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Note 6 - Investments in Joint Ventures | 6 Months Ended
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Feb. 28, 2013
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 6. INVESTMENTS IN JOINT VENTURES The financial statements of the Company’s foreign joint ventures are initially prepared using the accounting principles accepted in the respective joint ventures’ countries of domicile. Amounts related to foreign joint ventures reported in the below tables and the accompanying consolidated financial statements have subsequently been adjusted to approximate U.S. GAAP in all material respects. All material profits recorded on sales from the Company to its joint ventures of goods that remain in inventory, have been eliminated for financial reporting purposes. Financial information from the audited and unaudited financial statements of the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR), China, NTI Asean and all of the Company’s other joint ventures, are summarized as follows:
|  | At February 28, 2013 |
|  | Total |  |  | EXCOR |  |  | China |  |  | All Other |
Current assets |  | $ | 61,997,739 |  |  | $ | 22,196,110 |  |  | $ | 12,442,364 |  |  | $ | 27,359,265 |
Total assets |  |  | 68,522,275 |  |  |  | 24,625,927 |  |  |  | 12,474,170 |  |  |  | 31,422,178 |
Current liabilities |  |  | 19,532,691 |  |  |  | 3,848,126 |  |  |  | 5,094,516 |  |  |  | 10,590,049 |
Noncurrent liabilities |  |  | 4,210,364 |  |  |  | — |  |  |  | 856,978 |  |  |  | 3,353,386 |
Joint ventures’ equity |  |  | 44,779,219 |  |  |  | 20,777,801 |  |  |  | 6,522,675 |  |  |  | 17,478,742 |
Northern Technologies International Corporation’s share of joint ventures’ equity |  |  | 22,189,562 |  |  |  | 10,388,902 |  |  |  | 3,261,338 |  |  |  | 8,539,322 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings |  | $ | 20,075,092 |  |  | $ | 10,357,997 |  |  | $ | 3,215,436 |  |  | $ | 6,501,659 |
|  | At August 31, 2012 |
|  | Total |  |  | EXCOR |  |  | NTI ASEAN |  |  | All Other |
Current assets |  | $ | 61,973,725 |  |  | $ | 24,357,139 |  |  | $ | 15,358,967 |  |  | $ | 22,257,619 |
Total assets |  |  | 68,585,974 |  |  |  | 26,620,589 |  |  |  | 15,522,456 |  |  |  | 26,442,929 |
Current liabilities |  |  | 18,686,181 |  |  |  | 4,749,574 |  |  |  | 5,763,857 |  |  |  | 8,172,750 |
Noncurrent liabilities |  |  | 4,700,458 |  |  |  | — |  |  |  | 1,055965 |  |  |  | 3,644,493 |
Joint ventures’ equity |  |  | 45,199,335 |  |  |  | 21,871,015 |  |  |  | 8,702,634 |  |  |  | 14,625,686 |
Northern Technologies International Corporation’s share of joint ventures’ equity |  |  | 21,461,492 |  |  |  | 10,935,509 |  |  | $ | 3,685,404 |  |  |  | 6,840,579 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings |  | $ | 19,403,150 |  |  | $ | 10,904,604 |  |  | $ | 3,314,445 |  |  | $ | 5,184,101 |
|  | Six Months Ended February 28, 2013 |
|  | Total |  |  | EXCOR |  |  | China |  |  | All Other |
Net sales |  | $ | 54,247,135 |  |  | $ | 17,451,153 |  |  | $ | 6,929,260 |  |  | $ | 29,866,722 |
Gross profit |  |  | 25,852,537 |  |  |  | 9,105,579 |  |  |  | 3,290,660 |  |  |  | 13,456,298 |
Net income |  |  | 4,728,680 |  |  |  | 3,260,575 |  |  |  | 524,546 |  |  |  | 943,559 |
Northern Technologies International Corporation’s share of equity in income of joint ventures |  | $ | 2,292,734 |  |  | $ | 1,631,125 |  |  | $ | 262,148 |  |  | $ | 399,461 |
|  | Six Months Ended February 29, 2012 |
|  | Total |  |  | EXCOR |  |  | NTI ASEAN |  |  | All Other |
Net sales |  | $ | 54,792,662 |  |  | $ | 16,958,519 |  |  | $ | 10,482,144 |  |  | $ | 27,351,999 |
Gross profit |  |  | 25,945,925 |  |  |  | 8,860,381 |  |  |  | 4,705,397 |  |  |  | 12,380,147 |
Net income |  |  | 4,798,435 |  |  |  | 3,158,682 |  |  |  | 1,276,056 |  |  |  | 363,697 |
Northern Technologies International Corporation’s share of equity in income of joint ventures |  | $ | 2,582,355 |  |  | $ | 1,576,496 |  |  | $ | 692,115 |  |  | $ | 313,744 |
*Prior to September 1, 2012, the Company owned 50% of NTI Asean, which included the joint venture in China, and disclosed its financial information accordingly. On September 1, 2012, the Company obtained an additional 10% ownership interest in NTI Asean and has consolidated the results of NTI Asean subsequent to that date. As a result the Company now discloses the financial information for only its joint venture in China and not all of NTI Asean accordingly. The Company records expenses that are directly attributable to the joint ventures on the consolidated statements of operations on the line “Expenses incurred in support of joint ventures”. The expenses include items such as employee compensation and benefit expenses, travel expense and consulting expense. The Company did not make any other joint venture investments during the six months ended February 28, 2013 and February 29, 2012.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32787-111569 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32847-111569 + Details
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