NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 Basis of Presentation, Significant Accounting Policies and Subsequent Events
Basis of Presentation
These unaudited condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for interim periods are not necessarily indicative of results for a full fiscal year because of the seasonal nature of our businesses, among other things. Our unaudited condensed consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended August 31, 2025, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC").
Effective September 1, 2025, we changed our segment reporting to align with our new product-line operating model, as further described in Note 10, Segment Reporting. Corresponding prior period amounts have been recast to conform to current period classification.
Significant Accounting Policies
No significant accounting policies were updated or changed since our Annual Report on Form 10-K for the year ended August 31, 2025.
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update
("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides additional transparency for income tax disclosures. This ASU is effective for our annual reporting for fiscal year 2026 on a prospective basis with an option for retrospective application and for interim reporting periods beginning in fiscal year 2027. As this ASU relates to disclosures only, there will be no effect on our consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which requires additional disclosure about certain costs and expenses in the notes to financial statements. This ASU is effective for our annual reporting for fiscal year 2028 on either a prospective or retrospective basis and for interim reporting periods beginning in fiscal year 2029. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. This ASU amends the criteria for recognizing and capitalizing costs related to internal-use software by replacing the previous project stage model with a principles-based framework. Under this ASU, costs are capitalized when management has authorized and committed to funding a software project, and it is probable that the project will be completed and the software used as intended. This ASU is effective for our annual reporting for fiscal year 2029 on either a prospective, retrospective or modified prospective transition method. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-10, Government Grants: Accounting for Government Grants Received by Business Entities. This ASU provides recognition, measurement, presentation, and disclosure requirements for government grants. Under the new guidance, proceeds from government grants must be recognized in earnings during the same period the underlying costs associated with grant eligibility are incurred. However, grant income must not be recognized unless it is probable the grant will be received and the entity will comply with the conditions attached to the grant. This ASU is effective for our interim reporting beginning in fiscal year 2030. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting: Narrow-Scope Improvements. This ASU improves clarity for interim financial reporting requirements under the existing guidance within Accounting Standards Codification ("ASC") Topic 270, Interim Reporting, by creating a comprehensive list of interim disclosure requirements, clarifying scope and applicability, along with adding a principle to disclose all material events that have occurred since the most
recently filed Form 10-K. This ASU is effective for our interim reporting beginning in fiscal year 2029. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.
Subsequent Events
On October 10, 2025, we announced our mutual intent with Mid-Kansas Cooperative ("MKC") to start the process of ending our joint venture in Producer Ag. On December 31, 2025, we finalized an agreement for CHS to exit the joint venture. As a part of this agreement, CHS will receive consideration in the form of working capital in exchange for our equity interest, which represents approximately 57% of the net assets. We do not expect this agreement to have a material impact on our consolidated statements of operations.
Note 2 Revenues
The following table presents revenues recognized under ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), disaggregated by operating segment, as well as the amount of revenues recognized under ASC Topic 815, Derivatives and Hedging ("ASC Topic 815"), and other applicable accounting guidance for the three months ended November 30, 2025 and 2024. Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 470, Debt, and ASC Topic 842, Leases, that fall outside the scope of ASC Topic 606.
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| | ASC Topic 606 | | ASC Topic 815 | | Other Guidance | | Total Revenues |
| Three Months Ended November 30, 2025 | | (Dollars in thousands) |
| Energy | | $ | 2,166,139 | | | $ | 198,738 | | | $ | — | | | $ | 2,364,877 | |
| Grains | | 500,618 | | | 4,713,297 | | | 1,439 | | | 5,215,354 | |
| Agronomy | | 1,238,005 | | | — | | | — | | | 1,238,005 | |
| Corporate and Services | | 30,464 | | | — | | | 15,404 | | | 45,868 | |
| Total revenues | | $ | 3,935,226 | | | $ | 4,912,035 | | | $ | 16,843 | | | $ | 8,864,104 | |
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| Three Months Ended November 30, 2024* | | | | | | | | |
| Energy | | $ | 2,036,832 | | | $ | 259,638 | | | $ | — | | | $ | 2,296,470 | |
| Grains | | 539,966 | | | 5,137,607 | | | 1,599 | | | 5,679,172 | |
| Agronomy | | 1,264,034 | | | — | | | — | | | 1,264,034 | |
| Corporate and Services | | 39,619 | | | — | | | 14,817 | | | 54,436 | |
| Total revenues | | $ | 3,880,451 | | | $ | 5,397,245 | | | $ | 16,416 | | | $ | 9,294,112 | |
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*Prior period amounts have been recast to align with our new product-line operating model.
Less than 1% of revenues accounted for under ASC Topic 606 included within the tables above are recorded over time and relate primarily to service contracts.
Contract Assets and Contract Liabilities
Contract assets relate to unbilled amounts arising from goods that have already been transferred to customers where the right to payment is not conditional on the passage of time. This results in recognition of an asset as the amount of revenue recognized at a certain point in time exceeds the amount billed to customers. Contract assets are recorded in receivables within our Condensed Consolidated Balance Sheets and were $27.7 million and $11.8 million as of November 30, 2025, and August 31, 2025, respectively.
Contract liabilities relate to advance payments received from customers for goods and services that we have yet to provide. Contract liabilities of $202.1 million and $179.6 million as of November 30, 2025, and August 31, 2025, respectively, are recorded within other current liabilities on our Condensed Consolidated Balance Sheets. For the three months ended November 30, 2025 and 2024, we recognized revenues of $90.7 million and $127.6 million related to contract liabilities, respectively. These amounts were included in the other current liabilities balance at the beginning of the respective period.
Note 3 Receivables
| | | | | | | | | | | |
| November 30,
2025 | | August 31,
2025 |
| (Dollars in thousands) |
| Trade accounts receivable | $ | 2,365,751 | | | $ | 2,122,697 | |
| CHS Capital short-term notes receivable | 984,679 | | | 1,053,413 | |
| Other | 724,207 | | | 592,187 | |
| Gross receivables | 4,074,637 | | | 3,768,297 | |
| Less: allowances and reserves | 85,953 | | | 81,712 | |
| Total receivables | $ | 3,988,684 | | | $ | 3,686,585 | |
Receivables are composed of trade accounts receivable, short-term notes receivable in our wholly-owned subsidiary, CHS Capital, LLC ("CHS Capital"), and other receivables, less an allowance for expected credit losses. The allowance for expected credit losses is based on our best estimate of expected credit losses in existing receivable balances and is determined using historical write-off experience, adjusted for various industry and regional data and current expectations of future credit losses.
