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Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended
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Aug. 31, 2018
Quarterly Financial Information Disclosure [Abstract] |
Quarterly financial information (unaudited) |
| (As Restated)
| As of November 30, 2017 |  | As of February 28, 2018 |  | As of May 31, 2018
| (Dollars in thousands)
ASSETS |  |  |  |  |
Current assets: |  |  |  |  |  |
Cash and cash equivalents | $ | 249,767 |  |  | $ | 219,273 |  |  | $ | 533,887 |
Receivables | 2,058,222 |  |  | 1,836,490 |  |  | 2,248,213 |
Inventories | 3,111,963 |  |  | 3,676,325 |  |  | 2,913,507 |
Derivative assets | 166,557 |  |  | 251,048 |  |  | 250,005 |
Margin and related deposits | 206,955 |  |  | 188,167 |  |  | 253,141 |
Supplier advance payments | 542,770 |  |  | 658,815 |  |  | 426,607 |
Other current assets | 270,674 |  |  | 296,982 |  |  | 190,680 |
Total current assets | 6,606,908 |  |  | 7,127,100 |  |  | 6,816,040 |
Investments | 3,777,000 |  |  | 3,752,876 |  |  | 3,787,163 |
Property, plant and equipment | 5,266,408 |  |  | 5,179,868 |  |  | 5,140,106 |
Other assets | 997,402 |  |  | 943,552 |  |  | 960,240 |
Total assets | $ | 16,647,718 |  |  | $ | 17,003,396 |  |  | $ | 16,703,549 |
LIABILITIES AND EQUITIES |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Notes payable | $ | 2,480,264 |  |  | $ | 3,071,639 |  |  | $ | 2,868,506 |
Current portion of long-term debt | 71,022 |  |  | 46,290 |  |  | 53,056 |
Customer margin deposits and credit balances | 139,868 |  |  | 106,323 |  |  | 137,999 |
Customer advance payments | 413,519 |  |  | 756,642 |  |  | 372,590 |
Accounts payable | 2,444,650 |  |  | 1,853,974 |  |  | 1,898,172 |
Derivative liabilities | 207,426 |  |  | 361,909 |  |  | 316,831 |
Accrued expenses | 425,912 |  |  | 465,032 |  |  | 538,249 |
Dividends and equities payable | 121,209 |  |  | 128,700 |  |  | 209,718 |
Total current liabilities | 6,303,870 |  |  | 6,790,509 |  |  | 6,395,121 |
Long-term debt | 1,936,744 |  |  | 1,915,843 |  |  | 1,905,515 |
Long-term deferred tax liabilities | 348,902 |  |  | 165,659 |  |  | 203,208 |
Other liabilities | 315,254 |  |  | 265,028 |  |  | 278,869 |
Commitments and contingencies (Note 15) |  |  |  |  |  |  |  |
Equities: |  |  |  |  |  |  |  |
Preferred stock | 2,264,038 |  |  | 2,264,038 |  |  | 2,264,038 |
Equity certificates | 4,319,840 |  |  | 4,307,292 |  |  | 4,253,414 |
Accumulated other comprehensive loss | (177,341 | ) |  | (167,230 | ) |  | (167,302 | )
Capital reserves | 1,324,372 |  |  | 1,450,326 |  |  | 1,559,040 |
Total CHS Inc. equities | 7,730,909 |  |  | 7,854,426 |  |  | 7,909,190 |
Noncontrolling interests | 12,039 |  |  | 11,931 |  |  | 11,646 |
Total equities | 7,742,948 |  |  | 7,866,357 |  |  | 7,920,836 |
Total liabilities and equities | $ | 16,647,718 |  |  | $ | 17,003,396 |  |  | $ | 16,703,549 |
CHS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)
| (As Restated)
| As of November 30, 2016 |  | As of February 28, 2017 |  | As of May 31, 2017
| (Dollars in thousands)
ASSETS |  |  |  |  |
Current assets: |  |  |  |  |  |
Cash and cash equivalents | $ | 516,646 |  |  | $ | 276,137 |  |  | $ | 266,748 |
Receivables | 3,034,083 |  |  | 2,767,150 |  |  | 2,767,967 |
Inventories | 3,143,551 |  |  | 3,730,682 |  |  | 2,688,949 |
Derivative assets | 277,498 |  |  | 233,429 |  |  | 206,187 |
Margin and related deposits | 312,899 |  |  | 290,291 |  |  | 251,695 |
Supplier advance payments | 476,907 |  |  | 701,705 |  |  | 431,433 |
Other current assets | 187,524 |  |  | 196,237 |  |  | 265,469 |
Total current assets | 7,949,108 |  |  | 8,195,631 |  |  | 6,878,448 |
Investments | 3,828,899 |  |  | 3,802,379 |  |  | 3,841,749 |
Property, plant and equipment | 5,443,079 |  |  | 5,404,347 |  |  | 5,405,651 |
Other assets | 1,054,454 |  |  | 1,056,873 |  |  | 955,532 |
Total assets | $ | 18,275,540 |  |  | $ | 18,459,230 |  |  | $ | 17,081,380 |
LIABILITIES AND EQUITIES |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Notes payable | $ | 3,227,564 |  |  | $ | 3,867,438 |  |  | $ | 3,321,808 |
Current portion of long-term debt | 206,894 |  |  | 205,136 |  |  | 193,096 |
Customer margin deposits and credit balances | 180,850 |  |  | 149,625 |  |  | 132,479 |
Customer advance payments | 543,411 |  |  | 897,464 |  |  | 391,122 |
Accounts payable | 2,574,006 |  |  | 1,919,421 |  |  | 1,865,803 |
Derivative liabilities | 282,658 |  |  | 232,507 |  |  | 233,955 |
Accrued expenses | 397,446 |  |  | 392,058 |  |  | 436,111 |
Dividends and equities payable | 239,857 |  |  | 131,380 |  |  | 134,718 |
Total current liabilities | 7,652,686 |  |  | 7,795,029 |  |  | 6,709,092 |
Long-term debt | 1,958,907 |  |  | 2,051,567 |  |  | 2,046,264 |
Long-term deferred tax liabilities | 511,821 |  |  | 531,522 |  |  | 369,170 |
Other liabilities | 332,610 |  |  | 272,532 |  |  | 276,483 |
Commitments and contingencies (Note 15) |  |  |  |  |  |  |  |
Equities: |  |  |  |  |  |  |  |
Preferred stock | 2,244,132 |  |  | 2,244,114 |  |  | 2,264,063 |
Equity certificates | 4,194,534 |  |  | 4,201,803 |  |  | 4,214,657 |
Accumulated other comprehensive loss | (224,935 | ) |  | (211,091 | ) |  | (208,568 | )
Capital reserves | 1,592,434 |  |  | 1,560,498 |  |  | 1,397,834 |
Total CHS Inc. equities | 7,806,165 |  |  | 7,795,324 |  |  | 7,667,986 |
Noncontrolling interests | 13,351 |  |  | 13,256 |  |  | 12,385 |
Total equities | 7,819,516 |  |  | 7,808,580 |  |  | 7,680,371 |
Total liabilities and equities | $ | 18,275,540 |  |  | $ | 18,459,230 |  |  | $ | 17,081,380 |
CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| (As Restated) |  |
| Three Months Ended |  | Three Months Ended |  | Six Months Ended |  | Three Months Ended |  | Nine Months Ended |  | Three Months Ended
| November 30, 2017 |  | February 28, 2018 |  | February 28, 2018 |  | May 31, 2018 |  | May 31, 2018 |  | August 31, 2018
| (Dollars in thousands)
Revenues | $ | 8,031,884 |  |  | $ | 6,980,153 |  |  | $ | 15,012,037 |  |  | $ | 9,087,328 |  |  | $ | 24,099,365 |  |  | $ | 8,583,982 |
Cost of goods sold | 7,711,057 |  |  | 6,844,849 |  |  | 14,555,906 |  |  | 8,841,361 |  |  | 23,397,267 |  |  | 8,192,620 |
Gross profit | 320,827 |  |  | 135,304 |  |  | 456,131 |  |  | 245,967 |  |  | 702,098 |  |  | 391,362 |
Marketing, general and administrative | 139,500 |  |  | 186,713 |  |  | 326,213 |  |  | 161,579 |  |  | 487,792 |  |  | 186,291 |
Reserve and impairment charges (recoveries), net | (3,787 | ) |  | (11,346 | ) |  | (15,133 | ) |  | (3,811 | ) |  | (18,944 | ) |  | (18,765 | )
Operating earnings (loss) | 185,114 |  |  | (40,063 | ) |  | 145,051 |  |  | 88,199 |  |  | 233,250 |  |  | 223,836 |
(Gain) loss on disposal of business | — |  |  | (7,705 | ) |  | (7,705 | ) |  | (124,050 | ) |  | (131,755 | ) |  | (61 | )
Interest expense | 40,702 |  |  | 40,176 |  |  | 80,878 |  |  | 49,340 |  |  | 130,218 |  |  | 18,984 |
Other (income) loss | (25,014 | ) |  | (11,364 | ) |  | (36,378 | ) |  | (14,622 | ) |  | (51,000 | ) |  | (27,015 | )
Equity (income) loss from investments | (38,362 | ) |  | (39,441 | ) |  | (77,803 | ) |  | (59,308 | ) |  | (137,111 | ) |  | (16,404 | )
Income (loss) before income taxes | 207,788 |  |  | (21,729 | ) |  | 186,059 |  |  | 236,839 |  |  | 422,898 |  |  | 248,332 |
Income tax expense (benefit) | 20,606 |  |  | (187,688 | ) |  | (167,082 | ) |  | 55,219 |  |  | (111,863 | ) |  | 7,787 |
Net income (loss) | 187,182 |  |  | 165,959 |  |  | 353,141 |  |  | 181,620 |  |  | 534,761 |  |  | 240,545 |
Net income (loss) attributable to noncontrolling interests | (464 | ) |  | (48 | ) |  | (512 | ) |  | (187 | ) |  | (699 | ) |  | 98 |
Net income (loss) attributable to CHS Inc. | $ | 187,646 |  |  | $ | 166,007 |  |  | $ | 353,653 |  |  | $ | 181,807 |  |  | $ | 535,460 |  |  | $ | 240,447 |
CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| (As Restated)
| Three Months Ended |  | Three Months Ended |  | Six Months Ended |  | Three Months Ended |  | Nine Months Ended |  | Three Months Ended
| November 30, 2016 |  | February 28, 2017 |  | February 28, 2017 |  | May 31, 2017 |  | May 31, 2017 |  | August 31, 2017
| (Dollars in thousands)
Revenues | $ | 8,001,904 |  |  | $ | 7,400,773 |  |  | $ | 15,402,677 |  |  | $ | 8,638,410 |  |  | $ | 24,041,087 |  |  | $ | 7,996,339 |
Cost of goods sold | 7,655,524 |  |  | 7,165,265 |  |  | 14,820,789 |  |  | 8,417,264 |  |  | 23,238,053 |  |  | 7,904,713 |
Gross profit | 346,380 |  |  | 235,508 |  |  | 581,888 |  |  | 221,146 |  |  | 803,034 |  |  | 91,626 |
Marketing, general and administrative | 151,258 |  |  | 160,166 |  |  | 311,424 |  |  | 155,347 |  |  | 466,771 |  |  | 145,236 |
Reserve and impairment charges (recoveries), net | 18,357 |  |  | 72,373 |  |  | 90,730 |  |  | 326,779 |  |  | 417,509 |  |  | 39,170 |
Operating earnings (loss) | 176,765 |  |  | 2,969 |  |  | 179,734 |  |  | (260,980 | ) |  | (81,246 | ) |  | (92,780 | )
(Gain) loss on disposal of business | 4,105 |  |  | (1,395 | ) |  | 2,710 |  |  | (1,224 | ) |  | 1,486 |  |  | 704 |
Interest expense | 38,265 |  |  | 39,945 |  |  | 78,210 |  |  | 39,201 |  |  | 117,411 |  |  | 53,828 |
Other (income) loss | (44,509 | ) |  | (18,083 | ) |  | (62,592 | ) |  | (11,952 | ) |  | (74,544 | ) |  | (25,407 | )
Equity (income) loss from investments | (40,328 | ) |  | (35,800 | ) |  | (76,128 | ) |  | (48,393 | ) |  | (124,521 | ) |  | (12,817 | )
Income (loss) before income taxes | 219,232 |  |  | 18,302 |  |  | 237,534 |  |  | (238,612 | ) |  | (1,078 | ) |  | (109,088 | )
Income tax expense (benefit) | 16,076 |  |  | 3,685 |  |  | 19,761 |  |  | (166,124 | ) |  | (146,363 | ) |  | (34,761 | )
Net income (loss) | 203,156 |  |  | 14,617 |  |  | 217,773 |  |  | (72,488 | ) |  | 145,285 |  |  | (74,327 | )
Net income (loss) attributable to noncontrolling interests | (208 | ) |  | 406 |  |  | 198 |  |  | (955 | ) |  | (757 | ) |  | 123 |
Net income (loss) attributable to CHS Inc. | $ | 203,364 |  |  | $ | 14,211 |  |  | $ | 217,575 |  |  | $ | (71,533 | ) |  | $ | 146,042 |  |  | $ | (74,450 | )
CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| (As Restated) |  |
| Three Months Ended |  | Three Months Ended |  | Six Months Ended |  | Three Months Ended |  | Nine Months Ended |  | Three Months Ended
| November 30, 2017 |  | February 28, 2018 |  | February 28, 2018 |  | May 31, 2018 |  | May 31, 2018 |  | August 31, 2018
| (Dollars in thousands)
Net income (loss) | $ | 187,182 |  |  | $ | 165,959 |  |  | $ | 353,141 |  |  | $ | 181,620 |  |  | $ | 534,761 |  |  | $ | 240,545 |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |
Postretirement benefit plan activity | 1,594 |  |  | 3,142 |  |  | 4,736 |  |  | 3,417 |  |  | 8,153 |  |  | 11,913 |
Unrealized net gain (loss) on available for sale investments | 3,640 |  |  | 3,554 |  |  | 7,194 |  |  | 6,286 |  |  | 13,480 |  |  | (16,628 | )
Cash flow hedges | (4 | ) |  | 1,063 |  |  | 1,059 |  |  | 413 |  |  | 1,472 |  |  | 1,068 |
Foreign currency translation adjustment | (2,211 | ) |  | 2,352 |  |  | 141 |  |  | (10,188 | ) |  | (10,047 | ) |  | (1,974 | )
Other comprehensive income (loss), net of tax | 3,019 |  |  | 10,111 |  |  | 13,130 |  |  | (72 | ) |  | 13,058 |  |  | (5,621 | )
Comprehensive income | 190,201 |  |  | 176,070 |  |  | 366,271 |  |  | 181,548 |  |  | 547,819 |  |  | 234,924 |
Less comprehensive income attributable to noncontrolling interests | (464 | ) |  | (48 | ) |  | (512 | ) |  | (187 | ) |  | (699 | ) |  | 98 |
Comprehensive income attributable to CHS Inc. | $ | 190,665 |  |  | $ | 176,118 |  |  | $ | 366,783 |  |  | $ | 181,735 |  |  | $ | 548,518 |  |  | $ | 234,826 |
