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Note 11 - Significant Estimates And Concentrations
 6 Months Ended
Dec. 31, 2011
Concentration Risk Disclosure [Text Block]
NOTE 11:SIGNIFICANT ESTIMATES AND CONCENTRATIONS

Business combination – On December 27, 2011, the Company acquired LDI’s Distillery Business for approximately $11,041, which equals the current assets minus the current liabilities on that date.  The Company has recorded, at the acquisition date, purchased assets and assumed liabilities at their estimated fair values.  Significant estimates and assumptions used in valuing the acquisition of LDI’s Distillery Business and allocating purchase price include: (a) the business enterprise value, which is based on estimated future cash flows (including timing) which are estimated using the income approach and discount rates reflecting the risk inherent in the future cash flows, and (b) the values of land, buildings and improvements and machinery and equipment, which are estimated using the cost and market approaches as determined by the Company with the assistance of an independent third party.

Defined benefit pension and post-retirement benefit obligations.  The Company accrues amounts for defined benefit pension and post-retirement benefit obligations as discussed in Note 8. Employee Benefit Plans.  An accrual of $6,309 for defined benefit pension obligations and $4,884 for post-retirement benefit obligations is included in the accompanying consolidated balance sheet at December 31, 2011.  Claim payments and pension obligations based upon actual experience could ultimately differ materially from these estimates.

Inventory valuation.  The Company has recorded the carrying value of its inventories at the lower of cost or market based upon management estimates.  Actual results could differ significantly in the near term.  Inventory valuations are impacted significantly by constantly changing prices paid for our key raw materials, primarily corn.

Impairment.  The Company reviews long-lived assets, mainly equipment, for impairment at year end or if events or circumstances indicate that usage may be limited and carrying values may not be recoverable.  Should events indicate the assets cannot be used as planned, the realization from alternative uses or disposal is compared to the carrying value.  If an impairment loss is measured, this estimate is recognized.  During the six month transition period ended December 31, 2011, the significant estimates and assumptions used in determining fair value included undiscounted future cash flows.  Third party appraisals may be used when cash flows are uncertain.  Undiscounted future cash flow estimates were determined based on estimated business to develop, and the timing of the estimated business development.   Considerable judgment is used in these measurements, and a change in the assumptions could result in a different determination of impairment loss and/or the amount of any impairment.  The Company recognized a non-cash impairment loss of $1,301 for the six month transition period ended December 31, 2011 and $10,282 during the year ended June 30, 2009.  The Company may incur further impairment losses with respect to these assets if the estimates that it made when it performed its analysis prove to be inaccurate or if it determines that it needs to change its assumptions.  See Note 1. Nature of Operations and Summary of Significant Accounting Policies and Note 9. Restructuring Costs and Loss on Impairment of Assets.

Liability for other restructuring costs.   The Company recorded a liability for other restructuring costs related to expected railcar returns.  During the six month transition period ended December 31, 2011, the Company sub-leased 30 rail-cars for the remaining contractual term under the Company’s existing rail car leases that had not previously been assumed or subleased, which resulted in a $274 adjustment being recorded to Other operating costs.  During fiscal 2011, $249 of other restructuring costs was charged to the statement of operations due to a delay in the timing by which certain railcars are expected to be assigned to other third parties.  During fiscal 2010, no activities occurred that required an update to the underlying assumptions for this liability.   The Company expects the remaining 68 railcars will be returned during the fourth quarter of fiscal 2013.  The timing of the returns could ultimately differ materially from this estimate and prove the estimate to be incorrect.  See Note 9. Restructuring Costs and Loss on Impairment of Assets.

Significant customers.  For the six month transition period ended December 31, 2011, the Company did not have sales to any individual customer that accounted for more than 10 percent of consolidated net sales.  During the six month transition period ended December 31, 2011, the Company’s ten largest customers accounted for approximately 46 percent of consolidated net sales.

For the year ended June 30, 2011, the Company did not have sales to any individual customer that accounted for more than 10 percent of consolidated net sales.  During the fiscal year end June 30, 2011, the Company’s ten largest customers accounted for approximately 45 percent of consolidated net sales.

For the year ended June 30, 2010, the Company did not have sales to any individual customer that accounted for more than 10 percent of consolidated net sales.  During the fiscal year end June 30, 2010, the Company’s ten largest customers accounted for approximately 42 percent of consolidated net sales.

For the year ended June 30, 2009, the Company had sales to one customer accounting for approximately 10 percent of consolidated net sales. In addition, during the fiscal year ended June 30, 2009 the Company’s ten largest customers accounted for approximately 40 percent of consolidated net sales.

Significant suppliers. For the six month transition period ended December 31, 2011, the Company had purchases from one grain supplier that approximated 36 percent of consolidated purchases and from a flour supplier that accounted for 10 percent of consolidated purchases.  In addition, the Company’s 10 largest suppliers accounted for approximately 86 percent of consolidated purchases.

For the year ended June 30, 2011, the Company had purchases from one grain supplier that approximated 38 percent of consolidated purchases and from a flour supplier that accounted for 26 percent of consolidated purchases.  In addition, the Company’s 10 largest suppliers accounted for approximately 90 percent of consolidated purchases.

For the year ended June 30, 2010, the Company had purchases from one grain supplier that approximated 33 percent of consolidated purchases and from a flour supplier that accounted for 12 percent of consolidated purchases.  In addition, the Company’s 10 largest suppliers accounted for approximately 75 percent of consolidated purchases.

For the year ended June 30, 2009, the Company had purchases from one grain supplier that approximated 20 percent of consolidated purchases and from another for the purchase of flour that accounted for 17 percent of consolidated purchases.  In addition, the Company’s 10 largest suppliers accounted for approximately 68 percent of consolidated purchases.

Tax Valuation Allowance.  The Company establishes a valuation allowance for deferred income tax assets if management believes, based on its assessment of historical and projected operating results and other available facts and circumstances, that it is  more-likely-than-not that all or a portion of the deferred income tax assets will not be realized.  Management has determined that a valuation allowance was appropriate on its net deferred income tax assets of $9,840, $13,675 and $14,600 at December 31, 2011, June 30, 2011 and June 30, 2010, respectively.