Notes receivable from commercial borrowers are collateralized by various combinations of mortgages, personal property, accounts and notes receivable, inventories and assignments of certain regional cooperatives' capital stock. These loans are primarily originated in the states of Minnesota, Illinois, North Dakota and Montana. CHS Capital also has loans receivable from producer borrowers that are collateralized by various combinations of growing crops, livestock, inventories, accounts receivable, personal property and supplemental mortgages and are primarily originated in the same states as the commercial notes, as well as in South Dakota.
In addition to the short-term balances included in the table above, CHS Capital had long-term notes receivable, with durations of generally not more than 10 years, totaling $168.4 million and $123.8 million as of November 30, 2025, and August 31, 2025, respectively. The long-term notes receivable are included in other assets on our Condensed Consolidated Balance Sheets. As of November 30, 2025, and August 31, 2025, commercial notes represented 33% and 24%, respectively, and producer notes represented 67% and 76%, respectively, of total CHS Capital notes receivable.
CHS Capital has commitments to extend credit to customers if there are no violations of contractually established conditions. As of November 30, 2025, CHS Capital customers had additional available credit of $1.4 billion. No significant troubled debt restructuring activity occurred, and no third-party customer or borrower accounted for more than 10% of the total receivables balance as of November 30, 2025, or August 31, 2025.
Note 4 Inventories
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| November 30,
2025 | | August 31,
2025 |
| (Dollars in thousands) |
| Grain and oilseed | $ | 1,869,445 | | | $ | 957,894 | |
| Energy | 744,014 | | | 694,655 | |
| Agronomy | 1,290,114 | | | 1,202,326 | |
| Processed grain and oilseed | 133,222 | | | 134,498 | |
| Other | 290,790 | | | 280,977 | |
| Total inventories | $ | 4,327,585 | | | $ | 3,270,350 | |
As of November 30, 2025, and August 31, 2025, we valued approximately 14% and 18%, respectively, of inventories, primarily crude oil and refined fuels within our Energy segment, using the lower of cost, determined on the last in, first out ("LIFO") method, or net realizable value. If the first in, first out ("FIFO") method of accounting had been used, inventories would have been higher than the reported amount by $286.1 million and $361.1 million as of November 30, 2025, and August 31, 2025, respectively. Actual valuation of inventory under the LIFO method can be made only at the end of each year based on inventory levels and costs at that time. Interim LIFO calculations are based on management's estimates of expected year-end inventory levels and values and are subject to final year-end LIFO inventory valuation.
Note 5 Investments
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| November 30,
2025 | | August 31,
2025 |
| | (Dollars in thousands) |
| Equity method investments: | | | |
| CF Industries Nitrogen, LLC | $ | 2,631,395 | | | $ | 2,535,119 | |
| Ventura Foods, LLC | 533,259 | | | 527,227 | |
| Ardent Mills, LLC | 236,308 | | | 237,052 | |
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| Other equity method investments | 385,821 | | | 407,678 | |
| Other investments | 140,597 | | | 138,986 | |
| Total investments | $ | 3,927,380 | | | $ | 3,846,062 | |
Joint ventures and other investments in which we have significant ownership and influence, but not control, are accounted for in our condensed consolidated financial statements using the equity method of accounting. Our significant equity method investments during the three months ended November 30, 2025 and 2024, consist of CF Industries Nitrogen, LLC ("CF Nitrogen") and Ventura Foods, LLC ("Ventura Foods"), which are summarized below. In addition to the recognition of our share of income from equity method investments, our equity method investments are evaluated for indicators of other-than-temporary impairment on an ongoing basis in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). 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 that requires an adjustment. We had approximately $796.3 million in cumulative undistributed earnings from our equity method investees included in the investments balance as of November 30, 2025.
CF Nitrogen
We have a $2.6 billion investment in CF Nitrogen, a strategic venture with CF Industries Holdings, Inc. ("CF Industries"). The investment consists of an approximate 8.38% membership interest (based on product tons) in CF Nitrogen. 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 Agronomy 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 semiannual cash distributions.
The following table provides summarized unaudited financial information for our equity method investment in CF Nitrogen for the three months ended November 30, 2025 and 2024.
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| Three Months Ended November 30, |
| 2025 | | 2024 |
| (Dollars in thousands) |
| Net sales | $ | 1,070,528 | | | $ | 787,948 | |
| Gross profit | 421,733 | | | 215,712 | |
| Net earnings | 404,201 | | | 199,497 | |
| Earnings attributable to CHS Inc. | 96,276 | | | 56,817 | |
Ventura Foods
We have a 50% interest in Ventura Foods, a joint venture with Mitsui & Co., Ltd., that produces and distributes edible oil-based products. We account for Ventura Foods as an equity method investment, and our share of the results of this equity method investment is included in Corporate and Services.
The following table provides summarized unaudited financial information for our equity method investment in Ventura Foods for the three months ended November 30, 2025 and 2024.
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| Three Months Ended November 30, |
| 2025 | | 2024 |
| (Dollars in thousands) |
| Net sales | $ | 838,166 | | | $ | 798,723 | |
| Gross profit | 153,345 | | | 120,948 | |
| Net earnings | 52,947 | | | 41,857 | |
| Earnings attributable to CHS Inc. | 26,474 | | | 20,929 | |
Note 6 Notes Payable and Long-Term Debt
Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with all debt covenants as of November 30, 2025. Notes payable as of November 30, 2025, and August 31, 2025, consisted of the following:
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| November 30,
2025 | | August 31,
2025 |
| (Dollars in thousands) |
| Notes payable | $ | 712,022 | | | $ | 584,226 | |
| CHS Capital notes payable | 1,147,137 | | | 568,231 | |
| Total notes payable | $ | 1,859,159 | | | $ | 1,152,457 | |
Our primary line of credit is a five-year unsecured revolving credit facility with a syndicate of domestic and international banks. The credit facility provides a committed amount of $2.8 billion that expires on April 21, 2028. There were $215.0 million and $180.0 million borrowings outstanding on this facility as of November 30, 2025, and August 31, 2025. We also maintain certain uncommitted bilateral facilities to support our working capital needs.
We have a receivables and loans securitization facility ("Securitization Facility") with certain unaffiliated financial institutions ("Purchasers"). Under the Securitization Facility, we and certain of our subsidiaries ("Originators") sell trade accounts and notes receivable ("Receivables") to Cofina Funding, LLC ("Cofina"), a wholly-owned, bankruptcy-remote, indirect subsidiary of CHS. Cofina in turn transfers the Receivables to the Purchasers, and this arrangement is accounted for as secured financing. We use the proceeds from the sale of Receivables under the Securitization Facility for general corporate purposes, and settlements are made on a monthly basis. The amount available under the Securitization Facility fluctuates over time based on the total amount of eligible Receivables generated during the normal course of business. The Securitization Facility consists of a committed portion with a maximum availability of $850.0 million and an uncommitted portion with a maximum availability of $250.0 million. As of November 30, 2025, total availability under the Securitization Facility was $809.0 million, of which $800.0 million was utilized. As of August 31, 2025, total availability under the Securitization Facility was $802.6 million, of which $296.0 million was utilized.
