Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Aug. 31, 2014 | Nov. 11, 2014 | Feb. 28, 2014 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Aug-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
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 | ' | 12,788,527 | ' |
Entity Public Float | ' | ' | $160.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $189 | $221 |
Trade accounts receivable, net | 42,035 | 43,432 |
Inventories | 41,751 | 33,992 |
Prepaid expenses | 3,857 | 3,100 |
Material and supplies | 5,541 | 4,634 |
Other | 5,071 | 4,735 |
Total current assets | 98,444 | 90,114 |
Property, plant and equipment, net | 114,804 | 112,141 |
Restricted cash value of life insurance | 7,803 | 7,837 |
Deferred tax assets | ' | 4,987 |
Other assets | 1,991 | 1,248 |
Other intangible assets, net | 6,019 | 313 |
Goodwill, net | 10,129 | 7,978 |
Total assets | 239,190 | 224,618 |
Current liabilities: | ' | ' |
Cash overdraft, net | 6,146 | 5,072 |
Current portion of long-term debt and capital lease obligations | 184 | 231 |
Accounts payable | 21,452 | 20,656 |
Short-term financing arrangements | 1,454 | 1,474 |
Accrued liabilities | 9,779 | 8,207 |
Total current liabilities | 39,015 | 35,640 |
Long-term debt and capital lease obligations | 76,665 | 72,739 |
Other postretirement benefits | 18,726 | 16,596 |
Pension benefit liability | 5,752 | 10,552 |
Other liabilities | 6,899 | 6,198 |
Total liabilities | 147,057 | 141,725 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, par value $1.00 per share, authorized 29,000 shares, issued 14,717 shares in 2014 and 14,479 shares in 2013, including treasury shares | 14,544 | 14,454 |
Additional paid-in capital | 106,696 | 105,166 |
Retained earnings | 11,402 | 3,649 |
Treasury stock, at cost, 1,981 shares | -32,757 | -32,757 |
Accumulated other comprehensive loss | -7,752 | -7,619 |
Total shareholders' equity | 92,133 | 82,893 |
Total liabilities and shareholders' equity | $239,190 | $224,618 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 29,000,000 | 29,000,000 |
Common stock, shares issued | 14,717,000 | 14,479,000 |
Treasury stock, shares | 1,981,000 | 1,981,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Sales | $443,873 | $467,250 | $433,151 |
Cost of sales | 389,566 | 422,203 | 389,241 |
Gross margin | 54,307 | 45,047 | 43,910 |
Operating expenses | 33,407 | 29,773 | 28,013 |
Research and development expenses | 5,609 | 5,870 | 5,838 |
Income from operations | 15,291 | 9,404 | 10,059 |
Interest expense | -3,583 | -3,989 | -8,633 |
Other non-operating income (expense), net | 766 | 75 | -6,186 |
Income (loss) before income taxes | 12,474 | 5,490 | -4,760 |
Income tax expense | 4,721 | 1,483 | 4,806 |
Net income (loss) | $7,753 | $4,007 | ($9,566) |
Weighted average common shares and equivalents outstanding: | ' | ' | ' |
Basic | 12,514,869 | 12,369,487 | 12,293,749 |
Diluted | 12,857,580 | 12,618,158 | 12,293,749 |
Earnings (loss) per common share: | ' | ' | ' |
Basic | $0.62 | $0.32 | ($0.78) |
Diluted | $0.60 | $0.32 | ($0.78) |
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, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $7,753 | $4,007 | ($9,566) |
Other comprehensive income (loss): | ' | ' | ' |
Change in fair value of derivatives, net of tax benefit (expense) of $5,409, $(457) and $(1,419 | -8,676 | 747 | 2,315 |
Loss (gain) from derivative transactions reclassified into earnings from other comprehensive income, net of tax benefit (expense) of $4,682, $(1,987) and $(863) | 7,510 | -3,241 | -1,408 |
Actuarial gain (loss) on postretirement liabilities, net of tax benefit (expense) of $(478), $(5,547) and $5,722 | 767 | 9,049 | -9,336 |
Loss from postretirement liabilities reclassified to earnings, net of tax benefit of $166, $869, and $242 | 266 | 1,419 | 395 |
Other comprehensive income (loss) | -133 | 7,974 | -8,034 |
Total comprehensive income (loss) | $7,620 | $11,981 | ($17,600) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Change in fair value of derivatives, tax benefit (expense) | $5,409 | ($457) | ($1,419) |
Loss (gain) from derivative transactions reclassified into earnings from other comprehensive income, tax benefit (expense) | 4,682 | -1,987 | -863 |
Actuarial gain (loss) on post-retirement liabilities, tax benefit (expense) | -478 | -5,547 | 5,722 |
Loss from postretirement liabilities, tax benefit | $166 | $869 | $242 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Operating activities: | ' | ' | ' |
Net income (loss) | $7,753 | $4,007 | ($9,566) |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ' | ' | ' |
Depreciation and amortization | 11,814 | 13,326 | 14,127 |
Loss on redemption of Series A Preferred Stock | ' | ' | 6,599 |
Stock-based compensation | 1,344 | 1,404 | 1,387 |
Loss on sale and disposal of assets | 103 | 22 | 26 |
Loss on early extinguishment of debt | 265 | ' | ' |
Deferred income tax expense | 4,713 | 1,825 | 4,965 |
Non-cash change in asset retirement obligations | -304 | ' | ' |
Non-cash loss (gain) on hedging transactions | 733 | 3,543 | -176 |
Non-cash gain on loan forgiveness | -1,000 | ' | ' |
Excess tax benefit from stock-based compensation | -152 | -16 | ' |
Other | ' | ' | 20 |
Change in operating assets and liabilities: | ' | ' | ' |
Trade accounts receivable, net | 2,601 | -7,063 | -4,450 |
Other receivables | -118 | 2,554 | -744 |
Inventories | -6,390 | 6,137 | -6,460 |
Decrease (increase) in margin accounts | -1,388 | -5,088 | 2,285 |
Prepaid expenses | -718 | -274 | -536 |
Accounts payable and accrued liabilities | 694 | 1,808 | 2,105 |
Pension and other postretirement benefit contributions | -3,257 | -1,687 | -4,574 |
Pension and other postretirement benefit plan costs | 2,276 | 5,107 | 3,386 |
Payment of interest on Series A Preferred Stock, net | ' | ' | -5,311 |
Other | -915 | -956 | -523 |
Net cash flow provided by operating activities | 18,054 | 24,649 | 2,560 |
Investing activities: | ' | ' | ' |
Acquisitions of property, plant and equipment | -12,994 | -14,199 | -14,146 |
Acquisition of Gum Technology | -9,086 | ' | ' |
Acquisition of Carolina Starches, net of cash acquired | ' | ' | -8,347 |
Settlement of ethanol construction claim | ' | 2,106 | ' |
Other | -245 | 31 | 75 |
Net cash used in investing activities | -22,325 | -12,062 | -22,418 |
Financing activities: | ' | ' | ' |
Proceeds from revolving line of credit | 29,150 | 22,200 | 88,706 |
Payments on revolving line of credit | -24,656 | -33,300 | -28,200 |
Payments on long-term debt | -367 | -200 | -200 |
Redemption of Series A Preferred Stock | ' | ' | -40,000 |
Payments on capital lease obligations | -160 | -280 | -249 |
Payment of loan fees | -1,210 | ' | -973 |
Proceeds from financing arrangements | 1,992 | 2,019 | 2,255 |
Payments on financing arrangements | -2,012 | -1,438 | -2,050 |
Exercise of stock options | 276 | 730 | ' |
Excess tax benefit from stock-based compensation | 152 | 16 | ' |
Increase (decrease) in cash overdraft | 1,074 | -2,265 | 434 |
Other | ' | -2 | 8 |
Net cash provided by (used in) financing activities | 4,239 | -12,520 | 19,731 |
Increase (decrease) in cash and cash equivalents | -32 | 67 | -127 |
Cash and cash equivalents, beginning of year | 221 | 154 | 281 |
Cash and cash equivalents, end of year | 189 | 221 | 154 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Interest | 3,075 | 3,623 | 12,481 |
Income taxes paid, net | 185 | 125 | 260 |
Noncash investing and financing activities: | ' | ' | ' |
Capital lease obligations incurred for certain equipment leases | $779 | $88 | $152 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | ||||||
Balance, beginning of year at Aug. 31, 2011 | ' | $13,243 | $100 | $103,070 | $9,368 | ($7,559) |
Treasury stock | -32,757 | ' | ' | ' | ' | ' |
Tax deficiency on stock options 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 | ' | ' | ' | ' | ' |
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 | ' | ' |
Total shareholders' equity | 82,893 | ' | ' | ' | ' | ' |
Balance, end of year at Aug. 31, 2013 | ' | 14,454 | ' | 105,166 | 3,649 | -7,619 |
Treasury stock | -32,757 | ' | ' | ' | ' | ' |
Change in fair value of derivatives, net of tax | -8,676 | ' | ' | ' | ' | -8,676 |
Net income (loss) | 7,753 | ' | ' | ' | 7,753 | ' |
Stock based compensation | ' | ' | ' | 1,344 | ' | ' |
Loss (gain) from derivative transactions reclassified into earnings from other comprehensive income, net of tax | 7,510 | ' | ' | ' | ' | 7,510 |
Exercise of stock options | ' | 65 | ' | 211 | ' | ' |
Net (increase) decrease in postretirement liabilities, net of tax | ' | ' | ' | ' | ' | 1,033 |
Issuance of restricted stock, net | ' | 25 | ' | -25 | ' | ' |
Total shareholders' equity | 92,133 | ' | ' | ' | ' | ' |
Balance, end of year at Aug. 31, 2014 | ' | $14,544 | ' | $106,696 | $11,402 | ($7,752) |
Business
Business | 12 Months Ended |
Aug. 31, 2014 | |
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 and gums 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 has provided an important source of raw material to support continued growth in the Food Ingredients business and has broadened the Company’s portfolio of specialty modified industrial starches. See Note 17. | |
In March 2014, the Company completed the acquisition of Gum Technology, an Arizona close corporation (“Gum Technology”), for a purchase price of $9.9 million, subject to certain adjustments. Gum Technology blends and distributes gums and hydrocolloids and customizes stabilizers to meet customers’ product formulation needs. The acquisition of this business will broaden the Company’s Food Ingredients portfolio of functional and specialty ingredient systems within its Food Ingredients segment. See Note 17. | |
On October 14, 2014, the Company and Ingredion Incorporated (“Ingredion”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Ingredion will acquire the Company in an all-cash transaction valued at approximately $340.0 million. Upon closing of the merger, each outstanding share of the Company’s common stock will be converted into the right to receive $19.00 in cash. The merger is subject to certain closing conditions and covenants and provides certain termination rights for the parties to the Merger Agreement. See Note 21. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
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. Transactions between segments are at cost plus a return on assets. 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; the determination of potential write downs for lower-of-cost-or-market inventory evaluations; the reserve for obsolete inventory; 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, plant and equipment; the assessment of a potential impairment of goodwill, indefinite-lived intangible assets 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. | |||||||||||||||||
Change in Estimate | |||||||||||||||||
During the third quarter of fiscal year 2014, the Company changed its estimates of useful lives of certain machinery and equipment used by the Industrial Ingredients segment to better match depreciation expense of these assets with the periods in which these assets are expected to generate revenue. The new estimated useful lives were established based on manufacturing engineering data and external benchmark data and were generally increased as compared to the previous estimates. The Company accounted for this as a prospective change in accounting estimate as of May 1, 2014, thereby impacting the quarter in which the change occurred and future periods. The change in the estimate lowered depreciation expense as compared to the amount that would have been recorded using the historical estimated useful lives. The effect of this change on net income and diluted earnings per share for the year ended August 31, 2014 was $899,000 and $0.07 per share, respectively. | |||||||||||||||||
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 | |||||||||||||||||
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 2014, 2013 and 2012 was 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: | |||||||||||||||||
2014 | $ | 280 | $ | 115 | $ | (100 | ) | $ | 295 | ||||||||
2013 | $ | 78 | $ | 241 | $ | (39 | ) | $ | 280 | ||||||||
2012 | $ | 1,305 | $ | (42 | ) | $ | (1,185 | ) | $ | 78 | |||||||
In fiscal 2012, accounts receivable due from two paper industry customers were written off when they were deemed uncollectible. | |||||||||||||||||
Concentrations of Risk | |||||||||||||||||
Approximately 36%, 38% and 36% of the Company’s sales in fiscal 2014, 2013 and 2012, respectively, were made to customers who operate in the paper and packaging industries. These industries suffered an economic downturn, which has resulted in the closure of a number of mills. | |||||||||||||||||
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 22%, 21% and 24% of the Company’s net sales for fiscal years 2014, 2013 and 2012, respectively. Eco-Energy, Inc., a marketer and distributor of biofuels in the United States and Canada, is a customer of the Company’s Industrial Ingredients business. | |||||||||||||||||
At August 31, 2014, Penford had 443 employees, of which approximately 34% were members of a trade union. The collective bargaining agreement covering the Cedar Rapids-based manufacturing workforce expires in August 2015. The Company is currently engaged in labor contract negotiations with a new bargaining unit consisting of approximately 15 operating employees at its Richland, WA plant. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or net realizable value. Costs of agricultural raw materials are generally stated at weighted-average cost. Costs of other raw materials and finished goods are determined using actual costs on a first-in first-out method. Costs for materials and supplies, which constitute spare parts for the Company’s property, plant and equipment, are stated at weighted-average cost. 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 thirty years and real estate between twelve to forty-six years. Depreciation, which includes depreciation of assets under capital leases, of $11.2 million, $12.8 million and $12.7 million was recorded in fiscal years 2014, 2013 and 2012, 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 2014, 2013 and 2012, the Company capitalized $2,000, $107,000 and $48,000, respectively, in interest costs. | |||||||||||||||||
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. No impairment charges were recorded in fiscal years 2014, 2013 or 2012. | |||||||||||||||||
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. No goodwill impairment charges were recorded in fiscal years 2014, 2013 or 2012. | |||||||||||||||||
Indefinite-lived assets consist of trade names and brands acquired in the acquisition of Gum Technology discussed in Note 17. These assets are tested annually for impairment as of June 1. Definite-lived intangible assets are amortized using the straight-line method over their expected economic useful lives. | |||||||||||||||||
Accrued Liabilities | |||||||||||||||||
Components of accrued liabilities were as follows (dollars in thousands): | |||||||||||||||||
August 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Employee-related costs | $ | 5,271 | $ | 3,931 | |||||||||||||
Other | 4,508 | 4,276 | |||||||||||||||
Accrued liabilities | $ | 9,779 | $ | 8,207 | |||||||||||||
Employee-related costs included 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 title to the goods 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. | |||||||||||||||||
Export Sales | |||||||||||||||||
Export sales accounted for approximately 8.0%, 8.0% and 7.6% of consolidated sales in fiscal years ended August 31, 2014, 2013 and 2012, 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 sales. 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 sales 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 $5.6 million, $5.9 million and $5.8 million in fiscal 2014, 2013 and 2012, 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 10 for further detail. Shares issued pursuant to stock-based compensation agreements are issued from authorized but unissued shares. | |||||||||||||||||
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. | |||||||||||||||||
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 2014, 2013 and 2012 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. | |||||||||||||||||
Accounting Pronouncements Adopted | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“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 did not change the current requirements for reporting net income or other comprehensive income. The Company adopted this guidance effective September 1, 2013, and the required disclosure is presented in Note 8. | |||||||||||||||||
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 Company adopted this guidance effective September 1, 2013, and the required disclosure is presented in Note 13. | |||||||||||||||||
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. The Company adopted this accounting presentation effective September 1, 2013. The Company complied with the prescribed accounting presentation in prior periods; therefore, the adoption of this guidance had no impact on the presentation of the Company’s consolidated financial statements. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
On May 28, 2014, the FASB issued guidance that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The guidance will replace most existing revenue recognition guidance when it becomes effective. The new standard is effective for the Company on September 1, 2017, and early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that this new guidance will have on its consolidated financial statements and related disclosures. The Company has not selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Inventories
Inventories | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 3 – Inventories | |||||||||
Components of inventory were as follows: | |||||||||
August 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Raw materials | $ | 10,069 | $ | 10,381 | |||||
Work in progress | 1,322 | 1,913 | |||||||
Finished goods | 30,360 | 21,698 | |||||||
Total inventories | $ | 41,751 | $ | 33,992 | |||||
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, when the futures contracts qualify for hedge accounting, they are designated as hedges. See Note 13. General and administrative expenses are not capitalized as a component of inventory. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment, Net | ' | ||||||||
Note 4 – Property, Plant and Equipment, Net | |||||||||
Components of property, plant and equipment were as follows: | |||||||||
August 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Land and land improvements | $ | 12,512 | $ | 11,881 | |||||
Plant and equipment | 369,224 | 359,909 | |||||||
Construction in progress | 7,603 | 5,255 | |||||||
389,339 | 377,045 | ||||||||
Accumulated depreciation | (274,535 | ) | (264,904 | ) | |||||
Property, plant and equipment, net | $ | 114,804 | $ | 112,141 | |||||
The above table included approximately $1.3 million and $0.8 million of net property, plant and equipment under capital leases for fiscal years 2014 and 2013, respectively. At August 31, 2014 and 2013, the Company had approximately $0.9 million and $0.7 million, respectively, of payables related to property, plant and equipment. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
Note 5 – Goodwill and Other Intangible Assets | |||||||||||||||||
The Company’s goodwill of $10.1 million and $8.0 million at August 31, 2014 and 2013, respectively, relates to the Company’s Food Ingredients reporting unit. See Note 17 for goodwill added in fiscal 2014 as a result of the acquisition of the net assets of Gum Technology. The Company completed its evaluation of the carrying value of goodwill as of June 1, 2014 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, 2014, 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, 2014. There were no goodwill impairment losses at August 31, 2014 and 2013. | |||||||||||||||||
Year Ended August 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Goodwill, beginning of year | $ | 7,978 | $ | 7,978 | |||||||||||||
Acquisition of Gum Technology | 2,151 | — | |||||||||||||||
Goodwill, end of year | $ | 10,129 | $ | 7,978 | |||||||||||||
Penford’s intangible assets consist of patents, customer lists and relationships, trade names/brand portfolio and non-compete agreements. Patents are being amortized over the weighted-average remaining amortization period of five years as of August 31, 2014. The fair value of customer relationships and non-compete agreements from the acquisition of Gum Technology are being amortized over their estimated useful lives of 13 years and 5 years, respectively. There are no residual values associated with intangible assets subject to amortization. The trade names/brand portfolio of $2.7 million from the acquisition of Gum Technology has an indefinite life and is not subject to amortization. This indefinite-lived asset was tested for impairment as of June 1, 2014, and there was no indication of impairment. There was no change in that conclusion as of August 31, 2014. The carrying amount and accumulated amortization of intangible assets were as follows: | |||||||||||||||||
August 31, 2014 | August 31, 2013 | ||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Intangible assets: | |||||||||||||||||
Patents and other | $ | 1,870 | $ | 1,572 | $ | 1,748 | $ | 1,538 | |||||||||
Customer lists and relationships | 3,060 | 296 | 190 | 154 | |||||||||||||
Trade names/brand portfolio | 2,910 | 35 | — | — | |||||||||||||
Non-compete agreements | 190 | 108 | 100 | 33 | |||||||||||||
Other intangible assets | $ | 8,030 | $ | 2,011 | $ | 2,038 | $ | 1,725 | |||||||||
Amortization expense related to intangible assets was $0.3 million, $0.1 million and $0.1 million in fiscal years 2014, 2013 and 2012, respectively. The estimated aggregate annual amortization expense for intangibles is $0.3 million for the next five fiscal years, 2015 through 2019. |
Debt
Debt | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Note 6 – Debt | |||||||||
