CHS 2013 Annual Report Download - page 53

8NOV201319003672
We have international sales, which are predominantly in our Ag segment. The following table represents our sales,
based on the geographic locations in which the sales originated, for the years ended August 31, 2013, 2012 and 2011:
(DOLLARS IN MILLIONS) 2013 2012 2011
North America $ 39,918 $37,503 $35,287
South America 2,511 1,444 1,066
EMEA 1,040 1,064 277
APAC 680 290 6
$44,149 $40,301 $36,636
Fair Value Measurements
Accounting Standards Codification Topic (ASC) 820, the full term of the assets or liabilities. These assets and
Fair Value Measures and Disclosures (ASC 820) defines liabilities include marketable inventories, interest rate
fair value as the price that would be received for an asset swaps, forward commodity and freight purchase and
or paid to transfer a liability (an exit price) in a principal sales contracts, flat price or basis fixed derivative con-
or most advantageous market for the asset or liability in tracts and other OTC derivatives whose value is deter-
an orderly transaction between market participants on mined with inputs that are based on exchange traded
the measurement date. prices, adjusted for location specific inputs that are pri-
marily observable in the market or can be derived princi-
We determine fair market values of readily marketable pally from, or corroborated by, observable market data.
inventories, derivative contracts and certain other assets,
based on the fair value hierarchy established in ASC 820, Level 3: Values are generated from unobservable inputs
which requires an entity to maximize the use of observ- that are supported by little or no market activity and that
able inputs and minimize the use of unobservable inputs are a significant component of the fair value of the assets
when measuring fair value. Observable inputs are inputs or liabilities. These unobservable inputs would reflect our
that reflect the assumptions market participants would own estimates of assumptions that market participants
use in pricing the asset or liability based on the best infor- would use in pricing related assets or liabilities. Valuation
mation available in the circumstances. ASC 820 describes techniques might include the use of pricing models, dis-
three levels within its hierarchy that may be used to mea- counted cash flow models or similar techniques.
sure fair value, which are as follows:
The following table presents assets and liabilities,
Level 1: Values are based on unadjusted quoted prices included on our Consolidated Balance Sheets, that are
in active markets for identical assets or liabilities. These recognized at fair value on a recurring basis, and indi-
assets and liabilities include exchange traded derivative cates the fair value hierarchy utilized to determine such
contracts, Rabbi Trust investments, deferred compensa- fair value. Assets and liabilities are classified, in their
tion investments and available-for-sale investments. entirety, based on the lowest level of input that is a sig-
nificant component of the fair value measurement. The
Level 2: Values are based on quoted prices for similar lowest level of input is considered Level 3. Our assess-
assets or liabilities in active markets, quoted prices for ment of the significance of a particular input to the fair
identical or similar assets or liabilities in markets that are value measurement requires judgment, and may affect
not active, or other inputs that are observable or can be the classification of fair value assets and liabilities within
corroborated by observable market data for substantially the fair value hierarchy levels.
58 CHS 2013
ELEVEN: Segment Reporting, continued