Segment Reporting (Restated)

9 Months Ended

May 31, 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 Industrial Ingredients segment produces certain by-products from its corn starch manufacturing process. The proceeds from the sale of these by-products are classified as sales in the table below.

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						Nine months ended
	May 31,						May 31,
	2013			2012			2013			2012
				As restated. See Note 2						As restated. See Note 2
	(In thousands)
Sales:
Industrial Ingredients
Industrial Starch	$	44,572		$	43,633		$	132,610		$	113,071
Ethanol		28,111			23,118			69,710			79,786
By-Products		20,501			18,359			64,710			53,070
		93,184			85,110			267,030			245,927
Food Ingredients		28,535			26,173			82,793			77,001
	$	121,719		$	111,283		$	349,823		$	322,928
Income (loss) from operations:
Industrial Ingredients	$	565		$	75		$	1,500		$	(161	)
Food Ingredients		6,206			5,362			17,097			16,563
Corporate and other		(2,496	)		(1,864	)		(7,772	)		(6,820	)
	$	4,275		$	3,573		$	10,825		$	9,582

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 May 31, 2013 included $12.1 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 $6.8 million and $18.7 million for the three and nine months ended May 31, 2013, respectively, and $5.3 million and $9.0 million for the three and nine months ended May 31, 2012, respectively, arising from the acquired operations.

	May 31,		August 31,
	2013		2012
	(In thousands)
Total assets:
Industrial Ingredients	$	142,852	$	143,039
Food Ingredients		64,443		63,949
Corporate and other		25,006		29,191
	$	232,301	$	236,179