August 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Secured credit agreements – revolving loans, 3.16% weighted-average interest rate at August 31, 2014 | $ | 76,000 | $ | 71,506 | |||||
Iowa Department of Economic Development loans | — | 1,233 | |||||||
Capital lease obligations | 849 | 231 | |||||||
76,849 | 72,970 | ||||||||
Less: current portion of long-term debt and capital lease obligations | 184 | 231 | |||||||
Long-term debt and capital lease obligations | $ | 76,665 | $ | 72,739 | |||||
In July 2012, in connection with the redemption of $40 million of Series A Preferred Stock, the Company refinanced its obligations then outstanding. The Company entered into a $130 million Fourth Amended and Restated Credit Agreement (the “2012 Agreement”) with a group of lenders with Bank of Montreal as Administrative Agent. | |||||||||
On August 1, 2014, the Company refinanced its obligations then outstanding under the 2012 Agreement and entered into a $145 million Credit Agreement (the “2014 Agreement”) with the following banks: Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland” New York Branch (“Rabobank”); KeyBank National Association; JPMorgan Chase Bank N.A.; First Midwest Bank; the Private Bank and Trust Company; GreenStone Farm Credit Services, ACA; Branch Banking and Trust Company; AgStar Financial Services PCA and Farm Credit Services of America, PCA. Under the 2014 Agreement, the Company may borrow $145 million in revolving lines of credit. The lenders’ revolving credit loan commitment may be increased under certain conditions. Under the 2014 Agreement, there are no scheduled principal payments prior to maturity on August 1, 2019. | |||||||||
On August 31, 2014, the Company had $76.0 million outstanding under the 2014 Agreement, which is subject to variable interest rates. Interest rates under the 2014 Agreement are based on either a base rate or a eurodollar rate, depending on the Company’s selection of available borrowing options, plus the applicable margin. The applicable margin varies from 1% to 2.5% for base rate loans and from 2% to 3.5% for eurodollar loans, depending on the Company’s Total Leverage Ratio, as defined in the 2014 Agreement. | |||||||||
The 2014 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 2014 Agreement) shall not exceed 5.00 through August 31, 2015; 4.50 from November 30, 2015 through August 31, 2016; 4.25 from November 30, 2016 through August 31, 2017; and 3.75 thereafter. In addition, the Company must maintain a Fixed Charge Coverage Ratio, as defined in the 2014 Agreement, of not less than 1.25. Beginning in fiscal year 2015, annual capital expenditures are restricted to $25 million. Maximum annual capital expenditures may be increased to $35 million if the Total Leverage Ratio is less than 2.00 for the last two fiscal quarters of the year. To the extent that annual capital expenditures are less than the maximum, the difference between the actual and maximum capital expenditures will be added to the capital expenditures permitted in the immediately succeeding fiscal year. The Company’s obligations under the 2014 Agreement are secured by substantially all of the Company’s assets. The Company was in compliance with the covenants in the 2014 Agreement as of August 31, 2014. | |||||||||
Pursuant to the 2014 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, 2014, the Company was not permitted to pay dividends. | |||||||||
Also on August 1, 2014, the Company entered into a $25 million Delayed Draw Term Loan Credit Agreement (the “Term Loan Agreement”) with Rabobank. The Term Loan Agreement provides the Company with a term loan facility in an aggregate principal amount up to $25 million. The term loan facility may be utilized in a series of up to six drawings until the 18-month anniversary of the date of the Term Loan Agreement. Any unused portion of the lender’s commitment to make term loans under this facility will expire on the 18-month anniversary of the closing date. The maturity date for loans under the Term Loan Agreement is July 31, 2020, and there are no scheduled principal payments due prior to maturity. The Company’s obligations under the Term Loan Agreement are secured on a second-priority basis by substantially all of the Company’s assets. There were no borrowings outstanding under the Term Loan Agreement as of August 31, 2014. | |||||||||
The Term Loan 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 Term Loan Agreement) shall not exceed 5.50 through August 31, 2015; 5.00 from November 30, 2015 through August 31, 2016; 4.75 from November 30, 2016 through August 31, 2017; and 4.25 thereafter. In addition, the Company must maintain a Fixed Charge Coverage Ratio, as defined in the Term Loan Agreement, of not less than 1.10. | |||||||||
In 2009, the Iowa Department of Economic Development (“IDED”) provided two five-year non-interest bearing loans to the Company with terms as follows: (1) a $1.0 million term loan to be repaid in 60 equal monthly payments of $16,667 beginning December 1, 2009; and (2) a $1.0 million loan, which was forgivable if the Company maintained certain levels of employment at the Cedar Rapids plant. During the third quarter of fiscal 2014, the Company repaid the outstanding balance on the $1.0 million term loan. In May 2014, the Company was notified by IDED that its obligations to maintain certain levels of employment at the Cedar Rapids plant had been met and that repayment of the $1.0 million forgivable loan had been waived. The Company recorded the loan forgiveness of $1.0 million as non-operating income. | |||||||||
The maturities of debt existing at August 31, 2014 for the fiscal years beginning with fiscal 2015 were as follows (dollars in thousands): | |||||||||
2015 | $ | 184 | |||||||
2016 | 209 | ||||||||
2017 | 225 | ||||||||
2018 | 221 | ||||||||
2019 and thereafter | 76,010 | ||||||||
$ | 76,849 | ||||||||
Included in the Company’s long-term debt at August 31, 2014 were $0.8 million of capital lease obligations, of which $0.2 million was considered the current portion of long-term debt. See Note 9. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
Note 7 – Stockholders’ Equity | |||||||||||||
Common Stock | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Common shares outstanding | |||||||||||||
Balance, beginning of year | 14,454,181 | 14,280,718 | 13,243,385 | ||||||||||
Series B preferred stock converted to common shares | — | — | 1,000,000 | ||||||||||
Exercise of stock options | 64,824 | 121,226 | — | ||||||||||
Issuance of restricted stock, net | 24,489 | 52,237 | 37,333 | ||||||||||
Balance, end of year | 14,543,494 | 14,454,181 | 14,280,718 | ||||||||||
Common stock at August 31, 2014 and 2013 did not include 173,060 and 24,489 shares, respectively, of unvested restricted shares. There were no unvested restricted shares at August 31, 2012. | |||||||||||||
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, 2014 | |||||||||||||||
Equity [Abstract] | ' | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||
Note 8 – 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) | Total | ||||||||||||
Gains (Losses) | on | Accumulated | |||||||||||||
on Cash Flow | Postretirement | Other | |||||||||||||
Hedging | Obligations | Comprehensive | |||||||||||||
Instruments | Loss | ||||||||||||||
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 | ) | |||||||||
Other comprehensive income (loss), net of taxes | (1,166 | ) | 1,033 | (133 | ) | ||||||||||
Balance at August 31, 2014 | $ | (2,022 | ) | $ | (5,730 | ) | $ | (7,752 | ) | ||||||
Year Ended August 31, 2014 | |||||||||||||||
(In thousands) | Location of Expense | Before Tax | Tax | Net of Tax | |||||||||||
(Income) Recognized in | Amount | Amount | |||||||||||||
Net Earnings | |||||||||||||||
Pension and other postretirement benefit plans: | |||||||||||||||
Amortization of actuarial loss (gain) | Cost of sales | $ | 263 | $ | (101 | ) | $ | 162 | |||||||
Amortization of actuarial loss (gain) | Operating/R&D | 88 | (34 | ) | 54 | ||||||||||
expenses | |||||||||||||||
Amortization of prior service cost | Cost of sales | 45 | (17 | ) | 28 | ||||||||||
Amortization of prior service cost | Operating/R&D | 36 | (14 | ) | 22 | ||||||||||
expenses | |||||||||||||||
Total reclassification adjustments | 432 | (166 | ) | 266 | |||||||||||
Derivatives accounted for as hedges | Cost of sales | 12,192 | (4,682 | ) | 7,510 | ||||||||||
Total reclassifications into income | $ | 12,624 | $ | (4,848 | ) | $ | 7,776 | ||||||||
Leases
Leases | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Leases [Abstract] | ' | ||||||||
Leases | ' | ||||||||
Note 9 – 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 2014, 2013 and 2012, rental expense under operating leases was $6.4 million, $6.3 million and $6.0 million, respectively. Future minimum lease payments for fiscal years beginning with fiscal year 2015 for noncancelable operating leases and capital leases having initial lease terms of more than one year were as follows (dollars in thousands): | |||||||||
Capital | Operating Leases | ||||||||
Leases | Minimum Lease | ||||||||
Payments | |||||||||
2015 | $ | 292 | $ | 5,928 | |||||
2016 | 290 | 4,690 | |||||||
2017 | 275 | 3,605 | |||||||
2018 | 239 | 2,737 | |||||||
2019 | 4 | 2,161 | |||||||
Thereafter | 7 | 8,158 | |||||||
Total minimum lease payments | 1,107 | $ | 27,279 | ||||||
Less: amounts representing interest | (258 | ) | |||||||
Net minimum lease payments | $ | 849 | |||||||
Minimum lease payments for rail car operating leases included in the table above were $22.9 million. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Stock-Based Compensation Plans | ' | ||||||||||||||||||||
Note 10 – 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. As of August 31, 2014, the aggregate number of shares of the Company’s common stock that were available to be issued as awards under the 2006 Incentive Plan was 176,542. In addition, any shares previously granted under the 1994 Stock Option Plan that 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 expire seven years from the date of grant. See Note 21. 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, 2014 was as follows: | |||||||||||||||||||||
Number of | Option Price | Weighted- | Weighted- | Aggregate | |||||||||||||||||
Shares | Range | Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Term | ||||||||||||||||||||
(in years) | |||||||||||||||||||||
Outstanding balance, August 31, 2013 | 1,517,588 | $ | 4.66 – $21.73 | $ | 10.3 | ||||||||||||||||
Granted | 81,000 | 11.44 – 14.36 | 13.48 | ||||||||||||||||||
Exercised | (82,500 | ) | 5.29 – 8.09 | 6.27 | |||||||||||||||||
Cancelled | (87,088 | ) | 6.88 – 19.77 | 15.13 | |||||||||||||||||
Outstanding balance, August 31, 2014 | 1,429,000 | 4.66 – 21.73 | 10.42 | 3.17 | $ | 6,160,400 | |||||||||||||||
Options exercisable at August 31, 2014 | 1,072,502 | $ | 4.66 – $21.73 | $ | 11.26 | 2.55 | $ | 4,084,100 | |||||||||||||
The aggregate intrinsic value disclosed in the table above represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $13.62 per share as of August 31, 2014 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 years 2014 and 2013 were $536,600 and $835,300, respectively. No stock options were exercised in fiscal year 2012. | |||||||||||||||||||||
Valuation and Expense | |||||||||||||||||||||
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 option 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. | |||||||||||||||||||||
On March 25, 2014, in connection with the acquisition of the net assets of Gum Technology, discussed in Note 17, the Company entered into compensatory stock option agreements outside of the Company’s 2006 Incentive Plan with three key employees of Gum Technology. Pursuant to these agreements, the Company granted options to purchase an aggregate of 45,000 shares of the Company’s common stock at an exercise price equal to the closing price as of the close of business on March 25, 2014. These options have a term of seven years and, subject to certain conditions, vest ratably over three years. In fiscal 2012, in connection with the acquisition of the business of Carolina Starches, 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 36,000 stock options during fiscal 2014, 3,000 of which vest over one year and 33,000 vest ratably over three years. 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 that vest ratably over three years. The Company estimated the fair value of stock options granted using the following weighted-average assumptions, which resulted in the following weighted-average grant date fair value: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected volatility | 55% | 68% | 68% | ||||||||||||||||||
Expected life (years) | 5 | 4.7 | 4.9 | ||||||||||||||||||
Interest rate | 1.1 - 2.1% | 0.5 - 1.0% | 0.5 - 1.1% | ||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||
Weighted-average fair values | $6.44 | $4.60 | $3.13 | ||||||||||||||||||
As of August 31, 2014, the Company had $0.6 million of unrecognized compensation costs related to non-vested stock option awards that are expected to be recognized over a weighted-average period of 0.8 years. | |||||||||||||||||||||
Restricted Stock Awards | |||||||||||||||||||||
A summary of the restricted stock award activity for the year ended August 31, 2014 was as follows: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Shares | Average | ||||||||||||||||||||
Grant-Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested at August 31, 2013 | 24,489 | $ | 7.35 | ||||||||||||||||||
Granted | 173,060 | 12.64 | |||||||||||||||||||
Vested | (24,489 | ) | 7.35 | ||||||||||||||||||
Cancelled | — | ||||||||||||||||||||
Nonvested at August 31, 2014 | 173,060 | $ | 12.64 | ||||||||||||||||||
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 total grant date fair value of awards vested in 2014, 2013, and 2012 was $0.2 million, $0.4 million and $1.0 million, respectively. On January 1, 2014, each non-employee director received an award of 1,556 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 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 vested 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. In the third quarter of fiscal 2014, certain key employees of the Company received awards of restricted stock aggregating 157,500 shares under the 2006 Incentive Plan at the closing stock price on the date of the grant. These shares vest ratably over three years. The Company recognizes compensation cost for restricted stock ratably over the vesting period. | |||||||||||||||||||||
As of August 31, 2014, the Company had $1.6 million of unrecognized compensation costs related to non-vested restricted stock awards that is expected to be recognized over a weighted-average period of 1.0 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 2014, 2013 and 2012 and the effect on the Company’s Consolidated Statements of Operations (dollars in thousands): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Cost of sales | $ | 21 | $ | — | $ | 48 | |||||||||||||||
Operating expenses | 1,310 | 1,404 | 1,324 | ||||||||||||||||||
Research and development expenses | 13 | — | 15 | ||||||||||||||||||
Total stock-based compensation expense | $ | 1,344 | $ | 1,404 | $ | 1,387 | |||||||||||||||
Income tax benefit | (516 | ) | (534 | ) | (527 | ) | |||||||||||||||
Total stock-based compensation expense, net of tax | $ | 828 | $ | 870 | $ | 860 | |||||||||||||||
Pensions_and_Other_Postretirem
Pensions and Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Pensions and Other Postretirement Benefits | ' | ||||||||||||||||||||||||
Note 11 – 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. | |||||||||||||||||||||||||
In fiscal 2014, the Company amended its Penford Corporation Retirement Plan, which is a defined benefit pension plan for certain salaried and other employees (the “Retirement Plan”), to cease the further accrual of participant benefits. As a result of the amendment to the Retirement Plan, the Company performed a remeasurement of the Retirement Plan’s pension benefit liability and the net periodic benefit cost. The discount rate for the remeasurement of the pension liability decreased from 5.24% as of August 31, 2013 to 4.91%. There was no change in the expected return on assets. Pension net periodic benefit cost decreased approximately $0.8 million in fiscal 2014 as a result of the curtailment. | |||||||||||||||||||||||||
Obligations and Funded Status | |||||||||||||||||||||||||
The following represents information summarizing the Company’s pension and other postretirement benefit plans. A measurement date of August 31, 2014 was used for all plans. | |||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at September 1 | $ | 57,278 | $ | 62,989 | $ | 17,356 | $ | 20,457 | |||||||||||||||||
Service cost | 1,350 | 1,945 | 112 | 235 | |||||||||||||||||||||
Interest cost | 2,866 | 2,648 | 890 | 860 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 110 | 106 | |||||||||||||||||||||
Plan curtailment | (2,705 | ) | — | — | — | ||||||||||||||||||||
Actuarial (gain) loss | (423 | ) | (107 | ) | (346 | ) | 267 | ||||||||||||||||||
Change in assumptions | 6,237 | (8,135 | ) | 2,243 | (3,912 | ) | |||||||||||||||||||
Benefits paid | (2,176 | ) | (2,062 | ) | (865 | ) | (657 | ) | |||||||||||||||||
Benefit obligation at August 31 | $ | 62,427 | $ | 57,278 | $ | 19,500 | $ | 17,356 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at September 1 | $ | 46,726 | $ | 42,072 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 9,623 | 5,580 | — | — | |||||||||||||||||||||
Company contributions | 2,502 | 1,136 | 755 | 551 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 110 | 106 | |||||||||||||||||||||
Benefits paid | (2,176 | ) | (2,062 | ) | (865 | ) | (657 | ) | |||||||||||||||||
Fair value of the plan assets at August 31 | $ | 56,675 | $ | 46,726 | $ | — | $ | — | |||||||||||||||||
Funded status: | |||||||||||||||||||||||||
Net liability – plan assets less than projected benefit obligation | $ | (5,752 | ) | $ | (10,552 | ) | $ | (19,500 | ) | $ | (17,356 | ) | |||||||||||||
Recognized as: | |||||||||||||||||||||||||
Current accrued benefit liability | $ | — | $ | — | $ | (774 | ) | $ | (760 | ) | |||||||||||||||
Non-current accrued benefit liability | (5,752 | ) | (10,552 | ) | (18,726 | ) | (16,596 | ) | |||||||||||||||||
Net amount recognized | $ | (5,752 | ) | $ | (10,552 | ) | $ | (19,500 | ) | $ | (17,356 | ) | |||||||||||||
Accumulated other comprehensive loss consisted of the following amounts that have not yet been recognized as components of net benefit cost (dollars in thousands): | |||||||||||||||||||||||||
August 31, 2014 | August 31, 2013 | ||||||||||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||
Unrecognized prior service cost (credit) | $ | 1,055 | $ | (3 | ) | $ | 1,288 | $ | (155 | ) | |||||||||||||||
Unrecognized net actuarial loss | 6,600 | 1,579 | 10,091 | (318 | ) | ||||||||||||||||||||
Total | $ | 7,655 | $ | 1,576 | $ | 11,379 | $ | (473 | ) | ||||||||||||||||
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, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Projected benefit obligation | $ | 62,427 | $ | 57,278 | |||||||||||||||||||||
Accumulated benefit obligation | $ | 62,427 | $ | 54,389 | |||||||||||||||||||||
Fair value of plan assets | $ | 56,675 | $ | 46,726 | |||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 1,350 | $ | 1,945 | $ | 1,521 | $ | 112 | $ | 235 | $ | 229 | |||||||||||||
Interest cost | 2,866 | 2,648 | 2,729 | 890 | 860 | 972 | |||||||||||||||||||
Expected return on plan assets | (3,374 | ) | (2,869 | ) | (2,914 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost | 233 | 241 | 228 | (152 | ) | (152 | ) | (152 | ) | ||||||||||||||||
Amortization of actuarial loss | 351 | 1,932 | 773 | — | 267 | — | |||||||||||||||||||
Benefit cost | $ | 1,426 | $ | 3,897 | $ | 2,337 | $ | 850 | $ | 1,210 | $ | 1,049 | |||||||||||||
Assumptions | |||||||||||||||||||||||||
The Company assesses its benefit plan assumptions on a regular basis. Assumptions used in determining plan information were as follows: | |||||||||||||||||||||||||
August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Weighted-average assumptions used to calculate net periodic expense: | |||||||||||||||||||||||||
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 | % | |||||||||||||||||||
Weighted-average assumptions used to calculate benefit obligations at August 31: | |||||||||||||||||||||||||
Discount rate | 4.39 | % | 5.24 | % | 4.28 | % | 4.39 | % | 5.24 | % | 4.28 | % | |||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 7 | % | |||||||||||||||||||
Rate of compensation increase | — | 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 2014. A decrease (increase) of 50 basis points in the expected return on assets assumptions would increase (decrease) pension expense by approximately $0.3 million based on the assets of the plans at August 31, 2014. The expected return on plan assets to be used in calculating fiscal 2015 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 2014 (5.24%), fiscal 2013 (4.28%) and fiscal 2012 (5.87%), reflect the change in bond yields over the last several years. During fiscal 2014, bond yields decreased and Penford has decreased the discount rate for calculating its benefit obligations at August 31, 2014, as well as net periodic expense for fiscal 2015, to 4.39%. Lowering the discount rate by 25 basis points would increase pension expense by approximately $0.2 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 $0.1 million in fiscal 2015. Amortization of unrecognized net losses is not expected to increase net postretirement health care expense in fiscal 2015. | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Assumed health care cost trend rates: | |||||||||||||||||||||||||
Current health care trend assumption | 7 | % | 7.8 | % | 8 | % | |||||||||||||||||||
Ultimate health care trend rate | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||||||||
Year ultimate health care trend is reached | 2033 | 2032 | 2030 | ||||||||||||||||||||||
