Benefit Plans (Tables)

12 Months Ended

Aug. 31, 2018

Schedule of defined benefit plans disclosures

Financial information on changes in benefit obligation, plan assets funded and balance sheet status as of August 31, 2018, and 2017, is as follows:



	Qualified Pension Benefits						Non-Qualified Pension Benefits						Other Benefits
	2018			2017			2018			2017			2018			2017
	(Dollars in thousands)
Change in benefit obligation:
Benefit obligation at beginning of period	$	806,174		$	812,749		$	25,599		$	32,696		$	31,836		$	36,779
Service cost	39,677			42,149			548			1,206			943			1,160
Interest cost	24,007			22,999			711			843			908			930
Actuarial (gain) loss	3,146			(10,054		)	205			(5,692		)	(623		)	(4,650		)
Assumption change	(36,515		)	(17,750		)	(783		)	(655		)	(1,612		)	(775		)
Plan amendments	244			—			—			—			—			—
Settlements	—			—			(4,824		)	(2,131		)	—			—
Benefits paid	(69,549		)	(43,919		)	(701		)	(668		)	(1,662		)	(1,608		)
Benefit obligation at end of period	$	767,184		$	806,174		$	20,755		$	25,599		$	29,790		$	31,836
Change in plan assets:
Fair value of plan assets at beginning of period	$	875,820		$	883,265		$	—		$	—		$	—		$	—
Actual gain (loss) on plan assets	23,345			36,474			—			—			—			—
Company contributions	—			—			5,525			2,799			1,662			1,608
Settlements	—			—			(4,824		)	(2,131		)	—			—
Benefits paid	(69,549		)	(43,919		)	(701		)	(668		)	(1,662		)	(1,608		)
Fair value of plan assets at end of period	$	829,616		$	875,820		$	—		$	—		$	—		$	—
Funded status at end of period	$	62,432		$	69,646		$	(20,755	)	$	(25,599	)	$	(29,790	)	$	(31,836	)
Amounts recognized on balance sheet:
Non-current assets	$	62,432		$	70,019		$	—		$	—		$	—		$	—
Accrued benefit cost:
Current liabilities	—			—			(1,780		)	(2,270		)	(2,040		)	(2,140		)
Non-current liabilities	—			(373		)	(18,975		)	(23,329		)	(27,750		)	(29,696		)
Ending balance	$	62,432		$	69,646		$	(20,755	)	$	(25,599	)	$	(29,790	)	$	(31,836	)
Amounts recognized in accumulated other comprehensive loss (pretax):
Prior service cost (credit)	$	1,288		$	2,481		$	(691	)	$	(660	)	$	(3,716	)	$	(4,281	)
Net (gain) loss	209,606			236,232			427			953			(17,875		)	(16,864		)
Ending balance	$	210,894		$	238,713		$	(264	)	$	293		$	(21,591	)	$	(21,145	)

Schedule of information for pensions plans with an accumulated benefit obligation in excess of plan assets

Information for the pension plans with an accumulated benefit obligation in excess of plan assets is set forth below:



	For the Years Ended August 31,
	2018		2017
	(Dollars in thousands)
Projected benefit obligation	$	20,755	$	28,177
Accumulated benefit obligation	18,586		23,221
Fair value of plan assets	—		2,203

Schedule of net benefit costs of assumptions used

Components of net periodic benefit costs for the years ended August 31, 2018, 2017, and 2016 are as follows:



	Qualified Pension Benefits									Non-Qualified Pension Benefits									Other Benefits
	2018			2017			2016			2018			2017			2016			2018			2017			2016
	(Dollars in thousands)
Components of net periodic benefit costs:
Service cost	$	39,677		$	42,149		$	37,533		$	548		$	1,206		$	1,035		$	943		$	1,160		$	1,412
Interest cost	24,007			22,999			30,773			711			843			1,406			908			930			1,709
Expected return on assets	(48,159		)	(48,235		)	(48,055		)	—			—			—			—			—			—
Settlement of retiree obligations	—			—			—			(112		)	(30		)	—			—			—			—
Prior service cost (credit) amortization	1,437			1,540			1,606			30			19			228			(565		)	(565		)	(120		)
Actuarial loss (gain) amortization	18,073			22,869			19,016			61			546			692			(1,224		)	(798		)	(464		)
Net periodic benefit cost	$	35,035		$	41,322		$	40,873		$	1,238		$	2,584		$	3,361		$	62		$	727		$	2,537
Weighted-average assumptions to determine the net periodic benefit cost:
Discount rate	3.80		%	3.60		%	4.20		%	3.53		%	3.28		%	4.20		%	3.56		%	3.30		%	4.20		%
Expected return on plan assets	5.75		%	5.75		%	6.00		%	N/A			N/A			N/A			N/A			N/A			N/A
Rate of compensation increase	5.08		%	5.60		%	4.90		%	5.08		%	5.60		%	4.90		%	N/A			N/A			N/A
Weighted-average assumptions to determine the benefit obligations:
Discount rate	4.23		%	3.80		%	3.60		%	4.09		%	3.53		%	3.28		%	4.13		%	3.56		%	3.30		%
Rate of compensation increase	5.14		%	5.08		%	5.60		%	5.14		%	5.08		%	5.60		%	N/A			N/A			N/A

