Fair Value Measurements and Derivative Instruments (Tables)

12 Months Ended

Aug. 31, 2012

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Presented below are the fair values of the Company’s derivatives as of August 31, 2012 and 2011:


As of August 31, 2012	(Level 1)			(Level 2)		(Level 3)		Total
	(in thousands)
Current assets (Other Current Assets):
Commodity derivatives ⁽¹⁾	$	(1,422	)	$	—	$	—	$	(1,422	)

(1)	On the consolidated balance sheets, commodity derivative assets and liabilities have been offset by cash collateral due and paid under master netting arrangements which are recorded together in Other Current Assets. The cash collateral offset was $2.6 million at August 31, 2012.


As of August 31, 2011	(Level 1)			(Level 2)		(Level 3)		Total
	(in thousands)
Current assets (Other Current Assets):
Commodity derivatives ⁽¹⁾	$	(3,153	)	$	—	$	—	$	(3,153	)

(1)	On the consolidated balance sheets, commodity derivative assets and liabilities have been offset by cash collateral due and paid under master netting arrangements which are recorded together in Other Current Assets. The cash collateral offset was $5.1 million at August 31, 2011.

Outstanding Futures Contracts

As of August 31, 2012, the Company had the following outstanding futures contracts:


Corn Futures			3,050,000 Bushels
Ethanol Swaps			3,625,000 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, 2012 and 2011.


	Assets					Liabilities
		Fair Value August 31					Fair Value August 31
In thousands	Balance Sheet Location	2012		2011		Balance Sheet Location	2012		2011

Derivatives designated as hedging instruments:
Cash Flow Hedges:
Corn Futures	Other Current Assets	$	12	$	137	Other Current Assets	$	126	$	—
Natural Gas Futures	Other Current Assets		—		—	Other Current Assets		—		454
Ethanol Futures	Other Current Assets		—		—	Other Current Assets		706		1,289
Fair Value Hedges:
Corn Futures	Other Current Assets		—		—	Other Current Assets		602		1,547

		$	12	$	137		$	1,434	$	3,290

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, 2012, 2011 and 2010.


	Amount of Gain (Loss) Recognized in OCI								Amount of Gain (Loss) Reclassified from AOCI into Income									Amount of Gain (Loss) Recognized in Income
	Year Ended August 31								Year Ended August 31									Year Ended August 31
In thousands	2012		2011			2010			2012			2011			2010			2012			2011			2010
Derivatives designated as hedging instruments:

Cash Flow Hedges:
Corn Futures ⁽¹⁾	$	2,067	$	(4,949	)	$	384		$	1,500		$	(7,418	)	$	349		$	36		$	(162	)	$	(194	)
Natural Gas Futures ⁽¹⁾		—		(579	)		(3,170	)		(492	)		(1,332	)		(2,168	)		—			(85	)		—
Ethanol Futures ⁽¹⁾		1,667		(4,180	)		(590	)		1,263			(3,075	)		(493	)		—			—			—
Interest Rate Contracts ⁽³⁾ ⁽⁴⁾		—		—			(395	)		—			—			(662	)		—			—			(1,562	)
FX Contracts ⁽¹⁾		—		—			—			—			—			(26	)		—			—			—

	$	3,734	$	(9,708	)	$	(3,771	)	$	2,271		$	(11,825	)	$	(3,000	)	$	36		$	(247	)	$	(1,756	)

Fair Value Hedges:
Corn Futures ^(1) (2)																		$	98		$	28			85

Derivatives not designated as hedging instruments:

Natural Gas Futures ⁽¹⁾																		$	(1,082	)	$	—		$	—
FX Contracts ⁽¹⁾																			6			—			—
Soybean Oil Futures ⁽¹⁾																			12			—			—
Soybean Meal Futures ⁽¹⁾																			(14	)		—			—

																		$	(1,078	)	$	—		$	—

(1)	Gains and losses reported in cost of goods sold

(2)	Hedged items are firm commitments and inventory

(3)	Gains and losses reported in interest expense

(4)	Amount of loss recognized in income was reported in non-operating income (expense)