Segment Reporting (Restated)

3 Months Ended

Nov. 30, 2012

Segment Reporting [Abstract]

Segment Reporting (Restated)

11—SEGMENT REPORTING (Restated)

Financial information for the Company’s two segments, Industrial Ingredients and Food Ingredients, is presented below. These segments serve broad categories of end-market users. The Industrial Ingredients segment provides carbohydrate-based starches for industrial applications, primarily paper and packaging products and fuel grade ethanol. The Food Ingredients segment produces specialty starches for food applications. A third item for “corporate and other” activity has been presented to provide reconciliation to amounts reported in the consolidated financial statements. Corporate and other represents the activities related to the corporate headquarters such as public company reporting, personnel costs of the executive management team, corporate-wide professional services and consolidation entries.

	Three months ended November 30
	2012			2011
	(As restated, see Note 2)
	(In thousands)
Sales:
Industrial Ingredients
Industrial Starch	$	43,802		$	32,386
Ethanol		23,403			32,436
By-products		23,163			17,422
		90,368			82,244
Food Ingredients		27,654			25,924
	$	118,022		$	108,168
Income (loss) from operations:
Industrial Ingredients	$	1,387		$	743
Food Ingredients		5,355			5,959
Corporate and other		(2,722	)		(2,343	)
	$	4,020		$	4,359

In January 2012, the Company acquired, through purchase or capital lease, the net assets and operations of the business generally known as Carolina Starches, which manufactures and markets industrial potato starch based products for the paper and packaging industries. The acquisition of this business provided an important source of raw material to support continued growth in the Food Ingredients business and it broadened the Company’s portfolio of specialty modified industrial starches.

The net assets and results of operations since acquisition have been integrated into the Company’s existing business segments. The acquired net assets, consisting primarily of property, plant and equipment and working capital, are being managed by and included in the reported balance sheet amounts of the Company’s Food Ingredients business, which has experience, expertise and technologies related to the manufacture of potato starch products. Consolidated assets at November 30, 2012 included $11.2 million of assets related to the acquisition. Since the primary end markets for Carolina Starches’ products are the paper and packaging industries, the sales and marketing functions of the acquired operations are being managed by the Industrial Ingredients business. Therefore, the sales, cost of sales and a majority of the operating expenses are included in the Industrial Ingredients segment’s results of operations. Included in Industrial Ingredients revenue is $5.3 million in sales for the three-month period ended November 30, 2012, arising from the acquired operations.

	November 30,		August 31,
	2012		2012
	(In thousands)
Total assets:
Industrial Ingredients	$	140,839	$	143,039
Food Ingredients		63,742		63,949
Corporate and other		27,872		29,191
	$	232,453	$	236,179