Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Aug. 31, 2013 | Nov. 05, 2013 | Feb. 28, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Aug-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'PENX | ' | ' |
Entity Registrant Name | 'PENFORD CORP | ' | ' |
Entity Central Index Key | '0000739608 | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 12,497,654 | ' |
Entity Public Float | ' | ' | $120.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $221 | $154 |
Trade accounts receivable, net | 43,432 | 36,464 |
Inventories | 33,992 | 43,672 |
Prepaid expenses | 3,100 | 2,826 |
Material and supplies | 4,634 | 3,980 |
Income tax receivable | 188 | 188 |
Other | 4,547 | 4,681 |
Total current assets | 90,114 | 91,965 |
Property, plant and equipment, net | 112,141 | 113,191 |
Restricted cash value of life insurance | 7,837 | 7,858 |
Deferred tax assets | 4,987 | 13,108 |
Other assets | 1,248 | 1,612 |
Other intangible assets, net | 313 | 467 |
Goodwill, net | 7,978 | 7,978 |
Total assets | 224,618 | 236,179 |
Current liabilities: | ' | ' |
Cash overdraft, net | 5,072 | 7,337 |
Current portion of long-term debt and capital lease obligations | 231 | 458 |
Accounts payable | 20,656 | 19,201 |
Short-term financing arrangements | 1,474 | 905 |
Accrued liabilities | 8,207 | 8,237 |
Total current liabilities | 35,640 | 36,138 |
Long-term debt and capital lease obligations | 72,739 | 84,004 |
Other postretirement benefits | 16,596 | 19,707 |
Pension benefit liability | 10,552 | 20,917 |
Other liabilities | 6,198 | 6,563 |
Total liabilities | 141,725 | 167,329 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, par value $1.00 per share, authorized 29,000 shares, issued 14,479 shares in 2013 and 14,342 shares in 2012, including treasury shares | 14,454 | 14,281 |
Additional paid-in capital | 105,166 | 103,205 |
Retained earnings (deficit) | 3,649 | -286 |
Treasury stock, at cost, 1,981 shares | -32,757 | -32,757 |
Accumulated other comprehensive loss | -7,619 | -15,593 |
Total shareholders' equity | 82,893 | 68,850 |
Total liabilities and shareholders' equity | $224,618 | $236,179 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 29,000 | 29,000 |
Common stock, shares issued | 14,479 | 14,342 |
Treasury stock, shares | 1,981 | 1,981 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Sales | $467,250 | $433,151 | $373,763 |
Cost of sales | 422,203 | 389,241 | 339,928 |
Gross margin | 45,047 | 43,910 | 33,835 |
Operating expenses | 29,773 | 28,013 | 24,618 |
Research and development expenses | 5,870 | 5,838 | 4,772 |
Income from operations | 9,404 | 10,059 | 4,445 |
Interest expense | -3,989 | -8,633 | -9,364 |
Other non-operating income (expense), net | 75 | -6,186 | 115 |
Income (loss) before income taxes | 5,490 | -4,760 | -4,804 |
Income tax expense (benefit) | 1,483 | 4,806 | 313 |
Net income (loss) | $4,007 | ($9,566) | ($5,117) |
Weighted average common shares and equivalents outstanding: | ' | ' | ' |
Basic | 12,369,487 | 12,293,749 | 12,250,914 |
Diluted | 12,618,158 | 12,293,749 | 12,250,914 |
Earnings (loss) per common share: | ' | ' | ' |
Basic | $0.32 | ($0.78) | ($0.42) |
Diluted | $0.32 | ($0.78) | ($0.42) |
Dividends declared per common share | ' | ' | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $4,007 | ($9,566) | ($5,117) |
Other comprehensive income (loss): | ' | ' | ' |
Change in fair value of derivatives, net of tax benefit (expense) of $(457), $(1,419) and $3,690 | 747 | 2,315 | -6,018 |
Loss (gain) from derivative transactions reclassified into earnings from other comprehensive income, net of tax benefit (expense) of $(1,987), $(863) and $4,494 | -3,241 | -1,408 | 7,331 |
Actuarial gain (loss) on postretirement liabilities, net of tax benefit (expense) of $(5,547), $5,722 and $(2,450) | 9,049 | -9,336 | 3,997 |
Loss from postretirement liabilities reclassified to earnings, net of tax benefit of $869, $242 and $601 | 1,419 | 395 | 981 |
Other comprehensive income (loss) | 7,974 | -8,034 | 6,291 |
Total comprehensive income (loss) | $11,981 | ($17,600) | $1,174 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Change in fair value of derivatives, tax | ($457) | ($1,419) | $3,690 |
Loss (gain) from derivative transactions reclassified into earnings from other comprehensive income, tax | -1,987 | -863 | 4,494 |
Actuarial gain (loss) on post-retirement liabilities, tax | -5,547 | 5,722 | -2,450 |
Loss from postretirement liabilities, tax | $869 | $242 | $601 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income (loss) | $4,007 | ($9,566) | ($5,117) |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ' | ' | ' |
Depreciation and amortization | 13,326 | 14,127 | 14,415 |
Loss on redemption of Series A Preferred Stock | ' | 6,599 | ' |
Non-cash interest on Series A Preferred Stock | ' | ' | 3,859 |
Stock-based compensation | 1,404 | 1,387 | 1,117 |
Loss on sale and disposal of assets | 22 | 26 | 6 |
Deferred income tax expense | 1,825 | 4,965 | 142 |
Non-cash loss (gain) on hedging transactions | 3,543 | -176 | -1,620 |
Excess tax benefit from stock-based compensation | -16 | ' | ' |
Other | ' | 20 | ' |
Change in operating assets and liabilities: | ' | ' | ' |
Trade accounts receivable | -7,063 | -4,450 | -2,769 |
Inventories | 6,137 | -6,460 | -11,264 |
Decrease (increase) in margin accounts | -5,088 | 2,285 | 1,975 |
Prepaid expenses | -274 | -536 | -754 |
Accounts payable and accrued liabilities | 1,808 | 2,105 | 2,250 |
Pension and other postretirement benefit contributions | -1,687 | -4,574 | -6,913 |
Pension and other postretirement benefit plan costs | 5,107 | 3,386 | 4,905 |
Other receivables | 2,554 | -744 | -490 |
Income tax receivable | ' | -96 | 3,557 |
Payment of interest on Series A Preferred Stock, net | ' | -5,311 | ' |
Other | -956 | -427 | 229 |
Net cash flow provided by operating activities | 24,649 | 2,560 | 3,528 |
Investing activities: | ' | ' | ' |
Acquisitions of property, plant and equipment, net | -14,199 | -14,146 | -8,295 |
Acquisition of Carolina Starches, net of cash acquired | ' | -8,347 | ' |
Settlement of ethanol construction claim (Note 21) | 2,106 | ' | ' |
Other | 31 | 75 | 42 |
Net cash used in investing activities | -12,062 | -22,418 | -8,253 |
Financing activities: | ' | ' | ' |
Proceeds from revolving line of credit | 22,200 | 88,706 | 38,550 |
Payments on revolving line of credit | -33,300 | -28,200 | -35,350 |
Payments on long-term debt | -200 | -200 | -200 |
Redemption of Series A preferred stock | ' | -40,000 | ' |
Payments on capital lease obligations | -280 | -249 | -253 |
Payment of loan fees | ' | -973 | ' |
Proceeds from financing arrangements | 2,019 | 2,255 | 1,711 |
Payments on financing arrangements | -1,438 | -2,050 | -2,324 |
Exercise of stock options | 730 | ' | ' |
Excess tax benefit from stock-based compensation | 16 | ' | ' |
Increase (decrease) in cash overdraft | -2,265 | 434 | 2,518 |
Other | -2 | 8 | 39 |
Net cash provided by (used in) financing activities | -12,520 | 19,731 | 4,691 |
Increase (decrease) in cash and cash equivalents | 67 | -127 | -34 |
Cash and cash equivalents, beginning of year | 154 | 281 | 315 |
Cash and cash equivalents, end of year | 221 | 154 | 281 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Interest | 3,623 | 12,481 | 3,815 |
Income taxes paid (refunded), net | 125 | 260 | -3,373 |
Noncash investing and financing activities: | ' | ' | ' |
Capital lease obligations incurred for certain equipment leases | $88 | $152 | $10 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | ||||||
Balance, beginning of year at Aug. 31, 2010 | ' | $13,190 | $100 | $102,303 | $14,586 | ($13,850) |
Treasury stock | -32,757 | ' | ' | ' | ' | ' |
Tax deficiency on stock option and awards | ' | ' | ' | -297 | ' | ' |
Change in fair value of derivatives, net of tax | -6,018 | ' | ' | ' | ' | -6,018 |
Net income (loss) | -5,117 | ' | ' | ' | -5,117 | ' |
Stock based compensation | ' | ' | ' | 1,117 | ' | ' |
Loss (gain) from derivative transactions reclassified into earnings from other comprehensive income, net of tax | 7,331 | ' | ' | ' | ' | 7,331 |
Other | ' | ' | ' | ' | -101 | ' |
Net (increase) decrease in postretirement liabilities, net of tax | ' | ' | ' | ' | ' | 4,978 |
Issuance of restricted stock, net | ' | 53 | ' | -53 | ' | ' |
Series B preferred stock converted to common shares | ' | ' | ' | ' | ' | ' |
Total shareholders' equity | 85,465 | ' | ' | ' | ' | ' |
Balance, end of year at Aug. 31, 2011 | ' | 13,243 | 100 | 103,070 | 9,368 | -7,559 |
Treasury stock | -32,757 | ' | ' | ' | ' | ' |
Tax deficiency on stock option and awards | ' | ' | ' | -314 | ' | ' |
Change in fair value of derivatives, net of tax | 2,315 | ' | ' | ' | ' | 2,315 |
Net income (loss) | -9,566 | ' | ' | ' | -9,566 | ' |
Stock based compensation | ' | ' | ' | 1,387 | ' | ' |
Loss (gain) from derivative transactions reclassified into earnings from other comprehensive income, net of tax | -1,408 | ' | ' | ' | ' | -1,408 |
Other | ' | ' | ' | ' | -88 | ' |
Net (increase) decrease in postretirement liabilities, net of tax | ' | ' | ' | ' | ' | -8,941 |
Issuance of restricted stock, net | ' | 38 | ' | -38 | ' | ' |
Series B preferred stock converted to common shares | ' | 1,000 | -100 | -900 | ' | ' |
Total shareholders' equity | 68,850 | ' | ' | ' | ' | ' |
Balance, end of year at Aug. 31, 2012 | ' | 14,281 | ' | 103,205 | -286 | -15,593 |
Treasury stock | -32,757 | ' | ' | ' | ' | ' |
Tax deficiency on stock option and awards | ' | ' | ' | ' | ' | ' |
Change in fair value of derivatives, net of tax | 747 | ' | ' | ' | ' | 747 |
Net income (loss) | 4,007 | ' | ' | ' | 4,007 | ' |
Stock based compensation | ' | ' | ' | 1,404 | ' | ' |
Loss (gain) from derivative transactions reclassified into earnings from other comprehensive income, net of tax | -3,241 | ' | ' | ' | ' | -3,241 |
Other | ' | ' | ' | ' | -72 | ' |
Exercise of stock options | ' | 121 | ' | 609 | ' | ' |
Net (increase) decrease in postretirement liabilities, net of tax | ' | ' | ' | ' | ' | 10,468 |
Issuance of restricted stock, net | ' | 52 | ' | -52 | ' | ' |
Series B preferred stock converted to common shares | ' | ' | ' | ' | ' | ' |
Total shareholders' equity | 82,893 | ' | ' | ' | ' | ' |
Balance, end of year at Aug. 31, 2013 | ' | $14,454 | ' | $105,166 | $3,649 | ($7,619) |
Business
Business | 12 Months Ended |
Aug. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Business | ' |
Note 1 — Business | |
Penford Corporation (which, together with its subsidiary companies, is referred to herein as “Penford” or the “Company”) is a developer, manufacturer and marketer of specialty natural-based ingredient systems for food and industrial applications, including fuel grade ethanol. Penford’s products provide convenient and cost-effective solutions derived from renewable sources. Sales of the Company’s products are generated using a combination of direct sales and distributor agreements. | |
The Company has significant research and development capabilities, which are used in applying the complex chemistry of carbohydrate-based materials and in developing applications to address customer needs. In addition, the Company has specialty processing capabilities for a variety of modified starches. | |
Penford manages its business in two segments: Industrial Ingredients and Food Ingredients. These segments are based on broad categories of end-market users. The Food Ingredients segment produces specialty starches for food applications. The Industrial Ingredients segment is a supplier of specialty starches to the paper, packaging and other industries, and is a producer of fuel grade ethanol. The Industrial Ingredients segment also sells the by-products from its corn wet milling manufacturing operations, primarily germ, fiber and gluten to customers who use these by-products as animal feed or to produce corn oil. | |
In January 2012, the Company completed the acquisition of the businesses operated by Carolina Starches, LLC and related entities (“Carolina Starches”) for $8.5 million in cash. Carolina Starches manufactures and markets cationic starches produced from potato, corn and tapioca. The acquisition of these businesses provides an important source of raw material to support continued growth in the Food Ingredients business and broadens the Company’s portfolio of specialty modified industrial starches. See Note 18. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Note 2 — Summary of Significant Accounting Policies | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Penford and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years’ financial statements in order to conform to the current year presentation. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates are used in accounting for, among other things, the allowance for doubtful accounts, accruals, legal contingencies, the determination of fair value of net assets acquired in a business combination, the determination of assumptions for pension and postretirement employee benefit costs, useful lives of property and equipment, the assessment of a potential impairment of goodwill or long-lived assets, and income taxes including the determination of a need for a valuation allowance for deferred tax assets. Actual results may differ from previously estimated amounts. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents consist of cash and temporary investments with maturities of less than three months when purchased. Amounts are reported in the balance sheets at cost, which approximates fair value. | |||||||||||||||||
Cash Overdrafts | |||||||||||||||||
Cash overdrafts represent the amount by which outstanding checks issued, but not yet presented to banks for disbursement, exceed balances on deposit in the applicable bank accounts. The changes in cash overdrafts are included as a component of cash flows from financing activities in the consolidated statements of cash flows. | |||||||||||||||||
Allowance for Doubtful Accounts and Concentration of Credit Risk | |||||||||||||||||
The Company records accounts receivable at net realizable value, which includes an allowance for doubtful accounts to reflect any loss anticipated on the accounts receivable balances. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses in the accounts receivable balances. Penford estimates the allowance for uncollectible accounts based on historical experience, known troubled accounts, industry trends, economic conditions, how recently payments have been received, and ongoing credit evaluations of its customers. Activity in the allowance for doubtful accounts for fiscal 2013, 2012 and 2011 is as follows (dollars in thousands): | |||||||||||||||||
Balance | Charged to | Deductions | Balance | ||||||||||||||
Beginning of | Costs and | and Other | End of Year | ||||||||||||||
Year | Expenses | ||||||||||||||||
Year ended August 31: | |||||||||||||||||
2013 | $ | 78 | $ | 241 | $ | (39 | ) | $ | 280 | ||||||||
2012 | $ | 1,305 | $ | (42 | ) | $ | (1,185 | ) | $ | 78 | |||||||
2011 | $ | 350 | $ | 958 | $ | (3 | ) | $ | 1,305 | ||||||||
Approximately 38%, 36% and 34% of the Company’s sales in fiscal 2013, 2012 and 2011, respectively, were made to customers who operate in the paper industry. This industry suffered an economic downturn, which has resulted in the closure of a number of mills. In fiscal 2011, the increase in the allowance for uncollectible accounts was related to two paper industry customers. These receivables were written off in fiscal 2012. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or net realizable value. Costs are determined using the first-in, first-out (“FIFO”) method. Capitalized costs include materials, labor and manufacturing overhead related to the purchase and production of inventories. | |||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||
The Company’s property consists primarily of plants and equipment used for manufacturing activities. Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred. The Company uses the straight-line method to compute depreciation expense over the estimated useful lives of the depreciable assets. Equipment and vehicles generally have average useful lives ranging from three to twelve years and real estate between twelve to forty-six years. Depreciation, which includes depreciation of assets under capital leases, of $12.8 million, $12.7 million and $12.8 million was recorded in fiscal years 2013, 2012 and 2011, respectively. For income tax purposes, the Company generally uses accelerated depreciation methods. | |||||||||||||||||
Interest is capitalized on major construction projects while in progress. During fiscal years 2013 and 2012, the Company capitalized $107,000 and $48,000, respectively, in interest costs. No interest was capitalized in fiscal 2011. | |||||||||||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment is recognized when estimated expected undiscounted future cash flows are less than the carrying amount of the assets. To the extent that impairment has occurred, the excess of the carrying amount of long-lived assets over its estimated fair value would be recognized as an impairment loss charged to earnings. | |||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||
Goodwill represents the excess of cost over the fair value of net assets acquired. The Company evaluates its goodwill for impairment annually as of June 1 and whenever events or circumstances make it more likely than not that impairment may have occurred. To determine whether goodwill is impaired, Penford compares the fair value of each reporting unit to that reporting unit’s carrying amount. If the fair value of the reporting unit is greater than its carrying amount goodwill is not considered impaired. If the fair value of the reporting unit is lower than its carrying amount, Penford then compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill, and, if the carrying value is higher than the fair value, an impairment charge would be recorded. The implied fair value of a reporting unit is determined using a discounted cash flow method considering the Company’s market capitalization. | |||||||||||||||||
Definite-lived intangible assets, primarily patents, are amortized using the straight-line method over their expected economic useful lives. At August 31, 2013, the weighted average remaining amortization period for patents is five years. Penford has no intangible assets with indefinite lives. | |||||||||||||||||
Accrued Liabilities | |||||||||||||||||
Components of accrued liabilities are as follows (dollars in thousands): | |||||||||||||||||
August 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Employee-related costs | $ | 3,931 | $ | 4,837 | |||||||||||||
Other | 4,276 | 3,400 | |||||||||||||||
Accrued liabilities | $ | 8,207 | $ | 8,237 | |||||||||||||
Employee-related costs include accrued payroll, compensated absences, payroll taxes, benefits and incentives. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenue from sales of products and shipping and handling revenue are recognized at the time goods are shipped and title transfers to the customer. This transfer is considered complete when a sales agreement is in place, delivery has occurred, pricing is fixed or determinable and collection is reasonably assured. Proceeds from the sale of by-products from the Company’s corn wet milling operations are classified as sales in the Statements of Operations. Costs associated with shipping and handling are included in cost of sales. | |||||||||||||||||
Significant Customer and Export Sales | |||||||||||||||||
The Company has several relatively large customers in each business segment. The Company’s sales of ethanol to its sole ethanol customer, Eco-Energy, Inc., represented approximately 21%, 24% and 28% of the Company’s net sales for fiscal years 2013, 2012 and 2011, respectively. Eco-Energy, Inc. is a marketer and distributor of biofuels in the United States and Canada, is a customer of the Company’s Industrial Ingredients business. Export sales accounted for approximately 8.0%, 7.6% and 7.2% of consolidated sales in fiscal years ended August 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Derivatives | |||||||||||||||||
Penford uses derivative instruments to manage the exposures associated with commodity prices, interest rates and energy costs. The derivative instruments are reported at fair value in other current assets or current liabilities in the consolidated balance sheets. The Company offsets the fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value executed with the same counterparty under a master netting arrangement. | |||||||||||||||||
For derivative instruments designated and qualifying as fair value hedges, the gain or loss on the derivative instruments as well as the offsetting gain or loss on the hedged firm commitments or inventory are recognized in current earnings as a component of cost of goods sold. For derivative instruments designated and qualifying as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported as a component of other comprehensive income (loss), net of applicable income taxes, and recognized in earnings when the hedged exposure affects earnings. The Company recognizes the gain or loss on the derivative instrument as a component of cost of goods sold in the period when the finished goods produced from the hedged item are sold or, for interest rate swaps, as a component of interest expense in the period the forecasted transaction is reported in earnings. If it is determined that the derivative instruments used are no longer effective at offsetting changes in cash flows or fair value of the hedged item, then the changes in fair value would be recognized in current earnings as a component of cost of good sold or interest expense. | |||||||||||||||||
Research and Development | |||||||||||||||||
Research and development costs are expensed as incurred, except for costs of patents, which are capitalized and amortized over the lives of the patents. The Company’s research and development expenditures primarily consists of internal salaries, wages, consulting and supplies attributable to time spent on research and development activities. Other costs include depreciation and maintenance of research and development facilities and equipment, including assets at manufacturing locations that are engaged in pilot plant activities. Research and development costs expensed were $5.9 million, $5.8 million and $4.8 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company has a long-term incentive plan that provides for stock-based compensation, including the granting of stock options and shares of restricted stock to employees and directors. The Company utilizes the Black-Scholes option-pricing model to determine the fair value of stock options on the date of grant. This model derives the fair value of stock options based on certain assumptions related to expected stock price volatility, expected option life, risk-free interest rate and dividend yield. The grant date fair value of restricted stock awards is equal to the market price of the Company’s common stock at the grant date. | |||||||||||||||||
The Company recognizes stock-based compensation expense utilizing the accelerated multiple options approach over the requisite service period, which equals the vesting period. See Note 11 for further detail. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The provision for income taxes includes federal and state taxes currently payable and deferred income taxes arising from temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured pursuant to tax laws using the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment. | |||||||||||||||||
A valuation allowance is provided to the extent that it is more likely than not that deferred tax assets will not be realized. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. The amount recognized is measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalty expense associated with uncertain tax positions as a component of income tax expense. | |||||||||||||||||
The Company has not provided deferred taxes related to its investment in foreign subsidiaries, which are classified as discontinued operations, as it does not expect future distributions from the subsidiaries or repayments of permanent advances. | |||||||||||||||||
Foreign Currency | |||||||||||||||||
Assets and liabilities of subsidiaries whose functional currency is deemed to be other than the U.S. dollar are translated at year end rates of exchange. Resulting translation adjustments are accumulated in the currency translation adjustments component of other comprehensive income. Statement of operations amounts are translated at average exchange rates prevailing during the year. Foreign currency transaction gains or losses in fiscal years 2013, 2012 and 2011 were not significant. | |||||||||||||||||
Acquisitions | |||||||||||||||||
Acquisitions of businesses are accounted for using the acquisition method of accounting and the financial statements include the results of the acquired operations from the date of acquisition. The purchase price of the acquired entity is allocated to the net assets acquired and net liabilities assumed based on the estimated fair value at the date of acquisition. The excess of cost over the fair value of the net assets acquired is recognized as goodwill. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In June 2011, the Financial Accounting Standards Board (“FASB”) issued guidance requiring entities to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendment did not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income under current accounting standards. The guidance was effective for the Company’s fiscal year and interim periods beginning September 1, 2012. The Company adopted this amended guidance in fiscal 2013 and presented the Consolidated Statements of Comprehensive Income (Loss) immediately following the Consolidated Statements of Operations. | |||||||||||||||||
