Equities

Changes in Equities

Changes in equities for the nine months ended May 31, 2020, and 2019, are as follows:



	Equity Certificates											Accumulated Other Comprehensive Loss
	Capital Equity Certificates			Nonpatronage Equity Certificates			Nonqualified Equity Certificates			Preferred Stock		Accumulated Other Comprehensive Loss			Capital Reserves			Noncontrolling Interests			Total Equities
	(Dollars in thousands)
Balances, August 31, 2019	$	3,753,493		$	29,074		$	1,206,310		$	2,264,038	$	(226,933	)	$	1,584,158		$	7,390		$	8,617,530
Reversal of prior year redemption estimates	5,447			—			—			—		—			—			—			5,447
Redemptions of equities	(4,721		)	(54		)	(672		)	—		—			—			—			(5,447		)
Preferred stock dividends	—			—			—			—		—			(84,334		)	—			(84,334		)
ASC Topic 842 cumulative-effect adjustment	—			—			—			—		—			33,707			—			33,707
Other, net	(8		)	—			(39		)	—		—			(1,312		)	410			(949		)
Net income	—			—			—			—		—			177,882			855			178,737
Other comprehensive loss, net of tax	—			—			—			—		(1,638		)	—			—			(1,638		)
Estimated 2020 cash patronage refunds	—			—			—			—		—			(28,504		)	—			(28,504		)
Estimated 2020 equity redemptions	(91,633		)	—			—			—		—			—			—			(91,633		)
Balances, November 30, 2019	$	3,662,578		$	29,020		$	1,205,599		$	2,264,038	$	(228,571	)	$	1,681,597		$	8,655		$	8,622,916
Reversal of prior year patronage and redemption estimates	3,387			—			(472,398		)	—		—			562,398			—			93,387
Distribution of 2019 patronage refunds	—			—			474,066			—		—			(564,096		)	—			(90,030		)
Redemptions of equities	(2,998		)	(20		)	(369		)	—		—			—			—			(3,387		)
Preferred stock dividends	—			—			—			—		—			(42,167		)	—			(42,167		)
Other, net	(201		)	—			3			—		—			10			(324		)	(512		)
Net income	—			—			—			—		—			125,447			247			125,694
Other comprehensive loss, net of tax	—			—			—			—		(10,585		)	—			—			(10,585		)
Estimated 2020 cash patronage refunds	—			—			—			—		—			(22,206		)	—			(22,206		)
Estimated 2020 equity redemptions	(49,154		)	—			—			—		—			—			—			(49,154		)
Balances, February 29, 2020	$	3,613,612		$	29,000		$	1,206,901		$	2,264,038	$	(239,156	)	$	1,740,983		$	8,578		$	8,623,956
Reversal of prior year redemption estimates	67,438			—			10,000			—		—			—			—			77,438
Distribution of 2019 patronage refunds	—			—			327			—		—			(409		)	—			(82		)
Redemptions of equities	(64,273		)	(91		)	(13,074		)	—		—			—			—			(77,438		)
Other, net	(1,544		)	(7		)	(116		)	—		—			1,053			8			(606		)
Net income (loss)	—			—			—			—		—			97,648			(147		)	97,501
Other comprehensive loss, net of tax	—			—			—			—		(2,009		)	—			—			(2,009		)
Estimated 2020 cash patronage refunds	—			—			—			—		—			13,551			—			13,551
Estimated 2020 equity redemptions	47,975			—			—			—		—			—			—			47,975
Balances, May 31, 2020	$	3,663,208		$	28,902		$	1,204,038		$	2,264,038	$	(241,165	)	$	1,852,826		$	8,439		$	8,780,286



