Fair Value Measurements and Derivative Instruments (Tables)

9 Months Ended

May 31, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

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


As of May 31, 2013	(Level 1)			(Level 2)		(Level 3)		Total
	(in thousands)
Current assets (Other Current Assets):
Commodity derivatives ⁽¹⁾	$	(636	)	$	—	$	—	$	(636	)

(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 $1.2 million at May 31, 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 May 31, 2013, the Company had the following outstanding futures contracts:


Corn Futures	4,465,000	Bushels
Natural Gas Futures	420,000	mmbtu (millions of British thermal units)
Ethanol Futures	3,780,000	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 May 31, 2013 and August 31, 2012.


	Assets					Liabilities
In thousands		Fair Value					Fair Value
	Balance Sheet Location	May 31 2013		Aug 31 2012		Balance Sheet Location	May 31 2013		Aug 31 2012
Derivatives designated as hedging instruments:
Cash Flow Hedges:
Corn Futures	Other Current Assets	$	50	$	12	Other Current Assets	$	323	$	126
Ethanol Futures	Other Current Assets		—		—	Other Current Assets		567		706
Fair Value Hedges:
Corn Futures	Other Current Assets		125		—	Other Current Assets		—		602
Derivatives not designated as hedging instruments:
Natural Gas Futures	Other Current Assets		56		—	Other Current Assets		—		—
Natural Gas Options	Other Current Assets		23		—	Other Current Assets		—		—

		$	254	$	12		$	890	$	1,434

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 nine- month periods ended May 31, 2013 and 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 May 31						3 Months Ended May 31						3 Months Ended May 31
	2013			2012			2013			2012			2013			2012
Derivatives designated as hedging instruments:
Cash Flow Hedges:
Corn Futures ⁽¹⁾	$	530		$	(1,075	)	$	596		$	91		$	(474	)	$	(138	)
Natural Gas Futures ⁽¹⁾		—			—			—			(37	)		—			—
Ethanol Futures ⁽¹⁾		(557	)		—			(355	)		(18	)		—			—

	$	(27	)	$	(1,075	)	$	241		$	36		$	(474	)	$	(138	)

Fair Value Hedges:
Corn Futures ^(1) (2)													$	143		$	(21	)

Derivatives not designated as hedging instruments:
Natural Gas Futures ⁽¹⁾													$	294		$	(34	)
FX Contracts ⁽¹⁾														—			(3	)
Natural Gas Options ⁽¹⁾														(20	)		—
Soybean Meal Futures ⁽¹⁾														—			(14	)

													$	274		$	(51	)

(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
	9 Months Ended May 31						9 Months Ended May 31						9 Months Ended May 31
	2013			2012			2013			2012			2013			2012
Derivatives designated as hedging instruments:
Cash Flow Hedges:
Corn Futures ⁽¹⁾	$	(43	)	$	(1,825	)	$	4,087		$	2,035		$	(589	)	$	(317	)
Natural Gas Futures ⁽¹⁾		—			(41	)		—			(531	)		—			—
Ethanol Futures ⁽¹⁾		429			1,150			(71	)		39			(11	)		—

	$	386		$	(716	)	$	4,016		$	1,543		$	(600	)	$	(317	)

Fair Value Hedges:
Corn Futures ^(1) (2)													$	127		$	89

Derivatives not designated as hedging instruments:
Natural Gas Futures ⁽¹⁾													$	(16	)	$	(1,082	)
FX Contracts ⁽¹⁾														—			6
Natural Gas Options ⁽¹⁾														(20	)		12
Soybean Meal Futures ⁽¹⁾														—			(14	)

													$	(36	)	$	(1,078	)

(1)	Gains and losses reported in cost of sales

(2)	Hedged items are firm commitments and inventory