In February 2013, the FASB issued guidance requiring entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Entities are required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. This guidance, which is effective prospectively for annual reporting periods’ beginning after December 15, 2012, does not change the current requirements for reporting net income or other comprehensive income. The Company is evaluating the impact this guidance will have on its disclosures. | |||||||||||||||||
In December 2011, the FASB issued guidance creating new disclosure requirements about the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. The disclosure requirements are effective for annual reporting periods, and interim reporting periods within those years, beginning on or after January 1, 2013 (fiscal 2014 for Penford). The Company is evaluating the impact this update will have on its disclosures. | |||||||||||||||||
In July 2013, the FASB issued guidance designed to reduce diversity in practice of financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013 (fiscal 2015 for Penford). The Company does not expect this guidance to have a material effect on its financial position, results of operations or liquidity. | |||||||||||||||||
Inventories
Inventories | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 3 — Inventories | |||||||||
Components of inventory are as follows: | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in thousands) | |||||||||
Raw materials | $ | 10,381 | $ | 19,773 | |||||
Work in progress | 1,913 | 1,542 | |||||||
Finished goods | 21,698 | 22,357 | |||||||
Total inventories | $ | 33,992 | $ | 43,672 | |||||
To reduce the price volatility of corn used in fulfilling some of its starch sales contracts, Penford, from time to time, uses readily marketable exchange-traded futures as well as forward cash corn purchases. The exchange-traded futures are not purchased or sold for trading or speculative purposes and are designated as hedges. See Note 14. General and administrative expenses are not capitalized as a component of inventory. |
Property_and_equipment
Property and equipment | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and equipment | ' | ||||||||
Note 4 – Property and equipment | |||||||||
Components of property and equipment are as follows: | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in thousands) | |||||||||
Land and land improvements | $ | 11,881 | $ | 11,623 | |||||
Plant and equipment | 359,909 | 346,087 | |||||||
Construction in progress | 5,255 | 7,679 | |||||||
377,045 | 365,389 | ||||||||
Accumulated depreciation | (264,904 | ) | (252,198 | ) | |||||
Net property and equipment | $ | 112,141 | $ | 113,191 | |||||
The above table includes approximately $0.8 million and $1.0 million of net property and equipment under capital leases for fiscal years 2013 and 2012, respectively. At August 31, 2013 and 2012, the Company had approximately $0.7 million and $1.1 million, respectively, of payables related to property, plant and equipment. |
Goodwill_and_other_intangible_
Goodwill and other intangible assets | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Goodwill and other intangible assets | ' | ||||||||||||||||
Note 5 – Goodwill and other intangible assets | |||||||||||||||||
The Company’s goodwill of $8.0 million at August 31, 2013 and 2012 relates to the Company’s Food Ingredients reporting unit. There were no additions to goodwill during fiscal 2013. See Note 18 for goodwill added in fiscal 2012 as a result of the acquisition of Carolina Starches. The Company completed its evaluation of the carrying value of goodwill as of June 1, 2013 and determined there was no impairment to the recorded value of goodwill. In order to identify potential impairments, Penford compared the fair value of its Food Ingredients reporting unit with its carrying amount, including goodwill. Penford then compared the implied fair value of goodwill with the carrying amount of that goodwill. The implied fair value of the reporting unit was determined using the discounted cash flow method, the implied market capitalization method and the guideline company method. The implied fair value of the reporting unit was computed using unobservable inputs and the fair value measurements are categorized as Level 3 in the fair value hierarchy. Since there was no indication of impairment, Penford was not required to complete the second step of the process which would measure the amount of any impairment. At June 1, 2013, the fair value of the Food Ingredients reporting unit was substantially in excess of its carrying value, and there are no changes in that conclusion as of August 31, 2013. | |||||||||||||||||
Penford’s intangible assets consist of patents, customer lists and non-compete agreements. Patents are being amortized over the weighted average remaining amortization period of four years as of August 31, 2013. There is no residual value associated with patents. The fair value of customer lists and non-compete agreements from the acquisition of Carolina Starches are being amortized over their estimated useful lives. Customer lists are amortized on a straight-line basis over two years and the non-compete agreements are being amortized on a straight-line basis over the five-year term of the agreements. The carrying amount and accumulated amortization of intangible assets are as follows (dollars in thousands): | |||||||||||||||||
August 31, 2013 | August 31, 2012 | ||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Intangible assets: | |||||||||||||||||
Patents | $ | 1,748 | $ | 1,538 | $ | 1,748 | $ | 1,500 | |||||||||
Customer lists | 190 | 154 | 190 | 59 | |||||||||||||
Non-compete agreements | 100 | 33 | 100 | 12 | |||||||||||||
Other intangible assets | $ | 2,038 | $ | 1,725 | $ | 2,038 | $ | 1,571 | |||||||||
Amortization expense related to intangible assets was $0.1 million in each of the fiscal years 2013 and 2012 and less than $0.1 million in fiscal 2011. The estimated aggregate annual amortization expense for patents is not significant for the next five fiscal years, 2014 through 2018. |
Preferred_Stock_Subject_to_Man
Preferred Stock Subject to Mandatory Redemption | 12 Months Ended |
Aug. 31, 2013 | |
Equity [Abstract] | ' |
Preferred Stock Subject to Mandatory Redemption | ' |
Note 6 — Preferred Stock Subject to Mandatory Redemption | |
On April 7, 2010, the Company issued $40 million of Series A 15% cumulative non-voting, non-convertible preferred stock (“Series A Preferred Stock”) and 100,000 shares of Series B voting convertible preferred stock (“Series B Preferred Stock”) in a private placement to Zell Credit Opportunities Master Fund, L.P., an investment fund managed by Equity Group Investments, a private investment firm (the “Investor”). The Company has 1,000,000 shares of authorized preferred stock, $1.00 par value, of which no shares are issued and outstanding as of August 31, 2013. | |
The Company recorded the Series A Preferred Stock and the Series B Preferred Stock at their relative fair values at the time of issuance. The Series A Preferred Stock of $32.3 million was recorded as a long-term liability due to its mandatory redemption feature and the Series B Preferred Stock of $7.7 million was recorded as equity. The discount on the Series A Preferred Stock was amortized into income using the effective interest method over the contractual life of seven years. The holders of the Series A Preferred Stock were entitled to cash dividends of 6% on the sum of the outstanding Series A Preferred Stock plus accrued and unpaid dividends. In addition, dividends equal to 9% of the outstanding Series A Preferred Stock were accrued. Dividends on the Series A Preferred Stock and the discount accretion were recorded as interest expense in the consolidated statements of operations. | |
In fiscal 2012, the Company redeemed $48.9 million of its Series A Preferred Stock. The Company redeemed 100,000 shares at the original issue price of $40.0 million plus accrued dividends of $8.9 million. As a result of the early redemption, the Company recorded accelerated discount accretion of $5.5 million and amortization of issuance costs of $1.1 million as a loss on redemption in other non-operating income (expense). In addition, in fiscal 2012, the Investor converted its 100,000 shares of Series B Preferred Stock into 1,000,000 shares of the Company’s common stock. |
Debt
Debt | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Note 7 — Debt | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in thousands) | |||||||||
Secured credit agreements — revolving loans, 3.18% weighted average interest rate at August 31, 2013 | $ | 71,506 | $ | 82,606 | |||||
Iowa Department of Economic Development loans | 1,233 | 1,433 | |||||||
Capital lease obligations | 231 | 423 | |||||||
72,970 | 84,462 | ||||||||
Less: current portion and short-term borrowings | 231 | 458 | |||||||
Long-term debt and capital lease obligations | $ | 72,739 | $ | 84,004 | |||||
In July 2012, in connection with the redemption of preferred stock discussed above, the Company refinanced its obligations then outstanding. The Company entered into a $130 million Fourth Amended and Restated Credit Agreement (the “2012 Agreement”) with Bank of Montreal; Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland” New York Branch; KeyBank National Association; JPMorgan Chase Bank N.A.; First Midwest Bank; Private Bank and Trust Company; Greenstone Farm Credit Services, ACA/FLCA and Bank of America, N.A. Under the 2012 Agreement, the Company may borrow $130 million in revolving lines of credit. The lenders’ revolving credit loan commitment may be increased under certain conditions. Under the 2012 Agreement, there are no scheduled principal payments prior to maturity on July 9, 2017. | |||||||||
On August 31, 2013, the Company had $71.5 million outstanding under the 2012 Agreement, which is subject to variable interest rates. Interest rates under the 2012 Agreement are based on either the London Interbank Offered Rates (“LIBOR”) or the prime rate, depending on the selection of available borrowing options under the 2012 Agreement. Pursuant to the 2012 Agreement, the interest rate margin over LIBOR ranges between 2% and 4%, depending upon the Total Leverage Ratio (as defined). | |||||||||
The 2012 Agreement provides that the Total Leverage Ratio, which is computed as funded debt divided by earnings before interest, taxes, depreciation and amortization (as defined in the 2012 Agreement) shall not exceed 3.50 through November 30, 2013; 3.25 through May 31, 2014; and 3.0 thereafter. In addition, the Company must maintain a Fixed Charge Coverage Ratio, as defined in the 2012 Agreement, of not less than 1.35. Fiscal 2014 annual capital expenditures will be restricted to $15 million if the Total Leverage Ratio is greater than 2.00 for the last two fiscal quarters. The Company’s obligations under the 2012 Agreement are secured by substantially all of the Company’s assets. The Company was in compliance with the covenants in the 2012 Agreement as of August 31, 2013. | |||||||||
Pursuant to the 2012 Agreement, the Company may declare and pay dividends on its common stock in an amount not to exceed, in any consecutive four quarters, the lesser of $10 million or 50% of Free Cash Flow, as defined. As of August 31, 2013, the Company was not permitted to pay dividends. | |||||||||
In fiscal 2010, the Iowa Department of Economic Development (“IDED”) awarded financial assistance to the Company as a result of the temporary shutdown of the Cedar Rapids, Iowa plant in the fourth quarter of fiscal 2008 due to record flooding of the Cedar River. The IDED provided two five-year non-interest bearing loans as follows: (1) a $1.0 million loan to be repaid in 60 equal monthly payments of $16,667 beginning December 1, 2009, and (2) a $1.0 million loan which is forgivable if the Company maintains certain levels of employment at the Cedar Rapids plant. At August 31, 2013, the Company had $1.2 million outstanding related to the IDED loans. | |||||||||
The maturities of debt existing at August 31, 2013 for the fiscal years beginning with fiscal 2014 are as follows (dollars in thousands): | |||||||||
2014 | $ | 231 | |||||||
2015 | 1,103 | ||||||||
2016 | 57 | ||||||||
2017 | 71,554 | ||||||||
2018 | 25 | ||||||||
$ | 72,970 | ||||||||
Included in the Company’s long-term debt at August 31, 2013 is $0.2 million of capital lease obligations, of which less than $0.1 million is considered current portion of long-term debt. See Note 10. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
Note 8 — Stockholders’ Equity | |||||||||||||
Common Stock | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Common shares outstanding | |||||||||||||
Balance, beginning of year | 14,280,718 | 13,243,385 | 13,189,581 | ||||||||||
Series B preferred stock converted to common shares | - | 1,000,000 | - | ||||||||||
Exercise of stock options | 121,226 | - | - | ||||||||||
Issuance of restricted stock, net | 52,237 | 37,333 | 53,804 | ||||||||||
Balance, end of year | 14,454,181 | 14,280,718 | 13,243,385 | ||||||||||
Preferred Stock, Series B | |||||||||||||
In fiscal 2012, the Investor converted its 100,000 shares of Series B Preferred Stock into 1,000,000 shares of the Company’s common stock. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Note 9 — Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The components of accumulated other comprehensive loss and other comprehensive income (loss) are summarized below. The components of other comprehensive income (loss) and the income tax expense (benefit) allocated to each component of other comprehensive income (loss), including reclassification adjustments, are presented in the Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||
(In thousands) | Net Unrealized | Gains (Losses) | Accumulated | ||||||||||
Gains (Losses) | on | Other | |||||||||||
on Cash Flow | Postretirement | Comprehensive | |||||||||||
Hedging | Obligations | Loss | |||||||||||
Instruments | |||||||||||||
Balance at August 31, 2010 | $ | (582 | ) | $ | (13,268 | ) | $ | (13,850 | ) | ||||
Other comprehensive income (loss), net of taxes | 1,313 | 4,978 | 6,291 | ||||||||||
Balance at August 31, 2011 | 731 | (8,290 | ) | (7,559 | ) | ||||||||
Other comprehensive income (loss), net of taxes | 907 | (8,941 | ) | (8,034 | ) | ||||||||
Balance at August 31, 2012 | 1,638 | (17,231 | ) | (15,593 | ) | ||||||||
Other comprehensive income (loss), net of taxes | (2,494 | ) | 10,468 | 7,974 | |||||||||
Balance at August 31, 2013 | $ | (856 | ) | $ | (6,763 | ) | $ | (7,619 | ) | ||||
Leases
Leases | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Leases [Abstract] | ' | ||||||||
Leases | ' | ||||||||
Note 10 — Leases | |||||||||
Certain of the Company’s property, plant and equipment is leased under operating leases. Equipment and vehicle leases generally have lease terms ranging from one to fifteen years with renewal options and real estate leases range between five and twenty years with renewal options. In fiscal 2013, 2012 and 2011, rental expense under operating leases was $6.3 million, $6.0 million and $5.4 million, respectively. Future minimum lease payments for fiscal years beginning with fiscal year 2014 for noncancelable operating leases and capital leases having initial lease terms of more than one year are as follows (dollars in thousands): | |||||||||
Capital | Operating Leases | ||||||||
Leases | Minimum Lease | ||||||||
Payments | |||||||||
2014 | $ | 70 | $ | 2,836 | |||||
2015 | 69 | 1,701 | |||||||
2016 | 67 | 942 | |||||||
2017 | 52 | 448 | |||||||
2018 | 17 | 41 | |||||||
Thereafter | 9 | - | |||||||
Total minimum lease payments | 284 | $ | 5,968 | ||||||
Less: amounts representing interest | (53 | ) | |||||||
Net minimum lease payments | $ | 231 | |||||||
Stockbased_Compensation_Plans
Stock-based Compensation Plans | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Stock-based Compensation Plans | ' | ||||||||||||||||||||
Note 11 — Stock-based Compensation Plans | |||||||||||||||||||||
Penford maintains the 2006 Long-Term Incentive Plan (the “2006 Incentive Plan”) pursuant to which various stock-based awards may be granted to employees, directors and consultants. At the Annual Meeting of Shareholders of the Company held on January 26, 2012, the Company’s shareholders approved the amended Penford Corporation 2006 Long-Term Incentive Plan and the number of shares of the Company’s common stock available for issuance under the 2006 Incentive Plan was increased by 800,000 shares. As of August 31, 2013, the aggregate number of shares of the Company’s common stock that were available to be issued as awards under the 2006 Incentive Plan is 388,882. In addition, any shares previously granted under the 1994 Stock Option Plan which are subsequently forfeited or not exercised will be available for future grants under the 2006 Incentive Plan. Non-qualified stock options and restricted stock awards granted under the 2006 Incentive Plan generally vest ratably over one to four years and stock options expire seven years from the date of grant. In addition, the Company may from time to time award compensatory stock-based awards outside of the 2006 Incentive Plan to newly hired employees. | |||||||||||||||||||||
General Option Information | |||||||||||||||||||||
A summary of the stock option activity for the year ended August 31, 2013 is as follows: | |||||||||||||||||||||
Number | Option Price | Weighted | Weighted | Aggregate | |||||||||||||||||
of | Range | Average | Average | Intrinsic | |||||||||||||||||
Shares | Exercise | Remaining | Value | ||||||||||||||||||
Price | Term (in | ||||||||||||||||||||
years) | |||||||||||||||||||||
Outstanding Balance, August 31, 2012 | 1,824,916 | $ | 4.66 — 21.73 | $ | 10.94 | ||||||||||||||||
Granted | 120,000 | 7.60 — 11.09 | 8.49 | ||||||||||||||||||
Exercised | (222,864 | ) | 5.29 — 12.79 | 10.31 | |||||||||||||||||
Cancelled | (204,464 | ) | 9.87 — 17.07 | 14.99 | |||||||||||||||||
Outstanding Balance, August 31, 2013 | 1,517,588 | 4.66 — 21.73 | 10.3 | 3.9 | $ | 6,737,300 | |||||||||||||||
Options Exercisable at August 31, 2013 | 895,339 | $ | 4.66 — 21.73 | $ | 13.17 | 2.74 | $ | 2,144,000 | |||||||||||||
The aggregate intrinsic value disclosed in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of $13.55 per share as of August 31, 2013 that would have been received by the option holders had all option holders exercised on that date. The intrinsic value of options exercised during fiscal year 2013 was $835,300. No stock options were exercised in fiscal years 2012 and 2011. | |||||||||||||||||||||
Valuation and Expense Under ASC 718 | |||||||||||||||||||||
The Company utilizes the Black-Scholes option-pricing model to determine the fair value of stock options on the date of grant. This model derives the fair value of stock options based on certain assumptions related to expected stock price volatility, expected option life, risk-free interest rate and dividend yield. The Company’s expected volatility is based on the historical volatility of the Company’s stock price over the most recent period commensurate with the expected term of the stock option award. The estimated expected option life is based primarily on historical employee exercise patterns and considers whether and the extent to which the options are in-the-money. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve appropriate for the term of the Company’s stock options awards and the selected dividend yield assumption was determined in view of the Company’s historical and estimated dividend payout. The Company has no reason to believe that the expected volatility of its stock price or its option exercise patterns would differ significantly from historical volatility or option exercises. | |||||||||||||||||||||
At the time of the acquisition of the business of Carolina Starches in fiscal 2012, the Company entered into compensatory stock option agreements outside of the Company’s 2006 Incentive Plan with the former owners of Carolina Starches. Pursuant to these agreements, the Company granted options to purchase an aggregate of 82,500 shares of the Company’s common stock at an exercise price equal to the closing price as of the close of business on January 11, 2012. These options have a term of seven years and, subject to certain conditions, vest ratably over a two year period. | |||||||||||||||||||||
Under the 2006 Incentive Plan, the Company granted 120,000 stock options during fiscal 2013, 75,000 of which vest ratably over two years and 45,000 vest ratably over three years. The Company granted 678,000 stock options during fiscal 2012 which vest ratably over three years. In fiscal 2011, the Company granted 98,000 stock options, (i) 80,000 stock options which vest one year from the date of grant, and (ii) 18,000 stock options which vest ratably over four years. The Company estimated the fair value of stock options granted using the following weighted-average assumptions and resulting in the following weighted-average grant date fair value: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected volatility | 68% | 68% | 71% | ||||||||||||||||||
Expected life (years) | 4.7 | 4.9 | 4.3 | ||||||||||||||||||
Interest rate | 0.5 -1.0% | 0.5 -1.1% | 1.1-2.8% | ||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||
Weighted-average fair values | $4.60 | $3.13 | $3.62 | ||||||||||||||||||
As of August 31, 2013, the Company had $0.9 million of unrecognized compensation costs related to non-vested stock option awards that are expected to be recognized over a weighted average period of 1.2 years. | |||||||||||||||||||||
Restricted Stock Awards | |||||||||||||||||||||
The grant date fair value of the Company’s restricted stock awards is equal to the fair value of Penford’s common stock at the grant date. The following table summarizes the restricted stock award activity for the twelve months ended August 31, 2013 as follows: | |||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Shares | Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested at August 31, 2012 | 61,716 | $ | 5.94 | ||||||||||||||||||
Granted | 24,489 | 7.35 | |||||||||||||||||||
Vested | (61,716 | ) | 5.94 | ||||||||||||||||||
Cancelled | - | ||||||||||||||||||||
Nonvested at August 31, 2013 | 24,489 | $ | 7.35 | ||||||||||||||||||
The total grant date fair value of awards vested in 2013, 2012, and 2011 was $0.4 million, $1.0 million and $1.2 million, respectively. On January 1, 2013, each non-employee director received an award of 2,721 shares of restricted stock under the 2006 Incentive Plan at the last reported sale price of the stock on the preceding trading day, which vests one year from grant date of the award. On January 26, 2012, each non-employee director received an award of 3,539 shares of restricted stock under the 2006 Incentive Plan at the last reported sale price of the stock on the preceding trading day, which vested one year from grant date of the award. No restricted stock awards were granted in fiscal year 2011. The Company recognizes compensation cost for restricted stock ratably over the vesting period. | |||||||||||||||||||||
As of August 31, 2013, the Company had less than $0.1 million of unrecognized compensation costs related to non-vested restricted stock awards that is expected to be recognized over a weighted average period of 0.3 years. | |||||||||||||||||||||
Compensation Expense | |||||||||||||||||||||
The Company recognizes stock-based compensation expense utilizing the accelerated multiple option approach over the requisite service period, which equals the vesting period. The following table summarizes the total stock-based compensation cost for fiscal years 2013, 2012 and 2011 and the effect on the Company’s consolidated statements of operations (dollars in thousands): | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Cost of sales | $ | - | $ | 48 | $ | 130 | |||||||||||||||
Operating expenses | 1,404 | 1,324 | 949 | ||||||||||||||||||
Research and development expenses | - | 15 | 38 | ||||||||||||||||||
Total stock-based compensation expense | $ | 1,404 | $ | 1,387 | $ | 1,117 | |||||||||||||||
Income tax benefit | (534 | ) | (527 | ) | (424 | ) | |||||||||||||||
Total stock-based compensation expense, net of tax | $ | 870 | $ | 860 | $ | 693 | |||||||||||||||
Pensions_and_Other_Postretirem
Pensions and Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Pensions and Other Postretirement Benefits | ' | ||||||||||||||||||||||||
Note 12 — Pensions and Other Postretirement Benefits | |||||||||||||||||||||||||
Penford maintains two noncontributory defined benefit pension plans that cover approximately 56% of its employees. The defined benefit pension plans for salaried and bargaining unit hourly employees were closed to new participants effective January 1, 2005 and August 1, 2004, respectively. The Company also maintains a postretirement health care benefit plan covering its bargaining unit hourly retirees. Effective August 1, 2004, the Company’s postretirement health care benefit plan covering bargaining unit hourly employees was closed to new entrants and to any current employee who did not meet minimum requirements as to age plus years of service. For the plans described above, the Company determines the vested benefit obligation on the actuarial present value based on the employee’s expected date of retirement. | |||||||||||||||||||||||||
Obligations and Funded Status | |||||||||||||||||||||||||
The following represents information summarizing the Company’s pension and other postretirement benefit plans. A measurement date of August 31, 2013 was used for all plans. | |||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at September 1 | $ | 62,989 | $ | 47,545 | $ | 20,457 | $ | 16,924 | |||||||||||||||||
Service cost | 1,945 | 1,521 | 235 | 229 | |||||||||||||||||||||
