XML 48 R17.htm IDEA: XBRL DOCUMENT v3.25.3
Equities
 12 Months Ended
Aug. 31, 2025
Equity [Abstract]  
Equities Equities
Patronage and Equity Redemptions    

    In accordance with our bylaws and by action of the Board of Directors, annual net earnings from patronage sources are distributed to consenting patrons following the close of each fiscal year and are based on amounts using financial statement earnings. The cash portion of the qualified patronage distribution, if any, is determined annually by the Board of Directors, with the balance issued in the form of qualified and/or nonqualified capital equity certificates. Total patronage distributions for fiscal 2025, to be paid in fiscal 2026, are estimated to be $229.1 million, with the qualified cash portion estimated to be $30.0 million, estimated qualified equity distributions of $55.0 million and estimated nonqualified equity distributions of $144.1 million.

The following table presents estimated patronage distributions for the year ending August 31, 2025, and actual patronage distributions for the years ended August 31, 2024, 2023 and 2022:
2026202520242023
 (Dollars in millions)
Patronage distributed in cash$30.0 $300.3 $366.0 $503.1 
Patronage distributed in equity199.1 360.2 877.3 670.9 
Total patronage distributed$229.1 $660.5 $1,243.3 $1,174.0 

    Annual net earnings from patronage or other sources may be added to the unallocated capital reserve or, upon action by the Board of Directors, may be allocated to members in the form of nonpatronage equity certificates. The Board of Directors authorized, in accordance with our bylaws, that 35% of the earnings from patronage business for fiscal 2025 and 10% for fiscal 2024 and 2023 be added to our capital reserves.

    Redemptions of outstanding equity are at the discretion of the Board of Directors. Redemptions of capital equity certificates approved by the Board of Directors are divided into two pools, one for nonindividuals (primarily member cooperatives) who may participate in an annual redemption program for qualified equities held by them and another for individual members who are eligible for equity redemptions at age 70 or upon death. In accordance with authorization from the Board of Directors, we expect total redemptions related to the year ended August 31, 2025, which will be distributed in fiscal 2026, to be approximately $90.0 million. This amount is classified as a current liability on our August 31, 2025 Consolidated Balance Sheets. During the years ended August 31, 2025, 2024 and 2023, we redeemed in cash, outstanding owners' equities in accordance with authorization from the Board of Directors, in the amounts of $287.7 million, $355.9 million and $495.8 million, respectively.
Preferred Stock    
    
    As of August 31, 2025, the Board of Directors had not authorized the issuance of any preferred shares that were not outstanding. The following is a summary of our outstanding preferred stock as of August 31, 2025, all shares of which are listed on the Global Select Market of Nasdaq:
Nasdaq SymbolIssuance DateShares OutstandingRedemption ValueNet Proceeds (a)Dividend Rate
 (b) (c)		Dividend Payment FrequencyRedeemable Beginning (d)
(Dollars in millions)
8% Cumulative RedeemableCHSCP(e)12,272,003 $306.8 $311.2 8.00 %Quarterly7/18/2023
Class B Cumulative Redeemable, Series 1CHSCO(f)21,459,066 536.5 569.3 7.875 %Quarterly9/26/2023
Class B Reset Rate Cumulative Redeemable, Series 2CHSCN3/11/201416,800,000 420.0 406.2 7.10 %Quarterly3/31/2024
Class B Reset Rate Cumulative Redeemable, Series 3CHSCM9/15/201419,700,000 492.5 476.7 6.75 %Quarterly9/30/2024
Class B Cumulative Redeemable, Series 4CHSCL1/21/201520,700,000 517.5 501.0 7.50 %Quarterly1/21/2025
(a) Includes patron equities redeemed with preferred stock.

(b) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 accumulated dividends at a rate of 7.10% per year until March 31, 2024, and subsequently fixed at a rate of 7.10%, based on the terms of the contract and application of the Adjustable Rate (LIBOR) Act.

