Income Taxes (Tables)

12 Months Ended

Aug. 31, 2012

Schedule of Income Tax Expense (Benefit) on Continuing Operations

Income tax expense (benefit) on continuing operations consists of the following:

	Year Ended August 31,
	2012			2011		2010
	(Dollars in thousands)
Current:
Federal	$	(162	)	$	34	$	(332	)
State		3			137		208
		(159	)		171		(124	)
Deferred:
Federal		4,582			9		(4,447	)
State		383			133		(131	)
		4,965			142		(4,578	)
Total	$	4,806		$	313	$	(4,702	)

Schedule of Allocable Comprehensive Tax Expense (Benefit)

	Year Ended August 31,
	2012			2011		2010
	(Dollars in thousands)
Comprehensive tax expense (benefit) allocable to:
Income (loss) before taxes	$	4,806		$	313	$	(4,702	)
Discontinued operations		—			—		(4,495	)
Comprehensive income (loss)		(4,924	)		3,856		891
	$	(118	)	$	4,169	$	(8,306	)

Reconciliation of Statutory Federal Tax to Actual Provision (Benefit) for Taxes

A reconciliation of the statutory federal tax to the actual provision (benefit) for taxes is as follows:

	Year Ended August 31,
	2012			2011			2010
	(Dollars in thousands)
Statutory tax rate		35	%		35	%		35	%
Statutory tax on income	$	(1,666	)	$	(1,682	)	$	(5,016	)
State taxes, net of federal benefit		219			52			33
Non-deductible expenses related to preferred stock		4,547			2,687			1,020
Research credit		(73	)		(195	)		(54	)
Ethanol credit		—			(975	)		(975	)
Foreign tax loss with no benefit		(38	)		200			34
Prior year true up		95			79			306
Unrecognized tax benefits		(165	)		67			(139	)
Valuation allowance		1,787			—			—
Other		100			80			89
Total provision (benefit)	$	4,806		$	313		$	(4,702	)

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities are as follows:

	August 31,
	2012			2011
	(Dollars in thousands)
Deferred tax assets:
Alternative minimum tax credit	$	3,354		$	3,108
Postretirement benefits		18,060			12,377
Provisions for accrued expenses		2,908			1,893
Stock-based compensation		2,420			2,357
Deferred flood losses		—			2,625
Net operating loss carryforward		7,469			8,242
Tax credit carryforwards		4,152			4,325
Other		2,025			2,935
		40,388			37,862
Less — valuation allowance		(1,787	)		—
Total deferred tax assets		38,601			37,862
Deferred tax liabilities:
Depreciation		21,762			21,678
Hedging		1,004			448
Other		2,560			2,132
Total deferred tax liabilities		25,326			24,258
Net deferred tax assets	$	13,275		$	13,604
Recognized as:
Other current assets	$	167		$	909
Deferred tax asset		13,108			12,695
Total net deferred tax assets	$	13,275		$	13,604

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in thousands):

	2012			2011
Unrecognized tax benefits at beginning of year	$	1,220		$	1,131
Additions for tax positions related to prior years		112			82
Additions for tax positions related to current year		62			97
Reductions due to lapse of applicable statute of limitations		(336	)		(90	)
Unrecognized tax benefits at end of year	$	1,058		$	1,220