Benefit Plans (Tables)

12 Months Ended

Aug. 31, 2019

Schedule of defined benefit plans disclosures

Financial information on changes in projected benefit obligation, plan assets funded and balance sheet status as of August 31, 2019 and 2018, is as follows:



	Qualified Pension Benefits						Non-Qualified Pension Benefits						Other Benefits
	2019			2018			2019			2018			2019			2018
	(Dollars in thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of period	$	767,184		$	806,174		$	20,755		$	25,599		$	29,790		$	31,836
Service cost	38,592			39,677			311			548			1,053			943
Interest cost	28,396			24,007			747			711			1,094			908
Actuarial (gain) loss	(9,606		)	3,146			76			205			(2,596		)	(623		)
Assumption change	102,441			(36,515		)	1,841			(783		)	3,398			(1,612		)
Plan amendments	18			244			—			—			—			—
Settlements	(615		)	—			(3,975		)	(4,824		)	—			—
Benefits paid	(49,714		)	(69,549		)	(708		)	(701		)	(1,641		)	(1,662		)
Projected benefit obligation at end of period	$	876,696		$	767,184		$	19,047		$	20,755		$	31,098		$	29,790
Change in plan assets:
Fair value of plan assets at beginning of period	$	829,616		$	875,820		$	—		$	—		$	—		$	—
Actual gain (loss) on plan assets	90,139			23,345			—			—			—			—
Company contributions	40,001			—			4,683			5,525			1,641			1,662
Settlements	(615		)	—			(3,975		)	(4,824		)	—			—
Benefits paid	(49,714		)	(69,549		)	(708		)	(701		)	(1,641		)	(1,662		)
Fair value of plan assets at end of period	$	909,427		$	829,616		$	—		$	—		$	—		$	—
Funded status at end of period	$	32,731		$	62,432		$	(19,047	)	$	(20,755	)	$	(31,098	)	$	(29,790	)
Amounts recognized on balance sheet:
Non-current assets	$	32,731		$	62,432		$	—		$	—		$	—		$	—
Accrued benefit cost:
Current liabilities	—			—			(1,580		)	(1,780		)	(2,040		)	(2,040		)
Non-current liabilities	—			—			(17,467		)	(18,975		)	(29,058		)	(27,750		)
Ending balance	$	32,731		$	62,432		$	(19,047	)	$	(20,755	)	$	(31,098	)	$	(29,790	)
Amounts recognized in accumulated other comprehensive loss (pretax):
Prior service cost (credit)	$	1,117		$	1,288		$	(616	)	$	(691	)	$	(3,160	)	$	(3,716	)
Net (gain) loss	244,164			209,606			2,151			427			(15,445		)	(17,875		)
Ending balance	$	245,281		$	210,894		$	1,535		$	(264	)	$	(18,605	)	$	(21,591	)

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,
	2019		2018
	(Dollars in thousands)
Projected benefit obligation	$	19,047	$	20,755
Accumulated benefit obligation	16,907		18,586

Schedule of net benefit costs of assumptions used

Components of net periodic benefit costs for the years ended August 31, 2019, 2018 and 2017, are as follows:



	Qualified Pension Benefits									Non-Qualified Pension Benefits									Other Benefits
	2019			2018			2017			2019			2018			2017			2019			2018			2017
	(Dollars in thousands)
Components of net periodic benefit costs:
Service cost	$	38,592		$	39,677		$	42,149		$	311		$	548		$	1,206		$	1,053		$	943		$	1,160
Interest cost	28,396			24,007			22,999			747			711			843			1,094			908			930
Expected return on assets	(44,968		)	(48,159		)	(48,235		)	—			—			—			—			—			—
Settlement of retiree obligations	51			—			—			191			(112		)	(30		)	—			—			—
Prior service cost (credit) amortization	190			1,437			1,540			(75		)	30			19			(556		)	(565		)	(565		)
Actuarial loss (gain) amortization	12,348			18,073			22,869			2			61			546			(1,627		)	(1,224		)	(798		)
Net periodic benefit cost (benefit)	$	34,609		$	35,035		$	41,322		$	1,176		$	1,238		$	2,584		$	(36	)	$	62		$	727
Weighted-average assumptions to determine the net periodic benefit cost:
Discount rate	4.23		%	3.80		%	3.60		%	4.09		%	3.53		%	3.28		%	4.08		%	3.56		%	3.30		%
Expected return on plan assets	5.50		%	5.75		%	5.75		%	N/A			N/A			N/A			N/A			N/A			N/A
Rate of compensation increase	5.14		%	5.08		%	5.60		%	5.14		%	5.08		%	5.60		%	N/A			N/A			N/A
Weighted-average assumptions to determine the benefit obligations:
Discount rate	3.06		%	4.23		%	3.80		%	2.70		%	4.09		%	3.53		%	2.89		%	4.13		%	3.56		%
Rate of compensation increase	5.28		%	5.14		%	5.08		%	5.28		%	5.14		%	5.08		%	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, 2019, 2018 and 2017, are as follows:



	Qualified Pension Benefits									Non-Qualified Pension Benefits									Other Benefits
	2019			2018			2017			2019			2018			2017			2019		2018			2017
	(Dollars in thousands)
Other comprehensive income (loss):
Prior service cost (credit)	$	18		$	244		$	—		$	—		$	—		$	—		$	—	$	—		$	—
Net actuarial loss (gain)	47,556			(8,553		)	(16,044		)	1,917			(578		)	(6,345		)	801		(2,234		)	(5,427		)
Amortization of actuarial loss (gain)	(12,307		)	(18,073		)	(22,869		)	(2		)	(61		)	(546		)	1,627		1,224			798
Amortization of prior service costs (credit)	(190		)	(1,437		)	(1,540		)	75			(30		)	(19		)	556		565			565
Settlement of retiree obligations (a)	—			—			—			(191		)	112			30			—		—			—
Total recognized in other comprehensive income	$	35,077		$	(27,819	)	$	(40,453	)	$	1,799		$	(557	)	$	(6,880	)	$	2,984	$	(445	)	$	(4,064	)

(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

stimated amortization in fiscal 2020 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)	$	178	$	(114	)	$	(556	)
Amortization of actuarial (gain) loss	21,583		98			(1,392		)

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	$	200	$	(170	)
Effect on postretirement benefit obligation	2,000		(1,700		)

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
	(Dollars in thousands)
2020	$	72,600	$	1,580	$	2,040
2021	64,900		1,370		2,180
2022	61,900		1,940		2,410
2023	63,900		1,950		2,540
2024	65,000		2,030		2,520
2025-2029	326,100		8,840		11,110

Schedule of defined benefit plans, fair value disclosure

Our pension plans’ recurring fair value measurements by asset category at August 31, 2019 and 2018, are presented in the tables below:



	2019
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Cash and cash equivalents	$	7,938	$	—	$	—	$	7,938
Equities:
Common/collective trust at net asset value ⁽¹⁾	—		—		—		209,860
Fixed income securities:
Common/collective trust at net asset value ⁽¹⁾	—		—		—		574,296
Partnership and joint venture interests measured at net asset value ⁽¹⁾	—		—		—		101,641
Other assets measured at net asset value ⁽¹⁾	—		—		—		15,692
Total	$	7,938	$	—	$	—	$	909,427



	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

(1) In accordance with ASC Topic 820-10, Fair Value Measurement, 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, 2019, 2018 and 2017, is outlined in the table below:



		Contributions of CHS
		(Dollars in thousands)
Plan Name	EIN/Plan Number	2019		2018		2017		Surcharge Imposed	Expiration Date of Collective Bargaining Agreement
Co-op Retirement Plan	01-0689331 / 001	$	1,712	$	1,662	$	1,653	N/A	N/A