We also have a repurchase facility ("Repurchase Facility"). Under the Repurchase Facility, we can obtain repurchase agreement financing up to $250.0 million for certain eligible receivables and notes receivables of the Originators. As of November 30, 2025, total availability under the Repurchase Facility was $250.0 million, of which $250.0 million was utilized. As of August 31, 2025, $159.7 million was utilized.
We have a $300.0 million revolving term loan facility (the "Facility") which can be paid down and readvanced in an amount up to the referenced $300.0 million until October 29, 2026. On October 29, 2026, the total funded loan balance outstanding will revert to a nonrevolving term loan that is payable on October 29, 2029. As of November 30, 2025, and August 31, 2025, there were no amounts outstanding under this Facility. Subsequent to November 30, 2025, we drew $300.0 million on this Facility for long-term capital planning purposes and utilized the proceeds to reduce short-term amounts outstanding.
The following table presents summarized long-term debt (including the current portion) as of November 30, 2025, and August 31, 2025.
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| November 30,
2025 | | August 31,
2025 |
| | (Dollars in thousands) |
| Private placement debt | $ | 1,783,000 | | | $ | 1,783,000 | |
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| Finance lease liabilities | 49,526 | | | 55,198 | |
| Deferred financing costs | (3,908) | | | (3,894) | |
| Other | 1,464 | | | 1,529 | |
| Total long-term debt | 1,830,082 | | | 1,835,833 | |
| Less current portion | 89,882 | | | 90,447 | |
| Long-term portion | $ | 1,740,200 | | | $ | 1,745,386 | |
Interest expense for the three months ended November 30, 2025 and 2024, was $37.4 million and $27.6 million, respectively, net of capitalized interest of $7.3 million and $7.5 million, respectively.
Note 7 Income Taxes
Our effective tax rate for the three months ended November 30, 2025, was 4.3%, compared to 5.1% for the three months ended November 30, 2024. Our income tax expense reflects the mix of full-year earnings projected across business units and current equity assumptions. Income taxes and effective tax rates vary each year based on profitability, changes in tax law, income tax credits and patronage business activity.
Our uncertain tax positions are affected by the tax years that are under audit or remain subject to examination by the relevant taxing authorities. Reserves are recorded against unrecognized tax benefits when we believe certain fully supportable tax return positions are likely to be challenged, and we may not prevail. If we were to prevail on all positions taken in relation to uncertain tax positions, $101.2 million and $96.5 million of the unrecognized tax benefits would ultimately benefit our effective tax rate as of November 30, 2025, and August 31, 2025, respectively. It is reasonably possible that the total amount of unrecognized tax benefits could change significantly in the next 12 months.
Note 8 Equities
Changes in Equities
Changes in equities for the three months ended November 30, 2025 and 2024, are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Equity Certificates | | | | Accumulated
Other
Comprehensive
Loss | | | | | | |
| Capital
Equity
Certificates | | Nonpatronage
Equity
Certificates | | Nonqualified Equity Certificates | | Preferred
Stock | | | Capital
Reserves | | Noncontrolling
Interests | | Total
Equities |
| | (Dollars in thousands) |
| Balances, August 31, 2025 | $ | 3,743,060 | | | $ | 26,888 | | | $ | 2,333,657 | | | $ | 2,264,038 | | | $ | (306,372) | | | $ | 3,015,424 | | | $ | 3,479 | | | $ | 11,080,174 | |
| Reversal of prior fiscal year redemption estimates | 13,759 | | | — | | | — | | | — | | | — | | | — | | | — | | | 13,759 | |
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Redemptions of equities | (9,980) | | | (74) | | | (3,705) | | | — | | | — | | | — | | | — | | | (13,759) | |
Preferred stock dividends | — | | | — | | | — | | | — | | | — | | | (84,334) | | | — | | | (84,334) | |
Other, net | 8,192 | | | (498) | | | (7,502) | | | — | | | — | | | (16,213) | | | 24 | | | (15,997) | |
| Net income (loss) | — | | | — | | | — | | | — | | | — | | | 260,483 | | | (26) | | | 260,457 | |
| Other comprehensive income, net of tax | — | | | — | | | — | | | — | | | 16,015 | | | — | | | — | | | 16,015 | |
| Estimated 2026 cash patronage refunds | — | | | — | | | — | | | — | | | — | | | (12,373) | | | — | | | (12,373) | |
| Estimated 2026 equity redemptions | (37,120) | | | — | | | — | | | — | | | — | | | — | | | — | | | (37,120) | |
| Balances, November 30, 2025 | $ | 3,717,911 | | | $ | 26,316 | | | $ | 2,322,450 | | | $ | 2,264,038 | | | $ | (290,357) | | | $ | 3,162,987 | | | $ | 3,477 | | | $ | 11,206,822 | |
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| | Equity Certificates | | | | Accumulated
Other
Comprehensive
Loss | | | | | | |
| Capital
Equity
Certificates | | Nonpatronage
Equity
Certificates | | Nonqualified Equity Certificates | | Preferred
Stock | | | Capital
Reserves | | Noncontrolling
Interests | | Total
Equities |
| | (Dollars in thousands) |
| Balances, August 31, 2024 | $ | 3,753,343 | | | $ | 27,261 | | | $ | 2,201,765 | | | $ | 2,264,038 | | | $ | (296,542) | | | $ | 2,805,526 | | | $ | 6,533 | | | $ | 10,761,924 | |
| Reversal of prior fiscal year redemption estimates | 9,831 | | | — | | | — | | | — | | | — | | | — | | | — | | | 9,831 | |
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Redemptions of equities | (7,138) | | | (156) | | | (2,537) | | | — | | | — | | | — | | | — | | | (9,831) | |
Preferred stock dividends | — | | | — | | | — | | | — | | | — | | | (84,334) | | | — | | | (84,334) | |
Other, net | (5) | | | — | | | — | | | — | | | — | | | 2,859 | | | (1,367) | | | 1,487 | |
| Net income | — | | | — | | | — | | | — | | | — | | | 244,790 | | | 803 | | | 245,593 | |
| Other comprehensive loss, net of tax | — | | | — | | | — | | | — | | | (8,260) | | | — | | | — | | | (8,260) | |
| Estimated 2025 cash patronage refunds | — | | | — | | | — | | | — | | | — | | | (49,011) | | | — | | | (49,011) | |
| Estimated 2025 equity redemptions | (49,011) | | | — | | | — | | | — | | | — | | | — | | | — | | | (49,011) | |
| Balances, November 30, 2024 | $ | 3,707,020 | | | $ | 27,105 | | | $ | 2,199,228 | | | $ | 2,264,038 | | | $ | (304,802) | | | $ | 2,919,830 | | | $ | 5,969 | | | $ | 10,818,388 | |
Preferred Stock Dividends
The following table presents a summary of dividends declared per share by series of preferred stock for the three months ended November 30, 2025 and 2024.
