CHS INC

Previous wording

•Ag. Purchases and further processes or resells grain and oilseed originated by our country operations and global grain and processing businesses, by our member cooperatives and by third parties. It also includes our renewable fuels business and serves as a wholesaler and retailer of agronomy products.

Current wording

•Ag. Purchases and further processes or resells grain and oilseed originated by our ag retail and global grain and processing businesses, by our member cooperatives and by third parties. It also includes our renewable fuels business and serves as a wholesaler and retailer of agronomy products.

Previous wording

Seasonality. 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 country operations 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. Additionally, 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 volumes and revenues based on producer harvests, world grain prices, global 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. The graphs below depict the seasonality inherent in our businesses.

Current wording

Seasonality. 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. Additionally, 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 volumes and revenues based on producer harvests, world grain prices, global 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. The graphs below depict the seasonality inherent in our businesses.

Previous wording

Our segments operate in cyclical environments in which market conditions can change rapidly with significant positive or negative impacts on our results. We anticipate that various macroeconomic factors will continue to drive uncertainty and instability in global energy and agricultural commodity markets, as well as global financial markets, which could have a significant impact on each of our segments during the remainder of fiscal 2024. These factors include the ongoing war between Russia and Ukraine and any escalation of conflict in the Middle East; shifts in global trade flows for commodities; a higher interest rate environment; and inflationary pressures increasing costs of labor, freight and materials. In addition to these broad macroeconomic factors, other factors could impact the demand and pricing for agricultural inputs and outputs, as well as our ability to supply those inputs and outputs while remaining profitable. These include the cost of renewable energy credits, the prices of which have experienced volatility in recent years and could positively or negatively impact our profitability, and regional factors, such as unpredictable weather conditions, including those due to climate change. We have experienced reduced profitability through the first nine months of fiscal year 2024 in both our Energy and Ag segments due to declining margins. In our Energy segment, margins have been adversely impacted by increased industry capacity utilization rates bringing additional refined fuel supply to the market, driving decreased refining margins. In our Ag segment, margins have eroded due to waning demand for U.S. grain and oilseed as global trade flows continue to shift away from the U.S. and to other markets around the world. We are unable to predict how long the current environment will last or the severity of the financial and operational impacts to us; however, we currently expect the moderation of margins for energy and agricultural commodities to persist during the remainder of fiscal 2024 and into fiscal 2025, which could negatively impact our profitability. Refer to Item 1A of our Annual Report on Form 10-K for the year ended August 31, 2023, for additional impacts these and other risks may have on our business operations and financial performance.

Current wording

Our segments operate in cyclical environments in which market conditions can change rapidly with significant positive or negative impacts on our results. We anticipate various macroeconomic factors will continue to drive uncertainty and instability in global energy and agricultural commodity markets, as well as global financial markets, which could have a significant impact on each of our segments during fiscal 2025. These factors include, among others, the ongoing war between Russia and Ukraine and further escalation of conflict in the Middle East; shifts in global trade flows for commodities, including global competitiveness giving rise to a weak export market for U.S. sourced agricultural products; potential changes in U.S. trade policy under the new U.S. administration taking office in January 2025; a changing interest rate environment; and continued pricing pressures impacting costs of labor, freight and materials. These factors, or any form of them, could cause significant margin pressure and lower profitability. In addition to these broad macroeconomic factors, other factors could impact demand and pricing for agricultural inputs and outputs, as well as our ability to supply those inputs and outputs while remaining profitable. These include the cost of renewable energy credits, the prices of which have experienced volatility in recent years and could positively or negatively impact our profitability, and regional factors, such as unpredictable weather conditions, including those due to climate change. We currently expect global economic factors impacting energy and agricultural commodities to continue to be less favorable for us during the remainder of fiscal 2025, as compared to fiscal 2024. Further, in light of increasing uncertainty in the markets we serve, we are unable to predict how long the current environment will last or the significance of the financial and operational impacts to us; however, we currently expect the trend of significantly reduced margins for energy and agricultural commodities to persist or accelerate through the remainder of fiscal 2025. Refer to Item 1A of our Annual Report on Form 10-K for the year ended August 31, 2024, for additional impacts these and other risks may have on our business operations and financial performance.

