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Financial Instruments

6 Months Ended

Jul. 31, 2011

Financial Instruments Disclosure [Text Block]

Note 9. Financial Instruments

The Company uses interest rate swaps to manage its interest rate exposure at One Earth by fixing the interest rate on a portion of the entity’s variable rate debt. The Company does not engage in trading activities involving derivative contracts for which a lack of marketplace quotations would necessitate the use of fair value estimation techniques. The notional amounts and fair values of derivatives, all of which are not designated as cash flow hedges at July 31, 2011 are summarized in the table below (amounts in thousands):


		Notional Amount			Fair Value Liability


Interest rate swaps		$	65,321		$	4,915

As the interest rate swaps are not designated as cash flow hedges, the unrealized gain and loss on the derivatives is reported in current earnings. The Company reported losses of $757,000 and $1,878,000 in the second quarter of fiscal years 2011 and 2010, respectively. The Company reported losses of $689,000 and $2,045,000 in the first six months of fiscal years 2011 and 2010, respectively.