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| | | Three Months Ended November 30, | | |
| Nasdaq symbol | | 2025 | | 2024 | | | | |
| Series of preferred stock: | | | (Dollars per share) |
| 8% Cumulative Redeemable | CHSCP | | $ | 1.00 | | | $ | 1.00 | | | | | |
| Class B Cumulative Redeemable, Series 1 | CHSCO | | $ | 0.98 | | | $ | 0.98 | | | | | |
| Class B Reset Rate Cumulative Redeemable, Series 2 | CHSCN | | $ | 0.88 | | | $ | 0.88 | | | | | |
| Class B Reset Rate Cumulative Redeemable, Series 3 | CHSCM | | $ | 0.84 | | | $ | 0.84 | | | | | |
| Class B Cumulative Redeemable, Series 4 | CHSCL | | $ | 0.94 | | | $ | 0.94 | | | | | |
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) by component for the three months ended November 30, 2025 and 2024, are as follows:
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| Pension and Other Postretirement Benefits | | Cash Flow Hedges | | Foreign Currency Translation Adjustment | | Total |
| (Dollars in thousands) |
| Balance as of August 31, 2025, net of tax | $ | (199,578) | | | $ | 2,763 | | | $ | (109,557) | | | $ | (306,372) | |
| Other comprehensive income (loss), before tax: | | | | | | | |
| Amounts before reclassifications | — | | | 1,240 | | | 14,916 | | | 16,156 | |
| Amounts reclassified | 3,032 | | | (2,904) | | | — | | | 128 | |
| Total other comprehensive income (loss), before tax | 3,032 | | | (1,664) | | | 14,916 | | | 16,284 | |
| Tax effect | (736) | | | 404 | | | 63 | | | (269) | |
| Other comprehensive income (loss), net of tax | 2,296 | | | (1,260) | | | 14,979 | | | 16,015 | |
| Balance as of November 30, 2025, net of tax | $ | (197,282) | | | $ | 1,503 | | | $ | (94,578) | | | $ | (290,357) | |
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| Pension and Other Postretirement Benefits | | Cash Flow Hedges | | Foreign Currency Translation Adjustment | | Total |
| (Dollars in thousands) |
| 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 | — | | | 6,200 | | | (11,913) | | | (5,713) | |
| Amounts reclassified | 2,805 | | | (4,238) | | | — | | | (1,433) | |
| Total other comprehensive income (loss), before tax | 2,805 | | | 1,962 | | | (11,913) | | | (7,146) | |
| Tax effect | (687) | | | (481) | | | 54 | | | (1,114) | |
| Other comprehensive income (loss), net of tax | 2,118 | | | 1,481 | | | (11,859) | | | (8,260) | |
| Balance as of November 30, 2024, net of tax | $ | (193,855) | | | $ | 3,258 | | | $ | (114,205) | | | $ | (304,802) | |
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 include amortization of net actuarial loss, prior service credit and transition amounts and are recorded as cost of goods sold and marketing, general and administrative expenses (see Note 9, Benefit Plans, for further information). As described in Note 11, Derivative Financial Instruments and Hedging Activities, amounts reclassified from accumulated other comprehensive income (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.
Note 9 Benefit Plans
We have various pension and other defined benefit and defined contribution plans, in which substantially all employees may participate. We also have nonqualified supplemental executive and Board of Directors retirement plans.
Components of net periodic benefit costs for the three months ended November 30, 2025 and 2024, are as follows:
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| Three Months Ended November 30, |
| Qualified
Pension Benefits | | Nonqualified
Pension Benefits | | Other Benefits |
| | 2025 | | 2024 | | 2025 | | 2024 | | 2025 | | 2024 |
| Components of net periodic benefit costs: | (Dollars in thousands) |
| Service cost | $ | 11,348 | | | $ | 10,932 | | | $ | 831 | | | $ | 757 | | | $ | 210 | | | $ | 211 | |
| Interest cost | 9,027 | | | 8,725 | | | 335 | | | 289 | | | 281 | | | 285 | |
| Expected return on assets | (12,579) | | | (11,744) | | | — | | | — | | | — | | | — | |
| Prior service cost (credit) amortization | (149) | | | 50 | | | (8) | | | (12) | | | (111) | | | (111) | |
| Actuarial loss (gain) amortization | 4,125 | | | 3,204 | | | 246 | | | 200 | | | (299) | | | (309) | |
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| Net periodic benefit cost | $ | 11,772 | | | $ | 11,167 | | | $ | 1,404 | | | $ | 1,234 | | | $ | 81 | | | $ | 76 | |
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Employer Contributions
Contributions depend primarily on market returns on the pension plan assets and minimum funding level requirements. No contributions were made to the pension plans during the three months ended November 30, 2025, and we do not anticipate being required to make contributions to our pension plans in fiscal 2026, although we may voluntarily elect to do so.
Note 10 Segment Reporting
We are an integrated agricultural cooperative, providing grain, food, agronomy and energy resources to businesses and consumers on a global basis. We provide a wide variety of products and services, from initial agricultural inputs such as fuels, farm supplies, crop nutrients and crop protection products, to agricultural outputs that include grain and oilseed, processed grain and oilseed, renewable fuels and food products.
Effective September 1, 2025, we implemented a new product-line operating model, which changed the manner in which our chief operating decision maker ("CODM"), our Chief Executive Officer, evaluates performance and allocates resources in managing the business. As a result of this change, all prior period segment information has been recast to conform to the current year presentation. We define our operating segments in accordance with ASC Topic 280, Segment Reporting, and have three reportable segments: Energy, Grains and Agronomy. The primary measure of segment profit or loss used by our CODM to regularly evaluate financial performance, make key operating decisions and determine resource allocation of and among each operating segment is Income before Income Taxes ("IBIT"). Our CODM regularly reviews discrete financial information, including IBIT, that compares actual results to the prior period, current period budget and current period forecast by each reportable segment. We have identified our significant segment expenses as cost of goods sold ("COGS") and marketing, general and administrative expenses ("MG&A"). Total assets is not a measure by which the CODM assesses our performance or allocates resources, and asset information is therefore not included within our segment reporting disclosures.
