Investments

3 Months Ended

Nov. 30, 2022


	November 30, 2022		August 31, 2022
	(Dollars in thousands)
Equity method investments:
CF Industries Nitrogen, LLC	$	2,769,170	$	2,641,604
Ventura Foods, LLC	427,343		410,093
Ardent Mills, LLC	255,106		250,857
TEMCO, LLC	44,091		32,809
Other equity method investments	268,731		265,913
Other investments	126,183		126,730
Total investments	$	3,890,624	$	3,728,006

Joint ventures and other investments in which we have significant ownership and influence, but not control, are accounted for in our condensed consolidated financial statements using the equity method of accounting. Our only significant equity method investment during the three months ended November 30, 2022 and 2021, was CF Industries Nitrogen, LLC ("CF Nitrogen"), which is summarized below. In addition to recognition of our share of income from equity method investments, our equity method investments are evaluated for indicators of other-than-temporary impairment on an ongoing basis in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Other investments consist primarily of investments in cooperatives without readily determinable fair values and are generally recorded at cost, unless an impairment or other observable market price change occurs requiring an adjustment. We have approximately $680.1 million of cumulative undistributed earnings from our equity method investees included in the investments balance as of November 30, 2022.

CF Nitrogen

We have a $2.8 billion investment in CF Nitrogen, a strategic venture with CF Industries Holdings, Inc. ("CF Industries"). The investment consists of an approximate 8% membership interest (based on product tons) in CF Nitrogen. We account for this investment using the hypothetical liquidation at book value method, recognizing our share of the earnings and losses of CF Nitrogen as equity income from investments in our Nitrogen Production segment based on our contractual claims on the entity's net assets pursuant to the liquidation provisions of CF Nitrogen's Limited Liability Company Agreement, adjusted for semiannual cash distributions.

The following table provides summarized unaudited financial information for our equity method investment in CF Nitrogen for the three months ended November 30, 2022 and 2021:


	Three Months Ended November 30,
	2022		2021
	(Dollars in thousands)
Net sales	$	1,623,268	$	1,316,899
Gross profit	770,478		575,571
Net earnings	764,179		562,593
Earnings attributable to CHS Inc.	127,566		116,473

Our investments in other equity method investees are not significant in relation to our condensed consolidated financial statements, either individually or in aggregate.