Interest cost | 2,648 | 2,729 | 860 | 972 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 106 | 119 | |||||||||||||||||||||
Amendments | — | 212 | — | — | |||||||||||||||||||||
Actuarial (gain) loss | (107 | ) | 619 | 267 | (170 | ) | |||||||||||||||||||
Change in assumptions | (8,135 | ) | 12,359 | (3,912 | ) | 3,024 | |||||||||||||||||||
Benefits paid | (2,062 | ) | (1,996 | ) | (657 | ) | (641 | ) | |||||||||||||||||
Benefit obligation at August 31 | $ | 57,278 | $ | 62,989 | $ | 17,356 | $ | 20,457 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at September 1 | $ | 42,072 | $ | 36,328 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 5,580 | 3,688 | — | — | |||||||||||||||||||||
Company contributions | 1,136 | 4,052 | 551 | 522 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 106 | 119 | |||||||||||||||||||||
Benefits paid | (2,062 | ) | (1,996 | ) | (657 | ) | (641 | ) | |||||||||||||||||
Fair value of the plan assets at August 31 | $ | 46,726 | $ | 42,072 | $ | — | $ | — | |||||||||||||||||
Funded status: | |||||||||||||||||||||||||
Net liability – Plan assets less than projected benefit obligation | $ | (10,552 | ) | $ | (20,917 | ) | $ | (17,356 | ) | $ | (20,457 | ) | |||||||||||||
Recognized as: | |||||||||||||||||||||||||
Current accrued benefit liability | $ | — | $ | — | $ | (760 | ) | $ | (750 | ) | |||||||||||||||
Non-current accrued benefit liability | (10,552 | ) | (20,917 | ) | (16,596 | ) | (19,707 | ) | |||||||||||||||||
Net Amount Recognized | $ | (10,552 | ) | $ | (20,917 | ) | $ | (17,356 | ) | $ | (20,457 | ) | |||||||||||||
Accumulated other comprehensive loss consists of the following amounts that have not yet been recognized as components of net benefit cost (dollars in thousands): | |||||||||||||||||||||||||
August 31, 2013 | August 31, 2012 | ||||||||||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||
Unrecognized prior service cost (credit) | $ | 1,288 | $ | (155 | ) | $ | 1,529 | $ | (307 | ) | |||||||||||||||
Unrecognized net actuarial loss | 10,091 | (318 | ) | 22,976 | 3,594 | ||||||||||||||||||||
Total | $ | 11,379 | $ | (473 | ) | $ | 24,505 | $ | 3,287 | ||||||||||||||||
Selected information related to the Company’s defined benefit pension plans that have benefit obligations in excess of fair value of plan assets is presented below (dollars in thousands): | |||||||||||||||||||||||||
August 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Projected benefit obligation | $ | 57,278 | $ | 62,989 | |||||||||||||||||||||
Accumulated benefit obligation | $ | 54,389 | $ | 59,853 | |||||||||||||||||||||
Fair value of plan assets | $ | 46,726 | $ | 42,072 | |||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 1,945 | $ | 1,521 | $ | 1,617 | $ | 235 | $ | 229 | $ | 272 | |||||||||||||
Interest cost | 2,648 | 2,729 | 2,696 | 860 | 972 | 972 | |||||||||||||||||||
Expected return on plan assets | (2,869 | ) | (2,914 | ) | (2,234 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost | 241 | 228 | 228 | (152 | ) | (152 | ) | (152 | ) | ||||||||||||||||
Amortization of actuarial loss | 1,932 | 773 | 1,441 | 267 | — | 65 | |||||||||||||||||||
Benefit cost | $ | 3,897 | $ | 2,337 | $ | 3,748 | $ | 1,210 | $ | 1,049 | $ | 1,157 | |||||||||||||
Assumptions | |||||||||||||||||||||||||
The Company assesses its benefit plan assumptions on a regular basis. Assumptions used in determining plan information are as follows: | |||||||||||||||||||||||||
August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted-average assumptions used to calculate net periodic expense: | |||||||||||||||||||||||||
Discount rate | 4.28 | % | 5.87 | % | 5.64 | % | 4.28 | % | 5.87 | % | 5.64 | % | |||||||||||||
Expected return on plan assets | 7 | % | 8 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | |||||||||||||||||||
Weighted-average assumptions used to calculate benefit obligations at August 31: | |||||||||||||||||||||||||
Discount rate | 5.24 | % | 4.28 | % | 5.87 | % | 5.24 | % | 4.28 | % | 5.87 | % | |||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | 3 | % | |||||||||||||||||||
The expected long-term return on assets assumption for the pension plans represents the average rate of return to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In developing the expected rate of return, the Company considers long-term historical market rates of return as well as actual returns on the Company’s plan assets, and adjusts this information to reflect expected capital market trends. Penford also considers forward looking return expectations by asset class, the contribution of active management and management fees paid by the plans. The plan assets are held in qualified trusts and anticipated rates of return are not reduced for income taxes. The expected long-term return on assets assumption used to calculate net periodic pension expense was 7.0% for fiscal 2013. A decrease (increase) of 50 basis points in the expected return on assets assumptions would increase (decrease) pension expense by approximately $0.2 million based on the assets of the plans at August 31, 2013. The expected return on plan assets to be used in calculating fiscal 2014 pension expense is 7.0%. | |||||||||||||||||||||||||
The discount rate used by the Company in determining pension expense and pension obligations reflects the yield of high quality (AA or better rating by a recognized rating agency) corporate bonds whose cash flows are expected to match the timing and amounts of projected future benefit payments. The discount rates to determine net periodic expense used in fiscal 2011 (5.64%), fiscal 2012 (5.87%) and fiscal 2013 (4.28%) reflect the change in bond yields over the last several years. During fiscal 2013, bond yields increased and Penford has increased the discount rate for calculating its benefit obligations at August 31, 2013, as well as net periodic expense for fiscal 2014, to 5.24%. Lowering the discount rate by 25 basis points would increase pension expense by approximately $0.24 million. The effect of lowering the discount rate by 25 basis points on other postretirement benefit expense would not be material. | |||||||||||||||||||||||||
Unrecognized net loss amounts reflect the difference between expected and actual returns on pension plan assets as well as the effects of changes in actuarial assumptions. Unrecognized net losses in excess of certain thresholds are amortized into net periodic pension and postretirement benefit expense over the average remaining service life of active employees. Amortization of unrecognized net loss amounts is expected to increase net pension expense by approximately $0.5 million in fiscal 2014. Amortization of unrecognized net losses is not expected to increase net postretirement health care expense in fiscal 2014. | |||||||||||||||||||||||||
Assumed health care cost trend rates: | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Current health care trend assumption | 7.8 | % | 8 | % | 8 | % | |||||||||||||||||||
Ultimate health care trend rate | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||||||||
Year ultimate health care trend is reached | 2032 | 2030 | 2029 | ||||||||||||||||||||||
The assumed health care cost trend rate could have a significant effect on the amounts reported. A one-percentage-point change in the assumed health care cost trend rate would have the following effects: | |||||||||||||||||||||||||
1-Percentage- | 1-Percentage- | ||||||||||||||||||||||||
Point | Point | ||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Effect on total of service and interest cost components in fiscal 2013 | $ | 182 | $ | (146 | ) | ||||||||||||||||||||
Effect on postretirement accumulated benefit obligation as of August 31, 2013 | $ | 2,405 | $ | (1,999 | ) | ||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The weighted average asset allocations of the investment portfolio for the pension plans at August 31 are as follows: | |||||||||||||||||||||||||
Target | August 31, | ||||||||||||||||||||||||
Allocation | 2013 | 2012 | |||||||||||||||||||||||
U.S. equities | 55 | % | 55 | % | 56 | % | |||||||||||||||||||
International equities | 15 | % | 15 | % | 15 | % | |||||||||||||||||||
Fixed income investments | 25 | % | 25 | % | 24 | % | |||||||||||||||||||
Real estate | 5 | % | 5 | % | 5 | % | |||||||||||||||||||
During fiscal 2013, the assets of the pension plans are invested in units of common trust funds actively managed by Russell Trust Company, a professional fund investment manager. The investment strategy for the defined benefit pension assets is to maintain a diversified asset allocation in order to minimize the risk of large losses and maximize the long-term risk-adjusted rate of return. No plan assets are invested in Penford shares. There are no plan assets for the Company’s postretirement health care plans. | |||||||||||||||||||||||||
See Note 14, “Fair Value Measurements and Derivative Instruments,” for a description of the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The Company’s employee pension plan assets are principally comprised of the following types of investments: | |||||||||||||||||||||||||
Common collective trust funds: The fair value of these funds is based on the cumulative net asset value of their underlying investments. The investments in common collective trust funds are comprised of equity funds, fixed income funds and international equity funds. The funds are valued at net asset value based on the closing market value of the units bought or sold as of the valuation date and are classified in Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Real estate equity funds: The real estate equity funds are composed of underlying investments in primarily nine established income-producing real estate funds and short-term investment funds. The underlying fund net asset values are based on the values of the real estate assets as determined by appraisal. The appraisals are conducted in accordance with Appraisal Institute guidelines including consideration of projected income and expenses of the property as well as recent sales of similar properties. The underlying funds value all real estate investments quarterly and all real estate investments are independently appraised at least once per year as required by the Global Investment Performance Standards. Redemption requests are considered quarterly and are subject to notice of 110 days. The real estate fund is included in Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
The following table presents the fair value of the pension plan’s assets by major asset category as of August 31, 2013. | |||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | ||||||||||||||||||||||
In Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Common collective trust funds | $ | $ | 44,378 | $ | - | $ | 44,378 | ||||||||||||||||||
Real estate equity funds | - | - | 2,348 | 2,348 | |||||||||||||||||||||
Fair value of plan assets | $ | - | $ | 44,378 | $ | 2,348 | $ | 46,726 | |||||||||||||||||
The following table summarizes the changes in fair value of the pension plan’s real estate equity fund (Level 3) for fiscal year ended August 31, 2013. | |||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||
Equity Fund | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Balance, August 31, 2012 | $ | 2,102 | |||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | 246 | ||||||||||||||||||||||||
Relating to assets sold during the period | - | ||||||||||||||||||||||||
Purchases and sales | - | ||||||||||||||||||||||||
Transfers in (out) of Level 3 | - | ||||||||||||||||||||||||
Balance, August 31, 2013 | $ | 2,348 | |||||||||||||||||||||||
Contributions and Benefit Payments | |||||||||||||||||||||||||
The Company’s funding policy for the defined benefit pension plans is to contribute amounts sufficient to meet the statutory funding requirements of the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006. The Company contributed $1.1 million, $4.1 million and $6.4 million in fiscal 2013, 2012 and 2011, respectively. The Company estimates that the minimum pension plan funding contribution during fiscal 2014 will be approximately $2.5 million. | |||||||||||||||||||||||||
Penford funds the benefit payments of its postretirement health care plans on a cash basis; therefore, the Company’s contributions to these plans in fiscal 2014 will approximate the benefit payments below. | |||||||||||||||||||||||||
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include benefits attributable to estimate future employee service. | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
2014 | $ | 2.4 | $ | 0.9 | |||||||||||||||||||||
2015 | 2.5 | 1 | |||||||||||||||||||||||
2016 | 2.6 | 1 | |||||||||||||||||||||||
2017 | 2.8 | 1.1 | |||||||||||||||||||||||
2018 | 3 | 1.2 | |||||||||||||||||||||||
2019-2023 | $ | 18.7 | $ | 7.7 |
Other_Employee_Benefits
Other Employee Benefits | 12 Months Ended |
Aug. 31, 2013 | |
Postemployment Benefits [Abstract] | ' |
Other Employee Benefits | ' |
Note 13 — Other Employee Benefits | |
Savings and Stock Ownership Plan | |
The Company has a defined contribution savings plan by which eligible employees can elect a maximum salary deferral of 16%. The plan provides a 100% match on the first 3% of salary contributions and a 50% match on the next 3% per employee. The Company’s matching contributions were $1.2 million, $1.0 million and $0.9 million for fiscal years 2013, 2012 and 2011, respectively. | |
Deferred Compensation Plan | |
The Company provided its directors and certain employees the opportunity to defer a portion of their salary, bonus and fees. The plan was closed to new contributions effective January 31, 2011. The deferrals earn interest based on Moody’s current Corporate Bond Yield. Deferred compensation interest of $177,000, $179,000 and $197,000 was accrued in fiscal years 2013, 2012 and 2011, respectively. | |
Supplemental Executive Retirement Plan | |
The Company sponsors a supplemental executive retirement plan, a non-qualified plan, which covers certain employees. No current executive officers participate in this plan. For fiscal 2013, 2012 and 2011, the net periodic pension expense accrued for this plan was $271,000, $258,000 and $370,000, respectively. The accrued obligation related to the plan was $2.7 million at August 31, 2013 and 2012. The plan was amended in fiscal 2011 such that no participant in the plan would accrue any additional benefits after January 31, 2011. | |
Health Care and Life Insurance Benefits | |
The Company offers health care and life insurance benefits to most active employees. Costs incurred to provide these benefits are charged to expense as incurred. Health care and life insurance expense, net of employee contributions, was $5.9 million, $5.1 million and $4.5 million in fiscal years 2013, 2012 and 2011, respectively. |
Fair_Value_Measurements_and_De
Fair Value Measurements and Derivative Instruments | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Derivative Instruments | ' | ||||||||||||||||||||||||||||||||||||
Note 14 — Fair Value Measurements and Derivative Instruments | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (an exit price) in Penford’s principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy was established that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources outside the reporting entity. Unobservable inputs are inputs that reflect Penford’s own assumptions based on market data and on assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three levels of inputs that may be used to measure fair value are: | |||||||||||||||||||||||||||||||||||||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. | ||||||||||||||||||||||||||||||||||||
• | Level 2 inputs are other than quoted prices included within Level 1 that are observable for assets and liabilities such as (1) quoted prices for similar assets or liabilities in active markets, (2) quoted prices for identical or similar assets or liabilities in markets that are not active, or (3) inputs that are derived principally or corroborated by observable market date by correlation or other means. | ||||||||||||||||||||||||||||||||||||
• | Level 3 inputs are unobservable inputs to the valuation methodology for the assets or liabilities. | ||||||||||||||||||||||||||||||||||||
Presented below are the fair values of the Company’s derivative instruments as of August 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||
As of August 31, 2013 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Current assets (Other Current Assets): | |||||||||||||||||||||||||||||||||||||
Commodity derivatives (1) | $ | 512 | $ | - | $ | - | $ | 512 | |||||||||||||||||||||||||||||
(1) On the consolidated balance sheets, commodity derivative assets and liabilities have been offset by cash collateral due and paid under master netting arrangements which are recorded together in Other Current Assets. The cash collateral offset was $1.7 million at August 31, 2013. | |||||||||||||||||||||||||||||||||||||
As of August 31, 2012 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Current assets (Other Current Assets): | |||||||||||||||||||||||||||||||||||||
Commodity derivatives (1) | $ | (1,422) | $ | - | $ | - | $ | (1,422) | |||||||||||||||||||||||||||||
(1) On the consolidated balance sheets, commodity derivative assets and liabilities have been offset by cash collateral due and paid under master netting arrangements which are recorded together in Other Current Assets. The cash collateral offset was $2.6 million at August 31, 2012. | |||||||||||||||||||||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||||||||||||||
The carrying value of cash and cash equivalents, receivables and payables approximates fair value because of their short maturities. The Company’s bank debt interest rate reprices with changes in market interest rates and, accordingly, the carrying amount of such debt approximates fair value. | |||||||||||||||||||||||||||||||||||||
In fiscal 2010, the Company received two non-interest bearing loans from the State of Iowa. The carrying value of the debt at August 31, 2013 was $1.2 million and the fair value of the debt was estimated to be $1.2 million. See Note 7. The fair value was computed using a discounted cash flow methodology. The discount rate was selected by reference to corporate debenture yields for comparable companies. The fair value was computed using Level 2 inputs. | |||||||||||||||||||||||||||||||||||||
Commodity Contracts | |||||||||||||||||||||||||||||||||||||
For derivative instruments designated as fair value hedges, the gain or loss on the derivative instruments as well as the offsetting gain or loss on the hedged firm commitments and/or inventory are recognized in current earnings as a component of cost of sales. For derivative instruments designated as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported as a component of other comprehensive income (loss), net of applicable income taxes, and recognized in earnings when the hedged exposure affects earnings. The Company recognizes the gain or loss on the derivative instrument as a component of cost of sales in the period when the finished goods produced from the hedged item are sold. If it is determined that the derivative instruments used are no longer effective at offsetting changes in the price of the hedged item, then the changes in fair value would be recognized in current earnings as a component of cost of goods sold. | |||||||||||||||||||||||||||||||||||||
To reduce the price volatility of corn used in fulfilling some of its starch sales contracts, Penford uses readily marketable exchange-traded futures as well as forward cash corn purchases. Penford also uses exchange-traded futures to hedge corn inventories, firm commitments to purchase corn and forecasted purchases of corn. The exchange-traded futures are not purchased or sold for trading or speculative purposes and are designated as hedges. These futures contracts were designated as hedges. | |||||||||||||||||||||||||||||||||||||
Prices for natural gas fluctuate due to anticipated changes in supply and demand and movement of prices of related or alternative fuels. To reduce the price risk caused by market fluctuations, Penford generally enters into short-term purchase contracts or uses exchange-traded futures contracts to hedge exposure to natural gas price fluctuations. These futures contracts were designated as hedges prior to fiscal 2012. In September 2011, the Company discontinued hedge accounting treatment for natural gas futures contracts as the hedging relationship no longer met the requirements for hedge accounting. Through August 31, 2011, the gains and losses on natural gas futures contracts were deferred in accumulated other comprehensive income. At the time hedge accounting was discontinued, $0.5 million of pretax losses continued to be deferred in accumulated other comprehensive income for these natural gas futures contracts. These losses were reclassified to cost of sales during fiscal 2012 as the originally forecasted cash flows occurred. Gains and losses on natural gas futures contracts since August 31, 2011 were recognized in cost of sales in the Consolidated Statement of Operations. | |||||||||||||||||||||||||||||||||||||
Selling prices for ethanol fluctuate based on the availability and price of manufacturing inputs and the status of various government regulations and tax incentives. To reduce the risk of the price variability of ethanol, Penford enters into exchange-traded futures contracts to hedge exposure to ethanol price fluctuations. These futures contracts have been designated as hedges. | |||||||||||||||||||||||||||||||||||||
Hedged transactions are generally expected to occur within 12 months of the time the hedge is established. The deferred gain (loss), net of tax, recorded in other comprehensive income at August 31, 2013 that is expected to be reclassified into income within 12 months is $(0.9) million. | |||||||||||||||||||||||||||||||||||||
As of August 31, 2013, Penford had purchased corn positions of 3.1 million bushels, of which 2.2 million bushels represented equivalent firm priced starch and ethanol sales contract volume, resulting in an open position of 0.9 million bushels. | |||||||||||||||||||||||||||||||||||||
As of August 31, 2013, the Company had the following outstanding futures contracts: | |||||||||||||||||||||||||||||||||||||
Corn Futures | 4,190,000 | Bushels | |||||||||||||||||||||||||||||||||||
Ethanol Swaps | 7,350,000 | Gallons | |||||||||||||||||||||||||||||||||||
The following tables provide information about the fair values of the Company’s derivatives, by contract type, as of August 31, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
In thousands | Fair Value August 31 | Fair Value August 31 | |||||||||||||||||||||||||||||||||||
Balance Sheet | 2013 | 2012 | Balance Sheet | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Location | Location | ||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||||||||||||||||
Corn Futures | Other Current Assets | $ | - | $ | 12 | Other Current Assets | $ | 485 | $ | 126 | |||||||||||||||||||||||||||
Ethanol Futures | Other Current Assets | 997 | - | Other Current Assets | - | 706 | |||||||||||||||||||||||||||||||
Fair Value Hedges: | |||||||||||||||||||||||||||||||||||||
Corn Futures | Other Current Assets | - | - | Other Current Assets | - | 602 | |||||||||||||||||||||||||||||||
$ | 997 | $ | 12 | $ | 485 | $ | 1,434 | ||||||||||||||||||||||||||||||
The following tables provide information about the effect of derivative instruments on the financial performance of the Company for the fiscal years ended August 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||||||||||
In thousands | Amount of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | ||||||||||||||||||||||||||||||||||
Recognized in AOCI | Reclassified from | Recognized in Income | |||||||||||||||||||||||||||||||||||
AOCI into Income | |||||||||||||||||||||||||||||||||||||
Year Ended August 31 | Year Ended August 31 | Year Ended August 31 | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||||||||||||||||
Corn Futures (1) | $ | (407 | ) | $ | 2,067 | $ | (4,949 | ) | $ | 5,351 | $ | 1,500 | $ | (7,418 | ) | $ | (870 | ) | $ | 36 | $ | (162 | ) | ||||||||||||||
Natural Gas Futures (1) | - | - | (579 | ) | - | (492 | ) | (1,332 | ) | - | - | (85 | ) | ||||||||||||||||||||||||
Ethanol Futures (1) | 1,611 | 1,667 | (4,180 | ) | (123 | ) | 1,263 | (3,075 | ) | (151 | ) | - | - | ||||||||||||||||||||||||
$ | 1,204 | $ | 3,734 | $ | (9,708 | ) | $ | 5,228 | $ | 2,271 | $ | (11,825 | ) | $ | (1,021 | ) | $ | 36 | $ | (247 | ) | ||||||||||||||||
Fair Value Hedges: | |||||||||||||||||||||||||||||||||||||
Corn Futures (1) (2) | $ | 363 | $ | 98 | 28 | ||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Natural Gas Futures (1) | $ | 94 | $ | (1,082 | ) | $ | - | ||||||||||||||||||||||||||||||
FX Contracts (1) | - | 6 | - | ||||||||||||||||||||||||||||||||||
Soybean Oil Futures (1) | - | 12 | - | ||||||||||||||||||||||||||||||||||
Soybean Meal Futures (1) | - | (14 | ) | - | |||||||||||||||||||||||||||||||||
$ | 94 | $ | (1,078 | ) | $ | - | |||||||||||||||||||||||||||||||
(1) Gains and losses reported in cost of goods sold | |||||||||||||||||||||||||||||||||||||
(2) Hedged items are firm commitments and inventory | |||||||||||||||||||||||||||||||||||||
Other_Nonoperating_Income_Expe
Other Non-operating Income (Expense) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Other Non-operating Income (Expense) | ' | ||||||||||||
Note 15 — Other Non-operating Income (Expense) | |||||||||||||
Other non-operating income (expense) consists of the following: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Loss on redemption of Series A Preferred Stock | $ | — | $ | (6,599 | ) | $ | — | ||||||
Other | 75 | 413 | 115 | ||||||||||
$ | 75 | $ | (6,186 | ) | $ | 115 | |||||||