| (As Restated)
| Three Months Ended |  | Three Months Ended |  | Six Months Ended |  | Three Months Ended |  | Nine Months Ended |  | Three Months Ended
| November 30, 2016 |  | February 28, 2017 |  | February 28, 2017 |  | May 31, 2017 |  | May 31, 2017 |  | August 31, 2017
| (Dollars in thousands)
Net income (loss) | $ | 203,156 |  |  | $ | 14,617 |  |  | $ | 217,773 |  |  | $ | (72,488 | ) |  | $ | 145,285 |  |  | $ | (74,327 | )
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |
Postretirement benefit plan activity | 3,239 |  |  | 3,724 |  |  | 6,963 |  |  | 3,636 |  |  | 10,599 |  |  | 22,103 |
Unrealized net gain (loss) on available for sale investments | 777 |  |  | 968 |  |  | 1,745 |  |  | (118 | ) |  | 1,627 |  |  | 2,758 |
Cash flow hedges | 654 |  |  | 964 |  |  | 1,618 |  |  | 375 |  |  | 1,993 |  |  | 249 |
Foreign currency translation adjustment | (18,075 | ) |  | 8,187 |  |  | (9,888 | ) |  | (1,369 | ) |  | (11,257 | ) |  | 3,098 |
Other comprehensive income (loss), net of tax | (13,405 | ) |  | 13,843 |  |  | 438 |  |  | 2,524 |  |  | 2,962 |  |  | 28,208 |
Comprehensive income | 189,751 |  |  | 28,460 |  |  | 218,211 |  |  | (69,964 | ) |  | 148,247 |  |  | (46,119 | )
Less comprehensive income attributable to noncontrolling interests | (208 | ) |  | 406 |  |  | 198 |  |  | (955 | ) |  | (757 | ) |  | 123 |
Comprehensive income attributable to CHS Inc. | $ | 189,959 |  |  | $ | 28,054 |  |  | $ | 218,013 |  |  | $ | (69,009 | ) |  | $ | 149,004 |  |  | $ | (46,242 | )
Reclassifications Amounts previously included within (gain) loss on investments were reclassified into other (income) loss to conform to the current period presentation. This reclassification had no impact on our previously reported net income, cash flows or shareholders' equity and represents reclassifications for the periods ended November 30, 2017 and 2016, and February 28, 2018 and 2017. The reclassifications included a $2.8 million gain reclassification during the three months ended November 30, 2017, a $4.1 million gain reclassification during the three months ended February 28, 2018, a $7.4 million loss during the three months ended November 30, 2016, and a $2.9 million gain during the three months ended February 28, 2017. Consolidated financial statement adjustment tables The following tables present the impacts of the restatement adjustments to the previously reported financial information for the quarterly periods ended November 30, 2017 and 2016, February 28, 2018 and 2017, May 31, 2018 and 2017, and August 31, 2017. Refer to discussion in Note 2, Restatement of Previously Issued Consolidated Financial Statements. The restatement references identified in the following tables directly correlate to the restatement adjustments detailed below. The categories of restatement adjustments and their impact on previously reported consolidated financial statements are described below. (a) Freight Derivatives and Related Misstatements - Corrections for freight derivatives and related misstatements were driven by the misstatement of amounts associated with both the value and quantity of rail freight contracts, as well as due to freight contracts not meeting the technical accounting requirements to qualify as derivative financial instruments. In addition to the elimination of the underlying freight derivative assets and liabilities and related impacts on revenues and cost of goods sold, additional adjustments were recorded to account for prepaid freight capacity balances in relevant periods and the impact of a goodwill impairment charge recorded during fiscal 2015 for goodwill held within our Grain Marketing reporting unit which was triggered by the lowering of earnings due to the restatement. Additional details related to the impact of the freight derivatives and related misstatements and their impact on each period are discussed in restatement reference (a). (b) Intercompany Misstatements - As a result of the work performed in relation to the freight misstatement, additional misstatements related to the incorrect elimination of intercompany balances were also identified and corrected within the consolidated financial statements. Certain of these intercompany misstatements resulted in a misstatement of various financial statement line items; however, the intercompany misstatements did not result in a material misstatement of income (loss) before income taxes or net income (loss). Additional details related to the impact of the intercompany misstatements and their impact on each period are discussed in restatement reference (b). (c) Other Misstatements - We made adjustments for other previously identified misstatements unrelated to the freight derivatives and related misstatements that were not material, individually or in the aggregate, to our consolidated financial statements. These other misstatements related primarily to certain misclassifications, adjustments to revenues and cost of goods sold, and adjustments to various income tax and indirect tax accrual accounts. Additional details related to the impact of the other misstatements and their impact on each period are discussed in restatement reference (c). CHS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)
| As of November 30, 2017 |  | As of November 30, 2016 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 252,129 |  |  | $ | (2,362 | ) |  | $ | 249,767 |  |  | $ | 515,484 |  |  | $ | 1,162 |  |  | $ | 516,646 |  |  | b, c
Receivables | 2,059,623 |  |  | (1,401 | ) |  | 2,058,222 |  |  | 3,052,989 |  |  | (18,906 | ) |  | 3,034,083 |  |  | a, b, c
Inventories | 3,046,101 |  |  | 65,862 |  |  | 3,111,963 |  |  | 3,117,935 |  |  | 25,616 |  |  | 3,143,551 |  |  | c
Derivative assets | 283,256 |  |  | (116,699 | ) |  | 166,557 |  |  | 419,103 |  |  | (141,605 | ) |  | 277,498 |  |  | a, c
Margin and related deposits | 206,955 |  |  | — |  |  | 206,955 |  |  | 312,899 |  |  | — |  |  | 312,899 |  |  |
Supplier advance payments | 542,139 |  |  | 631 |  |  | 542,770 |  |  | 480,709 |  |  | (3,802 | ) |  | 476,907 |  |  | b
Other current assets | 289,250 |  |  | (18,576 | ) |  | 270,674 |  |  | 189,896 |  |  | (2,372 | ) |  | 187,524 |  |  | a, c
Total current assets | 6,679,453 |  |  | (72,545 | ) |  | 6,606,908 |  |  | 8,089,015 |  |  | (139,907 | ) |  | 7,949,108 |  |  |
Investments | 3,777,000 |  |  | — |  |  | 3,777,000 |  |  | 3,828,899 |  |  | — |  |  | 3,828,899 |  |  |
Property, plant and equipment | 5,266,408 |  |  | — |  |  | 5,266,408 |  |  | 5,443,079 |  |  | — |  |  | 5,443,079 |  |  |
Other assets | 1,061,562 |  |  | (64,160 | ) |  | 997,402 |  |  | 1,069,468 |  |  | (15,014 | ) |  | 1,054,454 |  |  | a
Total assets | $ | 16,784,423 |  |  | $ | (136,705 | ) |  | $ | 16,647,718 |  |  | $ | 18,430,461 |  |  | $ | (154,921 | ) |  | $ | 18,275,540 |  |  |
LIABILITIES AND EQUITIES |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Notes payable | $ | 2,480,264 |  |  | $ | — |  |  | $ | 2,480,264 |  |  | $ | 3,227,564 |  |  | $ | — |  |  | $ | 3,227,564 |  |  |
Current portion of long-term debt | 71,022 |  |  | — |  |  | 71,022 |  |  | 206,894 |  |  | — |  |  | 206,894 |  |  |
Customer margin deposits and credit balances | 139,868 |  |  | — |  |  | 139,868 |  |  | 180,850 |  |  | — |  |  | 180,850 |  |  |
Customer advance payments | 414,441 |  |  | (922 | ) |  | 413,519 |  |  | 544,266 |  |  | (855 | ) |  | 543,411 |  |  | b, c
Accounts payable | 2,380,998 |  |  | 63,652 |  |  | 2,444,650 |  |  | 2,568,533 |  |  | 5,473 |  |  | 2,574,006 |  |  | a, b, c
Derivative liabilities | 226,279 |  |  | (18,853 | ) |  | 207,426 |  |  | 317,505 |  |  | (34,847 | ) |  | 282,658 |  |  | a, c
Accrued expenses | 409,522 |  |  | 16,390 |  |  | 425,912 |  |  | 389,321 |  |  | 8,125 |  |  | 397,446 |  |  | a, c
Dividends and equities payable | 121,209 |  |  | — |  |  | 121,209 |  |  | 275,448 |  |  | (35,591 | ) |  | 239,857 |  |  | b, c
Total current liabilities | 6,243,603 |  |  | 60,267 |  |  | 6,303,870 |  |  | 7,710,381 |  |  | (57,695 | ) |  | 7,652,686 |  |  |
Long-term debt | 1,936,744 |  |  | — |  |  | 1,936,744 |  |  | 1,958,907 |  |  | — |  |  | 1,958,907 |  |  |
Long-term deferred tax liabilities | 350,841 |  |  | (1,939 | ) |  | 348,902 |  |  | 497,283 |  |  | 14,538 |  |  | 511,821 |  |  | a, c
Other liabilities | 315,460 |  |  | (206 | ) |  | 315,254 |  |  | 332,610 |  |  | — |  |  | 332,610 |  |  |
Commitments and contingencies (Note 15) |  |  |  |  |  |  |  |  |  |  |  |  |
Equities: |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 2,264,038 |  |  | — |  |  | 2,264,038 |  |  | 2,244,132 |  |  | — |  |  | 2,244,132 |  |  |
Equity certificates | 4,319,840 |  |  | — |  |  | 4,319,840 |  |  | 4,208,336 |  |  | (13,802 | ) |  | 4,194,534 |  |  | b
Accumulated other comprehensive loss | (178,445 | ) |  | 1,104 |  |  | (177,341 | ) |  | (226,220 | ) |  | 1,285 |  |  | (224,935 | ) |  | a
Capital reserves | 1,520,218 |  |  | (195,846 | ) |  | 1,324,372 |  |  | 1,691,603 |  |  | (99,169 | ) |  | 1,592,434 |  |  | a, b, c
Total CHS Inc. equities | 7,925,651 |  |  | (194,742 | ) |  | 7,730,909 |  |  | 7,917,851 |  |  | (111,686 | ) |  | 7,806,165 |  |  |
Noncontrolling interests | 12,124 |  |  | (85 | ) |  | 12,039 |  |  | 13,429 |  |  | (78 | ) |  | 13,351 |  |  | a
Total equities | 7,937,775 |  |  | (194,827 | ) |  | 7,742,948 |  |  | 7,931,280 |  |  | (111,764 | ) |  | 7,819,516 |  |  |
Total liabilities and equities | $ | 16,784,423 |  |  | $ | (136,705 | ) |  | $ | 16,647,718 |  |  | $ | 18,430,461 |  |  | $ | (154,921 | ) |  | $ | 18,275,540 |  |  |
As of November 30, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $171.7 million reduction of total assets, a $38.6 million reduction of current liabilities, a $30.2 million increase of long-term liabilities and a $163.2 million reduction of total equities. The reduction of total assets related primarily to the elimination of $116.8 million of current derivative assets and a $49.2 million reduction of long-term derivative assets that had been recorded as assets on the Consolidated Balance Sheet as well as an approximate $16.0 million reduction of goodwill associated with a goodwill impairment charge recorded during fiscal 2015 The decreases of total assets were partially offset by related adjustments, including an $8.5 million increase of prepaid income taxes resulting from the income tax impact of the freight misstatement and the recognition of a $1.1 million prepaid freight capacity balance. The decrease of total current liabilities related primarily to a $16.5 million reduction of current derivative liabilities and a $22.2 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 $30.2 million increase of long-term deferred tax 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) The correction of intercompany misstatements resulted in a $3.4 million reduction of total assets and a $3.4 million reduction of current liabilities due to different practices of eliminating intercompany balances between CHS's businesses which existed in previous periods. 