Segment Reporting

9 Months Ended

May 31, 2014

Segment Reporting [Abstract]

Segment Reporting

        Segment Reporting

We have aligned our 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, 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 12% ownership in Ardent Mills.

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, 2014 and 2013 is as follows:

	Energy			Ag			Corporate and Other			Reconciling Amounts			Total
For the Three Months Ended May 31, 2014:	(Dollars in thousands)
Revenues	$	3,480,673		$	8,603,834		$	18,195		$	(135,304	)	$	11,967,398
Cost of goods sold	3,211,396			8,384,725			(43		)	(135,304		)	11,460,774
Gross profit	269,277			219,109			18,238			—			506,624
Marketing, general and administrative	40,197			99,942			18,720			—			158,859
Operating earnings (losses)	229,080			119,167			(482		)	—			347,765
(Gain) loss on investments	—			—			(108,792		)	—			(108,792		)
Interest, net	24,044			15,357			3,088			—			42,489
Equity (income) loss from investments	(780		)	(5,216		)	(19,526		)	—			(25,522		)
Income before income taxes	$	205,816		$	109,026		$	124,748		$	—		$	439,590
Intersegment revenues	$	(135,304	)	$	—		$	—		$	135,304		$	—

	Energy			Ag			Corporate and Other			Reconciling Amounts			Total
For the Three Months Ended May 31, 2013:	(Dollars in thousands)
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) loss on investments	—			—			(154		)	—			(154		)
Interest, net	46,058			17,434			2,902			—			66,394
Equity (income) loss 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 Nine Months Ended May 31, 2014:
Revenues	$	10,628,885		$	22,411,894		$	52,403		$	(419,389	)	$	32,673,793
Cost of goods sold	9,895,167			21,849,095			(54		)	(419,389		)	31,324,819
Gross profit	733,718			562,799			52,457			—			1,348,974
Marketing, general and administrative	114,181			282,823			50,767			—			447,771
Operating earnings (losses)	619,537			279,976			1,690			—			901,203
(Gain) loss on investments	—			116			(111,517		)	—			(111,401		)
Interest, net	55,212			39,498			7,553			—			102,263
Equity (income) loss from investments	(2,937		)	(19,906		)	(66,406		)	—			(89,249		)
Income before income taxes	$	567,262		$	260,268		$	172,060		$	—		$	999,590
Intersegment revenues	$	(419,389	)	$	—		$	—		$	419,389		$	—
Goodwill	$	1,165		$	104,507		$	6,898		$	—		$	112,570
Capital expenditures	$	367,228		$	250,423		$	38,637		$	—		$	656,288
Depreciation and amortization	$	99,577		$	85,284		$	8,300		$	—		$	193,161
Total assets at May 31, 2014	$	4,304,663		$	7,269,201		$	3,371,083		$	—		$	14,944,947
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 (losses)	831,236			243,061			848			—			1,075,145
(Gain) loss on investments	—			(45		)	(154		)	—			(199		)
Interest, net	124,229			53,472			9,288			—			186,989
Equity (income) loss 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 assets at May 31, 2013	$	4,126,022		$	7,127,300		$	1,861,284		$	—		$	13,114,606