Investments

9 Months Ended

Oct. 31, 2016

Investments And Deposits [Abstract]

Investments And Deposits [Text Block]

Note 10. Investments

The following table summarizes the equity method investment at October 31, 2016 and January 31, 2016 (dollars in thousands):

Entity	Ownership Percentage			Carrying Amount October 31, 2016		Carrying Amount January 31, 2016
Big River		9.7	%	$	37,954	$	38,707

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

	Three Months Ended October 31,				Nine Months Ended October 31,
	2016		2015		2016		2015
Big River	$	1,838	$	1,314	$	3,257	$	4,910
Patriot (sold June 1, 2015)		—		—		—		2,947
Total	$	1,838	$	1,314	$	3,257	$	7,857

Undistributed earnings of the equity method investee totaled approximately $17.9 million and $18.7 million at October 31, 2016 and January 31, 2016, respectively. During the first nine months of fiscal years 2016 and 2015, the Company received dividends from equity method investees of approximately $4.0 million and $7.6 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, 2016				Three Months Ended October 31, 2015
	Patriot (1)		Big River		Patriot (1)		Big River
Net sales and revenue	$	—	$	216,505	$	—	$	215,902
Gross profit	$	—	$	26,191	$	—	$	22,078
Income from continuing operations	$	—	$	18,934	$	—	$	13,540
Net income	$	—	$	18,934	$	—	$	13,540

	Nine Months Ended October 31, 2016				Nine Months Ended October 31, 2015
	Patriot (1)		Big River		Patriot (1)		Big River
Net sales and revenue	$	—	$	611,050	$	115,614	$	623,900
Gross profit	$	—	$	49,119	$	14,424	$	71,345
Income from continuing operations	$	—	$	33,555	$	11,100	$	50,580
Net income	$	—	$	33,555	$	11,100	$	50,580

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

Big River has debt agreements that limit amounts Big River can pay in the form of dividends or advances to owners. The restricted net assets of Big River at October 31, 2016 and January 31, 2016 are approximately $298.9 million and $306.3 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. During fiscal year 2015, 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 during the second quarter of fiscal year 2015. During the first quarter of fiscal year 2016, the Company received proceeds of approximately $2.3 million as partial payment for certain escrow holdbacks and adjustments to the purchase price. As a result, the Company recognized approximately $0.2 million as gain on sale of investment during the first quarter of fiscal year 2016. At October 31, 2016, the Company has approximately $2.3 million (recognized as gain in fiscal year 2015) in accounts receivable on the accompanying Consolidated Condensed Balance Sheet related to estimated escrow proceeds that were recognized as income. The Company expects that a determination of the final payment of escrowed proceeds to be received will occur by December 1, 2016.