•The Energy segment consists of our wholesale and retail activities within the refined fuels, propane and lubricants product lines. The refined fuels product line includes petroleum refining, pipelines and terminals and markets gasoline, diesel fuel and renewable fuels under the Cenex® brand to member cooperatives and other independent retailers. The lubricants product line includes the blending, sale and distribution of primarily Cenex® brand lubricants, and the propane product line markets propane and other natural gas liquids through wholesale and retail market channels. Previously, this segment included our transportation services business, which is now reported under Corporate and Services.
•The Grains segment comprises our global grain marketing and processing activities as part of the feed grains, oilseeds, wheat, specialty grains and animal nutrition product lines. The Grains segment connects producers to domestic and global grain markets through a broad origination and distribution network. It markets commodities such as wheat, corn, ethanol, soybeans, oilseeds and specialty grains. The segment operates grain facilities and trading offices across five continents, serving processors, food manufacturers and renewable fuel producers. Further, the Grains segment produces ethanol and is one of the nation's largest suppliers of ethanol inputs into gasoline products, while also specializing in soybean and canola processing. These results had been included within the former Ag segment.
•The Agronomy segment consists of our wholesale and retail agronomy activities within the crop nutrients and crop protection product lines. The Agronomy segment provides crop inputs and agronomy services to farmers, member cooperatives and retailers. It offers crop nutrients, crop protection products and seed, including both proprietary and third-party brands. The Agronomy segment also includes our Nitrogen Production business consisting of our equity method investment in CF Nitrogen. Our supply agreement with CF Nitrogen requires us to purchase a specified quantity of granular urea and urea ammonium nitrate annually from CF Nitrogen. These results had been included within the former Ag and Nitrogen Production segments.
•Our ag retail business, which was included in our former Ag segment, is now incorporated into the Energy, Grains and Agronomy segments based on the specific products sold and their relevant product lines.
The Company's remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified within Corporate and Services. Corporate and Services primarily represents our financing and hedging businesses, which provide services to our members and consist of a financial services business and a U.S. Commodity Futures Trading Commission-regulated futures commission merchant ("FCM") for agricultural commodities hedging. Our nonconsolidated investments in Ventura Foods, LLC, and Ardent Mills, LLC ("Ardent Mills"), are also included in our Corporate and Services category. All other nonconsolidated investments are included in our Energy, Grains and Agronomy segments.
Corporate administrative expenses and interest are allocated to each reportable segment and Corporate and Services, based on direct use of services, such as information technology and legal, and other factors or considerations relevant to the costs incurred.
Many of our business activities are highly seasonal and our operating results vary throughout the year. Our revenues and IBIT generally trend lower during the second fiscal quarter and increase in the third fiscal quarter. Our retail business, which offers products and services across the Energy, Grains and Agronomy segments, primarily experiences higher volumes and revenues during the fall harvest and spring planting seasons, which generally correspond to our first and third fiscal quarters, respectively, and our global grain and processing operations within Grains are subject to fluctuations in volume and revenues based on producer harvests, world grain prices, demand and international trade relationships. Additionally, our Agronomy segment generally experiences higher volumes and revenues during the spring planting season. Our Energy segment typically experiences higher volumes and revenues in certain operating areas, such as refined fuel products, in the spring, summer and early fall when gasoline and diesel fuel use by agricultural producers is highest and is subject to global supply and demand forces. Other energy products, such as propane, generally experience higher volumes and revenues during the winter heating and fall crop-drying seasons.
Our revenues, assets and cash flows can be significantly affected by global market prices for commodities such as petroleum products, natural gas, grain, oilseed, crop nutrients, edible oils and flour. Changes in market prices for commodities that we purchase without a corresponding change in the selling prices of those products can affect revenues and operating earnings. Commodity prices are affected by a wide range of factors beyond our control, including weather; crop damage due to plant disease or insects; drought; availability and adequacy of supply; demand variability; availability of reliable rail, river, truck and ocean transportation networks; outbreaks of disease; government regulations and policies; global trade disputes; global competition; wars and civil unrest; and general political and economic conditions.
While our revenues and operating results are derived primarily from businesses and operations that are wholly owned or subsidiaries and limited liability companies in which we have a controlling interest, a portion of our business operations are conducted through companies in which we do not have a controlling interest or do not control the operations. We account for these investments primarily using the equity method of accounting, wherein we record our proportionate share of income or loss reported by the entity as equity income from investments, without consolidating the revenues and expenses of the entity in our Condensed Consolidated Statements of Operations. In our Agronomy segment, this primarily consists of our approximate 8.38% membership interest (based on product tons) in CF Nitrogen. In Corporate and Services, this principally includes our 50% ownership in Ventura Foods and our 12% ownership in Ardent Mills. See Note 5, Investments, for more information related to our equity method investments.
Reconciling amounts represent the elimination of revenues between segments. Such transactions are executed at market prices to more accurately evaluate the profitability of the individual business segments.
Segment information for the three months ended November 30, 2025 and 2024, is presented in the tables below.