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 income tax adjustments on income tax accounts, including 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 income tax adjustments resulted in a $38.4 million increase of total assets, a $102.3 million increase of current liabilities, a $32.3 million decrease of long-term liabilities and a $31.6 million decrease of total equities. The increase of total assets related primarily to a $67.5 million increase of inventories that resulted from a misclassification adjustment related to $67.5 million previously included as a contra-inventory balance moving to accounts payable. The increase related to inventories was partially offset by a $28.1 million decrease of other current assets that resulted from the reduction of prepaid income taxes associated with the correction of other misstatements identified during fiscal 2018 and other periods. The increase of current liabilities related primarily to a $67.5 million increase of accounts payable that resulted from a misclassification adjustment for amounts previously included as a contra-inventory balance to accounts payable and a $38.6 million increase of accrued expenses. The increase of accrued expenses related to the recognition of a $24.9 million accrued income tax balance associated with the correction of other misstatements identified during fiscal 2018 and other periods, as well as the recognition of $13.7 million of accrued expense related to the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. Long-term liabilities decreased primarily as a result of a $32.1 million decrease of long-term deferred tax liabilities related to the correction of other misstatements identified during fiscal 2018 and other periods. The $31.6 million decrease of total equities related primarily to the impacts associated with the $20.6 million net impact on income tax accounts and the recognition of an additional $13.7 million of accrued expense related to the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. As of November 30, 2016 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $145.5 million reduction of total assets, a $47.0 million reduction of current liabilities, a $15.5 million increase of long-term liabilities and a $114.0 million reduction of total equities. The reduction of total assets related primarily to the elimination of $141.0 million of current derivative assets that had been incorrectly recorded as assets on the Consolidated Balance Sheet and an approximate $16.0 million reduction of goodwill associated with a goodwill impairment charge recorded during fiscal 2015. The decreases of total assets were partially offset by related adjustments, including a $4.0 million increase of receivables, a $5.7 million increase of prepaid income taxes resulting from the income tax impact of the freight misstatement and the recognition of a $0.9 million prepaid freight capacity balance. The decrease of total current liabilities related primarily to a $35.0 million reduction of current derivative liabilities and a $20.7 million reduction of income taxes payable resulting from the income tax effect of the freight misstatement. These decreases of current liabilities were partially offset by an $8.7 million increase of accounts payable. The increase of long-term liabilities resulted from a $15.5 million increase of long-term deferred tax 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) The correction of intercompany misstatements resulted in a $73.3 million reduction of total assets, an $85.4 million reduction of current liabilities and a $12.1 million increase of total equities due to different practices of eliminating intercompany balances between CHS's businesses which existed in previous periods. 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 income tax adjustments on income tax accounts, including 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 income tax adjustments resulted in a $63.9 million increase of total assets, a $74.6 million increase of current liabilities, a $0.9 million decrease of long-term liabilities and a $9.9 million decrease of total equities. The increase of total assets related primarily to a misclassification adjustment for $73.8 million previously included as a contra-inventory balance moving to accounts payable. The increased inventories were partially offset by a $48.2 million reduction of inventory related to a misclassification adjustment for certain collateral moving from inventory to receivables. The increase of total liabilities relates primarily to a misclassification adjustment for $73.8 million previously included as a contra-inventory balance moving to accounts payable. The $9.9 million decrease of total equities relates primarily to the $28.8 million net impact on income tax accounts and the recognition of $8.1 million of accrued expense related to the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. The overall decrease in total equities was partially offset by an increase that arose from a $27.9 million timing difference for the accrual of dividends and equities payable. CHS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)
| As of February 28, 2018 |  | As of February 28, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 190,426 |  |  | $ | 28,847 |  |  | $ | 219,273 |  |  | $ | 249,801 |  |  | $ | 26,336 |  |  | $ | 276,137 |  |  | b, c
Receivables | 1,765,640 |  |  | 70,850 |  |  | 1,836,490 |  |  | 2,697,699 |  |  | 69,451 |  |  | 2,767,150 |  |  | a, b, c
Inventories | 3,650,158 |  |  | 26,167 |  |  | 3,676,325 |  |  | 3,752,218 |  |  | (21,536 | ) |  | 3,730,682 |  |  | c
Derivative assets | 429,625 |  |  | (178,577 | ) |  | 251,048 |  |  | 386,613 |  |  | (153,184 | ) |  | 233,429 |  |  | a, c
Margin and related deposits | 188,167 |  |  | — |  |  | 188,167 |  |  | 290,291 |  |  | — |  |  | 290,291 |  |  |
Supplier advance payments | 658,815 |  |  | — |  |  | 658,815 |  |  | 701,705 |  |  | — |  |  | 701,705 |  |  | b
Other current assets | 310,674 |  |  | (13,692 | ) |  | 296,982 |  |  | 200,288 |  |  | (4,051 | ) |  | 196,237 |  |  | a, c
Total current assets | 7,193,505 |  |  | (66,405 | ) |  | 7,127,100 |  |  | 8,278,615 |  |  | (82,984 | ) |  | 8,195,631 |  |  |
Investments | 3,752,876 |  |  | — |  |  | 3,752,876 |  |  | 3,802,379 |  |  | — |  |  | 3,802,379 |  |  |
Property, plant and equipment | 5,179,868 |  |  | — |  |  | 5,179,868 |  |  | 5,404,347 |  |  | — |  |  | 5,404,347 |  |  |
Other assets | 958,613 |  |  | (15,061 | ) |  | 943,552 |  |  | 1,072,824 |  |  | (15,951 | ) |  | 1,056,873 |  |  | a
Total assets | $ | 17,084,862 |  |  | $ | (81,466 | ) |  | $ | 17,003,396 |  |  | $ | 18,558,165 |  |  | $ | (98,935 | ) |  | $ | 18,459,230 |  |  |
LIABILITIES AND EQUITIES |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Notes payable | $ | 2,993,456 |  |  | $ | 78,183 |  |  | $ | 3,071,639 |  |  | $ | 3,867,438 |  |  | $ | — |  |  | $ | 3,867,438 |  |  | c
Current portion of long-term debt | 46,290 |  |  | — |  |  | 46,290 |  |  | 205,136 |  |  | — |  |  | 205,136 |  |  |
Customer margin deposits and credit balances | 106,323 |  |  | — |  |  | 106,323 |  |  | 149,625 |  |  | — |  |  | 149,625 |  |  |
Customer advance payments | 727,535 |  |  | 29,107 |  |  | 756,642 |  |  | 871,370 |  |  | 26,094 |  |  | 897,464 |  |  | b, c
Accounts payable | 1,835,289 |  |  | 18,685 |  |  | 1,853,974 |  |  | 1,877,040 |  |  | 42,381 |  |  | 1,919,421 |  |  | a, b, c
Derivative liabilities | 372,406 |  |  | (10,497 | ) |  | 361,909 |  |  | 275,484 |  |  | (42,977 | ) |  | 232,507 |  |  | a, c
Accrued expenses | 459,867 |  |  | 5,165 |  |  | 465,032 |  |  | 378,318 |  |  | 13,740 |  |  | 392,058 |  |  | a, c
Dividends and equities payable | 128,700 |  |  | — |  |  | 128,700 |  |  | 131,380 |  |  | — |  |  | 131,380 |  |  |
Total current liabilities | 6,669,866 |  |  | 120,643 |  |  | 6,790,509 |  |  | 7,755,791 |  |  | 39,238 |  |  | 7,795,029 |  |  |
Long-term debt | 1,915,843 |  |  | — |  |  | 1,915,843 |  |  | 2,051,567 |  |  | — |  |  | 2,051,567 |  |  |
Long-term deferred tax liabilities | 171,844 |  |  | (6,185 | ) |  | 165,659 |  |  | 516,681 |  |  | 14,841 |  |  | 531,522 |  |  | c
Other liabilities | 265,349 |  |  | (321 | ) |  | 265,028 |  |  | 272,532 |  |  | — |  |  | 272,532 |  |  | c
Commitments and contingencies (Note 15) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 2,264,038 |  |  | — |  |  | 2,264,038 |  |  | 2,244,114 |  |  | — |  |  | 2,244,114 |  |  | b
Equity certificates | 4,307,292 |  |  | — |  |  | 4,307,292 |  |  | 4,201,803 |  |  | — |  |  | 4,201,803 |  |  | a
Accumulated other comprehensive loss | (168,225 | ) |  | 995 |  |  | (167,230 | ) |  | (211,442 | ) |  | 351 |  |  | (211,091 | ) |  | a
Capital reserves | 1,646,837 |  |  | (196,511 | ) |  | 1,450,326 |  |  | 1,713,784 |  |  | (153,286 | ) |  | 1,560,498 |  |  | a, c
Total CHS Inc. equities | 8,049,942 |  |  | (195,516 | ) |  | 7,854,426 |  |  | 7,948,259 |  |  | (152,935 | ) |  | 7,795,324 |  |  | a
Noncontrolling interests | 12,018 |  |  | (87 | ) |  | 11,931 |  |  | 13,335 |  |  | (79 | ) |  | 13,256 |  |  |
Total equities | 8,061,960 |  |  | (195,603 | ) |  | 7,866,357 |  |  | 7,961,594 |  |  | (153,014 | ) |  | 7,808,580 |  |  |
Total liabilities and equities | $ | 17,084,862 |  |  | $ | (81,466 | ) |  | $ | 17,003,396 |  |  | $ | 18,558,165 |  |  | $ | (98,935 | ) |  | $ | 18,459,230 |  |  |
As of February 28, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $183.8 million reduction of total assets, a $26.8 million reduction of current liabilities, a $28.9 million increase of long-term liabilities and a $185.9 million reduction of total equities. The reduction of total assets related primarily to the elimination of $179.3 million of current derivative assets which had been incorrectly recorded as assets on the Consolidated Balance Sheet and an approximate $16.0 million impairment of goodwill which was triggered when earnings were lowered due to the restatement. The decrease of total assets was partially offset by a related adjustment to increase prepaid income taxes by $9.7 million as a result of the income tax impact of the freight misstatement. The decrease of total current liabilities related primarily to a $7.1 million reduction of current derivative liabilities and a $19.7 million reduction of income taxes payable resulting from the income tax effect of the freight misstatement. The increase of long-term liabilities was primarily attributable to the $28.9 million increase of long-term deferred tax liabilities. The decrease of total equities was related primarily to the elimination of derivative assets and liabilities from the Consolidated Balance Sheet as 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) The correction of intercompany misstatements resulted in a $5.6 million reduction of total assets and a $5.6 million reduction of current liabilities due to different practices of eliminating intercompany balances between CHS's businesses which existed in previous periods. 