Equities

Changes in Equities

Changes in equities for the three and six months ended February 29, 2020, and February 28, 2019, are as follows:



	Equity Certificates											Accumulated Other Comprehensive Loss
	Capital Equity Certificates			Nonpatronage Equity Certificates			Nonqualified Equity Certificates			Preferred Stock		Accumulated Other Comprehensive Loss			Capital Reserves			Noncontrolling Interests			Total Equities
	(Dollars in thousands)
Balances, August 31, 2019	$	3,753,493		$	29,074		$	1,206,310		$	2,264,038	$	(226,933	)	$	1,584,158		$	7,390		$	8,617,530
Reversal of prior year redemption estimates	5,447			—			—			—		—			—			—			5,447
Redemptions of equities	(4,721		)	(54		)	(672		)	—		—			—			—			(5,447		)
Preferred stock dividends	—			—			—			—		—			(84,334		)	—			(84,334		)
ASC Topic 842 cumulative-effect adjustment	—			—			—			—		—			33,707			—			33,707
Other, net	(8		)	—			(39		)	—		—			(1,312		)	410			(949		)
Net income	—			—			—			—		—			177,882			855			178,737
Other comprehensive loss, net of tax	—			—			—			—		(1,638		)	—			—			(1,638		)
Estimated 2020 cash patronage refunds	—			—			—			—		—			(28,504		)	—			(28,504		)
Estimated 2020 equity redemptions	(91,633		)	—			—			—		—			—			—			(91,633		)
Balances, November 30, 2019	$	3,662,578		$	29,020		$	1,205,599		$	2,264,038	$	(228,571	)	$	1,681,597		$	8,655		$	8,622,916
Reversal of prior year patronage and redemption estimates	3,387			—			(472,398		)	—		—			562,398			—			93,387
Distribution of 2019 patronage refunds	—			—			474,066			—		—			(564,096		)	—			(90,030		)
Redemptions of equities	(2,998		)	(20		)	(369		)	—		—			—			—			(3,387		)
Preferred stock dividends	—			—			—			—		—			(42,167		)	—			(42,167		)
Other, net	(201		)	—			3			—		—			10			(324		)	(512		)
Net income	—			—			—			—		—			125,447			247			125,694
Other comprehensive loss, net of tax	—			—			—			—		(10,585		)	—			—			(10,585		)
Estimated 2020 cash patronage refunds	—			—			—			—		—			(22,206		)	—			(22,206		)
Estimated 2020 equity redemptions	(49,154		)	—			—			—		—			—			—			(49,154		)
Balances, February 29, 2020	$	3,613,612		$	29,000		$	1,206,901		$	2,264,038	$	(239,156	)	$	1,740,983		$	8,578		$	8,623,956



	Equity Certificates											Accumulated Other Comprehensive Loss
	Capital Equity Certificates			Nonpatronage Equity Certificates			Nonqualified Equity Certificates			Preferred Stock		Accumulated Other Comprehensive Loss			Capital Reserves			Noncontrolling Interests			Total Equities
	(Dollars in thousands)
Balances, August 31, 2018	$	3,837,580		$	29,498		$	742,378		$	2,264,038	$	(199,915	)	$	1,482,003		$	9,446		$	8,165,028
Reversal of prior year redemption estimates	24,072			—			—			—		—			—			—			24,072
Redemptions of equities	(22,004		)	(183		)	(1,885		)	—		—			—			—			(24,072		)
Preferred stock dividends	—			—			—			—		—			(84,334		)	—			(84,334		)
Reclassification of unrealized (gain) loss on investments	—			—			—			—		(4,706		)	4,706			—			—
Other, net	(409		)	—			(26		)	—		—			3,436			318			3,319
Net income (loss)	—			—			—			—		—			347,504			(389		)	347,115
Other comprehensive income, net of tax	—			—			—			—		389			—			—			389
Estimated 2019 cash patronage refunds	—			—			—			—		—			(89,344		)	—			(89,344		)
Estimated 2019 equity redemptions	(50,081		)	—			—			—		—			—			—			(50,081		)
Balances, November 30, 2018	$	3,789,158		$	29,315		$	740,467		$	2,264,038	$	(204,232	)	$	1,663,971		$	9,375		$	8,292,092
Reversal of prior year patronage and redemption estimates	6,681			—			(345,330		)	—		—			420,330			—			81,681
Distribution of 2018 patronage refunds	—			—			349,353			—		—			(424,333		)	—			(74,980		)
Redemptions of equities	(5,988		)	(74		)	(619		)	—		—			—			—			(6,681		)
Preferred stock dividends	—			—			—			—		—			(42,167		)	—			(42,167		)
Other, net	(774		)	—			2,589			—		—			(2,888		)	(581		)	(1,654		)
Net income (loss)	—			—			—			—		—			248,766			(462		)	248,304
Other comprehensive income, net of tax	—			—			—			—		14,884			—			—			14,884
Estimated 2019 cash patronage refunds	—			—			—			—		—			(69,400		)	—			(69,400		)
Estimated 2019 equity redemptions	(39,850		)	—			—			—		—			—			—			(39,850		)
Balances, February 28, 2019	$	3,749,227		$	29,241		$	746,460		$	2,264,038	$	(189,348	)	$	1,794,279		$	8,332		$	8,402,229

Preferred Stock Dividends

The following is a summary of dividends per share by class of preferred stock for the three and six months ended February 29, 2020, and February 28, 2019.



