Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

May 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Reconciliation of gross and net fair values of assets and liabilities subject to offsetting arrangements

	May 31, 2020
			Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting
	Gross Amount Recognized		Cash Collateral		Derivative Instruments		Net Amount
	(Dollars in thousands)
Derivative Assets
Commodity derivatives	$	377,198	$	—	$	48,562	$	328,636
Foreign exchange derivatives	13,828		—		11,728		2,100
Embedded derivative asset	18,636		—		—		18,636
Total	$	409,662	$	—	$	60,290	$	349,372
Derivative Liabilities
Commodity derivatives	$	282,505	$	1,487	$	95,559	$	185,459
Foreign exchange derivatives	92,962		—		11,728		81,234
Total	$	375,467	$	1,487	$	107,287	$	266,693

	August 31, 2019
			Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting
	Gross Amount Recognized		Cash Collateral		Derivative Instruments		Net Amount
	(Dollars in thousands)
Derivative Assets
Commodity derivatives	$	215,030	$	—	$	58,726	$	156,304
Foreign exchange derivatives	10,334		—		7,108		3,226
Embedded derivative asset	21,364		—		—		21,364
Total	$	246,728	$	—	$	65,834	$	180,894
Derivative Liabilities
Commodity derivatives	$	223,410	$	4,191	$	41,647	$	177,572
Foreign exchange derivatives	20,609		—		7,108		13,501
Total	$	244,019	$	4,191	$	48,755	$	191,073

Derivatives Not Designated as Hedging Instruments

The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2020, and 2019.

		Three Months Ended May 31,						Nine Months Ended May 31,
	Location of Gain (Loss)	2020			2019			2020			2019
		(Dollars in thousands)
Commodity derivatives	Cost of goods sold	$	85,259		$	(23,749	)	$	228,201		$	41,814
Foreign exchange derivatives	Cost of goods sold	(129,699		)	(13,040		)	(177,008		)	14,941
Foreign exchange derivatives	Marketing, general and administrative expenses	(2,553		)	(7		)	(615		)	(1,421		)
Embedded derivative	Other income	355			399			2,272			2,362
Total		$	(46,638	)	$	(36,397	)	$	52,850		$	57,696

Schedule of Derivative Instruments, Purchase and Sales Contracts

all outstanding commodity contracts accounted for as derivative instruments.

	May 31, 2020		August 31, 2019
	Long	Short	Long	Short
	(Units in thousands)
Grain and oilseed (bushels)	673,234	788,434	547,096	717,522
Energy products (barrels)	18,970	9,168	13,895	4,663
Processed grain and oilseed (tons)	858	1,686	597	2,454
Crop nutrients (tons)	144	—	76	23
Ocean freight (metric tons)	435	250	295	85
Natural gas (MMBtu)	—	—	130	—

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the line items on our Condensed Consolidated Balance Sheets in which they are recorded.

	Derivative Assets					Derivative Liabilities
Balance Sheet Location	May 31, 2020		August 31, 2019		Balance Sheet Location	May 31, 2020		August 31, 2019
	(Dollars in thousands)					(Dollars in thousands)
Other current assets	$	39,620	$	33,179	Other current liabilities	$	15,945	$	5,351

The following table presents the fair value of our derivative interest rate swap instruments designated as fair value hedges and the line item on our Condensed Consolidated Balance Sheets in which they are recorded.

Balance Sheet Location	May 31, 2020		August 31, 2019
	(Dollars in thousands)
Other assets	$	—	$	9,841

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The following table sets forth the pretax gains (losses) on derivatives accounted for as hedging instruments that have been included in our Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2020, and 2019.

		Three Months Ended May 31,						Nine Months Ended May 31,
Gain (Loss) on Fair Value Hedging Relationships	Location of Gain (Loss)	2020			2019			2020			2019
		(Dollars in thousands)
Interest rate swaps	Interest expense	$	(4,705	)	$	(8,122	)	$	(1,897	)	$	(15,129	)
Hedged item	Interest expense	4,705			8,122			1,897			15,129
Total		$	—		$	—		$	—		$	—

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following table provides the location and carrying amount of hedged liabilities in our Condensed Consolidated Balance Sheets as of May 31, 2020, and August 31, 2019.

	May 31, 2020				August 31, 2019
Balance Sheet Location	Carrying Amount of Hedged Liabilities		Cumulative Amount of Fair Value Hedging Adjustments Included in Carrying Amount of Hedged Liabilities		Carrying Amount of Hedged Liabilities		Cumulative Amount of Fair Value Hedging Adjustments Included in Carrying Amount of Hedged Liabilities
	(Dollars in thousands)
Long-term debt	$	—	$	—	$	334,389	$	30,611

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three and nine months ended May 31, 2020, and 2019:

	Three Months Ended May 31,					Nine Months Ended May 31,
	2020		2019			2020			2019
	(Dollars in thousands)
Commodity derivatives	$	11,081	$	(21,029	)	$	(4,153	)	$	(9,323	)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents the pretax gains relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2020, and 2019:

		Three Months Ended May 31,				Nine Months Ended May 31,
	Location of Gain	2020		2019		2020		2019
		(Dollars in thousands)
Commodity derivatives	Cost of goods sold	$	884	$	1,810	$	7,862	$	9,812