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 income tax adjustments on income tax accounts, including prepaid income taxes, income taxes payable and deferred income taxes. These misclassification adjustments arose primarily due to the application of differing accounting policies between businesses and collectively with the income tax adjustments resulted in a $108.0 million increase of total assets, a $153.1 million increase of current liabilities, a $35.4 million decrease of long-term liabilities and a $9.7 million decrease of total equities. The increase of total assets related primarily to a $28.8 million increase of cash that resulted from a timing difference for the application of in-transit cash and a $78.2 million increase of receivables and notes payable related to a participation arrangement that did not meet certain criteria for off-balance sheet treatment. As a result, both receivables and notes payable were increased by $78.2 million. The increase of current liabilities related primarily to the $78.2 million increase of receivables and notes payable in a participation arrangement that did not meet certain criteria for off-balance sheet treatment, a $29.1 million increase of customer advance payments that resulted from a timing difference related to the application of in-transit cash and a$27.9 million increase of accounts payable that had previously been included as a contra-inventory balance. Long-term liabilities decreased primarily due to the recognition of long-term deferred tax liabilities of $35.1 million related to the correction of other misstatements identified during fiscal 2018 and other periods. The $9.7 million decrease of total equities relates primarily to the $14.1 million net impact on income tax accounts, which was partially offset by a $4.5 million increase related to the valuation of crack spread derivatives. As of February 28, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $160.3 million reduction of total assets, a $61.3 million reduction of current liabilities, a $15.8 million increase of long-term liabilities and a $114.7 million reduction of total equities. The reduction of total assets related primarily to the elimination of $153.0 million of current derivative assets that were incorrectly recorded as assets on the Consolidate Balance Sheet and an approximate $16.0 million impairment of goodwill recorded in fiscal 2015 associated with lower earnings as a result of the restatement. The overall decrease of total assets was partially offset by related adjustments, including a $6.4 million increase of prepaid income taxes resulting from the income tax impact of the freight misstatement and the recognition of a $0.6 million prepaid freight capacity balance. The decrease of total current liabilities related primarily to a $43.0 million reduction of current derivative liabilities and a $20.7 million reduction of income taxes payable resulting from the income tax effect of the freight misstatement, which were partially offset by the recognition of a $2.3 million accounts payable balance. The increase of long-term liabilities resulted from the $15.8 million increase of long-term deferred tax 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) The correction of intercompany misstatements resulted in a $4.9 million reduction of total assets and a $4.9 million reduction of current liabilities due to different practices of eliminating intercompany balances between CHS's businesses which existed in previous periods. 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 income tax adjustments on income tax accounts, including prepaid income taxes, income taxes payable and deferred income taxes. These misclassification adjustments arose primarily due to the application of differing accounting policies between businesses and collectively with the income tax adjustments resulted in a $66.3 million increase of total assets, a $105.5 million increase of current liabilities, a $0.9 million decrease of long-term liabilities and a $38.3 million decrease of total equities. The increase of total assets related primarily to a $24.8 million increase of cash that resulted from a timing difference for the application of in-transit cash and a $47.7 million increase of inventory with a corresponding increase to accounts payable as a result of a misclassification adjustment for certain items previously included as a contra-inventory balance moving to accounts payable. The increase of inventory was offset by a $48.2 million reduction of inventory that resulted from a misclassification adjustment for certain collateral being classified as receivables rather than inventory. The increase of current liabilities related primarily to the $47.7 million increase of accounts payable as a result of a misclassification adjustment for certain items previously included as a contra-inventory balance moving to accounts payable, a $26.1 million increase of customer advance payments that resulted from a timing difference for the application in-transit cash and $34.4 million increase of accrued expenses. The increase of accrued expenses related to the recognition of a $20.7 million accrued income tax balance associated with the correction of other misstatements identified during fiscal 2017 and other periods and the recognition of $13.7 million of accrued expense related to the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. The $38.3 million decrease of total equities related primarily to the impacts associated with the $24.4 million net impact on income tax accounts and the recognition of $13.7 million of accrued expense related 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 BALANCE SHEETS (Unaudited)
| As of May 31, 2018 |  | As of May 31, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 533,887 |  |  | $ | — |  |  | $ | 533,887 |  |  | $ | 267,229 |  |  | $ | (481 | ) |  | $ | 266,748 |  |  | b, c
Receivables | 2,198,211 |  |  | 50,002 |  |  | 2,248,213 |  |  | 2,722,325 |  |  | 45,642 |  |  | 2,767,967 |  |  | a, b, c
Inventories | 2,940,907 |  |  | (27,400 | ) |  | 2,913,507 |  |  | 2,684,087 |  |  | 4,862 |  |  | 2,688,949 |  |  | c
Derivative assets | 483,794 |  |  | (233,789 | ) |  | 250,005 |  |  | 388,188 |  |  | (182,001 | ) |  | 206,187 |  |  | a, c
Margin and related deposits | 253,141 |  |  | — |  |  | 253,141 |  |  | 251,695 |  |  | — |  |  | 251,695 |  |  |
Supplier advance payments | 426,607 |  |  | — |  |  | 426,607 |  |  | 431,433 |  |  | — |  |  | 431,433 |  |  | b
Other current assets | 198,078 |  |  | (7,398 | ) |  | 190,680 |  |  | 255,236 |  |  | 10,233 |  |  | 265,469 |  |  | a, c
Total current assets | 7,034,625 |  |  | (218,585 | ) |  | 6,816,040 |  |  | 7,000,193 |  |  | (121,745 | ) |  | 6,878,448 |  |  |
Investments | 3,787,163 |  |  | — |  |  | 3,787,163 |  |  | 3,841,749 |  |  | — |  |  | 3,841,749 |  |  |
Property, plant and equipment | 5,140,106 |  |  | — |  |  | 5,140,106 |  |  | 5,409,151 |  |  | (3,500 | ) |  | 5,405,651 |  |  |
Other assets | 973,885 |  |  | (13,645 | ) |  | 960,240 |  |  | 970,704 |  |  | (15,172 | ) |  | 955,532 |  |  | a
Total assets | $ | 16,935,779 |  |  | $ | (232,230 | ) |  | $ | 16,703,549 |  |  | $ | 17,221,797 |  |  | $ | (140,417 | ) |  | $ | 17,081,380 |  |  |
LIABILITIES AND EQUITIES |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Notes payable | $ | 2,819,086 |  |  | $ | 49,420 |  |  | $ | 2,868,506 |  |  | $ | 3,321,808 |  |  | $ | — |  |  | $ | 3,321,808 |  |  |
Current portion of long-term debt | 53,056 |  |  | — |  |  | 53,056 |  |  | 193,096 |  |  | — |  |  | 193,096 |  |  |
Customer margin deposits and credit balances | 137,999 |  |  | — |  |  | 137,999 |  |  | 132,479 |  |  | — |  |  | 132,479 |  |  |
Customer advance payments | 372,616 |  |  | (26 | ) |  | 372,590 |  |  | 390,576 |  |  | 546 |  |  | 391,122 |  |  | b, c
Accounts payable | 1,904,819 |  |  | (6,647 | ) |  | 1,898,172 |  |  | 1,809,868 |  |  | 55,935 |  |  | 1,865,803 |  |  | a, b, c
Derivative liabilities | 344,973 |  |  | (28,142 | ) |  | 316,831 |  |  | 284,212 |  |  | (50,257 | ) |  | 233,955 |  |  | a, c
Accrued expenses | 538,249 |  |  | — |  |  | 538,249 |  |  | 422,371 |  |  | 13,740 |  |  | 436,111 |  |  | a, c
Dividends and equities payable | 209,718 |  |  | — |  |  | 209,718 |  |  | 134,718 |  |  | — |  |  | 134,718 |  |  |
Total current liabilities | 6,380,516 |  |  | 14,605 |  |  | 6,395,121 |  |  | 6,689,128 |  |  | 19,964 |  |  | 6,709,092 |  |  |
Long-term debt | 1,905,515 |  |  | — |  |  | 1,905,515 |  |  | 2,046,264 |  |  | — |  |  | 2,046,264 |  |  |
Long-term deferred tax liabilities | 207,912 |  |  | (4,704 | ) |  | 203,208 |  |  | 350,966 |  |  | 18,204 |  |  | 369,170 |  |  |
Other liabilities | 279,303 |  |  | (434 | ) |  | 278,869 |  |  | 276,483 |  |  | — |  |  | 276,483 |  |  |
Commitments and contingencies (Note 15) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 2,264,038 |  |  | — |  |  | 2,264,038 |  |  | 2,264,063 |  |  | — |  |  | 2,264,063 |  |  | b
Equity certificates | 4,253,414 |  |  | — |  |  | 4,253,414 |  |  | 4,214,657 |  |  | — |  |  | 4,214,657 |  |  | a
Accumulated other comprehensive loss | (169,726 | ) |  | 2,424 |  |  | (167,302 | ) |  | (209,700 | ) |  | 1,132 |  |  | (208,568 | ) |  | a, b, c
Capital reserves | 1,803,078 |  |  | (244,038 | ) |  | 1,559,040 |  |  | 1,577,469 |  |  | (179,635 | ) |  | 1,397,834 |  |  |
Total CHS Inc. equities | 8,150,804 |  |  | (241,614 | ) |  | 7,909,190 |  |  | 7,846,489 |  |  | (178,503 | ) |  | 7,667,986 |  |  | a
Noncontrolling interests | 11,729 |  |  | (83 | ) |  | 11,646 |  |  | 12,467 |  |  | (82 | ) |  | 12,385 |  |  |
Total equities | 8,162,533 |  |  | (241,697 | ) |  | 7,920,836 |  |  | 7,858,956 |  |  | (178,585 | ) |  | 7,680,371 |  |  |
Total liabilities and equities | $ | 16,935,779 |  |  | $ | (232,230 | ) |  | $ | 16,703,549 |  |  | $ | 17,221,797 |  |  | $ | (140,417 | ) |  | $ | 17,081,380 |  |  |
As of May 31, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $229.3 million reduction of total assets, a $50.5 million reduction of current liabilities, a $30.4 million increase of long-term liabilities and a $209.2 million reduction of total equities. The reduction of total assets related primarily to the elimination of $233.9 million of current derivative assets that had been recorded as assets on the Consolidated Balance Sheet and an approximate $16.0 million reduction of goodwill associated with a goodwill impairment charge recorded during fiscal 2015. The decreases of total assets were partially offset by related adjustments, including an $11.1 million increase of prepaid income taxes resulting from the income tax impact of the freight misstatement and the recognition of a $7.5 million prepaid freight capacity balance. The decrease of total current liabilities related primarily to a $25.6 million reduction of current derivative liabilities and a $24.9 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 $30.4 million increase of long-term deferred tax 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) The correction of intercompany misstatements resulted in a $6.9 million reduction of total assets and a $6.9 million reduction of current liabilities due to different practices of eliminating intercompany balances between CHS's businesses which existed in previous periods. 