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Restatement of Previously Issued Consolidated Financial Statements (Tables) | 12 Months Ended
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Aug. 31, 2018
Accounting Changes and Error Corrections [Abstract] |
Summary of impacts of the restatement adjustments | The following tables present the summary impacts of the restatement adjustments on our previously reported consolidated capital reserves and total equities at August 31, 2015, and income (loss) before income taxes and net income (loss) for the years ended August 31, 2017 and 2016:
| August 31, 2015
| Capital Reserves |  | Total Equities
| (Dollars in thousands)
As previously reported | $ | 1,604,670 |  |  | $ | 7,669,411 |
Cumulative restatement adjustments | (119,237 | ) |  | (117,972 | )
As restated | $ | 1,485,433 |  |  | $ | 7,551,439 |
| For the Years Ended August 31,
| 2017 |  | 2016
| (Dollars in thousands)
Income (loss) before income taxes - As previously reported | $ | (54,852 | ) |  | $ | 419,878 |
Restatement adjustments | (55,314 | ) |  | (17,753 | )
Income (loss) before income taxes - As restated | $ | (110,166 | ) |  | $ | 402,125 |
Net income (loss) - As previously reported | $ | 127,223 |  |  | $ | 423,969 |
Restatement adjustments | (56,265 | ) |  | (40,943 | )
Net income (loss) - As restated | $ | 70,958 |  |  | $ | 383,026 |
The following tables present the restatement adjustments to previously issued consolidated financial statements, including the previously reported Consolidated Balance Sheet as of August 31, 2017, and the Consolidated Statements of Operations, Comprehensive Income and Cash Flows for the years ended August 31, 2017, and 2016. The corrections of misstatements affecting fiscal years prior to fiscal 2017 are reflected as a cumulative adjustment to the balance of capital reserves and accumulated other comprehensive income as of August 31, 2015, on the Consolidated Statements of Changes in Shareholders’ Equity. CHS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
| As of August 31, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
ASSETS |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 181,379 |  |  | $ | — |  |  | $ | 181,379 |  |  |
Receivables | 1,869,632 |  |  | 22,536 |  |  | 1,892,168 |  |  | c
Inventories | 2,576,585 |  |  | 25,019 |  |  | 2,601,604 |  |  | c
Derivative assets | 232,017 |  |  | (13,275 | ) |  | 218,742 |  |  | a
Margin and related deposits | 206,062 |  |  | — |  |  | 206,062 |  |  |
Supplier advance payments | 249,234 |  |  | — |  |  | 249,234 |  |  |
Other current assets | 299,618 |  |  | (17,693 | ) |  | 281,925 |  |  | a, c
Total current assets | 5,614,527 |  |  | 16,587 |  |  | 5,631,114 |  |  |
Investments | 3,750,993 |  |  | — |  |  | 3,750,993 |  |  |
Property, plant and equipment | 5,356,434 |  |  | — |  |  | 5,356,434 |  |  |
Other assets | 1,251,802 |  |  | (171,421 | ) |  | 1,080,381 |  |  | a
Total assets | $ | 15,973,756 |  |  | $ | (154,834 | ) |  | $ | 15,818,922 |  |  |
LIABILITIES AND EQUITIES |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |
Notes payable | $ | 1,988,215 |  |  | $ | (3,052 | ) |  | $ | 1,985,163 |  |  | c
Current portion of long-term debt | 156,345 |  |  | — |  |  | 156,345 |  |  |
Customer margin deposits and credit balances | 157,914 |  |  | — |  |  | 157,914 |  |  |
Customer advance payments | 413,163 |  |  | 10,607 |  |  | 423,770 |  |  | c
Accounts payable | 1,951,292 |  |  | 40,002 |  |  | 1,991,294 |  |  | c
Derivative liabilities | 316,018 |  |  | (15,072 | ) |  | 300,946 |  |  | a
Accrued expenses | 437,527 |  |  | 17,469 |  |  | 454,996 |  |  | a, c
Dividends and equities payable | 12,121 |  |  | — |  |  | 12,121 |  |  |
Total current liabilities | 5,432,595 |  |  | 49,954 |  |  | 5,482,549 |  |  |
Long-term debt | 2,023,448 |  |  | — |  |  | 2,023,448 |  |  |
Long-term deferred tax liabilities | 333,221 |  |  | (3,241 | ) |  | 329,980 |  |  | a, c
Other liabilities | 278,667 |  |  | (1,362 | ) |  | 277,305 |  |  | a
Commitments and contingencies (Note 15) |  |  |  |  |  |  |  |  |  |
Equities: |  |  |  |  |  |  |
Preferred stock | 2,264,038 |  |  | — |  |  | 2,264,038 |  |  |
Equity certificates | 4,341,649 |  |  | — |  |  | 4,341,649 |  |  |