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 2014 | $ | 148 | $ | (122 | ) | ||||||||||||||||||||
Effect on postretirement accumulated benefit obligation as of August 31, 2014 | $ | 2,808 | $ | (2,324 | ) | ||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The weighted-average asset allocations of the investment portfolio for the pension plans at August 31 were as follows: | |||||||||||||||||||||||||
Target | August 31, | ||||||||||||||||||||||||
Allocation | 2014 | 2013 | |||||||||||||||||||||||
U.S. equities | 62 | % | 62 | % | 55 | % | |||||||||||||||||||
International equities | 13 | % | 13 | % | 15 | % | |||||||||||||||||||
Fixed income investments | 25 | % | 25 | % | 25 | % | |||||||||||||||||||
Real estate | — | — | 5 | % | |||||||||||||||||||||
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 plan. At August 31, 2014, the assets of the pension plans were invested in publicly traded mutual funds and money market funds. The fair values of the assets of the pension plans were determined using Level 1 inputs. See Note 13, “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 fair values of the assets of the Company’s pension plans at August 31, 2014 were as follows: | |||||||||||||||||||||||||
August 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. equities | $ | 35,287 | |||||||||||||||||||||||
International equities | 7,296 | ||||||||||||||||||||||||
Fixed income investments | 14,092 | ||||||||||||||||||||||||
Balance, August 31, 2014 | $ | 56,675 | |||||||||||||||||||||||
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 $2.5 million, $1.1 million and $4.1 million in fiscal 2014, 2013 and 2012, respectively. The Company estimates that it will not be required to make minimum contributions to the pension plans during fiscal 2015. | |||||||||||||||||||||||||
Penford funds the benefit payments of its postretirement health care plan on a cash basis; therefore, the Company’s contributions to these plans in fiscal 2015 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) | |||||||||||||||||||||||||
2015 | $ | 2.5 | $ | 1 | |||||||||||||||||||||
2016 | 2.6 | 1 | |||||||||||||||||||||||
2017 | 2.8 | 1.1 | |||||||||||||||||||||||
2018 | 2.9 | 1.2 | |||||||||||||||||||||||
2019 | 3.1 | 1.3 | |||||||||||||||||||||||
2020-2024 | 18.6 | 8.2 |
Other_Employee_Benefits
Other Employee Benefits | 12 Months Ended |
Aug. 31, 2014 | |
Postemployment Benefits [Abstract] | ' |
Other Employee Benefits | ' |
Note 12 – 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 50%. 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 $1.3 million, $1.2 million and $1.0 million for fiscal years 2014, 2013 and 2012, respectively. Effective September 1, 2014, the plan provides a 125% match on the first 3% of salary contributions and a 75% match on the next 3% per employee. | |
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 $185,000, $177,000 and $179,000 was accrued in fiscal years 2014, 2013 and 2012, 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 2014, 2013 and 2012, the net periodic pension expense accrued for this plan was $274,000, $271,000 and $258,000, respectively. The accrued obligation related to the plan was $2.7 million at August 31, 2014 and 2013. 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 $5.1 million, $5.9 million and $5.1 million in fiscal years 2014, 2013 and 2012, respectively. |
Fair_Value_Measurements_and_De
Fair Value Measurements and Derivative Instruments | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Derivative Instruments | ' | ||||||||||||||||||||||||||||||||||||
Note 13 – 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, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||
As of August 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Current assets (Other current assets): | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | (1,787 | ) | $ | — | $ | — | $ | (1,787 | ) | |||||||||||||||||||||||||||
As of August 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Current assets (Other current assets): | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | 512 | $ | — | $ | — | $ | 512 | |||||||||||||||||||||||||||||
The following table reconciles the gross fair value of assets and liabilities subject to offsetting arrangements to the net amounts recorded in the Consolidated Balance Sheets as other current assets: | |||||||||||||||||||||||||||||||||||||
(In thousands) | Gross Amounts | Gross | Net Amount of | Cash Collateral | Net Fair Value as | ||||||||||||||||||||||||||||||||
of Recognized | Liabilities | Assets | on Deposit with | Recorded in | |||||||||||||||||||||||||||||||||
Assets | Offset in the | (Liabilities) | Counterparty | Balance Sheets | |||||||||||||||||||||||||||||||||
Balance Sheets | |||||||||||||||||||||||||||||||||||||
As of August 31, 2014 | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | 413 | $ | (2,200 | ) | $ | (1,787 | ) | $ | 3,490 | $ | 1,703 | |||||||||||||||||||||||||
As of August 31, 2013 | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | 997 | $ | (485 | ) | $ | 512 | $ | 1,700 | $ | 2,212 | ||||||||||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||||||||||||||
The carrying values of cash and cash equivalents, receivables and payables approximate their fair values 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. | |||||||||||||||||||||||||||||||||||||
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, were 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 was 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 sales. | |||||||||||||||||||||||||||||||||||||
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 were designated as hedges. Effective August 1, 2014, the Company discontinued hedge accounting treatment for corn futures contracts as the hedging relationship no longer met the requirements for hedge accounting. The effect of the loss of hedge accounting on the Consolidated Financial Statements was not material. Through July 31, 2014, the gains and losses on corn futures contracts designated as cash flow hedges were deferred in accumulated other comprehensive income (loss). At August 31, 2014, $2.1 million of pre-tax losses continued to be deferred in accumulated other comprehensive income (loss) for these corn futures contracts. These losses will be reclassified to cost of sales during fiscal years 2015 and 2016 as the originally forecasted cash flows occur. | |||||||||||||||||||||||||||||||||||||
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 12-16 months of the time the hedge is established. The deferred gain (loss), net of tax, recorded in other comprehensive income at August 31, 2014 that is expected to be reclassified into income within 12 months is $(1.9) million. | |||||||||||||||||||||||||||||||||||||
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 may enter into short-term purchase contracts or use exchange-traded futures contracts to reduce exposure to natural gas price fluctuations. These futures contracts were not designated as hedges in the three years ended August 31, 2014. Gains and losses on natural gas futures contracts in the three years ended August 31, 2014 were recognized in cost of sales in the Consolidated Statement of Operations. The Company had no natural gas futures contracts at August 31, 2014 or August 31, 2013. | |||||||||||||||||||||||||||||||||||||
As of August 31, 2014, the Company had the following outstanding futures contracts: | |||||||||||||||||||||||||||||||||||||
Corn futures | 5,705,000 | Bushels | |||||||||||||||||||||||||||||||||||
Ethanol swaps | 17,010,000 | Gallons | |||||||||||||||||||||||||||||||||||
The following tables provide information about the fair values of the Company’s derivatives, by contract type, as of August 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value August 31, | Fair Value August 31, | |||||||||||||||||||||||||||||||||||
Balance Sheet Location | 2014 | 2013 | Balance Sheet Location | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||||
Corn futures | Other current assets | $ | — | $ | — | Other current assets | $ | 320 | $ | 485 | |||||||||||||||||||||||||||
Ethanol futures | Other current assets | — | 997 | Other current assets | 1,880 | — | |||||||||||||||||||||||||||||||
Fair value hedges: | |||||||||||||||||||||||||||||||||||||
Corn futures | Other current assets | 413 | — | Other current assets | — | — | |||||||||||||||||||||||||||||||
$ | 413 | $ | 997 | $ | 2,200 | $ | 485 | ||||||||||||||||||||||||||||||
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, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||||
Corn futures (1) | $ | (3,073 | ) | $ | (407 | ) | $ | 2,067 | $ | (3,349 | ) | $ | 5,351 | $ | 1,500 | $ | (2,307 | ) | $ | (870 | ) | $ | 36 | ||||||||||||||
Natural gas futures (1) | — | — | — | — | — | (492 | ) | — | — | — | |||||||||||||||||||||||||||
Ethanol futures (1) | (11,012 | ) | 1,611 | 1,667 | (8,843 | ) | (123 | ) | 1,263 | (331 | ) | (151 | ) | — | |||||||||||||||||||||||
$ | (14,085 | ) | $ | 1,204 | $ | 3,734 | $ | (12,192 | ) | $ | 5,228 | $ | 2,271 | $ | (2,638 | ) | $ | (1,021 | ) | $ | 36 | ||||||||||||||||
Fair Value Hedges: Corn | $ | 52 | $ | 363 | $ | 98 | |||||||||||||||||||||||||||||||
Futures (1) (2) | |||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Natural gas futures (1) | $ | (662 | ) | $ | 94 | $ | (1,082 | ) | |||||||||||||||||||||||||||||
Foreign currency contracts (1) | — | — | 6 | ||||||||||||||||||||||||||||||||||
Soybean oil futures (1) | — | — | 12 | ||||||||||||||||||||||||||||||||||
Soybean meal futures (1) | 18 | — | (14 | ) | |||||||||||||||||||||||||||||||||
$ | (644 | ) | $ | 94 | $ | (1,078 | ) | ||||||||||||||||||||||||||||||
-1 | Gains and losses reported in cost of sales | ||||||||||||||||||||||||||||||||||||
-2 | Hedged items are firm commitments and inventory | ||||||||||||||||||||||||||||||||||||
Other_NonOperating_Income_Expe
Other Non-Operating Income (Expense) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||
Other Non-Operating Income (Expense) | ' | ||||||||||||
Note 14 – Other Non-Operating Income (Expense) | |||||||||||||
Other non-operating income (expense) consisted of the following: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Loan forgiveness | $ | 1,000 | $ | — | $ | — | |||||||
Loss on extinguishment of debt | (265 | ) | — | — | |||||||||
Loss on redemption of Series A Preferred Stock | — | — | (6,599 | ) | |||||||||
Other | 31 | 75 | 413 | ||||||||||
$ | 766 | $ | 75 | $ | (6,186 | ) | |||||||
On August 1, 2014, the Company refinanced its bank debt. See Note 6. In connection with the refinancing, the Company recorded a pre-tax, non-cash charge to earnings of approximately $0.3 million in the fourth quarter of fiscal 2014 related to unamortized transaction fees associated with the prior credit facility. | |||||||||||||
In May 2014, the Company was notified by the Iowa Department of Economic Development that its obligations to maintain certain levels of employment at the Cedar Rapids plant had been met and that repayment of the $1.0 million forgivable loan had been waived. The Company recorded the loan forgiveness of $1.0 million as non-operating income. See Note 6. | |||||||||||||
In fiscal 2012, the Company redeemed 100,000 shares of its Series A Preferred Stock 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, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Note 15 – Income Taxes | |||||||||||||
The Company’s income (loss) before income taxes for fiscal years 2014, 2013 and 2012 was $12.5 million, $5.5 million, and $(4.8) million, respectively. Foreign income (loss) before income taxes for fiscal years 2014, 2013 and 2012 was $(0.02) million, $0.5 million, and $0.1 million, respectively. Foreign tax expense for all three years was zero. | |||||||||||||
U.S. income tax expense consisted of the following: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | (77 | ) | $ | (422 | ) | $ | (162 | ) | ||||
State | 85 | 80 | 3 | ||||||||||
8 | (342 | ) | (159 | ) | |||||||||
Deferred: | |||||||||||||
Federal | 4,068 | 1,829 | 4,582 | ||||||||||
State | 645 | (4 | ) | 383 | |||||||||
4,713 | 1,825 | 4,965 | |||||||||||
Total | $ | 4,721 | $ | 1,483 | $ | 4,806 | |||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Comprehensive tax expense allocable to: | |||||||||||||
Income before taxes | $ | 4,721 | $ | 1,483 | $ | 4,806 | |||||||
Comprehensive income (loss) | (83 | ) | 4,887 | (4,924 | ) | ||||||||
$ | 4,638 | $ | 6,370 | $ | (118 | ) | |||||||
A reconciliation of the statutory federal tax to the actual provision for taxes was as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Statutory tax rate | 35 | % | 35 | % | 35 | % | |||||||
Statutory tax on income | $ | 4,366 | $ | 1,921 | $ | (1,666 | ) | ||||||
State taxes, net of federal benefit | 501 | 94 | 219 | ||||||||||
Non-deductible expenses related to preferred stock | — | — | 4,547 | ||||||||||
Research credit | (33 | ) | (189 | ) | (73 | ) | |||||||
Foreign taxes | 8 | (183 | ) | (38 | ) | ||||||||
Stock option exercises/expirations | 51 | 376 | — | ||||||||||
Prior year true up | 31 | (265 | ) | 95 | |||||||||
Unrecognized tax benefits | (165 | ) | (359 | ) | (165 | ) | |||||||
Valuation allowance | (156 | ) | (104 | ) | 1,787 | ||||||||
Other | 118 | 192 | 100 | ||||||||||
Total provision | $ | 4,721 | $ | 1,483 | $ | 4,806 | |||||||
The significant components of deferred tax assets and liabilities were as follows: | |||||||||||||
August 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Alternative minimum tax credit | $ | 3,645 | $ | 3,473 | |||||||||
Postretirement benefits | 10,697 | 11,920 | |||||||||||
Provisions for accrued expenses | 2,881 | 2,791 | |||||||||||
Stock-based compensation | 2,581 | 2,453 | |||||||||||
Net operating loss carryforward | 801 | 4,575 | |||||||||||
Tax credit carryforwards | 2,743 | 4,373 | |||||||||||
Net operating loss carryforward – foreign | — | 10,853 | |||||||||||
Hedging | 1,257 | 525 | |||||||||||
Other | 867 | 2,092 | |||||||||||
25,472 | 43,055 | ||||||||||||
Less – valuation allowance | (98 | ) | (12,537 | ) | |||||||||
Total deferred tax assets | 25,374 | 30,518 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | 22,413 | 22,296 | |||||||||||
Prepaid expenses | 867 | 842 | |||||||||||
Other | 102 | 914 | |||||||||||
Total deferred tax liabilities | 23,382 | 24,052 | |||||||||||
Net deferred tax assets | $ | 1,992 | $ | 6,466 | |||||||||
Recognized as: | |||||||||||||
Other current assets | $ | 2,432 | $ | 1,479 | |||||||||
Other liabilities | (440 | ) | — | ||||||||||
Deferred tax asset | — | 4,987 | |||||||||||
Total net deferred tax assets | $ | 1,992 | $ | 6,466 | |||||||||
Carryforwards | |||||||||||||
At August 31, 2014, the Company had a U.S. federal alternative minimum tax credit carryforward of $3.6 million with no expiration, research and development credit carryforwards of $1.7 million expiring 2025 through 2032 and a net operating loss carryforward of $0.2 million expiring in 2030. The Company also has U.S. state net operating loss carryforwards of $15.2 million with expiration dates between 2015 and 2030. | |||||||||||||
Valuation Allowance | |||||||||||||
At August 31, 2013, the Company had a $1.7 million valuation allowance related to small ethanol producer tax credit carryforwards that expired in fiscal 2014. Tax laws require that any net operating loss carryforwards be utilized before the Company could utilize the small ethanol producer tax credit carryforwards. 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. During fiscal 2014, the valuation allowance was reversed as the Company utilized $0.2 million of the credit and the remainder expired unused. | |||||||||||||
At August 31, 2013, the Company had a $22,000 valuation allowance related to charitable contributions that expired in fiscal year 2014. 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. In fiscal 2014, the valuation allowance was reversed as the charitable contributions expired unused. | |||||||||||||
In fiscal 2014, the Company recorded a $98,000 valuation allowance related to two state tax credits. Tax laws require that any net operating loss carryforwards be utilized before the Company can utilize the state credits. In one of the states, the credit carryforward period is 3 years and in the other state, 14 years. The Company did not believe that it had sufficient positive evidence to substantiate that the state tax credit carryforwards would be utilized within the carryforward period. | |||||||||||||
At August 31, 2014, the Company had $2.0 million of U.S. net deferred tax assets. Other than for the state tax credits discussed above, a valuation allowance has not been provided on the net U.S. deferred tax assets as of August 31, 2014. 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. 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. | |||||||||||||
In the second quarter of fiscal 2014, the Company liquidated its Australian subsidiaries and received approval from the Australian tax authorities for the liquidation. As of August 31, 2013, the Company had provided a tax valuation allowance of $10.9 million against the entire Australian net deferred tax asset. During the quarter ended February 28, 2014, as a result of the liquidation, the previously recorded deferred tax asset and corresponding valuation allowance was reversed, resulting in no net effect on current or deferred income taxes. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
The total amount of gross unrecognized tax benefits was $0.5 million at August 31, 2014, 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 was as follows (dollars in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Unrecognized tax benefits at beginning of year | $ | 706 | $ | 1,058 | |||||||||
Additions for tax positions related to prior years | 14 | 134 | |||||||||||
Additions for tax positions related to current year | 92 | 90 | |||||||||||
Reductions due to lapse of applicable statute of limitations | (309 | ) | (576 | ) | |||||||||
Unrecognized tax benefits at end of year | $ | 503 | $ | 706 | |||||||||
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, 2014 and 2013, the Company had $0.1 million and $0.1 million, respectively, of accrued interest and penalties included in the long-term tax liability. During fiscal 2014, the Company decreased the liability for unrecognized tax benefits by $15,000 for interest and $25,000 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 2010. |
Earnings_Loss_per_Common_Share
Earnings (Loss) per Common Share | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings (Loss) per Common Share | ' | ||||||||||||
Note 16 – 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 2014, 2013 and 2012: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | 7,753 | $ | 4,007 | $ | (9,566 | ) | ||||||
Less: allocation to participating securities | (44 | ) | (11 | ) | — | ||||||||
Net income (loss) applicable to common shares and equivalents | $ | 7,709 | $ | 3,996 | $ | (9,566 | ) | ||||||
Denominator: | |||||||||||||
Weighted-average common shares and equivalents outstanding, basic | 12,515 | 12,369 | 12,294 | ||||||||||
Dilutive stock options and awards | 343 | 249 | — | ||||||||||
Weighted-average common shares and equivalents outstanding, diluted | 12,858 | 12,618 | 12,294 | ||||||||||
Weighted-average restricted stock awards of 57,443 for fiscal year 2012 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 601,229, 896,354 and 1,648,704 for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Acquisitions | ' | ||||||||||||
Note 17 – Acquisitions | |||||||||||||
Gum Technology | |||||||||||||
On March 4, 2014, Penford Products Co. entered into an Asset Purchase Agreement with Gum Technology, an Arizona close corporation, (“Gum Technology” or “Seller”), and Allen J Freed and Sheryl I. Freed, the owners of Seller. On March 25, 2014, the Company acquired substantially all of the assets of Seller and assumed certain liabilities for a purchase price of $9.9 million, subject to working capital and certain other adjustments. | |||||||||||||
Gum Technology, based in Tucson, Arizona, distributes and blends gums and hydrocolloids, serving primarily the food and beverage industries in North America and Asia. Gum Technology specializes in developing and producing customized stabilizers to meet customers’ product formulation needs. This acquisition broadens the Company’s food ingredients portfolio of functional and specialty ingredient systems within the Food Ingredients segment. | |||||||||||||
The funding of the purchase price was provided by borrowings under the Company’s credit facility. In connection with the acquisition, $750,000 of the purchase price (“Holdback”), included in the $9.9 million total purchase price, was retained by the Company as a fund to satisfy certain of the Seller’s post-closing obligations. The Holdback is payable to the Seller, net of amounts applied to satisfy the obligations of the Seller, in two installments at six and twelve months after the date of the acquisition. On September 25, 2014, the first payment of the Holdback of $375,000 was paid to Seller. The Company incurred approximately $86,000 of acquisition costs, which were recorded as operating expenses in the Consolidated Statements of Operations. | |||||||||||||
At August 31, 2014, the acquisition was reflected in the consolidated financial statements as follows: | |||||||||||||
(In thousands) | |||||||||||||
Cash paid at closing | $ | 9,086 | |||||||||||
Accrued liabilities: | |||||||||||||
Working capital adjustment | 63 | ||||||||||||
Holdback | 750 | ||||||||||||
Total purchase price | $ | 9,899 | |||||||||||
Goodwill represents the amount by which the purchase price exceeds 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. Goodwill represents the synergies and benefits to the Company from the combination of starch and gum technologies. Pro forma results of operations have not been included as the pro forma revenues and earnings were not significant to the historical periods. Sales of $5.1 million related to the acquired Gum Technology business were included in the Food Ingredients results of operations for the year ended August 31, 2014. Due to the integration of Gum Technology into the Food Ingredients segment, it is not practicable to determine the net earnings of Gum Technology included in the Consolidated Statements of Operations since the acquisition. | |||||||||||||