In 2012 the Company redeemed its Series A Preferred Stock. See Note 6. In fiscal 2012, the Company redeemed 100,000 shares at the original issue price of $40.0 million plus accrued dividends of $8.9 million. As a result of the early redemptions, the Company recorded accelerated discount accretion of $5.5 million and amortization of issuance costs of $1.1 million as a loss on redemption in other non-operating income (expense). |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Note 16 — Income Taxes | |||||||||||||
The Company’s U.S. income (loss) before income taxes for fiscal years 2013, 2012 and 2011 was $5.0 million, $(4.9) million, and $(4.2) million, respectively. Foreign income (loss) before income taxes for fiscal years 2013, 2012, and 2011 was $0.5 million, $0.1 million, and (0.6) million, respectively. Foreign tax expense for all three years was zero. | |||||||||||||
U.S. Income tax expense (benefit) consists of the following: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | (422 | ) | $ | (162 | ) | $ | 34 | |||||
State | 80 | 3 | 137 | ||||||||||
(342 | ) | (159 | ) | 171 | |||||||||
Deferred: | |||||||||||||
Federal | 1,829 | 4,582 | 9 | ||||||||||
State | (4 | ) | 383 | 133 | |||||||||
1,825 | 4,965 | 142 | |||||||||||
Total | $1,483 | $4,806 | $313 | ||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Comprehensive tax expense (benefit) allocable to: | |||||||||||||
Income before taxes | $ | 1,483 | $ | 4,806 | $ | 313 | |||||||
Comprehensive income (loss) | 4,887 | (4,924 | ) | 3,856 | |||||||||
$ | 6,370 | $ | (118 | ) | $ | 4,169 | |||||||
A reconciliation of the statutory federal tax to the actual provision (benefit) for taxes is as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Statutory tax rate | 35% | 35% | 35% | ||||||||||
Statutory tax on income | $ | 1,921 | $ | (1,666 | ) | $ | (1,682 | ) | |||||
State taxes, net of federal benefit | 94 | 219 | 52 | ||||||||||
Non-deductible expenses related to preferred stock | - | 4,547 | 2,687 | ||||||||||
Research credit | (189 | ) | (73 | ) | (195 | ) | |||||||
Ethanol credit | - | - | (975 | ) | |||||||||
Foreign taxes | (183 | ) | (38 | ) | 200 | ||||||||
Stock option exercises/expirations | 376 | - | - | ||||||||||
Prior year true up | (265 | ) | 95 | 79 | |||||||||
Unrecognized tax benefits | (359 | ) | (165 | ) | 67 | ||||||||
Valuation allowance | (104 | ) | 1,787 | - | |||||||||
Other | 192 | 100 | 80 | ||||||||||
Total provision (benefit) | $ | 1,483 | $ | 4,806 | $ | 313 | |||||||
The significant components of deferred tax assets and liabilities are as follows: | |||||||||||||
August 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Alternative minimum tax credit | $ | 3,473 | $ | 3,354 | |||||||||
Postretirement benefits | 11,920 | 18,060 | |||||||||||
Provisions for accrued expenses | 2,791 | 2,908 | |||||||||||
Stock-based compensation | 2,453 | 2,420 | |||||||||||
Net operating loss carryforward | 4,575 | 7,469 | |||||||||||
Tax credit carryforwards | 4,373 | 4,152 | |||||||||||
NOL carryforward-foreign | 10,853 | 11,010 | |||||||||||
Hedging | 525 | - | |||||||||||
Other | 2,092 | 2,025 | |||||||||||
43,055 | 51,398 | ||||||||||||
Less - valuation allowance | (12,537 | ) | (12,797 | ) | |||||||||
Total deferred tax assets | 30,518 | 38,601 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | 22,296 | 21,762 | |||||||||||
Hedging | - | 1,004 | |||||||||||
Other | 1,756 | 2,560 | |||||||||||
Total deferred tax liabilities | 24,052 | 25,326 | |||||||||||
Net deferred tax assets | $ | 6,466 | $ | 13,275 | |||||||||
Recognized as: | |||||||||||||
Other current assets | $ | 1,479 | $ | 167 | |||||||||
Deferred tax asset | 4,987 | 13,108 | |||||||||||
Total net deferred tax assets | $ | 6,466 | $ | 13,275 | |||||||||
Carryforwards | |||||||||||||
At August 31, 2013, the Company had a U.S. federal alternative minimum tax credit carryforward of $3.5 million with no expiration, research and development credit carryforwards of $1.7 million expiring 2025 through 2032, a small ethanol producer credit of $2.6 million expiring 2014, and a net operating loss carryforward of $10.8 million expiring in 2030. The Company also has U.S. state net operating loss carryforwards of $19.8 million with expiration dates between 2014 and 2030. | |||||||||||||
Valuation Allowance | |||||||||||||
In fiscal 2012, the Company recorded a $1.8 million valuation allowance related to small ethanol producer tax credit carryforwards which expire in fiscal 2014. Tax laws require that any net operating loss carryforwards be utilized before the Company can utilize the small ethanol producer tax credit carryforwards. As a result of challenging market trends related to the cost of corn and ethanol pricing and the redemptions of the Company’s Series A Preferred Stock discussed in Note 6, estimates of future taxable income during the carryforward periods were revised. Due to the near-term expiration of the small ethanol producer tax credit carryforward period, the Company did not believe it had sufficient positive evidence to substantiate that the small ethanol tax credit carryforwards were realizable at a more-likely-than-not level of assurance and recorded a $1.8 million valuation allowance. During fiscal 2013, $0.1 million of the valuation allowance was reversed as the Company expects to utilize the credit. The remaining valuation allowance will be reversed in future periods if it is more likely than not that these tax credit carryforwards will be utilized. | |||||||||||||
In fiscal 2012, the Company recorded a $44,000 valuation allowance related to charitable contributions which expire in fiscal years 2013 through 2015. In fiscal 2013, the valuation allowance was reduced by $22,000 as a portion of the charitable contributions carryforward expired unused. Tax laws limit the deduction of charitable contributions to 10% of otherwise taxable income with the excess carried forward for five years. Utilization of net operating loss carryforwards are considered to reduce taxable income. Due to the near-term expiration of these deductions, the Company did not believe that it had sufficient positive evidence to substantiate that the charitable contributions carryforwards were realizable at a more-likely-than-not level of assurance and recorded a valuation allowance. The valuation allowance will be reversed in future periods if it is more likely than not that these deductions will be utilized. | |||||||||||||
At August 31, 2013, the Company had $6.5 million of U.S. net deferred tax assets. Other than for the ethanol tax credit and charitable contributions discussed above, a valuation allowance has not been provided on the net U.S. deferred tax assets as of August 31, 2013. The determination of the need for a valuation allowance requires significant judgment and estimates. The Company evaluates the requirement for a valuation allowance each quarter as the Company incurred book losses in fiscal 2012 and the two previous fiscal years. The Company believes that it is more likely than not that future operations will generate sufficient taxable income to realize its deferred tax assets. However, there can be no assurance that management’s current plans will be achieved or that a valuation allowance will not be required in the future. | |||||||||||||
The Company sold the assets of its Australia/New Zealand operations in fiscal 2010. The Company believes that it is more likely than not that the net deferred tax asset of $10.9 million recorded for the Australian operations will not be realized. The Company’s discontinued Australian operations recorded a valuation allowance as of August 31, 2013 of $10.9 million against the entire Australian net deferred tax asset. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
The total amount of gross unrecognized tax benefits was $0.7 million at August 31, 2013, all of which, if recognized, would impact the Company’s effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Unrecognized tax benefits at beginning of year | $ | 1,058 | $ | 1,220 | |||||||||
Additions for tax positions related to prior years | 134 | 112 | |||||||||||
Additions for tax positions related to current year | 90 | 62 | |||||||||||
Reductions due to lapse of applicable statute of limitations | (576 | ) | (336 | ) | |||||||||
Unrecognized tax benefits at end of year | $ | 706 | $ | 1,058 | |||||||||
The Company’s policy is to recognize interest and penalty expense associated with uncertain tax positions as a component of income tax expense (benefit) in the consolidated statements of operations. As of August 31, 2013 and 2012, the Company had $0.1 million and $0.2 million, respectively, of accrued interest and penalties included in the long-term tax liability. During fiscal 2013, the Company decreased the liability for unrecognized tax benefits by $44,000 for interest and $51,000 for penalties. | |||||||||||||
Other | |||||||||||||
The Company files tax returns in the U.S. federal jurisdiction and various U.S. state jurisdictions, and is subject to examination by taxing authorities in all of those jurisdictions. From time to time, the Company’s tax returns are reviewed or audited by U.S. federal and various U.S. state taxing authorities. The Company believes that adjustments, if any, resulting from these reviews or audits would not be material, individually or in the aggregate, to the Company’s financial position, results of operations or liquidity. It is reasonably possible that the amount of unrecognized tax benefits related to certain of the Company’s tax positions will increase or decrease in the next twelve months as audits or reviews are initiated and settled. At this time, an estimate of the range of a reasonably possible change cannot be made. The Company is not subject to income tax examinations by U.S. federal or state jurisdictions for fiscal years prior to 2009. | |||||||||||||
Deferred tax liabilities or assets are not recognized on temporary differences from undistributed earnings of foreign subsidiaries and from foreign exchange translation gains or losses on permanent advances to foreign subsidiaries as the Company does not expect that the divestiture of its foreign subsidiaries will result in any tax benefit or expense. |
Earnings_loss_per_Common_Share
Earnings (loss) per Common Share | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings (loss) per Common Share | ' | ||||||||||||
Note 17 — Earnings (loss) per Common Share | |||||||||||||
Outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends participate in undistributed earnings with common shareholders and, therefore, are included in computing earnings per share under the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Restricted stock awards granted to certain employees and directors under the Company’s 2006 Incentive Plan, which contain non-forfeitable rights to dividends at the same rate as common stock, are considered participating securities. | |||||||||||||
Basic earnings (loss) per share reflect only the weighted average common shares outstanding during the period. Diluted earnings (loss) per share reflect weighted average common shares outstanding and the effect of any dilutive common stock equivalent shares. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the average common shares outstanding plus additional common shares that would have been outstanding assuming the exercise of in-the-money stock options, using the treasury stock method. The following table presents the reconciliation of net income (loss) to net income (loss) applicable to common shares and the computation of diluted weighted average shares outstanding for the fiscal years 2013, 2012 and 2011. | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | 4,007 | $ | (9,566 | ) | $ | (5,117 | ) | |||||
Less: Allocation to participating securities | (11 | ) | - | - | |||||||||
Net income (loss) applicable to common shares and equivalents | $ | 3,996 | $ | (9,566 | ) | $ | (5,117 | ) | |||||
Denominator: | |||||||||||||
Weighted average common shares and equivalents outstanding, basic | 12,369 | 12,294 | 12,251 | ||||||||||
Dilutive stock options and awards | 249 | - | - | ||||||||||
Weighted average common shares and equivalents outstanding, diluted | 12,618 | 12,294 | 12,251 | ||||||||||
The 100,000 shares of Series B Preferred Stock are included in the fiscal 2011 weighted average common shares and equivalents computation of basic earnings per share. During the third quarter of fiscal 2012, the Investor converted its 100,000 shares of Series B Preferred Stock into 1,000,000 shares of the Company’s common stock. See Note 6. | |||||||||||||
Weighted-average restricted stock awards of 57,443 and 98,158 for fiscal years 2012 and 2011, respectively, were excluded from the calculation of diluted earnings per share because they were antidilutive. Weighted-average stock options omitted from the denominator of the earnings per share calculation because they were antidilutive were 896,354, 1,648,704 and 1,325,945 for fiscal years 2013, 2012 and 2011, respectively. |
Carolina_Starches_Acquisition
Carolina Starches Acquisition | 12 Months Ended | ||||||
Aug. 31, 2013 | |||||||
Business Combinations [Abstract] | ' | ||||||
Carolina Starches Acquisition | ' | ||||||
Note 18 — Carolina Starches Acquisition | |||||||
On January 11, 2012, Penford Carolina, LLC, a Delaware limited liability company (“Purchaser”) and a wholly-owned subsidiary of the Company, entered into an Amended and Restated Business Sale and Membership Interest Purchase Agreement (the “Amended and Restated Purchase Agreement”) providing for the purchase of Carolina Starches for $8.5 million in cash. Penford Carolina, LLC manufactures, markets and sells industrial cationic starches produced from potato, corn and tapioca into the paper and packaging industry. The acquisition of these businesses provides an important source of raw material to support continued growth in the Food Ingredients business and broadens the Company’s portfolio of specialty modified industrial starches. | |||||||
The acquisition of Carolina Starches was accounted for as a business combination under the acquisition method. The final allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values as of January 11, 2012, is presented below. Goodwill represents the amount by which the purchase price exceeded the fair value of the net assets acquired and has been allocated to the Food Ingredients segment. It is estimated that all of the goodwill associated with this acquisition is deductible for tax purposes. Pro forma results of operations have not been included as the results were not significant to the historical periods. | |||||||
(in thousands) | |||||||
Property, plant and equipment | $ | 3,947 | |||||
Working capital | 4,225 | ||||||
Other assets | 141 | ||||||
Intangible assets | 290 | ||||||
Goodwill | 81 | ||||||
Non-current liabilities | (184 | ) | |||||
Total purchase price | $ | 8,500 | |||||
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Reporting | ' | ||||||||||||
Note 19 — Segment Reporting | |||||||||||||
Financial information for the Company’s two segments, Industrial Ingredients and Food Ingredients, is presented below. Industrial Ingredients and Food Ingredients are broad categories of end-market users served by the Company’s U.S. operations. Penford manages its business in two segments: Industrial Ingredients and Food Ingredients. These segments are based on broad categories of end-market users. The Food Ingredients segment produces specialty starches for food applications. The Industrial Ingredients segment is a supplier of specialty starches to the paper, packaging and other industries, and is a producer of fuel grade ethanol. The Industrial Ingredients segment also sells the by-products from its corn wet milling manufacturing operations, primarily germ, fiber and gluten to customers who use these by-products as animal feed or to produce corn oil. | |||||||||||||
A third item for “corporate and other” activity has been presented to provide reconciliation to amounts reported in the consolidated financial statements. Corporate and other represents the activities related to the corporate headquarters such as public company reporting, personnel costs of the executive management team, corporate-wide professional services and consolidation entries. The accounting policies of the reportable segments are the same as those described in Note 2. The Company’s assets and manufacturing operations are located in the United States. | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Sales | |||||||||||||
Industrial ingredients | |||||||||||||
Industrial Starch | $ | 177,382 | $ | 156,945 | $ | 127,471 | |||||||
Ethanol | 96,852 | 101,874 | 105,730 | ||||||||||
By-products | 81,782 | 71,788 | 58,322 | ||||||||||
$ | 356,016 | $ | 330,607 | $ | 291,523 | ||||||||
Food ingredients | 111,234 | 102,544 | 82,240 | ||||||||||
$ | 467,250 | $ | 433,151 | $ | 373,763 | ||||||||
Depreciation and amortization | |||||||||||||
Industrial ingredients | $ | 10,933 | $ | 10,879 | $ | 10,812 | |||||||
Food ingredients | 2,061 | 1,989 | 2,110 | ||||||||||
Corporate and other | 332 | 1,259 | 1,493 | ||||||||||
$ | 13,326 | $ | 14,127 | $ | 14,415 | ||||||||
Income (loss) from operations | |||||||||||||
Industrial ingredients | $ | (3,238 | ) | $ | (928 | ) | $ | (4,718 | ) | ||||
Food ingredients | 23,265 | 21,591 | 18,037 | ||||||||||
Corporate and other | (10,623 | ) | (10,604 | ) | (8,874 | ) | |||||||
$ | 9,404 | $ | 10,059 | $ | 4,445 | ||||||||
Capital expenditures, net | |||||||||||||
Industrial ingredients | $ | 8,997 | $ | 8,700 | $ | 6,625 | |||||||
Food ingredients | 5,202 | 5,446 | 1,663 | ||||||||||
Corporate and other | - | - | 7 | ||||||||||
$ | 14,199 | $ | 14,146 | $ | 8,295 | ||||||||
August 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Total assets | |||||||||||||
Industrial ingredients | $ | 133,120 | $ | 143,039 | |||||||||
Food ingredients | 68,550 | 63,949 | |||||||||||
Corporate and other | 22,948 | 29,191 | |||||||||||
$ | 224,618 | $ | 236,179 | ||||||||||
In January 2012, the Company acquired the net assets and operations of the business generally known as Carolina Starches, which manufactures and markets industrial potato starch based products and blends for the paper and packaging industries. See Note 18. The net assets and results of operations since acquisition have been integrated into the Company’s existing business segments. The acquired net assets, consisting primarily of property, plant and equipment and working capital, are being managed by and included in the reported balance sheet amounts of the Company’s Food Ingredients business, which has experience, expertise and technologies related to the manufacture of potato starch products. | |||||||||||||
Since the primary end markets for Carolina Starches’ products are the paper and packaging industries, the Carolina Starches sales and marketing functions of the acquired operations are being managed by the Industrial Ingredients business; therefore, the sales, cost of sales and a majority of the operating expenses are included in the Industrial Ingredients segment’s results of operations in the Consolidated Financial Statements. Sales of $26.9 million related to the acquired Carolina Starches businesses were included in the Industrial Ingredients results of operations. Due to the integration of Carolina Starches into the Company’s two business segments, it is not practicable to determine the net earnings of Carolina Starches included in the consolidated statements of operations since the acquisition. | |||||||||||||
Reconciliation of income (loss) from operations for the Company’s segments to income (loss) before income taxes as reported in the consolidated financial statements follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Income from operations | $ | 9,404 | $ | 10,059 | $ | 4,445 | |||||||
Interest expense | (3,989 | ) | (8,633 | ) | (9,364 | ) | |||||||
Other non-operating income (expense) | 75 | (6,186 | ) | 115 | |||||||||
Income (loss) before income taxes | $ | 5,490 | $ | (4,760 | ) | $ | (4,804 | ) | |||||
Sales, attributed to the area to which the product was shipped, are as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
United States | $ | 429,957 | $ | 400,070 | $ | 346,893 | |||||||
Canada | 8,662 | 5,653 | 4,027 | ||||||||||
Mexico | 11,419 | 12,761 | 9,221 | ||||||||||
Columbia | 7,379 | 6,678 | 6,802 | ||||||||||
Japan | 5,112 | 4,380 | 3,434 | ||||||||||
Other | 4,721 | 3,609 | 3,386 | ||||||||||
Non-United States | 37,293 | 33,081 | 26,870 | ||||||||||
Total | $ | 467,250 | $ | 433,151 | $ | 373,763 | |||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||||||
Note 20 — Quarterly Financial Data (Unaudited) | |||||||||||||||||||||
The following tables set forth selected unaudited consolidated quarterly financial information for the Company’s two most recent fiscal years. | |||||||||||||||||||||
Fiscal 2013 | First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Sales | $ | 118,022 | $ | 110,082 | $ | 121,719 | $ | 117,427 | $ | 467,250 | |||||||||||
Cost of sales | 104,764 | 99,081 | 108,528 | 109,830 | 422,203 | ||||||||||||||||
Gross margin | 13,258 | 11,001 | 13,191 | 7,597 | 45,047 | ||||||||||||||||
Net income (loss) | 1,707 | 1,191 | 2,058 | (949 | ) | 4,007 | |||||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.1 | $ | 0.17 | $ | (0.08 | ) | $ | 0.32 | ||||||||||
Diluted | $ | 0.14 | $ | 0.1 | $ | 0.16 | $ | (0.08 | ) | $ | 0.32 | ||||||||||
Dividends declared | $ - | $ - | $ - | $ - | $ - | ||||||||||||||||
Fiscal 2012 | First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Sales | $ | 108,168 | $ | 103,477 | $ | 111,283 | $ | 110,223 | $ | 433,151 | |||||||||||
Cost of sales | 96,360 | 94,076 | 99,829 | 98,976 | 389,241 | ||||||||||||||||
Gross margin | 11,808 | 9,401 | 11,454 | 11,247 | 43,910 | ||||||||||||||||
Net income (loss) | 592 | (340 | ) | (5,452 | ) | (4,366 | ) | (9,566 | ) | ||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||||
Basic | $ | 0.05 | $ | (0.03 | ) | $ | (0.44 | ) | $ | (0.35 | ) | $ | (0.78 | ) | |||||||
Diluted | $ | 0.05 | $ | (0.03 | ) | $ | (0.44 | ) | $ | (0.35 | ) | $ | (0.78 | ) | |||||||
Dividends declared | $ - | $ - | $ - | $ - | $ - | ||||||||||||||||
In the fourth quarter of fiscal 2012, the Company redeemed $28.9 million of its outstanding Series A Preferred Stock at the original issue price of $23.5 million plus accrued dividends of $5.4 million. As a result of the early redemption, the Company recorded accelerated discount accretion of $3.2 million and amortization of issuance costs of $0.6 million as a loss on redemption in other non-operating income (expense). See Note 6. |
Legal_Proceedings_and_Continge
Legal Proceedings and Contingencies | 12 Months Ended |
Aug. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Legal Proceedings and Contingencies | ' |
Note 21 – Legal Proceedings and Contingencies | |
In June 2011, the Company was notified that a complaint had been filed against a customer of a Company subsidiary, Penford Products Co. (“Penford Products”), in the United States District Court for the District of New Jersey alleging that certain pet products supplied by Penford Products to the customer by infringed upon a patent owned by T.F.H. Publications, Inc. (“Plaintiff”). The customer tendered the defense of this lawsuit to Penford Products pursuant to the terms of its supply agreement with Penford Products, and Penford Products commenced a defense at that time. In April 2012, the Plaintiff filed an amended complaint alleging that certain additional products made by Penford Products for the same customer infringed upon two of Plaintiff’s patents. The complaint seeks an injunction against infringement of the Plaintiff’s patents as well as the recovery of certain damages. The court held a claim construction hearing on August 7, 2013 and the Company is awaiting the court’s decision regarding certain disputed patent claim terms. In November 2013 Plaintiff filed an amended complaint adding Penford Products as a defendant in the case. The Company believes that its products do not infringe upon any of Plaintiff’s patents and has continued its defense of the lawsuit. The Company cannot at this time determine the likelihood of any outcome or estimate any damages that might be awarded. | |
In late August and early September, 2013, two of the Company’s subsidiaries, Penford Products and Carolina Starches, LLC (“Carolina Starches”), were served with separate complaints filed by Pirinate Consulting Group, LLC, as Litigation Trustee for the NP Creditor Litigation Trust, a successor in interest to the bankruptcy estate of NewPage Corporation, in the United States Bankruptcy Court for the District of Delaware seeking damages arising from alleged preferential transfers. The complaint filed against Penford Products seeks the recovery of alleged preferential transfers in the amount of approximately $778,000, together with other damages. The complaint filed against Carolina Starches seeks recovery of alleged preferential transfers of approximately $216,000, together with other damages. Answers to these complaints are not yet due and have not been filed, and no discovery in these matters has yet occurred. The Company believes that it has adequate, well-recognized defenses to these claims; however, the Company cannot at this time determine the likelihood of any outcome or estimate any damages that might be awarded. | |
In the third quarter of fiscal year 2013, the Company received $3.4 million in full settlement of certain claims the Company had made against a contractor and its insurer that arose from engineering design work performed in connection with the construction of the Company’s ethanol plant completed in 2008. The Company had alleged breach of contract and negligence by the contractor, and sought recovery of its costs and damages from the contractor and its insurer due to errors and delays in the performance of the work. The settlement amount, net of contingent legal fees, expert fees and other litigation expenses incurred in the matter, of approximately $2.1 million, was reflected as a reduction of the cost of the ethanol plant. Approximately $0.3 million was recorded as a reduction of operating expenses related to the recovery of legal and other costs. | |
