3. Income Taxes, continued
The reconciliation of income tax computed at the U.S. statutory tax rate to income tax expense is as follows:

Income tax benefit allocated to other items was as follows:

(1) This amount has been recorded directly to “Additional Paid-In Capital”.

4. Commitments and Contingencies
The Company had durum wheat purchase commitments totaling approximately $24 million and $7 million at September 30, 2001 and 2000, respectively.

Under an agreement with its predominant rail carrier, the Company is obligated to transport specified wheat volumes. In the event the specified transportation volumes are not met, the Company is required to reimburse certain rail carrier costs. The Company is in compliance with the volume obligations at September 30, 2001.

 5. Major Customers
Sales to a certain customer during the years ended September 30, 2001, 2000 and 1999 represented 13%, 15% and 16% of revenues, respectively. Sales to a second customer during the years ended September 30, 2001, 2000 and 1999 represented 6%, 12% and 13% of revenues, respectively. Sales to a third customer during fiscal 2000 and 1999 were 23% and 29% of revenues, respectively. With the Company’s acquisition of the Mueller’s brand on November 14, 2000, the Company no longer has revenues arising from transactions with this major customer.