CHS 2014 Annual Report Download - page 34

5NOV201416072770
FOR THE YEARS ENDED AUGUST 31 (DOLLARS IN THOUSANDS) 2014 2013 2012
Cash flows from operating activities:
Net income including noncontrolling interests $ 1,083,007 $ 996,328 $ 1,335,719
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 267,167 241,791 219,632
Amortization of deferred major repair costs 45,070 34,847 33,641
(Income) loss from equity investments (107,446) (97,350) (102,389)
Distributions from equity investments 79,685 62,761 75,468
Noncash patronage dividends received (16,452) (16,644) (10,461)
(Gain) loss on sale of property, plant and equipment 3,316 (6,234) (5,564)
(Gain) loss on investments (114,162) (182) 5,465
Unrealized (gain) loss on crack spread contingent liability (19,217) 23,109 22,328
Long-lived asset impairment 74,452 — —
Deferred taxes (24,397) 92,717 58,624
Other, net 7,777 5,714 481
Changes in operating assets and liabilities, net of acquisitions:
Receivables 110,133 (105,899) (376,860)
Inventories (37,792) 557,331 (252,842)
Derivative assets (123,132) 610,023 (185,930)
Margin deposits 39,861 812,616 (51,241)
Supplier advance payments 67,688 286,379 (131,636)
Other current assets and other assets (19,694) (36,749) (38,913)
Customer margin deposits and credit balances (34,051) (509,548) 56,177
Customer advance payments 164,021 (260,449) 61,978
Accounts payable and accrued expenses (164,616) 52,897 (167,025)
Derivative liabilities 134,925 (276,473) 111,481
Other liabilities 11,208 10,815 60,503
Net cash provided by (used in) operating activities 1,427,351 2,477,800 718,636
Cash flows from investing activities:
Acquisition of property, plant and equipment (943,888) (659,373) (468,611)
Proceeds from disposition of property, plant and equipment 11,724 7,727 27,839
Expenditures for major repairs (3,305) (73,701) (23,443)
Investments in joint ventures and other (80,140) (21,364) (94,757)
Investments redeemed 138,485 13,021 12,112
Changes in notes receivable (184,060) 211,935 19,040
Business acquisitions, net of cash acquired (281,490) (12,711) (166,033)
Other investing activities, net 1,092 (492) (342)
Net cash provided by (used in) investing activities (1,341,582) (534,958) (694,195)
Cash flows from financing activities:
Changes in notes payable 247,639 85,910 (27,561)
Long-term debt borrowings 1,426 280,000 —
Principal payments on long-term debt (157,770) (113,583) (96,619)
Mandatorily redeemable noncontrolling interest payments (65,981) (65,981) —
Payments for bank fees — (9,593) (12,390)
Payments on crack spread contingent liability (8,670) — —
Changes in checks and drafts outstanding (17,815) (20,392) 6,353
Distributions to noncontrolling interests (575) (1,442) (78,602)
Preferred stock issued 702,979 — —
Preferred stock issuance costs (23,672) (295) —
Preferred stock dividends paid (50,761) (24,544) (24,544)
Retirements of equities (99,609) (193,413) (145,722)
Cash patronage dividends paid (286,789) (380,947) (260,666)
Other financing activities, net 128 1,106 878
Net cash provided by (used in) financing activities 240,530 (443,174) (638,873)
Effect of exchange rate changes on cash and cash equivalents (1,624) (5,165) (9,224)
Net increase (decrease) in cash and cash equivalents 324,675 1,494,503 (623,656)
Cash and cash equivalents at beginning of period 1,808,532 314,029 937,685
Cash and cash equivalents at end of period $ 2,133,207 $ 1,808,532 $ 314,029
The accompanying notes are an integral part of the consolidated financial statements.
CHS Inc. and Subsidiaries
32 CHS 2014