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Fair Value Measurements and Derivative Instruments (Tables)
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9 Months Ended |
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May 31, 2014
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| Derivative Instruments And Hedging Activities Disclosure [Abstract] |
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| Fair Values of Company's Derivative Instruments |
Presented below are the fair values of the Company’s
derivatives as of May 31, 2014 and August 31, 2013:
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| (In thousands) |
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As of May 31, 2014
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Current assets (Other):
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Commodity derivatives
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$ |
(2,899 |
) |
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$ |
— |
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$ |
— |
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$ |
(2,899 |
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| (In thousands) |
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As of August 31, 2013
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Current assets (Other):
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Commodity derivatives
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$ |
512 |
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$ |
— |
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$ |
— |
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$ |
512 |
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| Reconciliation of Gross Fair Value of Assets and Liabilities Subject to Offsetting Arrangements |
The following table reconciles the gross fair value of assets and
liabilities subject to offsetting arrangements to the net amounts
recorded in the Condensed Consolidated Balance Sheets as Other
current assets.
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| (In thousands) |
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Gross Amounts
of Recognized
Assets |
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Gross
Liabilities
Offset in the
Balance Sheets |
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Net Amount of
Assets
(Liabilities) |
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Cash Collateral
on Deposit with
Counterparty |
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Net
Fair Value as
Recorded in
Balance Sheets |
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As of May 31, 2014
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Commodity derivatives
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$ |
303 |
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$ |
(3,202 |
) |
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$ |
(2,899 |
) |
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$ |
5,343 |
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$ |
2,444 |
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As of August 31, 2013
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Commodity derivatives
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$ |
997 |
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$ |
(485 |
) |
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$ |
512 |
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$ |
1,700 |
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$ |
2,212 |
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| Outstanding Futures Contracts |
As of May 31, 2014, the Company had the following outstanding
futures contracts:
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Corn futures
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4,775,000 |
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Bushels |
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Ethanol futures
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14,700,000 |
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Gallons |
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Natural gas futures
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40,000 |
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mmbtu (millions of British thermal units) |
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| 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, 2014 and August 31, 2013:
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Assets |
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Liabilities |
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| (In thousands) |
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Fair Value |
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Fair Value |
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Balance Sheet
Location |
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May 31,
2014 |
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Aug 31,
2013 |
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Balance Sheet
Location |
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May 31,
2014 |
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Aug 31,
2013 |
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Derivatives designated as hedging instruments:
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Cash flow hedges:
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Corn futures
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Other current assets |
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$ |
— |
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$ |
— |
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Other current assets |
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$ |
788 |
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$ |
485 |
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Ethanol futures
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Other current assets |
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— |
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997 |
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Other current assets |
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2,414 |
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— |
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Fair value hedges:
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Corn futures
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Other current assets |
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300 |
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— |
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Other current assets |
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— |
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— |
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Derivatives not designated as
hedging instruments:
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Natural gas futures
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Other current assets |
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3 |
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— |
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Other current assets |
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— |
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— |
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$ |
303 |
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$ |
997 |
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$ |
3,202 |
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$ |
485 |
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| 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, 2014 and
2013:
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| (In thousands) |
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Amount of Gain (Loss)
Recognized in OCI |
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Amount of Gain (Loss)
Reclassified from
AOCI into Income |
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Amount of Gain (Loss)
Recognized in Income |
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3 Months Ended May 31, |
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3 Months Ended May 31, |
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3
Months Ended May 31, |
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2014 |
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2013 |
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2014 |
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2013 |
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2014 |
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2013 |
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Derivatives designated as hedging instruments:
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Cash flow hedges:
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Corn futures (1)
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$ |
760 |
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$ |
530 |
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$ |
1,744 |
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$ |
596 |
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$ |
(198 |
) |
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$ |
(474 |
) |
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Ethanol futures (1)
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(4,128 |
) |
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(557 |
) |
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(5,760 |
) |
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(355 |
) |
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(260 |
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— |
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$ |
(3,368 |
) |
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$ |
(27 |
) |
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$ |
(4,016 |
) |
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$ |
241 |
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$ |
(458 |
) |
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$ |
(474 |
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Fair value hedges:
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Corn futures (1) (2)
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$ |
(21 |
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$ |
143 |
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Derivatives not designated as hedging
instruments:
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Natural gas futures (1)
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$ |
(854 |
) |
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$ |
294 |
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Natural gas options (1)
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— |
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(20 |
) |
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Soybean meal futures (1)
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5 |
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— |
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$ |
(849 |
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$ |
274 |
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| (1) |
Gains and losses reported in Cost of
sales |
| (2) |
Hedged items are firm commitments and
inventory |
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| (In thousands) |
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Amount of Gain (Loss)
Recognized in OCI |
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Amount of Gain (Loss)
Reclassified from
AOCI into Income |
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Amount of Gain (Loss)
Recognized in Income |
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9 Months Ended May 31, |
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9 Months Ended May 31, |
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9 Months Ended May 31, |
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2014 |
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2013 |
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2014 |
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2013 |
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2014 |
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2013 |
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Derivatives designated as hedging instruments:
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Cash flow hedges:
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Corn futures (1)
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$ |
81 |
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$ |
(43 |
) |
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$ |
(2,116 |
) |
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$ |
4,087 |
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$ |
(1,595 |
) |
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$ |
(589 |
) |
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Ethanol futures (1)
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(9,688 |
) |
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429 |
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(7,368 |
) |
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(71 |
) |
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(331 |
) |
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(11 |
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$ |
(9,607 |
) |
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$ |
386 |
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$ |
(9,484 |
) |
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$ |
4,016 |
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$ |
(1,926 |
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$ |
(600 |
) |
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Fair value hedges:
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Corn futures (1) (2)
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$ |
75 |
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$ |
127 |
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Derivatives not designated as hedging
instruments:
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Natural gas futures (1)
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$ |
(634 |
) |
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$ |
(16 |
) |
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Natural gas options (1)
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— |
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(20 |
) |
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Soybean meal futures (1)
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11 |
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Ethanol futures (1)
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64 |
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— |
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$ |
(559 |
) |
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$ |
(36 |
) |
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| (1) |
Gains and losses reported in Cost of
sales |
| (2) |
Hedged items are firm commitments and
inventory |
|