The Company sold its Australia/New Zealand Operations in fiscal year 2010. Proceeds from the sale of the Australia/New Zealand Operations included $2.0 million placed in escrow, approximately $1.225 million of which had been distributed to the Company’s subsidiary, Penford Australia Limited (“Penford Australia”) prior to fiscal year 2013. In August 2012, the purchaser of the Company’s Lane Cove, New South Wales, Australia operating assets submitted a statement to an agreed-upon arbitrator in which it indicated that the total value of its warranty claims amounted to approximately $901,000, including certain taxes. During the second quarter of fiscal year 2013, the arbitrator denied most of the purchaser’s warranty claims. As a result of this determination and the terms of the asset sale contract with the purchaser, Penford Australia received all of the remaining escrowed funds during the second quarter of fiscal year 2013. | |
The Company regularly evaluates the status of claims and legal proceedings in which it is involved in order to assess whether a loss is probable or there is a reasonable possibility that a loss may have been incurred and to determine if accruals are appropriate. For the matters identified in the first two paragraphs, management is unable to provide additional information regarding any possible loss because (i) the Company currently believes that the claims are not adequately supported, and (ii) there are significant factual issues to be resolved. With regard to these matters, management does not believe, based on currently available information, that the eventual outcomes will have a material adverse effect on the Company’s financial condition, although the outcomes could be material to the Company’s operating results for any particular period, depending, in part, upon the operating results for such period. | |
The Company is involved from time to time in various other claims and litigation arising in the normal course of business. The Company expenses legal costs as incurred. In the judgment of management, which relies in part on information obtained from the Company’s outside legal counsel, the ultimate resolution of these other matters will not materially affect the consolidated financial position, results of operations or liquidity of the Company. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Penford and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years’ financial statements in order to conform to the current year presentation. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates are used in accounting for, among other things, the allowance for doubtful accounts, accruals, legal contingencies, the determination of fair value of net assets acquired in a business combination, the determination of assumptions for pension and postretirement employee benefit costs, useful lives of property and equipment, the assessment of a potential impairment of goodwill or long-lived assets, and income taxes including the determination of a need for a valuation allowance for deferred tax assets. Actual results may differ from previously estimated amounts. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents consist of cash and temporary investments with maturities of less than three months when purchased. Amounts are reported in the balance sheets at cost, which approximates fair value. | |||||||||||||||||
Cash Overdrafts | ' | ||||||||||||||||
Cash Overdrafts | |||||||||||||||||
Cash overdrafts represent the amount by which outstanding checks issued, but not yet presented to banks for disbursement, exceed balances on deposit in the applicable bank accounts. The changes in cash overdrafts are included as a component of cash flows from financing activities in the consolidated statements of cash flows. | |||||||||||||||||
Allowance for Doubtful Accounts and Concentration of Credit Risk | ' | ||||||||||||||||
Allowance for Doubtful Accounts and Concentration of Credit Risk | |||||||||||||||||
The Company records accounts receivable at net realizable value, which includes an allowance for doubtful accounts to reflect any loss anticipated on the accounts receivable balances. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses in the accounts receivable balances. Penford estimates the allowance for uncollectible accounts based on historical experience, known troubled accounts, industry trends, economic conditions, how recently payments have been received, and ongoing credit evaluations of its customers. Activity in the allowance for doubtful accounts for fiscal 2013, 2012 and 2011 is as follows (dollars in thousands): | |||||||||||||||||
Balance | Charged to | Deductions | Balance | ||||||||||||||
Beginning of | Costs and | and Other | End of Year | ||||||||||||||
Year | Expenses | ||||||||||||||||
Year ended August 31: | |||||||||||||||||
2013 | $ | 78 | $ | 241 | $ | (39 | ) | $ | 280 | ||||||||
2012 | $ | 1,305 | $ | (42 | ) | $ | (1,185 | ) | $ | 78 | |||||||
2011 | $ | 350 | $ | 958 | $ | (3 | ) | $ | 1,305 | ||||||||
Approximately 38%, 36% and 34% of the Company’s sales in fiscal 2013, 2012 and 2011, respectively, were made to customers who operate in the paper industry. This industry suffered an economic downturn, which has resulted in the closure of a number of mills. In fiscal 2011, the increase in the allowance for uncollectible accounts was related to two paper industry customers. These receivables were written off in fiscal 2012. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or net realizable value. Costs are determined using the first-in, first-out (“FIFO”) method. Capitalized costs include materials, labor and manufacturing overhead related to the purchase and production of inventories. | |||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||
The Company’s property consists primarily of plants and equipment used for manufacturing activities. Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred. The Company uses the straight-line method to compute depreciation expense over the estimated useful lives of the depreciable assets. Equipment and vehicles generally have average useful lives ranging from three to twelve years and real estate between twelve to forty-six years. Depreciation, which includes depreciation of assets under capital leases, of $12.8 million, $12.7 million and $12.8 million was recorded in fiscal years 2013, 2012 and 2011, respectively. For income tax purposes, the Company generally uses accelerated depreciation methods. | |||||||||||||||||
Interest is capitalized on major construction projects while in progress. During fiscal years 2013 and 2012, the Company capitalized $107,000 and $48,000, respectively, in interest costs. No interest was capitalized in fiscal 2011. | |||||||||||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment is recognized when estimated expected undiscounted future cash flows are less than the carrying amount of the assets. To the extent that impairment has occurred, the excess of the carrying amount of long-lived assets over its estimated fair value would be recognized as an impairment loss charged to earnings. | |||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||
Goodwill represents the excess of cost over the fair value of net assets acquired. The Company evaluates its goodwill for impairment annually as of June 1 and whenever events or circumstances make it more likely than not that impairment may have occurred. To determine whether goodwill is impaired, Penford compares the fair value of each reporting unit to that reporting unit’s carrying amount. If the fair value of the reporting unit is greater than its carrying amount goodwill is not considered impaired. If the fair value of the reporting unit is lower than its carrying amount, Penford then compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill, and, if the carrying value is higher than the fair value, an impairment charge would be recorded. The implied fair value of a reporting unit is determined using a discounted cash flow method considering the Company’s market capitalization. | |||||||||||||||||
Definite-lived intangible assets, primarily patents, are amortized using the straight-line method over their expected economic useful lives. At August 31, 2013, the weighted average remaining amortization period for patents is five years. Penford has no intangible assets with indefinite lives. | |||||||||||||||||
Accrued Liabilities | ' | ||||||||||||||||
Accrued Liabilities | |||||||||||||||||
Components of accrued liabilities are as follows (dollars in thousands): | |||||||||||||||||
August 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Employee-related costs | $ | 3,931 | $ | 4,837 | |||||||||||||
Other | 4,276 | 3,400 | |||||||||||||||
Accrued liabilities | $ | 8,207 | $ | 8,237 | |||||||||||||
Employee-related costs include accrued payroll, compensated absences, payroll taxes, benefits and incentives. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenue from sales of products and shipping and handling revenue are recognized at the time goods are shipped and title transfers to the customer. This transfer is considered complete when a sales agreement is in place, delivery has occurred, pricing is fixed or determinable and collection is reasonably assured. Proceeds from the sale of by-products from the Company’s corn wet milling operations are classified as sales in the Statements of Operations. Costs associated with shipping and handling are included in cost of sales. | |||||||||||||||||
Significant Customer and Export Sales | ' | ||||||||||||||||
Significant Customer and Export Sales | |||||||||||||||||
The Company has several relatively large customers in each business segment. The Company’s sales of ethanol to its sole ethanol customer, Eco-Energy, Inc., represented approximately 21%, 24% and 28% of the Company’s net sales for fiscal years 2013, 2012 and 2011, respectively. Eco-Energy, Inc. is a marketer and distributor of biofuels in the United States and Canada, is a customer of the Company’s Industrial Ingredients business. Export sales accounted for approximately 8.0%, 7.6% and 7.2% of consolidated sales in fiscal years ended August 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Derivatives | ' | ||||||||||||||||
Derivatives | |||||||||||||||||
Penford uses derivative instruments to manage the exposures associated with commodity prices, interest rates and energy costs. The derivative instruments are reported at fair value in other current assets or current liabilities in the consolidated balance sheets. The Company offsets the fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value executed with the same counterparty under a master netting arrangement. | |||||||||||||||||
For derivative instruments designated and qualifying as fair value hedges, the gain or loss on the derivative instruments as well as the offsetting gain or loss on the hedged firm commitments or inventory are recognized in current earnings as a component of cost of goods sold. For derivative instruments designated and qualifying as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported as a component of other comprehensive income (loss), net of applicable income taxes, and recognized in earnings when the hedged exposure affects earnings. The Company recognizes the gain or loss on the derivative instrument as a component of cost of goods sold in the period when the finished goods produced from the hedged item are sold or, for interest rate swaps, as a component of interest expense in the period the forecasted transaction is reported in earnings. If it is determined that the derivative instruments used are no longer effective at offsetting changes in cash flows or fair value of the hedged item, then the changes in fair value would be recognized in current earnings as a component of cost of good sold or interest expense. | |||||||||||||||||
Research and Development | ' | ||||||||||||||||
Research and Development | |||||||||||||||||
Research and development costs are expensed as incurred, except for costs of patents, which are capitalized and amortized over the lives of the patents. The Company’s research and development expenditures primarily consists of internal salaries, wages, consulting and supplies attributable to time spent on research and development activities. Other costs include depreciation and maintenance of research and development facilities and equipment, including assets at manufacturing locations that are engaged in pilot plant activities. Research and development costs expensed were $5.9 million, $5.8 million and $4.8 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company has a long-term incentive plan that provides for stock-based compensation, including the granting of stock options and shares of restricted stock to employees and directors. The Company utilizes the Black-Scholes option-pricing model to determine the fair value of stock options on the date of grant. This model derives the fair value of stock options based on certain assumptions related to expected stock price volatility, expected option life, risk-free interest rate and dividend yield. The grant date fair value of restricted stock awards is equal to the market price of the Company’s common stock at the grant date. | |||||||||||||||||
The Company recognizes stock-based compensation expense utilizing the accelerated multiple options approach over the requisite service period, which equals the vesting period. See Note 11 for further detail. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
The provision for income taxes includes federal and state taxes currently payable and deferred income taxes arising from temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured pursuant to tax laws using the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment. | |||||||||||||||||
A valuation allowance is provided to the extent that it is more likely than not that deferred tax assets will not be realized. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. The amount recognized is measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalty expense associated with uncertain tax positions as a component of income tax expense. | |||||||||||||||||
The Company has not provided deferred taxes related to its investment in foreign subsidiaries, which are classified as discontinued operations, as it does not expect future distributions from the subsidiaries or repayments of permanent advances. | |||||||||||||||||
Foreign Currency | ' | ||||||||||||||||
Foreign Currency | |||||||||||||||||
Assets and liabilities of subsidiaries whose functional currency is deemed to be other than the U.S. dollar are translated at year end rates of exchange. Resulting translation adjustments are accumulated in the currency translation adjustments component of other comprehensive income. Statement of operations amounts are translated at average exchange rates prevailing during the year. Foreign currency transaction gains or losses in fiscal years 2013, 2012 and 2011 were not significant. | |||||||||||||||||
Acquisitions | ' | ||||||||||||||||
Acquisitions | |||||||||||||||||
Acquisitions of businesses are accounted for using the acquisition method of accounting and the financial statements include the results of the acquired operations from the date of acquisition. The purchase price of the acquired entity is allocated to the net assets acquired and net liabilities assumed based on the estimated fair value at the date of acquisition. The excess of cost over the fair value of the net assets acquired is recognized as goodwill. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In June 2011, the Financial Accounting Standards Board (“FASB”) issued guidance requiring entities to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendment did not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income under current accounting standards. The guidance was effective for the Company’s fiscal year and interim periods beginning September 1, 2012. The Company adopted this amended guidance in fiscal 2013 and presented the Consolidated Statements of Comprehensive Income (Loss) immediately following the Consolidated Statements of Operations. | |||||||||||||||||
In February 2013, the FASB issued guidance requiring entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Entities are required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. This guidance, which is effective prospectively for annual reporting periods’ beginning after December 15, 2012, does not change the current requirements for reporting net income or other comprehensive income. The Company is evaluating the impact this guidance will have on its disclosures. | |||||||||||||||||
In December 2011, the FASB issued guidance creating new disclosure requirements about the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. The disclosure requirements are effective for annual reporting periods, and interim reporting periods within those years, beginning on or after January 1, 2013 (fiscal 2014 for Penford). The Company is evaluating the impact this update will have on its disclosures. | |||||||||||||||||
In July 2013, the FASB issued guidance designed to reduce diversity in practice of financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013 (fiscal 2015 for Penford). The Company does not expect this guidance to have a material effect on its financial position, results of operations or liquidity. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Allowance for Doubtful Accounts Activity | ' | ||||||||||||||||
Activity in the allowance for doubtful accounts for fiscal 2013, 2012 and 2011 is as follows (dollars in thousands): | |||||||||||||||||
Balance | Charged to | Deductions | Balance | ||||||||||||||
Beginning of | Costs and | and Other | End of Year | ||||||||||||||
Year | Expenses | ||||||||||||||||
Year ended August 31: | |||||||||||||||||
2013 | $ | 78 | $ | 241 | $ | (39 | ) | $ | 280 | ||||||||
2012 | $ | 1,305 | $ | (42 | ) | $ | (1,185 | ) | $ | 78 | |||||||
2011 | $ | 350 | $ | 958 | $ | (3 | ) | $ | 1,305 | ||||||||
Components of accrued liabilities | ' | ||||||||||||||||
Components of accrued liabilities are as follows (dollars in thousands): | |||||||||||||||||
August 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Employee-related costs | $ | 3,931 | $ | 4,837 | |||||||||||||
Other | 4,276 | 3,400 | |||||||||||||||
Accrued liabilities | $ | 8,207 | $ | 8,237 | |||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventory | ' | ||||||||
Components of inventory are as follows: | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in thousands) | |||||||||
Raw materials | $ | 10,381 | $ | 19,773 | |||||
Work in progress | 1,913 | 1,542 | |||||||
Finished goods | 21,698 | 22,357 | |||||||
Total inventories | $ | 33,992 | $ | 43,672 | |||||
Property_and_equipment_Tables
Property and equipment (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Components of Property and Equipment | ' | ||||||||
Components of property and equipment are as follows: | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in thousands) | |||||||||
Land and land improvements | $ | 11,881 | $ | 11,623 | |||||
Plant and equipment | 359,909 | 346,087 | |||||||
Construction in progress | 5,255 | 7,679 | |||||||
377,045 | 365,389 | ||||||||
Accumulated depreciation | (264,904 | ) | (252,198 | ) | |||||
Net property and equipment | $ | 112,141 | $ | 113,191 | |||||
Goodwill_and_other_intangible_1
Goodwill and other intangible assets (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Carrying Amount and Accumulated Amortization of Intangible Assets | ' | ||||||||||||||||
The carrying amount and accumulated amortization of intangible assets are as follows (dollars in thousands): | |||||||||||||||||
August 31, 2013 | August 31, 2012 | ||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Intangible assets: | |||||||||||||||||
Patents | $ | 1,748 | $ | 1,538 | $ | 1,748 | $ | 1,500 | |||||||||
Customer lists | 190 | 154 | 190 | 59 | |||||||||||||
Non-compete agreements | 100 | 33 | 100 | 12 | |||||||||||||
Other intangible assets | $ | 2,038 | $ | 1,725 | $ | 2,038 | $ | 1,571 | |||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt and Capital Lease Obligations Current and Non Current | ' | ||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in thousands) | |||||||||
Secured credit agreements — revolving loans, 3.18% weighted average interest rate at August 31, 2013 | $ | 71,506 | $ | 82,606 | |||||
Iowa Department of Economic Development loans | 1,233 | 1,433 | |||||||
Capital lease obligations | 231 | 423 | |||||||
72,970 | 84,462 | ||||||||
Less: current portion and short-term borrowings | 231 | 458 | |||||||
Long-term debt and capital lease obligations | $ | 72,739 | $ | 84,004 | |||||
Schedule of Maturities of Long-term Debt | ' | ||||||||
The maturities of debt existing at August 31, 2013 for the fiscal years beginning with fiscal 2014 are as follows (dollars in thousands): | |||||||||
2014 | $ | 231 | |||||||
2015 | 1,103 | ||||||||
2016 | 57 | ||||||||
2017 | 71,554 | ||||||||
2018 | 25 | ||||||||
$ | 72,970 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Common Shares Outstanding | ' | ||||||||||||
Common Stock | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Common shares outstanding | |||||||||||||
Balance, beginning of year | 14,280,718 | 13,243,385 | 13,189,581 | ||||||||||
Series B preferred stock converted to common shares | - | 1,000,000 | - | ||||||||||
Exercise of stock options | 121,226 | - | - | ||||||||||
Issuance of restricted stock, net | 52,237 | 37,333 | 53,804 | ||||||||||
Balance, end of year | 14,454,181 | 14,280,718 | 13,243,385 | ||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The components of accumulated other comprehensive loss and other comprehensive income (loss) are summarized below. The components of other comprehensive income (loss) and the income tax expense (benefit) allocated to each component of other comprehensive income (loss), including reclassification adjustments, are presented in the Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||
(In thousands) | Net Unrealized | Gains (Losses) | Accumulated | ||||||||||
Gains (Losses) | on | Other | |||||||||||
on Cash Flow | Postretirement | Comprehensive | |||||||||||
Hedging | Obligations | Loss | |||||||||||
Instruments | |||||||||||||
Balance at August 31, 2010 | $ | (582 | ) | $ | (13,268 | ) | $ | (13,850 | ) | ||||
Other comprehensive income (loss), net of taxes | 1,313 | 4,978 | 6,291 | ||||||||||
Balance at August 31, 2011 | 731 | (8,290 | ) | (7,559 | ) | ||||||||
Other comprehensive income (loss), net of taxes | 907 | (8,941 | ) | (8,034 | ) | ||||||||
Balance at August 31, 2012 | 1,638 | (17,231 | ) | (15,593 | ) | ||||||||
Other comprehensive income (loss), net of taxes | (2,494 | ) | 10,468 | 7,974 | |||||||||
Balance at August 31, 2013 | $ | (856 | ) | $ | (6,763 | ) | $ | (7,619 | ) | ||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Leases [Abstract] | ' | ||||||||
Future Minimum Lease Payments for Noncancelable Operating and Capital Leases | ' | ||||||||
Future minimum lease payments for fiscal years beginning with fiscal year 2014 for noncancelable operating leases and capital leases having initial lease terms of more than one year are as follows (dollars in thousands): | |||||||||
Capital | Operating Leases | ||||||||
Leases | Minimum Lease | ||||||||
Payments | |||||||||
2014 | $ | 70 | $ | 2,836 | |||||
2015 | 69 | 1,701 | |||||||
2016 | 67 | 942 | |||||||
2017 | 52 | 448 | |||||||
2018 | 17 | 41 | |||||||
Thereafter | 9 | - | |||||||
Total minimum lease payments | 284 | $ | 5,968 | ||||||
Less: amounts representing interest | (53 | ) | |||||||
Net minimum lease payments | $ | 231 | |||||||
Stockbased_Compensation_Plans_
Stock-based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Schedule of Share Based Compensation Stock Options Activity | ' | ||||||||||||||||||||
A summary of the stock option activity for the year ended August 31, 2013 is as follows: | |||||||||||||||||||||
Number | Option Price | Weighted | Weighted | Aggregate | |||||||||||||||||
of | Range | Average | Average | Intrinsic | |||||||||||||||||
Shares | Exercise | Remaining | Value | ||||||||||||||||||
Price | Term (in | ||||||||||||||||||||
years) | |||||||||||||||||||||
Outstanding Balance, August 31, 2012 | 1,824,916 | $ | 4.66 — 21.73 | $ | 10.94 | ||||||||||||||||
Granted | 120,000 | 7.60 — 11.09 | 8.49 | ||||||||||||||||||
Exercised | (222,864 | ) | 5.29 — 12.79 | 10.31 | |||||||||||||||||
Cancelled | (204,464 | ) | 9.87 — 17.07 | 14.99 | |||||||||||||||||
Outstanding Balance, August 31, 2013 | 1,517,588 | 4.66 — 21.73 | 10.3 | 3.9 | $ | 6,737,300 | |||||||||||||||
Options Exercisable at August 31, 2013 | 895,339 | $ | 4.66 — 21.73 | $ | 13.17 | 2.74 | $ | 2,144,000 | |||||||||||||
Schedule of Share Based Payment Award Stock Options Valuation Assumptions | ' | ||||||||||||||||||||
The Company estimated the fair value of stock options granted using the following weighted-average assumptions and resulting in the following weighted-average grant date fair value: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected volatility | 68% | 68% | 71% | ||||||||||||||||||
Expected life (years) | 4.7 | 4.9 | 4.3 | ||||||||||||||||||
Interest rate | 0.5 -1.0% | 0.5 -1.1% | 1.1-2.8% | ||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||
Weighted-average fair values | $4.60 | $3.13 | $3.62 | ||||||||||||||||||
Schedule of Share-Based Compensation, Restricted Stock Award Activity | ' | ||||||||||||||||||||
