Fair Value Measurements and Derivative Instruments (Tables)

6 Months Ended

Feb. 28, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Presented below are the fair values of the Company’s derivatives as of February 28, 2013 and August 31, 2012:


As of February 28, 2013	(Level 1)			(Level 2)		(Level 3)		Total
	(in thousands)
Current assets (Other Current Assets):
Commodity derivatives ⁽¹⁾	$	(419	)	$	—	$	—	$	(419	)

(1)	On the condensed consolidated balance sheet, 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 $1.1 million at February 28, 2013.


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 condensed consolidated balance sheet, 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.

Outstanding Futures Contracts

As of February 28, 2013, the Company had the following outstanding futures contracts:


Corn Futures	5,170,000	Bushels
Natural Gas Futures	720,000	mmbtu (millions of British thermal units)
Ethanol Futures	290,000	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 February 28, 2013 and August 31, 2012.


	Assets						Liabilities
In thousands			Fair Value						Fair Value
	Balance Sheet Location		Feb 28		Aug 31		Balance Sheet Location		Feb 28		Aug 31
	Balance Sheet Location		2013		2012		Balance Sheet Location		2013		2012
Derivatives designated as hedging instruments:
Cash Flow Hedges:
Corn Futures		Other Current Assets	$	—	$	12		Other Current Assets	$	451	$	126
Ethanol Futures		Other Current Assets		—		—		Other Current Assets		4		706
Fair Value Hedges:
Corn Futures		Other Current Assets		173		—		Other Current Assets		44		602
Derivatives not designated as hedging instruments:
Natural Gas Futures		Other Current Assets		—		—		Other Current Assets		93		—

			$	173	$	12			$	592	$	1,434

The following tables

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 three- and six- month periods ended February 28, 2013 and February 29, 2012.


In thousands	Amount of Gain (Loss) Recognized in OCI						Amount of Gain (Loss) Reclassified from AOCI into Income					Amount of Gain (Loss) Recognized in Income
	3 Months Ended						3 Months Ended					3 Months Ended
	Feb 28, 2013			Feb 29, 2012			Feb 28, 2013		Feb 29, 2012			Feb 28, 2013			Feb 29, 2012
Derivatives designated as hedging instruments:

Cash Flow Hedges:
Corn Futures ⁽¹⁾	$	(318	)	$	858		$	59	$	(130	)	$	(312	)	$	132
Natural Gas Futures ⁽¹⁾		—			—			—		(181	)		—			—
Ethanol Futures ⁽¹⁾		233			(18	)		191		892			—			—

	$	(85	)	$	840		$	250	$	581		$	(312	)	$	132


Fair Value Hedges:
Corn Futures ^(1) (2)												$	(31	)	$	(21	)


Derivatives not designated as hedging instruments:

Natural Gas Futures ⁽¹⁾												$	89		$	(336	)
FX Contracts ⁽¹⁾													—			9
Soybean Oil Futures ⁽¹⁾													—			12

												$	89		$	(315	)

(1)	Gains and losses reported in cost of sales

(2)	Hedged items are firm commitments and inventory


In thousands	Amount of Gain (Loss) Recognized in OCI						Amount of Gain (Loss) Reclassified from AOCI into Income					Amount of Gain (Loss) Recognized in Income
	6 Months Ended						6 Months Ended					6 Months Ended
	Feb 28, 2013			Feb 29, 2012			Feb 28, 2013		Feb 29, 2012			Feb 28, 2013			Feb 29, 2012
Derivatives designated as hedging instruments:

Cash Flow Hedges:
Corn Futures ⁽¹⁾	$	(573	)	$	(750	)	$	3,491	$	1,944		$	(115	)	$	(179	)
Natural Gas Futures ⁽¹⁾		—			—			—		(453	)		—			—
Ethanol Futures ⁽¹⁾		986			1,150			284		58			(11	)		—

	$	413		$	400		$	3,775	$	1,549		$	(126	)	$	(179	)

Fair Value Hedges:
Corn Futures ^(1) (2)												$	(16	)	$	78


Derivatives not designated as hedging instruments:

Natural Gas Futures ⁽¹⁾												$	(82	)	$	(1,048	)
FX Contracts ⁽¹⁾													—			9
Soybean Oil Futures ⁽¹⁾													—			12

												$	(82	)	$	(1,027	)

(1)	Gains and losses reported in cost of sales

(2)	Hedged items are firm commitments and inventory