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 income tax adjustments on income tax accounts, including prepaid income taxes, income taxes payable and deferred income taxes. These misclassification adjustments arose primarily due to the application of differing accounting policies between businesses and collectively with the income tax adjustments resulted in a $3.9 million increase of total assets, a $72.0 million increase of current liabilities, a $35.5 million decrease of long-term liabilities and a $32.5 million decrease of total equities. The increase of total assets related primarily to a $49.4 million increase of receivables and notes payable for a participation arrangement that did not meet certain criteria for off-balance sheet treatment. The increase of receivables was mostly offset by an $18.8 million decrease of inventories that resulted from the overstatement of inventories following the implementation of a new enterprise resource planning software during the third quarter of fiscal 2018 and a $24.5 million reduction of prepaid income taxes as a result of the income tax effects associated with the correction of other misstatements identified during fiscal 2018 and other periods. The increase of current liabilities resulted primarily from the $49.4 million increase of notes payable associated with the participation agreement described above, as well as the recognition of a $24.9 million accrued income tax balance due to the income tax effects of the other misstatements. The decrease of long-term liabilities related primarily to a $35.1 million decrease of long-term deferred tax liabilities related to the correction of other misstatements identified during fiscal 2018 and other periods. The decrease of total equities related primarily to the $14.1 million net impact on income tax accounts and the $18.8 million timing difference adjustment associated with the implementation of a new enterprise resource planning software during the third quarter of fiscal 2018. As of May 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $181.6 million reduction of total assets, a $64.0 million reduction of current liabilities, a $19.1 million increase of long-term liabilities and a $136.8 million reduction of total equities. The reduction of total assets related primarily to the elimination of $181.8 million of current derivative assets that had been recorded as assets on the Consolidated Balance Sheet and an approximate $16.0 million reduction of goodwill associated with a goodwill impairment charge recorded during fiscal 2015. The decreases of total assets were partially offset by related adjustments, including a $12.9 million increase of prepaid income taxes resulting from the income tax impact of the freight misstatement, the recognition of a $2.0 million prepaid freight capacity balance and the recognition of a $0.5 million receivable. The decrease of total current liabilities related primarily to a $50.3 million reduction of current derivative liabilities and a $20.7 million reduction of income taxes payable resulting from the income tax effect of the freight misstatement, which were partially offset by the recognition of a $7.0 million accounts payable balance. The increase of long-term liabilities resulted from a $19.1 million increase of long-term deferred tax 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 income tax adjustments on income tax accounts, including prepaid income taxes, income taxes payable and deferred income taxes. These misclassification adjustments arose primarily due to the application of differing accounting policies between businesses and collectively with the income tax adjustments resulted in a $41.2 million increase of total assets, an $83.9 million increase of current liabilities, a $0.9 million decrease of long-term liabilities and a $41.8 million decrease of total equities. The most significant driver of the $41.2 million increase of total assets related to a $53.1 million misclassification adjustment for certain items previously included as a contra-inventory balance moving to accounts payable. The overall increase of inventories was mostly offset by a $48.2 million reduction of inventory that resulted from a misclassification adjustment for certain collateral being classified as receivables rather than inventory; however, this misstatement did not impact total assets. The increase of current liabilities related primarily to the $53.1 million increase of accounts payable associated with a misclassification adjustment for a contra-inventory balance moving to accounts payable, as well as the impact of the income tax adjustments on accrued income taxes, which increased by $20.7 million. The $41.8 million decrease of total equities related primarily to the $24.4 million net impact on income tax accounts, the recognition of $13.7 million of accrued expense related 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 $3.5 million increase of reserve and impairment charges related to a fixed asset impairment charge that should have been recorded during the third quarter of fiscal 2017 rather than the fourth quarter of fiscal 2017. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended November 30, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Revenues | $ | 8,048,889 |  |  | $ | (17,005 | ) |  | $ | 8,031,884 |  |  | a, b, c
Cost of goods sold | 7,735,627 |  |  | (24,570 | ) |  | 7,711,057 |  |  | a, b, c
Gross profit | 313,262 |  |  | 7,565 |  |  | 320,827 |  |  |
Marketing, general and administrative | 140,168 |  |  | (668 | ) |  | 139,500 |  |  | c
Reserve and impairment charges (recoveries), net | (3,787 | ) |  | — |  |  | (3,787 | ) |  |
Operating earnings (loss) | 176,881 |  |  | 8,233 |  |  | 185,114 |  |  |
Interest expense | 40,702 |  |  | — |  |  | 40,702 |  |  |
Other (income) loss | (25,014 | ) |  | — |  |  | (25,014 | ) |  |
Equity (income) loss from investments | (38,362 | ) |  | — |  |  | (38,362 | ) |  |
Income (loss) before income taxes | 199,555 |  |  | 8,233 |  |  | 207,788 |  |  |
Income tax expense (benefit) | 19,936 |  |  | 670 |  |  | 20,606 |  |  | a
Net income (loss) | 179,619 |  |  | 7,563 |  |  | 187,182 |  |  |
Net income (loss) attributable to noncontrolling interests | (464 | ) |  | — |  |  | (464 | ) |  |
Net income (loss) attributable to CHS Inc. | $ | 180,083 |  |  | $ | 7,563 |  |  | $ | 187,646 |  |  |
For the three months ended November 30, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.5 million reduction of income before income taxes and a $1.2 million reduction of net income. These adjustments related to a $0.5 million increase of cost of goods sold and a $0.7 million increase of income tax expense related to 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 an $11.4 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 an $8.8 million increase of income before income taxes and net income. The $8.8 million increase of income before income taxes relates primarily to a $6.2 million decrease of cost of goods sold related to the valuation of crack spread derivatives and a $2.6 million decrease in costs related to postretirement benefit plan activity that resulted from a timing difference associated with recording certain benefit plan expenses (included in cost of goods sold and marketing, general and administrative expenses). 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 $5.7 million decrease of revenues and cost of goods sold. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended February 28, 2018 |  | For the Six Months Ended February 28, 2018 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Revenues | $ | 6,851,093 |  |  | $ | 129,060 |  |  | $ | 6,980,153 |  |  | $ | 14,899,982 |  |  | $ | 112,055 |  |  | $ | 15,012,037 |  |  | a, b, c
Cost of goods sold | 6,708,610 |  |  | 136,239 |  |  | 6,844,849 |  |  | 14,444,237 |  |  | 111,669 |  |  | 14,555,906 |  |  | a, b, c
Gross profit | 142,483 |  |  | (7,179 | ) |  | 135,304 |  |  | 455,745 |  |  | 386 |  |  | 456,131 |  |  |
Marketing, general and administrative | 186,716 |  |  | (3 | ) |  | 186,713 |  |  | 326,881 |  |  | (668 | ) |  | 326,213 |  |  | c
Reserve and impairment charges (recoveries), net | (11,349 | ) |  | 3 |  |  | (11,346 | ) |  | (15,133 | ) |  | — |  |  | (15,133 | ) |  | c
Operating earnings (loss) | (32,884 | ) |  | (7,179 | ) |  | (40,063 | ) |  | 143,997 |  |  | 1,054 |  |  | 145,051 |  |  |
(Gain) loss on disposal of business | (7,705 | ) |  | — |  |  | (7,705 | ) |  | (7,705 | ) |  | — |  |  | (7,705 | ) |  |
Interest expense | 40,176 |  |  | — |  |  | 40,176 |  |  | 80,878 |  |  | — |  |  | 80,878 |  |  |
Other (income) loss | (11,364 | ) |  | — |  |  | (11,364 | ) |  | (36,378 | ) |  | — |  |  | (36,378 | ) |  |
Equity (income) loss from investments | (39,441 | ) |  | — |  |  | (39,441 | ) |  | (77,803 | ) |  | — |  |  | (77,803 | ) |  |
Income (loss) before income taxes | (14,550 | ) |  | (7,179 | ) |  | (21,729 | ) |  | 185,005 |  |  | 1,054 |  |  | 186,059 |  |  |
Income tax expense (benefit) | (181,176 | ) |  | (6,512 | ) |  | (187,688 | ) |  | (161,240 | ) |  | (5,842 | ) |  | (167,082 | ) |  | a, c
Net income (loss) | 166,626 |  |  | (667 | ) |  | 165,959 |  |  | 346,245 |  |  | 6,896 |  |  | 353,141 |  |  |
Net income (loss) attributable to noncontrolling interests | (48 | ) |  | — |  |  | (48 | ) |  | (512 | ) |  | — |  |  | (512 | ) |  |
Net income (loss) attributable to CHS Inc. | $ | 166,674 |  |  | $ | (667 | ) |  | $ | 166,007 |  |  | $ | 346,757 |  |  | $ | 6,896 |  |  | $ | 353,653 |  |  |
For the three months ended February 28, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $22.5 million reduction of income before income taxes and a $22.6 million reduction of net income. These adjustments related to a $22.5 million increase of cost of goods sold and a $0.1 million increase of income tax expense related to 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 $161.5 million increase 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 $15.3 million increase of income before income taxes and a $21.9 million increase of net income. The $15.3 million increase of income before income taxes relates primarily to a $13.7 million decrease of cost of goods sold arising from the use of a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. The remaining increase relates to a $1.6 million decrease of cost of goods sold as a result of the valuation of crack spread derivatives. In addition to the increase of income before income taxes, an income tax benefit of $6.6 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, 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 $27.7 million decrease of revenues and cost of goods sold. For the six months ended February 28, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $23.0 million reduction of income before income taxes and a $23.8 million reduction of net income. These adjustments related to a $23.0 million increase of cost of goods sold and a $0.8 million increase of income tax expense related to 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 $150.2 million increase 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 an $24.1 million increase of income before income taxes and a $30.7 million increase of net income. The $24.1 million increase of income before income taxes relates primarily to a $13.7 million decrease of cost of goods sold that arose from a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. The remaining increase relates to a $7.9 million decrease of cost of goods sold related to the valuation of crack spread derivatives and a $2.6 million increase to expense related to postretirement benefit plan activity that resulted from a timing difference associated with the recording of certain benefit plan expenses (included in cost of goods sold and marketing, general and administrative expenses). In addition to the increase of income before income taxes, an income tax benefit of $6.6 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, 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 $33.4 million decrease of revenues and cost of goods sold. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended May 31, 2018 |  | For the Nine Months Ended May 31, 2018 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Revenues | $ | 9,027,525 |  |  | $ | 59,803 |  |  | $ | 9,087,328 |  |  | $ | 23,927,508 |  |  | $ | 171,857 |  |  | $ | 24,099,365 |  |  | a, b, c
Cost of goods sold | 8,728,914 |  |  | 112,447 |  |  | 8,841,361 |  |  | 23,173,151 |  |  | 224,116 |  |  | 23,397,267 |  |  | a, b, c
Gross profit | 298,611 |  |  | (52,644 | ) |  | 245,967 |  |  | 754,357 |  |  | (52,259 | ) |  | 702,098 |  |  |
Marketing, general and administrative | 161,578 |  |  | 1 |  |  | 161,579 |  |  | 488,459 |  |  | (667 | ) |  | 487,792 |  |  | c
Reserve and impairment charges (recoveries), net | (3,811 | ) |  | — |  |  | (3,811 | ) |  | (18,944 | ) |  | — |  |  | (18,944 | ) |  |
Operating earnings (loss) | 140,844 |  |  | (52,645 | ) |  | 88,199 |  |  | 284,842 |  |  | (51,592 | ) |  | 233,250 |  |  |
