CHS INCCHSCP
CHS INC Segments Disclosure
Note 14 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. We define our operating segments in accordance with ASC Topic 280, Segment Reporting, and have three reportable segments: Energy, Ag and Nitrogen Production. This reflects the manner in which our chief operating decision maker ("CODM"), our Chief Executive Officer, evaluates performance and allocates resources in managing the business. 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 receives 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.
Our Energy segment produces and provides primarily for the wholesale distribution of petroleum products and transportation of those products. Our Ag segment purchases and further processes or resells grain and oilseed originated by our ag retail business, by our member cooperatives and by third parties; serves as a wholesaler and retailer of crop inputs; and produces and markets ethanol. Our Nitrogen Production segment consists of our equity method investment in CF Nitrogen that records earnings and allocated expenses but not revenues. Our supply agreement with CF Nitrogen entitles us to purchase up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Corporate and Other represents our financing and hedging businesses, which primarily consists of a U.S. Commodity Futures Trading Commission-regulated futures commission merchant ("FCM") for commodities hedging and financial services related to crop production. Our nonconsolidated investments in Ventura Foods and Ardent Mills are also included in our Corporate and Other category. All other nonconsolidated investments are included in our Energy and Ag segments.
Corporate administrative expenses and interest are allocated to each reportable segment and Corporate and Other, based on direct use of services, such as information technology and legal, and other factors or considerations relevant to the costs incurred. Capital expenditures and depreciation and amortization are presented in the table below before allocations from Corporate and Other to each reportable segment in alignment with reporting received by the CODM.
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. For example, in our Ag
segment, our ag retail business generally experiences higher volumes and revenues during the fall harvest and spring planting seasons, which generally correspond to our first and third fiscal quarters, respectively. Our agronomy business generally experiences higher volumes and revenues during the spring planting season. Our global grain and processing operations are subject to fluctuations in volume and revenues based on producer harvests, world grain prices, demand and international trade relationships. Our Energy segment generally experiences higher volumes and revenues in certain operating areas, such as refined 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; 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 Consolidated Statements of Operations. In our Ag segment, this includes our approximate 57% noncontrolling interest in Producer Ag. On October 10, 2025, we announced our mutual agreement with MKC to start the process of ending our joint venture with Producer Ag. In our Nitrogen Production segment, this consists of our approximate 8.38% membership interest (based on product tons) in CF Nitrogen. In Corporate and Other, this principally includes our 50% ownership in Ventura Foods and our 12% ownership in Ardent Mills. See Note 6, 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 years ended August 31, 2025, 2024 and 2023, is presented in the tables below.
| Energy | Ag | Nitrogen Production | Total Reportable Segments | Corporate and Other | Reconciling Amounts | Total | |||||||||||||||||||||||||||||||||||
| Year ended August 31, 2025 | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
| Revenues, including intersegment revenues | $ | 8,035,160 | $ | 27,755,290 | $ | — | $ | 35,790,450 | $ | 87,915 | $ | (415,757) | $ | 35,462,608 | |||||||||||||||||||||||||||
| Intersegment revenues | (400,127) | (6,809) | — | (406,936) | (8,821) | 415,757 | — | ||||||||||||||||||||||||||||||||||
| Revenues, net of intersegment revenues | $ | 7,635,033 | $ | 27,748,481 | $ | — | $ | 35,383,514 | $ | 79,094 | $ | — | $ | 35,462,608 | |||||||||||||||||||||||||||
Cost of goods sold (a) | 7,339,336 | 26,985,759 | 1,673 | 34,326,768 | (974) | — | 34,325,794 | ||||||||||||||||||||||||||||||||||
| Marketing, general and administrative expenses | 313,402 | 602,104 | 68,290 | 983,796 | 62,263 | — | 1,046,059 | ||||||||||||||||||||||||||||||||||
| Interest expense | (6,103) | 94,580 | 69,094 | 157,571 | 17,278 | (28,770) | 146,079 | ||||||||||||||||||||||||||||||||||
| Other income | (4,968) | (90,460) | (3,654) | (99,082) | (30,119) | 28,770 | (100,431) | ||||||||||||||||||||||||||||||||||
| Equity (income) losses from investments | 408 | (89,162) | (294,944) | (383,698) | (185,967) | — | (569,665) | ||||||||||||||||||||||||||||||||||
| (Loss) income before income taxes | $ | (7,042) | $ | 245,660 | $ | 159,541 | $ | 398,159 | $ | 216,613 | $ | — | $ | 614,772 | |||||||||||||||||||||||||||