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| Energy | | Grains | | Agronomy | | Total Reportable Segments | | Corporate
and Services | | Reconciling
Amounts | | Total | | |
Three Months Ended
November 30, 2025 | (Dollars in thousands) | | |
| Revenues, including intersegment revenues | $ | 2,367,788 | | | $ | 5,218,901 | | | $ | 1,244,511 | | | $ | 8,831,200 | | | $ | 80,392 | | | $ | (47,488) | | | $ | 8,864,104 | | | |
| Intersegment revenues | (2,911) | | | (3,547) | | | (6,506) | | | (12,964) | | | (34,524) | | | 47,488 | | | — | | | |
Revenues, net of intersegment revenues | $ | 2,364,877 | | | $ | 5,215,354 | | | $ | 1,238,005 | | | $ | 8,818,236 | | | $ | 45,868 | | | $ | — | | | $ | 8,864,104 | | | |
| Cost of goods sold (a) | 2,128,540 | | | 5,127,842 | | | 1,197,847 | | | 8,454,229 | | | 20,523 | | | — | | | 8,474,752 | | | |
| Marketing, general and administrative expenses | 81,498 | | | 92,145 | | | 76,480 | | | 250,123 | | | 17,997 | | | — | | | 268,120 | | | |
| Interest expense | (721) | | | 25,215 | | | 23,342 | | | 47,836 | | | 498 | | | (10,983) | | | 37,351 | | | |
| Other losses (income) | 111 | | | (38,357) | | | (2,269) | | | (40,515) | | | (5,324) | | | 10,983 | | | (34,856) | | | |
| Equity (income) losses from investments | 3,102 | | | (27,733) | | | (94,199) | | | (118,830) | | | (34,621) | | | — | | | (153,451) | | | |
| Income before income taxes | $ | 152,347 | | | $ | 36,242 | | | $ | 36,804 | | | $ | 225,393 | | | $ | 46,795 | | | $ | — | | | $ | 272,188 | | | |
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| Capital expenditures (b) | $ | 22,964 | | | $ | 69,593 | | | $ | 9,051 | | | $ | 101,608 | | | $ | 18,374 | | | $ | — | | | $ | 119,982 | | | |
| Depreciation and amortization | $ | 101,579 | | | $ | 45,821 | | | $ | 19,979 | | | $ | 167,379 | | | $ | 3,457 | | | $ | — | | | $ | 170,836 | | | |
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| Energy | | Grains | | Agronomy | | Total Reportable Segments | | Corporate
and Services | | Reconciling
Amounts | | Total | | |
Three Months Ended
November 30, 2024 | (Dollars in thousands) | | |
| Revenues, including intersegment revenues | $ | 2,300,405 | | | $ | 5,679,859 | | | $ | 1,264,203 | | | $ | 9,244,467 | | | $ | 92,195 | | | $ | (42,550) | | | $ | 9,294,112 | | | |
| Intersegment revenues | (3,935) | | | (687) | | | (169) | | | (4,791) | | | (37,759) | | | 42,550 | | | — | | | |
Revenues, net of intersegment revenues | $ | 2,296,470 | | | $ | 5,679,172 | | | $ | 1,264,034 | | | $ | 9,239,676 | | | $ | 54,436 | | | $ | — | | | $ | 9,294,112 | | | |
| Cost of goods sold (a) | 2,203,705 | | | 5,454,251 | | | 1,208,053 | | | 8,866,009 | | | 27,427 | | | — | | | 8,893,436 | | | |
| Marketing, general and administrative expenses | 82,949 | | | 93,109 | | | 66,733 | | | 242,791 | | | 20,059 | | | — | | | 262,850 | | | |
| Interest expense | (2,066) | | | 10,021 | | | 24,608 | | | 32,563 | | | 844 | | | (5,759) | | | 27,648 | | | |
| Other income | (4,527) | | | (11,195) | | | (8,893) | | | (24,615) | | | (7,508) | | | 5,759 | | | (26,364) | | | |
| Equity (income) loss from investments | 685 | | | (34,014) | | | (54,574) | | | (87,903) | | | (34,392) | | | — | | | (122,295) | | | |
| Income before income taxes | $ | 15,724 | | | $ | 167,000 | | | $ | 28,107 | | | $ | 210,831 | | | $ | 48,006 | | | $ | — | | | $ | 258,837 | | | |
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| Capital expenditures (b) | $ | 87,604 | | | $ | 95,478 | | | $ | 17,890 | | | $ | 200,972 | | | $ | 2,761 | | | $ | — | | | $ | 203,733 | | | |
| Depreciation and amortization | $ | 86,585 | | | $ | 46,218 | | | $ | 13,197 | | | $ | 146,000 | | | $ | 1,684 | | | $ | — | | | $ | 147,684 | | | |
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(a) Cost of goods sold is presented net of intersegment cost of goods sold.
(b) Includes amounts related to acquisition of property, plant and equipment and expenditures for major maintenance.
Note 11 Derivative Financial Instruments and Hedging Activities
We enter into various derivative instruments to manage our exposure to movements primarily associated with agricultural and energy commodity prices and, to a lesser degree, foreign currency exchange rates. Except for certain cash-settled swaps related to future crude oil purchases and refined product sales, which are accounted for as cash flow hedges, our derivative instruments represent economic hedges of price risk for which hedge accounting under ASC Topic 815 is not applied. Rather, the derivative instruments are recorded on our Condensed Consolidated Balance Sheets at fair value with changes in fair value being recorded directly to earnings, primarily within cost of goods sold in our Condensed Consolidated Statements of Operations. See Note 12, Fair Value Measurements, for additional information. The majority of our exchange-traded agricultural commodity futures are settled daily through CHS Hedging, LLC, our wholly-owned FCM.
Derivative assets and liabilities with maturities of less than 12 months are recorded in other current assets and other current liabilities, respectively, on our Condensed Consolidated Balance Sheets. The amount of current derivative assets recorded on our Condensed Consolidated Balance Sheets as of November 30, 2025, and August 31, 2025, was $218.8 million and $177.2 million, respectively. The amount of current derivative liabilities recorded on our Condensed Consolidated Balance Sheets as of November 30, 2025, and August 31, 2025, was $227.1 million and $178.0 million, respectively. Derivative assets and liabilities with maturities greater than 12 months are recorded in other assets and other liabilities, respectively, on our Condensed Consolidated Balance Sheets. The amount of long-term derivative assets recorded on our Condensed Consolidated Balance Sheets as of November 30, 2025, and August 31, 2025, was $3.1 million and $2.0 million, respectively. The amount of long-term derivative liabilities recorded on our Condensed Consolidated Balance Sheets as of November 30, 2025, and August 31, 2025, was $1.5 million and $1.7 million, respectively.
Derivatives Not Designated as Hedging Instruments
The following tables present the gross fair values of derivative assets, derivative liabilities and related margin deposits (cash collateral) recorded on our Condensed Consolidated Balance Sheets, along with related amounts permitted to be offset in accordance with U.S. GAAP. Although we have certain netting arrangements for our exchange-traded futures and options contracts and certain over-the-counter ("OTC") contracts, we have elected to report our derivative instruments on a gross basis on our Condensed Consolidated Balance Sheets under ASC Topic 210-20, Balance Sheet-Offsetting. | | | | | | | | | | | | | | | | | | | | | | | |
| November 30, 2025 |
| | | Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting | | |
| Gross Amount Recognized | | Cash Collateral | | Derivative Instruments | | Net Amount |
| Derivative assets | (Dollars in thousands) |
| | | | | | | |
| Commodity derivatives | $ | 177,541 | | | $ | — | | | $ | 25,955 | | | $ | 151,586 | |
| Foreign exchange derivatives | 40,635 | | | — | | | 4,832 | | | 35,803 | |
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| Total | $ | 218,176 | | | $ | — | | | $ | 30,787 | | | $ | 187,389 | |
| Derivative liabilities | | | | | | | |
| Commodity derivatives | $ | 212,373 | | | $ | 500 | | | $ | 25,955 | | | $ | 185,918 | |
| Foreign exchange derivatives | 14,316 | | | — | | | 4,832 | | | 9,484 | |
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| Total | $ | 226,689 | | | $ | 500 | | | $ | 30,787 | | | $ | 195,402 | |
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| August 31, 2025 |
| | | Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting | | |
| Gross Amount Recognized | | Cash Collateral | | Derivative Instruments | | Net Amount |
| Derivative assets | (Dollars in thousands) |
| | | | | | | |
| Commodity derivatives | $ | 130,491 | | | $ | — | | | $ | 10,715 | | | $ | 119,776 | |
| Foreign exchange derivatives | 43,527 | | | — | | | 9,379 | | | 34,148 | |
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| Total | $ | 174,018 | | | $ | — | | | $ | 20,094 | | | $ | 153,924 | |
| Derivative liabilities | | | | | | | |
| Commodity derivatives | $ | 166,122 | | | $ | 232 | | | $ | 10,715 | | | $ | 155,175 | |
| Foreign exchange derivatives | 11,771 | | | — | | | 9,379 | | | 2,392 | |
| Total | $ | 177,893 | | | $ | 232 | | | $ | 20,094 | | | $ | 157,567 | |
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 months ended November 30, 2025 and 2024.
