Segment Reporting (Restated)

6 Months Ended

Feb. 28, 2013

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						Six months ended
	February 28, 2013			February 29, 2012			February 28, 2013			February 29, 2012
	(As restated, see Note 2)
	(In thousands)
Sales:
Industrial Ingredients
Industrial Starch	$	44,237		$	37,052		$	88,039		$	69,438
Ethanol		18,196			24,232			41,599			56,668
By-products		21,045			17,289			44,208			34,711
		83,478			78,573			173,846			160,817
Food Ingredients		26,604			24,904			54,258			50,828
	$	110,082		$	103,477		$	228,104		$	211,645
Income (loss) from operations:
Industrial Ingredients	$	(452	)	$	(985	)	$	935		$	(242	)
Food Ingredients		5,535			5,247			10,891			11,206
Corporate and other		(2,553	)		(2,612	)		(5,276	)		(4,955	)
	$	2,530		$	1,650		$	6,550		$	6,009

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 February 28, 2013 included $11.5 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 sales is $6.5 million and $11.8 million for the three and six months ended February 28, 2013, respectively, and $3.6 million for both the three- and six-month periods ended February 29, 2012 arising from the acquired operations.

	February 28, 2013		August 31, 2012
	(In thousands)
Total assets:
Industrial Ingredients	$	146,814	$	143,039
Food Ingredients		64,253		63,949
Corporate and other		26,447		29,191
	$	237,514	$	236,179