The acquisition of the net assets of Gum Technology was accounted for as a business combination under the acquisition method. The allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values as of March 25, 2014, is presented below. The purchase price allocation was finalized in the fourth quarter. | |||||||||||||
(In thousands) | Preliminary | Adjustments | Final | ||||||||||
Allocation | Allocation | ||||||||||||
Working capital | $ | 2,133 | $ | (26 | ) | $ | 2,107 | ||||||
Non-compete agreement | 490 | (400 | ) | 90 | |||||||||
Customer relationships | 2,600 | 200 | 2,800 | ||||||||||
Trade names/brand portfolio | 2,700 | — | 2,700 | ||||||||||
Goodwill | 1,934 | 217 | 2,151 | ||||||||||
Other assets | 51 | — | 51 | ||||||||||
Total purchase price | $ | 9,908 | $ | (9 | ) | $ | 9,899 | ||||||
The Company entered into compensatory stock option agreements outside of the Company’s 2006 Incentive Plan with three key former employees of the Seller. Pursuant to these agreements, the Company granted options to purchase an aggregate of 45,000 shares of the Company’s common stock at an exercise price equal to the closing price as of the close of business on March 25, 2014. These options have a term of seven years and vest ratably over a three-year period. Stock-based compensation for these options recognized in operating expense for the year ended August 31, 2014 was approximately $76,000. | |||||||||||||
The Company entered into a five-year non-competition agreement with Gum Technology and the former owners of Gum Technology. The fair value of the agreement is being amortized on a straight-line basis over the term of the agreement. Other intangible assets identified were customer relationships, which are being amortized on a straight-line basis over 13 years, and a trade name portfolio, which is an indefinite-lived asset. The trade name portfolio for gum products is well recognized, and the Company plans to use the portfolio of names indefinitely. The fair values of these intangible assets were calculated utilizing Level 3 inputs to discounted cash flow models. | |||||||||||||
Carolina Starches | |||||||||||||
On January 11, 2012, Penford Carolina, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company, entered into an Amended and Restated Business Sale and Membership Interest 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 has provided an important source of raw material to support continued growth in the Food Ingredients business and has broadened the Company’s portfolio of specialty modified industrial starches. | |||||||||||||
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Reporting | ' | ||||||||||||
Note 18 – 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. The Food Ingredients segment produces specialty starches and gums 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 category for “corporate and other” activity has been presented to provide a 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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Sales | |||||||||||||
Industrial ingredients | |||||||||||||
Industrial starch | $ | 158,379 | $ | 177,382 | $ | 156,945 | |||||||
Ethanol | 96,718 | 96,852 | 101,874 | ||||||||||
By-products | 62,186 | 81,782 | 71,788 | ||||||||||
$ | 317,283 | $ | 356,016 | $ | 330,607 | ||||||||
Food ingredients | 126,590 | 111,234 | 102,544 | ||||||||||
$ | 443,873 | $ | 467,250 | $ | 433,151 | ||||||||
Depreciation and amortization | |||||||||||||
Industrial ingredients | $ | 9,219 | $ | 10,933 | $ | 10,879 | |||||||
Food ingredients | 2,260 | 2,061 | 1,989 | ||||||||||
Corporate and other | 335 | 332 | 1,259 | ||||||||||
$ | 11,814 | $ | 13,326 | $ | 14,127 | ||||||||
Income (loss) from operations | |||||||||||||
Industrial ingredients | $ | 2,587 | $ | (3,238 | ) | $ | (928 | ) | |||||
Food ingredients | 24,345 | 23,265 | 21,591 | ||||||||||
Corporate and other | (11,641 | ) | (10,623 | ) | (10,604 | ) | |||||||
$ | 15,291 | $ | 9,404 | $ | 10,059 | ||||||||
Capital expenditures, net | |||||||||||||
Industrial ingredients | $ | 8,566 | $ | 8,997 | $ | 8,700 | |||||||
Food ingredients | 4,428 | 5,202 | 5,446 | ||||||||||
Corporate and other | — | — | — | ||||||||||
$ | 12,994 | $ | 14,199 | $ | 14,146 | ||||||||
August 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Total assets | |||||||||||||
Industrial ingredients | $ | 135,973 | $ | 133,120 | |||||||||
Food ingredients | 89,781 | 68,550 | |||||||||||
Corporate and other | 13,436 | 22,948 | |||||||||||
$ | 239,190 | $ | 224,618 | ||||||||||
The net assets and results of operations since the acquisition of Gum Technology in March 2014 are reported in the Food Ingredients segment. The net assets of Carolina Starches, acquired in January 2012, are reported in the Food Ingredients segment. The results of operations from the Carolina Starches businesses are reported in the Industrial Ingredients segment. | |||||||||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Income from operations | $ | 15,291 | $ | 9,404 | $ | 10,059 | |||||||
Interest expense | (3,583 | ) | (3,989 | ) | (8,633 | ) | |||||||
Other non-operating income (expense) | 766 | 75 | (6,186 | ) | |||||||||
Income (loss) before income taxes | $ | 12,474 | $ | 5,490 | $ | (4,760 | ) | ||||||
Sales, attributed to the area to which the product was shipped, were as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
United States | $ | 408,253 | $ | 429,957 | $ | 400,070 | |||||||
Canada | 9,932 | 8,662 | 5,653 | ||||||||||
Mexico | 11,360 | 11,419 | 12,761 | ||||||||||
Columbia | 6,211 | 7,379 | 6,678 | ||||||||||
Japan | 1,591 | 5,112 | 4,380 | ||||||||||
Other | 6,526 | 4,721 | 3,609 | ||||||||||
Non-United States | 35,620 | 37,293 | 33,081 | ||||||||||
Total | $ | 443,873 | $ | 467,250 | $ | 433,151 | |||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||||||
Note 19 – 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 2014 | First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Sales | $ | 109,251 | $ | 106,107 | $ | 119,429 | $ | 109,086 | $ | 443,873 | |||||||||||
Cost of sales | 98,542 | 93,938 | 104,561 | 92,525 | 389,566 | ||||||||||||||||
Gross margin | 10,709 | 12,169 | 14,868 | 16,561 | 54,307 | ||||||||||||||||
Net income | $ | 488 | $ | 1,240 | $ | 3,071 | $ | 2,954 | $ | 7,753 | |||||||||||
Earnings per common share: | |||||||||||||||||||||
Basic | $ | 0.04 | $ | 0.1 | $ | 0.24 | $ | 0.23 | $ | 0.62 | |||||||||||
Diluted | $ | 0.04 | $ | 0.1 | $ | 0.24 | $ | 0.23 | $ | 0.6 | |||||||||||
Dividends declared | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Legal_Proceedings_and_Continge
Legal Proceedings and Contingencies | 12 Months Ended |
Aug. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Proceedings and Contingencies | ' |
Note 20 – Legal Proceedings and Contingencies | |
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. The Company expenses legal costs as such costs are incurred. | |
Pet Product Patent Litigation (T.F.H. Publications, Inc. v. Penford Products Co. et al) | |
In June 2011, the Company was notified that a complaint had been filed against a customer of a Company subsidiary, Penford Products, Co., in the United States District Court for the District of New Jersey. The complaint alleged that certain pet products supplied by Penford Products to the customer infringed upon a patent owned by T.F.H. Publications, Inc. The customer tendered the defense of this lawsuit to Penford Products pursuant to the terms of its supply agreement with Penford Products. Penford Products thereafter commenced the defense of this litigation on behalf of the customer. 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 the plaintiff’s patents. In November 2013, the plaintiff filed another amended complaint adding Penford Products as a defendant in the suit. The Plaintiff is seeking an injunction against infringement of its patents, as well as the recovery of an unspecified amount of damages. | |
The court held a claim construction hearing on August 7, 2013, and rendered an opinion dated April 30, 2014. The Company believes that the court’s opinion substantially supports its position that none of the products supplied by Penford Products infringes upon the patents in the suit. The Company has recently entered into settlement negotiations with the plaintiff, but there can be no assurance that these negotiations will be successfully completed. If the negotiations fail, the Company will continue to evaluate further steps in order to obtain the dismissal of the litigation. The Company cannot at this time determine the likelihood of any outcome or estimate any damages that might be awarded. | |
Estate of Brett D. Brown (Heather A. Brown as Administrator for the Estate of Brett D. Brown v. Penford Corporation and Penford Products Co.) | |
In early October 2014, the Company was notified that a petition had been filed against it and its subsidiary company, Penford Products Co., in the Iowa District Court for Linn County by the Administrator for the Estate of Brett D. Brown alleging negligence by the Company in connection with the death of Brett D. Brown, a former employee of an electrical contractor for Penford Products, at the Company’s Cedar Rapids plant. The petition does not specify an amount of damages being sought. The Company expects to defend the matter and to deny all allegations of negligence or fault. Pursuant to an indemnification agreement, the Company has tendered the defense of this matter to Mr. Brown’s former employer, and, by virtue of the Company’s status as an additional insured, to the employer’s insurer. The Company cannot at this time determine the likelihood of any outcome or estimate any damages that might be awarded. | |
Merger Agreement Shareholder Litigation (David Pill, individually and on behalf of all others similarly situated v. Penford Corporation, Ingredion Incorporated, et al) | |
In early November 2014, the Company, its directors and others were served with a complaint purporting to institute a stockholder class action in the Superior Court of Washington, King County, in connection with the Agreement and Plan of Merger that the Company entered into with Ingredion Incorporated on October 14, 2014. The complaint alleges, among other things, breaches of fiduciary duties in connection with the proposed acquisition of the Company by Ingredion. The plaintiff seeks an injunction against the proposed transaction and unspecified damages. In addition to legal defenses, the Company believes that it has adequate insurance protection that is expected to provide coverage applicable to the defense of this matter. | |
Management is unable to provide additional information regarding any possible loss in connection with the foregoing claims and proceedings because (i) the Company currently believes that the claims are not adequately supported, and (ii) there are significant factual and/or legal 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, results of operations or liquidity, 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. | |
NewPage Bankruptcy Preference Litigation (Pirinate Consulting v. Penford Products Co. and Carolina Starches, LLC) | |
In late August and early September 2013, two of the Company’s subsidiaries, Penford Products and Carolina Starches, LLC, were served with separate complaints filed by Pirinate Consulting Group, LLC, as Litigation Trustee, for the NP Creditor Litigation Trust, as successor in interest to the bankruptcy estate of NewPage Corporation, an industrial starch customer of each subsidiary, in the United States Bankruptcy Court for the District of Delaware. The complaint against Carolina Starches was settled in March 2014 in exchange for a payment of $10,000. The complaint against Penford Products was settled in October 2014 in exchange for a payment of $50,000. | |
Other Claims and Litigation | |
The Company is involved from time to time in various other claims and litigation arising in the normal course of business. 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. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Aug. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Note 21 – Subsequent Event | |
On October 14, 2014, the Company, Ingredion Incorporated (“Ingredion”) and Prospect Sub, Inc., a wholly owned subsidiary of Ingredion, entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Ingredion will acquire the Company in an all-cash transaction valued at approximately $340 million in the aggregate. Upon the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company (the “Merger”), and the Company will become a wholly owned subsidiary of Ingredion. | |
Pursuant to the Merger Agreement, upon the closing of the Merger (the “Closing”), each outstanding share of the Company’s common stock, other than the shares owned directly or indirectly by Ingredion or Merger Sub (which will be cancelled) and shares with respect to which dissenter’s rights are properly exercised and not withdrawn under Washington law, will automatically be converted into the right to receive $19.00 in cash (the “Merger Consideration”), without interest and subject to any withholding of taxes required by applicable law. Each Company option outstanding immediately prior to the Merger, whether or not then vested and exercisable, will be cancelled and converted into the right to receive, for each share of common stock subject to such stock option, an amount in cash, without interest, equal to the excess, if any, of the Merger Consideration over the per share exercise price of such option. In addition, other issued and outstanding equity-based awards will be cancelled and converted into the right to receive, for each share of common stock payable thereunder, the Merger Consideration, without interest. | |
The consummation of the Merger is subject to customary closing conditions and covenants. The Merger Agreement also contains covenants that require the Company‘s Board of Directors to recommend that the Company’s shareholders approve the Merger Agreement. The Merger Agreement provides certain termination rights for the Company, Ingredion and Merger Sub, including (i) the Company’s right to terminate the Merger Agreement in order to enter into an acquisition agreement with respect to a superior acquisition proposal after complying with certain obligations; (ii) Ingredion’s ability to terminate the Merger Agreement if there is a change of recommendation by the Company’s board; and (iii) the Company’s and Ingredion’s right to termination the Merger Agreement if the Merger has not been consummated by the outside date, including due to anti-trust regulatory reasons. In connection with the termination of the Merger Agreement under specified circumstances, the Company will be required to pay Ingredion a termination fee equal to approximately $7.6 million. In the event the Company’s shareholders do not approve the Merger and the Merger Agreement is terminated, the Company will be required to pay Ingredion a fee equal to $2.0 million, which is intended for expenses. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
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. Transactions between segments are at cost plus a return on assets. Certain reclassifications have been made to prior years’ financial statements in order to conform to the current year presentation. | |||||||||||||||||
Use of Estimates/Change in Estimate | ' | ||||||||||||||||
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; the determination of potential write downs for lower-of-cost-or-market inventory evaluations; the reserve for obsolete inventory; 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, plant and equipment; the assessment of a potential impairment of goodwill, indefinite-lived intangible assets 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. | |||||||||||||||||
Change in Estimate | |||||||||||||||||
During the third quarter of fiscal year 2014, the Company changed its estimates of useful lives of certain machinery and equipment used by the Industrial Ingredients segment to better match depreciation expense of these assets with the periods in which these assets are expected to generate revenue. The new estimated useful lives were established based on manufacturing engineering data and external benchmark data and were generally increased as compared to the previous estimates. The Company accounted for this as a prospective change in accounting estimate as of May 1, 2014, thereby impacting the quarter in which the change occurred and future periods. The change in the estimate lowered depreciation expense as compared to the amount that would have been recorded using the historical estimated useful lives. The effect of this change on net income and diluted earnings per share for the year ended August 31, 2014 was $899,000 and $0.07 per share, respectively. | |||||||||||||||||
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 | ' | ||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
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 2014, 2013 and 2012 was 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: | |||||||||||||||||
2014 | $ | 280 | $ | 115 | $ | (100 | ) | $ | 295 | ||||||||
2013 | $ | 78 | $ | 241 | $ | (39 | ) | $ | 280 | ||||||||
2012 | $ | 1,305 | $ | (42 | ) | $ | (1,185 | ) | $ | 78 | |||||||
In fiscal 2012, accounts receivable due from two paper industry customers were written off when they were deemed uncollectible. | |||||||||||||||||
Concentrations of Risk | ' | ||||||||||||||||
Concentrations of Risk | |||||||||||||||||
Approximately 36%, 38% and 36% of the Company’s sales in fiscal 2014, 2013 and 2012, respectively, were made to customers who operate in the paper and packaging industries. These industries suffered an economic downturn, which has resulted in the closure of a number of mills. | |||||||||||||||||
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 22%, 21% and 24% of the Company’s net sales for fiscal years 2014, 2013 and 2012, respectively. Eco-Energy, Inc., a marketer and distributor of biofuels in the United States and Canada, is a customer of the Company’s Industrial Ingredients business. | |||||||||||||||||
At August 31, 2014, Penford had 443 employees, of which approximately 34% were members of a trade union. The collective bargaining agreement covering the Cedar Rapids-based manufacturing workforce expires in August 2015. The Company is currently engaged in labor contract negotiations with a new bargaining unit consisting of approximately 15 operating employees at its Richland, WA plant. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or net realizable value. Costs of agricultural raw materials are generally stated at weighted-average cost. Costs of other raw materials and finished goods are determined using actual costs on a first-in first-out method. Costs for materials and supplies, which constitute spare parts for the Company’s property, plant and equipment, are stated at weighted-average cost. 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 thirty years and real estate between twelve to forty-six years. Depreciation, which includes depreciation of assets under capital leases, of $11.2 million, $12.8 million and $12.7 million was recorded in fiscal years 2014, 2013 and 2012, 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 2014, 2013 and 2012, the Company capitalized $2,000, $107,000 and $48,000, respectively, in interest costs. | |||||||||||||||||
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. No impairment charges were recorded in fiscal years 2014, 2013 or 2012. | |||||||||||||||||
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. No goodwill impairment charges were recorded in fiscal years 2014, 2013 or 2012. | |||||||||||||||||
Indefinite-lived assets consist of trade names and brands acquired in the acquisition of Gum Technology discussed in Note 17. These assets are tested annually for impairment as of June 1. Definite-lived intangible assets are amortized using the straight-line method over their expected economic useful lives. | |||||||||||||||||
Accrued Liabilities | ' | ||||||||||||||||
Accrued Liabilities | |||||||||||||||||
Components of accrued liabilities were as follows (dollars in thousands): | |||||||||||||||||
August 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Employee-related costs | $ | 5,271 | $ | 3,931 | |||||||||||||
Other | 4,508 | 4,276 | |||||||||||||||
Accrued liabilities | $ | 9,779 | $ | 8,207 | |||||||||||||
Employee-related costs included 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 title to the goods 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. | |||||||||||||||||
Export Sales | ' | ||||||||||||||||
Export Sales | |||||||||||||||||
Export sales accounted for approximately 8.0%, 8.0% and 7.6% of consolidated sales in fiscal years ended August 31, 2014, 2013 and 2012, 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 sales. 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 sales 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 $5.6 million, $5.9 million and $5.8 million in fiscal 2014, 2013 and 2012, 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 10 for further detail. Shares issued pursuant to stock-based compensation agreements are issued from authorized but unissued shares. | |||||||||||||||||
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. | |||||||||||||||||
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 2014, 2013 and 2012 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. | |||||||||||||||||
Accounting Pronouncements Adopted/Recent Accounting Pronouncements | ' | ||||||||||||||||
Accounting Pronouncements Adopted | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“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 did not change the current requirements for reporting net income or other comprehensive income. The Company adopted this guidance effective September 1, 2013, and the required disclosure is presented in Note 8. | |||||||||||||||||
