CHS INC - 10-Q filing on 2022-01-05

Revenues (Notes)

3 Months Ended

Nov. 30, 2021

Revenue from Contract with Customer [Abstract]

The following table presents revenues recognized under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), disaggregated by reportable segment, as well as the amount of revenues recognized under ASC Topic 815, Derivatives and Hedging ("ASC Topic 815"), and other applicable accounting guidance for the three months ended November 30, 2021 and 2020. Other applicable accounting guidance primarily includes revenues recognized under ASC Topic 470, Debt, and ASC Topic 842, Leases, that fall outside the scope of ASC Topic 606.


	ASC Topic 606		ASC Topic 815		Other Guidance		Total Revenues
Three Months Ended November 30, 2021	(Dollars in thousands)
Energy	$	2,047,277	$	256,710	$	—	$	2,303,987
Ag	2,531,956		6,029,260		8,043		8,569,259
Corporate and Other	3,590		—		3,921		7,511
Total revenues	$	4,582,823	$	6,285,970	$	11,964	$	10,880,757

Three Months Ended November 30, 2020
Energy	$	1,064,963	$	192,884	$	—	$	1,257,847
Ag	1,344,508		6,087,241		13,653		7,445,402
Corporate and Other	6,460		—		5,934		12,394
Total revenues	$	2,415,931	$	6,280,125	$	19,587	$	8,715,643

Less than 1% of revenues accounted for under ASC Topic 606 included within the table above are recorded over time and relate primarily to service contracts.

Contract Assets and Contract Liabilities

Contract assets relate to unbilled amounts arising from goods that have already been transferred to customers where the right to payment is not conditional on the passage of time. This results in the recognition of an asset, as the amount of revenue recognized at a certain point in time exceeds the amount billed to customers. Contract assets are recorded in receivables within our Condensed Consolidated Balance Sheets and were $40.1 million and $29.0 million as of November 30, 2021, and August 31, 2021, respectively.

Contract liabilities relate to advance payments from customers for goods and services that we have yet to provide. Contract liabilities of $419.5 million and $213.9 million as of November 30, 2021, and August 31, 2021, respectively, are recorded within other current liabilities on our Condensed Consolidated Balance Sheets. For the three months ended November 30, 2021 and 2020, we recognized revenues of $107.2 million and $60.7 million related to contract liabilities, respectively. These amounts were included in the other current liabilities balance at the beginning of the respective period.