Summary of Significant Accounting Policies (Policies)

9 Months Ended

May 31, 2013

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

The consolidated financial statements include our accounts and the accounts of all of our wholly-owned and majority-owned subsidiaries and limited liability companies, which is primarily National Cooperative Refinery Association (NCRA), included in our Energy segment. The effects of all significant intercompany accounts and transactions have been eliminated.

Derivative Financial Instruments and Hedging Activities

Derivative Financial Instruments and Hedging Activities

Our derivative instruments primarily consist of commodity and freight futures and forward contracts and, to a lesser degree, may include foreign currency and interest rate swap contracts. These contracts are economic hedges of price risk, but are not designated or accounted for as hedging instruments for accounting purposes, with the exception of certain interest rate swap contracts which are economic hedges of forecasted debt issuances and are accounted for as cash flow hedges. Derivative instruments are recorded on our Consolidated Balance Sheets at fair values as discussed in Note 9, Fair Value Measurements.

We have netting arrangements for our exchange-traded futures and options contracts and certain over-the-counter (OTC) contracts, which are recorded on a net basis in our Consolidated Balance Sheets. Although accounting standards permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or the obligation to return cash collateral under the same master netting arrangement, we have not elected to net our margin deposits.

As of May 31, 2013, August 31, 2012 and May 31, 2012, we had the following outstanding purchase and sales contracts:

	May 31, 2013		August 31, 2012		May 31, 2012
	Purchase Contracts	Sales Contracts	Purchase Contracts	Sales Contracts	Purchase Contracts	Sales Contracts
	(Units in thousands)
Grain and oilseed - bushels	519,293	806,244	722,895	1,074,535	590,021	843,934
Energy products - barrels	13,833	20,125	9,047	19,561	9,271	14,012
Soy products - tons	70	325	15	215	10	250
Crop nutrients - tons	675	778	600	725	699	894
Ocean and barge freight - metric tons	888	130	1,018	183	1,215	234

As of May 31, 2013, August 31, 2012 and May 31, 2012, the gross fair values of our derivative assets and liabilities not designated as hedging instruments were as follows:

	May 31, 2013		August 31, 2012		May 31, 2012
Derivative Assets:
Commodity and freight derivatives	$	510,258	$	1,070,800	$	686,042
Foreign exchange derivatives	5,043		978		3,843
	$	515,301	$	1,071,778	$	689,885
Derivative Liabilities:
Commodity and freight derivatives	$	452,289	$	727,946	$	623,911
Foreign exchange derivatives	3,883		2,388		3,379
Interest rate derivatives	304		544		535
	$	456,476	$	730,878	$	627,825

As of May 31, 2013, August 31, 2012 and May 31, 2012, the gross fair values of our derivative assets and liabilities designated as cash flow hedging instruments were as follows:

	May 31, 2013		August 31, 2012	May 31, 2012
Derivative Assets:
Interest rate swaps	$	9,160

During the second quarter of fiscal 2013, we entered into derivative contracts designated as cash flow hedging instruments that expire in fiscal 2014 with $0.1 million expected to be included in earnings during the next 12 months. As of May 31, 2013, August 31, 2012 and May 31, 2012, the unrealized gains deferred to accumulated other comprehensive loss were as follows:

	May 31, 2013		August 31, 2012	May 31, 2012
Gains included in accumulated other comprehensive loss, net of tax expense of $3.5 million	$	5,666

The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Consolidated Statements of Operations for the three and nine months endedMay 31, 2013 and 2012.

		For the Three Months Ended May 31,					For the Nine Months Ended May 31,
	Location of Gain (Loss)	2013			2012		2013			2012
Commodity and freight derivatives	Cost of goods sold	$	(22,457	)	$	149,464	$	(452,747	)	$	(125,437	)
Foreign exchange derivatives	Cost of goods sold	(13,648		)	950		2,570			(3,434		)
Interest rate derivatives	Interest, net	114			36		240			36
		$	(35,991	)	$	150,450	$	(449,937	)	$	(128,835	)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill was $84.2 million, $81.7 million and $66.8 million on May 31, 2013, August 31, 2012 and May 31, 2012, respectively, and is included in other assets in our Consolidated Balance Sheets. Goodwill acquired during the first nine months of fiscal 2012 totaled $40.8 million, primarily related to our acquisition of Solbar Industries Ltd., an Israeli company (Solbar).

Intangible assets subject to amortization primarily include customer lists, trademarks and agreements not to compete, and are amortized over their respective useful lives (ranging from 2 to 30 years). Excluding goodwill, the gross carrying amount of our intangible assets was $82.1 million, $100.6 million and $99.5 million on May 31, 2013, August 31, 2012 and May 31, 2012, respectively. Accumulated amortization was $42.2 million, $55.7 million and $51.6 million as of May 31, 2013, August 31, 2012 and May 31, 2012, respectively. Intangible assets acquired were $2.4 million during the nine months endedMay 31, 2013. Intangible assets of $24.1 million were acquired during the nine months endedMay 31, 2012, primarily related to the acquisition of Solbar. Total amortization expense for intangible assets during the nine months endedMay 31, 2013 and May 31, 2012, was $7.4 million and $9.2 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows:

Year 1	$	10,009
Year 2	6,633
Year 3	5,964
Year 4	5,041
Year 5	3,193
Thereafter	9,018
	$	39,858

In our Energy segment, major maintenance activities (turnarounds) at our two refineries are accounted for under the deferral method. Turnarounds are the scheduled and required shutdowns of refinery processing units. The costs related to the significant overhaul and refurbishment activities include materials and direct labor costs. The costs of turnarounds are deferred when incurred and amortized on a straight-line basis over the period of time estimated to lapse until the next turnaround occurs, which is generally 2 to 4 years. The amortization expense related to turnaround costs are included in cost of goods sold in our Consolidated Statements of Operations. The selection of the deferral method, as opposed to expensing the turnaround costs when incurred, results in deferring recognition of the turnaround expenditures. The deferral method also results in the classification of the related cash outflows as investing activities in our Consolidated Statements of Cash Flows, whereas expensing these costs as incurred, would result in classifying the cash outflows as operating activities.

For the nine months endedMay 31, 2013 and May 31, 2012, major repairs turnaround expenditures were $53.8 million and $20.9 million, respectively. During the third quarter of fiscal 2013 and the first quarter of fiscal 2012 our Laurel, Montana refinery completed turnarounds.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In December 2011, the FASB issued ASU No. 2011-11, "Disclosures about Offsetting Assets and Liabilities." ASU No. 2011-11 creates new disclosure requirements about the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. The disclosure requirements in this update are effective for annual reporting periods, and interim periods within those years, beginning on or after January 1, 2013. We are currently evaluating the impact that the adoption will have on our consolidated financial statements in fiscal 2014.

In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income." ASU No. 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either in the consolidated statements of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required that provide additional detail about those amounts. These amendments are only disclosure related and will not have an impact on our financial position, results of operations, comprehensive income or cash flows. ASU No. 2013-02 will become effective for us in fiscal 2014.

In February 2013, the FASB issued ASU No. 2013-04, "Liabilities." ASU No. 2013-04 requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We are currently evaluating the impact that the adoption will have on our consolidated financial statements in fiscal 2015.

In March 2013, the FASB issued ASU No. 2013-05, "Foreign Currency Matters." The amendments in this ASU clarify the applicable guidance for the release of the cumulative translation adjustment under current accounting standards. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We are currently evaluating the impact that the adoption will have on our consolidated financial statements in fiscal 2015.