The following table summarizes the restricted stock award activity for the twelve months ended August 31, 2013 as follows: | |||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Shares | Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested at August 31, 2012 | 61,716 | $ | 5.94 | ||||||||||||||||||
Granted | 24,489 | 7.35 | |||||||||||||||||||
Vested | (61,716 | ) | 5.94 | ||||||||||||||||||
Cancelled | - | ||||||||||||||||||||
Nonvested at August 31, 2013 | 24,489 | $ | 7.35 | ||||||||||||||||||
Schedule of Employee Service Share-Based Compensation, Allocation of Recognized Period Costs | ' | ||||||||||||||||||||
The following table summarizes the total stock-based compensation cost for fiscal years 2013, 2012 and 2011 and the effect on the Company’s consolidated statements of operations (dollars in thousands): | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Cost of sales | $ | - | $ | 48 | $ | 130 | |||||||||||||||
Operating expenses | 1,404 | 1,324 | 949 | ||||||||||||||||||
Research and development expenses | - | 15 | 38 | ||||||||||||||||||
Total stock-based compensation expense | $ | 1,404 | $ | 1,387 | $ | 1,117 | |||||||||||||||
Income tax benefit | (534 | ) | (527 | ) | (424 | ) | |||||||||||||||
Total stock-based compensation expense, net of tax | $ | 870 | $ | 860 | $ | 693 | |||||||||||||||
Pensions_and_Other_Postretirem1
Pensions and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Summary of Pension and Other Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
The following represents information summarizing the Company’s pension and other postretirement benefit plans. A measurement date of August 31, 2013 was used for all plans. | |||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at September 1 | $ | 62,989 | $ | 47,545 | $ | 20,457 | $ | 16,924 | |||||||||||||||||
Service cost | 1,945 | 1,521 | 235 | 229 | |||||||||||||||||||||
Interest cost | 2,648 | 2,729 | 860 | 972 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 106 | 119 | |||||||||||||||||||||
Amendments | — | 212 | — | — | |||||||||||||||||||||
Actuarial (gain) loss | (107 | ) | 619 | 267 | (170 | ) | |||||||||||||||||||
Change in assumptions | (8,135 | ) | 12,359 | (3,912 | ) | 3,024 | |||||||||||||||||||
Benefits paid | (2,062 | ) | (1,996 | ) | (657 | ) | (641 | ) | |||||||||||||||||
Benefit obligation at August 31 | $ | 57,278 | $ | 62,989 | $ | 17,356 | $ | 20,457 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at September 1 | $ | 42,072 | $ | 36,328 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 5,580 | 3,688 | — | — | |||||||||||||||||||||
Company contributions | 1,136 | 4,052 | 551 | 522 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 106 | 119 | |||||||||||||||||||||
Benefits paid | (2,062 | ) | (1,996 | ) | (657 | ) | (641 | ) | |||||||||||||||||
Fair value of the plan assets at August 31 | $ | 46,726 | $ | 42,072 | $ | — | $ | — | |||||||||||||||||
Funded status: | |||||||||||||||||||||||||
Net liability – Plan assets less than projected benefit obligation | $ | (10,552 | ) | $ | (20,917 | ) | $ | (17,356 | ) | $ | (20,457 | ) | |||||||||||||
Recognized as: | |||||||||||||||||||||||||
Current accrued benefit liability | $ | — | $ | — | $ | (760 | ) | $ | (750 | ) | |||||||||||||||
Non-current accrued benefit liability | (10,552 | ) | (20,917 | ) | (16,596 | ) | (19,707 | ) | |||||||||||||||||
Net Amount Recognized | $ | (10,552 | ) | $ | (20,917 | ) | $ | (17,356 | ) | $ | (20,457 | ) | |||||||||||||
Components of Accumulated Other Comprehensive Loss Unrecognized | ' | ||||||||||||||||||||||||
Accumulated other comprehensive loss consists of the following amounts that have not yet been recognized as components of net benefit cost (dollars in thousands): | |||||||||||||||||||||||||
August 31, 2013 | August 31, 2012 | ||||||||||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||
Unrecognized prior service cost (credit) | $ | 1,288 | $ | (155 | ) | $ | 1,529 | $ | (307 | ) | |||||||||||||||
Unrecognized net actuarial loss | 10,091 | (318 | ) | 22,976 | 3,594 | ||||||||||||||||||||
Total | $ | 11,379 | $ | (473 | ) | $ | 24,505 | $ | 3,287 | ||||||||||||||||
Benefit Obligations in Excess of Fair Value of Plan Assets | ' | ||||||||||||||||||||||||
Selected information related to the Company’s defined benefit pension plans that have benefit obligations in excess of fair value of plan assets is presented below (dollars in thousands): | |||||||||||||||||||||||||
August 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Projected benefit obligation | $ | 57,278 | $ | 62,989 | |||||||||||||||||||||
Accumulated benefit obligation | $ | 54,389 | $ | 59,853 | |||||||||||||||||||||
Fair value of plan assets | $ | 46,726 | $ | 42,072 | |||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 1,945 | $ | 1,521 | $ | 1,617 | $ | 235 | $ | 229 | $ | 272 | |||||||||||||
Interest cost | 2,648 | 2,729 | 2,696 | 860 | 972 | 972 | |||||||||||||||||||
Expected return on plan assets | (2,869 | ) | (2,914 | ) | (2,234 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost | 241 | 228 | 228 | (152 | ) | (152 | ) | (152 | ) | ||||||||||||||||
Amortization of actuarial loss | 1,932 | 773 | 1,441 | 267 | — | 65 | |||||||||||||||||||
Benefit cost | $ | 3,897 | $ | 2,337 | $ | 3,748 | $ | 1,210 | $ | 1,049 | $ | 1,157 | |||||||||||||
Benefit Plan Assumptions | ' | ||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
The Company assesses its benefit plan assumptions on a regular basis. Assumptions used in determining plan information are as follows: | |||||||||||||||||||||||||
August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted-average assumptions used to calculate net periodic expense: | |||||||||||||||||||||||||
Discount rate | 4.28 | % | 5.87 | % | 5.64 | % | 4.28 | % | 5.87 | % | 5.64 | % | |||||||||||||
Expected return on plan assets | 7 | % | 8 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | |||||||||||||||||||
Weighted-average assumptions used to calculate benefit obligations at August 31: | |||||||||||||||||||||||||
Discount rate | 5.24 | % | 4.28 | % | 5.87 | % | 5.24 | % | 4.28 | % | 5.87 | % | |||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | 3 | % | |||||||||||||||||||
Assumed Health Care Cost Trend Rates | ' | ||||||||||||||||||||||||
Assumed health care cost trend rates: | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Current health care trend assumption | 7.8 | % | 8 | % | 8 | % | |||||||||||||||||||
Ultimate health care trend rate | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||||||||
Year ultimate health care trend is reached | 2032 | 2030 | 2029 | ||||||||||||||||||||||
Effect of Changes in Assumed Health Care Cost Trend Rate | ' | ||||||||||||||||||||||||
The assumed health care cost trend rate could have a significant effect on the amounts reported. A one-percentage-point change in the assumed health care cost trend rate would have the following effects: | |||||||||||||||||||||||||
1-Percentage- | 1-Percentage- | ||||||||||||||||||||||||
Point | Point | ||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Effect on total of service and interest cost components in fiscal 2013 | $ | 182 | $ | (146 | ) | ||||||||||||||||||||
Effect on postretirement accumulated benefit obligation as of August 31, 2013 | $ | 2,405 | $ | (1,999 | ) | ||||||||||||||||||||
Weighted Average Asset Allocations of Investment Portfolio for Pension Plans | ' | ||||||||||||||||||||||||
The weighted average asset allocations of the investment portfolio for the pension plans at August 31 are as follows: | |||||||||||||||||||||||||
Target | August 31, | ||||||||||||||||||||||||
Allocation | 2013 | 2012 | |||||||||||||||||||||||
U.S. equities | 55 | % | 55 | % | 56 | % | |||||||||||||||||||
International equities | 15 | % | 15 | % | 15 | % | |||||||||||||||||||
Fixed income investments | 25 | % | 25 | % | 24 | % | |||||||||||||||||||
Real estate | 5 | % | 5 | % | 5 | % | |||||||||||||||||||
Fair Value of Pension Plan's Assets by Major Asset Category | ' | ||||||||||||||||||||||||
The following table presents the fair value of the pension plan’s assets by major asset category as of August 31, 2013. | |||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | ||||||||||||||||||||||
In Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Common collective trust funds | $ | $ | 44,378 | $ | - | $ | 44,378 | ||||||||||||||||||
Real estate equity funds | - | - | 2,348 | 2,348 | |||||||||||||||||||||
Fair value of plan assets | $ | - | $ | 44,378 | $ | 2,348 | $ | 46,726 | |||||||||||||||||
Changes in Fair Value of Pension Plan's Real Estate Equity Fund | ' | ||||||||||||||||||||||||
The following table summarizes the changes in fair value of the pension plan’s real estate equity fund (Level 3) for fiscal year ended August 31, 2013. | |||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||
Equity Fund | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Balance, August 31, 2012 | $ | 2,102 | |||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | 246 | ||||||||||||||||||||||||
Relating to assets sold during the period | - | ||||||||||||||||||||||||
Purchases and sales | - | ||||||||||||||||||||||||
Transfers in (out) of Level 3 | - | ||||||||||||||||||||||||
Balance, August 31, 2013 | $ | 2,348 | |||||||||||||||||||||||
Expected Benefit Payments | ' | ||||||||||||||||||||||||
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include benefits attributable to estimate future employee service. | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
2014 | $ | 2.4 | $ | 0.9 | |||||||||||||||||||||
2015 | 2.5 | 1 | |||||||||||||||||||||||
2016 | 2.6 | 1 | |||||||||||||||||||||||
2017 | 2.8 | 1.1 | |||||||||||||||||||||||
2018 | 3 | 1.2 | |||||||||||||||||||||||
2019-2023 | $ | 18.7 | $ | 7.7 |
Fair_Value_Measurements_and_De1
Fair Value Measurements and Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Fair Values of Company's Derivative Instruments | ' | ||||||||||||||||||||||||||||||||||||
Presented below are the fair values of the Company’s derivative instruments as of August 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||
As of August 31, 2013 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Current assets (Other Current Assets): | |||||||||||||||||||||||||||||||||||||
Commodity derivatives (1) | $ | 512 | $ | - | $ | - | $ | 512 | |||||||||||||||||||||||||||||
(1) On the consolidated balance sheets, commodity derivative assets and liabilities have been offset by cash collateral due and paid under master netting arrangements which are recorded together in Other Current Assets. The cash collateral offset was $1.7 million at August 31, 2013. | |||||||||||||||||||||||||||||||||||||
As of August 31, 2012 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Current assets (Other Current Assets): | |||||||||||||||||||||||||||||||||||||
Commodity derivatives (1) | $ | (1,422) | $ | - | $ | - | $ | (1,422) | |||||||||||||||||||||||||||||
(1) On the consolidated balance sheets, commodity derivative assets and liabilities have been offset by cash collateral due and paid under master netting arrangements which are recorded together in Other Current Assets. The cash collateral offset was $2.6 million at August 31, 2012. | |||||||||||||||||||||||||||||||||||||
Outstanding Futures Contracts | ' | ||||||||||||||||||||||||||||||||||||
As of August 31, 2013, the Company had the following outstanding futures contracts: | |||||||||||||||||||||||||||||||||||||
Corn Futures | 4,190,000 | Bushels | |||||||||||||||||||||||||||||||||||
Ethanol Swaps | 7,350,000 | Gallons | |||||||||||||||||||||||||||||||||||
Fair Values of Company's Derivatives by Contract Type | ' | ||||||||||||||||||||||||||||||||||||
The following tables provide information about the fair values of the Company’s derivatives, by contract type, as of August 31, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
In thousands | Fair Value August 31 | Fair Value August 31 | |||||||||||||||||||||||||||||||||||
Balance Sheet | 2013 | 2012 | Balance Sheet | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Location | Location | ||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||||||||||||||||
Corn Futures | Other Current Assets | $ | - | $ | 12 | Other Current Assets | $ | 485 | $ | 126 | |||||||||||||||||||||||||||
Ethanol Futures | Other Current Assets | 997 | - | Other Current Assets | - | 706 | |||||||||||||||||||||||||||||||
Fair Value Hedges: | |||||||||||||||||||||||||||||||||||||
Corn Futures | Other Current Assets | - | - | Other Current Assets | - | 602 | |||||||||||||||||||||||||||||||
$ | 997 | $ | 12 | $ | 485 | $ | 1,434 | ||||||||||||||||||||||||||||||
Effect of Derivative Instruments on Company's Financial Performance | ' | ||||||||||||||||||||||||||||||||||||
The following tables provide information about the effect of derivative instruments on the financial performance of the Company for the fiscal years ended August 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||||||||||
In thousands | Amount of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | ||||||||||||||||||||||||||||||||||
Recognized in AOCI | Reclassified from | Recognized in Income | |||||||||||||||||||||||||||||||||||
AOCI into Income | |||||||||||||||||||||||||||||||||||||
Year Ended August 31 | Year Ended August 31 | Year Ended August 31 | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||||||||||||||||
Corn Futures (1) | $ | (407 | ) | $ | 2,067 | $ | (4,949 | ) | $ | 5,351 | $ | 1,500 | $ | (7,418 | ) | $ | (870 | ) | $ | 36 | $ | (162 | ) | ||||||||||||||
Natural Gas Futures (1) | - | - | (579 | ) | - | (492 | ) | (1,332 | ) | - | - | (85 | ) | ||||||||||||||||||||||||
Ethanol Futures (1) | 1,611 | 1,667 | (4,180 | ) | (123 | ) | 1,263 | (3,075 | ) | (151 | ) | - | - | ||||||||||||||||||||||||
$ | 1,204 | $ | 3,734 | $ | (9,708 | ) | $ | 5,228 | $ | 2,271 | $ | (11,825 | ) | $ | (1,021 | ) | $ | 36 | $ | (247 | ) | ||||||||||||||||
Fair Value Hedges: | |||||||||||||||||||||||||||||||||||||
Corn Futures (1) (2) | $ | 363 | $ | 98 | 28 | ||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Natural Gas Futures (1) | $ | 94 | $ | (1,082 | ) | $ | - | ||||||||||||||||||||||||||||||
FX Contracts (1) | - | 6 | - | ||||||||||||||||||||||||||||||||||
Soybean Oil Futures (1) | - | 12 | - | ||||||||||||||||||||||||||||||||||
Soybean Meal Futures (1) | - | (14 | ) | - | |||||||||||||||||||||||||||||||||
$ | 94 | $ | (1,078 | ) | $ | - | |||||||||||||||||||||||||||||||
(1) Gains and losses reported in cost of goods sold | |||||||||||||||||||||||||||||||||||||
(2) Hedged items are firm commitments and inventory | |||||||||||||||||||||||||||||||||||||
Other_Nonoperating_Income_Expe1
Other Non-operating Income (Expense) (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Other Non-Operating Income (Expense) | ' | ||||||||||||
Other non-operating income (expense) consists of the following: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Loss on redemption of Series A Preferred Stock | $ | — | $ | (6,599 | ) | $ | — | ||||||
Other | 75 | 413 | 115 | ||||||||||
$ | 75 | $ | (6,186 | ) | $ | 115 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of U.S. Income Tax Expense (Benefit) | ' | ||||||||||||
U.S. Income tax expense (benefit) consists of the following: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | (422 | ) | $ | (162 | ) | $ | 34 | |||||
State | 80 | 3 | 137 | ||||||||||
(342 | ) | (159 | ) | 171 | |||||||||
Deferred: | |||||||||||||
Federal | 1,829 | 4,582 | 9 | ||||||||||
State | (4 | ) | 383 | 133 | |||||||||
1,825 | 4,965 | 142 | |||||||||||
Total | $1,483 | $4,806 | $313 | ||||||||||
Schedule of Allocable Comprehensive Tax Expense (Benefit) | ' | ||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Comprehensive tax expense (benefit) allocable to: | |||||||||||||
Income before taxes | $ | 1,483 | $ | 4,806 | $ | 313 | |||||||
Comprehensive income (loss) | 4,887 | (4,924 | ) | 3,856 | |||||||||
$ | 6,370 | $ | (118 | ) | $ | 4,169 | |||||||
Reconciliation of Statutory Federal Tax to Actual Provision (Benefit) for Taxes | ' | ||||||||||||
A reconciliation of the statutory federal tax to the actual provision (benefit) for taxes is as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Statutory tax rate | 35% | 35% | 35% | ||||||||||
Statutory tax on income | $ | 1,921 | $ | (1,666 | ) | $ | (1,682 | ) | |||||
State taxes, net of federal benefit | 94 | 219 | 52 | ||||||||||
Non-deductible expenses related to preferred stock | - | 4,547 | 2,687 | ||||||||||
Research credit | (189 | ) | (73 | ) | (195 | ) | |||||||
Ethanol credit | - | - | (975 | ) | |||||||||
Foreign taxes | (183 | ) | (38 | ) | 200 | ||||||||
Stock option exercises/expirations | 376 | - | - | ||||||||||
Prior year true up | (265 | ) | 95 | 79 | |||||||||
Unrecognized tax benefits | (359 | ) | (165 | ) | 67 | ||||||||
Valuation allowance | (104 | ) | 1,787 | - | |||||||||
Other | 192 | 100 | 80 | ||||||||||
Total provision (benefit) | $ | 1,483 | $ | 4,806 | $ | 313 | |||||||
Schedule of Significant Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The significant components of deferred tax assets and liabilities are as follows: | |||||||||||||
August 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Alternative minimum tax credit | $ | 3,473 | $ | 3,354 | |||||||||
Postretirement benefits | 11,920 | 18,060 | |||||||||||
Provisions for accrued expenses | 2,791 | 2,908 | |||||||||||
Stock-based compensation | 2,453 | 2,420 | |||||||||||
Net operating loss carryforward | 4,575 | 7,469 | |||||||||||
Tax credit carryforwards | 4,373 | 4,152 | |||||||||||
NOL carryforward-foreign | 10,853 | 11,010 | |||||||||||
Hedging | 525 | - | |||||||||||
Other | 2,092 | 2,025 | |||||||||||
43,055 | 51,398 | ||||||||||||
Less - valuation allowance | (12,537 | ) | (12,797 | ) | |||||||||
Total deferred tax assets | 30,518 | 38,601 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | 22,296 | 21,762 | |||||||||||
Hedging | - | 1,004 | |||||||||||
Other | 1,756 | 2,560 | |||||||||||
Total deferred tax liabilities | 24,052 | 25,326 | |||||||||||
Net deferred tax assets | $ | 6,466 | $ | 13,275 | |||||||||
Recognized as: | |||||||||||||
Other current assets | $ | 1,479 | $ | 167 | |||||||||
Deferred tax asset | 4,987 | 13,108 | |||||||||||
Total net deferred tax assets | $ | 6,466 | $ | 13,275 | |||||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Unrecognized tax benefits at beginning of year | $ | 1,058 | $ | 1,220 | |||||||||
Additions for tax positions related to prior years | 134 | 112 | |||||||||||
Additions for tax positions related to current year | 90 | 62 | |||||||||||
Reductions due to lapse of applicable statute of limitations | (576 | ) | (336 | ) | |||||||||
Unrecognized tax benefits at end of year | $ | 706 | $ | 1,058 | |||||||||
Earnings_loss_per_Common_Share1
Earnings (loss) per Common Share (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Reconciliation of Income from Operations Applicable to Common Shares and Computation of Diluted Weighted Average Shares Outstanding | ' | ||||||||||||
The following table presents the reconciliation of net income (loss) to net income (loss) applicable to common shares and the computation of diluted weighted average shares outstanding for the fiscal years 2013, 2012 and 2011. | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | 4,007 | $ | (9,566 | ) | $ | (5,117 | ) | |||||
Less: Allocation to participating securities | (11 | ) | - | - | |||||||||
Net income (loss) applicable to common shares and equivalents | $ | 3,996 | $ | (9,566 | ) | $ | (5,117 | ) | |||||
Denominator: | |||||||||||||
Weighted average common shares and equivalents outstanding, basic | 12,369 | 12,294 | 12,251 | ||||||||||
Dilutive stock options and awards | 249 | - | - | ||||||||||
Weighted average common shares and equivalents outstanding, diluted | 12,618 | 12,294 | 12,251 | ||||||||||
Carolina_Starches_Acquisition_
Carolina Starches Acquisition (Tables) | 12 Months Ended | ||||||
Aug. 31, 2013 | |||||||
Business Combinations [Abstract] | ' | ||||||
Purchase Price Allocation to Assets Acquired and Liabilities Assumed | ' | ||||||
The final allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values as of January 11, 2012, is presented below. | |||||||
(in thousands) | |||||||
Property, plant and equipment | $ | 3,947 | |||||
Working capital | 4,225 | ||||||
Other assets | 141 | ||||||
Intangible assets | 290 | ||||||
Goodwill | 81 | ||||||
Non-current liabilities | (184 | ) | |||||
Total purchase price | $ | 8,500 | |||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Wide Reporting Information | ' | ||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Sales | |||||||||||||
Industrial ingredients | |||||||||||||
Industrial Starch | $ | 177,382 | $ | 156,945 | $ | 127,471 | |||||||
Ethanol | 96,852 | 101,874 | 105,730 | ||||||||||
By-products | 81,782 | 71,788 | 58,322 | ||||||||||
$ | 356,016 | $ | 330,607 | $ | 291,523 | ||||||||
Food ingredients | 111,234 | 102,544 | 82,240 | ||||||||||
$ | 467,250 | $ | 433,151 | $ | 373,763 | ||||||||
Depreciation and amortization | |||||||||||||
Industrial ingredients | $ | 10,933 | $ | 10,879 | $ | 10,812 | |||||||
Food ingredients | 2,061 | 1,989 | 2,110 | ||||||||||
Corporate and other | 332 | 1,259 | 1,493 | ||||||||||
$ | 13,326 | $ | 14,127 | $ | 14,415 | ||||||||
Income (loss) from operations | |||||||||||||
Industrial ingredients | $ | (3,238 | ) | $ | (928 | ) | $ | (4,718 | ) | ||||
Food ingredients | 23,265 | 21,591 | 18,037 | ||||||||||
Corporate and other | (10,623 | ) | (10,604 | ) | (8,874 | ) | |||||||
$ | 9,404 | $ | 10,059 | $ | 4,445 | ||||||||
Capital expenditures, net | |||||||||||||
Industrial ingredients | $ | 8,997 | $ | 8,700 | $ | 6,625 | |||||||
Food ingredients | 5,202 | 5,446 | 1,663 | ||||||||||
Corporate and other | - | - | 7 | ||||||||||
$ | 14,199 | $ | 14,146 | $ | 8,295 | ||||||||
August 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Total assets | |||||||||||||
Industrial ingredients | $ | 133,120 | $ | 143,039 | |||||||||
Food ingredients | 68,550 | 63,949 | |||||||||||
Corporate and other | 22,948 | 29,191 | |||||||||||
$ | 224,618 | $ | 236,179 | ||||||||||
Reconciliation of Income (Loss) from Operations for Segments to Income (Loss) Before Income Taxes | ' | ||||||||||||
Reconciliation of income (loss) from operations for the Company’s segments to income (loss) before income taxes as reported in the consolidated financial statements follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
Income from operations | $ | 9,404 | $ | 10,059 | $ | 4,445 | |||||||
Interest expense | (3,989 | ) | (8,633 | ) | (9,364 | ) | |||||||
Other non-operating income (expense) | 75 | (6,186 | ) | 115 | |||||||||
Income (loss) before income taxes | $ | 5,490 | $ | (4,760 | ) | $ | (4,804 | ) | |||||
Sales, Attributed to Area to Which Product was Shipped | ' | ||||||||||||
Sales, attributed to the area to which the product was shipped, are as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||
United States | $ | 429,957 | $ | 400,070 | $ | 346,893 | |||||||
Canada | 8,662 | 5,653 | 4,027 | ||||||||||
Mexico | 11,419 | 12,761 | 9,221 | ||||||||||
Columbia | 7,379 | 6,678 | 6,802 | ||||||||||
Japan | 5,112 | 4,380 | 3,434 | ||||||||||
Other | 4,721 | 3,609 | 3,386 | ||||||||||
Non-United States | 37,293 | 33,081 | 26,870 | ||||||||||
Total | $ | 467,250 | $ | 433,151 | $ | 373,763 | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Summary of Quarterly Financial Data | ' | ||||||||||||||||||||
The following tables set forth selected unaudited consolidated quarterly financial information for the Company’s two most recent fiscal years. | |||||||||||||||||||||
Fiscal 2013 | First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Sales | $ | 118,022 | $ | 110,082 | $ | 121,719 | $ | 117,427 | $ | 467,250 | |||||||||||
Cost of sales | 104,764 | 99,081 | 108,528 | 109,830 | 422,203 | ||||||||||||||||
Gross margin | 13,258 | 11,001 | 13,191 | 7,597 | 45,047 | ||||||||||||||||
Net income (loss) | 1,707 | 1,191 | 2,058 | (949 | ) | 4,007 | |||||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.1 | $ | 0.17 | $ | (0.08 | ) | $ | 0.32 | ||||||||||
Diluted | $ | 0.14 | $ | 0.1 | $ | 0.16 | $ | (0.08 | ) | $ | 0.32 | ||||||||||
Dividends declared | $ - | $ - | $ - | $ - | $ - | ||||||||||||||||
Fiscal 2012 | First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Sales | $ | 108,168 | $ | 103,477 | $ | 111,283 | $ | 110,223 | $ | 433,151 | |||||||||||
Cost of sales | 96,360 | 94,076 | 99,829 | 98,976 | 389,241 | ||||||||||||||||
Gross margin | 11,808 | 9,401 | 11,454 | 11,247 | 43,910 | ||||||||||||||||
Net income (loss) | 592 | (340 | ) | (5,452 | ) | (4,366 | ) | (9,566 | ) | ||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||||
Basic | $ | 0.05 | $ | (0.03 | ) | $ | (0.44 | ) | $ | (0.35 | ) | $ | (0.78 | ) | |||||||
Diluted | $ | 0.05 | $ | (0.03 | ) | $ | (0.44 | ) | $ | (0.35 | ) | $ | (0.78 | ) | |||||||
Dividends declared | $ - | $ - | $ - | $ - | $ - |
Business_Additional_Informatio
Business - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2013 | Jan. 31, 2012 |
Segment | Carolina Starches, LLC [Member] | |
Business And Organization [Line Items] | ' | ' |
Number of segments | 2 | ' |
Purchase price | ' | $8.50 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts and Concentration of Credit Risk (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Balance Beginning of Year | $78 | $1,305 | $350 |
Charged to Costs and Expenses | 241 | -42 | 958 |
Deductions and Other | -39 | -1,185 | -3 |
Balance End of Year | $280 | $78 | $1,305 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Depreciation of assets | $13,326,000 | $14,127,000 | $14,415,000 |
Interest capitalized | 107,000 | 48,000 | 0 |
Weighted average remaining amortization period (in years) | '4 years | ' | ' |
Intangible assets with indefinite lives | 0 | ' | ' |
Research and development costs expensed | 5,870,000 | 5,838,000 | 4,772,000 |
Minimum percentage likelihood of tax benefit to be realized | 50.00% | ' | ' |
