CHS 2013 Annual Report Download - page 38

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
and statements of operations for the twelve months We recorded the net $12.7 million pension plan asset as a
ended August 31, 2013, 2012 and 2011: non-cash dividend and recorded a $0.8 million pre-tax
loss related to the distribution.
(DOLLARS IN THOUSANDS) 2013 2012
Current assets $ 532,995 $ 574,925 TEMCO is owned and governed by Cargill (50%) and CHS
Non-current assets 503,369 459,070 (50%). During the year ended August 31, 2012, we entered
into an amended and restated agreement to expand the
Current liabilities 216,704 197,251
scope of the original agreement with Cargill. Pursuant to
Non-current liabilities 226,515 277,760
the terms of the agreement, CHS and Cargill each agreed
to commit to sell all of their feedgrains, wheat, oilseeds
(DOLLARS IN THOUSANDS) 2013 2012 2011
and by-product origination that are tributary to the
Net sales $ 2,541,483 $ 2,550,018 $ 2,350,895 Pacific Northwest, United States (Pacific Northwest) to
Gross profit 267,602 244,969 255,748 TEMCO and to use TEMCO as their exclusive export-mar-
Net earnings 106,405 94,586 105,754 keting vehicle for such grains exported through the
Earnings attributable Pacific Northwest for a term of 25 years. Cargill’s Tacoma,
to CHS Inc. 53,203 47,293 52,877 Washington facility will continue to be subleased to
TEMCO. We agreed to sublease our Kalama, Washington
During the year ended August 31, 2011, we sold all of our facility to TEMCO, and Cargill agreed to lease their Irving
45% ownership interest in Multigrain, AG to one of our facility in Portland, Oregon to TEMCO to provide TEMCO
joint venture partners, Mitsui & Co., Ltd., for $225.0 mil- with more capacity to conduct this business.
lion and recognized a pre-tax gain of $119.7 million.
The following provides combined financial information
Agriliance LLC (Agriliance) is owned and governed by for our major equity investments, excluding Ventura
CHS (50%) and Land O’Lakes, Inc. (50%). We account Foods, for balance sheets as of August 31, 2013 and
for our Agriliance investment using the equity method 2012, and statements of operations for the twelve
of accounting within Corporate and Other. Agriliance months ended August 31, 2013, 2012 and 2011:
has essentially ceased its business activities and prima-
(DOLLARS IN THOUSANDS) 2013 2012
rily holds long-term liabilities. During the year ended
Current assets $ 513,327 $ 631,335
August 31, 2011, we received $28.0 million of cash distri-
Non-current assets 248,809 158,675
butions from Agriliance as returns of capital for pro-
ceeds from the sale of many of the Agriliance retail Current liabilities 256,681 352,016
facilities, and the collection of receivables. We recorded Non-current liabilities 5,387 5,642
a pre-tax gain of $9.0 million during fiscal 2011 related to
these cash distributions. During the year ended (DOLLARS IN THOUSANDS) 2013 2012 2011
August 31, 2012, we made cash contributions of Net sales $ 5,388,248 $ 5,402,241 $ 8,399,779
$45.4 million to Agriliance, which were primarily used to Gross profit 200,353 225,680 406,338
fully fund the Agriliance Employee Retirement Plan
Net earnings 43,168 121,107 232,473
(Agriliance Plan). The Agriliance Plan assets and liabili-
Earnings attributable
ties were transferred to CHS and Land O’ Lakes, Inc.
to CHS Inc. 27,702 36,032 89,575
during fiscal 2012. CHS received pension plan assets and
liabilities of $97.2 million and $84.5 million, respectively.
CHS 2013 43