Fair Value Measurements (Tables)

3 Months Ended

Nov. 30, 2013

Fair Value Measurements, Recurring and Nonrecurring

Fair value measurements at November 30, 2013, August 31, 2013 and November 30, 2012 are as follows:



	November 30, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Readily marketable inventories			$	1,222,328			$	1,222,328
Commodity and freight derivatives	$	39,948	324,506				364,454
Foreign currency derivatives	4,186		2,590				6,776
Interest rate swap derivatives			18,854				18,854
Other assets	112,521						112,521
Total Assets	$	156,655	$	1,568,278			$	1,724,933
Liabilities:
Commodity and freight derivatives	$	68,362	$	336,984			$	405,346
Interest rate swap derivatives			245				245
Foreign currency derivatives	1,644		3				1,647
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests					$	150,991	150,991
Total Liabilities	$	70,006	$	337,232	$	150,991	$	558,229



	August 31, 2013
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Readily marketable inventories			$	1,203,383			$	1,203,383
Commodity and freight derivatives	$	58,441	410,233				468,674
Interest rate swap derivatives			24,139				24,139
Foreign currency derivatives	6,894		185				7,079
Other assets	114,084						114,084
Total Assets	$	179,419	$	1,637,940			$	1,817,359
Liabilities:
Commodity and freight derivatives	$	59,184	$	399,710			$	458,894
Interest rate swap derivatives			248				248
Foreign currency derivatives	5,925						5,925
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests					$	134,134	134,134
Total Liabilities	$	65,109	$	399,958	$	134,134	$	599,201



	November 30, 2012
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Readily marketable inventories			$	2,186,328			$	2,186,328
Commodity and freight derivatives	$	88,258	544,286				632,544
Foreign currency derivatives	3,140						3,140
Other assets	75,873						75,873
Total Assets	$	167,271	$	2,730,614			$	2,897,885
Liabilities:
Commodity and freight derivatives	$	58,310	$	460,067			$	518,377
Interest rate swap derivatives			483				483
Foreign currency derivatives	6,234						6,234
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests					$	170,621	170,621
Total Liabilities	$	64,544	$	460,550	$	170,621	$	695,715

Fair Value Inputs, Liabilities, Quantitative Information



Quantitative Information about Level 3 Fair Value Measurements

	Fair Value		Valuation		Range
Item	November 30, 2013		Technique	Unobservable Input	(Weighted Average)
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests	$	150,991	Adjusted Black-Scholes option pricing model	Forward crack spread margin on November 30 (a)	$16.32-$25.30 (21.10)
				Contractual target crack spread margin (b)	$17.50
				Expected volatility (c)	105.25%
				Risk-free interest rate (d)	1.80-2.60% (2.23%)
				Expected life - years (e)	0.75-3.75 (2.37)

(a) Represents forward crack spread margin quotes and management estimates based on future settlement dates

(b) Represents the minimum contractual threshold that would require settlement with the counterparties

(d) Represents yield curves for U.S. Treasury securities

(e) Represents the range in the number of years remaining related to each contingent payment

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table represents a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the three months ended November 30, 2013 and 2012, respectively:



	Level 3 Liabilities
	Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests
	2013		2012
	(Dollars in thousands)
Balances, September 1, 2013 and 2012, respectively	$	134,134	$	127,516
Total losses included in cost of goods sold	16,857		43,105
Balances, November 30, 2013 and 2012, respectively	$	150,991	$	170,621

- Definition

Tabular disclosure related to assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition. Disclosures include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3) as well as transfers between levels 1 and 2.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a,b,bb)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2C

-URI http://asc.fasb.org/extlink&oid=7578670&loc=SL7498348-110258

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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