Real Estate [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Depreciation of assets | $12,800,000 | $12,700,000 | $12,800,000 |
Minimum [Member] | Equipment and Vehicles [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Average useful life (in years) | '3 Years | ' | ' |
Minimum [Member] | Real Estate [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Average useful life (in years) | '12 years | ' | ' |
Maximum [Member] | Equipment and Vehicles [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Average useful life (in years) | '12 Years | ' | ' |
Maximum [Member] | Real Estate [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Average useful life (in years) | '46 years | ' | ' |
Eco Energy, Inc [Member] | Sales Revenue, Goods, Net [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Concentration of sales (in percentage) | 21.00% | 24.00% | 28.00% |
Export Distribution Channel [Member] | Sales Revenue, Goods, Net [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Concentration of sales (in percentage) | 8.00% | 7.60% | 7.20% |
Patents [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Weighted average remaining amortization period (in years) | '5 years | ' | ' |
Paper Industry [Member] | Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Concentration of sales (in percentage) | 38.00% | 36.00% | 34.00% |
Number of customers in paper industry primarily responsible for increase in allowance for doubtful accounts (in customers) | 2 | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Components of Accrued Liabilities (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Employee-related costs | $3,931 | $4,837 |
Other | 4,276 | 3,400 |
Accrued liabilities | $8,207 | $8,237 |
Inventories_Components_of_Inve
Inventories - Components of Inventory (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $10,381 | $19,773 |
Work in progress | 1,913 | 1,542 |
Finished goods | 21,698 | 22,357 |
Total inventories | $33,992 | $43,672 |
Property_and_Equipment_Compone
Property and Equipment - Components of Property and Equipment (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $377,045 | $365,389 |
Accumulated depreciation | -264,904 | -252,198 |
Net property and equipment | 112,141 | 113,191 |
Land and land improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 11,881 | 11,623 |
Plant and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 359,909 | 346,087 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $5,255 | $7,679 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ' | ' |
Equipment under capital leases | $0.80 | $1 |
Payables related to property, plant and equipment | $0.70 | $1.10 |
Recovered_Sheet1
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | 31-May-13 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | |
Food Ingredients [Member] | Food Ingredients [Member] | Food Ingredients [Member] | Maximum [Member] | Customer Lists [Member] | Non-Compete Agreements [Member] | Patents [Member] | |||
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $7,978,000 | $7,978,000 | $8,000,000 | ' | $8,000,000 | ' | ' | ' | ' |
Additions to goodwill | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible asset residual value | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Impairment to the recorded value of goodwill | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Weighted average remaining amortization period (in years) | '4 years | ' | ' | ' | ' | ' | '2 years | '5 years | '5 years |
Amortization expense related to intangible assets | $100,000 | $100,000 | ' | ' | ' | $100,000 | ' | ' | ' |
Recovered_Sheet2
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Carrying Amount | $2,038 | $2,038 |
Accumulated Amortization | 1,725 | 1,571 |
Patents [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Carrying Amount | 1,748 | 1,748 |
Accumulated Amortization | 1,538 | 1,500 |
Customer Lists [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Carrying Amount | 190 | 190 |
Accumulated Amortization | 154 | 59 |
Non-Compete Agreements [Member] | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' |
Carrying Amount | 100 | 100 |
Accumulated Amortization | $33 | $12 |
Preferred_Stock_Subject_to_Man1
Preferred Stock Subject to Mandatory Redemption - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Apr. 07, 2010 | Aug. 31, 2012 | Apr. 07, 2010 | |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series A Cumulative Non-Voting Non-Convertible Preferred Stock, Redeemable [Member] | Series A Cumulative Non-Voting Non-Convertible Preferred Stock, Redeemable [Member] | Series B Voting Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock issued value | ' | ' | ' | ' | ' | $40,000,000 | ' | $7,700,000 |
Dividend on preferred stock (in percentage) | ' | ' | ' | ' | ' | 15.00% | 6.00% | ' |
Preferred stock, shares issued (in shares) | ' | 0 | ' | ' | ' | ' | ' | 100,000 |
Preferred Stock, shares authorized (in shares) | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Preferred stock, shares par value (in USD per share) | ' | $1 | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding (in shares) | ' | 0 | ' | ' | ' | ' | ' | ' |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Fair Value of Shares | ' | ' | ' | ' | ' | 32,300,000 | ' | ' |
Amortization period of the discount on the Series A mandatory redeemable preferred stock (in years) | ' | ' | ' | ' | ' | ' | '7 years | ' |
Preferred stock dividends accrued as a percentage of outstanding Preferred Stock | ' | ' | ' | ' | ' | ' | 9.00% | ' |
Preferred stock, redeemed | 40,000,000 | ' | ' | 48,900,000 | ' | ' | ' | ' |
Preferred stock, redeemed shares | ' | ' | ' | 100,000 | ' | ' | ' | ' |
Preferred stock redemption price | ' | ' | 23,500,000 | 40,000,000 | ' | ' | ' | ' |
Accrued dividend | ' | ' | 5,400,000 | 8,900,000 | ' | ' | ' | ' |
Accelerated discount accretion | ' | ' | 3,200,000 | 5,500,000 | ' | ' | ' | ' |
Amortization of issuance costs | ' | ' | ' | $1,100,000 | ' | ' | ' | ' |
Preferred stock, converted | ' | ' | ' | ' | 100,000 | ' | ' | ' |
Common stock, Converted shares | ' | ' | ' | ' | 1,000,000 | ' | ' | ' |
Debt_Longterm_Debt_and_Capital
Debt - Long-term Debt and Capital Lease Obligations Current and Non Current (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Capital lease obligations | $231 | $423 |
Debt and capital lease obligations, including current portion and short-term borrowings | 72,970 | 84,462 |
Less: current portion and short-term borrowings | 231 | 458 |
Long-term debt and capital lease obligations | 72,739 | 84,004 |
Secured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Carrying amount of debt | 71,506 | 82,606 |
Iowa Department of Economic Development Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Carrying amount of debt | $1,233 | $1,433 |
Debt_Longterm_Debt_and_Capital1
Debt - Long-term Debt and Capital Lease Obligations Current and Non Current (Parenthetical) (Detail) (Secured Debt [Member]) | Aug. 31, 2013 |
Secured Debt [Member] | ' |
Debt Instrument [Line Items] | ' |
Secured credit agreements - weighted average interest rate (in percentage) | 3.18% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Jul. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 |
Maximum [Member] | 2012 Agreement [Member] | 2012 Agreement [Member] | 2012 Agreement [Member] | 2012 Agreement [Member] | 2012 Agreement [Member] | 2012 Agreement [Member] | |||
Two Consecutive Quarters [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||||
Scenario, Forecast [Member] | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing amount under amended and restated credit agreement | ' | ' | ' | $130,000,000 | ' | ' | ' | ' | ' |
Scheduled principal payment | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | 9-Jul-17 | ' | ' | ' | ' | ' |
Line of credit, amount outstanding | ' | ' | ' | ' | 71,500,000 | ' | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis over LIBOR (in percentage) | ' | ' | ' | ' | ' | ' | 2.00% | 4.00% | ' |
Covenant, maximum total leverage ratio permitted through November 30, 2013 | ' | ' | ' | ' | ' | 2 | ' | ' | 3.5 |
Covenant, maximum total leverage ratio permitted from December 1, 2013 through May 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | 3.25 |
Covenant, maximum total leverage ratio permitted after May 31, 2014 | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
Covenant, fixed coverage ratio | ' | ' | ' | ' | ' | ' | 1.35 | ' | ' |
Covenant, amount of annual capital expenditures permitted | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' |
Covenant, dividend declaration permitted | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' |
Dividend declared, Percentage of cash flow | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' |
Capital lease obligations | 231,000 | 423,000 | ' | ' | ' | ' | ' | ' | ' |
Current portion of capital leases | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' |
Debt_Iowa_Department_of_Econom
Debt - Iowa Department of Economic Development - Additional Information (Detail) (Iowa Department of Economic Development Loans [Member], USD $) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2009 | Aug. 31, 2013 | Aug. 31, 2012 | |
SecurityLoan | |||
Iowa Department of Economic Development Loans [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Number of non interest bearing loans | ' | 2 | ' |
Loan period (in years) | ' | '5 years | ' |
Non interest bearing loans | $1,000,000 | ' | ' |
Number of monthly payments | '60 equal monthly payments | ' | ' |
Potentially forgivable loan amount | ' | 1,000,000 | ' |
Periodic repayments of loan | 16,667 | ' | ' |
Outstanding amount of IDED loans | ' | $1,233,000 | $1,433,000 |
Debt_Schedule_of_Maturities_of
Debt - Schedule of Maturities of Long-term Debt (Detail) (USD $) | Aug. 31, 2013 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $231 |
2015 | 1,103 |
2016 | 57 |
2017 | 71,554 |
2018 | 25 |
Total | $72,970 |
Stockholders_Equity_Common_Sha
Stockholders' Equity - Common Shares Outstanding (Detail) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' |
Balance, beginning of year | 14,280,718 | 13,243,385 | 13,189,581 |
Series B preferred stock converted to common shares | ' | 1,000,000 | ' |
Exercise of stock options | 121,226 | ' | ' |
Issuance of restricted stock, net | 52,237 | 37,333 | 53,804 |
Balance, end of year | 14,454,181 | 14,280,718 | 13,243,385 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2012 | |
Series B Voting Convertible Preferred Stock [Member] | ' |
Conversion of Stock [Line Items] | ' |
Series B preferred stock | 100,000 |
Common Stock [Member] | ' |
Conversion of Stock [Line Items] | ' |
Series B preferred stock converted to common shares | 1,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | ($15,593) | ($7,559) | ($13,850) |
Other comprehensive income (loss), net of taxes | 7,974 | -8,034 | 6,291 |
Ending Balance | -7,619 | -15,593 | -7,559 |
Net Unrealized Gains (Losses) on Cash Flow Hedging Instruments [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 1,638 | 731 | -582 |
Other comprehensive income (loss), net of taxes | -2,494 | 907 | 1,313 |
Ending Balance | -856 | 1,638 | 731 |
Gains (Losses) on Postretirement Obligations [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -17,231 | -8,290 | -13,268 |
Other comprehensive income (loss), net of taxes | 10,468 | -8,941 | 4,978 |
Ending Balance | ($6,763) | ($17,231) | ($8,290) |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Operating Leased Assets [Line Items] | ' | ' | ' |
Rental expense under operating leases, net | $6.30 | $6 | $5.40 |
Minimum [Member] | Vehicles and Office Equipment [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease term (in years) | '1 year | ' | ' |
Minimum [Member] | Real Estate Leases [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease term (in years) | '5 years | ' | ' |
Maximum [Member] | Vehicles and Office Equipment [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease term (in years) | '15 years | ' | ' |
Maximum [Member] | Real Estate Leases [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease term (in years) | '20 years | ' | ' |
Leases_Future_Minimum_Lease_Pa
Leases - Future Minimum Lease Payments for Noncancelable Operating and Capital Leases (Detail) (USD $) | Aug. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $70 |
2015 | 69 |
2016 | 67 |
2017 | 52 |
2018 | 17 |
Thereafter | 9 |
Total minimum lease payments | 284 |
Less: amounts representing interest | -53 |
Net minimum lease payments, Capital Leases | 231 |
2014 | 2,836 |
2015 | 1,701 |
2016 | 942 |
2017 | 448 |
2018 | 41 |
Thereafter | ' |
Total minimum lease payments, Operating Leases | $5,968 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | Jan. 11, 2012 | Jan. 26, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2013 | Jan. 01, 2013 | Jan. 26, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2011 | Aug. 31, 2011 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | |
Carolina Starches, LLC [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Non Qualified Stock Options And Restricted Stock [Member] | Non Qualified Stock Options And Restricted Stock [Member] | Non Qualified Stock Options And Restricted Stock [Member] | ||
Maximum [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | |||||||||
Non Employee Directors [Member] | Non Employee Directors [Member] | Vesting Period Two Years [Member] | Vesting Period Three Years [Member] | Vesting Period One Year [Member] | Vesting Period Four Years [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional common shares authorized for issuance under the plan (in shares) | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares available for issuance under the plan | ' | ' | ' | 388,882 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period (in Years) | ' | '2 years | ' | ' | ' | ' | ' | ' | '1 year | '1 year | ' | ' | '3 years | ' | '2 years | '3 years | '1 year | '4 years | ' | '1 year | '4 years |
Expiration period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Seven years | ' | ' |
Share price of Company's stock | $13.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | $835,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted during the period | ' | 82,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | 678,000 | 98,000 | 75,000 | 45,000 | 80,000 | 18,000 | ' | ' | ' |
Option term | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense related to non-vested awards not yet recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period over which unrecognized compensation cost will be recognized (in years) | ' | ' | ' | ' | '3 months 18 days | ' | ' | ' | ' | ' | '1 year 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of restricted stock vested | ' | ' | ' | ' | 400,000 | 1,000,000 | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued for non-employee director, shares | ' | ' | ' | ' | ' | ' | ' | ' | 2,721 | 3,539 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards granted | ' | ' | ' | ' | 24,489 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense related to unvested awards not yet recognized | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | |
Minimum [Member] | Maximum [Member] | Outstanding Beginning Balance Option Price Range [Member] | Outstanding Beginning Balance Option Price Range [Member] | Outstanding Beginning Balance Option Price Range [Member] | Granted During Period Option Price Range [Member] | Granted During Period Option Price Range [Member] | Granted During Period Option Price Range [Member] | Cancelled During Period Option Price Range [Member] | Cancelled During Period Option Price Range [Member] | Cancelled During Period Option Price Range [Member] | Outstanding Ending Balance Option Price Range [Member] | Outstanding Ending Balance Option Price Range [Member] | Outstanding Ending Balance Option Price Range [Member] | Exercisable Ending Balance Option Price Range [Member] | Exercisable Ending Balance Option Price Range [Member] | Exercisable Ending Balance Option Price Range [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding, beginning of period, Shares | ' | ' | ' | 1,824,916 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding, end of period, Shares | ' | ' | ' | 1,824,916 | ' | ' | ' | ' | ' | ' | ' | ' | 1,517,588 | ' | ' | ' | ' | ' |
Shares, Granted | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Price Range, Outstanding end of the period | ' | ' | ' | $10.94 | $4.66 | $21.73 | ' | ' | ' | ' | ' | ' | $10.30 | $4.66 | $21.73 | ' | ' | ' |
Shares, Exercised | -222,864 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares, Cancelled | ' | ' | ' | ' | ' | ' | ' | ' | ' | -204,464 | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, end of period, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 895,339 | ' | ' |
Option Price Range, Outstanding Beginning of the period | ' | ' | ' | $10.94 | $4.66 | $21.73 | ' | ' | ' | ' | ' | ' | ' | $4.66 | $21.73 | ' | ' | ' |
Option Price Range, Granted | ' | ' | ' | ' | ' | ' | $8.49 | $7.60 | $11.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Price Range, Exercised | $10.31 | $5.29 | $12.79 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Price Range, Cancelled | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.99 | $9.87 | $17.07 | ' | ' | ' | ' | ' | ' |
Options Price Range, Exercisable end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.17 | $4.66 | $21.73 |
Weighted Average Remaining Term, Outstanding, Ending Balance (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 10 months 24 days | ' | ' | ' | ' | ' |
Weighted Average Remaining Term, Options Exercisable (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 8 months 27 days | ' | ' |
Aggregate Intrinsic value, Outstanding, Ending Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,737,300 | ' | ' | ' | ' | ' |
Aggregate Intrinsic value, Options Exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,144,000 | ' | ' |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Share Based Payment Award Stock Options Valuation Assumptions (Detail) (Stock Options [Member], USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 68.00% | 68.00% | 71.00% |
Expected life (years) | '4 years 8 months 12 days | '4 years 10 months 24 days | '4 years 3 months 18 days |
Interest rate, minimum | 0.50% | 0.50% | 1.10% |
Interest rate, maximum | 1.00% | 1.10% | 2.80% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair values | $4.60 | $3.13 | $3.62 |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Share-Based Compensation, Restricted Stock Award Activity (Detail) (Restricted Stock [Member], USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2011 | |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares, Nonvested at August 31, 2012 | 61,716 | ' |
Shares, Granted | 24,489 | 0 |
Shares, Vested | -61,716 | ' |
Shares, Cancelled | ' | ' |
Shares, Nonvested at August 31, 2013 | 24,489 | ' |
Weighted-Average Grant-Date Fair Value, Beginning balance (in USD per share) | $5.94 | ' |
Weighted-Average Grant-Date Fair Value, Granted (in USD per share) | $7.35 | ' |
Weighted-Average Grant-Date Fair Value, Vested (in USD per share) | $5.94 | ' |
Weighted-Average Grant-Date Fair Value, Cancelled (in USD per share) | ' | ' |
Weighted-Average Grant-Date Fair Value, Ending balance (in USD per share) | $7.35 | ' |
StockBased_Compensation_Schedu3
Stock-Based Compensation - Schedule of Employee Service Share-Based Compensation, Allocation of Recognized Period Costs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $1,404 | $1,387 | $1,117 |
Income tax benefit | -534 | -527 | -424 |
Total stock-based compensation expense, net of tax | 870 | 860 | 693 |
Cost of Sales [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | ' | 48 | 130 |
Operating Expense [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 1,404 | 1,324 | 949 |
Research and Development Expense [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | ' | $15 | $38 |
Pensions_and_Other_Postretirem2
Pensions and Other Postretirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Number of defined benefit plans | 2 | ' | ' |
Employees covered under noncontributory defined benefit pension plans (in percentage) | 56.00% | ' | ' |
Redemption requests notice period (in days) | '110 days | ' | ' |
Employer contributions | $1,100,000 | $4,100,000 | $6,400,000 |
Minimum pension plan funding contribution during fiscal 2014 | 2,500,000 | ' | ' |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expected long-term return on assets assumption used to calculate net periodic pension expense (in percentage) | 7.00% | 8.00% | 8.00% |
Hypothetical decrease in the expected return on assets assumption, to determine impact on expense (in percentage) | 0.50% | ' | ' |
Estimated increase in expense resulting from a hypothetical decrease of 50 bps in the expected return on plan assets assumption | 200,000 | ' | ' |
Discount rate (in percentage) | 4.28% | 5.87% | 5.64% |
Discount rate (in percentage) | 5.24% | 4.28% | 5.87% |
Hypothetical decrease in the discount rate assumption, to determine impact on expense (in percentage) | 0.25% | ' | ' |
Estimated increase in expense resulting from a hypothetical decrease of 25 bps in the discount rate assumption | 240,000 | ' | ' |
Employer contributions | 1,136,000 | 4,052,000 | ' |
Pension Benefits [Member] | Penford Corporation [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets invested | 0 | ' | ' |
Pension Benefits [Member] | Scenario, Forecast [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expected long-term return on assets assumption used to calculate net periodic pension expense (in percentage) | 7.00% | ' | ' |
Discount rate (in percentage) | 5.24% | ' | ' |
Defined Benefit Plan, Amortization of Net Gains (Losses), next fiscal year | 500,000 | ' | ' |
Other Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate (in percentage) | 4.28% | 5.87% | 5.64% |
Discount rate (in percentage) | 5.24% | 4.28% | 5.87% |
Hypothetical decrease in the discount rate assumption, to determine impact on expense (in percentage) | 0.25% | ' | ' |
Plan assets invested | 0 | ' | ' |
Employer contributions | $551,000 | $522,000 | ' |
Pensions_and_Other_Postretirem3
Pensions and Other Postretirement Benefits - Summary of Pension and Other Postretirement Benefit Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Change in plan assets: | ' | ' | ' |
Company contributions | $1,100 | $4,100 | $6,400 |
Balance, August 31, 2013 | 46,726 | ' | ' |
Pension Benefits [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation, beginning balance | 62,989 | 47,545 | ' |
Service cost | 1,945 | 1,521 | 1,617 |
Interest cost | 2,648 | 2,729 | 2,696 |
Amendments | ' | 212 | ' |
Actuarial (gain) loss | -107 | 619 | ' |
Change in assumptions | -8,135 | 12,359 | ' |
Benefits paid | -2,062 | -1,996 | ' |
Benefit obligation, ending balance | 57,278 | 62,989 | 47,545 |
Change in plan assets: | ' | ' | ' |
Balance, August 31, 2012 | 42,072 | 36,328 | ' |
Actual return on plan assets | 5,580 | 3,688 | ' |
Company contributions | 1,136 | 4,052 | ' |
Benefits paid | -2,062 | -1,996 | ' |
Balance, August 31, 2013 | 46,726 | 42,072 | 36,328 |
Funded status: | ' | ' | ' |
Net liability - Plan assets less than projected benefit obligation | -10,552 | -20,917 | ' |
Recognized as: | ' | ' | ' |
Non-current accrued benefit liability | -10,552 | -20,917 | ' |
Net Amount Recognized | -10,552 | -20,917 | ' |
Other Benefits [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation, beginning balance | 20,457 | 16,924 | ' |
Service cost | 235 | 229 | 272 |
Interest cost | 860 | 972 | 972 |
Plan participants' contributions | 106 | 119 | ' |
Actuarial (gain) loss | 267 | -170 | ' |
Change in assumptions | -3,912 | 3,024 | ' |
Benefits paid | -657 | -641 | ' |
Benefit obligation, ending balance | 17,356 | 20,457 | 16,924 |
Change in plan assets: | ' | ' | ' |
Company contributions | 551 | 522 | ' |
Plan participants' contributions | 106 | 119 | ' |
Benefits paid | -657 | -641 | ' |
Funded status: | ' | ' | ' |
Net liability - Plan assets less than projected benefit obligation | -17,356 | -20,457 | ' |
Recognized as: | ' | ' | ' |
Current accrued benefit liability | -760 | -750 | ' |
Non-current accrued benefit liability | -16,596 | -19,707 | ' |
Net Amount Recognized | ($17,356) | ($20,457) | ' |
Pensions_and_Other_Postretirem4
Pensions and Other Postretirement Benefits - Components of Accumulated Other Comprehensive Loss Unrecognized (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Unrecognized prior service cost (credit) | $1,288 | $1,529 |
Unrecognized net actuarial loss | 10,091 | 22,976 |
Total | 11,379 | 24,505 |
Other Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Unrecognized prior service cost (credit) | -155 | -307 |
Unrecognized net actuarial loss | -318 | 3,594 |
Total | ($473) | $3,287 |
Pensions_and_Other_Postretirem5
Pensions and Other Postretirement Benefits - Benefit Obligations in Excess of Fair Value of Plan Assets (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Compensation And Retirement Disclosure [Abstract] | ' | ' |
Projected benefit obligation | $57,278 | $62,989 |
Accumulated benefit obligation | 54,389 | 59,853 |
Fair value of plan assets | $46,726 | $42,072 |
Pensions_and_Other_Postretirem6
Pensions and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $1,945 | $1,521 | $1,617 |
Interest cost | 2,648 | 2,729 | 2,696 |
Expected return on plan assets | -2,869 | -2,914 | -2,234 |
Amortization of prior service cost | 241 | 228 | 228 |
Amortization of actuarial loss | 1,932 | 773 | 1,441 |
Benefit cost | 3,897 | 2,337 | 3,748 |
Other Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 235 | 229 | 272 |
Interest cost | 860 | 972 | 972 |
Amortization of prior service cost | -152 | -152 | -152 |
Amortization of actuarial loss | 267 | ' | 65 |
Benefit cost | $1,210 | $1,049 | $1,157 |
Pensions_and_Other_Postretirem7
Pensions and Other Postretirement Benefits - Benefit Plan Assumptions (Detail) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Pension Benefits [Member] | ' | ' | ' |
