Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Jan. 31, 2014 | Mar. 11, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'GOLDEN GRAIN ENERGY, LLC | ' |
Entity Central Index Key | '0001206942 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Jan-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 19,883,000 |
Balance_Sheet
Balance Sheet (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Current Assets | ' | ' |
Cash and equivalents | $4,602,341 | $0 |
Accounts receivable | 6,131,921 | 4,297,920 |
Other receivables | 601,572 | 596,166 |
Derivative instruments | 610,295 | 675,631 |
Inventory | 8,659,260 | 6,974,314 |
Prepaid expenses and other | 1,654,444 | 1,507,370 |
Total current assets | 22,259,833 | 14,051,401 |
Property and Equipment | ' | ' |
Land and land improvements | 11,666,479 | 11,666,479 |
Building and grounds | 25,761,752 | 25,761,752 |
Grain handling equipment | 13,466,553 | 13,457,627 |
Office equipment | 320,345 | 320,345 |
Plant and process equipment | 79,631,519 | 79,854,167 |
Construction in progress | 1,485,532 | 1,270,164 |
Gross property and equipment | 132,332,180 | 132,330,534 |
Less accumulated depreciation | 68,216,583 | 66,216,333 |
Net property and equipment | 64,115,597 | 66,114,201 |
Other Assets | ' | ' |
Investments | 27,892,815 | 28,059,657 |
Other assets | 1,041,185 | 1,272,490 |
Total other assets | 28,934,000 | 29,332,147 |
Total Assets | 115,309,430 | 109,497,749 |
Current Liabilities | ' | ' |
Outstanding checks in excess of bank balance | 0 | 563,531 |
Current portion long-term debt | 38,065 | 37,314 |
Accounts payable | 5,694,945 | 6,138,295 |
Accrued expenses | 1,085,167 | 1,140,979 |
Deferred revenue | 413,594 | 443,407 |
Total current liabilities | 7,231,771 | 8,323,526 |
Long-term Liabilities | ' | ' |
Deferred compensation | 224,865 | 190,762 |
Long-term debt, net of current maturities | 3,312 | 1,583,889 |
Deferred revenue, net of current portion | 1,427,225 | 1,510,848 |
Total long-term liabilities | 1,655,402 | 3,285,499 |
Commitments and Contingencies | ' | ' |
Members' Equity (19,883,000 units issued and outstanding) | 106,422,257 | 97,888,724 |
Total Liabilities and Members’ Equity | $115,309,430 | $109,497,749 |
Balance_Sheet_Parenthetical
Balance Sheet Parenthetical | Jan. 31, 2014 | Oct. 31, 2013 |
Members' Equity, units issued and outstanding | 19,883,000 | 19,883,000 |
Statement_of_Operations
Statement of Operations (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Revenues | $72,987,525 | $85,408,162 |
Cost of Goods Sold | 58,593,832 | 86,373,717 |
Gross Profit (Loss) | 14,393,693 | -965,555 |
Operating Expenses | 784,742 | 771,383 |
Operating Income (Loss) | 13,608,951 | -1,736,938 |
Other Income (Expense) | ' | ' |
Other income (expense) | 88,889 | 0 |
Interest expense | -63,285 | -123,233 |
Equity in net income of investments | 4,840,478 | 96,414 |
Total Other Income (Expense) | 4,866,082 | -26,819 |
Net Income (Loss) | $18,475,033 | ($1,763,757) |
Basic & diluted net income (loss) per unit | $0.93 | ($0.08) |
Weighted average units outstanding for the calculation of basic & diluted net income (loss) per unit | 19,883,000 | 22,934,333 |
Distribution Per Unit | $0.50 | $0 |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Cash Flows from Operating Activities | ' | ' |
Net Income (Loss) | $18,475,033 | ($1,763,757) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,408,998 | 2,361,014 |
Unrealized loss (gain) on risk management activities | 65,336 | -175,826 |
Amortization of deferred revenue | -113,436 | -113,259 |
Change in accretion amounts of interest on grant receivable | -8,410 | -30,524 |
Distributions in excess of earnings from investments | 276,842 | 436,632 |
Deferred compensation expense | 34,103 | 15,187 |
Change in assets and liabilities | ' | ' |
Accounts receivable | -1,834,001 | -732,498 |
Inventory | -1,684,946 | -4,284,366 |
Prepaid expenses and other | -152,480 | -571,680 |
Accounts payable | -443,350 | -164,178 |
Accrued expenses | -55,812 | 72,407 |
Deferred compensation payable | 0 | -67,891 |
Net cash provided by (used in) operating activities | 16,967,877 | -5,018,739 |
Cash Flows from Investing Activities | ' | ' |
Capital expenditures | -407,522 | -1,268,451 |
Purchase of investments | -110,000 | 0 |
Net cash (used in) investing activities | -517,522 | -1,268,451 |
Cash Flows from Financing Activities | ' | ' |
Increase (decrease) in outstanding checks in excess of bank balance | -563,531 | 236,046 |
Proceeds from long-term debt | 0 | 22,848,644 |
Payments for long-term debt | -1,579,826 | 0 |
Payments for debt issuance costs | 0 | -22,500 |
Redemption of membership units | 0 | -17,000,000 |
Distributions to members | -9,941,500 | 0 |
Payment received on deferred contract | 0 | 225,000 |
Payments received on grant receivable | 236,843 | 0 |
Net cash (used in) provided by financing activities | -11,848,014 | 6,287,190 |
Net Increase in Cash and Equivalents | 4,602,341 | 0 |
Cash and Equivalents – Beginning of Period | 0 | 0 |
Cash and Equivalents – End of Period | 4,602,341 | 0 |
Supplemental Cash Flow Information | ' | ' |
Cash paid for interest | 76,250 | 71,162 |
Supplemental Disclosure of Noncash Operating, Investing & Financing Activities | ' | ' |
Accounts Payable related to Construction in Process | $0 | ($204,811) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and notes disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended October 31, 2013, contained in the Company's annual report on Form 10-K for 2013. | |
In the opinion of management, the interim condensed financial statements reflect all adjustments considered necessary for fair presentation. The adjustments made to these statements consist only of normal recurring adjustments. | |
Nature of Business | |
Golden Grain Energy, LLC (Golden Grain Energy) is approximately a 110 million gallon annual production ethanol plant near Mason City, Iowa. The Company sells its production of ethanol, distiller grains with solubles and corn oil primarily in the continental United States. The Company also holds several investments in various companies that focus on ethanol production, marketing and/or logistics. | |
Organization | |
Golden Grain Energy is organized as an Iowa limited liability company. The members' liability is limited as specified in Golden Grain Energy's operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act. | |
Accounting Estimates | |
Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. | |
Cash and Equivalents | |
The Company's cash balances are maintained in bank depositories and periodically exceeded federally insured limits during the year. The Company has not experienced any losses in connection with these balances. | |
Receivables | |
Credit sales are made primarily to one customer and no collateral is required. The Company carries these accounts receivable at face amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. | |
Investments | |
The Company has less than a 20% investment interest in four companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value. | |
The fiscal years of Renewable Products Marketing Group, LLC (RPMG) and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC and Homeland Energy Solutions, LLC end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the quarter ended January 31, 2014 for all companies is based on the investee's results for the three month period ended December 31, 2013. | |
Revenue and Cost Recognition | |
Revenue from the sale of the Company's products is recognized at the time title to the goods and all risks of ownership transfer to the customers. This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Collectability of revenue is reasonably assured based on historical evidence of collectability between the Company and its customers. Interest income is recognized as earned. | |
Shipping costs incurred by the Company in the sale of ethanol, distiller grains and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol, distiller grains and corn oil are recorded based on the net selling price reported to the Company from its marketer. Railcar lease costs incurred by the Company in the sale and shipment of distiller grain products are included in cost of goods sold. | |
Inventory | |
Inventories are generally valued at the lower of weighted average cost or market. In the valuation of inventories and purchase commitments, market is based on current replacement values except that it does not exceed net realizable values and is not less than net realizable values reduced by allowances for approximate normal profit margin. | |
Property & Equipment | |
Property and equipment are stated at costs. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 5 and 40 years. | |
The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the assets may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. | |
Investment in commodities contracts, derivative instruments and hedging activities | |
The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. | |
The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. The Company occasionally also enters into derivative contracts to hedge our exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. | |
Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker. | |
Net income (loss) per unit | |
Basic and diluted earnings per unit are computed using the weighted-average number of Class A and B units outstanding during the period. | |
Fair Value | |
Financial instruments include cash and equivalents, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of derivative financial instruments is based on quoted market prices. The fair value of the long-term debt is estimated based on level 3 inputs based on the current anticipated interest rate which management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and the other market factors. The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. | |
Risks and Uncertainties | |
The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the three months ended January 31, 2014, ethanol sales accounted for approximately 79% of total revenue, distiller grains sales accounted for approximately 18% of total revenue and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 81% of cost of goods sold. | |
The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. |
Inventory
Inventory | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
INVENTORY | |||||||||
Inventory consisted of the following as of January 31, 2014 and October 31, 2013: | |||||||||
January 31, 2014 | 31-Oct-13 | ||||||||
Raw Materials | $ | 4,209,851 | $ | 4,341,444 | |||||
Work in Process | 1,505,253 | 1,550,697 | |||||||
Finished Goods | 2,944,156 | 1,082,173 | |||||||
Totals | $ | 8,659,260 | $ | 6,974,314 | |||||
Bank_Financing
Bank Financing | 3 Months Ended |
Jan. 31, 2014 | |
Bank Financing [Abstract] | ' |
Bank Financing | ' |
BANK FINANCING | |
The Company has entered into a master loan agreement with Farm Credit Services of America (FLCA) which includes a revolving term loan with original maximum borrowings of $30,000,000 and $5,000,000 and mature on February 1, 2019 and February 1, 2020, respectively. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR (3.31% as of January 31, 2014). The borrowings are secured by substantially all the assets of the Company. On December 26, 2012, the Company executed an amended credit agreement that increased the total loan availability from $22.5 million to $35 million. The revolving term loan maximum borrowings are reduced by $2,500,000 on a semi-annual basis starting in August 2013. | |
In addition, the Company is subject to certain financial covenants including but not limited to minimum working capital and net worth requirements and limitations on distributions. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the loans and/or imposition of fees or penalties. As of January 31, 2014, the Company had no outstanding borrowings and $32.5 million additional available to borrow under the credit agreement. As of October 31, 2013, the Company had approximately $1.6 million outstanding. | |
The Company has other notes payable of approximately $41,000 and $50,000 outstanding as of January 31, 2014 and October 31, 2013, respectively. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Jan. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
RELATED PARTY TRANSACTIONS | |
The Company purchased corn and materials from members of its Board of Directors or Risk Management Committee that own or manage elevators. Purchases during the three months ended January 31, 2014 and 2013 totaled approximately $16,977,000, and $19,317,000, respectively. As of January 31, 2014 the amount we owed to related parties was approximately $536,000. | |
The Company entered into an agreement with Homeland Energy Solutions, LLC in December 2008. Pursuant to the agreement, the companies have agreed to share the compensation costs associated with each position covered by the agreement partially in an effort to reduce the costs of administrative overhead. The Company recorded a reduction in expenses related to these shared costs during the three months ended January 31, 2014 and 2013 of approximately $61,000 and $52,000, respectively. |
Employee_Benefit_Plan
Employee Benefit Plan | 3 Months Ended |
Jan. 31, 2014 | |
Employee Benefit Plans [Abstract] | ' |
Employee Benefit Plans | ' |
EMPLOYEE BENEFIT PLANS | |
The Company has a deferred phantom unit compensation plan for certain employees equal to 1% of net income. One-third of the amount is paid in cash immediately and the other two-thirds has a vesting schedule of the lesser of five years from the grant date or seven years of continuous employment with the Company. During the three months ended January 31, 2014 and 2013, the Company recorded compensation expense related to this plan of approximately $34,000 and $15,000, respectively. As of January 31, 2014 and October 31, 2013, the Company had a liability of approximately $225,000 and $190,000 outstanding as deferred compensation, respectively. As of January 31, 2014, the Company had approximately $32,000 to be recognized as future compensation expense. Three of the employees covered under this plan are fully vested and another employee has approximately three years left to vest. The amount to be recognized in future years as compensation expense is estimated based on the greater of fair market value or book value of the Company's membership units as of January 31, 2014. Fair value is determined by recent trading activity of the Company's membership units. |
Commitments_Contingencies_and_
Commitments, Contingencies and Agreements | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Commitments, Contingencies and Agreements [Abstract] | ' | |||||||
Commitments, Contingencies and Agreements | ' | |||||||
COMMITMENTS, CONTINGENCIES AND AGREEMENTS | ||||||||
Ethanol, Distiller Grains and Corn Oil marketing agreements and major customers | ||||||||
The Company has entered into marketing agreements with a marketing company, in which the Company has an investment, for the exclusive rights to market, sell and distribute the entire ethanol, distiller grains and corn oil inventory produced by the Company. The marketing fees are presented net in revenues. | ||||||||
Approximate sales and marketing fees related to the agreements in place are as follows: | ||||||||
Three Months Ended January 31, | ||||||||
2014 | 2013 | |||||||
Sales ethanol, distiller grains & corn oil | $ | 76,705,000 | $ | 85,710,000 | ||||
Marketing fees | 101,000 | 146,000 | ||||||
As of | January 31, 2014 | 31-Oct-13 | ||||||
Amount due from marketer of ethanol, distiller grains & corn oil | $ | 4,818,000 | $ | 4,276,000 | ||||
Risk_Management
Risk Management | 3 Months Ended | ||||||||||||||
Jan. 31, 2014 | |||||||||||||||
Risk Management [Abstract] | ' | ||||||||||||||
Risk Management | ' | ||||||||||||||
RISK MANAGEMENT | |||||||||||||||
The Company's activities expose it to a variety of market risks, including the effects of changes in commodity prices. These financial exposures are monitored and managed by the Company as an integral part of its overall risk-management program. The Company's risk management program focuses on the unpredictability of financial and commodities markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. | |||||||||||||||
To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange traded futures contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of contracts related to corn and natural gas are recorded in cost of goods sold and changes in market prices of contracts related to sale of ethanol are recorded in revenues. | |||||||||||||||
Unrealized gains and losses on forward contracts are deemed "normal purchases" under derivative accounting guidelines and, therefore, are not marked to market in the Company's financial statements. The following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for periods ended January 31, 2014 and 2013 and the fair value of derivatives as of January 31, 2014 and October 31, 2013: | |||||||||||||||
Income Statement Classification | Realized Gain (Loss) | Change in Unrealized Gain (Loss) | Total Gain (Loss) | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity Contracts for the | Revenue | $ | (2,299,000 | ) | $ | (1,317,000 | ) | $ | (3,616,000 | ) | |||||
three months ended January 31, | Cost of Goods Sold | (2,038,000 | ) | 2,592,000 | 554,000 | ||||||||||
2014 | Total | $ | (4,337,000 | ) | $ | 1,275,000 | $ | (3,062,000 | ) | ||||||
Commodity Contracts for the | Revenue | $ | 134,000 | $ | (290,000 | ) | $ | (156,000 | ) | ||||||
three months ended January 31, | Cost of Goods Sold | 855,000 | 29,000 | 884,000 | |||||||||||
2013 | Total | $ | 989,000 | $ | (261,000 | ) | $ | 728,000 | |||||||
Balance Sheet Classification | January 31, 2014 | October 31, 2013 | |||||||||||||
Futures and option contracts through December 2014 | |||||||||||||||
In gain position | $ | 1,085,000 | $ | 3,775,000 | |||||||||||
In loss position | (173,000 | ) | (4,131,000 | ) | |||||||||||
Cash held by (due to) broker | (302,000 | ) | 1,032,000 | ||||||||||||
Current Asset | $ | 610,000 | $ | 676,000 | |||||||||||
As of January 31, 2014, the Company had the following approximate outstanding purchase and sale commitments, of which approximately $4,601,000 of the purchase commitments were with related parties. | |||||||||||||||
Commitments Through | Amount | ||||||||||||||
Ethanol - fixed price | Feb-14 | $ | 4,556,000 | ||||||||||||
Corn - fixed price | Dec-14 | 5,257,000 | |||||||||||||
Corn - basis contract | Mar-14 | 14,247,000 | |||||||||||||
As of January 31, 2014, the Company has fixed price futures and forward contracts in place for approximately 20% of our anticipated corn needs, 0% of our natural gas needs and 2% of our ethanol sales for the next 12 months with no open positions beyond that period. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: | |||||||||||||||||
Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. | |||||||||||||||||
Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. | |||||||||||||||||
Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. | |||||||||||||||||
A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. | |||||||||||||||||
Derivative financial instruments: Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from markets such as the CME and NYMEX. Crush swaps are bundled contracts or combined contracts that include a portion of corn, ethanol and natural gas rolled into a single trading instrument. These contracts are reported at fair value utilizing Level 2 inputs and are based on the various trading activity of the components of each segment of the bundled contract. | |||||||||||||||||
The following table summarizes financial assets and financial liabilities measured at the approximate fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative financial instruments | |||||||||||||||||
31-Jan-14 | |||||||||||||||||
Assets | $ | 1,085,000 | $ | 1,085,000 | $ | — | $ | — | |||||||||
Liabilities | (173,000 | ) | (173,000 | ) | — | — | |||||||||||
31-Oct-13 | |||||||||||||||||
Assets | $ | 3,775,000 | $ | 2,414,000 | $ | 1,361,000 | $ | — | |||||||||
Liabilities | (4,131,000 | ) | (1,861,000 | ) | (2,270,000 | ) | — | ||||||||||
Investments
Investments | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Investments [Abstract] | ' | ||||||||
Investments | ' | ||||||||
INVESTMENTS | |||||||||
Condensed, combined unaudited financial information of the Company’s investment in Absolute Energy, Homeland Energy Solutions, Guardian Energy and RPMG is as follows (in 000’s) | |||||||||
Balance Sheet | 12/31/13 | 9/30/13 | |||||||
Current Assets | $ | 345,801 | $ | 241,993 | |||||
Other Assets | 283,350 | 288,159 | |||||||
Current Liabilities | 243,063 | 164,813 | |||||||
Long-term Debt | 45,769 | 32,597 | |||||||
Members’ Equity | 340,319 | 332,744 | |||||||
Three Months Ended | |||||||||
Income Statement | 12/31/13 | 12/31/12 | |||||||
Revenue | $ | 263,570 | $ | 263,734 | |||||
Gross Profit | 59,235 | 7,409 | |||||||
Net Income | 53,388 | 2,829 | |||||||
The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income for the three months ended January 31, 2014. | |||||||||
Guardian Energy Condensed Financial Information | |||||||||
Balance Sheet | 12/31/13 | 9/30/13 | |||||||
Current Assets | $ | 51,308 | $ | 42,981 | |||||
Other Assets | 63,089 | 65,556 | |||||||
Current Liabilities | 25,016 | 18,958 | |||||||
Long-term Debt | 22,277 | 24,080 | |||||||
Members’ Equity | 67,104 | 65,499 | |||||||
The Company recorded equity in net income of approximately $1,395,000 from Absolute Energy, $2,297,000 from Guardian Energy, $963,000 from Homeland Energy Solutions and $149,000 from our other investments for a total of approximately $4,840,000 for the three months ended January 31, 2014. Income for the three months ended January 31, 2013 totaled approximately $96,000. |
Accounting_Policies
Accounting Policies | 3 Months Ended |
Jan. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Accounting Estimates | ' |
Accounting Estimates | |
Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. | |
Cash and Equivalents | ' |
Cash and Equivalents | |
The Company's cash balances are maintained in bank depositories and periodically exceeded federally insured limits during the year. The Company has not experienced any losses in connection with these balances. | |
Receivables | ' |
Receivables | |
Credit sales are made primarily to one customer and no collateral is required. The Company carries these accounts receivable at face amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. | |
Investments | ' |
Investments | |
The Company has less than a 20% investment interest in four companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value. | |
The fiscal years of Renewable Products Marketing Group, LLC (RPMG) and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC and Homeland Energy Solutions, LLC end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the quarter ended January 31, 2014 for all companies is based on the investee's results for the three month period ended December 31, 2013. | |
Revenue and Cost Recognition | ' |
Revenue and Cost Recognition | |
Revenue from the sale of the Company's products is recognized at the time title to the goods and all risks of ownership transfer to the customers. This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Collectability of revenue is reasonably assured based on historical evidence of collectability between the Company and its customers. Interest income is recognized as earned. | |
Shipping costs incurred by the Company in the sale of ethanol, distiller grains and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol, distiller grains and corn oil are recorded based on the net selling price reported to the Company from its marketer. Railcar lease costs incurred by the Company in the sale and shipment of distiller grain products are included in cost of goods sold. | |
Inventory | ' |
Inventory | |
Inventories are generally valued at the lower of weighted average cost or market. In the valuation of inventories and purchase commitments, market is based on current replacement values except that it does not exceed net realizable values and is not less than net realizable values reduced by allowances for approximate normal profit margin. | |
Property and Equipment | ' |
Property & Equipment | |
Property and equipment are stated at costs. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 5 and 40 years. | |
The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the assets may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. | |
Investment in commodities contracts, derivative instruments and hedging activities | ' |
Investment in commodities contracts, derivative instruments and hedging activities | |
The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. | |
The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. The Company occasionally also enters into derivative contracts to hedge our exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. | |
Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker. | |
Net income (loss) per unit | ' |
Net income (loss) per unit | |
Basic and diluted earnings per unit are computed using the weighted-average number of Class A and B units outstanding during the period. | |
Fair Value | ' |
Fair Value | |
Financial instruments include cash and equivalents, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of derivative financial instruments is based on quoted market prices. The fair value of the long-term debt is estimated based on level 3 inputs based on the current anticipated interest rate which management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and the other market factors. The fair value of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. | |