Previous wording

We are subject to the Renewable Fuel Standard that requires refiners to blend renewable fuels (e.g., ethanol and biodiesel) into their finished transportation fuels or purchase renewable energy credits, known as renewable identification numbers ("RINs"), in lieu of blending. The U.S. Environmental Protection Agency ("EPA") generally establishes new annual renewable fuel percentage standards for each compliance year in the preceding year. In June 2023, the EPA issued a final renewable volume obligation ("RVO") for calendar years 2020 through 2025. We generate RINs through our blending activities, but we cannot generate enough RINs to meet the needs of our refining capacity; therefore, RINs must be purchased on the open market. The price of RINs can be volatile, with prices for D6 ethanol RINs and D4 biodiesel RINs decreasing by 67% and 68%, respectively, during the three months ended May 31, 2024, compared to the same period during the prior year, which positively impacted our earnings. Estimates of our RIN expenses are calculated using an average RIN price each month.

Current wording

We are subject to the Renewable Fuel Standard that requires refiners to blend renewable fuels (e.g., ethanol and biodiesel) into their finished transportation fuels or purchase renewable energy credits, known as renewable identification numbers ("RINs"), in lieu of blending. The U.S. Environmental Protection Agency ("EPA") generally establishes new annual renewable fuel percentage standards for each compliance year in the preceding year. In June 2023, the EPA issued a final renewable volume obligation ("RVO") for calendar years 2020 through 2025. We generate RINs through our blending activities, but we cannot generate enough RINs to meet the needs of our refining capacity; therefore, RINs must be purchased on the open market. The price of RINs can be volatile, with prices for D6 ethanol RINs and D4 biodiesel RINs both decreasing by 32% during the three months ended November 30, 2024, compared to the same period during the prior fiscal year, which positively impacted our earnings. Estimates of our RIN expenses are calculated using an average RIN price each month.

Previous wording

In addition to our internal operational reliability, the profitability of our Energy segment is largely driven by crack spreads (i.e., the price differential between refined products and crude oil inputs) and Western Canadian Select ("WCS") crude oil discounts (i.e., the price discount for WCS crude oil relative to West Texas Intermediate ("WTI") crude oil), which are driven by supply and demand of refined products. Crack spreads and WCS crude oil discounts both decreased during the three and nine months ended May 31, 2024, compared to the same period during the prior year, contributing to lower IBIT for the Energy segment. The table below provides information about average market reference prices and differentials that impacted our Energy segment:

Current wording

In addition to our internal operational reliability, the profitability of our Energy segment is largely driven by crack spreads (i.e., the price differential between refined products and crude oil inputs) and Western Canadian Select ("WCS") crude oil discounts (i.e., the price discount for WCS crude oil relative to West Texas Intermediate ("WTI") crude oil), which are driven by supply and demand of refined products. Crack spreads and WCS crude oil discounts both decreased during the three months ended November 30, 2024, compared to the same period during the prior fiscal year, contributing to lower IBIT for the Energy segment. The table below provides information about average market reference prices and differentials that impacted our Energy segment:

Previous wording

*Market source information represents the average month-end price during the period.

Current wording

*Market source information represents the average week-end or month-end price during the period.

Previous wording

The following waterfall analysis and commentary presents the changes in our Energy segment IBIT for the three months ended May 31, 2024, compared to the same period during the prior year:

Current wording

The following waterfall analysis and commentary presents the changes in our Energy segment IBIT for the three months ended November 30, 2024, compared to the same period during the prior fiscal year:

Previous wording

•Lower crack spreads and decreased WCS crude oil discounts resulted from less favorable global market conditions compared to the same period during the prior year, which contributed to a $152.7 million decrease of IBIT.

Current wording

•Significantly lower crack spreads and decreased WCS crude oil discounts resulted from less favorable global market conditions, including the impact of higher U.S. refinery capacity utilization and global production, compared to the same period of the prior fiscal year, which contributed to a $237.8 million decrease of IBIT.