Weighted-average assumptions used to calculate net periodic expense: | ' | ' | ' |
Discount rate | 4.28% | 5.87% | 5.64% |
Expected return on plan assets | 7.00% | 8.00% | 8.00% |
Rate of compensation increase | 3.00% | 3.00% | 4.00% |
Weighted-average assumptions used to calculate benefit obligations at August 31: | ' | ' | ' |
Discount rate | 5.24% | 4.28% | 5.87% |
Expected return on plan assets | 7.00% | 7.00% | 8.00% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Other Benefits [Member] | ' | ' | ' |
Weighted-average assumptions used to calculate net periodic expense: | ' | ' | ' |
Discount rate | 4.28% | 5.87% | 5.64% |
Weighted-average assumptions used to calculate benefit obligations at August 31: | ' | ' | ' |
Discount rate | 5.24% | 4.28% | 5.87% |
Pensions_and_Other_Postretirem8
Pensions and Other Postretirement Benefits - Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Current health care trend assumption | 7.80% | 8.00% | 8.00% |
Ultimate health care trend rate | 4.50% | 4.50% | 4.50% |
Year ultimate health care trend is reached | '2032 | '2030 | '2029 |
Pensions_and_Other_Postretirem9
Pensions and Other Postretirement Benefits - Effect of Changes in Assumed Health Care Cost Trend Rate (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Aug. 31, 2013 |
Compensation And Retirement Disclosure [Abstract] | ' |
Effect on total of service and interest cost components in fiscal 2013, one percentage point increase in health care trend rate | $182 |
Effect on postretirement accumulated benefit obligation as of August 31, 2013, one percentage point increase in health care trend rate | 2,405 |
Effect on total of service and interest cost components in fiscal 2013, one percentage point decrease in health care trend rate | -146 |
Effect on postretirement accumulated benefit obligation as of August 31, 2013, one percentage point decrease in health care trend rate | ($1,999) |
Recovered_Sheet3
Pensions and Other Postretirement Benefits - Weighted Average Asset Allocations of Investment Portfolio for Pension Plans (Detail) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
U.S. Equities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target asset allocation | 55.00% | ' |
Weighted average asset allocation | 55.00% | 56.00% |
International Equities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target asset allocation | 15.00% | ' |
Weighted average asset allocation | 15.00% | 15.00% |
Fixed Income Investments [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target asset allocation | 25.00% | ' |
Weighted average asset allocation | 25.00% | 24.00% |
Real Estate [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target asset allocation | 5.00% | ' |
Weighted average asset allocation | 5.00% | 5.00% |
Recovered_Sheet4
Pensions and Other Postretirement Benefits - Fair Value of Pension Plan's Assets by Major Asset Category (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | $46,726 | $42,072 |
Fair value of plan assets | 46,726 | ' |
Common collective trust funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 44,378 | ' |
Real estate equity funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 2,348 | ' |
Fair value of plan assets | 2,348 | 2,102 |
Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | ' | ' |
Level 1 [Member] | Common collective trust funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | ' | ' |
Level 1 [Member] | Real estate equity funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | ' | ' |
Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 44,378 | ' |
Level 2 [Member] | Common collective trust funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 44,378 | ' |
Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | 2,348 | ' |
Level 3 [Member] | Real estate equity funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets | $2,348 | ' |
Recovered_Sheet5
Pensions and Other Postretirement Benefits - Changes in Fair Value of Pension Plan's Real Estate Equity Fund (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Aug. 31, 2013 |
Actual return on plan assets: | ' |
Balance, August 31, 2013 | $46,726 |
Real estate equity funds [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Balance, August 31, 2012 | 2,102 |
Actual return on plan assets: | ' |
Relating to assets still held at the reporting date | 246 |
Relating to assets sold during the period | ' |
Purchases and sales | ' |
Transfers in (out) of Level 3 | ' |
Balance, August 31, 2013 | $2,348 |
Recovered_Sheet6
Pensions and Other Postretirement Benefits - Expected Benefit Payments (Detail) (USD $) | Aug. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $2.40 |
2015 | 2.5 |
2016 | 2.6 |
2017 | 2.8 |
2018 | 3 |
2019-2023 | 18.7 |
Other Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 0.9 |
2015 | 1 |
2016 | 1 |
2017 | 1.1 |
2018 | 1.2 |
2019-2023 | $7.70 |
Other_Employee_Benefits_Additi
Other Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Savings and Stock Ownership Plan [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' |
Deferral maximum salary percentage | 16.00% | ' | ' |
Employer's match of the first 0% of an employee's salary contributed by that employee to the plan | 100.00% | ' | ' |
Percentage of salary under first plan | 3.00% | ' | ' |
Employer's match of the second 0% of an employee's salary contributed by that employee to the plan | 50.00% | ' | ' |
Company's matching contributions | $1,200,000 | $1,000,000 | $900,000 |
Postretirement Health Care and Life Insurance Benefits [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' |
Pension and postretirement benefits expense, deferred compensation arrangement | 5,900,000 | 5,100,000 | 4,500,000 |
Deferred Compensation Plan [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' |
Pension and postretirement benefits expense, deferred compensation arrangement | 177,000 | 179,000 | 197,000 |
Supplemental Executive Retirement Plans [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' |
Pension and postretirement benefits expense, deferred compensation arrangement | 271,000 | 258,000 | 370,000 |
Accrued pension plan obligation | $2,700,000 | ' | ' |
Fair_Value_Measurements_and_De2
Fair Value Measurements and Derivative Instruments - Fair Values of Company's Derivative Instruments (Detail) (Other Current Assets [Member], Commodity Contract [Member], USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Commodity derivatives | $512 | ($1,422) |
Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Commodity derivatives | 512 | -1,422 |
Level 2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Commodity derivatives | ' | ' |
Level 3 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Commodity derivatives | ' | ' |
Fair_Value_Measurements_and_De3
Fair Value Measurements and Derivative Instruments - Fair Values of Company's Derivative Instruments (Parenthetical) (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' |
Cash collateral due offset | $1.70 | $2.60 |
Fair_Value_Measurements_and_De4
Fair Value Measurements and Derivative Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | ||||||
Aug. 31, 2011 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | |
Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Iowa Department of Economic Development Loans [Member] | Iowa Department of Economic Development Loans [Member] | ||
Designated as Hedging Instrument [Member] | Firm Priced Starch and Ethanol Futures [Member] | Open Position [Member] | |||||
Corn Futures [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | |||||
bu | Corn Futures [Member] | Corn Futures [Member] | |||||
bu | bu | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Carrying value of debt | ' | ' | ' | ' | ' | $1,233,000 | $1,433,000 |
Fair value of debt | ' | ' | ' | ' | ' | 1,200,000 | ' |
Pretax losses continued to be deferred in accumulated other comprehensive income | 500,000 | ' | ' | ' | ' | ' | ' |
Deferred loss, net of tax, recorded in other comprehensive income | ' | ($900,000) | ' | ' | ' | ' | ' |
Purchased corn positions | ' | ' | 3,100,000 | 2,200,000 | 900,000 | ' | ' |
Fair_Value_Measurements_and_De5
Fair Value Measurements and Derivative Instruments - Outstanding Futures Contracts (Detail) (Designated as Hedging Instrument [Member], Commodity Contract [Member]) | Aug. 31, 2013 |
bu | |
Corn Futures [Member] | ' |
Derivative [Line Items] | ' |
Outstanding futures contracts | 4,190,000 |
Ethanol Swaps [Member] | ' |
Derivative [Line Items] | ' |
Outstanding futures contracts | 7,350,000 |
Fair_Value_Measurements_and_De6
Fair Value Measurements and Derivative Instruments - Effect of Derivative Instruments on Company's Financial Performance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Cash Flow Hedges [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in AOCI | $1,204 | $3,734 | ($9,708) |
Amount of Gain (Loss) Reclassified from AOCI into Income | 5,228 | 2,271 | -11,825 |
Amount of Gain (Loss) Recognized in Income | -1,021 | 36 | -247 |
Cash Flow Hedges [Member] | Corn Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in AOCI | -407 | 2,067 | -4,949 |
Amount of Gain (Loss) Reclassified from AOCI into Income | 5,351 | 1,500 | -7,418 |
Amount of Gain (Loss) Recognized in Income | -870 | 36 | -162 |
Cash Flow Hedges [Member] | Natural Gas Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in AOCI | ' | ' | -579 |
Amount of Gain (Loss) Reclassified from AOCI into Income | ' | -492 | -1,332 |
Amount of Gain (Loss) Recognized in Income | ' | ' | -85 |
Cash Flow Hedges [Member] | Ethanol Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in AOCI | 1,611 | 1,667 | -4,180 |
Amount of Gain (Loss) Reclassified from AOCI into Income | -123 | 1,263 | -3,075 |
Amount of Gain (Loss) Recognized in Income | -151 | ' | ' |
Fair Value Hedges [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | 94 | -1,078 | ' |
Fair Value Hedges [Member] | FX Contracts [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ' | 6 | ' |
Fair Value Hedges [Member] | Soybean Oil Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ' | 12 | ' |
Fair Value Hedges [Member] | Soybean Meal Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ' | -14 | ' |
Fair Value Hedges [Member] | Corn Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | 363 | 98 | 28 |
Fair Value Hedges [Member] | Natural Gas Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | $94 | ($1,082) | ' |
Recovered_Sheet7
Other Non-Operating Income (Expense) - Other Non-Operating Income (Expense) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Component of Other Expense, Nonoperating [Abstract] | ' | ' | ' |
Other non-operating income (expense) | $75 | ($6,186) | $115 |
Series A Preferred Stock [Member] | ' | ' | ' |
Component of Other Expense, Nonoperating [Abstract] | ' | ' | ' |
Other non-operating income (expense) | ' | -6,599 | ' |
Other [Member] | ' | ' | ' |
Component of Other Expense, Nonoperating [Abstract] | ' | ' | ' |
Other non-operating income (expense) | $75 | $413 | $115 |
Recovered_Sheet8
Other Non-Operating Income (Expense) - Additional Information (Detail) (Series A Preferred Stock [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Aug. 31, 2012 | Aug. 31, 2012 |
Series A Preferred Stock [Member] | ' | ' |
Component Of Other Income Expense Nonoperating [Line Items] | ' | ' |
Redeemed shares | ' | 100,000 |
Original issue price of redeemed shares | $23.50 | $40 |
Accrued dividend of redeemed shares | 5.4 | 8.9 |
Accelerated discount accretion | 3.2 | 5.5 |
Amortization of issuance cost | ' | $1.10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Income Taxes [Line Items] | ' | ' | ' |
U.S. income (loss) before income taxes | $5,000,000 | ($4,900,000) | ($4,200,000) |
Foreign income (loss) before income taxes | 500,000 | 100,000 | -600,000 |
Foreign tax expense | 0 | 0 | 0 |
Valuation allowance | 12,537,000 | 12,797,000 | ' |
Net deferred tax assets | 6,466,000 | 13,275,000 | ' |
Total amount of gross unrecognized tax benefits, if recognized that would impact effective tax rate | 700,000 | ' | ' |
Accrued interest and penalties included in long-term tax liability | 100,000 | 200,000 | ' |
Liability decreased relating to unrecognized tax benefits, interest | 44,000 | ' | ' |
Liability decreased relating to unrecognized tax benefits, penalties | 51,000 | ' | ' |
Domestic Tax Authority [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | 10,800,000 | ' | ' |
Net operating loss carryforward, expiration year | '2030 | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Research and development credit carryforward expiration period | '2014 | ' | ' |
Research and development credit carryforward expiration period | '2030 | ' | ' |
Operating Loss Carryforwards | 19,800,000 | ' | ' |
Australia and New Zealand Discontinued Operations [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Valuation allowance | 10,900,000 | ' | ' |
Deferred tax benefit, net | 10,900,000 | ' | ' |
Federal Alternative Minimum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax Credit Carryforward Amount | 3,500,000 | ' | ' |
Research and Development [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax Credit Carryforward Amount | 1,700,000 | ' | ' |
Research and development credit carryforward expiration period | '2025 | ' | ' |
Research and development credit carryforward expiration period | '2032 | ' | ' |
Small Ethanol Producer [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax Credit Carryforward Amount | 2,600,000 | ' | ' |
Tax credit carryforward, expiration year | '2014 | ' | ' |
Valuation allowance | ' | 1,800,000 | ' |
Valuation allowance, amount reduced | 100,000 | ' | ' |
Charitable Contributions [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Research and development credit carryforward expiration period | '2013 | ' | ' |
Research and development credit carryforward expiration period | '2015 | ' | ' |
Valuation allowance | ' | 44,000 | ' |
Valuation allowance, amount reduced | $22,000 | ' | ' |
Charitable contribution deduction limitation as a percentage of taxable income | 10.00% | ' | ' |
Carry forward period allowed | '5 years | ' | ' |
Income_Taxes_Schedule_of_US_In
Income Taxes - Schedule of U.S. Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Current: | ' | ' | ' |
Federal | ($422) | ($162) | $34 |
State | 80 | 3 | 137 |
Current Income Tax Expense (Benefit), Total | -342 | -159 | 171 |
Deferred: | ' | ' | ' |
Federal | 1,829 | 4,582 | 9 |
State | -4 | 383 | 133 |
Deferred income tax expense (benefit) | 1,825 | 4,965 | 142 |
Total | $1,483 | $4,806 | $313 |
Income_Taxes_Schedule_of_Alloc
Income Taxes - Schedule of Allocable Comprehensive Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income before taxes | $1,483 | $4,806 | $313 |
Comprehensive income (loss) | 4,887 | -4,924 | 3,856 |
Comprehensive tax expense (benefit) | $6,370 | ($118) | $4,169 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Tax to Actual Provision (Benefit) for Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Statutory tax on income | $1,921 | ($1,666) | ($1,682) |
State taxes, net of federal benefit | 94 | 219 | 52 |
Non-deductible expenses related to preferred stock | ' | 4,547 | 2,687 |
Research credit | -189 | -73 | -195 |
Ethanol credit | ' | ' | -975 |
Foreign taxes | -183 | -38 | 200 |
Stock option exercises/expirations | 376 | ' | ' |
Prior year true up | -265 | 95 | 79 |
Unrecognized tax benefits | -359 | -165 | 67 |
Valuation allowance | -104 | 1,787 | ' |
Other | 192 | 100 | 80 |
Total | $1,483 | $4,806 | $313 |
Income_Taxes_Schedule_of_Signi
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Alternative minimum tax credit | $3,473 | $3,354 |
Postretirement benefits | 11,920 | 18,060 |
Provisions for accrued expenses | 2,791 | 2,908 |
Stock-based compensation | 2,453 | 2,420 |
Net operating loss carryforward | 4,575 | 7,469 |
Tax credit carryforwards | 4,373 | 4,152 |
NOL carryforward-foreign | 10,853 | 11,010 |
Hedging | 525 | ' |
Other | 2,092 | 2,025 |
Total deferred tax assets gross | 43,055 | 51,398 |
Less - valuation allowance | -12,537 | -12,797 |
Total deferred tax assets | 30,518 | 38,601 |
Deferred tax liabilities: | ' | ' |
Depreciation | 22,296 | 21,762 |
Hedging | ' | 1,004 |
Other | 1,756 | 2,560 |
Total deferred tax liabilities | 24,052 | 25,326 |
Net deferred tax assets | 6,466 | 13,275 |
Recognized as: | ' | ' |
Other current assets | 1,479 | 167 |
Deferred tax asset | 4,987 | 13,108 |
Total net deferred tax assets | $6,466 | $13,275 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized tax benefits at beginning of year | $1,058 | $1,220 |
Additions for tax positions related to prior years | 134 | 112 |
Additions for tax positions related to current year | 90 | 62 |
Reductions due to lapse of applicable statute of limitations | -576 | -336 |
Unrecognized tax benefits at end of year | $706 | $1,058 |
Recovered_Sheet9
Earnings (Loss) Per Common Share - Reconciliation of Income from Operations Applicable to Common Shares and Computation of Diluted Weighted Average Shares Outstanding (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ($949) | $2,058 | $1,191 | $1,707 | ($4,366) | ($5,452) | ($340) | $592 | $4,007 | ($9,566) | ($5,117) |
Less: Allocation to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -11 | ' | ' |
Net income (loss) applicable to common shares and equivalents | ' | ' | ' | ' | ' | ' | ' | ' | $3,996 | ($9,566) | ($5,117) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares and equivalents outstanding, basic | ' | ' | ' | ' | ' | ' | ' | ' | 12,369,487 | 12,293,749 | 12,250,914 |
Dilutive stock options and awards | ' | ' | ' | ' | ' | ' | ' | ' | 249,000 | ' | ' |
Weighted average common shares and equivalents outstanding, diluted | ' | ' | ' | ' | ' | ' | ' | ' | 12,618,158 | 12,293,749 | 12,250,914 |
Recovered_Sheet10
Earnings (Loss) Per Common Share - Additional Information (Detail) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2012 | Aug. 31, 2011 | 31-May-12 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Series B Voting Convertible Preferred Stock [Member] | Convertible Common Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | ||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares included in weighted average common shares and equivalents computation of basic earnings per share | ' | 100,000 | ' | ' | ' | ' | ' | ' |
Shares converted from Series B Preferred Stock into company's common stock | 1,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' |
Antidilutive weighted-average restricted stock awards/options excluded from the calculation of diluted earnings (loss) per share | ' | ' | ' | 57,443 | 98,158 | 896,354 | 1,648,704 | 1,325,945 |
Carolina_Starches_Acquisition_1
Carolina Starches Acquisition - Additional Information (Detail) (Carolina Starches, LLC [Member], USD $) | 1 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2012 | Aug. 31, 2013 |
Carolina Starches, LLC [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Date of acquisition agreement | ' | 11-Jan-12 |
Purchase price | $8.50 | ' |
Carolina_Starches_Acquisition_2
Carolina Starches Acquisition - Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | ' |
Goodwill | $7,978 | $7,978 |
Carolina Starches, LLC [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Property, plant and equipment | 3,947 | ' |
Working capital | 4,225 | ' |
Other assets | 141 | ' |
Intangible assets | 290 | ' |
Goodwill | 81 | ' |
Non-current liabilities | -184 | ' |
Total purchase price | $8,500 | ' |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Segment | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Sales | $117,427 | $121,719 | $110,082 | $118,022 | $110,223 | $111,283 | $103,477 | $108,168 | $467,250 | $433,151 | $373,763 |
Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 356,016 | 330,607 | 291,523 |
Carolina Starches, LLC [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | $26,900 | ' | ' |
Segment_Reporting_Segment_Wide
Segment Reporting - Segment Wide Reporting Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $117,427 | $121,719 | $110,082 | $118,022 | $110,223 | $111,283 | $103,477 | $108,168 | $467,250 | $433,151 | $373,763 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 13,326 | 14,127 | 14,415 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 9,404 | 10,059 | 4,445 |
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | 14,199 | 14,146 | 8,295 |
Total assets | 224,618 | ' | ' | ' | 236,179 | ' | ' | ' | 224,618 | 236,179 | ' |
Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 356,016 | 330,607 | 291,523 |
Food Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 111,234 | 102,544 | 82,240 |
Industrial Starch [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 177,382 | 156,945 | 127,471 |
Ethanol [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 96,852 | 101,874 | 105,730 |
By-Products [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 81,782 | 71,788 | 58,322 |
Operating Segments [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 10,933 | 10,879 | 10,812 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | -3,238 | -928 | -4,718 |
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | 8,997 | 8,700 | 6,625 |
Total assets | 133,120 | ' | ' | ' | 143,039 | ' | ' | ' | 133,120 | 143,039 | ' |
Operating Segments [Member] | Food Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2,061 | 1,989 | 2,110 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 23,265 | 21,591 | 18,037 |
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | 5,202 | 5,446 | 1,663 |
Total assets | 68,550 | ' | ' | ' | 63,949 | ' | ' | ' | 68,550 | 63,949 | ' |
Corporate, Non-Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 332 | 1,259 | 1,493 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | -10,623 | -10,604 | -8,874 |
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Total assets | $22,948 | ' | ' | ' | $29,191 | ' | ' | ' | $22,948 | $29,191 | ' |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation of Income (Loss) from Operations for Segments to Income (Loss) Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Segment Reporting [Abstract] | ' | ' | ' |
Income from operations | $9,404 | $10,059 | $4,445 |
Interest expense | -3,989 | -8,633 | -9,364 |
Other non-operating income (expense) | 75 | -6,186 | 115 |
Income (loss) before income taxes | $5,490 | ($4,760) | ($4,804) |
Segment_Reporting_Sales_Attrib
Segment Reporting - Sales, Attributed to Area to Which Product was Shipped (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $117,427 | $121,719 | $110,082 | $118,022 | $110,223 | $111,283 | $103,477 | $108,168 | $467,250 | $433,151 | $373,763 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 429,957 | 400,070 | 346,893 |
Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 8,662 | 5,653 | 4,027 |
Mexico [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 11,419 | 12,761 | 9,221 |
Columbia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 7,379 | 6,678 | 6,802 |
Japan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 5,112 | 4,380 | 3,434 |
Other Country [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 4,721 | 3,609 | 3,386 |
Non-United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | $37,293 | $33,081 | $26,870 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $117,427 | $121,719 | $110,082 | $118,022 | $110,223 | $111,283 | $103,477 | $108,168 | $467,250 | $433,151 | $373,763 |
Cost of sales | 109,830 | 108,528 | 99,081 | 104,764 | 98,976 | 99,829 | 94,076 | 96,360 | 422,203 | 389,241 | 339,928 |
Gross margin | 7,597 | 13,191 | 11,001 | 13,258 | 11,247 | 11,454 | 9,401 | 11,808 | 45,047 | 43,910 | 33,835 |
Net income (loss) | ($949) | $2,058 | $1,191 | $1,707 | ($4,366) | ($5,452) | ($340) | $592 | $4,007 | ($9,566) | ($5,117) |
Earnings (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | ($0.08) | $0.17 | $0.10 | $0.14 | ($0.35) | ($0.44) | ($0.03) | $0.05 | $0.32 | ($0.78) | ($0.42) |
Diluted | ($0.08) | $0.16 | $0.10 | $0.14 | ($0.35) | ($0.44) | ($0.03) | $0.05 | $0.32 | ($0.78) | ($0.42) |
Dividends declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) - Additional Information (Detail) (Series A Preferred Stock [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2012 | Aug. 31, 2012 |
Series A Preferred Stock [Member] | ' | ' |
Quarterly Financial Data [Line Items] | ' | ' |
Stock redeemed | $28.90 | ' |
Original issue price of preferred stock | 23.5 | 40 |
Accrued dividends | 5.4 | 8.9 |
Accelerated discount accretion | 3.2 | 5.5 |
Amortization of issuance costs | $0.60 | ' |
Legal_Proceedings_and_Continge1
Legal Proceedings and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2013 | Apr. 30, 2012 | 31-May-13 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2010 | |
Defendant | Patents | Penford Products [Member] | Carolina Starches, LLC [Member] | Australia and New Zealand Discontinued Operations [Member] | Australia and New Zealand Discontinued Operations [Member] | |||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents under allegation of patent infringement | ' | 2 | ' | ' | ' | ' | ' | ' |
Amount of recovery sought in complaint | ' | ' | ' | ' | $778,000 | $216,000 | ' | ' |
Number of defendant | 2 | ' | ' | ' | ' | ' | ' | ' |
Name of defendants | 'Penford Products and Carolina Starches, LLC | ' | ' | ' | ' | ' | ' | ' |
Name of plaintiff | 'Pirinate Consulting Group, LLC | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement receivable amount | ' | ' | 3,400,000 | ' | ' | ' | ' | ' |
Litigation settlement receivable net of litigation expenses | ' | ' | 2,100,000 | 2,106,000 | ' | ' | ' | ' |
Litigation settlement expenses | ' | ' | 300,000 | ' | ' | ' | ' | ' |
Amount of proceeds in escrow | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Escrowed payments received | ' | ' | ' | ' | ' | ' | 1,225,000 | ' |
Amount of claim filed by the purchaser of Company's Lane cave | ' | ' | ' | ' | ' | ' | $901,000 | ' |