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 Company adopted this guidance effective September 1, 2013, and the required disclosure is presented in Note 13. | |||||||||||||||||
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. The Company adopted this accounting presentation effective September 1, 2013. The Company complied with the prescribed accounting presentation in prior periods; therefore, the adoption of this guidance had no impact on the presentation of the Company’s consolidated financial statements. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
On May 28, 2014, the FASB issued guidance that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The guidance will replace most existing revenue recognition guidance when it becomes effective. The new standard is effective for the Company on September 1, 2017, and early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that this new guidance will have on its consolidated financial statements and related disclosures. The Company has not selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Allowance for Doubtful Accounts Activity | ' | ||||||||||||||||
Activity in the allowance for doubtful accounts for fiscal 2014, 2013 and 2012 was 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: | |||||||||||||||||
2014 | $ | 280 | $ | 115 | $ | (100 | ) | $ | 295 | ||||||||
2013 | $ | 78 | $ | 241 | $ | (39 | ) | $ | 280 | ||||||||
2012 | $ | 1,305 | $ | (42 | ) | $ | (1,185 | ) | $ | 78 | |||||||
Components of Accrued Liabilities | ' | ||||||||||||||||
Components of accrued liabilities were as follows (dollars in thousands): | |||||||||||||||||
August 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Employee-related costs | $ | 5,271 | $ | 3,931 | |||||||||||||
Other | 4,508 | 4,276 | |||||||||||||||
Accrued liabilities | $ | 9,779 | $ | 8,207 | |||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventory | ' | ||||||||
Components of inventory were as follows: | |||||||||
August 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Raw materials | $ | 10,069 | $ | 10,381 | |||||
Work in progress | 1,322 | 1,913 | |||||||
Finished goods | 30,360 | 21,698 | |||||||
Total inventories | $ | 41,751 | $ | 33,992 | |||||
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Components of Property, Plant and Equipment | ' | ||||||||
Components of property, plant and equipment were as follows: | |||||||||
August 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Land and land improvements | $ | 12,512 | $ | 11,881 | |||||
Plant and equipment | 369,224 | 359,909 | |||||||
Construction in progress | 7,603 | 5,255 | |||||||
389,339 | 377,045 | ||||||||
Accumulated depreciation | (274,535 | ) | (264,904 | ) | |||||
Property, plant and equipment, net | $ | 114,804 | $ | 112,141 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Goodwill | ' | ||||||||||||||||
Year Ended August 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Goodwill, beginning of year | $ | 7,978 | $ | 7,978 | |||||||||||||
Acquisition of Gum Technology | 2,151 | — | |||||||||||||||
Goodwill, end of year | $ | 10,129 | $ | 7,978 | |||||||||||||
Carrying Amount and Accumulated Amortization of Intangible Assets | ' | ||||||||||||||||
The carrying amount and accumulated amortization of intangible assets were as follows: | |||||||||||||||||
August 31, 2014 | August 31, 2013 | ||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Intangible assets: | |||||||||||||||||
Patents and other | $ | 1,870 | $ | 1,572 | $ | 1,748 | $ | 1,538 | |||||||||
Customer lists and relationships | 3,060 | 296 | 190 | 154 | |||||||||||||
Trade names/brand portfolio | 2,910 | 35 | — | — | |||||||||||||
Non-compete agreements | 190 | 108 | 100 | 33 | |||||||||||||
Other intangible assets | $ | 8,030 | $ | 2,011 | $ | 2,038 | $ | 1,725 | |||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt and Capital Lease Obligations Current and Non Current | ' | ||||||||
August 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Secured credit agreements – revolving loans, 3.16% weighted-average interest rate at August 31, 2014 | $ | 76,000 | $ | 71,506 | |||||
Iowa Department of Economic Development loans | — | 1,233 | |||||||
Capital lease obligations | 849 | 231 | |||||||
76,849 | 72,970 | ||||||||
Less: current portion of long-term debt and capital lease obligations | 184 | 231 | |||||||
Long-term debt and capital lease obligations | $ | 76,665 | $ | 72,739 | |||||
Schedule of Maturities of Long-term Debt | ' | ||||||||
The maturities of debt existing at August 31, 2014 for the fiscal years beginning with fiscal 2015 were as follows (dollars in thousands): | |||||||||
2015 | $ | 184 | |||||||
2016 | 209 | ||||||||
2017 | 225 | ||||||||
2018 | 221 | ||||||||
2019 and thereafter | 76,010 | ||||||||
$ | 76,849 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Common Shares Outstanding | ' | ||||||||||||
Common Stock | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Common shares outstanding | |||||||||||||
Balance, beginning of year | 14,454,181 | 14,280,718 | 13,243,385 | ||||||||||
Series B preferred stock converted to common shares | — | — | 1,000,000 | ||||||||||
Exercise of stock options | 64,824 | 121,226 | — | ||||||||||
Issuance of restricted stock, net | 24,489 | 52,237 | 37,333 | ||||||||||
Balance, end of year | 14,543,494 | 14,454,181 | 14,280,718 | ||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||
Aug. 31, 2014 | |||||||||||||||
Equity [Abstract] | ' | ||||||||||||||
Summary of 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) | Total | ||||||||||||
Gains (Losses) | on | Accumulated | |||||||||||||
on Cash Flow | Postretirement | Other | |||||||||||||
Hedging | Obligations | Comprehensive | |||||||||||||
Instruments | Loss | ||||||||||||||
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 | ) | |||||||||
Other comprehensive income (loss), net of taxes | (1,166 | ) | 1,033 | (133 | ) | ||||||||||
Balance at August 31, 2014 | $ | (2,022 | ) | $ | (5,730 | ) | $ | (7,752 | ) | ||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||
Year Ended August 31, 2014 | |||||||||||||||
(In thousands) | Location of Expense | Before Tax | Tax | Net of Tax | |||||||||||
(Income) Recognized in | Amount | Amount | |||||||||||||
Net Earnings | |||||||||||||||
Pension and other postretirement benefit plans: | |||||||||||||||
Amortization of actuarial loss (gain) | Cost of sales | $ | 263 | $ | (101 | ) | $ | 162 | |||||||
Amortization of actuarial loss (gain) | Operating/R&D | 88 | (34 | ) | 54 | ||||||||||
expenses | |||||||||||||||
Amortization of prior service cost | Cost of sales | 45 | (17 | ) | 28 | ||||||||||
Amortization of prior service cost | Operating/R&D | 36 | (14 | ) | 22 | ||||||||||
expenses | |||||||||||||||
Total reclassification adjustments | 432 | (166 | ) | 266 | |||||||||||
Derivatives accounted for as hedges | Cost of sales | 12,192 | (4,682 | ) | 7,510 | ||||||||||
Total reclassifications into income | $ | 12,624 | $ | (4,848 | ) | $ | 7,776 | ||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Leases [Abstract] | ' | ||||||||
Future Minimum Lease Payments for Noncancelable Operating and Capital Leases | ' | ||||||||
Future minimum lease payments for fiscal years beginning with fiscal year 2015 for noncancelable operating leases and capital leases having initial lease terms of more than one year were as follows (dollars in thousands): | |||||||||
Capital | Operating Leases | ||||||||
Leases | Minimum Lease | ||||||||
Payments | |||||||||
2015 | $ | 292 | $ | 5,928 | |||||
2016 | 290 | 4,690 | |||||||
2017 | 275 | 3,605 | |||||||
2018 | 239 | 2,737 | |||||||
2019 | 4 | 2,161 | |||||||
Thereafter | 7 | 8,158 | |||||||
Total minimum lease payments | 1,107 | $ | 27,279 | ||||||
Less: amounts representing interest | (258 | ) | |||||||
Net minimum lease payments | $ | 849 | |||||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Schedule of Share Based Compensation Stock Options Activity | ' | ||||||||||||||||||||
A summary of the stock option activity for the year ended August 31, 2014 was as follows: | |||||||||||||||||||||
Number of | Option Price | Weighted- | Weighted- | Aggregate | |||||||||||||||||
Shares | Range | Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Term | ||||||||||||||||||||
(in years) | |||||||||||||||||||||
Outstanding balance, August 31, 2013 | 1,517,588 | $ | 4.66 – $21.73 | $ | 10.3 | ||||||||||||||||
Granted | 81,000 | 11.44 – 14.36 | 13.48 | ||||||||||||||||||
Exercised | (82,500 | ) | 5.29 – 8.09 | 6.27 | |||||||||||||||||
Cancelled | (87,088 | ) | 6.88 – 19.77 | 15.13 | |||||||||||||||||
Outstanding balance, August 31, 2014 | 1,429,000 | 4.66 – 21.73 | 10.42 | 3.17 | $ | 6,160,400 | |||||||||||||||
Options exercisable at August 31, 2014 | 1,072,502 | $ | 4.66 – $21.73 | $ | 11.26 | 2.55 | $ | 4,084,100 | |||||||||||||
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, which resulted in the following weighted-average grant date fair value: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected volatility | 55% | 68% | 68% | ||||||||||||||||||
Expected life (years) | 5 | 4.7 | 4.9 | ||||||||||||||||||
Interest rate | 1.1 - 2.1% | 0.5 - 1.0% | 0.5 - 1.1% | ||||||||||||||||||
Dividend yield | 0% | 0% | 0% | ||||||||||||||||||
Weighted-average fair values | $6.44 | $4.60 | $3.13 | ||||||||||||||||||
Schedule of Share-Based Compensation, Restricted Stock Award Activity | ' | ||||||||||||||||||||
A summary of the restricted stock award activity for the year ended August 31, 2014 was as follows: | |||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Shares | Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested at August 31, 2013 | 24,489 | $ | 7.35 | ||||||||||||||||||
Granted | 173,060 | 12.64 | |||||||||||||||||||
Vested | (24,489 | ) | 7.35 | ||||||||||||||||||
Cancelled | — | ||||||||||||||||||||
Nonvested at August 31, 2014 | 173,060 | $ | 12.64 | ||||||||||||||||||
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 2014, 2013 and 2012 and the effect on the Company’s Consolidated Statements of Operations (dollars in thousands): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Cost of sales | $ | 21 | $ | — | $ | 48 | |||||||||||||||
Operating expenses | 1,310 | 1,404 | 1,324 | ||||||||||||||||||
Research and development expenses | 13 | — | 15 | ||||||||||||||||||
Total stock-based compensation expense | $ | 1,344 | $ | 1,404 | $ | 1,387 | |||||||||||||||
Income tax benefit | (516 | ) | (534 | ) | (527 | ) | |||||||||||||||
Total stock-based compensation expense, net of tax | $ | 828 | $ | 870 | $ | 860 | |||||||||||||||
Pensions_and_Other_Postretirem1
Pensions and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||
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, 2014 was used for all plans. | |||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at September 1 | $ | 57,278 | $ | 62,989 | $ | 17,356 | $ | 20,457 | |||||||||||||||||
Service cost | 1,350 | 1,945 | 112 | 235 | |||||||||||||||||||||
Interest cost | 2,866 | 2,648 | 890 | 860 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 110 | 106 | |||||||||||||||||||||
Plan curtailment | (2,705 | ) | — | — | — | ||||||||||||||||||||
Actuarial (gain) loss | (423 | ) | (107 | ) | (346 | ) | 267 | ||||||||||||||||||
Change in assumptions | 6,237 | (8,135 | ) | 2,243 | (3,912 | ) | |||||||||||||||||||
Benefits paid | (2,176 | ) | (2,062 | ) | (865 | ) | (657 | ) | |||||||||||||||||
Benefit obligation at August 31 | $ | 62,427 | $ | 57,278 | $ | 19,500 | $ | 17,356 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at September 1 | $ | 46,726 | $ | 42,072 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 9,623 | 5,580 | — | — | |||||||||||||||||||||
Company contributions | 2,502 | 1,136 | 755 | 551 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 110 | 106 | |||||||||||||||||||||
Benefits paid | (2,176 | ) | (2,062 | ) | (865 | ) | (657 | ) | |||||||||||||||||
Fair value of the plan assets at August 31 | $ | 56,675 | $ | 46,726 | $ | — | $ | — | |||||||||||||||||
Funded status: | |||||||||||||||||||||||||
Net liability – plan assets less than projected benefit obligation | $ | (5,752 | ) | $ | (10,552 | ) | $ | (19,500 | ) | $ | (17,356 | ) | |||||||||||||
Recognized as: | |||||||||||||||||||||||||
Current accrued benefit liability | $ | — | $ | — | $ | (774 | ) | $ | (760 | ) | |||||||||||||||
Non-current accrued benefit liability | (5,752 | ) | (10,552 | ) | (18,726 | ) | (16,596 | ) | |||||||||||||||||
Net amount recognized | $ | (5,752 | ) | $ | (10,552 | ) | $ | (19,500 | ) | $ | (17,356 | ) | |||||||||||||
Components of Accumulated Other Comprehensive Loss Unrecognized | ' | ||||||||||||||||||||||||
Accumulated other comprehensive loss consisted of the following amounts that have not yet been recognized as components of net benefit cost (dollars in thousands): | |||||||||||||||||||||||||
August 31, 2014 | August 31, 2013 | ||||||||||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||
Unrecognized prior service cost (credit) | $ | 1,055 | $ | (3 | ) | $ | 1,288 | $ | (155 | ) | |||||||||||||||
Unrecognized net actuarial loss | 6,600 | 1,579 | 10,091 | (318 | ) | ||||||||||||||||||||
Total | $ | 7,655 | $ | 1,576 | $ | 11,379 | $ | (473 | ) | ||||||||||||||||
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, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Projected benefit obligation | $ | 62,427 | $ | 57,278 | |||||||||||||||||||||
Accumulated benefit obligation | $ | 62,427 | $ | 54,389 | |||||||||||||||||||||
Fair value of plan assets | $ | 56,675 | $ | 46,726 | |||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
Year Ended August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 1,350 | $ | 1,945 | $ | 1,521 | $ | 112 | $ | 235 | $ | 229 | |||||||||||||
Interest cost | 2,866 | 2,648 | 2,729 | 890 | 860 | 972 | |||||||||||||||||||
Expected return on plan assets | (3,374 | ) | (2,869 | ) | (2,914 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost | 233 | 241 | 228 | (152 | ) | (152 | ) | (152 | ) | ||||||||||||||||
Amortization of actuarial loss | 351 | 1,932 | 773 | — | 267 | — | |||||||||||||||||||
Benefit cost | $ | 1,426 | $ | 3,897 | $ | 2,337 | $ | 850 | $ | 1,210 | $ | 1,049 | |||||||||||||
Benefit Plan Assumptions | ' | ||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
The Company assesses its benefit plan assumptions on a regular basis. Assumptions used in determining plan information were as follows: | |||||||||||||||||||||||||
August 31, | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Weighted-average assumptions used to calculate net periodic expense: | |||||||||||||||||||||||||
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 | % | |||||||||||||||||||
Weighted-average assumptions used to calculate benefit obligations at August 31: | |||||||||||||||||||||||||
Discount rate | 4.39 | % | 5.24 | % | 4.28 | % | 4.39 | % | 5.24 | % | 4.28 | % | |||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 7 | % | |||||||||||||||||||
Rate of compensation increase | — | 3 | % | 3 | % | ||||||||||||||||||||
Assumed Health Care Cost Trend Rates | ' | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Assumed health care cost trend rates: | |||||||||||||||||||||||||
Current health care trend assumption | 7 | % | 7.8 | % | 8 | % | |||||||||||||||||||
Ultimate health care trend rate | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||||||||
Year ultimate health care trend is reached | 2033 | 2032 | 2030 | ||||||||||||||||||||||
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 2014 | $ | 148 | $ | (122 | ) | ||||||||||||||||||||
Effect on postretirement accumulated benefit obligation as of August 31, 2014 | $ | 2,808 | $ | (2,324 | ) | ||||||||||||||||||||
Assets Allocation of Company's Pension Plan | ' | ||||||||||||||||||||||||
The weighted-average asset allocations of the investment portfolio for the pension plans at August 31 were as follows: | |||||||||||||||||||||||||
Target | August 31, | ||||||||||||||||||||||||
Allocation | 2014 | 2013 | |||||||||||||||||||||||
U.S. equities | 62 | % | 62 | % | 55 | % | |||||||||||||||||||
International equities | 13 | % | 13 | % | 15 | % | |||||||||||||||||||
Fixed income investments | 25 | % | 25 | % | 25 | % | |||||||||||||||||||
Real estate | — | — | 5 | % | |||||||||||||||||||||
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) | |||||||||||||||||||||||||
2015 | $ | 2.5 | $ | 1 | |||||||||||||||||||||
2016 | 2.6 | 1 | |||||||||||||||||||||||
2017 | 2.8 | 1.1 | |||||||||||||||||||||||
2018 | 2.9 | 1.2 | |||||||||||||||||||||||
2019 | 3.1 | 1.3 | |||||||||||||||||||||||
2020-2024 | 18.6 | 8.2 | |||||||||||||||||||||||
Level 1 [Member] | ' | ||||||||||||||||||||||||
Assets Allocation of Company's Pension Plan | ' | ||||||||||||||||||||||||
The fair values of the assets of the Company’s pension plans at August 31, 2014 were as follows: | |||||||||||||||||||||||||
August 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. equities | $ | 35,287 | |||||||||||||||||||||||
International equities | 7,296 | ||||||||||||||||||||||||
Fixed income investments | 14,092 | ||||||||||||||||||||||||
Balance, August 31, 2014 | $ | 56,675 | |||||||||||||||||||||||
Fair_Value_Measurements_and_De1
Fair Value Measurements and Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||||||||||||||||||
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, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||
As of August 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Current assets (Other current assets): | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | (1,787 | ) | $ | — | $ | — | $ | (1,787 | ) | |||||||||||||||||||||||||||
As of August 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Current assets (Other current assets): | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | 512 | $ | — | $ | — | $ | 512 | |||||||||||||||||||||||||||||
Reconciliation of Gross Fair Value of Assets and Liabilities Subject to Offsetting Arrangements | ' | ||||||||||||||||||||||||||||||||||||
The following table reconciles the gross fair value of assets and liabilities subject to offsetting arrangements to the net amounts recorded in the Consolidated Balance Sheets as other current assets: | |||||||||||||||||||||||||||||||||||||
(In thousands) | Gross Amounts | Gross | Net Amount of | Cash Collateral | Net Fair Value as | ||||||||||||||||||||||||||||||||
of Recognized | Liabilities | Assets | on Deposit with | Recorded in | |||||||||||||||||||||||||||||||||
Assets | Offset in the | (Liabilities) | Counterparty | Balance Sheets | |||||||||||||||||||||||||||||||||
Balance Sheets | |||||||||||||||||||||||||||||||||||||
As of August 31, 2014 | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | 413 | $ | (2,200 | ) | $ | (1,787 | ) | $ | 3,490 | $ | 1,703 | |||||||||||||||||||||||||
As of August 31, 2013 | |||||||||||||||||||||||||||||||||||||
Commodity derivatives | $ | 997 | $ | (485 | ) | $ | 512 | $ | 1,700 | $ | 2,212 | ||||||||||||||||||||||||||
Outstanding Futures Contracts | ' | ||||||||||||||||||||||||||||||||||||
As of August 31, 2014, the Company had the following outstanding futures contracts: | |||||||||||||||||||||||||||||||||||||
Corn futures | 5,705,000 | Bushels | |||||||||||||||||||||||||||||||||||
Ethanol swaps | 17,010,000 | 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, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value August 31, | Fair Value August 31, | |||||||||||||||||||||||||||||||||||
Balance Sheet Location | 2014 | 2013 | Balance Sheet Location | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||||
Corn futures | Other current assets | $ | — | $ | — | Other current assets | $ | 320 | $ | 485 | |||||||||||||||||||||||||||
Ethanol futures | Other current assets | — | 997 | Other current assets | 1,880 | — | |||||||||||||||||||||||||||||||
Fair value hedges: | |||||||||||||||||||||||||||||||||||||
Corn futures | Other current assets | 413 | — | Other current assets | — | — | |||||||||||||||||||||||||||||||
$ | 413 | $ | 997 | $ | 2,200 | $ | 485 | ||||||||||||||||||||||||||||||
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, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||||
Corn futures (1) | $ | (3,073 | ) | $ | (407 | ) | $ | 2,067 | $ | (3,349 | ) | $ | 5,351 | $ | 1,500 | $ | (2,307 | ) | $ | (870 | ) | $ | 36 | ||||||||||||||
Natural gas futures (1) | — | — | — | — | — | (492 | ) | — | — | — | |||||||||||||||||||||||||||
Ethanol futures (1) | (11,012 | ) | 1,611 | 1,667 | (8,843 | ) | (123 | ) | 1,263 | (331 | ) | (151 | ) | — | |||||||||||||||||||||||
$ | (14,085 | ) | $ | 1,204 | $ | 3,734 | $ | (12,192 | ) | $ | 5,228 | $ | 2,271 | $ | (2,638 | ) | $ | (1,021 | ) | $ | 36 | ||||||||||||||||
Fair Value Hedges: Corn | $ | 52 | $ | 363 | $ | 98 | |||||||||||||||||||||||||||||||
Futures (1) (2) | |||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||
Natural gas futures (1) | $ | (662 | ) | $ | 94 | $ | (1,082 | ) | |||||||||||||||||||||||||||||
Foreign currency contracts (1) | — | — | 6 | ||||||||||||||||||||||||||||||||||
Soybean oil futures (1) | — | — | 12 | ||||||||||||||||||||||||||||||||||
Soybean meal futures (1) | 18 | — | (14 | ) | |||||||||||||||||||||||||||||||||
$ | (644 | ) | $ | 94 | $ | (1,078 | ) | ||||||||||||||||||||||||||||||
-1 | Gains and losses reported in cost of sales | ||||||||||||||||||||||||||||||||||||
-2 | Hedged items are firm commitments and inventory |
Other_NonOperating_Income_Expe1
Other Non-Operating Income (Expense) (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||
Other Non-Operating Income (Expense) | ' | ||||||||||||
Other non-operating income (expense) consisted of the following: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Loan forgiveness | $ | 1,000 | $ | — | $ | — | |||||||
Loss on extinguishment of debt | (265 | ) | — | — | |||||||||
Loss on redemption of Series A Preferred Stock | — | — | (6,599 | ) | |||||||||
Other | 31 | 75 | 413 | ||||||||||