	Equity Certificates											Accumulated Other Comprehensive Loss
	Capital Equity Certificates			Nonpatronage Equity Certificates			Nonqualified Equity Certificates			Preferred Stock		Accumulated Other Comprehensive Loss			Capital Reserves			Noncontrolling Interests			Total Equities
	(Dollars in thousands)
Balances, August 31, 2018	$	3,837,580		$	29,498		$	742,378		$	2,264,038	$	(199,915	)	$	1,482,003		$	9,446		$	8,165,028
Reversal of prior year redemption estimates	24,072			—			—			—		—			—			—			24,072
Redemptions of equities	(22,004		)	(183		)	(1,885		)	—		—			—			—			(24,072		)
Preferred stock dividends	—			—			—			—		—			(84,334		)	—			(84,334		)
Reclassification of unrealized (gain) loss on investments	—			—			—			—		(4,706		)	4,706			—			—
Other, net	(409		)	—			(26		)	—		—			3,436			318			3,319
Net income (loss)	—			—			—			—		—			347,504			(389		)	347,115
Other comprehensive income, net of tax	—			—			—			—		389			—			—			389
Estimated 2019 cash patronage refunds	—			—			—			—		—			(89,344		)	—			(89,344		)
Estimated 2019 equity redemptions	(50,081		)	—			—			—		—			—			—			(50,081		)
Balances, November 30, 2018	$	3,789,158		$	29,315		$	740,467		$	2,264,038	$	(204,232	)	$	1,663,971		$	9,375		$	8,292,092
Reversal of prior year patronage and redemption estimates	6,681			—			(345,330		)	—		—			420,330			—			81,681
Distribution of 2018 patronage refunds	—			—			349,353			—		—			(424,333		)	—			(74,980		)
Redemptions of equities	(5,988		)	(74		)	(619		)	—		—			—			—			(6,681		)
Preferred stock dividends	—			—			—			—		—			(42,167		)	—			(42,167		)
Other, net	(774		)	—			2,589			—		—			(2,888		)	(581		)	(1,654		)
Net income (loss)	—			—			—			—		—			248,766			(462		)	248,304
Other comprehensive income, net of tax	—			—			—			—		14,884			—			—			14,884
Estimated 2019 cash patronage refunds	—			—			—			—		—			(69,400		)	—			(69,400		)
Estimated 2019 equity redemptions	(39,850		)	—			—			—		—			—			—			(39,850		)
Balances, February 28, 2019	$	3,749,227		$	29,241		$	746,460		$	2,264,038	$	(189,348	)	$	1,794,279		$	8,332		$	8,402,229
Reversal of prior year redemption estimates	45,815			—			—			—		—			—			—			45,815
Distribution of 2018 patronage refunds	—			—			3,212			—		—			(3,901		)	—			(689		)
Redemptions of equities	(34,798		)	(34		)	(10,812		)	—		—			—			—			(45,644		)
Other, net	(1,285		)	—			(3,722		)	—		—			4,526			11			(470		)
Net income (loss)	—			—			—			—		—			54,620			93			54,713
Other comprehensive loss, net of tax	—			—			—			—		(22,313		)	—			—			(22,313		)
Estimated 2019 cash patronage refunds	—			—			—			—		—			(15,494		)	—			(15,494		)
Estimated 2019 equity redemptions	(6,438		)	—			—			—		—			—			—			(6,438		)
Balances, May 31, 2019	$	3,752,521		$	29,207		$	735,138		$	2,264,038	$	(211,661	)	$	1,834,030		$	8,436		$	8,411,709

Preferred Stock Dividends

The following is a summary of dividends per share by series of preferred stock for the nine months ended May 31, 2020, and 2019. Note that due to the timing of dividend declarations during the fiscal year, no declarations were made during the third quarter of fiscal 2020 or fiscal 2019.



			Nine Months Ended May 31,
	Nasdaq symbol		2020		2019
Series of preferred stock:		(Dollars per share)
8% Cumulative Redeemable	CHSCP		$	1.50	$	1.50
Class B Cumulative Redeemable, Series 1	CHSCO		1.48		1.48
Class B Reset Rate Cumulative Redeemable, Series 2	CHSCN		1.33		1.33
Class B Reset Rate Cumulative Redeemable, Series 3	CHSCM		1.27		1.27
Class B Cumulative Redeemable, Series 4	CHSCL		1.41		1.41

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows for the nine months ended May 31, 2020, and 2019:



	Pension and Other Postretirement Benefits			Cash Flow Hedges			Foreign Currency Translation Adjustment			Total
	(Dollars in thousands)
Balance as of August 31, 2019, net of tax	$	(172,478	)	$	15,297		$	(69,752	)	$	(226,933	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	(85		)	(3,331		)	(2,411		)	(5,827		)
Amounts reclassified	4,977			(4,473		)	—			504
Total other comprehensive income (loss), before tax	4,892			(7,804		)	(2,411		)	(5,323		)
Tax effect	181			1,932			1,572			3,685
Other comprehensive income (loss), net of tax	5,073			(5,872		)	(839		)	(1,638		)
Balance as of November 30, 2019, net of tax	$	(167,405	)	$	9,425		$	(70,591	)	$	(228,571	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	—			(5,975		)	(8,540		)	(14,515		)
Amounts reclassified	4,977			(1,747		)	—			3,230
Total other comprehensive income (loss), before tax	4,977			(7,722		)	(8,540		)	(11,285		)
Tax effect	(1,231		)	1,910			21			700
Other comprehensive income (loss), net of tax	3,746			(5,812		)	(8,519		)	(10,585		)
Balance as of February 29, 2020, net of tax	$	(163,659	)	$	3,613		$	(79,110	)	$	(239,156	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	(340		)	7,795			(12,515		)	(5,060		)
Amounts reclassified	4,977			1,263			—			6,240
Total other comprehensive income (loss), before tax	4,637			9,058			(12,515		)	1,180
Tax effect	(1,147		)	(2,241		)	199			(3,189		)
Other comprehensive income (loss), net of tax	3,490			6,817			(12,316		)	(2,009		)
Balance as of May 31, 2020, net of tax	$	(160,169	)	$	10,430		$	(91,426	)	$	(241,165	)



	Pension and Other Postretirement Benefits			Unrealized Net Gain on Available for Sale Investments			Cash Flow Hedges			Foreign Currency Translation Adjustment			Total
	(Dollars in thousands)
Balance as of August 31, 2018, net of tax	$	(140,335	)	$	8,861		$	(5,882	)	$	(62,559	)	$	(199,915	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	175			—			(317		)	(25		)	(167		)
Amounts reclassified	2,565			—			(1,475		)	—			1,090
Total other comprehensive income (loss), before tax	2,740			—			(1,792		)	(25		)	923
Tax effect	(639		)	—			485			(380		)	(534		)
Other comprehensive income (loss), net of tax	2,101			—			(1,307		)	(405		)	389
Reclassifications	416			(8,861		)	983			2,756			(4,706		)
Balance as of November 30, 2018, net of tax	$	(137,818	)	$	—		$	(6,206	)	$	(60,208	)	$	(204,232	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	102			—			18,954			3,176			22,232
Amounts reclassified	2,564			—			(5,677		)	—			(3,113		)
Total other comprehensive income (loss), before tax	2,666			—			13,277			3,176			19,119
Tax effect	(664		)	—			(3,308		)	(263		)	(4,235		)
Other comprehensive income, net of tax	2,002			—			9,969			2,913			14,884
Balance as of February 28, 2019, net of tax	$	(135,816	)	$	—		$	3,763		$	(57,295	)	$	(189,348	)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	(164		)	—			(19,680		)	(7,725		)	(27,569		)
Amounts reclassified	2,564			—			(1,385		)	—			1,179
Total other comprehensive income (loss), before tax	2,400			—			(21,065		)	(7,725		)	(26,390		)
Tax effect	(904		)	—			5,248			(267		)	4,077
Other comprehensive income (loss), net of tax	1,496			—			(15,817		)	(7,992		)	(22,313		)
Balance as of May 31, 2019, net of tax	$	(134,320	)	$	—		$	(12,054	)	$	(65,287	)	$	(211,661	)

Amounts reclassified from accumulated other comprehensive income (loss) were related to pension and other postretirement benefits, cash flow hedges, available-for-sale investments and foreign currency translation adjustments. Pension and other postretirement reclassifications include amortization of net actuarial loss, prior service credit and transition amounts and are recorded as cost of goods sold, marketing, general and administrative expenses, and other income (see Note 8, Benefit Plans, for further information). Gains or losses associated with cash flow hedges are recorded as cost of goods sold (see Note 11, Derivative Financial Instruments and Hedging Activities, for further information). Gains or losses on the sale of available-for-sale investments and foreign currency translation reclassifications related to sales of businesses are recorded as other income.