Legal Proceedings and Contingencies	6 Months Ended
Feb. 28, 2013
Commitments And Contingencies Disclosure [Abstract]
Legal Proceedings and Contingencies	13—LEGAL PROCEEDINGS AND CONTINGENCIES The Company sold its Australia/New Zealand Operations in fiscal 2010. At February 28, 2013, the remaining net assets of the Australia/New Zealand Operations consisted of $0.2 million of cash. Proceeds from the sale of the Australia/New Zealand Operations included $2.0 million placed in escrow, approximately $1.225 million of which had been distributed to the Company’s subsidiary, Penford Australia Limited (“Penford Australia”) in prior periods. During the second quarter of fiscal 2013, Penford Australia received approximately $775,000 in escrowed funds, which represented the entire remaining amount of escrowed funds that had not previously been paid. In connection with Penford Australia’s complete recovery of all the escrowed funds, the Company reversed a reserve of $163,000 that it had recorded in the first quarter of fiscal 2013 in connection with a dispute over the payment of these funds with the purchaser of a portion of Penford Australia’s assets. On March 15, 2013, the Company entered into an agreement providing for the payment to the Company of $3.4 million in full settlement of certain claims the Company made against a contractor and its insurer that arose from engineering design work performed in connection with the construction of the Company’s ethanol plant completed in 2008. The Company alleged breach of contract and negligence by the contractor, and sought recovery of its costs and damages from the contractor and its insurer due to errors and delays in the performance of the work. The agreement provides for payment of the settlement amount within 45 days from the date of settlement. The Company expects to record the effect of this settlement in its financial statements in the third quarter of fiscal 2013. The settlement amount, net of contingent legal fees, expert fees and other litigation expenses incurred in the matter, of approximately $2.1 million will be reflected as a reduction of the cost of the ethanol plant. The Company is involved from time to time in various other claims and litigation arising in the normal course of business. The Company expenses legal costs as incurred. 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, 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. The Company regularly evaluates the status of claims and any related legal proceedings in which it is involved in order to assess whether a loss is probable, whether there is a reasonable possibility that a loss may have been incurred and to determine if accruals are appropriate. Management is unable to provide additional information regarding any possible losses arising from such claims because (i) the Company currently believes that the claims are not adequately supported, and (ii) there are significant factual and legal issues to be resolved.

13—LEGAL PROCEEDINGS AND CONTINGENCIES

The Company sold its Australia/New Zealand Operations in fiscal 2010. At February 28, 2013, the remaining net assets of the Australia/New Zealand Operations consisted of $0.2 million of cash. Proceeds from the sale of the Australia/New Zealand Operations included $2.0 million placed in escrow, approximately $1.225 million of which had been distributed to the Company’s subsidiary, Penford Australia Limited (“Penford Australia”) in prior periods. During the second quarter of fiscal 2013, Penford Australia received approximately $775,000 in escrowed funds, which represented the entire remaining amount of escrowed funds that had not previously been paid. In connection with Penford Australia’s complete recovery of all the escrowed funds, the Company reversed a reserve of $163,000 that it had recorded in the first quarter of fiscal 2013 in connection with a dispute over the payment of these funds with the purchaser of a portion of Penford Australia’s assets.

On March 15, 2013, the Company entered into an agreement providing for the payment to the Company of $3.4 million in full settlement of certain claims the Company made against a contractor and its insurer that arose from engineering design work performed in connection with the construction of the Company’s ethanol plant completed in 2008. The Company alleged breach of contract and negligence by the contractor, and sought recovery of its costs and damages from the contractor and its insurer due to errors and delays in the performance of the work. The agreement provides for payment of the settlement amount within 45 days from the date of settlement. The Company expects to record the effect of this settlement in its financial statements in the third quarter of fiscal 2013. The settlement amount, net of contingent legal fees, expert fees and other litigation expenses incurred in the matter, of approximately $2.1 million will be reflected as a reduction of the cost of the ethanol plant.

The Company is involved from time to time in various other claims and litigation arising in the normal course of business. The Company expenses legal costs as incurred. 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, 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.

The Company regularly evaluates the status of claims and any related legal proceedings in which it is involved in order to assess whether a loss is probable, whether there is a reasonable possibility that a loss may have been incurred and to determine if accruals are appropriate. Management is unable to provide additional information regarding any possible losses arising from such claims because (i) the Company currently believes that the claims are not adequately supported, and (ii) there are significant factual and legal issues to be resolved.