Accumulated other comprehensive loss | (183,670 | ) |  | 3,310 |  |  | (180,360 | ) |  | a, c
Capital reserves | 1,471,217 |  |  | (203,409 | ) |  | 1,267,808 |  |  | a, c
Total CHS Inc. equities | 7,893,234 |  |  | (200,099 | ) |  | 7,693,135 |  |  |
Noncontrolling interests | 12,591 |  |  | (86 | ) |  | 12,505 |  |  | a
Total equities | 7,905,825 |  |  | (200,185 | ) |  | 7,705,640 |  |  |
Total liabilities and equities | $ | 15,973,756 |  |  | $ | (154,834 | ) |  | $ | 15,818,922 |  |  |
As of August 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $174.1 million reduction of total assets, a $39.1 million reduction of current liabilities, a $27.5 million increase of long-term liabilities, and a $162.4 million reduction of total equities. The reduction of total assets related primarily to the elimination of $156.0 million of long-term derivative assets, an approximate $16.0 million reduction of goodwill which was triggered by the lower earnings associated with this restatement with the impairment charge recorded during fiscal 2015 and the elimination of $12.9 million of current derivative assets that had been recorded as assets on the Consolidated Balance Sheet. The decreases of total assets were partially offset by related adjustments, including an $8.9 million increase of prepaid income taxes resulting from the income tax impact of the freight misstatement and the recognition of a $1.5 million prepaid freight capacity balance. The decrease of total current liabilities related primarily to an $18.0 million reduction of current derivative liabilities and a $21.1 million reduction of income taxes payable resulting from the income tax effect of the freight misstatement. The increase of long-term liabilities resulted from a $28.9 million increase of long-term deferred tax liabilities, which was partially offset by a $1.4 million reduction of long-term derivative liabilities. The decrease of total equities related primarily to the elimination of the derivative assets and liabilities described above and the related income tax impacts, as well as the reduction of goodwill associated with the goodwill impairment charge recorded during fiscal 2015. Intercompany misstatements (b) None Other misstatements (c) Adjustments for other misstatements related primarily to misclassifications between line items included within the Consolidated Balance Sheets, as well as the impact of certain income tax adjustments on prepaid income taxes, income taxes payable and deferred income taxes. The misclassification adjustments arose primarily due to the application of differing accounting policies between businesses and collectively with the impact of income tax adjustments resulted in a $19.3 million increase of total assets, an $89.1 million increase of current liabilities, a $32.1 million decrease of long-term liabilities and a $37.7 million decrease of total equities. The increase of total assets related primarily to a $49.2 million increase of inventory with a corresponding increase to accounts payable that resulted from a misclassification adjustment for certain items previously included within a contra-inventory account to accounts payable. The increased inventories were partially offset by a $24.1 million misclassification adjustment to decrease inventory and increase accounts receivable as a result of a timing difference related to the settlement of a single ocean vessel. The increase of total assets was partially offset by a $28.1 million decrease of prepaid income taxes associated with the correction of other misstatements identified during fiscal 2017 and other periods. The increase of current liabilities related primarily to the $49.2 million increase of accounts payable as a result of a misclassification adjustment for certain items previously included within a contra-inventory account to accounts payable and a $38.6 million increase of accrued expenses. The increase of accrued expenses primarily resulted from the recognition of a $24.9 million accrued income tax balance associated with the correction of other misstatements identified during fiscal 2017 and other periods. Additionally, $13.7 million of accrued expenses were recorded in relation to the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. The decrease of long-term liabilities related to a $32.1 million decrease