(Gain) loss on disposal of business | (124,050 | ) |  | — |  |  | (124,050 | ) |  | (131,755 | ) |  | — |  |  | (131,755 | ) |  |
Interest expense | 49,340 |  |  | — |  |  | 49,340 |  |  | 130,218 |  |  | — |  |  | 130,218 |  |  |
Other (income) loss | (14,622 | ) |  | — |  |  | (14,622 | ) |  | (51,000 | ) |  | — |  |  | (51,000 | ) |  |
Equity (income) loss from investments | (59,308 | ) |  | — |  |  | (59,308 | ) |  | (137,111 | ) |  | — |  |  | (137,111 | ) |  |
Income (loss) before income taxes | 289,484 |  |  | (52,645 | ) |  | 236,839 |  |  | 474,490 |  |  | (51,592 | ) |  | 422,898 |  |  |
Income tax expense (benefit) | 60,338 |  |  | (5,119 | ) |  | 55,219 |  |  | (100,901 | ) |  | (10,962 | ) |  | (111,863 | ) |  | a, c
Net income (loss) | 229,146 |  |  | (47,526 | ) |  | 181,620 |  |  | 575,391 |  |  | (40,630 | ) |  | 534,761 |  |  |
Net income (loss) attributable to noncontrolling interests | (187 | ) |  | — |  |  | (187 | ) |  | (699 | ) |  | — |  |  | (699 | ) |  |
Net income (loss) attributable to CHS Inc. | $ | 229,333 |  |  | $ | (47,526 | ) |  | $ | 181,807 |  |  | $ | 576,090 |  |  | $ | (40,630 | ) |  | $ | 535,460 |  |  |
For the three months ended May 31, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $29.8 million reduction of income before income taxes and a $24.7 million reduction of net income. These adjustments related to a $29.8 million increase of cost of goods sold and a $5.1 million decrease of income tax expense related to 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 $38.8 million increase 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 $22.8 million decrease of income before income taxes and net income. The $22.8 million decrease of income before income taxes related primarily to an $18.8 million increase of cost of goods sold due to adjustments associated with the implementation of a new enterprise resource planning software during the third quarter of fiscal 2018. The remaining decrease relates to an $11.8 million increase of revenues and a $14.5 million increase of cost of goods sold related to the timing of revenue recognition as well as a $1.3 million increase of cost of goods sold related to the valuation of crack spread derivatives. 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 $9.2 million increase of revenues and cost of goods sold. For the nine months ended May 31, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $52.9 million reduction of income before income taxes and a $48.5 million reduction of net income. These adjustments related to a $52.9 million increase of cost of goods sold and a $4.4 million increase of income tax benefit related to 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 $189.0 million increase 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 $1.3 million increase of income before income taxes and a $7.9 million increase of net income. The $1.3 million increase of income before income taxes relates to a combination of offsetting misstatements, including a $13.7 million decrease of cost of goods sold that arose from a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018, a $6.6 million decrease of cost of goods sold related to the valuation of crack spread derivatives, and a $2.6 million decrease in expense related to postretirement benefit plan activity that resulted from a timing difference associated with recording certain benefit plan expenses (included in cost of goods sold and marketing, general and administrative expenses). The overall increase was mostly offset by an $18.8 million increase of cost of goods sold due to a timing difference associated with the implementation of a new enterprise resource planning software during the third quarter of fiscal 2018. The increase in income before income taxes and net income was also impacted by a $7.0 million increase of revenue and a $9.9 million increase of cost of goods sold related to the timing of revenue recognition. In addition to the increase of income before income taxes, an income tax benefit of $6.6 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, 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 $24.1 million decrease of revenues and cost of goods sold. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended November 30, 2016 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Revenues | $ | 8,048,250 |  |  | $ | (46,346 | ) |  | $ | 8,001,904 |  |  | a, b, c
Cost of goods sold | 7,695,553 |  |  | (40,029 | ) |  | 7,655,524 |  |  | a, b, c
Gross profit | 352,697 |  |  | (6,317 | ) |  | 346,380 |  |  |
Marketing, general and administrative | 147,849 |  |  | 3,409 |  |  | 151,258 |  |  | c
Reserve and impairment charges (recoveries), net | 18,357 |  |  | — |  |  | 18,357 |  |  |
Operating earnings (loss) | 186,491 |  |  | (9,726 | ) |  | 176,765 |  |  |
(Gain) loss on disposal of business | — |  |  | 4,105 |  |  | 4,105 |  |  | c
Interest expense | 38,265 |  |  | — |  |  | 38,265 |  |  |
Other (income) loss | (37,000 | ) |  | (7,509 | ) |  | (44,509 | ) |  | c
Equity (income) loss from investments | (40,328 | ) |  | — |  |  | (40,328 | ) |  |
Income (loss) before income taxes | 225,554 |  |  | (6,322 | ) |  | 219,232 |  |  |
Income tax expense (benefit) | 16,612 |  |  | (536 | ) |  | 16,076 |  |  | a
Net income (loss) | 208,942 |  |  | (5,786 | ) |  | 203,156 |  |  |
Net income (loss) attributable to noncontrolling interests | (208 | ) |  | — |  |  | (208 | ) |  |
Net income (loss) attributable to CHS Inc. | $ | 209,150 |  |  | $ | (5,786 | ) |  | $ | 203,364 |  |  |
For the three months ended November 30, 2016 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.1 million increase of income before income taxes and a $0.6 million increase of net income. These adjustments were primarily related to a $1.9 million increase of cost of goods sold, a $1.9 million increase of revenues related to the timing of revenue recognition, and a $0.6 million decrease of income tax expense related to 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 $77.3 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 $6.4 million decrease of income before income taxes and net income. The $6.4 million decrease of income before income taxes and net income relates primarily to an increase of cost of goods sold that arose from a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. 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 $29.1 million increase of revenues, a $29.1 million increase of cost of goods sold, a $3.4 million increase of marketing, general and administrative expenses, a $4.1 million increase of loss on disposal of business and a $7.5 million increase of other income. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended February 28, 2017 |  | For the Six Months Ended February 28, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Revenues | $ | 7,320,406 |  |  | $ | 80,367 |  |  | $ | 7,400,773 |  |  | $ | 15,368,656 |  |  | $ | 34,021 |  |  | $ | 15,402,677 |  |  | a, b, c
Cost of goods sold | 7,079,664 |  |  | 85,601 |  |  | 7,165,265 |  |  | 14,775,217 |  |  | 45,572 |  |  | 14,820,789 |  |  | a, b, c
Gross profit | 240,742 |  |  | (5,234 | ) |  | 235,508 |  |  | 593,439 |  |  | (11,551 | ) |  | 581,888 |  |  |
Marketing, general and administrative | 157,862 |  |  | 2,304 |  |  | 160,166 |  |  | 305,711 |  |  | 5,713 |  |  | 311,424 |  |  | c
Reserve and impairment charges (recoveries), net | 72,373 |  |  | — |  |  | 72,373 |  |  | 90,730 |  |  | — |  |  | 90,730 |  |  |
Operating earnings (loss) | 10,507 |  |  | (7,538 | ) |  | 2,969 |  |  | 196,998 |  |  | (17,264 | ) |  | 179,734 |  |  |
(Gain) loss on disposal of business | — |  |  | (1,395 | ) |  | (1,395 | ) |  | — |  |  | 2,710 |  |  | 2,710 |  |  | c
Interest expense | 39,945 |  |  | — |  |  | 39,945 |  |  | 78,210 |  |  | — |  |  | 78,210 |  |  |
Other (income) loss | (17,235 | ) |  | (848 | ) |  | (18,083 | ) |  | (54,235 | ) |  | (8,357 | ) |  | (62,592 | ) |  | c
Equity (income) loss from investments | (35,800 | ) |  | — |  |  | (35,800 | ) |  | (76,128 | ) |  | — |  |  | (76,128 | ) |  |
Income (loss) before income taxes | 23,597 |  |  | (5,295 | ) |  | 18,302 |  |  | 249,151 |  |  | (11,617 | ) |  | 237,534 |  |  |
Income tax expense (benefit) | 8,624 |  |  | (4,939 | ) |  | 3,685 |  |  | 25,236 |  |  | (5,475 | ) |  | 19,761 |  |  | a, c
Net income (loss) | 14,973 |  |  | (356 | ) |  | 14,617 |  |  | 223,915 |  |  | (6,142 | ) |  | 217,773 |  |  |
Net income (loss) attributable to noncontrolling interests | 406 |  |  | — |  |  | 406 |  |  | 198 |  |  | — |  |  | 198 |  |  |
Net income (loss) attributable to CHS Inc. | $ | 14,567 |  |  | $ | (356 | ) |  | $ | 14,211 |  |  | $ | 223,717 |  |  | $ | (6,142 | ) |  | $ | 217,575 |  |  |
For the three months ended February 28, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.3 million reduction of income before income taxes and a $0.2 million increase of net income. These adjustments related to a $1.1 million reduction of revenues and a $0.9 million decrease of cost of goods sold, and a $0.5 million decrease of income tax expense related to 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 $58.9 million increase 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 $5.0 million decrease of income before income taxes and a $0.6 million decrease of net income. The $5.0 million decrease of income before income taxes relates primarily to a $5.6 million increase of cost of goods sold that arose from a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. The overall decrease of income before income taxes was partially offset by a $0.6 million decrease of cost of goods sold related to the valuation of crack spread derivatives. The decrease of income before income taxes was mostly offset by an income tax benefit of $4.5 million that 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 $22.6 million increase of revenues, a $22.5 million increase of cost of goods sold, a $2.3 million increase of marketing, general and administrative expenses, a $1.4 million increase of gain on disposal of business, and a $0.8 million increase of other income. For the six months ended February 28, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.2 million reduction of income before income taxes and a $0.8 million increase of net income. These adjustments related to a $0.7 million increase of revenues and a $1.0 million increase of cost of goods and a $1.0 million decrease of income tax expense related to 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 $18.4 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 an $11.4 million decrease of income before income taxes and a $6.9 million decrease of net income. The $11.4 million decrease of income before income taxes relates primarily to a $12.1 million increase of cost of goods sold that arose from a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018. The overall decrease of income before income taxes was partially offset by a $0.7 million decrease of cost of goods sold related to the valuation of crack spread derivatives. The decrease of income before income taxes was partially offset by an income tax benefit of $4.5 million that 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 $51.7 million increase of revenues, a $51.6 million increase of cost of goods sold, a $5.7 million increase of marketing, general and administrative expenses, a $2.7 million increase of loss on disposal of business, and an $8.4 million increase of other income. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended May 31, 2017 |  | For the Nine Months Ended May 31, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Revenues | $ | 8,614,090 |  |  | $ | 24,320 |  |  | $ | 8,638,410 |  |  | $ | 23,982,746 |  |  | $ | 58,341 |  |  | $ | 24,041,087 |  |  | a, b, c
