Summarized Financial Information of Equity Method Investee

3 Months Ended

Dec. 31, 2011

Summarized Financial Information of Equity Method Investee

Summarized Financial Information of Equity Method Investee

13.Summarized Financial Information of Equity Method Investee

Investments in entities in which Headwaters has a significant influence over operating and financial decisions are accounted for using the equity method of accounting. Summarized financial information as of September 30, 2011 and December 31, 2011 for one such equity method investee, Blue Flint Ethanol LLC (Blue Flint), follows:

(in thousands)	September 30, 2011		December 31, 2011
Total current assets	$	32,352	$	45,908
Total noncurrent assets	72,142		69,790
Total current liabilities	9,099		18,113
Total noncurrent liabilities	48,499		49,971

Summarized financial information for Blue Flint for the three months ended December 31, 2010 and 2011 follows:

(in thousands)	2010		2011
Revenues	$	35,483	$	50,386
Gross profit	2,653		3,891
Net income	1,214		370
Headwaters’ net income attributable to Blue Flint	620		189

Effective January 1, 2012, Headwaters sold its interest in Blue Flint for approximately $18.5 million. Since Headwaters’ initial investment in Blue Flint, equity earnings in excess of $15.0 million have been recorded that increased Headwaters’ carrying value of the investment to an amount that was in excess of the cash proceeds. As a result, a non-cash loss on the sale, which is not included in the table above, of approximately $6.3 million was recorded in the December 2011 quarter in other expense in the statement of operations.