BUSINESS COMBINATION

12 Months Ended

Dec. 31, 2011

Business Combinations [Abstract]

Business Combination

BUSINESS COMBINATION:

In December 2010, the Company completed a business combination with Northstar Agri Industries. The business plan is to build and operate a canola seed crushing plant in Hallock, Minnesota that is expected to become operational in the third quarter of 2012.

The transaction was accounted for using authoritative guidance related to business combinations.  At the date of the combination, PICO contributed $60 million for an 88% ownership and Northstar Agri contributed various assets and certain liabilities in exchange for a 12% interest valued at $8.4 million.  The Company expenses all acquisition related costs.  Such costs for this transaction were not significant.

The transaction resulted in an increase of $18.4 million of assets, primarily $3.3 million in real estate where the plant will be built, $10.5 million in equipment and engineering design plans and goodwill of $4.7 million offset by liabilities of $10 million.  The goodwill was measured as the excess of the fair value of the contribution plus the liabilities less the identifiable assets.  As the Company continues to assess the assets and liabilities contributed, additional change in the allocation may result.

The values assigned to the assets contributed were based on the fair values of the individual assets.  The fair values of the liabilities assumed were based on current amounts due under construction and other contract obligations.  There were no significant revenues or earnings of the previous business in 2010 or 2009.

The following is the allocation of the purchase price (in thousands):

Fair value of contribution	$	8,446
Allocation of Contribution:
Real estate	$	3,285
Equipment	7,295
Design plans	3,165
Goodwill	4,702
Total assets	18,447
Liabilities	(10,001		)
	$	8,446