Note 12 - Operating Segments

6 Months Ended

Dec. 31, 2011

Segment Reporting Disclosure [Text Block]

NOTE 12:                      OPERATING SEGMENTS

The Company’s operations are classified into three reportable segments:  distillery products, ingredient solutions and other. The distillery products segment consists of food grade alcohol, along with fuel grade alcohol commonly known as ethanol, and distillers feed, which are co-products of our distillery operations. Ingredient solutions consist of specialty starches and proteins, commodity starch and vital wheat gluten (commodity protein).  Mill by-products, consisting primarily of mill feeds or “midds,” have also been included in this segment but have been discontinued with the shutdown of our wheat flour milling operations at the Atchison, Kansas plant in the second quarter of fiscal 2009.  The other segment products are comprised of resins and plant-based polymers and composites manufactured through the further processing of certain of our proteins and starches and wood.

Operating profit (loss) for each segment is based on net sales less identifiable operating expenses.  Non-direct selling, general and administrative, interest expense, investment income and other general miscellaneous expenses have been excluded from segment operations and classified as Corporate.  Receivables, inventories and equipment have been identified with the segments to which they relate.  All other assets are considered as Corporate.

	Six Months Ended			Year Ended June 30,
	December 31, 2011			2011			2010			2009
Sales to Customers
Distillery products	$	118,437		$	188,993		$	139,990		$	204,704
Ingredient solutions		27,596			57,765			59,715			82,127
Other		444			1,157			2,266			4,981
Total	$	146,477		$	247,915		$	201,971		$	291,812
Depreciation and amortization
Distillery products	$	2,128		$	4,720		$	4,363		$	7,095
Ingredient solutions		1,240			2,148			2,272			3,022
Other		122			245			245			246
Corporate		1,557			1,730			1,751			1,583
Total	$	5,047		$	8,843		$	8,631		$	11,946
Income (loss) before Income Taxes
Distillery products	$	1,234		$	19,720		$	16,713		$	(24,367	)
Ingredient solutions		1,044			1,828			9,731			(6,720	)
Other		(274	)		(521	)		145			40
Corporate		(11,422	)		(22,272	)		(20,325	)		(24,411	)
Impairment of long-lived assets(i)		(1,301	)		-			-			(10,282	)
Severance and early retirement costs(i)		-			-			-			(3,288	)
Bargain purchase gain, net of tax(i)		13,048			-			-			-
Loss on joint venture formation(i)		-			-			(2,294	)		-
Other restructuring costs(i)		-			-			-			(5,241	)
Loss on natural gas contract(i)		-			-			-			(7,642	)
Total	$	2,329		$	(1,245	)	$	3,970		$	(81,911	)

(i)   The Company’s management reporting does not assign or allocate special charges to the Company’s operating segments.  For purposes of comparative analysis, impairment of long-lived assets, severance and early retirement costs, gain (loss) on sale of assets , bargain purchase gain, loss on joint venture formation, other restructuring costs, and the loss on natural gas contract  for the six month transition period ended December 31, 2011 and for the years ended June 30, 2011, 2010 and 2009 have been excluded from the Company’s segments.

	December 31, 2011		June 30, 2011		June 30, 2010
Identifiable Assets
Distillery products	$	92,881	$	56,903	$	47,658
Ingredient solutions		26,937		34,059		30,221
Other		348		1,415		1,777
Corporate		48,991		44,106		41,628
Total	$	169,157	$	136,483	$	121,284

Information about the Company's capital expenditures, by segment, is as follows:

	Six Months Ended		Year Ended June 30,
	December 31, 2011		2011		2010		2009
Distillery products(i)	$	12,033	$	9,340	$	1,413	$	588
Ingredient solutions		765		4,434		141		613
Other		-		-		-		-
Corporate		545		808		824		1,296
Total	$	13,343	$	14,582	$	2,378	$	2,497

(i)   Includes $11,041 related to acquisition of LDI’s Distillery Business (see Note 21. Business Combination)

Information about the Company's revenues and assets by geographic area is as follows:

	Six Months Ended		Year Ended June 30,
Revenues for the period ended,	December 31, 2011		2011		2010		2009
United States	$	136,203	$	225,996	$	183,194	$	267,031
Japan(ii)		5,837		13,502		10,176		16,379
Canada		2,027		2,848		2,876		2,979
Europe		183		688		886		1,222
Other		2,227		4,881		4,839		4,201
Total	$	146,477	$	247,915	$	201,971	$	291,812

Assets,	December 31, 2011		June 30, 2011		June 30, 2010
United States	$	168,787	$	136,141	$	120,992
Europe		370		342		292
Total	$	169,157	$	136,483	$	121,284

(ii)   Substantially all of the Company’s sales in Japan are to one customer.