$ | 766 | $ | 75 | $ | (6,186 | ) | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of U.S. Income Tax Expense | ' | ||||||||||||
U.S. income tax expense consisted of the following: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | (77 | ) | $ | (422 | ) | $ | (162 | ) | ||||
State | 85 | 80 | 3 | ||||||||||
8 | (342 | ) | (159 | ) | |||||||||
Deferred: | |||||||||||||
Federal | 4,068 | 1,829 | 4,582 | ||||||||||
State | 645 | (4 | ) | 383 | |||||||||
4,713 | 1,825 | 4,965 | |||||||||||
Total | $ | 4,721 | $ | 1,483 | $ | 4,806 | |||||||
Schedule of Allocable Comprehensive Tax Expense | ' | ||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Comprehensive tax expense allocable to: | |||||||||||||
Income before taxes | $ | 4,721 | $ | 1,483 | $ | 4,806 | |||||||
Comprehensive income (loss) | (83 | ) | 4,887 | (4,924 | ) | ||||||||
$ | 4,638 | $ | 6,370 | $ | (118 | ) | |||||||
Reconciliation of Statutory Federal Tax to Actual Provision for Taxes | ' | ||||||||||||
A reconciliation of the statutory federal tax to the actual provision for taxes was as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Statutory tax rate | 35 | % | 35 | % | 35 | % | |||||||
Statutory tax on income | $ | 4,366 | $ | 1,921 | $ | (1,666 | ) | ||||||
State taxes, net of federal benefit | 501 | 94 | 219 | ||||||||||
Non-deductible expenses related to preferred stock | — | — | 4,547 | ||||||||||
Research credit | (33 | ) | (189 | ) | (73 | ) | |||||||
Foreign taxes | 8 | (183 | ) | (38 | ) | ||||||||
Stock option exercises/expirations | 51 | 376 | — | ||||||||||
Prior year true up | 31 | (265 | ) | 95 | |||||||||
Unrecognized tax benefits | (165 | ) | (359 | ) | (165 | ) | |||||||
Valuation allowance | (156 | ) | (104 | ) | 1,787 | ||||||||
Other | 118 | 192 | 100 | ||||||||||
Total provision | $ | 4,721 | $ | 1,483 | $ | 4,806 | |||||||
Schedule of Significant Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The significant components of deferred tax assets and liabilities were as follows: | |||||||||||||
August 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Alternative minimum tax credit | $ | 3,645 | $ | 3,473 | |||||||||
Postretirement benefits | 10,697 | 11,920 | |||||||||||
Provisions for accrued expenses | 2,881 | 2,791 | |||||||||||
Stock-based compensation | 2,581 | 2,453 | |||||||||||
Net operating loss carryforward | 801 | 4,575 | |||||||||||
Tax credit carryforwards | 2,743 | 4,373 | |||||||||||
Net operating loss carryforward – foreign | — | 10,853 | |||||||||||
Hedging | 1,257 | 525 | |||||||||||
Other | 867 | 2,092 | |||||||||||
25,472 | 43,055 | ||||||||||||
Less – valuation allowance | (98 | ) | (12,537 | ) | |||||||||
Total deferred tax assets | 25,374 | 30,518 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | 22,413 | 22,296 | |||||||||||
Prepaid expenses | 867 | 842 | |||||||||||
Other | 102 | 914 | |||||||||||
Total deferred tax liabilities | 23,382 | 24,052 | |||||||||||
Net deferred tax assets | $ | 1,992 | $ | 6,466 | |||||||||
Recognized as: | |||||||||||||
Other current assets | $ | 2,432 | $ | 1,479 | |||||||||
Other liabilities | (440 | ) | — | ||||||||||
Deferred tax asset | — | 4,987 | |||||||||||
Total net deferred tax assets | $ | 1,992 | $ | 6,466 | |||||||||
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): | |||||||||||||
2014 | 2013 | ||||||||||||
Unrecognized tax benefits at beginning of year | $ | 706 | $ | 1,058 | |||||||||
Additions for tax positions related to prior years | 14 | 134 | |||||||||||
Additions for tax positions related to current year | 92 | 90 | |||||||||||
Reductions due to lapse of applicable statute of limitations | (309 | ) | (576 | ) | |||||||||
Unrecognized tax benefits at end of year | $ | 503 | $ | 706 | |||||||||
Earnings_Loss_per_Common_Share1
Earnings (Loss) per Common Share (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Reconciliation of Income (Loss) 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 2014, 2013 and 2012: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | 7,753 | $ | 4,007 | $ | (9,566 | ) | ||||||
Less: allocation to participating securities | (44 | ) | (11 | ) | — | ||||||||
Net income (loss) applicable to common shares and equivalents | $ | 7,709 | $ | 3,996 | $ | (9,566 | ) | ||||||
Denominator: | |||||||||||||
Weighted-average common shares and equivalents outstanding, basic | 12,515 | 12,369 | 12,294 | ||||||||||
Dilutive stock options and awards | 343 | 249 | — | ||||||||||
Weighted-average common shares and equivalents outstanding, diluted | 12,858 | 12,618 | 12,294 | ||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Schedule of Acquisition | ' | ||||||||||||
At August 31, 2014, the acquisition was reflected in the consolidated financial statements as follows: | |||||||||||||
(In thousands) | |||||||||||||
Cash paid at closing | $ | 9,086 | |||||||||||
Accrued liabilities: | |||||||||||||
Working capital adjustment | 63 | ||||||||||||
Holdback | 750 | ||||||||||||
Total purchase price | $ | 9,899 | |||||||||||
Purchase Price Allocation to Assets Acquired and Liabilities Assumed | ' | ||||||||||||
The allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values as of March 25, 2014, is presented below. | |||||||||||||
(in thousands) | Preliminary | Adjustments | Final | ||||||||||
Allocation | Allocation | ||||||||||||
Working capital | $ | 2,133 | $ | (26 | ) | $ | 2,107 | ||||||
Non-compete agreement | 490 | (400 | ) | 90 | |||||||||
Customer relationships | 2,600 | 200 | 2,800 | ||||||||||
Trade names/brand portfolio | 2,700 | — | 2,700 | ||||||||||
Goodwill | 1,934 | 217 | 2,151 | ||||||||||
Other assets | 51 | — | 51 | ||||||||||
Total purchase price | $ | 9,908 | $ | (9 | ) | $ | 9,899 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Wide Reporting Information | ' | ||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Sales | |||||||||||||
Industrial ingredients | |||||||||||||
Industrial starch | $ | 158,379 | $ | 177,382 | $ | 156,945 | |||||||
Ethanol | 96,718 | 96,852 | 101,874 | ||||||||||
By-products | 62,186 | 81,782 | 71,788 | ||||||||||
$ | 317,283 | $ | 356,016 | $ | 330,607 | ||||||||
Food ingredients | 126,590 | 111,234 | 102,544 | ||||||||||
$ | 443,873 | $ | 467,250 | $ | 433,151 | ||||||||
Depreciation and amortization | |||||||||||||
Industrial ingredients | $ | 9,219 | $ | 10,933 | $ | 10,879 | |||||||
Food ingredients | 2,260 | 2,061 | 1,989 | ||||||||||
Corporate and other | 335 | 332 | 1,259 | ||||||||||
$ | 11,814 | $ | 13,326 | $ | 14,127 | ||||||||
Income (loss) from operations | |||||||||||||
Industrial ingredients | $ | 2,587 | $ | (3,238 | ) | $ | (928 | ) | |||||
Food ingredients | 24,345 | 23,265 | 21,591 | ||||||||||
Corporate and other | (11,641 | ) | (10,623 | ) | (10,604 | ) | |||||||
$ | 15,291 | $ | 9,404 | $ | 10,059 | ||||||||
Capital expenditures, net | |||||||||||||
Industrial ingredients | $ | 8,566 | $ | 8,997 | $ | 8,700 | |||||||
Food ingredients | 4,428 | 5,202 | 5,446 | ||||||||||
Corporate and other | — | — | — | ||||||||||
$ | 12,994 | $ | 14,199 | $ | 14,146 | ||||||||
August 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Total assets | |||||||||||||
Industrial ingredients | $ | 135,973 | $ | 133,120 | |||||||||
Food ingredients | 89,781 | 68,550 | |||||||||||
Corporate and other | 13,436 | 22,948 | |||||||||||
$ | 239,190 | $ | 224,618 | ||||||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Income from operations | $ | 15,291 | $ | 9,404 | $ | 10,059 | |||||||
Interest expense | (3,583 | ) | (3,989 | ) | (8,633 | ) | |||||||
Other non-operating income (expense) | 766 | 75 | (6,186 | ) | |||||||||
Income (loss) before income taxes | $ | 12,474 | $ | 5,490 | $ | (4,760 | ) | ||||||
Sales, Attributed to Area to Which Product was Shipped | ' | ||||||||||||
Sales, attributed to the area to which the product was shipped, were as follows: | |||||||||||||
Year Ended August 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
United States | $ | 408,253 | $ | 429,957 | $ | 400,070 | |||||||
Canada | 9,932 | 8,662 | 5,653 | ||||||||||
Mexico | 11,360 | 11,419 | 12,761 | ||||||||||
Columbia | 6,211 | 7,379 | 6,678 | ||||||||||
Japan | 1,591 | 5,112 | 4,380 | ||||||||||
Other | 6,526 | 4,721 | 3,609 | ||||||||||
Non-United States | 35,620 | 37,293 | 33,081 | ||||||||||
Total | $ | 443,873 | $ | 467,250 | $ | 433,151 | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||||||
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 2014 | First | Second | Third | Fourth | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Sales | $ | 109,251 | $ | 106,107 | $ | 119,429 | $ | 109,086 | $ | 443,873 | |||||||||||
Cost of sales | 98,542 | 93,938 | 104,561 | 92,525 | 389,566 | ||||||||||||||||
Gross margin | 10,709 | 12,169 | 14,868 | 16,561 | 54,307 | ||||||||||||||||
Net income | $ | 488 | $ | 1,240 | $ | 3,071 | $ | 2,954 | $ | 7,753 | |||||||||||
Earnings per common share: | |||||||||||||||||||||
Basic | $ | 0.04 | $ | 0.1 | $ | 0.24 | $ | 0.23 | $ | 0.62 | |||||||||||
Diluted | $ | 0.04 | $ | 0.1 | $ | 0.24 | $ | 0.23 | $ | 0.6 | |||||||||||
Dividends declared | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Business_Additional_Informatio
Business - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2014 | Mar. 25, 2014 | Mar. 31, 2014 | Aug. 31, 2014 | Jan. 31, 2012 | Oct. 14, 2014 |
Segment | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Carolina Starches, LLC [Member] | Ingredion Incorporated [Member] | |
Subsequent Event [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Number of segments | 2 | ' | ' | ' | ' | ' |
Purchase price | ' | $9,899 | $9,899 | $9,899 | $8,500 | $340,000 |
Proposed merger conversion of common shares into right to receive cash amount | ' | ' | ' | ' | ' | $19 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Effect of change in estimate on net income | $899,000 | ' | ' |
Increase in diluted earnings per share | $0.07 | ' | ' |
Depreciation of assets | 11,814,000 | 13,326,000 | 14,127,000 |
Interest capitalized | 2,000 | 107,000 | 48,000 |
Property, plant and equipment impairment charges | 0 | 0 | 0 |
Goodwill and other intangible assets impairment charges | 0 | 0 | 0 |
Research and development costs expensed | 5,609,000 | 5,870,000 | 5,838,000 |
Minimum percentage likelihood of tax benefit to be realized | 50.00% | ' | ' |
Sales Revenue, Goods, Net [Member] | Eco Energy, Inc [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Concentration of sales (in percentage) | 22.00% | 21.00% | 24.00% |
Sales Revenue, Goods, Net [Member] | Export Distribution Channel [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Concentration of sales (in percentage) | 8.00% | 8.00% | 7.60% |
Real Estate [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Depreciation of assets | $11,200,000 | $12,800,000 | $12,700,000 |
Cedar Rapids Plant [Member] | Number of Employees, Geographic Area [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of employees | 443 | ' | ' |
Perecentage of trade union employees | 34.00% | ' | ' |
Manufacturing workforce agreement expiration date | 'August 2015 | ' | ' |
Richland Wa Plant [Member] | Number of Employees, Geographic Area [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of employees | 15 | ' | ' |
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) | '30 Years | ' | ' |
Maximum [Member] | Real Estate [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Average useful life (in years) | '46 years | ' | ' |
Paper and Packaging Industries [Member] | Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Concentration of sales (in percentage) | 36.00% | 38.00% | 36.00% |
Paper Industry [Member] | Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of customers in paper industry primarily responsible for increase in allowance for doubtful accounts (in customers) | 2 | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Balance Beginning of Year | $280 | $78 | $1,305 |
Charged to Costs and Expenses | 115 | 241 | -42 |
Deductions and Other | -100 | -39 | -1,185 |
Balance End of Year | $295 | $280 | $78 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Components of Accrued Liabilities (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Employee-related costs | $5,271 | $3,931 |
Other | 4,508 | 4,276 |
Accrued liabilities | $9,779 | $8,207 |
Inventories_Components_of_Inve
Inventories - Components of Inventory (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $10,069 | $10,381 |
Work in progress | 1,322 | 1,913 |
Finished goods | 30,360 | 21,698 |
Total inventories | $41,751 | $33,992 |
Property_and_Equipment_Compone
Property and Equipment - Components of Property and Equipment (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $389,339 | $377,045 |
Accumulated depreciation | -274,535 | -264,904 |
Property, plant and equipment, net | 114,804 | 112,141 |
Land and Land Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 12,512 | 11,881 |
Plant and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 369,224 | 359,909 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $7,603 | $5,255 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' |
Equipment under capital leases | $1.30 | $0.80 |
Payables related to property, plant and equipment | $0.90 | $0.70 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $10,129,000 | $7,978,000 | $7,978,000 |
Impairment to the recorded value of goodwill | 0 | ' | ' |
Goodwill and other intangible assets impairment charges | 0 | 0 | 0 |
Intangible asset residual value | 0 | ' | ' |
Weighted average remaining amortization period (in years) | '5 years | ' | ' |
Trade names/brand portfolio | 2,700,000 | ' | ' |
Amortization expense related to intangible assets | 300,000 | 100,000 | 100,000 |
Amortization expense related to intangible assets in 2015 | 300,000 | ' | ' |
Amortization expense related to intangible assets in 2016 | 300,000 | ' | ' |
Amortization expense related to intangible assets in 2017 | 300,000 | ' | ' |
Amortization expense related to intangible assets in 2018 | 300,000 | ' | ' |
Amortization expense related to intangible assets in 2019 | 300,000 | ' | ' |
Customer Lists and Relationships [Member] | ' | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Weighted average remaining amortization period (in years) | '13 years | ' | ' |
Non-compete Agreement [Member] | ' | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Weighted average remaining amortization period (in years) | '5 years | ' | ' |
Food Ingredients [Member] | ' | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 10,100,000 | 8,000,000 | ' |
Impairment to the recorded value of goodwill | $0 | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Summary of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2012 |
Intangible Liability Disclosure [Abstract] | ' | ' |
Goodwill, beginning of year | $7,978 | $7,978 |
Acquisition of Gum Technology | 2,151 | ' |
Goodwill, end of year | $10,129 | $7,978 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Intangible Assets By Major Class [Line Items] | ' | ' |
Carrying Amount | $8,030 | $2,038 |
Accumulated Amortization | 2,011 | 1,725 |
Trade Names/Brand Portfolio [Member] | ' | ' |
Acquired Intangible Assets By Major Class [Line Items] | ' | ' |
Carrying Amount | 2,910 | ' |
Accumulated Amortization | 35 | ' |
Patents and Other [Member] | ' | ' |
Acquired Intangible Assets By Major Class [Line Items] | ' | ' |
Carrying Amount | 1,870 | 1,748 |
Accumulated Amortization | 1,572 | 1,538 |
Customer Lists and Relationships [Member] | ' | ' |
Acquired Intangible Assets By Major Class [Line Items] | ' | ' |
Carrying Amount | 3,060 | 190 |
Accumulated Amortization | 296 | 154 |
Non-compete Agreement [Member] | ' | ' |
Acquired Intangible Assets By Major Class [Line Items] | ' | ' |
Carrying Amount | 190 | 100 |
Accumulated Amortization | $108 | $33 |
Debt_Longterm_Debt_and_Capital
Debt - Long-term Debt and Capital Lease Obligations Current and Non Current (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Capital lease obligations | $849 | $231 |
Debt and capital lease obligations, including current portion and short-term borrowings | 76,849 | 72,970 |
Less: current portion of long-term debt and capital lease obligations | 184 | 231 |
Long-term debt and capital lease obligations | 76,665 | 72,739 |
Secured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Carrying amount of debt | 76,000 | 71,506 |
Iowa Department of Economic Development Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Carrying amount of debt | $0 | $1,233 |
Debt_Longterm_Debt_and_Capital1
Debt - Long-term Debt and Capital Lease Obligations Current and Non Current (Parenthetical) (Detail) (Secured Debt [Member]) | Aug. 31, 2014 |
Secured Debt [Member] | ' |
Debt Instrument [Line Items] | ' |
Secured credit agreements - weighted average interest rate (in percentage) | 3.16% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
Aug. 01, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2012 | Jul. 31, 2012 | Aug. 01, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | |
2014 Agreement [Member] | 2014 Agreement [Member] | 2014 Agreement [Member] | 2014 Agreement [Member] | 2014 Agreement [Member] | 2014 Agreement [Member] | 2014 Agreement [Member] | 2014 Agreement [Member] | 2014 Agreement [Member] | 2014 Agreement [Member] | 2012 Agreement[Member] | 2012 Agreement[Member] | Term Loan Agreement [Member] | Term Loan Agreement [Member] | Term Loan Agreement [Member] | Term Loan Agreement [Member] | |
Minimum [Member] | Maximum [Member] | Scenario, Forecast [Member] | Two Consecutive Quarters [Member] | Base Rate [Member] | Base Rate [Member] | Eurodollar [Member] | Eurodollar [Member] | Series A Preferred Stock [Member] | Minimum [Member] | Scenario, Forecast [Member] | ||||||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | ' | 25,000,000 | ' | ' | ' |
Borrowing capacity under line of credit facility | 145,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument principal payments | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Debt instrument maturity date | 1-Aug-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Jul-20 | ' | ' | ' |
Line of credit, amount outstanding | ' | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Debt instrument, base rate margin | ' | ' | ' | ' | ' | ' | 1.00% | 2.50% | 2.00% | 3.50% | ' | ' | ' | ' | ' | ' |
Covenant, maximum total leverage ratio permitted through August 31, 2015 | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.5 |
Covenant, maximum total leverage ratio permitted from November 30, 2015 through August 31, 2016 | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Covenant, maximum total leverage ratio permitted from November 30, 2016 through August 31, 2017 | ' | ' | ' | ' | 4.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.75 |
Covenant, maximum total leverage ratio permitted after August 31, 2017 | ' | ' | ' | ' | 3.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25 |
Covenant, fixed coverage ratio | ' | ' | 1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | ' |
Covenant, amount of capital expenditure permitted | ' | ' | 25,000,000 | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant, total leverage ratio restricting capital expenditures | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant, dividend declaration permitted | ' | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant, dividend declaration permitted as a percentage of cash flow | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anniversary period of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' |
Debt_Iowa_Department_of_Econom
Debt - Iowa Department of Economic Development - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Dec. 01, 2009 | 31-May-14 | 31-May-14 | Aug. 31, 2014 | |
Iowa Department of Economic Development Loans [Member] | Iowa Department of Economic Development Loans [Member] | Iowa Department of Economic Development Loans [Member] | Iowa Department of Economic Development Loans [Member] | ||||
SecurityLoan | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Non interest bearing loans | ' | ' | ' | $1,000,000 | ' | ' | ' |
Number of monthly payments | ' | ' | ' | ' | ' | ' | '60 equal monthly payments |
Number of non interest bearing loans | ' | ' | ' | 2 | ' | ' | ' |
Loan period (in years) | ' | ' | ' | '5 years | ' | ' | ' |
Potentially forgivable loan amount | ' | ' | ' | 1,000,000 | ' | ' | ' |
Periodic repayments of loan | ' | ' | ' | 16,667,000 | ' | ' | ' |
Repayment of outstanding balance | 367,000 | 200,000 | 200,000 | ' | ' | 1,000,000 | ' |
Forgivable loan amount forgiven | -1,000,000 | ' | ' | ' | 1,000,000 | ' | ' |
Capital lease obligations | 849,000 | 231,000 | ' | ' | ' | ' | ' |
Current portion of capital leases | $200,000 | ' | ' | ' | ' | ' | ' |
Debt_Schedule_of_Maturities_of
Debt - Schedule of Maturities of Long-term Debt (Detail) (USD $) | Aug. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2015 | $184 |
2016 | 209 |
2017 | 225 |
2018 | 221 |
2019 and thereafter | 76,010 |
Total | $76,849 |
Stockholders_Equity_Common_Sha
Stockholders' Equity - Common Shares Outstanding (Detail) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Balance, beginning of year | 14,454,181 | 14,280,718 | 13,243,385 |
Series B preferred stock converted to common shares | ' | ' | 1,000,000 |
Exercise of stock options | 64,824 | 121,226 | ' |
Issuance of restricted stock, net | 24,489 | 52,237 | 37,333 |
Balance, end of year | 14,543,494 | 14,454,181 | 14,280,718 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | |
Conversion of Stock [Line Items] | ' | ' | ' | ' | ' |
Unvested restricted shares excluded from common stock | 173,060 | 24,489 | 0 | ' | ' |
Series B preferred stock | ' | ' | ' | 100,000 | ' |
Series B preferred stock converted to common shares | ' | ' | ' | ' | 1,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Summary of Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | ($7,619) | ($15,593) | ($7,559) |
Other comprehensive income (loss), net of taxes | -133 | 7,974 | -8,034 |
Ending Balance | -7,752 | -7,619 | -15,593 |
Cash Flow Hedging Instruments [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -856 | 1,638 | 731 |
