Financial Instruments

3 Months Ended

Apr. 30, 2013

Financial Instruments Disclosure [Text Block]

Note 8. Financial Instruments

The Company uses an interest rate swap 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 amount and fair value of the derivative, which is not designated as a cash flow hedge at April 30, 2013, are summarized in the table below (amounts in thousands):

	Notional Amount		Fair Value  Liability
Interest rate swap	$	36,759	$	2,345

As the interest rate swap is not designated as a cash flow hedge, the unrealized gain and loss on the derivative is reported in current earnings. The Company reported gains of $4,000 in the first quarter of fiscal year 2013 and losses of $147,000 in the first quarter of fiscal year 2012.