Equities

Preferred Stock

In September 2013, we issued 11,319,175 shares of Class B Cumulative Redeemable Preferred Stock, Series 1 (Class B Series 1 Preferred Stock), with a total redemption value of $283.0 million, excluding accumulated dividends. Net proceeds from the sale of our Class B Series 1 Preferred Stock, after deducting the underwriting discount and offering expenses payable by us, were $273.3 million. The Class B Series 1 Preferred Stock is listed on the NASDAQ under the symbol CHSCO and accumulates dividends at a rate of 7.875% per year, which are payable quarterly. Our Class B Series 1 Preferred Stock may not be redeemed at our option until September 26, 2023.

In March 2014, we issued 16,800,000 shares of Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 (Class B Series 2 Preferred Stock), with a total redemption value of $420.0 million, excluding accumulated dividends. Net proceeds from the sale of our Class B Series 2 Preferred Stock, after deducting the underwriting discount and offering expenses payable by us, were $406.3 million. The Class B Series 2 Preferred Stock is listed on the NASDAQ under the symbol CHSCN and accumulates dividends at a rate of 7.10% per year until March 31, 2024, and at a rate equal to the three-month LIBOR plus 4.298%, not to exceed 8.00% per annum, subsequent to March 31, 2024, which are payable quarterly. Our Class B Series 2 Preferred Stock may not be redeemed at our option until March 31, 2024.

In June 2014, we filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC). Under the shelf registration, which has been declared effective by the SEC, we may offer and sell, from time to time, up to $2.0 billion of our Class B cumulative redeemable preferred stock over a three-year period.

Changes in Equities

Changes in equities for the nine months ended May 31, 2014 and 2013 are as follows:



	For the Nine Months Ended
	May 31, 2014			May 31, 2013
	(Dollars in thousands)
CHS Inc. balances, September 1, 2013 and 2012	$	5,131,208		$	4,455,341
Net income attributable to CHS Inc.	881,710			869,589
Other comprehensive (loss) income	(2,368		)	5,852
Patronage distribution	(837,306		)	(975,998		)
Patronage accrued	841,386			969,862
Equities retired	(87,666		)	(184,955		)
Equity retirements accrued	87,666			184,955
Equities issued in business combinations	45			18,211
Preferred stock issuance, net of expenses	679,845			—
Preferred stock dividends	(40,366		)	(18,408		)
Estimated current year patronage	(347,000		)	(347,491		)
Other, net	(8,844		)	8,008
CHS Inc. balances, May 31, 2014 and 2013	$	6,298,310		$	4,984,966

Noncontrolling interests balances, September 1, 2013 and 2012	$	21,539		$	17,982
Net income attributable to noncontrolling interests	1,812			4,139
Distributions to noncontrolling interests	(575		)	(1,235		)
Deconsolidation of a subsidiary	(4,779		)	—
Other	584			1,001
Noncontrolling interests balances, May 31, 2014 and 2013	$	18,581		$	21,887

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the nine months ended May 31, 2014:



	Pension and Other Postretirement Benefits			Unrealized Net Gain on Available for Sale Investments		Cash Flow Hedges			Foreign Currency Translation Adjustment			Total
	(Dollars in thousands)
Balance as of August 31, 2013	$	(165,611	)	$	2,370	$	11,685		$	(5,311	)	$	(156,867	)
Current period other comprehensive income (loss), net of tax	772			1,520		(6,139		)	(1,520		)	(5,367		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	10,708			—		(8,396		)	687			2,999
Net other comprehensive income (loss), net of tax	11,480			1,520		(14,535		)	(833		)	(2,368		)
Balance as of May 31, 2014	$	(154,131	)	$	3,890	$	(2,850	)	$	(6,144	)	$	(159,235	)

Amounts reclassified from accumulated other comprehensive income (loss) were related to pension and other postretirement benefits, cash flow hedges and foreign currency translation adjustments, and were recorded to net income. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts as disclosed in Note 7, Benefit Plans. In February 2014, interest rate swaps, which were previously accounted for as cash flow hedges, were terminated as the issuance of the underlying debt was no longer probable. As a result, a $13.5 million gain was reclassified from accumulated other comprehensive loss into net income. This pre-tax gain is included as a component of interest, net in the Consolidated Statements of Operations for the nine months ended May 31, 2014.