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 three reportable segments: Energy, Ag and Nitrogen Production.

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 entitles us, pursuant to a supply agreement that we entered into with CF Nitrogen, to purchase up to a specified annual quantity of granular urea and urea ammonium nitrate annually from CF Nitrogen. Insignificant operating segments have been aggregated within Corporate and Other.

Corporate administrative expenses and interest are allocated to each business segment, and Corporate and Other, based on direct usage for services, 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 agronomy 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 trade and associated 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, global trade disputes, and general political and economic conditions.

While our revenues and operating results are derived from businesses and operations that 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 6, 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 nine months ended May 31, 2019, and 2018, is presented in the tables below. Note that the fiscal 2019 results for our Ag segment include results associated with our acquisition of the remaining 75% ownership interest in WCD on March 1, 2019, which are not included in our prior period results. Refer to further details related to our acquisition of the remaining 75% ownership interest in WCD within Note 16, Acquisitions.



	Energy			Ag			Nitrogen Production			Corporate and Other			Reconciling Amounts			Total
For the Three Months Ended May 31, 2019:	(Dollars in thousands)
Revenues, including intersegment revenues	$	1,841,290		$	6,749,182		$	—		$	16,418		$	(108,949	)	$	8,497,941
Operating earnings (loss)	572			12,090			(9,040		)	2,622			—			6,244
(Gain) loss on disposal of business	—			(2,474		)	—			—			—			(2,474		)
Interest expense	1,171			26,675			13,140			3,883			(2,096		)	42,773
Other (income) loss	(1,098		)	(29,211		)	(399		)	(1,852		)	2,096			(30,464		)
Equity (income) loss from investments	(760		)	(4,012		)	(41,959		)	(18,439		)	—			(65,170		)
Income (loss) before income taxes	$	1,259		$	21,112		$	20,178		$	19,030		$	—		$	61,579
Intersegment revenues	$	(103,245	)	$	(4,067	)	$	—		$	(1,637	)	$	108,949		$	—



	Energy			Ag			Nitrogen Production			Corporate and Other			Reconciling Amounts			Total
For the Three Months Ended May 31, 2018: (As Restated)	(Dollars in thousands)
Revenues, including intersegment revenues	$	1,999,628		$	7,193,316		$	—		$	14,075		$	(119,691	)	$	9,087,328
Operating earnings (loss)	29,729			63,170			(4,153		)	(1,727		)				87,019
(Gain) loss on disposal of business	(65,903		)	5			—			(58,152		)	—			(124,050		)
Interest expense	3,496			28,854			13,119			4,324			(453		)	49,340
Other (income) loss	(967		)	(14,430		)	(441		)	(417		)	453			(15,802		)
Equity (income) loss from investments	(967		)	(11,359		)	(35,639		)	(11,343		)	—			(59,308		)
Income (loss) before income taxes	$	94,070		$	60,100		$	18,808		$	63,861		$	—		$	236,839
Intersegment revenues	$	(114,497	)	$	(3,784	)	$	—		$	(1,410	)	$	119,691		$	—



	Energy			Ag			Nitrogen Production			Corporate and Other			Reconciling Amounts			Total
For the Nine Months Ended May 31, 2019:	(Dollars in thousands)
Revenues, including intersegment revenues	$	5,722,338		$	18,056,033		$	—		$	52,179		$	(364,781	)	$	23,465,769
Operating earnings (loss)	537,932			45,088			(24,048		)	11,415			—			570,387
(Gain) loss on disposal of business	—			(3,886		)	—			—			—			(3,886		)
Interest expense	3,756			73,073			42,161			7,945			(3,985		)	122,950
Other (income) loss	(4,301		)	(60,455		)	(2,362		)	(2,816		)	3,985			(65,949		)
Equity (income) loss from investments	(1,828		)	(2,675		)	(118,416		)	(50,475		)	—			(173,394		)
Income (loss) before income taxes	$	540,305		$	39,031		$	54,569		$	56,761		$	—		$	690,666
Intersegment revenues	$	(348,228	)	$	(10,976	)	$	—		$	(5,577	)	$	364,781		$	—
Total assets at May 31, 2019	$	4,573,463		$	7,377,779		$	2,788,010		$	2,834,231		$	—		$	17,573,483

	Energy			Ag			Nitrogen Production			Corporate and Other			Reconciling Amounts			Total
For the Nine Months Ended May 31, 2018: (As Restated)	(Dollars in thousands)
Revenues, including intersegment revenues	$	5,845,437		$	18,574,846		$	—		$	46,018		$	(366,936	)	$	24,099,365
Operating earnings (loss)	179,077			70,954			(14,527		)	(5,796		)	—			229,708
(Gain) loss on disposal of business	(65,903		)	(7,700		)	—			(58,152		)	—			(131,755		)
Interest expense	11,760			69,242			39,067			11,569			(1,420		)	130,218
Other (income) loss	(2,977		)	(47,128		)	(2,612		)	(3,245		)	1,420			(54,542		)
Equity (income) loss from investments	(2,779		)	(25,180		)	(79,986		)	(29,166		)	—			(137,111		)
Income (loss) before income taxes	$	238,976		$	81,720		$	29,004		$	73,198		$	—		$	422,898
Intersegment revenues	$	(349,361	)	$	(11,391	)	$	—		$	(6,184	)	$	366,936		$	—