Equities

Preferred Stock

In June 2014, we filed a shelf registration statement on Form S-3 with the SEC. Under the shelf registration, which has been declared effective by the SEC, we may offer and sell, from time to time, up to $2.0 billion of our Class B Cumulative Redeemable Preferred Stock over a three-year period from the time of effectiveness. As of May 31, 2016, $990.0 million of our Class B Cumulative Redeemable Preferred Stock remained available for issuance under the shelf registration statement.

In September 2014, we issued 19,700,000 shares of Class B Series 3 Preferred Stock with a total redemption value of $492.5 million, excluding accumulated dividends. Net proceeds from the sale of our Class B Series 3 Preferred Stock, after deducting the underwriting discount and offering expenses payable by us, were approximately $476.7 million. The Class B Series 3 Preferred Stock is listed on the NASDAQ Stock Market LLC under the symbol CHSCM and accumulates dividends at a rate of 6.75% per year to, but excluding, September 30, 2024, and at a rate equal to the three-month LIBOR plus 4.155%, not to exceed 8.00% per annum thereafter, which are payable quarterly. Our Class B Series 3 Preferred Stock may be redeemed at our option beginning September 30, 2024.

In January 2015, we issued 20,700,000 shares of Class B Cumulative Redeemable Preferred Stock, Series 4 ("Class B Series 4 Preferred Stock") with a total redemption value of $517.5 million, excluding accumulated dividends. Net proceeds from the sale of our Class B Series 4 Preferred Stock, after deducting the underwriting discount and offering expenses payable by us, were approximately $501.0 million. The Class B Series 4 Preferred Stock is listed on the NASDAQ Stock Market LLC under the symbol CHSCL and accumulates dividends at a rate of 7.50% per year, which are payable quarterly. Our Class B Series 4 Preferred Stock may be redeemed at our option beginning January 21, 2025.

In March 2016, we redeemed approximately $76.8 million of patrons' equities by issuing 2,693,195 shares of Class B Cumulative Redeemable Preferred Stock, Series 1 ("Class B Series 1 Preferred Stock"), with a total redemption value of $67.3 million, excluding accumulated dividends. Each share of Class B Series 1 Preferred Stock was issued in redemption of $28.50 of patrons' equities in the form of members' equity certificates. The Class B Series 1 Preferred Stock is listed on the NASDAQ Stock Market LLC under the symbol CHSCO and accumulates dividends at a rate of 7.785% per year, which are payable quarterly. Our Class B Series 1 Preferred Stock may be redeemed at our option beginning September 26, 2023.

Changes in Equities

Changes in equities for the nine months ended May 31, 2016, are as follows:



	Equity Certificates											Accumulated Other Comprehensive Loss
	Capital Equity Certificates			Nonpatronage Equity Certificates			Nonqualified Equity Certificates			Preferred Stock		Accumulated Other Comprehensive Loss			Capital Reserves			Noncontrolling Interests			Total Equities
	(Dollars in thousands)
Balance, August 31, 2015	$	3,793,897		$	23,057		$	282,928		$	2,167,540	$	(214,207	)	$	1,604,670		$	11,526		$	7,669,411
Reversal of prior year patronage and redemption estimates	(281,393		)	—			—			—		—			625,444			—			344,051
Distribution of 2015 patronage refunds	375,504			—			—			—		—			(628,654		)	—			(253,150		)
Redemptions of equities	(93,292		)	(97		)	(483		)	—		—			—			—			(93,872		)
Equities issued, net	23,035			—			—			76,596		—			—			—			99,631
Preferred stock dividends	—			—			—			—		—			(122,382		)	—			(122,382		)
Other, net	297			(21		)	(316		)	—		—			(5,303		)	3,557			(1,786		)
Net income	—			—			—			—		—			425,767			(92		)	425,675
Other comprehensive income (loss), net of tax	—			—			—			—		413			—			—			413
Estimated 2016 cash patronage refunds	—			—			—			—		—			(102,818		)	—			(102,818		)
Estimated 2016 equity redemptions	(98,546		)	—			—			—		—			—			—			(98,546		)
Balance, May 31, 2016	$	3,719,502		$	22,939		$	282,129		$	2,244,136	$	(213,794	)	$	1,796,724		$	14,991		$	7,866,627

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the nine months ended May 31, 2016, and 2015:



	Pension and Other Postretirement Benefits			Unrealized Net Gain on Available for Sale Investments		Cash Flow Hedges			Foreign Currency Translation Adjustment			Total
	(Dollars in thousands)
Balance as of August 31, 2015	$	(171,729	)	$	4,156	$	(5,324	)	$	(41,310	)	$	(214,207	)
Current period other comprehensive income (loss), net of tax	135			462		(6,805		)	(6,380		)	(12,588		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	9,671			—		2,860			470			13,001
Net other comprehensive income (loss), net of tax	9,806			462		(3,945		)	(5,910		)	413
Balance as of May 31, 2016	$	(161,923	)	$	4,618	$	(9,269	)	$	(47,220	)	$	(213,794	)



	Pension and Other Postretirement Benefits			Unrealized Net Gain on Available for Sale Investments		Cash Flow Hedges			Foreign Currency Translation Adjustment			Total
	(Dollars in thousands)
Balance as of August 31, 2014	$	(151,852	)	$	4,398	$	(2,722	)	$	(6,581	)	$	(156,757	)
Current period other comprehensive income (loss), net of tax	236			570		(2,418		)	(12,295		)	(13,907		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	10,026			—		371			—			10,397
Net other comprehensive income (loss), net of tax	10,262			570		(2,047		)	(12,295		)	(3,510		)
Balance as of May 31, 2015	$	(141,590	)	$	4,968	$	(4,769	)	$	(18,876	)	$	(160,267	)

Amounts reclassified from accumulated other comprehensive income (loss) were primarily related to pension and other postretirement benefits. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts and are recorded as marketing, general and administrative expenses (see Note 8, Benefit Plans for further information).