of long-term deferred tax liabilities that arose from the correction of other misstatements identified during fiscal 2017 and other periods. The $37.7 million decrease of total equities was primarily related to the $20.6 million net impact on income tax accounts and the recognition of $13.7 million of additional accrued expenses due to the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Year Ended August 31, 2017 |  | For the Year Ended August 31, 2016 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Revenues | $ | 31,934,751 |  |  | $ | 102,675 |  |  | $ | 32,037,426 |  |  | $ | 30,347,203 |  |  | $ | 8,057 |  |  | $ | 30,355,260 |  |  | a, b, c
Cost of goods sold | 30,985,510 |  |  | 157,256 |  |  | 31,142,766 |  |  | 29,387,910 |  |  | (1,395 | ) |  | 29,386,515 |  |  | a, b, c
Gross profit | 949,241 |  |  | (54,581 | ) |  | 894,660 |  |  | 959,293 |  |  | 9,452 |  |  | 968,745 |  |  |
Marketing, general and administrative | 604,359 |  |  | 7,648 |  |  | 612,007 |  |  | 601,261 |  |  | 5 |  |  | 601,266 |  |  | c
Reserve and impairment charges (recoveries), net | 456,679 |  |  | — |  |  | 456,679 |  |  | 47,836 |  |  | 27,200 |  |  | 75,036 |  |  | c
Operating earnings (loss) | (111,797 | ) |  | (62,229 | ) |  | (174,026 | ) |  | 310,196 |  |  | (17,753 | ) |  | 292,443 |  |  |
(Gain) loss on disposal of business | — |  |  | 2,190 |  |  | 2,190 |  |  | — |  |  | — |  |  | — |  |  | c
Interest expense | 171,239 |  |  | — |  |  | 171,239 |  |  | 113,704 |  |  | — |  |  | 113,704 |  |  |
Other (income) loss | (90,846 | ) |  | (9,105 | ) |  | (99,951 | ) |  | (47,609 | ) |  | — |  |  | (47,609 | ) |  | c
Equity (income) loss from investments | (137,338 | ) |  | — |  |  | (137,338 | ) |  | (175,777 | ) |  | — |  |  | (175,777 | ) |  |
Income (loss) before income taxes | (54,852 | ) |  | (55,314 | ) |  | (110,166 | ) |  | 419,878 |  |  | (17,753 | ) |  | 402,125 |  |  |
Income tax expense (benefit) | (182,075 | ) |  | 951 |  |  | (181,124 | ) |  | (4,091 | ) |  | 23,190 |  |  | 19,099 |  |  | a, c
Net income (loss) | 127,223 |  |  | (56,265 | ) |  | 70,958 |  |  | 423,969 |  |  | (40,943 | ) |  | 383,026 |  |  |
Net income (loss) attributable to noncontrolling interests | (634 | ) |  | — |  |  | (634 | ) |  | (223 | ) |  | — |  |  | (223 | ) |  |
Net income (loss) attributable to CHS Inc. | $ | 127,857 |  |  | $ | (56,265 | ) |  | $ | 71,592 |  |  | $ | 424,192 |  |  | $ | (40,943 | ) |  | $ | 383,249 |  |  |
For the year ended August 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $38.1 million reduction of income before income taxes and a $47.3 million reduction of net income. These adjustments related primarily to a $38.1 million increase of cost of goods sold and a $9.2 million increase of income tax expense resulting from the tax effect of the freight derivatives and related misstatements. Intercompany misstatements (b) The correction of intercompany misstatements had no impact on income (loss) before income taxes or net income (loss); however, the correction resulted in a $35.7 million decrease of both revenues and cost of goods sold due to different practices of eliminating intercompany sales between CHS's businesses which existed in previous periods. Other misstatements (c) The correction of other misstatements resulted in a $17.2 million decrease of income before income taxes and a $9.0 million decrease of net income. The $17.2 million decrease of income before income taxes related to a $12.1 million increase of cost of goods sold due to the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018, a $2.6 million combined increase in cost of goods sold and marketing, general and administrative expenses for postretirement benefit plan activity that resulted from a timing difference associated with recording certain benefit plan expenses and a $2.5 million increase of costs of goods sold related to the valuation of crack spread derivatives. An income tax benefit of $8.2 million partially offset the decrease of income before income taxes and was recorded to adjust for the impact of other identified misstatements, as well as income tax items that had previously been identified and recorded as out of period adjustments in subsequent periods. Additionally, certain misclassification and offsetting adjustments