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| | | Three Months Ended November 30, | | |
| Location of Gain (Loss) | | 2025 | | 2024 | | | | |
| | | (Dollars in thousands) |
| Commodity derivatives | Cost of goods sold | | $ | (12,836) | | | $ | 72,456 | | | | | |
| Foreign exchange derivatives | Cost of goods sold | | (6,004) | | | (8,841) | | | | | |
| Foreign exchange derivatives | Marketing, general and administrative expenses | | 232 | | | (2,259) | | | | | |
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| Total | | $ | (18,608) | | | $ | 61,356 | | | | | |
Commodity Contracts
As of November 30, 2025, and August 31, 2025, we had outstanding commodity futures and options contracts that were used as economic hedges, as well as fixed-price forward contracts related to physical purchases and sales of commodities. The table below presents the notional volumes for all outstanding commodity contracts.
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| | November 30, 2025 | | August 31, 2025 |
| Long | | Short | | Long | | Short |
| | (Units in thousands) |
| Grain and oilseed (bushels) | 486,431 | | | 958,782 | | | 468,345 | | 702,025 |
| Energy products (barrels) | 18,359 | | | 16,341 | | | 10,059 | | 6,687 |
| Processed grain and oilseed (tons) | 1,279 | | | 2,648 | | | 1,168 | | 2,429 |
| Crop nutrients (tons) | 31 | | | 39 | | | 29 | | 32 |
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| Natural gas (metric million Btu) | 480 | | | — | | | 180 | | — |
Foreign Exchange Contracts
We conduct a substantial portion of our business in U.S. dollars, but we are exposed to risks relating to foreign currency fluctuations, primarily due to global grain marketing transactions in South America, the Asia Pacific region and Europe and purchases of products from Canada. We use foreign currency derivative instruments to mitigate the impact of exchange rate fluctuations. Although CHS has some risk exposure relating to foreign currency transactions, a larger impact with exchange rate fluctuations is the ability of foreign buyers to purchase U.S. agricultural products and the competitiveness of U.S. agricultural products compared to the same products offered by alternative sources of world supply. The notional amount of our foreign exchange derivative contracts was $1.7 billion at both November 30, 2025, and August 31, 2025.
Derivatives Designated as Cash Flow Hedging Strategies
Certain pay-fixed, receive-variable, cash-settled swaps are designated as cash flow hedges of future crude oil purchases in our Energy segment. We also designate certain pay-variable, receive-fixed, cash-settled swaps as cash flow hedges of future refined energy product sales. These hedging instruments and the related hedged items are exposed to significant market price risk and potential volatility. As part of our risk management strategy, we look to hedge a portion of our expected future crude oil needs and the resulting refined product output based on prevailing futures prices, management's expectations about future commodity price changes and our risk appetite. We may also elect to dedesignate certain derivative instruments previously designated as cash flow hedges as part of our risk management strategy. Amounts recorded in other comprehensive income for these dedesignated derivative instruments remain in other comprehensive income and are recognized in earnings in the period in which the underlying transactions affect earnings. The aggregate notional amounts of cash flow hedges were 3.0 million and 5.1 million barrels as of November 30, 2025, and August 31, 2025, respectively.
The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the locations on our Condensed Consolidated Balance Sheets in which they are recorded.
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| | Derivative Assets | | | | Derivative Liabilities |
| Balance Sheet Location | | November 30,
2025 | | August 31,
2025 | | Balance Sheet Location | | November 30,
2025 | | August 31,
2025 |
| | (Dollars in thousands) | | | | (Dollars in thousands) |
| Other current assets | | $ | 3,769 | | | $ | 5,197 | | | Other current liabilities | | $ | 1,940 | | | $ | 1,786 | |
The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three months ended November 30, 2025 and 2024.
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| | Three Months Ended November 30, | | |
| | 2025 | | 2024 | | | | |
| | | (Dollars in thousands) |
| Commodity derivatives | | $ | (1,582) | | | $ | 1,823 | | | | | |
The following table presents the pretax gains relating to our existing cash flow hedges that were reclassified from accumulated other comprehensive loss into our Condensed Consolidated Statements of Operations for the three months ended November 30, 2025 and 2024.
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| | | Three Months Ended November 30, | | |
| Location of Gain | | 2025 | | 2024 | | | | |
| | | | (Dollars in thousands) |
| Commodity derivatives | Cost of goods sold | | $ | 3,195 | | | $ | 4,529 | | | | | |
Note 12 Fair Value Measurements
ASC Topic 820, Fair Value Measurement, defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction among the market participants on the measurement date.
We determine fair values of derivative instruments and certain other assets based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize use of observable inputs and minimize use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. ASC Topic 820 describes three levels within its hierarchy that may be used to measure fair value. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 inputs are unobservable inputs that are supported by little or no market activity for the assets or liabilities. Categorization within the valuation hierarchy is based on the lowest level of input significant to the fair value measurement.
