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Equities | 12 Months Ended
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Aug. 31, 2023
Equity [Abstract] |
Equities | Equities Patronage and Equity Redemptions In accordance with our bylaws and by action of the Board of Directors, annual net earnings from patronage sources are distributed to consenting patrons following the close of each fiscal year and are based on amounts using financial statement earnings. The cash portion of the qualified patronage distribution, if any, is determined annually by the Board of Directors, with the balance issued in the form of qualified and/or nonqualified capital equity certificates. Total patronage distributions for fiscal 2023 are estimated to be $1.2 billion, with the qualified cash portion estimated to be $365.0 million, estimated qualified equity distributions of $706.1 million and estimated nonqualified equity distributions of $169.2 million. The following table presents estimated patronage distributions for the year ending August 31, 2023, and actual patronage distributions for the years ended August 31, 2022, 2021 and 2020:
| 2024 |  | 2023 |  | 2022 |  | 2021
| (Dollars in millions)
Patronage distributed in cash | $ | 365.0 |  |  | $ | 503.1 |  |  | $ | 51.0 |  |  | $ | 30.0 |
Patronage distributed in equity | 875.3 |  |  | 670.9 |  |  | 235.6 |  |  | 214.8 |
Total patronage distributed | $ | 1,240.3 |  |  | $ | 1,174.0 |  |  | $ | 286.6 |  |  | $ | 244.8 |
Annual net earnings from patronage or other sources may be added to the unallocated capital reserve or, upon action by the Board of Directors, may be allocated to members in the form of nonpatronage equity certificates. The Board of Directors authorized, in accordance with our bylaws, that 10% of the earnings from patronage business for fiscal 2023, 2022 and 2021 be added to our capital reserves. Redemptions of outstanding equity are at the discretion of the Board of Directors. Redemptions of capital equity certificates approved by the Board of Directors are divided into two pools, one for nonindividuals (primarily member cooperatives) who may participate in an annual redemption program for qualified equities held by them and another for individual members who are eligible for equity redemptions at age 70 or upon death. In accordance with authorization from the Board of Directors, we expect total redemptions related to the year ended August 31, 2023, which will be distributed in fiscal 2024, to be approximately $365.0 million. This amount is classified as a current liability on our August 31, 2023, Consolidated Balance Sheet. During the years ended August 31, 2023, 2022 and 2021, we redeemed in cash, outstanding owners' equities in accordance with authorization from the Board of Directors, in the amounts of $495.8 million, $111.8 million and $79.4 million, respectively. Preferred Stock The following is a summary of our outstanding preferred stock as of August 31, 2023, all shares of which are listed and traded on the Global Select Market of The Nasdaq:
|  | Nasdaq Symbol |  | Issuance Date |  | Shares Outstanding |  | Redemption Value |  | Net Proceeds (a) |  | Dividend Rate (b) (c) |  | Dividend Payment Frequency |  | Redeemable Beginning (d)
|  |  |  |  |  |  |  | (Dollars in millions) |  |  |  |  |  |
8% Cumulative Redeemable |  | CHSCP |  | (e) |  | 12,272,003 |  |  | $ | 306.8 |  |  | $ | 311.2 |  |  | 8.00 | % |  | Quarterly |  | 7/18/2023
Class B Cumulative Redeemable, Series 1 |  | CHSCO |  | (f) |  | 21,459,066 |  |  | 536.5 |  |  | 569.3 |  |  | 7.875 | % |  | Quarterly |  | 9/26/2023
Class B Reset Rate Cumulative Redeemable, Series 2 |  | CHSCN |  | 3/11/2014 |  | 16,800,000 |  |  | 420.0 |  |  | 406.2 |  |  | 7.10 | % |  | Quarterly |  | 3/31/2024
Class B Reset Rate Cumulative Redeemable, Series 3 |  | CHSCM |  | 9/15/2014 |  | 19,700,000 |  |  | 492.5 |  |  | 476.7 |  |  | 6.75 | % |  | Quarterly |  | 9/30/2024
Class B Cumulative Redeemable, Series 4 |  | CHSCL |  | 1/21/2015 |  | 20,700,000 |  |  | 517.5 |  |  | 501.0 |  |  | 7.50 | % |  | Quarterly |  | 1/21/2025