were made between line items included in the Consolidated Statements of Operations primarily due to the application of differing accounting policies between businesses. These misclassification adjustments resulted in a $138.4 million increase of revenues, a $138.3 million increase of cost of goods sold, a $7.0 million increase of marketing, general and administrative expenses, a $2.2 million increase of loss on disposal of business and a $9.1 million increase of other income. For the year ended August 31, 2016 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $15.7 million reduction of income before income taxes and a $9.9 million reduction of net income. These adjustments related to a $15.7 million increase of cost of goods sold and a $5.8 million income tax benefit resulting from the tax effect of the freight derivatives and related misstatements. Intercompany misstatements (b) The correction of intercompany misstatements had no impact on income (loss) before income taxes or net income (loss); however, the correction resulted in a $57.5 million decrease of both revenues and cost of goods sold due to different practices of eliminating intercompany sales between CHS's businesses which existed in previous periods. Other misstatements The correction of other misstatements resulted in a $2.1 million decrease of income before income taxes and a $31.0 million decrease of net income. The $2.1 million decrease of income before income taxes related to a $1.7 million increase of cost of goods sold due to the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018 and a $0.4 million increase of costs of goods sold related to the valuation of crack spread derivatives. In addition to the decrease of income before income taxes, additional income tax expense of $29.0 million was recorded to adjust for the impact of other identified misstatements, as well as income tax items that had previously been identified and recorded as out of period adjustments in subsequent periods. Additionally, misclassification and offsetting adjustments were made between line items included in the Consolidated Statements of Operations primarily due to the application of differing accounting policies between businesses between businesses. These adjustments resulted in a $65.6 million increase of revenues, a $38.4 million increase of cost of goods sold and a $27.2 million increase of reserve and impairment charges (recoveries), net. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| For the Year Ended August 31, 2017 |  | For the Year Ended August 31, 2016 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Net income (loss) | $ | 127,223 |  |  | $ | (56,265 | ) |  | $ | 70,958 |  |  | $ | 423,969 |  |  | $ | (40,943 | ) |  | $ | 383,026 |  |  | a, b, c
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |  |  |
Postretirement benefit plan activity | 30,100 |  |  | 2,602 |  |  | 32,702 |  |  | 6,583 |  |  | — |  |  | 6,583 |  |  | c
Unrealized net gain (loss) on available for sale investments | 4,385 |  |  | — |  |  | 4,385 |  |  | 1,500 |  |  | — |  |  | 1,500 |  |  |
Cash flow hedges | 2,242 |  |  | — |  |  | 2,242 |  |  | (3,872 | ) |  | — |  |  | (3,872 | ) |  |
Foreign currency translation adjustment | (8,671 | ) |  | 512 |  |  | (8,159 | ) |  | (1,730 | ) |  | (1,174 | ) |  | (2,904 | ) |  | a
Other comprehensive income (loss), net of tax | 28,056 |  |  | 3,114 |  |  | 31,170 |  |  | 2,481 |  |  | (1,174 | ) |  | 1,307 |  |  |
Comprehensive income | 155,279 |  |  | (53,151 | ) |  | 102,128 |  |  | 426,450 |  |  | (42,117 | ) |  | 384,333 |  |  |
Less comprehensive income attributable to noncontrolling interests | (634 | ) |  | — |  |  | (634 | ) |  | (223 | ) |  | — |  |  | (223 | ) |  |
Comprehensive income attributable to CHS Inc. | $ | 155,913 |  |  | $ | (53,151 | ) |  | $ | 102,762 |  |  | $ | 426,673 |  |  | $ | (42,117 | ) |  | $ | 384,556 |  |  |
