Equities

Preferred Stock

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.

In September 2014, we issued 19,700,000 shares of Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 (Class B Series 3 Preferred Stock) with a total redemption value of $492.5 million, excluding accumulated dividends. Net proceeds from the sale of our Class B Series 3 Preferred Stock, after deducting the underwriting discount and offering expenses payable by us, were approximately $476.7 million. The Class B Series 3 Preferred Stock is listed on the NASDAQ Stock Market LLC under the symbol CHSCM and accumulates dividends at a rate of 6.75% per year to, but excluding, September 30, 2024, and at a rate equal to the three-month LIBOR plus 4.155%, not to exceed 8.00% per annum thereafter, which are payable quarterly. Our Class B Series 3 Preferred Stock may be redeemed at our option beginning September 30, 2024.

In January 2015, we issued 20,700,000 shares of Class B Cumulative Redeemable Preferred Stock, Series 4 (Class B Series 4 Preferred Stock) with a total redemption value of $517.5 million, excluding accumulated dividends. Net proceeds from the sale of our Class B Series 4 Preferred Stock, after deducting the underwriting discount and offering expenses payable by us, were approximately $501.1 million. The Class B Series 4 Preferred Stock is listed on the NASDAQ Stock Market LLC under the symbol CHSCL and accumulates dividends at a rate of 7.50% per year, which are payable quarterly. Our Class B Series 4 Preferred Stock may be redeemed at our option beginning January 21, 2025.

Changes in Equities

Changes in equities for the six months ended February 28, 2015 are as follows:



	Equity Certificates											Accumulated Other Comprehensive Loss
	Capital Equity Certificates			Nonpatronage Equity Certificates			Nonqualified Equity Certificates			Preferred Stock		Accumulated Other Comprehensive Loss			Capital Reserves			Noncontrolling Interests			Total Equities
	(Dollars in thousands)
Balances, August 31, 2014	$	3,508,473		$	23,256		$	284,699		$	1,190,177	$	(156,757	)	$	1,598,660		$	18,336		$	6,466,844
Reversal of prior year patronage and redemption estimates	(282,290		)	—			(148,579		)	—		—			810,641			—			379,772
Distribution of 2014 patronage refunds	395,287			—			147,379			—		—			(818,219		)	—			(275,553		)
Redemptions of equities	(108,442		)	(79		)	(221		)	—		—			19			—			(108,723		)
Equities issued	12,365			—			—			977,398		—			—			—			989,763
Preferred stock dividends	—			—			—			—		—			(64,723		)	—			(64,723		)
Distributions to noncontrolling interests	—			—			—			—		—			—			(430		)	(430		)
Other, net	(258		)	—			(606		)	—		—			169			(6,159		)	(6,854		)
Net income	—			—			—			—		—			471,517			(289		)	471,228
Other comprehensive income (loss), net of tax	—			—			—			—		(5,638		)	—			—			(5,638		)
Estimated 2015 cash patronage refunds	—			—			—			—		—			(132,700		)	—			(132,700		)
Estimated 2015 equity redemptions	(53,000		)	—			—			—		—			—			—			(53,000		)
Balances, February 28, 2015	$	3,472,135		$	23,177		$	282,672		$	2,167,575	$	(162,395	)	$	1,865,364		$	11,458		$	7,659,986

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the six months ended February 28, 2015:



	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, 2014	$	(151,852	)	$	4,398	$	(2,722	)	$	(6,581	)	$	(156,757	)
Current period other comprehensive income (loss), net of tax	236			773		(2,658		)	(11,008		)	(12,657		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	6,770			—		249			—			7,019
Net other comprehensive income (loss), net of tax	7,006			773		(2,409		)	(11,008		)	(5,638		)
Balance as of February 28, 2015	$	(144,846	)	$	5,171	$	(5,131	)	$	(17,589	)	$	(162,395	)

Amounts reclassified from accumulated other comprehensive income (loss) were primarily related to pension and other postretirement benefits 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 9, Benefit Plans.