Previous wording

•Increased repairs and maintenance expense due to planned and unplanned maintenance at our Laurel, Montana, and McPherson, Kansas, refineries contributed to $12.2 million of decreased IBIT.

Current wording

•Increased repairs and maintenance expense due to planned and unplanned maintenance at our Laurel, Montana, and McPherson, Kansas, refineries contributed to $11.0 million of decreased IBIT.

Previous wording

•The IBIT decrease was partially offset by lower costs for RINs in our refined fuels business, which contributed to a $180.0 million cost reduction.

Current wording

•The IBIT decrease was partially offset by lower costs for RINs in our refined fuels business, which contributed to a $23.4 million cost reduction.

Previous wording

◦$81.8 million decrease for oilseed processing due to weaker meal and oil demand resulting in lower crush margins compared to the prior year;

Current wording

•A $62.8 million decrease for oilseed processing due to a higher supply of canola and soybean meal and oil across global markets, resulting in lower crush margins compared to the prior fiscal year;

Previous wording

◦$37.9 million decrease for wholesale and retail agronomy that resulted primarily from market-driven price decreases; and

Current wording

•An $11.1 million decrease for wholesale and retail agronomy that resulted primarily from market-driven price decreases; and

Previous wording

Our Nitrogen Production segment IBIT decreased from the prior year due to lower equity income attributed to decreased selling prices of urea and UAN, which was partially offset by decreased natural gas costs, all due to global supply and demand factors. Corporate and other IBIT decreased primarily due to lower equity income from Ventura Foods, which experienced less favorable market conditions for oil-based food products during the nine months ended May 31, 2024, compared to the same period during the prior year.

Current wording

Our Nitrogen Production segment IBIT decreased from the prior fiscal year due to lower equity income attributed to decreased selling prices of urea and higher interest expense, which were partially offset by decreased natural gas costs, all due to global supply and demand factors. There were no significant changes on a dollar basis to IBIT in Corporate and Other during the three months ended November 30, 2024, compared to the same period during the prior fiscal year.

Previous wording

•Decreased selling prices across most of our Ag segment product categories due to global market conditions during the third quarter of fiscal 2024, including:

Current wording

•Decreased selling prices across most of our Ag segment product categories due to global market conditions experienced during the first quarter of fiscal 2025, including:

Previous wording

There were no significant changes on a dollar basis to Corporate and Other revenues during the three months ended May 31, 2024, compared to the same period during the prior year.

Current wording

There were no significant changes on a dollar basis to Corporate and Other revenues during the three months ended November 30, 2024, compared to the same period during the prior fiscal year.

Previous wording

•Decreased costs resulting from global market conditions contributed to $17.2 million and $9.0 million decreases in COGS for propane and refined fuels, respectively.

Current wording

•Decreased costs resulting from global market conditions contributed to a $314.4 million decrease in COGS for refined fuels.

Previous wording

•Lower costs across most of our Ag segment product categories during the third quarter of fiscal 2024, including:

Current wording

•Lower costs across most of our Ag segment product categories during the first quarter of fiscal 2025, including:

Previous wording

◦$1.3 billion decrease for grain and oilseed primarily driven by lower pricing due to global market conditions;

Current wording

◦$1.4 billion decrease for grain and oilseed primarily driven by lower pricing due to global market conditions;

Previous wording

◦$298.3 million decrease for renewable fuels primarily resulting from lower input costs; and

Current wording

◦$113.1 million and $75.3 million decreases for oilseed processing and renewable fuels, respectively, resulting from lower input costs; and

Previous wording

◦$515.8 million decrease for wholesale and retail agronomy products driven by lower prices; and

Current wording

◦$9.4 million decrease for wholesale and retail agronomy products driven by lower prices.

Previous wording

There were no significant changes on a dollar basis to COGS in our Nitrogen Production segment or Corporate and Other during the three months ended May 31, 2024, compared to the same period during the prior year.

Current wording

There were no significant changes on a dollar basis to COGS in our Nitrogen Production segment or Corporate and Other during the three months ended November 30, 2024, compared to the same period during the prior fiscal year.

