XML 25 R11.htm IDEA: XBRL DOCUMENT v3.24.1
INVESTMENTS
 12 Months Ended
Jan. 31, 2024
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, 
   2024   2023 
           
Carrying amount  $34,936   $33,045 
           
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 430.0 million gallons of ethanol in the twelve months ended January 31, 2024. The Company recorded income of approximately $13.9 million, $8.7 million, and $6.6 million as its share of earnings from Big River during fiscal years 2023, 2022, and 2021, respectively. The Company received dividends of approximately $12.0 million, $6.3 million, and $5.5 million from Big River during fiscal years 2023, 2022, and 2021, respectively. At January 31, 2024, the carrying value of the investment in Big River was approximately $34.9 million; the amount of underlying equity in the net assets of Big River was approximately $36.6 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, 
   2023   2022 
           
Current assets  $351,278   $319,367 
Non current assets   144,933    151,039 
Total assets  $496,211   $470,406 
           
Current liabilities  $98,187   $118,946 
Long-term liabilities   7,559    8,686 
Total liabilities  $105,746   $127,632 
           
Members’ capital  $355,385   $305,447 
Noncontrolling interests   35,080    37,326 
Total members’ equity  $390,465   $342,773 
     
   Years Ended December 31, 
   2023   2022   2021 
                
Net sales and revenue  $1,379,651   $1,509,406   $1,332,555 
Gross profit  $160,549   $94,106   $85,401 
Depreciation expense  $26,142   $27,752   $34,258 
Income from continuing operations  $135,012   $84,814   $64,243 
Net income  $135,012   $84,814   $64,243 

 

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, 2024 are approximately $110.3 million; the Company’s proportionate share of restricted net assets of Big River is approximately $11.4 million.

 

Short-term Investments

 

At January 31, 2024, the Company owned United States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $155.3 million, which materially approximates fair value. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 5.5%. As carrying value materially approximates fair value, unrecognized holding gains or losses were insignificant.

 

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, which materially approximates fair value. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 3.9%. As carrying value materially approximates fair value, unrecognized holding gains or losses were insignificant.