CHS 2011 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2011 CHS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 65

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65

2011 CHS 41
NOTE 5
PROPERTY, PLANT AND EQUIPMENT
A summary of property, plant and equipment as of
August 31, 2011 and 2010 is as follows:
(DOLLARS IN THOUSANDS) 2011 2010
Land and land improvements $ 125,170 $ 118,337
Buildings 533,231 499,346
Machinery and equipment 3,481,046 3,072,866
Office and other 96,841 93,099
Construction in progress 257,940 359,933
4,494,228 4,143,581
Less accumulated depreciation
and amortization 2,074,014 1,890,510
$2,420,214 $2,253,071
Depreciation expense for the years ended August 31,
2011, 2010 and 2009, was $205.2 million, $187.5 million
and $180.9 million, respectively.
The Company is leasing certain of its wheat milling
facilities and related equipment to Horizon Milling, LLC
(Horizon Milling) under an operating lease agreement.
The net book value of the leased milling assets at
August 31, 2011 and 2010 was $53.9 million and
$59.3 million, respectively, net of accumulated depre-
ciation of $74.7 million and $69.7 million, respectively.
NOTE 6
OTHER ASSETS
Other assets as of August 31, 2011 and 2010 are as follows:
(DOLLARS IN THOUSANDS) 2011 2010
Goodwill $ 26,409 $ 23,038
Customer lists, less accumulated amortization
of $25,724 and $18,666, respectively 13,367 19,392
Non-compete covenants, less accumulated
amortization of $6,306 and $4,701,
respectively 3,462 4,950
Trademarks and other intangible assets,
less accumulated amortization of $14,731
and $16,489, respectively 15,891 17,794
Notes receivable 157,518 152,140
Long-term receivable 44,597 63,072
Prepaid pension and other benefits 103,008 57,729
Capitalized major maintenance 80,752 19,097
Other 18,478 19,984
$463,482 $377,196
During the years ended August 31, 2011 and 2010, the
Company had acquisitions in its Ag Business segment
which resulted in $3.4 million and $6.5 million of good-
will, respectively, reflecting the purchase price alloca-
tions. There were no dispositions resulting in a decrease
to goodwill during fiscal 2011. During the year ended
August 31, 2010, dispositions in the Company’s Energy
segment resulted in decreases in goodwill of $0.8 million.
There were no intangible assets acquired as part of
business acquisitions during fiscal 2011. During the year
ended August 31, 2010, intangible assets acquired
totaled $1.4 million and were from acquisitions in our
Ag Business segment. Various other cash acquisitions of
intangibles totaled $1.9 million and $1.0 million during
the years ended August 31, 2011 and 2010, respectively.
Intangible assets amortization expense for the years
ended August 31, 2011, 2010 and 2009, was $11.0 mil-
lion, $11.4 million and $12.2 million, respectively. The
estimated annual amortization expense related to intan-
gible assets subject to amortization for the next five
years is as follows:
Year 1 $ 9,888
Year 2 6,298
Year 3 3,847
Year 4 2,550
Year 5 2,130
Thereafter 8,007
$32,720
The capitalized major maintenance activity is as follows:
(DOLLARS IN
THOUSANDS)
BALANCE AT
BEGINNING
OF YEAR
COST
DEFERRED AMORTIZATION WRITE-OFFS
BALANCE AT
END OF YEAR
2011 $19,097 $92,129 $(30,474) $80,752
2010 30,075 7,554 (18,532) 19,097
2009 53,303 1,771 (24,999) 30,075