Other comprehensive income (loss), net of taxes | -1,166 | -2,494 | 907 |
Ending Balance | -2,022 | -856 | 1,638 |
Postretirement Obligations [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -6,763 | -17,231 | -8,290 |
Other comprehensive income (loss), net of taxes | 1,033 | 10,468 | -8,941 |
Ending Balance | ($5,730) | ($6,763) | ($17,231) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of actuarial loss (gain), Tax | ' | ' | ' | ' | ' | ' | ' | ' | $166 | $869 | $242 |
Amortization of actuarial loss (gain), Net of Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 266 | 1,419 | 395 |
Before Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | -12,474 | -5,490 | 4,760 |
Tax | ' | ' | ' | ' | ' | ' | ' | ' | 4,721 | 1,483 | 4,806 |
Net of Tax Amount | -2,954 | -3,071 | -1,240 | -488 | 949 | -2,058 | -1,191 | -1,707 | -7,753 | -4,007 | 9,566 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Before Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 12,624 | ' | ' |
Tax | ' | ' | ' | ' | ' | ' | ' | ' | -4,848 | ' | ' |
Net of Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 7,776 | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of actuarial loss (gain), Before Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 263 | ' | ' |
Amortization of actuarial loss (gain), Tax | ' | ' | ' | ' | ' | ' | ' | ' | -101 | ' | ' |
Amortization of actuarial loss (gain), Net of Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 162 | ' | ' |
Amortization of prior service cost, Before Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 45 | ' | ' |
Amortization of prior service cost, Tax | ' | ' | ' | ' | ' | ' | ' | ' | -17 | ' | ' |
Amortization of prior service cost, Net of Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 28 | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Operating/R&D Expenses [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of actuarial loss (gain), Before Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 88 | ' | ' |
Amortization of actuarial loss (gain), Tax | ' | ' | ' | ' | ' | ' | ' | ' | -34 | ' | ' |
Amortization of actuarial loss (gain), Net of Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 54 | ' | ' |
Amortization of prior service cost, Before Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 36 | ' | ' |
Amortization of prior service cost, Tax | ' | ' | ' | ' | ' | ' | ' | ' | -14 | ' | ' |
Amortization of prior service cost, Net of Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 22 | ' | ' |
Postretirement Obligations [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Before Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 432 | ' | ' |
Tax | ' | ' | ' | ' | ' | ' | ' | ' | -166 | ' | ' |
Net of Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 266 | ' | ' |
Cash Flow Hedging Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Before Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | 12,192 | ' | ' |
Tax | ' | ' | ' | ' | ' | ' | ' | ' | -4,682 | ' | ' |
Net of Tax Amount | ' | ' | ' | ' | ' | ' | ' | ' | $7,510 | ' | ' |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Operating Leased Assets [Line Items] | ' | ' | ' |
Rental expense under operating leases, net | $6,400,000 | $6,300,000 | $6,000,000 |
Minimum lease payment, operating lease | 27,279,000 | ' | ' |
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 | ' | ' |
Rail Car [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Minimum lease payment, operating lease | $22,900,000 | ' | ' |
Leases_Future_Minimum_Lease_Pa
Leases - Future Minimum Lease Payments for Noncancelable Operating and Capital Leases (Detail) (USD $) | Aug. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2015 | $292 |
2016 | 290 |
2017 | 275 |
2018 | 239 |
2019 | 4 |
Thereafter | 7 |
Total minimum lease payments | 1,107 |
Less: amounts representing interest | -258 |
Net minimum lease payments, Capital Leases | 849 |
2015 | 5,928 |
2016 | 4,690 |
2017 | 3,605 |
2018 | 2,737 |
2019 | 2,161 |
Thereafter | 8,158 |
Total minimum lease payments, Operating Leases | $27,279 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||
Aug. 31, 2014 | Aug. 31, 2013 | Jan. 11, 2012 | Aug. 31, 2014 | Mar. 25, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | 31-May-14 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Jan. 01, 2014 | Jan. 01, 2013 | Jan. 26, 2012 | |
Carolina Starches, LLC [Member] | 2006 Incentive Plan [Member] | Compensatory Stock Options [Member] | Compensatory 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] | Stock Options [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] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | |||
Gum Technology [Member] | Gum Technology [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] | 2006 Incentive Plan [Member] | 2006 Incentive Plan [Member] | ||||||||||
Employees | Minimum [Member] | Maximum [Member] | Vesting Period One Year [Member] | Vesting Period Two Years [Member] | Vesting Period Three Years [Member] | Vesting Period Three Years [Member] | Vesting Period Three Years [Member] | Non Employee Directors [Member] | Non Employee Directors [Member] | Non Employee Directors [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares available for issuance under the plan | ' | ' | ' | 176,542 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period (in years) | ' | ' | '2 years | ' | '3 years | '3 years | ' | '1 year | '4 years | ' | ' | ' | ' | '1 year | '2 years | '3 years | '3 years | '3 years | ' | ' | ' | ' | '1 year | '1 year | '1 year |
Expiration period (in years) | ' | ' | ' | ' | '7 years | '7 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price of Company's stock | $13.62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | $536,600 | $835,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of key former employees | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted during the period | ' | ' | 82,500 | ' | 45,000 | ' | ' | ' | ' | ' | 36,000 | 120,000 | 678,000 | 3,000 | 75,000 | 33,000 | 45,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Option term | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense related to non-vested awards not yet recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period over which unrecognized compensation cost will be recognized (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 4 months 24 days | ' | ' | ' | ' | ' |
Total fair value of restricted stock vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 400,000 | 1,000,000 | ' | ' | ' |
Number of shares issued for non-employee director, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,556 | 2,721 | 3,539 |
Restricted stock awards granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 157,500 | 173,060 | ' | ' | ' | ' | ' |
Compensation expense related to unvested awards not yet recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,600,000 | ' | ' | ' | ' | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2014 | 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, end of period, Shares | ' | ' | ' | 1,517,588 | ' | ' | ' | ' | ' | ' | ' | ' | 1,429,000 | ' | ' | ' | ' | ' |
Options outstanding, beginning of period, Shares | ' | ' | ' | 1,517,588 | ' | ' | ' | ' | ' | ' | ' | ' | 1,429,000 | ' | ' | ' | ' | ' |
Shares, Granted | ' | ' | ' | ' | ' | ' | 81,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares, Exercised | -82,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares, Cancelled | ' | ' | ' | ' | ' | ' | ' | ' | ' | -87,088 | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, end of period, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,072,502 | ' | ' |
Option Price Range, Outstanding Beginning of the period | $10.30 | ' | ' | ' | $4.66 | $21.73 | ' | ' | ' | ' | ' | ' | ' | $4.66 | $21.73 | ' | ' | ' |
Option Price Range, Granted | $13.48 | ' | ' | ' | ' | ' | ' | $11.44 | $14.36 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Price Range, Exercised | $6.27 | $5.29 | $8.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Price Range, Cancelled | $15.13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.88 | $19.77 | ' | ' | ' | ' | ' | ' |
Option Price Range, Outstanding end of the period | $10.42 | ' | ' | ' | $4.66 | $21.73 | ' | ' | ' | ' | ' | ' | ' | $4.66 | $21.73 | ' | ' | ' |
Options Price Range, Exercisable end of period | $11.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.66 | $21.73 |
Weighted Average Remaining Term, Outstanding, Ending balance (in years) | '3 years 2 months 1 day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Term, Options exercisable (in years) | '2 years 6 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic value, Outstanding, Ending balance | $6,160,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic value, Options exercisable | $4,084,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 55.00% | 68.00% | 68.00% |
Expected life (years) | '5 years | '4 years 8 months 12 days | '4 years 10 months 24 days |
Interest rate, minimum | 1.10% | 0.50% | 0.50% |
Interest rate, maximum | 2.10% | 1.00% | 1.10% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair values | $6.44 | $4.60 | $3.13 |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Share-Based Compensation, Restricted Stock Award Activity (Detail) (Restricted Stock [Member], USD $) | 9 Months Ended | 12 Months Ended | |
31-May-14 | Aug. 31, 2014 | Aug. 31, 2012 | |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares, Nonvested at August 31, 2013 | 24,489 | 24,489 | 0 |
Shares, Granted | 157,500 | 173,060 | ' |
Shares, Vested | ' | -24,489 | ' |
Shares, Cancelled | ' | ' | ' |
Shares, Nonvested at August 31, 2014 | ' | 173,060 | 0 |
Weighted-Average Grant-Date Fair Value, Beginning balance (in USD per share) | $7.35 | $7.35 | ' |
Weighted-Average Grant-Date Fair Value, Granted (in USD per share) | ' | $12.64 | ' |
Weighted-Average Grant-Date Fair Value, Vested (in USD per share) | ' | $7.35 | ' |
Weighted-Average Grant-Date Fair Value, Cancelled (in USD per share) | ' | $0 | ' |
Weighted-Average Grant-Date Fair Value, Ending balance (in USD per share) | ' | $12.64 | ' |
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, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $1,344 | $1,404 | $1,387 |
Income tax benefit | -516 | -534 | -527 |
Total stock-based compensation expense, net of tax | 828 | 870 | 860 |
Cost of Sales [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 21 | ' | 48 |
Operating Expense [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 1,310 | 1,404 | 1,324 |
Research and Development Expense [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $13 | ' | $15 |
Pensions_and_Other_Postretirem2
Pensions and Other Postretirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
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% | ' | ' |
Employer contributions | $2,500,000 | $1,100,000 | $4,100,000 |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.91% | ' | ' |
Decrease in pension net periodic benefit cost | 800,000 | ' | ' |
Expected long-term return on assets assumption used to calculate net periodic pension expense (in percentage) | 7.00% | 7.00% | 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 | 300,000 | ' | ' |
Discount rate (in percentage) | 5.24% | 4.28% | 5.87% |
Discount rate (in percentage) | 4.39% | 5.24% | 4.28% |
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 | 200,000 | ' | ' |
Employer contributions | 2,502,000 | 1,136,000 | ' |
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) | 4.39% | ' | ' |
Defined Benefit Plan, Amortization of Net Gains (Losses), next fiscal year | 100,000 | ' | ' |
Pension Benefits [Member] | Prior To Amendment [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 5.24% | ' | ' |
Other Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate (in percentage) | 5.24% | 4.28% | 5.87% |
Discount rate (in percentage) | 4.39% | 5.24% | 4.28% |
Hypothetical decrease in the discount rate assumption, to determine impact on expense (in percentage) | 0.25% | ' | ' |
Employer contributions | $755,000 | $551,000 | ' |
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, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Change in plan assets: | ' | ' | ' |
Company contributions | $2,500 | $1,100 | $4,100 |
Recognized as: | ' | ' | ' |
Non-current accrued benefit liability | -18,726 | -16,596 | ' |
Pension Benefits [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation, beginning balance | 57,278 | 62,989 | ' |
Service cost | 1,350 | 1,945 | 1,521 |
Interest cost | 2,866 | 2,648 | 2,729 |
Plan curtailment | -2,705 | ' | ' |
Actuarial (gain) loss | -423 | -107 | ' |
Change in assumptions | 6,237 | -8,135 | ' |
Benefits paid | -2,176 | -2,062 | ' |
Benefit obligation, ending balance | 62,427 | 57,278 | 62,989 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, beginning balance | 46,726 | 42,072 | ' |
Actual return on plan assets | 9,623 | 5,580 | ' |
Company contributions | 2,502 | 1,136 | ' |
Benefits paid | -2,176 | -2,062 | ' |
Fair value of plan assets, ending balance | 56,675 | 46,726 | 42,072 |
Funded status: | ' | ' | ' |
Net liability - plan assets less than projected benefit obligation | -5,752 | -10,552 | ' |
Recognized as: | ' | ' | ' |
Non-current accrued benefit liability | -5,752 | -10,552 | ' |
Net amount recognized | -5,752 | -10,552 | ' |
Other Benefits [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation, beginning balance | 17,356 | 20,457 | ' |
Service cost | 112 | 235 | 229 |
Interest cost | 890 | 860 | 972 |
Plan participants' contributions | 110 | 106 | ' |
Actuarial (gain) loss | -346 | 267 | ' |
Change in assumptions | 2,243 | -3,912 | ' |
Benefits paid | -865 | -657 | ' |
Benefit obligation, ending balance | 19,500 | 17,356 | 20,457 |
Change in plan assets: | ' | ' | ' |
Company contributions | 755 | 551 | ' |
Plan participants' contributions | 110 | 106 | ' |
Benefits paid | -865 | -657 | ' |
Funded status: | ' | ' | ' |
Net liability - plan assets less than projected benefit obligation | -19,500 | -17,356 | ' |
Recognized as: | ' | ' | ' |
Current accrued benefit liability | -774 | -760 | ' |
Non-current accrued benefit liability | -18,726 | -16,596 | ' |
Net amount recognized | ($19,500) | ($17,356) | ' |
Pensions_and_Other_Postretirem4
Pensions and Other Postretirement Benefits - Components of Accumulated Other Comprehensive Loss Unrecognized (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Unrecognized prior service cost (credit) | $1,055 | $1,288 |
Unrecognized net actuarial loss | 6,600 | 10,091 |
Total | 7,655 | 11,379 |
Other Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Unrecognized prior service cost (credit) | -3 | -155 |
Unrecognized net actuarial loss | 1,579 | -318 |
Total | $1,576 | ($473) |
Pensions_and_Other_Postretirem5
Pensions and Other Postretirement Benefits - Benefit Obligations in Excess of Fair Value of Plan Assets (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Projected benefit obligation | $62,427 | $57,278 |
Accumulated benefit obligation | 62,427 | 54,389 |
Fair value of plan assets | $56,675 | $46,726 |
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, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $1,350 | $1,945 | $1,521 |
Interest cost | 2,866 | 2,648 | 2,729 |
Expected return on plan assets | -3,374 | -2,869 | -2,914 |
Amortization of prior service cost | 233 | 241 | 228 |
Amortization of actuarial loss | 351 | 1,932 | 773 |
Benefit cost | 1,426 | 3,897 | 2,337 |
Other Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 112 | 235 | 229 |
Interest cost | 890 | 860 | 972 |
Amortization of prior service cost | -152 | -152 | -152 |
Amortization of actuarial loss | ' | 267 | ' |
Benefit cost | $850 | $1,210 | $1,049 |
Pensions_and_Other_Postretirem7
Pensions and Other Postretirement Benefits - Benefit Plan Assumptions (Detail) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Pension Benefits [Member] | ' | ' | ' |
Weighted-average assumptions used to calculate net periodic expense: | ' | ' | ' |
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% |
Weighted-average assumptions used to calculate benefit obligations at August 31: | ' | ' | ' |
Discount rate | 4.39% | 5.24% | 4.28% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase | ' | 3.00% | 3.00% |
Other Benefits [Member] | ' | ' | ' |
Weighted-average assumptions used to calculate net periodic expense: | ' | ' | ' |
Discount rate | 5.24% | 4.28% | 5.87% |
Weighted-average assumptions used to calculate benefit obligations at August 31: | ' | ' | ' |
Discount rate | 4.39% | 5.24% | 4.28% |
Pensions_and_Other_Postretirem8
Pensions and Other Postretirement Benefits - Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Current health care trend assumption | 7.00% | 7.80% | 8.00% |
Ultimate health care trend rate | 4.50% | 4.50% | 4.50% |
Year ultimate health care trend is reached | '2033 | '2032 | '2030 |
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, 2014 |
Compensation and Retirement Disclosure [Abstract] | ' |
Effect on total of service and interest cost components in fiscal 2014, one percentage point increase in health care trend rate | $148 |
Effect on postretirement accumulated benefit obligation as of August 31, 2014, one percentage point increase in health care trend rate | 2,808 |
Effect on total of service and interest cost components in fiscal 2014, one percentage point decrease in health care trend rate | -122 |
Effect on postretirement accumulated benefit obligation as of August 31, 2014, one percentage point decrease in health care trend rate | ($2,324) |
Recovered_Sheet1
Pensions and Other Postretirement Benefits - Asset Allocation of Company's Pension Plan (Detail) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Fixed Income Investments [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target asset allocation | 25.00% | ' |
Weighted average asset allocation | 25.00% | 25.00% |
U.S. Equities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target asset allocation | 62.00% | ' |
Weighted average asset allocation | 62.00% | 55.00% |
International Equities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target asset allocation | 13.00% | ' |
Weighted average asset allocation | 13.00% | 15.00% |
Real Estate [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Weighted average asset allocation | ' | 5.00% |
Recovered_Sheet2
Pensions and Other Postretirement Benefits - Fair values of Assets of Company's Pension Plan (Detail) (USD $) | Aug. 31, 2014 |
In Thousands, unless otherwise specified | |
Fixed Income Investments [Member] | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' |
Fair value of plan assets | $14,092 |
U.S. Equities [Member] | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' |
Fair value of plan assets | 35,287 |
International Equities [Member] | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' |
Fair value of plan assets | 7,296 |
Real Estate [Member] | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' |
Fair value of plan assets | $56,675 |
Recovered_Sheet3
Pensions and Other Postretirement Benefits - Expected Benefit Payments (Detail) (USD $) | Aug. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | $2.50 |
2016 | 2.6 |
2017 | 2.8 |
2018 | 2.9 |
2019 | 3.1 |
2020-2024 | 18.6 |
Other Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | 1 |
2016 | 1 |
2017 | 1.1 |
2018 | 1.2 |
2019 | 1.3 |
2020-2024 | $8.20 |
Other_Employee_Benefits_Additi
Other Employee Benefits - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||||||||
Sep. 01, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Subsequent Event [Member] | Savings and Stock Ownership Plan [Member] | Savings and Stock Ownership Plan [Member] | Savings and Stock Ownership Plan [Member] | Deferred Compensation Plan [Member] | Deferred Compensation Plan [Member] | Deferred Compensation Plan [Member] | Supplemental Executive Retirement Plans [Member] | Supplemental Executive Retirement Plans [Member] | Supplemental Executive Retirement Plans [Member] | Postretirement Health Care and Life Insurance Benefits [Member] | Postretirement Health Care and Life Insurance Benefits [Member] | Postretirement Health Care and Life Insurance Benefits [Member] | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferral maximum salary percentage | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employer's match of the first 0% of an employee's salary contributed by that employee to the plan | 125.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of salary under first plan | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employer's match of the second 0% of an employee's salary contributed by that employee to the plan | 75.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's matching contributions | ' | $1,300,000 | $1,200,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension and postretirement benefits expense, deferred compensation arrangement | ' | ' | ' | ' | 185,000 | 177,000 | 179,000 | 274,000 | 271,000 | 258,000 | 5,100,000 | 5,900,000 | 5,100,000 |
Accrued pension plan obligation | ' | ' | ' | ' | ' | ' | ' | $2,700,000 | $2,700,000 | ' | ' | ' | ' |
Fair_Value_Measurements_and_De2
Fair Value Measurements and Derivative Instruments - Fair Values of Company's Derivative Instruments (Detail) (Commodity Contract [Member], USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Commodity derivatives | ($1,787) | $512 |
Other Current Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Commodity derivatives | -1,787 | 512 |
Level 1 [Member] | Other Current Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Commodity derivatives | -1,787 | 512 |
Level 2 [Member] | Other Current Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Commodity derivatives | ' | ' |
Level 3 [Member] | Other Current Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Commodity derivatives | ' | ' |
Fair_Value_Measurements_and_De3
Fair Value Measurements and Derivative Instruments - Reconciliation of Gross Fair Value of Assets and Liabilities Subject to Offsetting Arrangements (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | $413 | $997 |
