

—


(24,169
)
Income before income taxes
$
14,121


$
58,045


$
18,300


$
—


$
90,466

Intersegment revenues
$
(105,567
)

$
(4,085
)

$
—


$
109,652


$
—

 
 
 
 
 
 
 
 
 
 
 
Energy
 
Ag
 
Corporate
and Other
 
Reconciling
Amounts
 
Total
For the Three Months Ended February 28, 2014:
 
Revenues
$
2,961,193

 
$
6,833,365

 
$
17,445

 
$
(131,729
)
 
$
9,680,274

Cost of goods sold
2,676,335

 
6,694,245

 
(11
)
 
(131,729
)
 
9,238,840

Gross profit
284,858

 
139,120

 
17,456

 
—

 
441,434

Marketing, general and administrative
38,042

 
99,985

 
17,744

 
—

 
155,771

Operating earnings (losses)
246,816

 
39,135

 
(288
)
 
—

 
285,663

(Gain) loss on investments
—

 
116

 
(2,725
)
 
—

 
(2,609
)
Interest, net
18,578

 
9,190

 
1,221

 
—

 
28,989

Equity (income) loss from investments
(849
)
 
(8,213
)
 
(21,987
)
 
—

 
(31,049
)
Income before income taxes
$
229,087

 
$
38,042

 
$
23,203

 
$
—

 
$
290,332

Intersegment revenues
$
(131,729
)
 
$
—

 
$
—

 
$
131,729

 
$
—

 
 
 
 
 
 
 
 
 
 
 
Energy
 
Ag
 
Corporate
and Other
 
Reconciling
Amounts
 
Total
For the Six Months Ended February 28, 2015:
 

 
 

 
 

 
 

 
 

Revenues
$
4,965,750

 
$
13,143,319

 
$
35,796

 
$
(289,669
)
 
$
17,855,196

Cost of goods sold
4,598,852

 
12,710,939

 
(12
)
 
(289,669
)
 
17,020,110

Gross profit
366,898

 
432,380

 
35,808

 
—

 
835,086

Marketing, general and administrative
80,126

 
210,548

 
42,069

 
—

 
332,743

Operating earnings (losses)
286,772

 
221,832

 
(6,261
)
 
—

 
502,343

(Gain) loss on investments
—

 
(2,875
)
 
(2,199
)
 
—

 
(5,074
)
Interest, net
(3,443
)
 
28,806

 
4,728

 
—

 
30,091

Equity (income) loss from investments
(1,076
)
 
(4,463
)
 
(43,259
)
 
—

 
(48,798
)
Income before income taxes
$
291,291

 
$
200,364

 
$
34,469

 
$
—

 
$
526,124

Intersegment revenues
$
(280,520
)
 
$
(9,149
)
 
$
—

 
$
289,669

 
$
—

Capital expenditures
$
273,989

 
$
212,140

 
$
26,381

 
$
—

 
$
512,510

Depreciation and amortization
$
69,118

 
$
73,408

 
$
6,258

 
$
—

 
$
148,784

Total assets at February 28, 2015
$
4,322,316

 
$
8,237,930

 
$
3,412,797

 
$
—

 
$
15,973,043

 
 
 
 
 
 
 
 
 
 
 
Energy
 
Ag
 
Corporate
and Other
 
Reconciling
Amounts
 
Total
For the Six Months Ended February 28, 2014:
 

 
 

 
 

 
 

 
 

Revenues
$
6,202,509

 
$
14,764,699

 
$
34,208

 
$
(295,021
)
 
$
20,706,395

Cost of goods sold
5,748,029

 
14,411,048

 
(11
)
 
(295,021
)
 
19,864,045

Gross profit
454,480

 
353,651

 
34,219

 
—

 
842,350

Marketing, general and administrative
70,097

 
186,768

 
32,047

 
—

 
288,912

Operating earnings (losses)
384,383

 
166,883

 
2,172

 
—

 
553,438

(Gain) loss on investments
—

 
116

 
(2,725
)
 
—

 
(2,609
)
Interest, net
31,022

 
24,287

 
4,465

 
—

 
59,774

Equity (income) loss from investments
(2,157
)
 
(14,690
)
 
(46,880
)
 
—

 
(63,727
)
Income before income taxes
$
355,518

 
$
157,170

 
$
47,312

 
$
—

 
$
560,000

Intersegment revenues
$
(295,021
)
 
$
—

 
$
—

 
$
295,021

 
$
—

Capital expenditures
$
221,742

 
$
159,810

 
$
7,985

 
$
—

 
$
389,537

Depreciation and amortization
$
66,174

 
$
55,603

 
$
5,422

 
$
—

 
$
127,199

Total assets at February 28, 2014
$
4,091,794

 
$
7,678,688

 
$
2,533,775

 
$
—

 
$
14,304,257