Benefit Plans (Tables)

12 Months Ended

Aug. 31, 2017

Schedule of defined benefit plans disclosures

Financial information on changes in benefit obligation, plan assets funded and balance sheets status as of August 31, 2017, and 2016, is as follows:



	Qualified Pension Benefits						Non-Qualified Pension Benefits						Other Benefits
	2017			2016			2017			2016			2017			2016
	(Dollars in thousands)
Change in benefit obligation:
Benefit obligation at beginning of period	$	812,749		$	730,795		$	32,696		$	33,184		$	36,779		$	41,997
Service cost	42,149			37,533			1,206			1,035			1,160			1,412
Interest cost	22,999			30,773			843			1,406			930			1,709
Actuarial (gain) loss	(10,054		)	361			(5,692		)	(3,333		)	(4,650		)	(4,892		)
Assumption change	(17,750		)	57,385			(655		)	2,679			(775		)	2,602
Plan amendments	—			411			—			(1,045		)	—			(4,495		)
Settlements	—			—			(2,131		)	—			—			—
Benefits paid	(43,919		)	(44,509		)	(668		)	(1,230		)	(1,608		)	(1,554		)
Benefit obligation at end of period	$	806,174		$	812,749		$	25,599		$	32,696		$	31,836		$	36,779
Change in plan assets:
Fair value of plan assets at beginning of period	$	883,265		$	796,379		$	—		$	—		$	—		$	—
Actual gain (loss) on plan assets	36,474			88,089			—			—			—			—
Company contributions	—			43,306			2,799			1,230			1,608			1,554
Settlements	—			—			(2,131		)	—			—			—
Benefits paid	(43,919		)	(44,509		)	(668		)	(1,230		)	(1,608		)	(1,554		)
Fair value of plan assets at end of period	$	875,820		$	883,265		$	—		$	—		$	—		$	—
Funded status at end of period	$	69,646		$	70,516		$	(25,599	)	$	(32,696	)	$	(31,836	)	$	(36,779	)
Amounts recognized on balance sheet:
Non-current assets	$	70,019		$	70,594		$	—		$	—		$	—		$	—
Accrued benefit cost:
Current liabilities	—			—			(2,270		)	(1,880		)	(2,140		)	(2,490		)
Non-current liabilities	(373		)	(78		)	(23,329		)	(30,816		)	(29,696		)	(34,289		)
Ending balance	$	69,646		$	70,516		$	(25,599	)	$	(32,696	)	$	(31,836	)	$	(36,779	)
Amounts recognized in accumulated other comprehensive loss (pretax):
Prior service cost (credit)	$	2,481		$	4,021		$	363		$	(641	)	$	(4,281	)	$	(4,847	)
Net (gain) loss	236,232			275,146			(70		)	7,815			(16,864		)	(12,235		)
Ending balance	$	238,713		$	279,167		$	293		$	7,174		$	(21,145	)	$	(17,082	)

Schedule of net benefit costs of assumptions used

Components of net periodic benefit costs for the years ended August 31, 2017, 2016, and 2015 are as follows:



	Qualified Pension Benefits									Non-Qualified Pension Benefits									Other Benefits
	2017			2016			2015			2017			2016			2015			2017			2016			2015
	(Dollars in thousands)
Components of net periodic benefit costs:
Service cost	$	42,149		$	37,533		$	36,006		$	1,206		$	1,035		$	875		$	1,160		$	1,412		$	1,513
Interest cost	22,999			30,773			28,046			843			1,406			1,414			930			1,709			1,489
Expected return on assets	(48,235		)	(48,055		)	(49,746		)	—			—			—			—			—			—
Settlement of retiree obligations	—			—			—			(30		)	—			1,635			—			—			—
Prior service cost (credit) amortization	1,540			1,606			1,631			19			228			228			(565		)	(120		)	(426		)
Actuarial loss amortization	22,869			19,016			19,621			546			692			1,058			(798		)	(464		)	(431		)
Net periodic benefit cost	$	41,322		$	40,873		$	35,558		$	2,584		$	3,361		$	5,210		$	727		$	2,537		$	2,145
Weighted-average assumptions to determine the net periodic benefit cost:
Discount rate	3.60		%	4.20		%	4.00		%	3.30		%	4.20		%	4.00		%	3.30		%	4.20		%	4.20		%
Expected return on plan assets	5.75		%	6.00		%	6.50		%	N/A			N/A			N/A			N/A			N/A			N/A
Rate of compensation increase	5.60		%	4.90		%	4.90		%	5.60		%	4.90		%	5.15		%	N/A			N/A			N/A
Weighted-average assumptions to determine the benefit obligations:
Discount rate	3.80		%	3.60		%	4.20		%	3.55		%	3.30		%	4.50		%	3.60		%	3.30		%	3.75		%
Rate of compensation increase	5.10		%	5.60		%	4.90		%	5.10		%	5.60		%	4.80		%	N/A			N/A			N/A

Schedule of amounts in accumulated other comprehensive income (loss) to be recognized over next fiscal year

The estimated amortization in fiscal 2018 from accumulated other comprehensive loss into net periodic benefit cost is as follows:



	Qualified Pension Benefits		Non-Qualified Pension Benefits		Other Benefits
	(Dollars in thousands)
Amortization of prior service cost (benefit)	$	1,540	$	30	$	(565	)
Amortization of net actuarial (gain) loss	18,073		61		(1,224		)

Schedule of effect of one-percentage-point change in assumed health care cost trend rates

A one-percentage point change in the assumed health care cost trend rates would have the following effects:



	1% Increase		1% Decrease
	(Dollars in thousands)
Effect on total of service and interest cost components	$	240	$	(200	)
Effect on postretirement benefit obligation	2,500		(2,200		)

Schedule of expected benefit payments

retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows:



	Qualified Pension Benefits		Non-Qualified Pension Benefits		Other Benefits Gross
	(Dollars in thousands)
2018	$	64,044	$	2,270	$	2,140
2019	61,510		2,170		2,240
2020	59,997		1,960		2,510
2021	61,753		1,950		2,530
2022	62,869		2,440		2,670
2023-2027	325,797		11,960		12,750

Schedule of defined benefit plans, fair value disclosure

pension plans’ recurring fair value measurements by asset category at August 31, 2017, and 2016, are presented in the tables below:



	2017
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Cash and cash equivalents	$	9,988	$	—	$	—	$	9,988
Equities:
Mutual funds	459		—		—		459
Common/collective trust at net asset value ⁽¹⁾	—		—		—		231,228
Fixed income securities:
Common/collective trust at net asset value ⁽¹⁾	—		—		—		535,185
Partnership and joint venture interests measured at net asset value ⁽¹⁾	—		—		—		96,994
Other assets measured at net asset value ⁽¹⁾	—		—		—		1,966
Total	$	10,447	$	—	$	—	$	875,820



	2016
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Cash and cash equivalents	$	4,841	$	—	$	—	$	4,841
Equities:
Mutual funds	507		—		—		507
Common/collective trust at net asset value ⁽¹⁾	—		—		—		228,717
Fixed income securities:
Common/collective trust at net asset value ⁽¹⁾	—		—		—		551,604
Partnership and joint venture interests measured at net asset value ⁽¹⁾	—		—		—		95,744
Other assets measured at net asset value ⁽¹⁾	—		—		—		1,852
Total	$	5,348	$	—	$	—	$	883,265

Schedule of multiemployer plans

participation in the Co-op Plan for the years ended August 31, 2017, 2016, and 2015 is outlined in the table below:



		Contributions of CHS
		(Dollars in thousands)
Plan Name	EIN/Plan Number	2017		2016		2015		Surcharge Imposed	Expiration Date of Collective Bargaining Agreement
Co-op Retirement Plan	01-0689331 / 001	$	1,653	$	1,862	$	2,021	N/A	N/A