Cost of goods sold | 8,366,988 |  |  | 50,276 |  |  | 8,417,264 |  |  | 23,142,205 |  |  | 95,848 |  |  | 23,238,053 |  |  | a, b, c
Gross profit | 247,102 |  |  | (25,956 | ) |  | 221,146 |  |  | 840,541 |  |  | (37,507 | ) |  | 803,034 |  |  |
Marketing, general and administrative | 153,498 |  |  | 1,849 |  |  | 155,347 |  |  | 459,831 |  |  | 6,940 |  |  | 466,771 |  |  | c
Reserve and impairment charges (recoveries), net | 323,901 |  |  | 2,878 |  |  | 326,779 |  |  | 414,009 |  |  | 3,500 |  |  | 417,509 |  |  | c
Operating earnings (loss) | (230,297 | ) |  | (30,683 | ) |  | (260,980 | ) |  | (33,299 | ) |  | (47,947 | ) |  | (81,246 | ) |  |
(Gain) loss on disposal of business | — |  |  | (1,224 | ) |  | (1,224 | ) |  | — |  |  | 1,486 |  |  | 1,486 |  |  | c
Interest expense | 39,201 |  |  | — |  |  | 39,201 |  |  | 117,411 |  |  | — |  |  | 117,411 |  |  |
Other (income) loss | (11,947 | ) |  | (5 | ) |  | (11,952 | ) |  | (66,183 | ) |  | (8,361 | ) |  | (74,544 | ) |  | c
Equity (income) loss from investments | (48,393 | ) |  | — |  |  | (48,393 | ) |  | (124,521 | ) |  | — |  |  | (124,521 | ) |  |
Income (loss) before income taxes | (209,158 | ) |  | (29,454 | ) |  | (238,612 | ) |  | 39,994 |  |  | (41,072 | ) |  | (1,078 | ) |  |
Income tax expense (benefit) | (163,018 | ) |  | (3,106 | ) |  | (166,124 | ) |  | (137,781 | ) |  | (8,582 | ) |  | (146,363 | ) |  | a, c
Net income (loss) | (46,140 | ) |  | (26,348 | ) |  | (72,488 | ) |  | 177,775 |  |  | (32,490 | ) |  | 145,285 |  |  |
Net income (loss) attributable to noncontrolling interests | (955 | ) |  | — |  |  | (955 | ) |  | (757 | ) |  | — |  |  | (757 | ) |  |
Net income (loss) attributable to CHS Inc. | $ | (45,185 | ) |  | $ | (26,348 | ) |  | $ | (71,533 | ) |  | $ | 178,532 |  |  | $ | (32,490 | ) |  | $ | 146,042 |  |  |
For the three months ended May 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $25.9 million reduction of income before income taxes and a $22.8 million reduction of net income. These adjustments related to a $3.7 million decrease of revenues and a $22.2 million increase of cost of goods sold and a $3.1 million increase of income tax benefit related to 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 $9.6 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 $3.6 million decrease of income before income taxes and net income. The $3.6 million decrease of income before income taxes and net income relates primarily to a $3.5 million increase of reserve and impairment charges related to a timing difference for a fixed asset impairment charge that should have been recorded during the third quarter of fiscal 2017 rather than the fourth quarter of fiscal 2017. 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 $37.6 million increase of revenues, a $37.6 million increase of cost of goods sold, a $1.8 million increase of marketing, general and administrative expenses, a $0.6 million decrease of reserve and impairment charges and a $1.2 million increase of gain on disposal of business. For the nine months ended May 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $26.2 million reduction of income before income taxes and a $22.1 million reduction of net income. These adjustments related to a $2.9 million reduction of revenues and a $23.2 million increase of cost of goods sold, as well as a $4.1 million increase of income tax benefit related to 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 $28.0 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 $14.9 million decrease of income before income taxes and a $10.4 million decrease of net income. The $14.9 million decrease of income before income taxes relates primarily to a $12.1 million increase of cost of goods sold that arose from a unit of measure assumption in the calculation of an excise tax credit that was changed during fiscal 2018 and a $3.5 million increase of reserve and impairment charges related to a fixed asset impairment charge that should have been recorded during the third quarter of fiscal 2017 rather than the fourth quarter of fiscal 2017. The overall decrease of income before income taxes was partially offset by a $0.7 million decrease of cost of goods sold related to the valuation of crack spread derivatives. The decrease of income before income taxes was partially offset by an income tax benefit of $4.5 million that 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 an $89.2 million increase of revenues, a $89.2 million increase of cost of goods sold, a $6.9 million increase of marketing, general and administrative expenses, a $1.5 million increase of loss on sale of business and an $8.4 million increase of other income. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| For the Three Months Ended August 31, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Revenues | $ | 7,952,005 |  |  | $ | 44,334 |  |  | $ | 7,996,339 |  |  | a, b, c
Cost of goods sold | 7,843,305 |  |  | 61,408 |  |  | 7,904,713 |  |  | a, b, c
Gross profit | 108,700 |  |  | (17,074 | ) |  | 91,626 |  |  |
Marketing, general and administrative | 144,528 |  |  | 708 |  |  | 145,236 |  |  | c
Reserve and impairment charges (recoveries), net | 42,670 |  |  | (3,500 | ) |  | 39,170 |  |  | c
Operating earnings (loss) | (78,498 | ) |  | (14,282 | ) |  | (92,780 | ) |  |
(Gain) loss on disposal of business | — |  |  | 704 |  |  | 704 |  |  | c
Interest expense | 53,828 |  |  | — |  |  | 53,828 |  |  |
Other (income) loss | (24,664 | ) |  | (743 | ) |  | (25,407 | ) |  | c
Equity (income) loss from investments | (12,817 | ) |  | — |  |  | (12,817 | ) |  |
Income (loss) before income taxes | (94,845 | ) |  | (14,243 | ) |  | (109,088 | ) |  |
Income tax expense (benefit) | (44,293 | ) |  | 9,532 |  |  | (34,761 | ) |  | a, c
Net income (loss) | (50,552 | ) |  | (23,775 | ) |  | (74,327 | ) |  |
Net income (loss) attributable to noncontrolling interests | 123 |  |  | — |  |  | 123 |  |  |
Net income (loss) attributable to CHS Inc. | $ | (50,675 | ) |  | $ | (23,775 | ) |  | $ | (74,450 | ) |  |
For the three months ended August 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $12.0 million reduction of income before income taxes and a $25.2 million reduction of net income. These adjustments related to a $2.9 million increase of revenues, and a $14.9 million increase of cost of goods sold and a $13.3 million decrease of income tax benefit related to 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 $7.7 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 $2.3 million decrease of income before income taxes and a $1.4 million increase of net income. The $2.3 million decrease of income before income taxes related primarily to a $3.2 million increase of cost of goods sold related to the valuation of crack spread derivatives and a $2.6 million increase of cost of goods sold and marketing, general and administrative expenses related to a timing difference associated with the recording of certain benefit plan expenses. These decreases of income before income taxes were partially offset by a $3.5 million decrease of reserve and impairment charges related to a timing difference for recording a fixed asset impairment charge. The decrease of net income was partially offset by an income tax benefit of $3.7 million that 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 $49.1 million increase of revenues, a $49.1 million increase of cost of goods sold, a $0.7 million increase of loss on disposal of business and a $0.7 million increase of other income. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| For the Three Months Ended November 30, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Net income (loss) | $ | 179,619 |  |  | $ | 7,563 |  |  | $ | 187,182 |  |  | a, c
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |
Postretirement benefit plan activity, net of tax expense (benefit) of $2,620 | 4,196 |  |  | (2,602 | ) |  | 1,594 |  |  | c
Unrealized net gain (loss) on available for sale investments net of tax expense (benefit) of $404 | 3,640 |  |  | — |  |  | 3,640 |  |  |
Cash flow hedges net of tax expense (benefit) of $(2) | (4 | ) |  | — |  |  | (4 | ) |  |
Foreign currency translation adjustment net of tax expense (benefit) of $(443) | (2,607 | ) |  | 396 |  |  | (2,211 | ) |  | a
Other comprehensive income (loss), net of tax | 5,225 |  |  | (2,206 | ) |  | 3,019 |  |  |
Comprehensive income | 184,844 |  |  | 5,357 |  |  | 190,201 |  |  |
Less comprehensive income attributable to noncontrolling interests | (464 | ) |  | — |  |  | (464 | ) |  |
Comprehensive income attributable to CHS Inc. | $ | 185,308 |  |  | $ | 5,357 |  |  | $ | 190,665 |  |  |
For the three months ended November 30, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $1.2 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 three months ended November 30, 2017, above. The adjustment related to foreign currency translation is attributable 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 an $8.8 million increase 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 three months ended November 30, 2017, above. The adjustment related to postretirement benefit plan activity is attributable to a timing difference associated with recording certain benefit plan expenses. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| For the Three Months Ended February 28, 2018 |  | For the Six Months Ended February 28, 2018 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Net income (loss) | $ | 166,626 |  |  | $ | (667 | ) |  | $ | 165,959 |  |  | $ | 346,245 |  |  | $ | 6,896 |  |  | $ | 353,141 |  |  | a, c
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |  |  |
Postretirement benefit plan activity net of tax expense (benefit) of $1,309 and $3,929 | 3,141 |  |  | 1 |  |  | 3,142 |  |  | 7,338 |  |  | (2,602 | ) |  | 4,736 |  |  | c
Unrealized net gain (loss) on available for sale investments net of tax expense (benefit) of $1,481 and $1,885 | 3,554 |  |  | — |  |  | 3,554 |  |  | 7,194 |  |  | — |  |  | 7,194 |  |  |
Cash flow hedges net of tax expense (benefit) of $443 and $441 | 1,063 |  |  | — |  |  | 1,063 |  |  | 1,059 |  |  | — |  |  | 1,059 |  |  |
Foreign currency translation adjustment net of tax expense (benefit) of $422 and $(21) | 2,461 |  |  | (109 | ) |  | 2,352 |  |  | (146 | ) |  | 287 |  |  | 141 |  |  | a
Other comprehensive income (loss), net of tax | 10,219 |  |  | (108 | ) |  | 10,111 |  |  | 15,445 |  |  | (2,315 | ) |  | 13,130 |  |  |
Comprehensive income | 176,845 |  |  | (775 | ) |  | 176,070 |  |  | 361,690 |  |  | 4,581 |  |  | 366,271 |  |  |
Less comprehensive income attributable to noncontrolling interests | (48 | ) |  | — |  |  | (48 | ) |  | (512 | ) |  | — |  |  | (512 | ) |  |
Comprehensive income attributable to CHS Inc. | $ | 176,893 |  |  | $ | (775 | ) |  | $ | 176,118 |  |  | $ | 362,202 |  |  | $ | 4,581 |  |  | $ | 366,783 |  |  |