For the year ended August 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $47.3 million reduction of net income. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the year ended August 31, 2017, above. The adjustment related to foreign currency translation relates to the foreign currency impact associated with goodwill that was impaired during fiscal 2015. Intercompany misstatements (b) None Other misstatements (c) The correction of other misstatements resulted in a $9.0 million decrease of net income. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the year ended August 31, 2017, above. The adjustment related to postretirement benefit plan activity relates to a timing difference associated with recording certain benefit plan expenses. For the year ended August 31, 2016 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $9.9 million reduction of net income. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the year ended August 31, 2016, above. The adjustment related to foreign currency translation relates to the foreign currency impact associated with goodwill that was impaired during fiscal 2015. Intercompany misstatements (b) None Other misstatements (c) The correction of other misstatements resulted in a $31.0 million decrease of net income. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the year ended August 31, 2016, above. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITIES
| For the Years Ended August 31, 2017, 2016, and 2015
| Equity Certificates |  |  |  | Accumulated Other Comprehensive Loss |  |  |  |  |  |
| Capital Equity Certificates |  | Nonpatronage Equity Certificates |  | Nonqualified Equity Certificates |  | Preferred Stock |  |  | Capital Reserves |  | Noncontrolling Interests |  | Total Equities
| (Dollars in thousands)
Balances, August 31, 2015 (As previously reported) | $ | 3,793,897 |  |  | $ | 23,057 |  |  | $ | 282,928 |  |  | $ | 2,167,540 |  |  | $ | (214,207 | ) |  | $ | 1,604,670 |  |  | $ | 11,526 |  |  | $ | 7,669,411 |
Cumulative restatement adjustments | — |  |  | — |  |  | — |  |  | — |  |  | 1,370 |  |  | (119,237 | ) |  | (105 | ) |  | (117,972 | )
Balances, August 31, 2015 (As restated) | $ | 3,793,897 |  |  | $ | 23,057 |  |  | $ | 282,928 |  |  | $ | 2,167,540 |  |  | $ | (212,837 | ) |  | $ | 1,485,433 |  |  | $ | 11,421 |  |  | $ | 7,551,439 |
Balances, August 31, 2016 (As previously reported) | $ | 3,932,513 |  |  | $ | 22,894 |  |  | $ | 281,767 |  |  | $ | 2,244,132 |  |  | $ | (211,726 | ) |  | $ | 1,582,380 |  |  | $ | 14,290 |  |  | $ | 7,866,250 |
Cumulative restatement adjustments | (13,802 | ) |  | — |  |  | — |  |  | — |  |  | 196 |  |  | (93,381 | ) |  | (104 | ) |  | (107,091 | )
Balances, August 31, 2016 (As restated) | $ | 3,918,711 |  |  | $ | 22,894 |  |  | $ | 281,767 |  |  | $ | 2,244,132 |  |  | $ | (211,530 | ) |  | $ | 1,488,999 |  |  | $ | 14,186 |  |  | $ | 7,759,159 |
Balances, August 31, 2017 (As previously reported) | $ | 3,906,426 |  |  | $ | 29,836 |  |  | $ | 405,387 |  |  | $ | 2,264,038 |  |  | $ | (183,670 | ) |  | $ | 1,471,217 |  |  | $ | 12,591 |  |  | $ | 7,905,825 |
Cumulative restatement adjustments | — |  |  | — |  |  | — |  |  | — |  |  | 3,310 |  |  | (203,409 | ) |  | (86 | ) |  | (200,185 | )
Balances, August 31, 2017 (As restated) | $ | 3,906,426 |  |  | $ | 29,836 |  |  | $ | 405,387 |  |  | $ | 2,264,038 |  |  | $ | (180,360 | ) |  | $ | 1,267,808 |  |  | $ | 12,505 |  |  | $ | 7,705,640 |
As of August 31, 2017, 2016, and 2015 The decrease of total equities for each restated period was driven primarily by the elimination of derivative assets and liabilities associated with the freight derivatives and related misstatements. Adjustments for the freight derivatives and related misstatements resulted in a $162.4 million reduction of total equities as of August 31, 2017, a $115.7 million reduction of total equities as of August 31, 2016, and a $104.6 million reduction of total equities as of August 31, 2015. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Year Ended August 31, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |
Net income (loss) | $ | 127,223 |  |  | $ | (56,265 | ) |  | $ | 70,958 |  |  | a, b, c
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization | 480,223 |  |  | — |  |  | 480,223 |  |  |
Amortization of deferred major repair costs | 67,058 |  |  | — |  |  | 67,058 |  |  |
Equity (income) loss from investments | (137,338 | ) |  | — |  |  | (137,338 | ) |  |
Distributions from equity investments | 213,352 |  |  | — |  |  | 213,352 |  |  |
Provision for doubtful accounts | 177,969 |  |  | — |  |  | 177,969 |  |  |
(Gain) loss on disposal of business | — |  |  | 2,190 |  |  | 2,190 |  |  | c
