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DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended
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Jan. 31, 2017
Disclosure Text Block Supplement [Abstract] |
Financial Instruments Disclosure [Text Block] |
10. | DERIVATIVE FINANCIAL INSTRUMENTS
The Company is exposed to various market risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility of these natural business exposures, the Company enters into commodity agreements and forward purchase (corn) and sale (ethanol, distillers grains and non-food grade corn oil) contracts. The Company does not purchase or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell derivative financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting. The following table provides information about the fair values of the Company’s derivative financial instruments and the line items on the Consolidated Balance Sheets in which the fair values are reflected (in thousands):
|  | Asset Derivatives |  |  | Liability Derivatives |
|  | Fair Value at January 31, |  |  | Fair Value at January 31, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Commodity futures (1) |  | $ | 45 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Forward purchase contracts (2) |  | $ | 163 |  |  | $ | — |  |  | $ | 136 |  |  | $ | 312 |
| (1) | Commodity futures are included in prepaid expense and other. These contracts are short/sell positions for approximately 0.7 million bushels of corn.
| (2) Forward purchase contracts assets are included in prepaid expenses and other while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 5.3 million bushels of corn at January 31, 2017 and 0.7 million bushels of corn at January 31, 2016.
As of January 31, 2017, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements. The Company’s accounting policy is to offset positions owed or owing with the same counterparty. As of January 31, 2017, the gross positions of the enforceable master netting agreements are not significantly different from the net positions presented in the table above. Depending on the amount of an unrealized loss on a derivative contract held by the Company, the counterparty may require collateral to secure the Company’s derivative contract position. As of January 31, 2017, the Company was required to maintain collateral with the counterparty in the amount of approximately $131,000 to secure the Company’s derivative liability position. See Note 3 which contains fair value information related to derivative financial instruments. The following table provides information about gains recognized in income on the Company’s derivative financial instruments and the line items on the Consolidated Statements of Operations in which the fair values are reflected for fiscal years 2016, 2015 and 2014 (in thousands):
|  | 2016 |  |  | 2015 |  |  | 2014 |
Cost of sales |  | $ | (2,131 | ) |  | $ | (382 | ) |  | $ | — |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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