| Capital expenditures (b) | $ | 533,570 | $ | 336,328 | $ | — | $ | 869,898 | $ | 130,057 | $ | — | $ | 999,955 | |||||||||||||||||||||||||||
| Depreciation and amortization | $ | 352,348 | $ | 243,098 | $ | — | $ | 595,446 | $ | 55,980 | $ | — | $ | 651,426 | |||||||||||||||||||||||||||
| Energy | Ag | Nitrogen Production | Total Reportable Segments | Corporate and Other | Reconciling Amounts | Total | |||||||||||||||||||||||||||||||||||
| Year ended August 31, 2024 | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
| Revenues, including intersegment revenues | $ | 9,339,079 | $ | 30,432,758 | $ | — | $ | 39,771,837 | $ | 94,113 | $ | (604,721) | $ | 39,261,229 | |||||||||||||||||||||||||||
| Intersegment revenues | (572,584) | (15,899) | — | (588,483) | (16,238) | 604,721 | — | ||||||||||||||||||||||||||||||||||
| Revenues, net of intersegment revenues | $ | 8,766,495 | $ | 30,416,859 | $ | — | $ | 39,183,354 | $ | 77,875 | $ | — | $ | 39,261,229 | |||||||||||||||||||||||||||
Cost of goods sold (a) | 8,041,588 | 29,478,231 | 138 | 37,519,957 | (10,055) | — | 37,509,902 | ||||||||||||||||||||||||||||||||||
| Marketing, general and administrative expenses | 321,053 | 697,301 | 71,392 | 1,089,746 | 77,223 | — | 1,166,969 | ||||||||||||||||||||||||||||||||||
| Interest expense | (16,773) | 61,982 | 61,942 | 107,151 | 22,027 | (25,114) | 104,064 | ||||||||||||||||||||||||||||||||||
| Other income | (11,283) | (98,142) | (9,176) | (118,601) | (44,143) | 25,114 | (137,630) | ||||||||||||||||||||||||||||||||||
| Equity (income) losses from investments | 2,857 | (65,190) | (275,531) | (337,864) | (141,999) | — | (479,863) | ||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 429,053 | $ | 342,677 | $ | 151,235 | $ | 922,965 | $ | 174,822 | $ | — | $ | 1,097,787 | |||||||||||||||||||||||||||
| Capital expenditures (b) | $ | 226,899 | $ | 426,291 | $ | — | $ | 653,190 | $ | 178,321 | $ | — | $ | 831,511 | |||||||||||||||||||||||||||
| Depreciation and amortization | $ | 343,962 | $ | 178,400 | $ | — | $ | 522,362 | $ | 47,529 | $ | — | $ | 569,891 | |||||||||||||||||||||||||||
| Energy | Ag | Nitrogen Production | Total Reportable Segments | Corporate and Other | Reconciling Amounts | Total | |||||||||||||||||||||||||||||||||||
| Year ended August 31, 2023 | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
| Revenues, including intersegment revenues | $ | 10,761,503 | $ | 35,456,969 | $ | — | $ | 46,218,472 | $ | 82,107 | $ | (710,575) | $ | 45,590,004 | |||||||||||||||||||||||||||
| Intersegment revenues | (664,590) | (31,765) | — | (696,355) | (14,220) | 710,575 | — | ||||||||||||||||||||||||||||||||||
| Revenues, net of intersegment revenues | $ | 10,096,913 | $ | 35,425,204 | $ | — | $ | 45,522,117 | $ | 67,887 | $ | — | $ | 45,590,004 | |||||||||||||||||||||||||||
| Cost of goods sold (a) | 8,718,224 | 34,501,163 | 1,693 | 43,221,080 | (7,341) | — | 43,213,739 | ||||||||||||||||||||||||||||||||||
| Marketing, general and administrative expenses | 307,197 | 577,904 | 72,135 | 957,236 | 75,529 | — | 1,032,765 | ||||||||||||||||||||||||||||||||||
| Interest expense | 7,672 | 71,115 | 60,090 | 138,877 | 31,487 | (32,922) | 137,442 | ||||||||||||||||||||||||||||||||||
| Other income | (19,456) | (88,061) | — | (107,517) | (37,536) | 32,922 | (112,131) | ||||||||||||||||||||||||||||||||||
| Equity (income) losses from investments | 7,833 | (48,725) | (394,678) | (435,570) | (254,020) | — | (689,590) | ||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 1,075,443 | $ | 411,808 | $ | 260,760 | $ | 1,748,011 | $ | 259,768 | $ | — | $ | 2,007,779 | |||||||||||||||||||||||||||
| Capital expenditures (b) | $ | 421,416 | $ | 308,690 | $ | — | $ | 730,106 | $ | 51,829 | $ | — | $ | 781,935 | |||||||||||||||||||||||||||
| Depreciation and amortization | $ | 329,021 | $ | 166,982 | $ | — | $ | 496,003 | $ | 43,518 | $ | — | $ | 539,521 | |||||||||||||||||||||||||||
(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.
We have international sales, which are predominantly in our Ag segment. The following table presents our sales, based on the geographic location of the subsidiary making the sale, for the years ended August 31, 2025, 2024 and 2023:
| 2025 | 2024 | 2023 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
North America (a) | $ | 34,112,112 | $ | 36,876,847 | $ | 43,376,177 | |||||||||||
| South America | 355,951 | 515,177 | 378,021 | ||||||||||||||
| Europe, Middle East and Africa | 541,848 | 693,454 | 930,052 | ||||||||||||||
| Asia Pacific | 452,697 | 1,175,751 | 905,754 | ||||||||||||||
| Total | $ | 35,462,608 | $ | 39,261,229 | $ | 45,590,004 | |||||||||||
(a) Revenues in North America are substantially all attributed to the United States.
THistorical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 5, 2025 | Showing above |
| 2024 | Nov 6, 2024 | |
| 2023 | Nov 8, 2023 | |
| 2022 | Nov 2, 2022 | |
| 2021 | Nov 4, 2021 | |
| 2020 | Nov 5, 2020 | |
| 2019 | Nov 6, 2019 | |
| 2018 | Dec 3, 2018 | |
| 2017 | Nov 9, 2017 | |
| 2016 | Nov 3, 2016 | |
| 2015 | Nov 23, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.