Previous wording

Marketing, general and administrative expenses increased during the three months ended May 31, 2024, primarily due to higher compensation expenses during the current fiscal year, including elevated expenses for performance-based incentive compensation driven by the timing of the change of payout assumptions compared with the prior fiscal year, as well as higher consulting expenses primarily associated with our enterprise resource planning system implementation and other technologies to advance our operating model.

Current wording

Marketing, general and administrative expenses increased during the three months ended November 30, 2024, primarily due to higher compensation and benefit expenses during the current fiscal year.

Previous wording

Interest expense decreased during the three months ended May 31, 2024, as a result of decreased notes payable balances, which was partially offset by higher interest rates compared to the same period in the prior year.

Current wording

Interest expense decreased during the three months ended November 30, 2024, as a result of lower interest rates, which was partially offset by a higher long-term debt balance compared to the same period in the prior fiscal year.

Previous wording

Corporate and Other revenues increased during the nine months ended May 31, 2024, compared to the same period during the prior year, primarily due to increased interest income as a result of a larger average notes receivable balance and higher interest rates.

Current wording

Other income decreased during the three months ended November 30, 2024, primarily due to decreased interest income as a result of a smaller cash balance and lower interest rates compared to the same period in the prior fiscal year.

Previous wording

Income tax expense increased during the three months ended May 31, 2024, which resulted primarily from a lower Domestic Production Activities Deduction ("DPAD") compared to the same period of the prior year. Effective tax rates for the three months ended May 31, 2024 and 2023, were 4.1% and 1.9%, respectively. Federal and state statutory rates of 24.5% and 24.7% were applied to nonpatronage business activity for the three months ended May 31, 2024 and 2023, respectively. Income taxes and effective tax rates vary each year based on profitability, income tax credits, nonpatronage business activity and current equity management assumptions.

Current wording

Increased income tax expense during the three months ended November 30, 2024, resulted primarily from the recognition of fewer research and development tax credits during the current fiscal year and the impact of equity management assumptions compared to the same period of the prior year, which were partially offset by lower nonpatronage earnings. Effective tax rates for the three months ended November 30, 2024 and 2023, were 5.1% and (1.3)%, respectively. A federal and state statutory rate of 24.5% was applied to nonpatronage business activity for the three months ended November 30, 2024 and 2023. Income taxes and effective tax rates vary each year based on profitability, income tax credits, nonpatronage business activity and current equity management assumptions.

Previous wording

We fund our current operations primarily through our cash flows from operations and with short-term borrowings through our committed and uncommitted revolving credit facilities, including our securitization facility with certain unaffiliated financial institutions and our repurchase facility. We fund certain of our long-term capital needs, primarily those related to acquisitions of property, plant and equipment, with cash flows from operations and by issuing long-term debt. On April 18, 2024, we entered into a Note Purchase Agreement to borrow $700.0 million of debt in the form of notes; the funding of these notes will take place on July 16, 2024. See Note 6, Notes Payable and Long-Term Debt, of the notes to the unaudited condensed consolidated financial statements that are included in this Quarterly Report on Form 10-Q for additional information on our short-term borrowings and long-term debt. We will continue to consider opportunities to further diversify and enhance our sources and amounts of liquidity.

Current wording

We fund our current operations primarily through our cash flows from operations and with short-term borrowings through our committed and uncommitted revolving credit facilities, including our securitization facility with certain unaffiliated financial institutions and our repurchase facility. We fund certain of our long-term capital needs, primarily those related to acquisitions of property, plant and equipment, with cash flows from operations and by issuing long-term debt. On October 29, 2024, we amended our 10-year term loan facility reducing the size to $300.0 million and adding a converting revolver feature. See Note 6, Notes Payable and Long-Term Debt, of the notes to the unaudited condensed consolidated financial statements that are included in this Quarterly Report on Form 10-Q for additional information on our short-term borrowings and long-term debt. We will continue to consider opportunities to further diversify and enhance our sources and amounts of liquidity.

