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Derivative Financial Instruments and Hedging Activities | 9 Months Ended
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May 31, 2016
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 described 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 our 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 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.
| May 31, 2016
|  |  | 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 | $ | 553,048 |  |  | $ | — |  |  | $ | 47,618 |  |  | $ | 505,430 |
Foreign exchange derivatives | 14,088 |  |  | — |  |  | 6,672 |  |  | 7,416 |
Interest rate derivatives - hedge | 19,877 |  |  | — |  |  | — |  |  | 19,877 |
Total | $ | 587,013 |  |  | $ | — |  |  | $ | 54,290 |  |  | $ | 532,723 |
Derivative Liabilities: |  |  |  |  |  |  |
Commodity and freight derivatives | $ | 472,340 |  |  | $ | 9,857 |  |  | $ | 47,618 |  |  | $ | 414,865 |
Foreign exchange derivatives | 14,276 |  |  | — |  |  | 6,672 |  |  | 7,604 |
Interest rate derivatives - hedge | — |  |  | — |  |  | — |  |  | — |
Interest rate derivatives - non-hedge | 15 |  |  | — |  |  | — |  |  | 15 |
Total | $ | 486,631 |  |  | $ | 9,857 |  |  | $ | 54,290 |  |  | $ | 422,484 |
| August 31, 2015
|  |  | 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 | $ | 476,071 |  |  | $ | — |  |  | $ | 58,401 |  |  | $ | 417,670 |
Foreign exchange derivatives | 23,154 |  |  | — |  |  | 11,682 |  |  | 11,472 |
Interest rate derivatives - hedge | 14,216 |  |  | — |  |  | — |  |  | 14,216 |
Total | $ | 513,441 |  |  | $ | — |  |  | $ | 70,083 |  |  | $ | 443,358 |
Derivative Liabilities: |  |  |  |  |  |  |
Commodity and freight derivatives | $ | 427,052 |  |  | $ | 11,482 |  |  | $ | 58,401 |  |  | $ | 357,169 |
Foreign exchange derivatives | 37,598 |  |  | — |  |  | 11,682 |  |  | 25,916 |
Interest rate derivatives - hedge | 6,058 |  |  | — |  |  | — |  |  | 6,058 |
Interest rate derivatives - non-hedge | 61 |  |  | — |  |  | — |  |  | 61 |
Total | $ | 470,769 |  |  | $ | 11,482 |  |  | $ | 70,083 |  |  | $ | 389,204 |
Derivatives Not Designated as Hedging Instruments The majority of our derivative instruments have not been designated as hedging instruments for accounting purposes. 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 and nine months ended May 31, 2016, and 2015. We have revised the information that we have historically included in this table below to correct for immaterial errors in the previously disclosed amounts. Although such gains and losses have been, and continue to be, appropriately recorded in the Consolidated Statements of Operations, the previous disclosures did not accurately reflect the derivative gains and losses in each period. These disclosure revisions did not materially impact our consolidated financial statements.
|  |  | For the Three Months Ended May 31, |  | For the Nine Months Ended May 31,
| Location of Gain (Loss) |  | 2016 |  | 2015 |  | 2016 |  | 2015
|  |  | (Dollars in thousands)
Commodity and freight derivatives | Cost of goods sold |  | $ | (193,548 | ) |  | $ | 23,840 |  |  | $ | (103,532 | ) |  | $ | 136,384 |
Foreign exchange derivatives | Cost of goods sold |  | 2,249 |  |  | 4,816 |  |  | (7,550 | ) |  | 7,960 |
Foreign exchange derivatives | Marketing, general and administrative |  | (12,820 | ) |  | (605 | ) |  | 2,308 |  |  | 4,441 |
Interest rate derivatives | Interest, net |  | (5,096 | ) |  | 10 |  |  | (6,299 | ) |  | 84 |
Total |  | $ | (209,215 | ) |  | $ | 28,061 |  |  | $ | (115,073 | ) |  | $ | 148,869 |
Commodity and Freight Contracts: As of May 31, 2016, and August 31, 2015, we had outstanding commodity futures, options and freight contracts that were used as economic hedges, as well as fixed-price forward contracts related to physical purchases and sales of commodities. The table below presents the notional volumes for all outstanding commodity and freight contracts accounted for as derivative instruments.
| May 31, 2016 |  | August 31, 2015
| Long |  | Short |  | Long |  | Short
| (Units in thousands)
Grain and oilseed - bushels | 833,047 |  |  | 1,121,351 |  |  | 711,066 |  |  | 895,326 |
Energy products - barrels | 16,132 |  |  | 8,311 |  |  | 17,238 |  |  | 11,676 |
Processed grain and oilseed - tons | 651 |  |  | 4,191 |  |  | 706 |  |  | 2,741 |
Crop nutrients - tons | 33 |  |  | 28 |  |  | 48 |  |  | 116 |
Ocean and barge freight - metric tons | 4,425 |  |  | 2,813 |  |  | 5,916 |  |  | 1,962 |
Rail freight - rail cars | 193 |  |  | 82 |  |  | 297 |  |  | 122 |
Natural gas - MMBtu | 7,780 |  |  | — |  |  | — |  |  | — |
Foreign Exchange Contracts: We conduct a substantial portion of our business in U.S. dollars, but we are exposed to immaterial risks relating to foreign currency fluctuations primarily due to grain marketing transactions in South America and Europe and purchases of products from Canada. We use foreign currency derivative instruments to mitigate the impact of exchange rate fluctuations. Although our overall risk relating to foreign currency transactions is not significant, exchange rate 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. The notional amounts of our foreign exchange derivative contracts were $820.2 million and $1.3 billion as of May 31, 2016, and August 31, 2015, respectively. Derivatives Designated as Cash Flow or Fair Value Hedging Strategies As of May 31, 2016, and August 31, 2015, we had certain derivatives designated as cash flow and fair value hedges. Interest Rate Contracts: We have outstanding 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 in entering into these transactions 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 nine months ended May 31, 2016, and 2015, we recorded offsetting fair value adjustments of $7.6 million and $8.3 million, respectively, with no ineffectiveness recorded in earnings. In fiscal 2015, we entered into forward-starting interest rate swaps with an aggregate notional amount of $300.0 million designated as cash flow hedges of the expected variability of future interest payments on our anticipated issuance of fixed-rate debt. During the first quarter of fiscal 2016, we determined that certain of the anticipated debt issuances would be delayed; and we consequently recorded an immaterial amount of losses on the ineffective portion of the related swaps in earnings. Additionally, we paid $6.4 million in cash to settle two of the interest rate swaps upon their scheduled termination dates. During the second quarter of fiscal 2016, we settled an additional two interest rate swaps, paying $5.3 million in cash upon their scheduled termination. In January 2016, we issued the fixed-rate debt associated with these swaps and will amortize the amounts which were previously deferred to other comprehensive income into earnings over the life of the debt. The amounts to be included in earnings are not expected to be material during any 12-month period. During the third quarter of fiscal 2016, we settled the remaining two interest rate swaps, paying $5.1 million in cash upon their scheduled termination. We did not issue additional fixed-rate debt as previously planned, and we reclassified all amounts previously recorded to other comprehensive income into earnings. The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three and nine months ended May 31, 2016, and 2015.
|  | For the Three Months Ended May 31, |  | For the Nine Months Ended May 31,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
|  | (Dollars in thousands)
Interest rate derivatives |  | $ | — |  |  | $ | 389 |  |  | $ | (10,070 | ) |  | $ | (3,907 | )
The following table presents the pretax gains (losses) relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into income for the three and nine months ended May 31, 2016, and 2015.
|  |  | For the Three Months Ended May 31, |  | For the Nine Months Ended May 31,
| Location of Gain (Loss) |  | 2016 |  | 2015 |  | 2016 |  | 2015
|  |  | (Dollars in thousands)
Interest rate derivatives | Interest income (expense) |  | $ | (4,166 | ) |  | $ | (197 | ) |  | $ | (4,631 | ) |  | $ | (598 | )

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- Definition Derivative Financial Instruments and Hedging Activities [Abstract] + References No definition available. + Details
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- 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 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: 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=56946850&loc=SL5624171-113959 Reference 3: 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=56946850&loc=d3e41620-113959 Reference 4: 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=56946850&loc=SL5624163-113959 Reference 5: 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=56946850&loc=SL5579240-113959 Reference 6: 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=56946850&loc=SL5624177-113959 Reference 7: 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 8: 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=56946850&loc=d3e41641-113959 Reference 9: 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=56946850&loc=SL5579245-113959 Reference 10: 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=56946850&loc=SL5624258-113959 Reference 11: 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 12: 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=56946850&loc=SL5708775-113959 Reference 13: 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=56946850&loc=SL5708773-113959 Reference 14: 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=56946850&loc=SL5618551-113959 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=56946850&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 4E -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624181-113959 Reference 17: 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 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=56946850&loc=d3e41638-113959 Reference 19: 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 + Details
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