For the three months ended February 28, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $22.6 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 three months ended February 28, 2018, above. The adjustment related to foreign currency translation is attributable 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 $21.9 million increase 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 three months ended February 28, 2018, above. For the six months ended February 28, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $23.8 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 six months ended February 28, 2018, above. The adjustment related to foreign currency translation is attributable 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 $30.7 million increase 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 six months ended February 28, 2018, above. The adjustment related to postretirement benefit plan activity is attributable to a timing difference associated with recording certain benefit plan expenses. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| For the Three Months Ended May 31, 2018 |  | For the Nine Months Ended May 31, 2018 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Net income (loss) | $ | 229,146 |  |  | $ | (47,526 | ) |  | $ | 181,620 |  |  | $ | 575,391 |  |  | $ | (40,630 | ) |  | $ | 534,761 |  |  | a, c
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |  |  |
Postretirement benefit plan activity net of tax expense (benefit) of $1,424 and $5,353 | 3,417 |  |  | — |  |  | 3,417 |  |  | 10,755 |  |  | (2,602 | ) |  | 8,153 |  |  | c
Unrealized net gain (loss) on available for sale investments net of tax expense (benefit) of $2,620 and $4,505 | 6,286 |  |  | — |  |  | 6,286 |  |  | 13,480 |  |  | — |  |  | 13,480 |  |  |
Cash flow hedges net of tax expense (benefit) of $172 and $613 | 413 |  |  | — |  |  | 413 |  |  | 1,472 |  |  | — |  |  | 1,472 |  |  |
Foreign currency translation adjustment net of tax expense (benefit) of $(254) and $(275) | (11,617 | ) |  | 1,429 |  |  | (10,188 | ) |  | (11,763 | ) |  | 1,716 |  |  | (10,047 | ) |  | a
Other comprehensive income (loss), net of tax | (1,501 | ) |  | 1,429 |  |  | (72 | ) |  | 13,944 |  |  | (886 | ) |  | 13,058 |  |  |
Comprehensive income | 227,645 |  |  | (46,097 | ) |  | 181,548 |  |  | 589,335 |  |  | (41,516 | ) |  | 547,819 |  |  |
Less comprehensive income attributable to noncontrolling interests | (187 | ) |  | — |  |  | (187 | ) |  | (699 | ) |  | — |  |  | (699 | ) |  |
Comprehensive income attributable to CHS Inc. | $ | 227,832 |  |  | $ | (46,097 | ) |  | $ | 181,735 |  |  | $ | 590,034 |  |  | $ | (41,516 | ) |  | $ | 548,518 |  |  |
For the three months ended May 31, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $24.7 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 three months ended May 31, 2018, above. The adjustment related to foreign currency translation is attributable 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 $22.8 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 three months ended May 31, 2018, above. For the nine months ended May 31, 2018 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $48.5 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 nine months ended May 31, 2018, above. The adjustment related to foreign currency translation is attributable 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 $7.9 million increase 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 nine months ended May 31, 2018, above. The adjustment related to postretirement benefit plan activity relates to a timing difference associated with recording certain benefit plan expenses. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| For the Three Months Ended November 30, 2016 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Net income (loss) | $ | 208,942 |  |  | $ | (5,786 | ) |  | $ | 203,156 |  |  | a, c
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |
Postretirement benefit plan activity net of tax expense (benefit) of $2,011 | 3,239 |  |  | — |  |  | 3,239 |  |  |
Unrealized net gain (loss) on available for sale investments net of tax expense (benefit) of $482 | 777 |  |  | — |  |  | 777 |  |  |
Cash flow hedges net of tax expense (benefit) of $406 | 654 |  |  | — |  |  | 654 |  |  |
Foreign currency translation adjustment net of tax expense (benefit) of $(209) | (19,164 | ) |  | 1,089 |  |  | (18,075 | ) |  | a
Other comprehensive income (loss), net of tax | (14,494 | ) |  | 1,089 |  |  | (13,405 | ) |  |
Comprehensive income | 194,448 |  |  | (4,697 | ) |  | 189,751 |  |  |
Less comprehensive income attributable to noncontrolling interests | (208 | ) |  | — |  |  | (208 | ) |  |
Comprehensive income attributable to CHS Inc. | $ | 194,656 |  |  | $ | (4,697 | ) |  | $ | 189,959 |  |  |
For the three months ended November 30, 2016 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.6 million increase 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 three months ended November 30, 2016, above. The adjustment related to foreign currency translation is attributable 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 $6.4 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 three months ended November 30, 2016, above. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| For the Three Months Ended February 28, 2017 |  | For the Six Months Ended February 28, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Net income (loss) | $ | 14,973 |  |  | $ | (356 | ) |  | $ | 14,617 |  |  | $ | 223,915 |  |  | $ | (6,142 | ) |  | $ | 217,773 |  |  | a, c
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |  |  |
Postretirement benefit plan activity net of tax expense (benefit) of $2,312 and $4,323 | 3,724 |  |  | — |  |  | 3,724 |  |  | 6,963 |  |  | — |  |  | 6,963 |  |  |
Unrealized net gain (loss) on available for sale investments net of tax expense (benefit) of $600 and $1,083 | 968 |  |  | — |  |  | 968 |  |  | 1,744 |  |  | 1 |  |  | 1,745 |  |  | c
Cash flow hedges net of tax expense (benefit) of $598 and $1,005 | 963 |  |  | 1 |  |  | 964 |  |  | 1,618 |  |  | — |  |  | 1,618 |  |  | c
Foreign currency translation adjustment net of tax expense (benefit) of $(204) and $5 | 9,123 |  |  | (936 | ) |  | 8,187 |  |  | (10,041 | ) |  | 153 |  |  | (9,888 | ) |  | a
Other comprehensive income (loss), net of tax | 14,778 |  |  | (935 | ) |  | 13,843 |  |  | 284 |  |  | 154 |  |  | 438 |  |  |
Comprehensive income | 29,751 |  |  | (1,291 | ) |  | 28,460 |  |  | 224,199 |  |  | (5,988 | ) |  | 218,211 |  |  |
Less comprehensive income attributable to noncontrolling interests | 406 |  |  | — |  |  | 406 |  |  | 198 |  |  | — |  |  | 198 |  |  |
Comprehensive income attributable to CHS Inc. | $ | 29,345 |  |  | $ | (1,291 | ) |  | $ | 28,054 |  |  | $ | 224,001 |  |  | $ | (5,988 | ) |  | $ | 218,013 |  |  |
For the three months ended February 28, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.2 million increase 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 three months ended February 28, 2017, above. The adjustment related to foreign currency translation is attributable 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 $0.6 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 three months ended February 28, 2017, above. For the six months ended February 28, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $0.8 million increase 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 six months ended February 28, 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 $6.9 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 six months ended February 28, 2017, above. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| For the Three Months Ended May 31, 2017 |  | For the Nine Months Ended May 31, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Net income (loss) | $ | (46,140 | ) |  | $ | (26,348 | ) |  | $ | (72,488 | ) |  | $ | 177,775 |  |  | $ | (32,490 | ) |  | $ | 145,285 |  |  | a, c
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |  |  |  |
Postretirement benefit plan activity net of tax expense (benefit) of $2,257 and $6,580 | 3,635 |  |  | 1 |  |  | 3,636 |  |  | 10,599 |  |  | — |  |  | 10,599 |  |  | c
Unrealized net gain (loss) on available for sale investments net of tax expense (benefit) of $(72) and $1,010 | (117 | ) |  | (1 | ) |  | (118 | ) |  | 1,627 |  |  | — |  |  | 1,627 |  |  | c
Cash flow hedges net of tax expense (benefit) of $233 and $1,238 | 375 |  |  | — |  |  | 375 |  |  | 1,993 |  |  | — |  |  | 1,993 |  |  |
Foreign currency translation adjustment net of tax expense (benefit) of $(334) and $(329) | (2,151 | ) |  | 782 |  |  | (1,369 | ) |  | (12,193 | ) |  | 936 |  |  | (11,257 | ) |  | a
Other comprehensive income (loss), net of tax | 1,742 |  |  | 782 |  |  | 2,524 |  |  | 2,026 |  |  | 936 |  |  | 2,962 |  |  |
Comprehensive income | (44,398 | ) |  | (25,566 | ) |  | (69,964 | ) |  | 179,801 |  |  | (31,554 | ) |  | 148,247 |  |  |
Less comprehensive income attributable to noncontrolling interests | (955 | ) |  | — |  |  | (955 | ) |  | (757 | ) |  | — |  |  | (757 | ) |  |
Comprehensive income attributable to CHS Inc. | $ | (43,443 | ) |  | $ | (25,566 | ) |  | $ | (69,009 | ) |  | $ | 180,558 |  |  | $ | (31,554 | ) |  | $ | 149,004 |  |  |
For the three months ended May 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $22.8 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 three months ended May 31, 2017, above. The adjustment related to foreign currency translation is attributable 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 $3.6 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 three months ended May 31, 2017, above. For the nine months ended May 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $22.1 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 nine months ended May 31, 2017, above. The adjustment related to foreign currency translation is attributable 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 $10.4 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 nine months ended May 31, 2017, above. CHS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
| For the Three Months Ended August 31, 2017 |  |
| As Previously Reported |  | Restatement Adjustments |  | As Restated |  | Restatement References
| (Dollars in thousands) |  |
Net income (loss) | $ | (50,552 | ) |  | $ | (23,775 | ) |  | $ | (74,327 | ) |  | a, c
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |
Postretirement benefit plan activity net of tax expense (benefit) of $12,108 | 19,501 |  |  | 2,602 |  |  | 22,103 |  |  | c
Unrealized net gain (loss) on available for sale investments net of tax expense (benefit) of $1,722 | 2,758 |  |  | — |  |  | 2,758 |  |  |
Cash flow hedges net of tax expense (benefit) of $155 | 249 |  |  | — |  |  | 249 |  |  |
Foreign currency translation adjustment net of tax expense (benefit) of $542 | 3,522 |  |  | (424 | ) |  | 3,098 |  |  | a
Other comprehensive income (loss), net of tax | 26,030 |  |  | 2,178 |  |  | 28,208 |  |  |
Comprehensive income | (24,522 | ) |  | (21,597 | ) |  | (46,119 | ) |  |
Less comprehensive income attributable to noncontrolling interests | 123 |  |  | — |  |  | 123 |  |  |
Comprehensive income attributable to CHS Inc. | $ | (24,645 | ) |  | $ | (21,597 | ) |  | $ | (46,242 | ) |  |
For the three months ended August 31, 2017 Freight derivatives and related misstatements (a) The correction of freight derivatives and related misstatements resulted in a $25.2 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 three months ended August 31, 2017, above. The adjustment related to foreign currency translation is attributable 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 $1.4 million increase 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 three months 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.

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- Definition Tabular disclosure of quarterly financial data. Includes, but is not limited to, financial information for fiscal quarters, cumulative effect of a change in accounting principle and earnings per share data. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109225645&loc=d3e1280-108306 + Details
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