XML 35 R17.htm IDEA: XBRL DOCUMENT
v3.19.1

Segment Reporting | 6 Months Ended
--- | ---
Feb. 28, 2019
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We define our operating segments in accordance with ASC Topic 280, Segment Reporting, to reflect the manner in which our chief operating decision maker, our Chief Executive Officer, evaluates performance and allocates resources in managing our business. We have aggregated those operating segments into three reportable segments: Energy, Ag and Nitrogen Production. Our Energy segment produces and provides primarily for the wholesale distribution of petroleum products and transportation of those products. Our Ag segment purchases and further processes or resells grains and oilseeds originated by our country operations business, by our member cooperatives and by third parties; serves as a wholesaler and retailer of crop inputs; and produces and markets ethanol. Our Nitrogen Production segment consists solely of our equity method investment in CF Nitrogen, which entitles us, pursuant to a supply agreement that we entered into with CF Nitrogen, to purchase up to a specified annual quantity of granular urea and urea ammonium nitrate annually from CF Nitrogen. Insignificant operating segments have been aggregated within Corporate and Other. Corporate administrative expenses and interest are allocated to each business segment, and Corporate and Other, based on direct usage for services, such as information technology and legal, and other factors or considerations relevant to the costs incurred. Many of our business activities are highly seasonal and operating results vary throughout the year. For example, in our Ag segment, our crop nutrients and country operations businesses generally experience higher volumes and income during the spring planting season and in the fall, which corresponds to harvest. Our grain marketing operations are also subject to fluctuations in volume and earnings based on producer harvests, world grain prices and demand. Our Energy segment generally experiences higher volumes and profitability in certain operating areas, such as refined products, in the summer and early fall when gasoline and diesel fuel usage is highest and is subject to global supply and demand forces. Other energy products, such as propane, may experience higher volumes and profitability during the winter heating and fall crop drying seasons. Our revenues, assets and cash flows can be significantly affected by global trade and associated market prices for commodities such as petroleum products, natural gas, ethanol, grains, oilseeds, crop nutrients and flour. Changes in market prices for commodities that we purchase without a corresponding change in the selling prices of those products can affect revenues and operating earnings. Commodity prices are affected by a wide range of factors beyond our control, including the weather, crop damage due to disease or insects, drought, the availability and adequacy of supply, government regulations and policies, world events, global trade disputes, and general political and economic conditions. While our revenues and operating results are derived from businesses and operations that are wholly owned and majority owned, a portion of our business operations are conducted through companies in which we hold ownership interests of 50% or less and do not control the operations. See Note 6, Investments, for more information on these entities. Reconciling Amounts represent the elimination of revenues and interest between segments. Such transactions are executed at market prices to more accurately evaluate the profitability of the individual business segments. Segment information for the three and six months ended February 28, 2019, and 2018, is presented in the tables below.
| Energy |  | Ag |  | Nitrogen Production |  | Corporate and Other |  | Reconciling Amounts |  | Total
For the Three Months Ended February 28, 2019: | (Dollars in thousands)
Revenues, including intersegment revenues | $ | 1,570,968 |  |  | $ | 4,998,137 |  |  | $ | — |  |  | $ | 16,694 |  |  | $ | (102,260 | ) |  | $ | 6,483,539 |
Operating earnings (loss) | 301,721 |  |  | (47,129 | ) |  | (9,880 | ) |  | 4,933 |  |  | — |  |  | 249,645 |