		Three Months Ended				Six Months Ended
	Nasdaq symbol	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Class of preferred stock:		(Dollars per share)
8% Cumulative Redeemable	CHSCP	$	0.50	$	0.50	$	1.50	$	1.50
Class B Cumulative Redeemable, Series 1	CHSCO	0.49		0.49		1.48		1.48
Class B Reset Rate Cumulative Redeemable, Series 2	CHSCN	0.44		0.44		1.33		1.33
Class B Reset Rate Cumulative Redeemable, Series 3	CHSCM	0.42		0.42		1.27		1.27
Class B Cumulative Redeemable, Series 4	CHSCL	0.47		0.47		1.41		1.41

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the three and six months ended February 29, 2020, and February 28, 2019:



	Pension and Other Postretirement Benefits			Cash Flow Hedges			Foreign Currency Translation Adjustment			Total
	(Dollars in thousands)
Balance as of August 31, 2019, net of tax	$	(172,478	)	$	15,297		$	(69,752	)	$	(226,933	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	(85		)	(3,331		)	(2,411		)	(5,827		)
Amounts reclassified out	4,977			(4,473		)	—			504
Total other comprehensive income (loss), before tax	4,892			(7,804		)	(2,411		)	(5,323		)
Tax effect	181			1,932			1,572			3,685
Other comprehensive income (loss), net of tax	5,073			(5,872		)	(839		)	(1,638		)
Balance as of November 30, 2019, net of tax	$	(167,405	)	$	9,425		$	(70,591	)	$	(228,571	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	—			(5,975		)	(8,540		)	(14,515		)
Amounts reclassified out	4,977			(1,747		)	—			3,230
Total other comprehensive income (loss), before tax	4,977			(7,722		)	(8,540		)	(11,285		)
Tax effect	(1,231		)	1,910			21			700
Other comprehensive income (loss), net of tax	3,746			(5,812		)	(8,519		)	(10,585		)
Balance as of February 29, 2020, net of tax	$	(163,659	)	$	3,613		$	(79,110	)	$	(239,156	)



	Pension and Other Postretirement Benefits			Unrealized Net Gain on Available for Sale Investments			Cash Flow Hedges			Foreign Currency Translation Adjustment			Total
	(Dollars in thousands)
Balance as of August 31, 2018, net of tax	$	(140,335	)	$	8,861		$	(5,882	)	$	(62,559	)	$	(199,915	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	175			—			(317		)	(25		)	(167		)
Amounts reclassified out	2,565			—			(1,475		)	—			1,090
Total other comprehensive income (loss), before tax	2,740			—			(1,792		)	(25		)	923
Tax effect	(639		)	—			485			(380		)	(534		)
Other comprehensive income (loss), net of tax	2,101			—			(1,307		)	(405		)	389
Reclassifications	416			(8,861		)	983			2,756			(4,706		)
Balance as of November 30, 2018, net of tax	$	(137,818	)	$	—		$	(6,206	)	$	(60,208	)	$	(204,232	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	102			—			18,954			3,176			22,232
Amounts reclassified out	2,564			—			(5,677		)	—			(3,113		)
Total other comprehensive income (loss), before tax	2,666			—			13,277			3,176			19,119
Tax effect	(664		)	—			(3,308		)	(263		)	(4,235		)
Other comprehensive income (loss), net of tax	2,002			—			9,969			2,913			14,884
Balance as of February 28, 2019, net of tax	$	(135,816	)	$	—		$	3,763		$	(57,295	)	$	(189,348	)

Amounts reclassified from accumulated other comprehensive income (loss) were related to pension and other postretirement benefits, cash flow hedges, available-for-sale investments and foreign currency translation adjustments. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts and are recorded as cost of goods sold, marketing, general and administrative expenses and other income (see Note 8, Benefit Plans, for further information). Gains or losses associated with cash flow hedges are recorded as cost of goods sold (see Note 11, Derivative Financial Instruments and Hedging Activities, for further information). Gains or losses on the sale of available-for-sale investments and foreign currency translation reclassifications related to sales of businesses are recorded as other income.