Investments

12 Months Ended

Aug. 31, 2020

Investments as of August 31, 2020 and 2019, are as follows:


	2020		2019
	(Dollars in thousands)
Equity method investments:
CF Industries Nitrogen, LLC	$	2,662,618	$	2,708,942
Ventura Foods, LLC	381,351		374,516
Ardent Mills, LLC	208,927		209,027
Other equity method investments	253,182		267,247
Other investments	123,955		124,264
Total investments	$	3,630,033	$	3,683,996

Joint ventures and other investments in which we have significant ownership and influence but not control, are accounted for in our consolidated financial statements using the equity method of accounting. Our significant equity method investments consist of CF Nitrogen, Ventura Foods, LLC ("Ventura Foods"), and Ardent Mills, LLC ("Ardent Mills"), which are summarized below. In addition to the recognition of our share of income from our equity method investments, our equity method investments are evaluated for indicators of other-than-temporary impairment on an ongoing basis in accordance with U.S. GAAP. We have approximately $383.0 million of cumulative undistributed earnings from our equity method investees included in the investments balance as of August 31, 2020.

All equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value with changes therein reflected in net income. We have elected to utilize the measurement alternative for equity investments that do not have readily determinable fair values and measure these investments at cost less impairment plus or minus observable price changes in orderly transactions. Our share in the income or loss of these equity method investments is recorded within equity (income) loss from investments in the Consolidated Statements of Operations. Other investments consist primarily of investments in cooperatives without readily determinable fair values and are generally recorded at cost, unless an impairment or other observable market price change occurs requiring an adjustment. Investments in other cooperatives are recorded in a manner similar to equity investments without readily determinable fair values, plus patronage dividends received in the form of capital stock and other equities. Patronage dividends are recorded as a reduction to cost of goods sold at the time qualified written notices of allocation are received. Investments in debt and equity instruments are carried at amounts that approximate fair values.

CF Nitrogen

We have a $2.7 billion investment in CF Nitrogen, a strategic venture with CF Industries Holdings, Inc. ("CF Industries"). The investment consists of an approximate 10% membership interest (based on product tons) in CF Nitrogen. At the time we entered into the strategic venture, we also entered into a supply agreement that entitles us to purchase up to 1.1 million tons of granular urea and 580,000 tons of urea ammonium nitrate ("UAN") annually from CF Nitrogen for ratable delivery through fiscal 2096. Our purchases under the supply agreement are based on prevailing market prices and we receive semi-annual cash distributions (in January and July of each year) from CF Nitrogen via our membership interest. These distributions are based on actual volumes purchased from CF Nitrogen under the strategic venture and will have the effect of reducing our investment to zero over 80 years on a straight-line basis. We account for this investment using the hypothetical liquidation at book value method, recognizing our share of the earnings and losses of CF Nitrogen as equity income from investments in our Nitrogen Production segment based on our contractual claims on the entity's net assets pursuant to the liquidation provisions of CF Nitrogen's Limited Liability Company Agreement, adjusted for the semi-annual cash distributions.

Cash distributions received from CF Nitrogen for the years ended August 31, 2020 and 2019, were $174.3 million and $186.5 million, respectively.

The following tables provide aggregate summarized financial information for CF Nitrogen for the balance sheets as of August 31, 2020 and 2019, and the statements of operations for the 12 months ended August 31, 2020, 2019 and 2018:


	2020		2019
	(Dollars in thousands)
Current assets	$	552,127	$	590,057
Noncurrent assets	6,564,086		7,028,766
Current liabilities	222,391		228,324
Noncurrent liabilities	3,036		2,455


	2020		2019		2018
	(Dollars in thousands)
Net sales	$	2,522,827	$	2,894,795	$	2,449,695
Gross profit	570,901		737,168		423,612
Net earnings	529,462		706,291		401,295
Earnings attributable to CHS Inc.	127,954		160,373		106,895

Ventura Foods and Ardent Mills

We have a 50% interest in Ventura Foods, which is a joint venture with Wilsey Foods, Inc., a majority-owned subsidiary of MBK USA Holdings, Inc., that produces and distributes primarily vegetable-oil-based products, and we have a 12% interest in Ardent Mills, which is a joint venture with Cargill Incorporated and Conagra Brands, Inc., and is the largest flour miller in the United States. We account for Ventura Foods and Ardent Mills as equity method investments included in Corporate and Other.

The following tables provide aggregate summarized financial information for our equity method investments in Ventura Foods and Ardent Mills for balance sheets as of August 31, 2020 and 2019, and statements of operations for the 12 months ended August 31, 2020, 2019 and 2018:


	2020		2019
	(Dollars in thousands)
Current assets	$	1,548,930	$	1,469,003
Noncurrent assets	2,461,886		2,327,217
Current liabilities	628,440		535,579
Noncurrent liabilities	895,620		790,401


	2020		2019		2018
	(Dollars in thousands)
Net sales	$	5,440,143	$	5,752,368	$	5,882,035
Gross profit	584,352		565,784		601,927
Net earnings	181,049		248,303		226,776
Earnings attributable to CHS Inc.	48,927		69,157		46,069

Our investments in other equity method investees are not significant in relation to our consolidated financial statements, either individually or in the aggregate.