Interest expense | (1,652 | ) |  | 25,398 |  |  | 15,342 |  |  | 3,299 |  |  | (1,118 | ) |  | 41,269 |
Other (income) loss | (2,217 | ) |  | (10,257 | ) |  | (392 | ) |  | (15 | ) |  | 1,118 |  |  | (11,763 | )
Equity (income) loss from investments | (995 | ) |  | 128 |  |  | (35,542 | ) |  | (5,307 | ) |  | — |  |  | (41,716 | )
Income (loss) before income taxes | $ | 306,585 |  |  | $ | (62,398 | ) |  | $ | 10,712 |  |  | $ | 6,956 |  |  | $ | — |  |  | $ | 261,855 |
Intersegment revenues | $ | (96,191 | ) |  | $ | (3,592 | ) |  | $ | — |  |  | $ | (2,477 | ) |  | $ | 102,260 |  |  | $ | — |
| Energy |  | Ag |  | Nitrogen Production |  | Corporate and Other |  | Reconciling Amounts |  | Total
For the Three Months Ended February 28, 2018: (As Restated) | (Dollars in thousands)
Revenues, including intersegment revenues | $ | 1,771,809 |  |  | $ | 5,300,503 |  |  | $ | — |  |  | $ | 13,168 |  |  | $ | (105,327 | ) |  | $ | 6,980,153 |
Operating earnings (loss) | 25,318 |  |  | (53,125 | ) |  | (7,239 | ) |  | (6,197 | ) |  |  |  |  | (41,243 | )
(Gain) loss on disposal of business | — |  |  | (7,705 | ) |  | — |  |  | — |  |  | — |  |  | (7,705 | )
Interest expense | 2,629 |  |  | 22,784 |  |  | 12,676 |  |  | 2,665 |  |  | (578 | ) |  | 40,176 |
Other (income) loss | (1,122 | ) |  | (9,112 | ) |  | (433 | ) |  | (2,455 | ) |  | 578 |  |  | (12,544 | )
Equity (income) loss from investments | (660 | ) |  | (5,567 | ) |  | (24,012 | ) |  | (9,202 | ) |  | — |  |  | (39,441 | )
Income (loss) before income taxes | $ | 24,471 |  |  | $ | (53,525 | ) |  | $ | 4,530 |  |  | $ | 2,795 |  |  | $ | — |  |  | $ | (21,729 | )
Intersegment revenues | $ | (100,010 | ) |  | $ | (3,575 | ) |  | $ | — |  |  | $ | (1,742 | ) |  | $ | 105,327 |  |  | $ | — |
| Energy |  | Ag |  | Nitrogen Production |  | Corporate and Other |  | Reconciling Amounts |  | Total
For the Six Months Ended February 28, 2019: | (Dollars in thousands)
Revenues, including intersegment revenues | $ | 3,881,048 |  |  | $ | 11,306,851 |  |  | $ | — |  |  | $ | 35,761 |  |  | $ | (255,832 | ) |  | $ | 14,967,828 |
Operating earnings (loss) | 537,360 |  |  | 32,998 |  |  | (15,008 | ) |  | 8,793 |  |  | — |  |  | 564,143 |
(Gain) loss on disposal of business | — |  |  | (1,412 | ) |  | — |  |  | — |  |  | — |  |  | (1,412 | )
Interest expense | 2,585 |  |  | 46,398 |  |  | 29,021 |  |  | 4,062 |  |  | (1,889 | ) |  | 80,177 |
Other (income) loss | (3,203 | ) |  | (31,245 | ) |  | (1,963 | ) |  | (963 | ) |  | 1,889 |  |  | (35,485 | )
Equity (income) loss from investments | (1,068 | ) |  | 1,337 |  |  | (76,457 | ) |  | (32,036 | ) |  | — |  |  | (108,224 | )
Income (loss) before income taxes | $ | 539,046 |  |  | $ | 17,920 |  |  | $ | 34,391 |  |  | $ | 37,730 |  |  | $ | — |  |  | $ | 629,087 |
Intersegment revenues | $ | (244,983 | ) |  | $ | (6,909 | ) |  | $ | — |  |  | $ | (3,940 | ) |  | $ | 255,832 |  |  | $ | — |
Total assets at February 28, 2019 | $ | 4,349,524 |  |  | $ | 6,969,518 |  |  | $ | 2,745,652 |  |  | $ | 2,871,480 |  |  | $ | — |  |  | $ | 16,936,174 |
| Energy |  | Ag |  | Nitrogen Production |  | Corporate and Other |  | Reconciling Amounts |  | Total
For the Six Months Ended February 28, 2018: (As Restated) | (Dollars in thousands)
Revenues, including intersegment revenues | $ | 3,845,809 |  |  | $ | 11,381,530 |  |  | $ | — |  |  | $ | 31,943 |  |  | $ | (247,245 | ) |  | $ | 15,012,037 |
Operating earnings (loss) | 149,349 |  |  | 7,784 |  |  | (10,374 | ) |  | (4,069 | ) |  | — |  |  | 142,690 |
(Gain) loss on disposal of business | — |  |  | (7,705 | ) |  | — |  |  | — |  |  | — |  |  | (7,705 | )
Interest expense | 8,264 |  |  | 40,388 |  |  | 25,948 |  |  | 7,245 |  |  | (967 | ) |  | 80,878 |
Other (income) loss | (2,010 | ) |  | (32,698 | ) |  | (2,171 | ) |  | (2,827 | ) |  | 967 |  |  | (38,739 | )
Equity (income) loss from investments | (1,812 | ) |  | (13,821 | ) |  | (44,347 | ) |  | (17,823 | ) |  | — |  |  | (77,803 | )
Income (loss) before income taxes | $ | 144,907 |  |  | $ | 21,620 |  |  | $ | 10,196 |  |  | $ | 9,336 |  |  | $ | — |  |  | $ | 186,059 |
Intersegment revenues | $ | (234,864 | ) |  | $ | (7,608 | ) |  | $ | — |  |  | $ | (4,773 | ) |  | $ | 247,245 |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration