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INVESTMENTS
 12 Months Ended
Jan. 31, 2023
Disclosure Text Block Supplement [Abstract]  
Investment [Text Block]
3.INVESTMENTS

 

Equity Method Investment in Big River

 

The Company’s equity method investment in Big River is accounted for under ASC 323. The following table summarizes the investment (amounts in thousands):

 

   January 31, 
   2023   2022 
           
Carrying amount  $33,045   $30,566 
           
Ownership percentage   10.3%    10.3% 

 

The Company invested approximately $20.0 million in Big River which is a holding company for several entities. Big River, through its various entities (both wholly and partially owned), operates four ethanol manufacturing facilities, that combined shipped approximately 425.4 million gallons of ethanol in the twelve months ended January 31, 2023. The Company recorded income of approximately $8.7 million, $6.6 million, and $0.5 million as its share of earnings from Big River during fiscal years 2022, 2021, and 2020, respectively. The Company received dividends of approximately $6.3 million, $5.5 million, and $3.5 million from Big River during fiscal years 2022, 2021, and 2020, respectively. At January 31, 2023, the carrying value of the investment in Big River was approximately $33.0 million; the amount of underlying equity in the net assets of Big River was approximately $31.5 million.

Summarized financial information for the Company’s equity method investee as of and for its fiscal year end is presented in the following tables (amounts in thousands):

 

   December 31, 
   2022   2021 
         
Current assets  $319,367   $310,411 
Non current assets   151,039    146,384 
Total assets  $470,406   $456,795 
Current liabilities  $118,946   $131,317 
Long-term liabilities   8,686    - 
Total liabilities  $127,632   $131,317 
Noncontrolling interests  $37,326   $36,786 

 

   Years Ended December 31, 
   2022   2021   2020 
             
Net sales and revenue  $1,509,406   $1,332,555   $736,225 
Gross profit  $94,106   $85,401   $18,858 
Income from continuing operations  $84,814   $64,243   $4,850 
Net income  $84,814   $64,243   $4,850 

 

Big River has debt agreements that limit and restrict amounts the entity can pay in the form of dividends or advances to owners. The restricted net assets of Big River at January 31, 2023 are approximately $113.4 million; the Company’s proportionate share of restricted net assets of Big River is approximately $11.7 million.

 

Short-term Investments

 

At January 31, 2023, the Company owned United States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $211.3 million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 3.9%. Unrealized gains or losses were insignificant.

 

At January 31, 2022, the Company owned certificates of deposit (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $25.9 million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 0.1%. Unrealized gains or losses were insignificant.