Schedule of components of net periodic benefit costs and amounts recognized in other comprehensive income (loss)

Components of net periodic benefit costs and amounts recognized in other comprehensive income (loss) for the years ended August 31, 2018, 2017, and 2016 are as follows:



	Qualified Pension Benefits									Non-Qualified Pension Benefits									Other Benefits
	2018			2017			2016			2018			2017			2016			2018			2017			2016
	(Dollars in thousands)
Other comprehensive income (loss)
Prior service cost (credit)	$	244		$	—		$	411		$	—		$	—		$	(1,044	)	$	—		$	—		$	(4,495	)
Net actuarial loss (gain)	(8,553		)	(16,044		)	17,712			(578		)	(6,345		)	(655		)	(2,234		)	(5,427		)	(2,290		)
Amortization of actuarial loss (gain)	(18,073		)	(22,869		)	(19,016		)	(61		)	(546		)	(692		)	1,224			798			464
Amortization of prior service costs (credit)	(1,437		)	(1,540		)	(1,606		)	(30		)	(19		)	(228		)	565			565			120
Settlement of retiree obligations (a)	—			—			—			112			30			—			—			—			—
Total recognized in other comprehensive income	$	(27,819	)	$	(40,453	)	$	(2,499	)	$	(557	)	$	(6,880	)	$	(2,619	)	$	(445	)	$	(4,064	)	$	(6,201	)

(a) Reflects amounts reclassified from accumulated other comprehensive income (loss) to net earnings

Schedule of amounts in accumulated other comprehensive income (loss) to be recognized over next fiscal year

The estimated amortization in fiscal 2019 from accumulated other comprehensive loss into net periodic benefit cost is as follows:



	Qualified Pension Benefits		Non-Qualified Pension Benefits			Other Benefits
	(Dollars in thousands)
Amortization of prior service cost (credit)	$	190	$	(75	)	$	(556	)
Amortization of net actuarial (gain) loss	12,266		2			(1,629		)

Schedule of effect of one-percentage-point change in assumed health care cost trend rates

A one-percentage point change in the assumed health care cost trend rates would have the following effects:



	1% Increase		1% Decrease
	(Dollars in thousands)
Effect on total of service and interest cost components	$	230	$	(200	)
Effect on postretirement benefit obligation	2,400		(2,100		)

Schedule of expected benefit payments

Our retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows:



	Qualified Pension Benefits		Non-Qualified Pension Benefits		Other Benefits Gross
	(Dollars in thousands)
2019	$	66,528	$	1,780	$	2,040
2020	62,320		1,670		2,260
2021	61,279		1,750		2,400
2022	62,877		2,230		2,590
2023	64,573		1,840		2,720
2024-2028	328,313		9,270		12,690

Schedule of defined benefit plans, fair value disclosure

Our pension plans’ recurring fair value measurements by asset category at August 31, 2018, and 2017, are presented in the tables below:



	2018
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Cash and cash equivalents	$	7,424	$	—	$	—	$	7,424
Equities:
Mutual funds	692		—		—		692
Common/collective trust at net asset value ⁽¹⁾	—		—		—		216,962
Fixed income securities:
Common/collective trust at net asset value ⁽¹⁾	—		—		—		500,637
Partnership and joint venture interests measured at net asset value ⁽¹⁾	—		—		—		101,954
Other assets measured at net asset value ⁽¹⁾	—		—		—		1,947
Total	$	8,116	$	—	$	—	$	829,616



	2017
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Cash and cash equivalents	$	9,988	$	—	$	—	$	9,988
Equities:
Mutual funds	459		—		—		459
Common/collective trust at net asset value ⁽¹⁾	—		—		—		231,228
Fixed income securities:
Common/collective trust at net asset value ⁽¹⁾	—		—		—		535,185
Partnership and joint venture interests measured at net asset value ⁽¹⁾	—		—		—		96,994
Other assets measured at net asset value ⁽¹⁾	—		—		—		1,966
Total	$	10,447	$	—	$	—	$	875,820

(1) In accordance with ASC Topic 820-10, Fair Value Measurements, certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of net assets.

Schedule of multiemployer plans

Our participation in the Co-op Plan for the years ended August 31, 2018, 2017, and 2016 is outlined in the table below:



		Contributions of CHS
		(Dollars in thousands)
Plan Name	EIN/Plan Number	2018		2017		2016		Surcharge Imposed	Expiration Date of Collective Bargaining Agreement
Co-op Retirement Plan	01-0689331 / 001	$	1,662	$	1,653	$	1,862	N/A	N/A