Fair Value Measurements (Tables)

6 Months Ended

Feb. 28, 2015

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]



	February 28, 2015
	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	$	—	$	1,246,484	$	—	$	1,246,484
Commodity and freight derivatives	126,415		469,579		—		595,994
Foreign currency derivatives	5,620		—		—		5,620
Interest rate swap derivatives	—		12,390		—		12,390
Deferred compensation assets	84,479		—		—		84,479
Other assets	11,013		—		—		11,013
Total	$	227,527	$	1,728,453	$	—	$	1,955,980
Liabilities:
Commodity and freight derivatives	$	157,780	$	307,205	$	—	$	464,985
Interest rate swap derivatives	—		4,390		—		4,390
Foreign currency derivatives	13,215		—		—		13,215
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests	—		—		121,070		121,070
Total	$	170,995	$	311,595	$	121,070	$	603,660



	August 31, 2014
	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	$	—	$	921,554	$	—	$	921,554
Commodity and freight derivatives	78,590		518,620		—		597,210
Interest rate swap derivatives	—		4,200		—		4,200
Foreign currency derivatives	2,523		—		—		2,523
Deferred compensation assets	83,217		—		—		83,217
Other assets	8,778		—		—		8,778
Total	$	173,108	$	1,444,374	$	—	$	1,617,482
Liabilities:
Commodity and freight derivatives	$	117,690	$	479,922	$	—	$	597,612
Interest rate swap derivatives	—		130		—		130
Foreign currency derivatives	2,248		—		—		2,248
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests	—		—		114,917		114,917
Total	$	119,938	$	480,052	$	114,917	$	714,907

Fair Value Inputs, Liabilities, Quantitative Information



Quantitative Information about Level 3 Fair Value Measurements
	Fair Value			Range
Item	February 28, 2015 (Dollars in thousands)	Valuation Technique	Unobservable Input	(Weighted Average)
Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests	$121,070	Adjusted Black-Scholes option pricing model	Forward crack spread margin on February 28, 2015 ^(a)	$20.78-$21.79 ($21.55)
			Contractual target crack spread margin ^(b)	$17.50
			Expected volatility ^(c)	165.25%
			Risk-free interest rate ^(d)	0.09%-0.94% (0.53%)
			Expected life - years ^(e)	0.50-2.50 (1.57)

^(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

^(c) Represents quarterly adjusted volatility estimates derived from daily historical market data

^(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 February 28, 2015 and 2014, respectively:



	Level 3 Liabilities
	Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests
	2015		2014
	(Dollars in thousands)
Balances, November 30, 2014 and 2013, respectively	$	86,520	$	150,991
Total (gains) losses included in cost of goods sold	34,550		(10,360		)
Balances, February 28, 2015 and 2014, respectively	$	121,070	$	140,631

The following table represents a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the six months ended February 28, 2015 and 2014, respectively:



	Level 3 Liabilities
	Accrued liability for contingent crack spread payments related to purchase of noncontrolling interests
	2015		2014
	(Dollars in thousands)
Balances, August 31, 2014 and 2013, respectively	$	114,917	$	134,134
Total (gains) losses included in cost of goods sold	6,153		6,497
Balances, February 28, 2015 and 2014, respectively	$	121,070	$	140,631

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- 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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