Investments

9 Months Ended

Oct. 31, 2015

Investments And Deposits [Abstract]

Investments And Deposits [Text Block]

Note 11. Investments

The following table summarizes equity method investments at October 31, 2015 and January 31, 2015 (amounts in thousands):

Entity	Ownership Percentage			Carrying Amount October 31, 2015		Carrying Amount January 31, 2015
Big River		9.7	%	$	41,088	$	40,188
Patriot (sold June 1, 2015)		N/A			—		40,201
Total Equity Method Investments				$	41,088	$	80,389

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

	Three Months Ended October 31,				Nine Months Ended October 31,
	2015		2014		2015		2014
Big River	$	1,314	$	4,574	$	4,910	$	14,353
Patriot (sold June 1, 2015)		—		4,206		2,947		9,969
Total	$	1,314	$	8,780	$	7,857	$	24,322

Undistributed earnings totaled approximately $21.1 million and $41.9 million at October 31, 2015 (Big River) and January 31, 2015 (Big River and Patriot), respectively. During the first nine months of fiscal years 2015 and 2014, the Company received dividends from equity method investees of approximately $7.6 million and $19.9 million, respectively.

Summarized financial information for each of the Company’s equity method investees is presented in the following table for the periods presented (amounts in thousands):

	Three Months Ended October 31, 2015				Three Months Ended October 31, 2014
	Patriot (1)		Big River		Patriot (1)		Big River
Net sales and revenue	$	—	$	215,902	$	93,056	$	260,908
Gross profit	$	—	$	22,078	$	17,597	$	59,426
Income from continuing operations	$	—	$	13,540	$	15,843	$	47,114
Net income	$	—	$	13,540	$	15,843	$	47,114

	Nine Months Ended October 31, 2015				Nine Months Ended October 31, 2014
	Patriot (1)		Big River		Patriot (1)		Big River
Net sales and revenue	$	115,614	$	623,900	$	252,592	$	854,174
Gross profit	$	14,424	$	71,345	$	42,626	$	183,736
Income from continuing operations	$	11,100	$	50,580	$	37,549	$	147,853
Net income	$	11,100	$	50,580	$	37,549	$	147,853

(1) For Patriot, results are for the five month period ended May 31, 2015 as the Company’s equity interest in Patriot was sold June 1, 2015.

Big River has debt agreements that limit amounts the Company can pay in the form of dividends or advances to owners. The restricted net assets of Big River at October 31, 2015 and January 31, 2015 are approximately $337.3 million and $322.1 million, respectively.

On June 1, 2015, Patriot and a subsidiary of CHS Inc. (“CHS”) completed a merger that resulted in CHS acquiring 100% of the ownership interest in Patriot. The Company received a cash payment of approximately $45.5 million at the closing, representing its proportionate share of the merger consideration for its 27% ownership interest. The total merger consideration was approximately $196 million in cash subject to certain adjustments and certain escrow holdbacks. In connection with this transaction, the Company recognized a gain of approximately $10.4 million. At October 31, 2015, the Company has approximately $2.2 million in accounts receivable and approximately $2.2 million in other long term assets on the accompanying Consolidated Condensed Balance Sheets related to estimated escrow proceeds that were recognized as income. The Company recorded approximately $45.5 million as a cash investing activity in the Consolidated Condensed Statements of Cash Flows. The estimated escrow proceeds of approximately $4.4 million is a non-cash investing activity. The Company expects that a determination of the final payment of escrowed proceeds to be received will occur by December 1, 2016.