Segment Reporting

6 Months Ended

Feb. 28, 2017

Segment Reporting [Abstract]

Segment Reporting

        Segment Reporting

We define our operating segments in accordance with ASC Topic 280, Segment Reporting, to reflect the manner in which our chief operating decision maker, our Chief Executive Officer, evaluates performance and allocates resources in managing our business. We have aggregated those operating segments into four reportable segments: Energy, Ag, Nitrogen Production and Foods.

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; serves as a wholesaler and retailer of crop inputs; and produces and markets ethanol. Our Nitrogen Production segment consists solely of our equity method investment in CF Nitrogen, which was completed in February 2016 and which entitles us, pursuant to a supply agreement that we entered into with CF Nitrogen, to purchase granular urea and UAN annually from CF Nitrogen to a specified annual quantity. The addition of our Nitrogen Production segment had no impact on historically reported segment results and balances as this segment came into existence in fiscal 2016. Our Foods segment consists solely of our equity method investment in Ventura Foods. In prior periods, Ventura Foods was reported as a component of Corporate and Other because it was an insignificant operating segment. Historically reported segment results and balances have been revised to reflect the addition of our Foods segment. There were no changes to the composition of our Energy or Ag segments as a result of the addition of our Nitrogen Production and Foods segments. Corporate and Other primarily represents our non-consolidated wheat milling operations, as well as our business solutions operations, which primarily consists of commodities hedging, insurance and financial services related to crop production.

Corporate administrative expenses and interest 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 vary throughout the year. For example, in our Ag segment, our crop nutrients and country operations businesses generally experience higher volumes and income during the spring planting season and in the fall, which corresponds to harvest. Our grain marketing operations are also subject to fluctuations in volume 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 fall 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, ethanol, 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, drought, 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. See Note 4, Investments for more information on these entities.

Reconciling Amounts represent the elimination of revenues and interest 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 six months endedFebruary 28, 2017, and February 29, 2016, is presented in the tables below.

	Energy			Ag			Nitrogen Production			Foods			Corporate and Other			Reconciling Amounts			Total
For the Three Months Ended February 28, 2017:	(Dollars in thousands)
Revenues	$	1,529,034		$	5,855,331		$	—		$	—		$	31,430		$	(95,389	)	$	7,320,406
Operating earnings (loss)	19,506			(14,291		)	(4,385		)	(2,472		)	12,149			—			10,507
(Gain) loss on investments	—			(690		)	—			—			(2,092		)	—			(2,782		)
Interest expense	3,565			16,850			12,182			—			11,411			(4,063		)	39,945
Other income	(187		)	(17,686		)	(464		)	—			(179		)	4,063			(14,453		)
Equity (income) loss from investments	(486		)	(3,455		)	(21,557		)	(5,561		)	(4,741		)	—			(35,800		)
Income (loss) before income taxes	$	16,614		$	(9,310	)	$	5,454		$	3,089		$	7,750		$	—		$	23,597
Intersegment revenues	$	(89,094	)	$	(4,758	)	$	—		$	—		$	(1,537	)	$	95,389		$	—

	Energy			Ag			Nitrogen Production			Foods			Corporate and Other			Reconciling Amounts			Total
For the Three Months Ended February 29, 2016:	(Dollars in thousands)
Revenues	$	1,134,148		$	5,580,450		$	—		$	—		$	23,201		$	(98,469	)	$	6,639,330
Operating earnings (loss)	(69,299		)	(21,818		)	(5,759		)	(2,125		)	7,198			—			(91,803		)
(Gain) loss on investments	—			(42		)	—			—			(3,008		)	—			(3,050		)
Interest expense	(4,854		)	16,485			4,737			779			7,280			609			25,036
Other income	46			(8,493		)	—			—			(267		)	(609		)	(9,323		)
Equity (income) loss from investments	(1,364		)	1,355			(11,855		)	(14,450		)	(1,690		)	—			(28,004		)
Income (loss) before income taxes	$	(63,127	)	$	(31,123	)	$	1,359		$	11,546		$	4,883		$	—		$	(76,462	)
Intersegment revenues	$	(67,208	)	$	(29,963	)	$	—		$	—		$	(1,298	)	$	98,469		$	—
	Energy			Ag			Nitrogen Production			Foods			Corporate and Other			Reconciling Amounts			Total
For the Six Months Ended February 28, 2017:	(Dollars in thousands)
Revenues	$	3,229,214		$	12,291,325		$	—		$	—		$	58,871		$	(210,754	)	$	15,368,656
Operating earnings (loss)	92,286			95,306			(8,414		)	(5,269		)	23,089			—			196,998
(Gain) loss on investments	—			6,695			—			—			(2,076		)	—			4,619
Interest expense	7,833			33,189			24,918			—			19,385			(7,115		)	78,210
Other income	(496		)	(35,609		)	(29,570		)	—			(294		)	7,115			(58,854		)
Equity (income) loss from investments	(1,648		)	(8,872		)	(36,253		)	(18,930		)	(10,425		)	—			(76,128		)
Income (loss) before income taxes	$	86,597		$	99,903		$	32,491		$	13,661		$	16,499		$	—		$	249,151
Intersegment revenues	$	(199,181	)	$	(8,523	)	$	—		$	—		$	(3,050	)	$	210,754		$	—
Total assets at February 28, 2017	$	4,388,668		$	8,093,289		$	2,809,029		$	370,089		$	2,897,090		$	—		$	18,558,165
	Energy			Ag			Nitrogen Production			Foods			Corporate and Other			Reconciling Amounts			Total
For the Six Months Ended February 29, 2016:	(Dollars in thousands)
Revenues	$	2,840,061		$	11,694,706		$	—		$	—		$	43,096		$	(209,741	)	$	14,368,122
Operating earnings (loss)	111,213			53,173			(5,759		)	(4,076		)	13,460			—			168,011
(Gain) loss on investments	—			(5,714		)	—			—			(3,008		)	—			(8,722		)
Interest expense	(16,453		)	33,267			4,737			1,601			10,935			—			34,087
Other income	43			(10,305		)	—			—			(1,119		)	—			(11,381		)
Equity (income) loss from investments	(2,187		)	(2,221		)	(11,855		)	(35,527		)	(7,576		)	—			(59,366		)
Income (loss) before income taxes	$	129,810		$	38,146		$	1,359		$	29,850		$	14,228		$	—		$	213,393
Intersegment revenues	$	(174,311	)	$	(33,016	)	$	—		$	—		$	(2,414	)	$	209,741		$	—