(a) Includes patron equities redeemed with preferred stock. (b) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 accumulates dividends at a rate of 7.10% per year until March 31, 2024, and then at a rate equal to the three-month benchmark interest rate plus 4.298%, not to exceed 8.00% per annum, subsequent to March 31, 2024. (c) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulates dividends at a rate of 6.75% per year until September 30, 2024, and then at a rate equal to the three-month benchmark interest rate plus 4.155%, not to exceed 8.00% per annum, subsequent to September 30, 2024. (d) Preferred stock is redeemable for cash at our option, in whole or in part, at a per share price equal to the per share liquidation preference of $25.00 per share, plus all dividends accumulated and unpaid on that share to and including the date of redemption, beginning on the dates set forth in this column. (e) The 8% Cumulative Redeemable Preferred Stock was issued at various times from 2003 through 2010. (f) Shares of Class B Cumulative Redeemable Preferred Stock, Series 1 were issued on September 26, 2013; August 25, 2014; March 31, 2016; and March 30, 2017. Preferred Stock Dividends We made dividend payments on our preferred stock of $168.7 million during each of the years ended August 31, 2023, 2022 and 2021. As of August 31, 2023, the Board of Directors had not authorized the issuance of any preferred shares that were not outstanding. The following is a summary of dividends per share by series of preferred stock for the years ended August 31, 2023 and 2022:
|  |  | Years Ended August 31,
| Nasdaq Symbol |  | 2023 |  | 2022
|  |  | (Dollars per share)
8% Cumulative Redeemable | CHSCP |  | $ | 2.00 |  |  | $ | 2.00 |
Class B Cumulative Redeemable, Series 1 | CHSCO |  | 1.97 |  |  | 1.97 |
Class B Reset Rate Cumulative Redeemable, Series 2 | CHSCN |  | 1.78 |  |  | 1.78 |
Class B Reset Rate Cumulative Redeemable, Series 3 | CHSCM |  | 1.69 |  |  | 1.69 |
Class B Cumulative Redeemable, Series 4 | CHSCL |  | 1.88 |  |  | 1.88 |
Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component, for the years ended August 31, 2023, 2022 and 2021 are as follows:
| Pension and Other Postretirement Benefits |  | Cash Flow Hedges |  | Foreign Currency Translation Adjustment |  | Total
| (Dollars in thousands)
Balance as of August 31, 2020, net of tax | $ | (159,680) |  |  | $ | 10,886 |  |  | $ | (85,130) |  |  | $ | (233,924) |
Other comprehensive income (loss), before tax: |  |  |  |  |  |  |
Amounts before reclassifications | 4,048 |  |  | 11,700 |  |  | 5,573 |  |  | 21,321 |
Amounts reclassified out | 20,256 |  |  | (19,753) |  |  | — |  |  | 503 |
Total other comprehensive income (loss), before tax | 24,304 |  |  | (8,053) |  |  | 5,573 |  |  | 21,824 |
Tax effect | (6,009) |  |  | 1,991 |  |  | (273) |  |  | (4,291) |
Other comprehensive income (loss), net of tax | 18,295 |  |  | (6,062) |  |  | 5,300 |  |  | 17,533 |
Balance as of August 31, 2021, net of tax | (141,385) |  |  | 4,824 |  |  | (79,830) |  |  | (216,391) |
Other comprehensive income (loss), before tax: |  |  |  |  |  |  |
Amounts before reclassifications | (52,163) |  |  | (2,161) |  |  | (15,809) |  |  | (70,133) |
Amounts reclassified out | 22,240 |  |  | 7,455 |  |  | — |  |  | 29,695 |
Total other comprehensive income (loss), before tax | (29,923) |  |  | 5,294 |  |  | (15,809) |  |  | (40,438) |
Tax effect | 2,668 |  |  | (1,275) |  |  | 101 |  |  | 1,494 |
Other comprehensive income (loss), net of tax | (27,255) |  |  | 4,019 |  |  | (15,708) |  |  | (38,944) |
Balance as of August 31, 2022, net of tax | (168,640) |  |  | 8,843 |  |  | (95,538) |  |  | (255,335) |
Other comprehensive income (loss), before tax: |  |  |  |  |  |  |
Amounts before reclassifications | (13,596) |  |  | (25,024) |  |  | 1,829 |  |  | (36,791) |
Amounts reclassified out | 93 |  |  | 16,044 |  |  | — |  |  | 16,137 |
Total other comprehensive income (loss), before tax | (13,503) |  |  | (8,980) |  |  | 1,829 |  |  | (20,654) |
Tax effect | 8,218 |  |  | 2,169 |  |  | 207 |  |  | 10,594 |
Other comprehensive income (loss), net of tax | (5,285) |  |  | (6,811) |  |  | 2,036 |  |  | (10,060) |
Balance as of August 31, 2023, net of tax | $ | (173,925) |  |  | $ | 2,032 |  |  | $ | (93,502) |  |  | $ | (265,395) |
Amounts reclassified from accumulated other comprehensive income (loss) were related to pension and other postretirement benefits, cash flow hedges 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 and marketing, general and administrative expenses (see Note 13, Benefit Plans, for further information). As described in Note 15, Derivative Financial Instruments and Hedging Activities, amounts reclassified from accumulated other comprehensive loss for cash flow hedges are recorded in cost of goods sold. Gains or losses on foreign currency translation reclassifications are recorded in other income.

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