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Segment Reporting | 9 Months Ended
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May 31, 2016
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We have aligned our segments in accordance with ASC Topic 280, Segment Reporting, and have identified our operating segments to reflect the manner in which our chief operating decision maker, our Chief Executive Officer, evaluates performance and manages the business. We have aggregated those operating segments into our reportable Energy, Ag and Nitrogen Production segments. 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, serves as a wholesaler and retailer of crop inputs and produces and markets ethanol. Our Nitrogen Production segment consists of our equity method investment in CF Nitrogen which was completed in February 2016 and entitles us to purchase granular urea and UAN annually from CF Nitrogen on a ratable basis. There were no changes to the composition of our Energy and Ag segments as a result of this investment, and there were no impacts to historically reported segment results and balances. 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. Corporate administrative expenses and interest are allocated to each business segment, and Corporate and Other, based on direct usage for services that can be tracked, and other factors or considerations relevant to the costs incurred. Many of our business activities are highly seasonal and operating results vary throughout the year. With the exception of our last two fiscal years, our income has generally been lowest during the second fiscal quarter and highest during the third fiscal quarter. For example, in our Ag segment, our crop nutrients and country operations businesses generally experience higher volumes and income during the spring planting season and in the fall, which corresponds to harvest. Our grain marketing operations are also subject to fluctuations in volume 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, ethanol, 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, drought, 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. See Note 4, Investments for more information on these entities. 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 nine months ended May 31, 2016, and 2015 is presented in the tables below. We have revised prior period amounts in these tables to include activity and amounts related to capital leases that were previously accounted for as operating leases. See Note 13, Correction of Immaterial Errors for more information on the nature and amounts of these revisions.
| Energy |  | Ag |  | Nitrogen Production |  | Corporate and Other |  | Reconciling Amounts |  | Total
For the Three Months Ended May 31, 2016: | (Dollars in thousands)
Revenues | $ | 1,322,624 |  |  | $ | 6,526,714 |  |  | $ | — |  |  | $ | 25,114 |  |  | $ | (77,864 | ) |  | $ | 7,796,588 |
Operating earnings (loss) | 103,614 |  |  | 24,432 |  |  | 253 |  |  | 19,761 |  |  | — |  |  | 148,060 |
(Gain) loss on investments | — |  |  | (881 | ) |  | — |  |  | 181 |  |  | — |  |  | (700 | )
Interest (income) expense, net | (4,487 | ) |  | 7,045 |  |  | 16,549 |  |  | 7,585 |  |  | — |  |  | 26,692 |
Equity (income) loss from investments | (1,300 | ) |  | (5,931 | ) |  | (41,257 | ) |  | (23,965 | ) |  | — |  |  | (72,453 | )
Income (loss) before income taxes | $ | 109,401 |  |  | $ | 24,199 |  |  | $ | 24,961 |  |  | $ | 35,960 |  |  | $ | — |  |  | $ | 194,521 |
Intersegment revenues | $ | (76,114 | ) |  | $ | (3,016 | ) |  | $ | — |  |  | $ | 1,266 |  |  | $ | 77,864 |  |  | $ | — |
| Energy |  | Ag |  | Nitrogen Production |  | Corporate and Other |  | Reconciling Amounts |  | Total
For the Three Months Ended May 31, 2015: | (Dollars in thousands)
Revenues | $ | 1,732,192 |  |  | $ | 7,088,072 |  |  | $ | — |  |  | $ | 17,750 |  |  | $ | (97,109 | ) |  | $ | 8,740,905 |
Operating earnings (loss) | 75,498 |  |  | 69,215 |  |  | — |  |  | 1,825 |  |  | — |  |  | 146,538 |
(Gain) loss on investments | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Interest (income) expense, net | (7,479 | ) |  | 15,494 |  |  | — |  |  | 2,765 |  |  | — |  |  | 10,780 |
Equity (income) loss from investments | (364 | ) |  | (7,964 | ) |  | — |  |  | (26,422 | ) |  | — |  |  | (34,750 | )
Income (loss) before income taxes | $ | 83,341 |  |  | $ | 61,685 |  |  | $ | — |  |  | $ | 25,482 |  |  | $ | — |  |  | $ | 170,508 |
Intersegment revenues | $ | (94,092 | ) |  | $ | (3,017 | ) |  | $ | — |  |  | $ | — |  |  | $ | 97,109 |  |  | $ | — |
| Energy |  | Ag |  | Nitrogen Production |  | Corporate and Other |  | Reconciling Amounts |  | Total
For the Nine Months Ended May 31, 2016: | (Dollars in thousands)
Revenues | $ | 4,162,685 |  |  | $ | 18,221,420 |  |  | $ | — |  |  | $ | 68,210 |  |  | $ | (287,605 | ) |  | $ | 22,164,710 |
Operating earnings (loss) | 214,827 |  |  | 77,605 |  |  | (5,506 | ) |  | 29,145 |  |  | — |  |  | 316,071 |
(Gain) loss on investments | — |  |  | (6,595 | ) |  | — |  |  | (2,827 | ) |  | — |  |  | (9,422 | )
Interest (income) expense, net | (20,897 | ) |  | 30,007 |  |  | 21,286 |  |  | 19,002 |  |  | — |  |  | 49,398 |
Equity (income) loss from investments | (3,487 | ) |  | (8,152 | ) |  | (53,112 | ) |  | (67,068 | ) |  | — |  |  | (131,819 | )
Income (loss) before income taxes | $ | 239,211 |  |  | $ | 62,345 |  |  | $ | 26,320 |  |  | $ | 80,038 |  |  | $ | — |  |  | $ | 407,914 |
Intersegment revenues | $ | (250,425 | ) |  | $ | (36,032 | ) |  | $ | — |  |  | $ | (1,148 | ) |  | $ | 287,605 |  |  | $ | — |
Capital expenditures | $ | 305,694 |  |  | $ | 205,517 |  |  | $ | — |  |  | $ | 46,478 |  |  | $ | — |  |  | $ | 557,689 |
Depreciation and amortization | $ | 139,391 |  |  | $ | 168,596 |  |  | $ | — |  |  | $ | 16,965 |  |  | $ | — |  |  | $ | 324,952 |
Total assets at May 31, 2016 | $ | 4,524,718 |  |  | $ | 7,959,387 |  |  | $ | 2,854,201 |  |  | $ | 2,919,788 |  |  | $ | — |  |  | $ | 18,258,094 |
| Energy |  | Ag |  | Nitrogen Production |  | Corporate and Other |  | Reconciling Amounts |  | Total
For the Nine Months Ended May 31, 2015: | (Dollars in thousands)
Revenues | $ | 6,697,942 |  |  | $ | 20,231,391 |  |  | $ | — |  |  | $ | 53,546 |  |  | $ | (386,778 | ) |  | $ | 26,596,101 |
Operating earnings (loss) | 362,645 |  |  | 293,247 |  |  | — |  |  | (4,425 | ) |  | — |  |  | 651,467 |
(Gain) loss on investments | — |  |  | (2,875 | ) |  | — |  |  | (2,199 | ) |  | — |  |  | (5,074 | )
Interest (income) expense, net | (10,547 | ) |  | 46,500 |  |  | — |  |  | 7,504 |  |  | — |  |  | 43,457 |
Equity (income) loss from investments | (1,440 | ) |  | (12,427 | ) |  | — |  |  | (69,681 | ) |  | — |  |  | (83,548 | )
Income (loss) before income taxes | $ | 374,632 |  |  | $ | 262,049 |  |  | $ | — |  |  | $ | 59,951 |  |  | $ | — |  |  | $ | 696,632 |
Intersegment revenues | $ | (374,612 | ) |  | $ | (12,166 | ) |  | $ | — |  |  | $ | — |  |  | $ | 386,778 |  |  | $ | — |
Capital expenditures | $ | 494,681 |  |  | $ | 309,384 |  |  | $ | — |  |  | $ | 54,435 |  |  | $ | — |  |  | $ | 858,500 |
Depreciation and amortization | $ | 107,910 |  |  | $ | 137,712 |  |  | $ | — |  |  | $ | 10,451 |  |  | $ | — |  |  | $ | 256,073 |
Total assets at May 31, 2015 | $ | 4,625,773 |  |  | $ | 8,141,681 |  |  | $ | — |  |  | $ | 3,085,528 |  |  | $ | — |  |  | $ | 15,852,982 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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