Previous wording

•Capital expenditures. We expect total capital expenditures for fiscal 2024 to be approximately $825.0 million compared to capital expenditures of $564.5 million in fiscal 2023. Increased capital expenditures for fiscal 2024 are for investments in our infrastructure to meet the evolving needs of our owners and customers, enhance value for the cooperative system and propel sustainable growth. During the nine months ended May 31, 2024, we acquired $541.4 million of property, plant and equipment.

Current wording

•Capital expenditures. We expect total capital expenditures for fiscal 2025 to be approximately $837.3 million, compared to capital expenditures of $808.8 million in fiscal 2024, as we continue to invest in capital projects to meet the evolving needs of our owners and customers, enhance value for the cooperative system and focus on targeted growth during fiscal 2025. In addition, we expect more than $225.0 million in incremental expenditures for business acquisitions during fiscal 2025. During the three months ended November 30, 2024, we acquired $192.7 million of property, plant and equipment.

Previous wording

•Major maintenance. We expect total major maintenance for fiscal 2024 to be approximately $22.0 million compared to major maintenance of $217.4 million in fiscal 2023. Decreased major maintenance for fiscal 2024 is due to significantly reduced turnaround activities at our refineries compared to the turnaround at our Laurel refinery during fiscal 2023. During the nine months ended May 31, 2024, we paid $14.8 million in major maintenance.

Current wording

•Major maintenance. We expect total major maintenance for fiscal 2025 to be approximately $256.9 million, compared to major maintenance of $22.7 million in fiscal 2024. Increased major maintenance expectations for fiscal 2025 is due to a scheduled turnaround at our McPherson refinery. During the three months ended November 30, 2024, we paid $11.1 million in major maintenance.

Previous wording

•Debt and interest. We expect to repay approximately $9.6 million of long-term debt and finance lease obligations and incur interest payments related to long-term debt of approximately $88.3 million during fiscal 2024. During the nine months ended May 31, 2024, we repaid $6.5 million of scheduled long-term debt maturities and finance lease obligations.

Current wording

•Debt and interest. We expect to repay approximately $339.6 million of long-term debt and finance lease obligations and incur interest payments related to long-term debt of approximately $101.7 million during fiscal 2025. During the three months ended November 30, 2024, we repaid $1.1 million of scheduled long-term debt maturities and finance lease obligations.

Previous wording

•Preferred stock dividends. We had approximately $2.3 billion of preferred stock outstanding as of May 31, 2024. We expect to pay dividends on our preferred stock of approximately $168.7 million during fiscal 2024. Dividends paid on our preferred stock during the nine months ended May 31, 2024, were $126.5 million.

Current wording

•Preferred stock dividends. We had approximately $2.3 billion of preferred stock outstanding as of November 30, 2024. We expect to pay dividends on our preferred stock of approximately $168.7 million during fiscal 2025. Dividends paid on our preferred stock during the three months ended November 30, 2024, were $42.2 million.

Previous wording

•Patronage. Our Board of Directors has authorized approximately $365.0 million of our fiscal 2023 patronage-sourced earnings to be paid to our member-owners during fiscal 2024. During the nine months ended May 31, 2024, we distributed $366.0 million of cash patronage related to the year ended August 31, 2023.

Current wording

•Patronage. Our Board of Directors authorized approximately $300.0 million of our fiscal 2024 patronage-sourced earnings to be paid to our member-owners during fiscal 2025.

Previous wording

•Equity redemptions. Our Board of Directors has authorized equity redemptions of up to $365.0 million to be distributed in fiscal 2024 in the form of redemptions of qualified and nonqualified equity owned by individual producer-members and association members. During the nine months ended May 31, 2024, we redeemed $342.1 million of member equity.

Current wording

•Equity redemptions. Our Board of Directors authorized approximately $300.0 million of equity redemptions to be distributed in fiscal 2025 in the form of redemptions of qualified and nonqualified equity owned by individual producer-members and association members. During the three months ended November 30, 2024, we redeemed $9.8 million of member equity.

Previous wording

We believe cash generated by operating and investing activities, along with available borrowing capacity under our credit facilities, will be sufficient to support our short- and long-term operations. Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with all debt covenants and restrictions as of May 31, 2024. Based on our current fiscal 2024 projections, we expect continued covenant compliance.