Gross Liabilities Offset in the Balance Sheets | -2,200 | -485 |
Commodity Contract [Member] | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 413 | 997 |
Gross Liabilities Offset in the Balance Sheets | -2,200 | -485 |
Net Amount of Assets (Liabilities) | -1,787 | 512 |
Cash Collateral on Deposit with Counterparty | 3,490 | 1,700 |
Net Fair Value as Recorded in Balance Sheets | $1,703 | $2,212 |
Fair_Value_Measurements_and_De4
Fair Value Measurements and Derivative Instruments - Additional Information (Detail) (Commodity Contract [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2014 |
Commodity Contract [Member] | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' |
Pretax losses continued to be deferred in accumulated other comprehensive income (loss) | $2.10 |
Deferred gain (loss), net of tax, recorded in other comprehensive income | ($1.90) |
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, 2014 |
bu | |
Corn Futures [Member] | ' |
Derivative [Line Items] | ' |
Outstanding futures contracts | 5,705,000 |
Ethanol Swaps [Member] | ' |
Derivative [Line Items] | ' |
Outstanding futures contracts | 17,010,000 |
Fair_Value_Measurements_and_De6
Fair Value Measurements and Derivative Instruments - Fair Value of Company's Derivatives by Contract Type (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Assets Fair Value | $413 | $997 |
Liabilities Fair Value | 2,200 | 485 |
Commodity Contract [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets Fair Value | 413 | 997 |
Liabilities Fair Value | 2,200 | 485 |
Commodity Contract [Member] | Corn Futures [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets Fair Value | ' | ' |
Liabilities Fair Value | 320 | 485 |
Commodity Contract [Member] | Corn Futures [Member] | Fair Value Hedges [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets Fair Value | 413 | ' |
Liabilities Fair Value | ' | ' |
Commodity Contract [Member] | Ethanol Futures [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets Fair Value | ' | 997 |
Liabilities Fair Value | $1,880 | ' |
Fair_Value_Measurements_and_De7
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, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in AOCI | ($14,085) | $1,204 | $3,734 |
Amount of Gain (Loss) Reclassified from AOCI into Income | -12,192 | 5,228 | 2,271 |
Amount of Gain (Loss) Recognized in Income | -2,638 | -1,021 | 36 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Corn Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in AOCI | -3,073 | -407 | 2,067 |
Amount of Gain (Loss) Reclassified from AOCI into Income | -3,349 | 5,351 | 1,500 |
Amount of Gain (Loss) Recognized in Income | -2,307 | -870 | 36 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Natural Gas Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in AOCI | ' | ' | ' |
Amount of Gain (Loss) Reclassified from AOCI into Income | ' | ' | -492 |
Amount of Gain (Loss) Recognized in Income | ' | ' | ' |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Ethanol Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in AOCI | -11,012 | 1,611 | 1,667 |
Amount of Gain (Loss) Reclassified from AOCI into Income | -8,843 | -123 | 1,263 |
Amount of Gain (Loss) Recognized in Income | -331 | -151 | ' |
Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | Corn Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | 52 | 363 | 98 |
Derivative Not Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | -644 | 94 | -1,078 |
Derivative Not Designated as Hedging Instruments [Member] | Natural Gas Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | -662 | 94 | -1,082 |
Derivative Not Designated as Hedging Instruments [Member] | FX Contracts [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ' | ' | 6 |
Derivative Not Designated as Hedging Instruments [Member] | Soybean Oil Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ' | ' | 12 |
Derivative Not Designated as Hedging Instruments [Member] | Soybean Meal Futures [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | $18 | ' | ($14) |
Other_NonOperating_Income_Expe2
Other Non-Operating Income (Expense) - Other Non-Operating Income (Expense) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Component of Other Expense, Nonoperating [Abstract] | ' | ' | ' |
Other non-operating income (expense) | $766 | $75 | ($6,186) |
Series A Preferred Stock [Member] | ' | ' | ' |
Component of Other Expense, Nonoperating [Abstract] | ' | ' | ' |
Other non-operating income (expense) | ' | ' | -6,599 |
Loan Forgiveness [Member] | ' | ' | ' |
Component of Other Expense, Nonoperating [Abstract] | ' | ' | ' |
Other non-operating income (expense) | 1,000 | ' | ' |
Loss on Extinguishment of Debt [Member] | ' | ' | ' |
Component of Other Expense, Nonoperating [Abstract] | ' | ' | ' |
Other non-operating income (expense) | -265 | ' | ' |
Other [Member] | ' | ' | ' |
Component of Other Expense, Nonoperating [Abstract] | ' | ' | ' |
Other non-operating income (expense) | $31 | $75 | $413 |
Other_NonOperating_Income_Expe3
Other Non-Operating Income (Expense) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended |
Aug. 31, 2014 | Aug. 31, 2014 | 31-May-14 | Aug. 31, 2012 | |
Iowa Department of Economic Development Loans [Member] | Series A Preferred Stock [Member] | |||
Other Non Operating Income And Expenses [Line Items] | ' | ' | ' | ' |
Pre-tax non-cash charge to earnings as a result of refinancing | $300,000 | ' | ' | ' |
Redeemed shares | ' | ' | ' | 100,000 |
Original issue price of redeemed shares | ' | ' | ' | 40,000,000 |
Accrued dividend of redeemed shares | ' | ' | ' | 8,900,000 |
Accelerated discount accretion | ' | ' | ' | 5,500,000 |
Amortization of issuance cost | ' | ' | ' | 1,100,000 |
Forgivable loan amount forgiven | ' | ($1,000,000) | $1,000,000 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Income (loss) before income taxes | $12,500,000 | $5,500,000 | ($4,800,000) |
Foreign income (loss) before income taxes | -20,000 | 500,000 | 100,000 |
Foreign tax expense | 0 | 0 | 0 |
Valuation allowance | 98,000 | 12,537,000 | ' |
Net deferred tax assets | 1,992,000 | 6,466,000 | ' |
Total amount of gross unrecognized tax benefits, if recognized that would impact effective tax rate | 500,000 | ' | ' |
Accrued interest and penalties included in long-term tax liability | 100,000 | 100,000 | ' |
Liability decreased relating to unrecognized tax benefits | 25,000 | ' | ' |
Open tax year | '2010 | ' | ' |
Federal Alternative Minimum [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Tax credit carryforward amount | 3,600,000 | ' | ' |
Research and Development [Member] | ' | ' | ' |
Tax Credit Carryforward [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] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Valuation allowance | ' | 1,700,000 | ' |
Valuation allowance, amount reversed | 200,000 | ' | ' |
Charitable Contributions [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Valuation allowance | ' | 22,000 | ' |
Valuation allowance expiration period | '2014 | ' | ' |
Charitable contribution deduction limitation as a percentage of taxable income | 10.00% | ' | ' |
Carry forward period allowed | '5 years | ' | ' |
Interest Expense [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Liability decreased relating to unrecognized tax benefits | 15,000 | ' | ' |
Australian Operations [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Valuation allowance | ' | 10,900,000 | ' |
Domestic Tax Authority [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Operating loss Carryforwards | 200,000 | ' | ' |
Net operating loss carryforward, expiration year | '2030 | ' | ' |
State Tax Credits [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Operating loss Carryforwards | 15,200,000 | ' | ' |
State net operating loss carryforward expiration period | '2015 | ' | ' |
State net operating loss carryforward expiration period | '2030 | ' | ' |
Valuation allowance | $98,000 | ' | ' |
State Tax Credits [Member] | Period One [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Tax credit carry forward period | '3 years | ' | ' |
State Tax Credits [Member] | Period Two [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Tax credit carry forward period | '14 years | ' | ' |
Income_Taxes_Schedule_of_US_In
Income Taxes - Schedule of U.S. Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Current: | ' | ' | ' |
Federal | ($77) | ($422) | ($162) |
State | 85 | 80 | 3 |
Current Income Tax Expense (Benefit), Total | 8 | -342 | -159 |
Deferred: | ' | ' | ' |
Federal | 4,068 | 1,829 | 4,582 |
State | 645 | -4 | 383 |
Deferred income tax expense (benefit) | 4,713 | 1,825 | 4,965 |
Total | $4,721 | $1,483 | $4,806 |
Income_Taxes_Schedule_of_Alloc
Income Taxes - Schedule of Allocable Comprehensive Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income before taxes | $4,721 | $1,483 | $4,806 |
Comprehensive income (loss) | -83 | 4,887 | -4,924 |
Comprehensive tax expense | $4,638 | $6,370 | ($118) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Tax to Actual Provision for Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Statutory tax on income | $4,366 | $1,921 | ($1,666) |
State taxes, net of federal benefit | 501 | 94 | 219 |
Non-deductible expenses related to preferred stock | ' | ' | 4,547 |
Research credit | -33 | -189 | -73 |
Foreign taxes | 8 | -183 | -38 |
Stock option exercises/expirations | 51 | 376 | ' |
Prior year true up | 31 | -265 | 95 |
Unrecognized tax benefits | -165 | -359 | -165 |
Valuation allowance | -156 | -104 | 1,787 |
Other | 118 | 192 | 100 |
Total | $4,721 | $1,483 | $4,806 |
Income_Taxes_Schedule_of_Signi
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Alternative minimum tax credit | $3,645 | $3,473 |
Postretirement benefits | 10,697 | 11,920 |
Provisions for accrued expenses | 2,881 | 2,791 |
Stock-based compensation | 2,581 | 2,453 |
Net operating loss carryforward | 801 | 4,575 |
Tax credit carryforwards | 2,743 | 4,373 |
Net operating loss carryforward - foreign | ' | 10,853 |
Hedging | 1,257 | 525 |
Other | 867 | 2,092 |
Total deferred tax assets gross | 25,472 | 43,055 |
Less - valuation allowance | -98 | -12,537 |
Total deferred tax assets | 25,374 | 30,518 |
Deferred tax liabilities: | ' | ' |
Depreciation | 22,413 | 22,296 |
Prepaid expenses | 867 | 842 |
Other | 102 | 914 |
Total deferred tax liabilities | 23,382 | 24,052 |
Net deferred tax assets | 1,992 | 6,466 |
Recognized as: | ' | ' |
Other current assets | 2,432 | 1,479 |
Other liabilities | -440 | ' |
Deferred tax asset | ' | 4,987 |
Total net deferred tax assets | $1,992 | $6,466 |
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, 2014 | Aug. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized tax benefits at beginning of year | $706 | $1,058 |
Additions for tax positions related to prior years | 14 | 134 |
Additions for tax positions related to current year | 92 | 90 |
Reductions due to lapse of applicable statute of limitations | -309 | -576 |
Unrecognized tax benefits at end of year | $503 | $706 |
Recovered_Sheet4
Earnings (loss) per Common Share - Reconciliation of Income (Loss) 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, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $2,954 | $3,071 | $1,240 | $488 | ($949) | $2,058 | $1,191 | $1,707 | $7,753 | $4,007 | ($9,566) |
Less: allocation to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -44 | -11 | ' |
Net income (loss) applicable to common shares and equivalents | ' | ' | ' | ' | ' | ' | ' | ' | $7,709 | $3,996 | ($9,566) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares and equivalents outstanding, basic | ' | ' | ' | ' | ' | ' | ' | ' | 12,514,869 | 12,369,487 | 12,293,749 |
Dilutive stock options and awards | ' | ' | ' | ' | ' | ' | ' | ' | 343,000 | 249,000 | ' |
Weighted average common shares and equivalents outstanding, diluted | ' | ' | ' | ' | ' | ' | ' | ' | 12,857,580 | 12,618,158 | 12,293,749 |
Recovered_Sheet5
Earnings (loss) per Common Share - Additional Information (Detail) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | |
Restricted Stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive weighted-average restricted stock awards/options excluded from the calculation of diluted earnings (loss) per share | ' | ' | 57,443 |
Stock Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive weighted-average restricted stock awards/options excluded from the calculation of diluted earnings (loss) per share | 601,229 | 896,354 | 1,648,704 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2014 | Mar. 25, 2014 | Mar. 31, 2014 | Aug. 31, 2014 | Mar. 25, 2014 | Mar. 25, 2014 | Aug. 31, 2014 | Mar. 25, 2014 | Mar. 25, 2014 | Sep. 25, 2014 | Jan. 11, 2012 | Jan. 31, 2012 | Jan. 11, 2012 | Aug. 31, 2014 | |
Non-compete Agreement [Member] | Customer Relationships [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Carolina Starches, LLC [Member] | Carolina Starches, LLC [Member] | Carolina Starches, LLC [Member] | Carolina Starches, LLC [Member] | ||||
Holdback [Member] | Compensatory Stock Options [Member] | Compensatory Stock Options [Member] | First Installment [Member] | Second Installment [Member] | Subsequent Event [Member] | |||||||||||||
Installment | Employees | Holdback [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | $9,899,000 | $9,899,000 | $9,899,000 | ' | ' | ' | ' | ' | ' | ' | $8,500,000 | ' | ' |
Purchase price held for post-closing obligations | ' | ' | ' | ' | ' | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Holdback repayable period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | '6 months | ' | ' | ' | ' | ' |
Payment made to seller | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 375,000 | ' | ' | ' | ' |
Acquisition costs | ' | ' | ' | ' | ' | 86,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of installments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 1,344,000 | 1,404,000 | 1,387,000 | ' | ' | ' | ' | ' | ' | ' | 76,000 | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of key former employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' | ' | 82,500 | ' |
Contractual term of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | '7 years | ' | ' | ' | ' | ' | ' | ' |
Vesting period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | '2 years | ' |
Amortization period | ' | ' | ' | '5 years | '13 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,500,000 | ' | ' | ' |
Date of acquisition agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11-Jan-12 |
Acquisitions_Schedule_of_Acqui
Acquisitions - Schedule of Acquisition (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2012 | Mar. 25, 2014 | Mar. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 |
Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | Gum Technology [Member] | ||
Working capital adjustment [Member] | Holdback [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Cash paid at closing | $8,347 | ' | ' | $9,086 | ' | ' |
Accrued liabilities | ' | ' | ' | ' | 63 | 750 |
Total purchase price | ' | $9,899 | $9,899 | $9,899 | ' | ' |
Acquisitions_Purchase_Price_Al
Acquisitions - Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Detail) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | ' | ' | ' |
Trade names/brand portfolio | $2,700 | ' | ' |
Goodwill | 10,129 | 7,978 | 7,978 |
Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Working capital | 2,107 | ' | ' |
Trade names/brand portfolio | 2,700 | ' | ' |
Goodwill | 2,151 | ' | ' |
Other assets | 51 | ' | ' |
Total purchase price | 9,899 | ' | ' |
Preliminary Allocation [Member] | Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Working capital | 2,133 | ' | ' |
Trade names/brand portfolio | 2,700 | ' | ' |
Goodwill | 1,934 | ' | ' |
Other assets | 51 | ' | ' |
Total purchase price | 9,908 | ' | ' |
Adjustments [Member] | Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Working capital | -26 | ' | ' |
Goodwill | 217 | ' | ' |
Total purchase price | -9 | ' | ' |
Non-compete Agreement [Member] | Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Finite lived intangible assets | 90 | ' | ' |
Non-compete Agreement [Member] | Preliminary Allocation [Member] | Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Finite lived intangible assets | 490 | ' | ' |
Non-compete Agreement [Member] | Adjustments [Member] | Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Finite lived intangible assets | -400 | ' | ' |
Customer Relationships [Member] | Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Finite lived intangible assets | 2,800 | ' | ' |
Customer Relationships [Member] | Preliminary Allocation [Member] | Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Finite lived intangible assets | 2,600 | ' | ' |
Customer Relationships [Member] | Adjustments [Member] | Gum Technology [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Finite lived intangible assets | $200 | ' | ' |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of segments | 2 |
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, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $109,086 | $119,429 | $106,107 | $109,251 | $117,427 | $121,719 | $110,082 | $118,022 | $443,873 | $467,250 | $433,151 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 11,814 | 13,326 | 14,127 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 15,291 | 9,404 | 10,059 |
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | 12,994 | 14,199 | 14,146 |
Total assets | 239,190 | ' | ' | ' | 224,618 | ' | ' | ' | 239,190 | 224,618 | ' |
Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 317,283 | 356,016 | 330,607 |
Food Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 126,590 | 111,234 | 102,544 |
Industrial Starch [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 158,379 | 177,382 | 156,945 |
Ethanol [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 96,718 | 96,852 | 101,874 |
By-Products [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 62,186 | 81,782 | 71,788 |
Operating Segments [Member] | Industrial Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 9,219 | 10,933 | 10,879 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 2,587 | -3,238 | -928 |
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | 8,566 | 8,997 | 8,700 |
Total assets | 135,973 | ' | ' | ' | 133,120 | ' | ' | ' | 135,973 | 133,120 | ' |
Operating Segments [Member] | Food Ingredients [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2,260 | 2,061 | 1,989 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 24,345 | 23,265 | 21,591 |
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | 4,428 | 5,202 | 5,446 |
Total assets | 89,781 | ' | ' | ' | 68,550 | ' | ' | ' | 89,781 | 68,550 | ' |
Corporate, Non-Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 335 | 332 | 1,259 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | -11,641 | -10,623 | -10,604 |
Capital expenditures, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | $13,436 | ' | ' | ' | $22,948 | ' | ' | ' | $13,436 | $22,948 | ' |
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, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Segment Reporting [Abstract] | ' | ' | ' |
Income from operations | $15,291 | $9,404 | $10,059 |
Interest expense | -3,583 | -3,989 | -8,633 |
Other non-operating income (expense) | 766 | 75 | -6,186 |
Income (loss) before income taxes | $12,474 | $5,490 | ($4,760) |
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, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $109,086 | $119,429 | $106,107 | $109,251 | $117,427 | $121,719 | $110,082 | $118,022 | $443,873 | $467,250 | $433,151 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 408,253 | 429,957 | 400,070 |
Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 9,932 | 8,662 | 5,653 |
Mexico [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 11,360 | 11,419 | 12,761 |
Columbia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 6,211 | 7,379 | 6,678 |
Japan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,591 | 5,112 | 4,380 |
Other Country [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 6,526 | 4,721 | 3,609 |
Non-United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | $35,620 | $37,293 | $33,081 |
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, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $109,086 | $119,429 | $106,107 | $109,251 | $117,427 | $121,719 | $110,082 | $118,022 | $443,873 | $467,250 | $433,151 |
Cost of sales | 92,525 | 104,561 | 93,938 | 98,542 | 109,830 | 108,528 | 99,081 | 104,764 | 389,566 | 422,203 | 389,241 |
Gross margin | 16,561 | 14,868 | 12,169 | 10,709 | 7,597 | 13,191 | 11,001 | 13,258 | 54,307 | 45,047 | 43,910 |
Net income | $2,954 | $3,071 | $1,240 | $488 | ($949) | $2,058 | $1,191 | $1,707 | $7,753 | $4,007 | ($9,566) |
Earnings (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.24 | $0.23 | $0.10 | $0.04 | ($0.08) | $0.17 | $0.10 | $0.14 | $0.62 | $0.32 | ($0.78) |
Diluted | $0.22 | $0.23 | $0.10 | $0.04 | ($0.08) | $0.16 | $0.10 | $0.14 | $0.60 | $0.32 | ($0.78) |
Dividends declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal_Proceedings_and_Continge1
Legal Proceedings and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended |
Apr. 30, 2012 | Aug. 31, 2014 | Oct. 31, 2014 | Mar. 31, 2014 | |
Patents | Defendants | Penford Products [Member] | Carolina Starches, LLC [Member] | |
Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Number of patents under allegation of patent infringement | 2 | ' | ' | ' |
Number of defendants | ' | 2 | ' | ' |
Name of defendants | ' | 'Penford Products and Carolina Starches, LLC | ' | ' |
Name of plaintiff | ' | 'Pirinate Consulting Group, LLC | ' | ' |
Payment for full and final settlement of litigation | ' | ' | $50,000 | $10,000 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Ingredion Incorporated [Member], Subsequent Event [Member], USD $) | 0 Months Ended |
Oct. 14, 2014 | |
Ingredion Incorporated [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Purchase money | $340,000,000 |
Proposed merger conversion of common shares into right to receive cash amount | $19 |
Merger agreement termination fee | 7,600,000 |
Expenses incurred for merger agreement | $2,000,000 |