(c) The Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulated dividends at a rate of 6.75% per year until September 30, 2024, and subsequently fixed at a rate of 6.75%, based on the terms of the contract and application of the Adjustable Rate (LIBOR) Act.

(d) All series of preferred stock are redeemable for cash at our option, in whole or in part, at a per share price equal to the per share liquidation preference of $25.00 per share, plus all dividends accumulated and unpaid on that share to and including the date of redemption, beginning on the dates set forth in this column.

(e) The 8% Cumulative Redeemable Preferred Stock was issued at various times from 2003 through 2010.

(f) Shares of Class B Cumulative Redeemable Preferred Stock, Series 1 were issued on September 26, 2013; August 25, 2014; March 31, 2016; and March 30, 2017.

Preferred Stock Dividends
    
    We made dividend payments on our preferred stock of $168.7 million during each of the years ended August 31, 2025, 2024 and 2023. The following is a summary of the annual dividends per share by series of preferred stock for the years ended August 31, 2025, 2024 and 2023:
Nasdaq SymbolAnnual Dividend Per Share
8% Cumulative RedeemableCHSCP$2.00 
Class B Cumulative Redeemable, Series 1CHSCO1.97 
Class B Reset Rate Cumulative Redeemable, Series 2CHSCN1.78 
Class B Reset Rate Cumulative Redeemable, Series 3CHSCM1.69 
Class B Cumulative Redeemable, Series 4CHSCL1.88 
Accumulated Other Comprehensive Loss

    Changes in accumulated other comprehensive income (loss) by component, for the years ended August 31, 2025, 2024 and 2023 are as follows:
Pension and Other Postretirement BenefitsCash Flow HedgesForeign Currency Translation AdjustmentTotal
(Dollars in thousands)
Balance as of August 31, 2022, net of tax
$(168,640)$8,843 $(95,538)$(255,335)
Other comprehensive income (loss), before tax:
Amounts before reclassifications(13,596)(25,024)1,829 (36,791)
Amounts reclassified out93 16,044 — 16,137 
Total other comprehensive income (loss), before tax(13,503)(8,980)1,829 (20,654)
Tax effect8,218 2,169 207 10,594 
Other comprehensive income (loss), net of tax(5,285)(6,811)2,036 (10,060)
Balance as of August 31, 2023, net of tax
(173,925)2,032 (93,502)(265,395)
Other comprehensive income (loss), before tax:
Amounts before reclassifications(29,445)14,950 (10,249)(24,744)
Amounts reclassified out180 (15,287)1,227 (13,880)
Total other comprehensive income (loss), before tax(29,265)(337)(9,022)(38,624)
Tax effect7,217 82 178 7,477 
Other comprehensive income (loss), net of tax(22,048)(255)(8,844)(31,147)
Balance as of August 31, 2024, net of tax
(195,973)1,777 (102,346)(296,542)
Other comprehensive income (loss), before tax:
Amounts before reclassifications(17,460)16,821 (8,094)(8,733)
Amounts reclassified out12,129 (15,507)859 (2,519)
Total other comprehensive income (loss), before tax(5,331)1,314 (7,235)(11,252)
Tax effect1,726 (328)24 1,422 
Other comprehensive income (loss), net of tax(3,605)986 (7,211)(9,830)
Balance as of August 31, 2025, net of tax
$(199,578)$2,763 $(109,557)$(306,372)
    
    Amounts reclassified from accumulated other comprehensive income (loss) were related to pension and other postretirement benefits, cash flow hedges and foreign currency translation adjustments. Pension and other postretirement reclassifications, which include amortization of net actuarial loss, prior service credit and transition amounts, are recorded as cost of goods sold and marketing, general and administrative expenses (see Note 13, Benefit Plans, for further information). As described in Note 15, Derivative Financial Instruments and Hedging Activities, amounts reclassified from accumulated other comprehensive loss for cash flow hedges are recorded in cost of goods sold. Gains or losses on foreign currency translation reclassifications are recorded in other income.