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Investments | 12 Months Ended
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Aug. 31, 2016
Investments [Abstract] |
Investments | Investments Investments as of August 31, 2016 and 2015 are as follows:
| 2016 |  | 2015
| (Dollars in thousands)
Equity method investments: |  |  |
CF Industries Nitrogen, LLC | $ | 2,796,323 |  |  | $ | — |
Ventura Foods, LLC | 369,487 |  |  | 347,749 |
Ardent Mills, LLC | 194,986 |  |  | 196,808 |
TEMCO, LLC | 44,578 |  |  | 57,656 |
Other equity method investments | 263,025 |  |  | 269,423 |
Cost method investments | 127,577 |  |  | 130,456 |
Total investments | $ | 3,795,976 |  |  | $ | 1,002,092 |
Joint ventures and other investments, in which we have significant ownership and influence, but not control, are accounted for in our consolidated financial statements using the equity method of accounting. Our significant equity method investments are summarized below. On February 1, 2016, we invested $2.8 billion in CF Nitrogen, commencing our strategic venture with CF Industries Holdings, Inc. The investment consists of an 11.4% membership interest (based on product tons) in CF Nitrogen. We also entered into an 80-year supply agreement that entitles us to purchase up to 1.1 million tons of granular urea and 580,000 tons of urea ammonium nitrate ("UAN") annually from CF Nitrogen for ratable delivery. Our purchases under the supply agreement are based on prevailing market prices and we receive semi-annual cash distributions (in January and July of each year) from CF Nitrogen via our membership interest. These distributions are based on actual volumes purchased from CF Nitrogen under the strategic venture and will have the effect of reducing our investment to zero over 80 years on a straight-line basis. We account for this investment using the hypothetical liquidation at book value method, recognizing our share of the earnings and losses of CF Nitrogen based upon our contractual claims on the entity's net assets pursuant to the liquidation provisions of CF Nitrogen's Limited Liability Company Agreement, adjusted for the semi-annual cash distributions. For the year ended August 31, 2016, this amount was $74.7 million, and is included as equity income from investments in our Nitrogen Production segment. The following tables provide aggregate summarized audited financial information for CF Nitrogen for the balance sheet as of August 31, 2016, and the statement of operations for the seven months ended August 31, 2016:
| 2016
| (Dollars in thousands)
Current assets | $ | 534,878 |
Non-current assets | 7,043,121 |
Current liabilities | 556,696 |
Non-current liabilities | — |
| 2016
| (Dollars in thousands)
Net sales | $ | 1,027,142 |
Gross profit | 243,911 |
Net earnings | 186,665 |
Earnings attributable to CHS Inc. | 74,700 |
We have a 50% interest in Ventura Foods, LLC, a joint venture which produces and distributes primarily vegetable oil-based products, and which constitutes our Foods segment. We account for Ventura Foods as an equity method investment, and as of August 31, 2016, our carrying value of Ventura Foods exceeded our share of its equity by $12.9 million, which represents equity method goodwill. During the first three quarters of fiscal 2014, we had a 24% interest in Horizon Milling, LLC and Horizon Milling, ULC ("Horizon Milling"), which were flour milling joint ventures with Cargill, Incorporated ("Cargill") and were accounted for as equity method investments included in Corporate and Other. In the third quarter of fiscal 2014, we formed Ardent Mills LLC ("Ardent Mills"), a joint venture with Cargill and ConAgra Foods, Inc., which combined the North American flour milling operations of the three parent companies, including the Horizon Milling assets and CHS-owned mills, with CHS holding a 12% interest in Ardent Mills. Prior to closing, we contributed $32.8 million to Horizon Milling to pay off existing debt as a pre-condition to close. Upon closing, Ardent Mills was financed with funds from third-party borrowings, which did not require credit support from the owners. We received $121.2 million of cash proceeds distributed to us in proportion to our ownership interest, adjusted for deviations in specified working capital target amounts, and recognized a gain of $109.2 million associated with this transaction. In connection with the closing, the parties also entered into various ancillary and non-compete agreements including, among other things, an agreement for us to supply Ardent Mills with certain wheat and durum products. As we hold one of the five board seats, we account for Ardent Mills as an equity method investment included in Corporate and Other. TEMCO, LLC ("TEMCO") is owned and governed by Cargill (50%) and CHS (50%). During the year ended August 31, 2012, we entered into an amended and restated agreement to expand the scope of the original agreement with Cargill. Pursuant to the terms of the agreement, CHS and Cargill each agreed to commit to sell all of their feedgrains, wheat, oilseeds and by-product origination that are tributary to the Pacific Northwest, United States ("Pacific Northwest") to TEMCO and to use TEMCO as their exclusive export-marketing vehicle for such grains exported through the Pacific Northwest for a term of 25 years. Cargill's Tacoma, Washington and Portland Oregon facilities continues to be subleased to TEMCO. We account for TEMCO as an equity method investment included in our Ag segment. The following tables provide aggregate summarized audited financial information for our major equity method investments in Ventura Foods, Ardent Mills and TEMCO for balance sheets as of August 31, 2016 and 2015, and statements of operations for the twelve months ended August 31, 2016, 2015 and 2014:
| 2016 |  | 2015
| (Dollars in thousands)
Current assets | $ | 1,638,780 |  |  | $ | 1,892,563 |
Non-current assets | 2,495,955 |  |  | 2,388,757 |
Current liabilities | 836,544 |  |  | 968,104 |
Non-current liabilities | 853,549 |  |  | 881,312 |
| 2016 |  | 2015 |  | 2014
| (Dollars in thousands)
Net sales | $ | 8,776,261 |  |  | $ | 9,054,677 |  |  | $ | 8,796,648 |
Gross profit | 674,181 |  |  | 754,375 |  |  | 562,053 |
Net earnings | 238,870 |  |  | 313,664 |  |  | 266,354 |
Earnings attributable to CHS Inc. | 75,858 |  |  | 81,101 |  |  | 83,023 |
Our investments in equity method investees other than the four entities described above are not significant in relation to our consolidated financial statements, either individually or in the aggregate.

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