Investments and Restricted Deposits

6 Months Ended

Jul. 31, 2012

Investments And Deposits [Text Block]

Note 11. Investments and Restricted Deposits

          The Company has approximately $383,000 and $743,000 at July 31, 2012 and January 31, 2012, respectively, on deposit with the Florida Department of Financial Services to secure its obligation to fulfill future obligations related to extended warranty contracts sold in the state of Florida. As such, this deposit is restricted from use for general corporate purposes.

          In addition to the deposit with the Florida Department of Financial Services, the Company has $300,000 at July 31, 2012 and $620,000 at January 31, 2012 invested in a money market mutual fund to satisfy Florida Department of Financial Services regulations. As such, this investment is restricted from use for general corporate purposes.

          The following table summarizes equity method investments at July 31, 2012 and January 31, 2012 (amounts in thousands):

Entity	Ownership Percentage			Carrying Amount July 31, 2012		Carrying Amount January 31, 2012
Big River		10	%	$	33,026	$	34,370
Patriot		27	%		26,538		27,309
Total Equity Method Investments				$	59,564	$	61,679

          The following table summarizes income or (loss) recognized from equity method investments for the periods presented (amounts in thousands):

	Three Months Ended July 31,					Six Months Ended July 31,
	2012			2011		2012			2011
Big River	$	104		$	1,583	$	661		$	2,854
Patriot		(585	)		469		(700	)		1,373
NuGen		—			1,709		—			5,316
Total	$	(481	)	$	3,761	$	(39	)	$	9,543

          Effective July 1, 2010, the Company purchased a 48% equity interest in NuGen which operates an ethanol producing facility in Marion, South Dakota with an annual nameplate capacity of 100 million gallons. The Company accounted for this investment using the equity method of accounting. On November 1, 2011, the Company acquired an additional 50% equity interest in NuGen. Following the purchase, the Company owned all of the outstanding Class A membership interest units in NuGen, representing a 100% voting interest and a 98% equity interest in NuGen. Effective November 1, 2011, the Company ceased using the equity method of accounting and began consolidating the results of NuGen. Prior to consolidation, the Company recorded the results of NuGen on a one month lag. During fiscal year 2011, NuGen adopted the same fiscal year as the Company. As a result, the Company no longer records the results of NuGen on a one month lag. NuGen repurchased shares from noncontrolling interests holders during fiscal year 2012. This increased the Company’s equity interest in NuGen to 99%.

          Undistributed earnings of equity method investees totaled approximately $20.7 million and $22.8 million at July 31, 2012 and January 31, 2012, respectively. During the first six months of fiscal years 2012 and 2011, the Company received dividends from equity method investees of approximately $2.0 million and $2.3 million, respectively.

          Summarized financial information for each of the Company’s equity method investees except for NuGen is presented in the following table for the three and six months ended June 30, 2012 and June 30, 2011. The summarized financial information for NuGen is presented for the three and six months ended July 31, 2011 (amounts in thousands):

Three Months Ended June 30, 2012	Big River		Patriot
Net sales and revenue	$	258,848	$	81,578
Gross profit (loss)	$	8,507	$	(569	)
Income (loss) from continuing operations	$	1,068	$	(2,209	)
Net income (loss)	$	1,068	$	(2,209	)

Three Months Ended June 30, 2011 and July 31, 2011	Big River		Patriot		NuGen
Net sales and revenue	$	236,478	$	101,650	$	86,913
Gross profit	$	8,402	$	4,071	$	6,103
Income from continuing operations	$	16,305	$	2,012	$	3,893
Net income	$	16,305	$	2,012	$	3,893

Six Months Ended June 30, 2012	Big River		Patriot
Net sales and revenue	$	549,851	$	171,389
Gross profit	$	22,515	$	1,208
Income (loss) from continuing operations	$	6,786	$	(2,645	)
Net income (loss)	$	6,786	$	(2,645	)

Six Months Ended June 30, 2011 and July 31, 2011	Big River		Patriot		NuGen
Net sales and revenue	$	478,706	$	189,966	$	168,051
Gross profit	$	31,473	$	9,534	$	14,992
Income from continuing operations	$	29,334	$	5,888	$	11,743
Net income	$	29,334	$	5,888	$	11,743

          Patriot and Big River have debt agreements that limit and restrict amounts the companies can pay in the form of dividends or advances to owners. The restricted net assets of Patriot and Big River combined at July 31, 2012 and January 31, 2012 are approximately $408.1 million and $326.2 million, respectively. The Company’s proportionate share of restricted net assets of Patriot and Big River combined at July 31, 2012 and January 31, 2012 are approximately $55.8 million and $44.2 million, respectively.

          On April 27, 2011, Levelland Hockley voluntarily filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court, Northern District of Texas. In connection with the bankruptcy proceedings, the plant was sold on May 14, 2012 and on August 1, 2012, the bankruptcy case was converted to a Chapter 7 proceeding. As a result, we have no remaining ownership or financial interest in Levelland Hockley and have classified the results of Levelland Hockley as discontinued operations. No periods presented in the Consolidated Condensed Financial Statements were affected by this classification. However, future periodic reports filed with the Securities and Exchange Commission will be affected as years prior to fiscal year 2011 are required to be included in such filings.