Segment Reporting

9 Months Ended

May 31, 2013

Segment Reporting [Abstract]

Segment Reporting

        Segment Reporting

We have aligned our business segments based on an assessment of how our businesses are operated and the products and services they sell.

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, and also serves as a wholesaler and retailer of crop inputs. Corporate and Other primarily represents the non-consolidated wheat milling and packaged food joint ventures, as well as our business solutions operations, which consist of commodities hedging, insurance and financial services related to crop production.

Corporate administrative expenses are allocated to each business segment, and Corporate and Other, based on direct usage for services that can be tracked, 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 will vary throughout the year. Historically, our income is generally lowest during the second fiscal quarter and highest during the third fiscal quarter. For example, in our Ag segment, agronomy and country operations businesses experience higher volumes and income during the spring planting season and in the fall, which corresponds to harvest. Also in our Ag segment, our grain marketing operations are subject to fluctuations in volumes 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 crop drying seasons.

Our revenues, assets and cash flows can be significantly affected by global market prices for commodities such as petroleum products, natural gas, 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, and general political and economic conditions.

While our revenues and operating results are derived from businesses and operations which 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. We account for these investments primarily using the equity method of accounting, wherein we record our proportionate share of income or loss reported by the entity as equity income from investments, without consolidating the revenues and expenses of the entity in our Consolidated Statements of Operations. In our Ag segment, this principally includes our 50% ownership in TEMCO, LLC (TEMCO). In Corporate and Other, these investments principally include our 50% ownership in Ventura Foods and our 24% ownership in Horizon Milling, LLC and Horizon Milling G.P.

Reconciling Amounts represent the elimination of revenues 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 nine months endedMay 31, 2013 and May 31, 2012 is as follows:

	Energy			Ag			Corporate and Other			Reconciling Amounts			Total
For the Three Months Ended May 31, 2013:
Revenues	$	3,205,340		$	8,831,866		$	15,411		$	(116,061	)	$	11,936,556
Cost of goods sold	2,896,061			8,700,170			(525		)	(116,061		)	11,479,645
Gross profit	309,279			131,696			15,936			—			456,911
Marketing, general and administrative	43,710			77,653			17,406						138,769
Operating earnings (losses)	265,569			54,043			(1,470		)	—			318,142
Gain on investments							(154		)				(154		)
Interest, net	46,058			17,434			2,902						66,394
Equity income from investments	(851		)	(3,365		)	(23,358		)				(27,574		)
Income before income taxes	$	220,362		$	39,974		$	19,140		$	—		$	279,476
Intersegment revenues	$	(116,061	)							$	116,061		$	—
For the Three Months Ended May 31, 2012:
Revenues	$	3,117,272		$	7,999,120		$	17,643		$	(111,080	)	$	11,022,955
Cost of goods sold	2,729,383			7,789,055			(659		)	(111,080		)	10,406,699
Gross profit	387,889			210,065			18,302			—			616,256
Marketing, general and administrative	41,439			70,208			17,577						129,224
Operating earnings	346,450			139,857			725			—			487,032
Interest, net	53,450			14,385			3,283						71,118
Equity income from investments	(1,715		)	(6,469		)	(16,620		)				(24,804		)
Income before income taxes	$	294,715		$	131,941		$	14,062		$	—		$	440,718
Intersegment revenues	$	(111,080	)							$	111,080		$	—
For the Nine Months Ended May 31, 2013:
Revenues	$	9,345,304		$	24,483,835		$	52,357		$	(352,624	)	$	33,528,872
Cost of goods sold	8,392,704			24,017,733			(2,017		)	(352,624		)	32,055,796
Gross profit	952,600			466,102			54,374			—			1,473,076
Marketing, general and administrative	121,364			223,041			53,526						397,931
Operating earnings	831,236			243,061			848			—			1,075,145
Gain on investments				(45		)	(154		)				(199		)

Interest, net	124,229			53,472			9,288						186,989
Equity income from investments	(580		)	(13,104		)	(58,722		)				(72,406		)
Income before income taxes	$	707,587		$	202,738		$	50,436		$	—		$	960,761
Intersegment revenues	$	(352,624	)							$	352,624		$	—
Goodwill	$	1,165		$	76,103		$	6,898					$	84,166
Capital expenditures	$	290,091		$	131,794		$	5,185					$	427,070
Depreciation and amortization	$	86,454		$	77,587		$	12,798					$	176,839
Total identifiable assets at May 31, 2013	$	4,121,695		$	6,913,509		$	1,842,605					$	12,877,809
For the Nine Months Ended May 31, 2012:
Revenues	$	9,433,098		$	20,457,343		$	50,793		$	(340,308	)	$	29,600,926
Cost of goods sold	8,516,284			19,939,254			(2,144		)	(340,308		)	28,113,086
Gross profit	916,814			518,089			52,937			—			1,487,840
Marketing, general and administrative	112,610			203,739			51,951						368,300
Operating earnings	804,204			314,350			986			—			1,119,540
Loss on investments				446									446
Interest, net	75,755			41,136			9,665						126,556
Equity income from investments	(5,658		)	(16,719		)	(46,508		)				(68,885		)
Income before income taxes	$	734,107		$	289,487		$	37,829		$	—		$	1,061,423
Intersegment revenues	$	(340,308	)							$	340,308		$	—
Goodwill	$	1,165		$	58,758		$	6,898					$	66,821
Capital expenditures	$	198,158		$	113,493		$	3,964					$	315,615
Depreciation and amortization	$	80,622		$	66,845		$	14,153					$	161,620
Total identifiable assets at May 31, 2012	$	3,944,347		$	5,865,709		$	1,663,298					$	11,473,354