Current wording

Our notes payable and long-term debt are subject to various restrictive requirements for maintenance of minimum consolidated net worth and other financial ratios. We were in compliance with all debt covenants and restrictions as of November 30, 2024. Based on our current fiscal 2025 projections, we expect continued covenant compliance.

Previous wording

As of May 31, 2024, working capital increased by $21.6 million compared to August 31, 2023. Current asset balance changes decreased working capital by $668.4 million, primarily driven by a decrease in our cash balance, which was partially offset by increases in receivables and supplier advance payments, all of which were driven by seasonality in our business. Current liability balance changes increased working capital by $690.0 million, primarily due to a decrease in dividends and equities payable as payments were made, as well as notes and accounts payable, which were driven by seasonality in our business.

Current wording

As of November 30, 2024, working capital decreased by $19.1 million compared to August 31, 2024. Current asset balance changes increased working capital by $649.4 million, primarily driven by increases in inventories and receivables, which were driven by the fall harvest. Current liability balance changes decreased working capital by $668.6 million, primarily due to increases in accounts payable, which were also driven by the fall harvest.

Previous wording

For information regarding our estimated contractual obligations, see the MD&A discussion included in Item 7 of Part II of our Annual Report on Form 10-K for the year ended August 31, 2023. No material changes occurred during the nine months ended May 31, 2024.

Current wording

For information regarding our estimated contractual obligations, see the MD&A discussion included in Item 7 of Part II of our Annual Report on Form 10-K for the year ended August 31, 2024. No material changes occurred during the three months ended November 30, 2024.

Previous wording

The following table presents summarized cash flow data for the nine months ended May 31, 2024 and 2023:

Current wording

The following table presents summarized cash flow data for the three months ended November 30, 2024 and 2023:

Previous wording

Cash flows from operating activities can fluctuate significantly from period to period as a result of various factors, including seasonality and timing differences associated with purchases, sales, taxes and other business decisions. The $1.8 billion decrease in cash provided by operating activities primarily reflects increased receivables and inventories, as well as decreased net income during the first nine months of fiscal 2024 compared to the same period during fiscal 2023.

Current wording

Cash flows from operating activities can fluctuate significantly from period to period as a result of various factors, including seasonality and timing differences associated with purchases, sales, taxes and other business decisions. The $146.4 million increase in cash used in operating activities primarily reflects decreased accounts payable, as well as decreased net income, which was partially offset by a decrease in receivables, during the first three months of fiscal 2025 compared to the same period during fiscal 2024.

Previous wording

The $131.6 million decrease of cash used in investing activities primarily reflects lower expenditures for major maintenance during the first nine months of fiscal 2024, compared to the same period during fiscal 2023, as well as timing differences in borrowings and payments for CHS Capital notes receivable. Decreases were partially offset by higher acquisitions of property, plant and equipment during the first nine months of fiscal 2024, compared to the same period during fiscal 2023.

Current wording

The $92.9 million decrease of cash used in investing activities primarily reflects increased proceeds from the sale of investments. Decreases were partially offset by timing differences in borrowings and payments for CHS Capital notes receivable, as well as higher acquisitions of property, plant and equipment during the first three months of fiscal 2025, compared to the same period during fiscal 2024.

Previous wording

(c) Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulates dividends at a rate of 6.75% per year until September 30, 2024, and then will fix at a rate of 6.75% based on the terms of the contract and application of the Adjustable Rate (LIBOR) Act.

Current wording

(c) Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulated dividends at a rate of 6.75% per year until September 30, 2024, and subsequently fixed at a rate of 6.75% based on the terms of the contract and application of the Adjustable Rate (LIBOR) Act.

Previous wording

Our critical accounting policies as presented in the MD&A in our Annual Report on Form 10-K for the year ended August 31, 2023, have not materially changed during the nine months ended May 31, 2024.

Current wording

Our critical accounting policies as presented in the MD&A in our Annual Report on Form 10-K for the year ended August 31, 2024, have not materially changed during the three months ended November 30, 2024.