Unrealized (gain) loss on crack spread contingent liability | (15,051 | ) |  | — |  |  | (15,051 | ) |  |
Long-lived asset impairment, net of recoveries | 145,042 |  |  | — |  |  | 145,042 |  |  |
Reserve against supplier advance payments | 130,705 |  |  | — |  |  | 130,705 |  |  |
Deferred taxes | (175,914 | ) |  | (18,553 | ) |  | (194,467 | ) |  | a, c
Other, net | 24,044 |  |  | (3,871 | ) |  | 20,173 |  |  |
Changes in operating assets and liabilities, net of acquisitions: |  |  |  |  |  |  |  |
Receivables | 121,630 |  |  | 25,158 |  |  | 146,788 |  |  | b, c
Inventories | (293,549 | ) |  | (39,930 | ) |  | (333,479 | ) |  | b, c
Derivative assets | 126,824 |  |  | (12,801 | ) |  | 114,023 |  |  | a, b, c
Margin and related deposits | 104,214 |  |  | (6,410 | ) |  | 97,804 |  |  | b, c
Supplier advance payments | (34,583 | ) |  | 631 |  |  | (33,952 | ) |  | b
Other current assets and other assets | (66,119 | ) |  | 15,390 |  |  | (50,729 | ) |  | a, c
Customer margin deposits and credit balances | (50,920 | ) |  | — |  |  | (50,920 | ) |  |
Customer advance payments | (528 | ) |  | (801 | ) |  | (1,329 | ) |  | b, c
Accounts payable and accrued expenses | 197,445 |  |  | 30,522 |  |  | 227,967 |  |  | a, b, c
Derivative liabilities | (183,287 | ) |  | 50,864 |  |  | (132,423 | ) |  | a, b, c
Other liabilities | (25,446 | ) |  | — |  |  | (25,446 | ) |  |
Net cash provided by (used in) operating activities | 932,994 |  |  | (13,876 | ) |  | 919,118 |  |  |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Acquisition of property, plant and equipment | (444,397 | ) |  | — |  |  | (444,397 | ) |  |
Proceeds from disposition of property, plant and equipment | 19,541 |  |  | — |  |  | 19,541 |  |  |
Expenditures for major repairs | (2,340 | ) |  | — |  |  | (2,340 | ) |  |
Investments in joint ventures and other | (16,645 | ) |  | — |  |  | (16,645 | ) |  |
Changes in CHS Capital notes receivable, net | 322 |  |  | — |  |  | 322 |  |  |
Financing extended to customers | (67,225 | ) |  | — |  |  | (67,225 | ) |  |
Payments from customer financing | 88,154 |  |  | — |  |  | 88,154 |  |  |
Other investing activities, net | 17,549 |  |  | — |  |  | 17,549 |  |  |
Net cash provided by (used in) investing activities | (405,041 | ) |  | — |  |  | (405,041 | ) |  |
Cash flows from financing activities: |  |  |  |  |  |  |  |
Proceeds from lines of credit and long-term borrowings | 37,295,236 |  |  | — |  |  | 37,295,236 |  |  |
Payments on lines of credit, long-term borrowings and capital lease obligations | (37,580,959 | ) |  | (3,052 | ) |  | (37,584,011 | ) |  | c
Mandatorily redeemable noncontrolling interest payments | — |  |  | — |  |  | — |  |  |
Preferred stock dividends paid | (167,642 | ) |  | — |  |  | (167,642 | ) |  |
Redemptions of equities | (35,268 | ) |  | — |  |  | (35,268 | ) |  |
Cash patronage dividends paid | (103,879 | ) |  | — |  |  | (103,879 | ) |  |
Other financing activities, net | (28,681 | ) |  | 5,987 |  |  | (22,694 | ) |  | c
Net cash provided by (used in) financing activities | (621,193 | ) |  | 2,935 |  |  | (618,258 | ) |  |
Effect of exchange rate changes on cash and cash equivalents | (4,694 | ) |  | (19 | ) |  | (4,713 | ) |  |
Net increase (decrease) in cash and cash equivalents | (97,934 | ) |  | (10,960 | ) |  | (108,894 | ) |  |
Cash and cash equivalents at beginning of period | 279,313 |  |  | 10,960 |  |  | 290,273 |  |  | c
Cash and cash equivalents at end of period | $ | 181,379 |  |  | $ | — |  |  | $ | 181,379 |  |  |
For the year ended August 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $47.3 million reduction of net income for the year ended August 31, 2017. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the year ended August 31, 2017, above. The impact of the adjustments to the Consolidated Balance Sheets as of August 31, 2017, and 2016, resulted in certain misclassifications between line items in the Consolidated Statements of Cash Flows; however, none of the freight derivatives and related misstatements impacted the classifications between operating, investing or financing activities. Refer to descriptions of the adjustments and their impact on the Consolidated Balance Sheet in the Consolidated Balance Sheet section as of August 31, 2017, above. Intercompany misstatements (b) The correction of intercompany misstatements did not impact net income for the year ended August 31, 2017; however, the impact of adjustments to the Consolidated Balance Sheets as of August 31, 2017, and 2016, resulted in certain misclassification adjustments between line items in the Consolidated Statements of Cash Flows. None of the intercompany misstatements impacted the classifications between operating, investing or financing activities within the Consolidated Statements of Cash Flows. Other misstatements (c) The correction of other misstatements resulted in a $9.0 million decrease of net income for the year ended August 31, 2017. Refer to further details of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the year ended August 31, 2017, above. The impact of the adjustments to the Consolidated Balance Sheets as of August 31, 2017, and 2016, resulted in certain misclassification adjustments between line items in the Consolidated Statements of Cash Flows. As a result, two misclassification adjustments were made between operating and financing activities, including a $3.1 million reduction of notes payable resulted from a duplicative entry and the misclassification of a $6.0 million negative cash balance associated with a timing difference for the application of in-transit cash. Refer to descriptions of the adjustments and their impact on the Consolidated Balance Sheet in the Consolidated Balance Sheet section as of August 31, 2017, above. Additionally, an adjustment of $11.0 million was recorded to the opening cash balance, which related to a timing difference associated with the application of in-transit cash. Refer to the Consolidated Statement of Cash Flows for the year ended August 31, 2016, below for further details. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Year Ended August 31, 2016 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Cash flows from operating activities: |  |  |  |  |  |  |
Net income (loss) | $ | 423,969 |  |  | $ | (40,943 | ) |  | $ | 383,026 |  |  | a, b, c
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization | 447,492 |  |  | — |  |  | 447,492 |  |  |
Amortization of deferred major repair costs | 73,483 |  |  | — |  |  | 73,483 |  |  |
Equity (income) loss from investments | (175,777 | ) |  | — |  |  | (175,777 | ) |  |
Distributions from equity investments | 178,464 |  |  | — |  |  | 178,464 |  |  |
Provision for doubtful accounts | 57,200 |  |  | — |  |  | 57,200 |  |  |
Unrealized (gain) loss on crack spread contingent liability | (60,931 | ) |  | — |  |  | (60,931 | ) |  |
Long-lived asset impairment, net of recoveries | 27,247 |  |  | — |  |  | 27,247 |  |  |
Reserve against supplier advance payments | — |  |  | — |  |  | — |  |  |
Deferred taxes | (24,178 | ) |  | 52,368 |  |  | 28,190 |  |  | a, c
Other, net | (15,444 | ) |  | — |  |  | (15,444 | ) |  |
Changes in operating assets and liabilities, net of acquisitions: |  |  |  |  |  |  |  |
Receivables | 46,405 |  |  | (44,835 | ) |  | 1,570 |  |  | b, c
Inventories | 338,662 |  |  | 14,910 |  |  | 353,572 |  |  | b, c
Derivative assets | (20,257 | ) |  | 50,079 |  |  | 29,822 |  |  | a, b, c
Margin and related deposits | (37,115 | ) |  | 6,410 |  |  | (30,705 | ) |  | b, c
Supplier advance payments | 44,047 |  |  | (632 | ) |  | 43,415 |  |  | b
Other current assets and other assets | 120,993 |  |  | 7,610 |  |  | 128,603 |  |  | a, c
Customer margin deposits and credit balances | 20,841 |  |  | — |  |  | 20,841 |  |  |
Customer advance payments | 5,664 |  |  | (12,743 | ) |  | (7,079 | ) |  | b, c
Accounts payable and accrued expenses | (129,259 | ) |  | (328 | ) |  | (129,587 | ) |  | a, b, c
Derivative liabilities | 36,283 |  |  | (34,840 | ) |  | 1,443 |  |  | a, b, c
Other liabilities | (94,291 | ) |  | — |  |  | (94,291 | ) |  |
Net cash provided by (used in) operating activities | 1,263,498 |  |  | (2,944 | ) |  | 1,260,554 |  |  |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Acquisition of property, plant and equipment | (692,780 | ) |  | — |  |  | (692,780 | ) |  |
Proceeds from disposition of property, plant and equipment | 13,417 |  |  | — |  |  | 13,417 |  |  |
Expenditures for major repairs | (19,610 | ) |  | — |  |  | (19,610 | ) |  |