Recurring fair value measurements as of November 30, 2025, and August 31, 2025, are as follows:
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| November 30, 2025 |
| Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Total |
| Assets | (Dollars in thousands) |
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| Commodity derivatives | $ | 2,177 | | | $ | 179,133 | | | $ | — | | | $ | 181,310 | |
| Foreign exchange derivatives | — | | | 40,635 | | | — | | | 40,635 | |
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| Segregated investments and marketable securities | 38,502 | | | 125,553 | | | — | | | 164,055 | |
| Time deposits | — | | | 156,968 | | | — | | | 156,968 | |
| Money market funds | 250,003 | | | — | | | — | | | 250,003 | |
| Other assets | 33,093 | | | — | | | — | | | 33,093 | |
| Total | $ | 323,775 | | | $ | 502,289 | | | $ | — | | | $ | 826,064 | |
| Liabilities | | | | | | | |
| Commodity derivatives | $ | 1,634 | | | $ | 212,679 | | | $ | — | | | $ | 214,313 | |
| Foreign exchange derivatives | — | | | 14,316 | | | — | | | 14,316 | |
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| Total | $ | 1,634 | | | $ | 226,995 | | | $ | — | | | $ | 228,629 | |
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| August 31, 2025 |
| Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Total |
| Assets | (Dollars in thousands) |
| | | | | | | |
| Commodity derivatives | $ | 3,153 | | | $ | 132,535 | | | $ | — | | | $ | 135,688 | |
| Foreign exchange derivatives | — | | | 43,527 | | | — | | | 43,527 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Segregated investments and marketable securities | 34,303 | | | 135,675 | | | — | | | 169,978 | |
| Money market funds | 78,393 | | | — | | | — | | | 78,393 | |
| Other assets | 32,139 | | | — | | | — | | | 32,139 | |
| Total | $ | 147,988 | | | $ | 311,737 | | | $ | — | | | $ | 459,725 | |
| Liabilities | | | | | | | |
| Commodity derivatives | $ | 1,110 | | | $ | 166,798 | | | $ | — | | | $ | 167,908 | |
| Foreign exchange derivatives | — | | | 11,771 | | | — | | | 11,771 | |
| | | | | | | |
| Total | $ | 1,110 | | | $ | 178,569 | | | $ | — | | | $ | 179,679 | |
Commodity and foreign exchange derivatives. Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. Our forward commodity purchase and sales contracts with fixed-price components, select ocean freight contracts and other OTC derivatives are determined using inputs that are generally based on exchange-traded prices and/or recent market bids and offers, including location-specific adjustments, and are classified within Level 2. Location-specific inputs are driven by local market supply and demand and are generally based on broker or dealer quotations or market transactions in either listed or OTC markets. Changes in the fair values of these contracts are recognized in our Condensed Consolidated Statements of Operations as a component of cost of goods sold.
Segregated investments and marketable securities. Our segregated investments and marketable securities are comprised primarily of investments in U.S. Treasury securities, common stock and various government agency obligations.
Time deposits, money market funds and other assets. Our time deposits, money market funds and other assets are comprised primarily of investments in foreign time deposits with original maturities greater than ninety days, money market sweep accounts and rabbi trust assets.
U.S. Treasury securities, common stock, money market sweep accounts and rabbi trust assets are valued using quoted market prices and classified within Level 1. Investments in time deposits and various government agency obligations are valued using quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and classified within Level 2.
Note 13 Commitments and Contingencies
Environmental
We are required to comply with various environmental laws and regulations applicable to our normal business operations. To meet our compliance requirements, we establish reserves for future costs of remediation associated with identified issues that are probable and can be reasonably estimated. Estimates of environmental costs are based on current available facts, existing technology, undiscounted site-specific costs and currently enacted laws and regulations and are included in cost of goods sold and marketing, general and administrative expenses in our Condensed Consolidated Statements of Operations. Recoveries, if any, are recorded in the period in which recovery is received. Liabilities are monitored and adjusted as new facts or changes in laws or technology occur. The resolution of any such matters may affect consolidated net income for any fiscal period; however, we currently believe any resulting liabilities, individually or in aggregate, will not have a material effect on our consolidated financial position, results of operations or cash flows for any fiscal year.
Other Litigation and Claims
We are involved as a defendant in various lawsuits, claims and disputes, which are in the normal course of our business. The resolution of any such matters may affect consolidated net income for any fiscal period; however, we currently
believe any resulting liabilities, individually or in aggregate, will not have a material effect on our consolidated financial position, results of operations or cash flows for any fiscal year.
Guarantees
We are a guarantor for lines of credit and performance obligations of related, nonconsolidated companies. Our bank covenants allow maximum guarantees of $1.1 billion, of which $115.7 million were outstanding on November 30, 2025. We have collateral for a portion of these contingent obligations. We have not recorded a liability related to the contingent obligations as we do not expect to pay out any cash related to them, and the fair values are considered immaterial. The underlying loans to the counterparties for which we provide these guarantees were current as of November 30, 2025.
Note 14 Other Current Assets and Liabilities
Other current assets and liabilities as of November 30, 2025, and August 31, 2025, are as follows: | | | | | | | | | | | |
| November 30,
2025 | | August 31,
2025 |
| Other current assets | (Dollars in thousands) |
| | | |
| Derivative assets (Note 11) | $ | 218,845 | | | $ | 177,231 | |
| Margin and related deposits | 200,458 | | | 183,817 | |
| Prepaid expenses | 185,240 | | | 204,826 | |
| Supplier advance payments | 302,112 | | | 104,866 | |
| Restricted cash | 82,827 | | | 71,434 | |
| Other | 219,875 | | | 59,416 | |
| Total other current assets | $ | 1,209,357 | | | $ | 801,590 | |
| Other current liabilities | | | |
| Customer margin deposits and credit balances | $ | 106,001 | | | $ | 94,148 | |
| Customer advance payments | 294,403 | | | 233,804 | |
| Derivative liabilities (Note 11) | 227,130 | | | 178,017 | |
| Dividends and equity payable | 148,408 | | | 120,000 | |
| Total other current liabilities | $ | 775,942 | | | $ | 625,969 | |
Note 15 Acquisitions
On January 2, 2025, we completed the acquisition of West Central Ag Services ("WCAS"), a cooperative based in Ulen, Minnesota, that offers grain and agronomy services at locations in west-central Minnesota. The cash purchase price was $322.6 million, which includes $108.0 million for working capital. Prior to completing this acquisition, we also held a 50% ownership interest in Central Plains Ag Services ("CPAS"), a joint venture between CHS and WCAS that operates in eastern North Dakota and is now a wholly owned subsidiary of CHS. By acquiring WCAS and the remaining 50% ownership of CPAS, we were able to expand our grain and agronomy platforms in west-central Minnesota and eastern North Dakota, as well as add value for our owners.
The acquisition-date fair value of the previous equity interest in CPAS was $28.9 million and is included in the measurement of consideration transferred. Allocation of the purchase price for this transaction resulted in $59.5 million for goodwill, which is nondeductible for tax purposes, and $62.5 million for definite-lived intangible assets. As this acquisition is not considered to have a material impact on our financial statements, pro forma results of operations are not presented. The acquisition resulted in fair value measurements that are not on a recurring basis and did not have a material impact on our consolidated results of operations. Purchase accounting has been finalized and the fair values assigned to the net assets acquired are as follows: | | | | | |
| (Dollars in thousands) |
| Cash | $ | 85,464 | |
| Other current assets | 350,754 | |
| Property, plant and equipment | 137,713 | |
| Goodwill | 59,465 | |
| Other intangible assets | 62,500 | |
| Other noncurrent assets | 8,109 | |
| Current liabilities | (316,474) | |
| Noncurrent liabilities | (37,075) | |
Total net assets acquired | $ | 350,456 | |
Operating results for WCAS are included in our Condensed Consolidated Statements of Operations from the day of the acquisition on January 2, 2025. WCAS revenues and income before income taxes were $18.0 million and $2.3 million, respectively, for the three months ended November 30, 2025.