Investments in joint ventures and other | (2,855,218 | ) |  | — |  |  | (2,855,218 | ) |  |
Changes in CHS Capital notes receivable, net | (209,902 | ) |  | — |  |  | (209,902 | ) |  |
Financing extended to customers | (82,302 | ) |  | — |  |  | (82,302 | ) |  |
Payments from customer financing | 35,188 |  |  | — |  |  | 35,188 |  |  |
Other investing activities, net | 64,236 |  |  | — |  |  | 64,236 |  |  |
Net cash provided by (used in) investing activities | (3,746,971 | ) |  | — |  |  | (3,746,971 | ) |  |
Cash flows from financing activities: |  |  |  |  |  |  |  |
Proceeds from lines of credit and long-term borrowings | 31,586,968 |  |  | — |  |  | 31,586,968 |  |  |
Payments on lines of credit, long-term borrowings and capital lease obligations | (29,232,842 | ) |  | — |  |  | (29,232,842 | ) |  |
Mandatorily redeemable noncontrolling interest payments | (153,022 | ) |  | — |  |  | (153,022 | ) |  |
Preferred stock dividends paid | (163,324 | ) |  | — |  |  | (163,324 | ) |  |
Redemptions of equities | (23,911 | ) |  | — |  |  | (23,911 | ) |  |
Cash patronage dividends paid | (251,740 | ) |  | — |  |  | (251,740 | ) |  |
Other financing activities, net | 52,067 |  |  | — |  |  | 52,067 |  |  |
Net cash provided by (used in) financing activities | 1,814,196 |  |  | — |  |  | 1,814,196 |  |  |
Effect of exchange rate changes on cash and cash equivalents | (5,223 | ) |  | — |  |  | (5,223 | ) |  |
Net increase (decrease) in cash and cash equivalents | (674,500 | ) |  | (2,944 | ) |  | (677,444 | ) |  |
Cash and cash equivalents at beginning of period | 953,813 |  |  | 13,904 |  |  | 967,717 |  |  | c
Cash and cash equivalents at end of period | $ | 279,313 |  |  | $ | 10,960 |  |  | $ | 290,273 |  |  |
For the year ended August 31, 2016 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $9.9 million reduction of net income for the year ended August 31, 2016. Refer to descriptions of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the year ended August 31, 2016, above. The impact of the adjustments to the Consolidated Balance Sheets as of August 31, 2016, and 2015, resulted in certain misclassification adjustments between operating activity line items in the Consolidated Statements of Cash Flows; however, none of the freight derivatives and related misstatements impacted the classifications between operating, investing or financing activities. Refer to descriptions of the adjustments and their impact on the Consolidated Balance Sheets in the Consolidated Balance Sheet section as of August 31, 2017, and 2016, above. Intercompany misstatements (b) The correction of intercompany misstatements did not impact net income for the year ended August 31, 2016; however, the impact of adjustments to the Consolidated Balance Sheet as of August 31, 2016, resulted in certain misclassification adjustments between operating activity line items in the Consolidated Statements of Cash Flows. None of the intercompany misstatements impacted the classifications between operating, investing or financing activities within the Consolidated Statements of Cash Flows. Other misstatements (c) The correction of other misstatements resulted in a $31.0 million decrease of net income for the year ended August 31, 2016. Refer to further details of the adjustments and their impact on net income (loss) in the Consolidated Statement of Operations section for the year ended August 31, 2016, above. The impact of the adjustments to the Consolidated Balance Sheets as of August 31, 2016, and 2015, resulted in certain misclassification adjustments between operating activity line items within Consolidated Statements of Cash Flows and a $2.9 million reduction of cash that resulted from a timing difference for the application of in-transit cash; however, none of the other misstatements impacted the classifications between operating, investing or financing activities. Refer to descriptions of the adjustments and their impact on the Consolidated Balance Sheets in the Consolidated Balance Sheet section as of August 31, 2017, and 2016, above. Additionally, an adjustment of $13.9 million was recorded to the opening cash balance, which related to a timing difference associated with the application of in-transit cash during the prior year.

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