Risks and Uncertainties | ' |
Risks and Uncertainties | |
The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the three months ended January 31, 2014, ethanol sales accounted for approximately 79% of total revenue, distiller grains sales accounted for approximately 18% of total revenue and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 81% of cost of goods sold. | |
The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
January 31, 2014 | 31-Oct-13 | ||||||||
Raw Materials | $ | 4,209,851 | $ | 4,341,444 | |||||
Work in Process | 1,505,253 | 1,550,697 | |||||||
Finished Goods | 2,944,156 | 1,082,173 | |||||||
Totals | $ | 8,659,260 | $ | 6,974,314 | |||||
Commitments_Contingencies_and_1
Commitments, Contingencies and Agreements (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Commitments, Contingencies and Agreements [Abstract] | ' | |||||||
Schedule of Related Party Transactions | ' | |||||||
Three Months Ended January 31, | ||||||||
2014 | 2013 | |||||||
Sales ethanol, distiller grains & corn oil | $ | 76,705,000 | $ | 85,710,000 | ||||
Marketing fees | 101,000 | 146,000 | ||||||
As of | January 31, 2014 | 31-Oct-13 | ||||||
Amount due from marketer of ethanol, distiller grains & corn oil | $ | 4,818,000 | $ | 4,276,000 | ||||
Risk_Management_Tables
Risk Management (Tables) | 3 Months Ended | ||||||||||||||
Jan. 31, 2014 | |||||||||||||||
Risk Management [Abstract] | ' | ||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||
Income Statement Classification | Realized Gain (Loss) | Change in Unrealized Gain (Loss) | Total Gain (Loss) | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity Contracts for the | Revenue | $ | (2,299,000 | ) | $ | (1,317,000 | ) | $ | (3,616,000 | ) | |||||
three months ended January 31, | Cost of Goods Sold | (2,038,000 | ) | 2,592,000 | 554,000 | ||||||||||
2014 | Total | $ | (4,337,000 | ) | $ | 1,275,000 | $ | (3,062,000 | ) | ||||||
Commodity Contracts for the | Revenue | $ | 134,000 | $ | (290,000 | ) | $ | (156,000 | ) | ||||||
three months ended January 31, | Cost of Goods Sold | 855,000 | 29,000 | 884,000 | |||||||||||
2013 | Total | $ | 989,000 | $ | (261,000 | ) | $ | 728,000 | |||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||
Balance Sheet Classification | January 31, 2014 | October 31, 2013 | |||||||||||||
Futures and option contracts through December 2014 | |||||||||||||||
In gain position | $ | 1,085,000 | $ | 3,775,000 | |||||||||||
In loss position | (173,000 | ) | (4,131,000 | ) | |||||||||||
Cash held by (due to) broker | (302,000 | ) | 1,032,000 | ||||||||||||
Current Asset | $ | 610,000 | $ | 676,000 | |||||||||||
Long-term Purchase Commitment | ' | ||||||||||||||
Commitments Through | Amount | ||||||||||||||
Ethanol - fixed price | Feb-14 | $ | 4,556,000 | ||||||||||||
Corn - fixed price | Dec-14 | 5,257,000 | |||||||||||||
Corn - basis contract | Mar-14 | 14,247,000 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative financial instruments | |||||||||||||||||
31-Jan-14 | |||||||||||||||||
Assets | $ | 1,085,000 | $ | 1,085,000 | $ | — | $ | — | |||||||||
Liabilities | (173,000 | ) | (173,000 | ) | — | — | |||||||||||
31-Oct-13 | |||||||||||||||||
Assets | $ | 3,775,000 | $ | 2,414,000 | $ | 1,361,000 | $ | — | |||||||||
Liabilities | (4,131,000 | ) | (1,861,000 | ) | (2,270,000 | ) | — | ||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Investments [Abstract] | ' | ||||||||
Schedule of Equity Method Investments | ' | ||||||||
Balance Sheet | 12/31/13 | 9/30/13 | |||||||
Current Assets | $ | 345,801 | $ | 241,993 | |||||
Other Assets | 283,350 | 288,159 | |||||||
Current Liabilities | 243,063 | 164,813 | |||||||
Long-term Debt | 45,769 | 32,597 | |||||||
Members’ Equity | 340,319 | 332,744 | |||||||
Three Months Ended | |||||||||
Income Statement | 12/31/13 | 12/31/12 | |||||||
Revenue | $ | 263,570 | $ | 263,734 | |||||
Gross Profit | 59,235 | 7,409 | |||||||
Net Income | 53,388 | 2,829 | |||||||
The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income for the three months ended January 31, 2014. | |||||||||
Guardian Energy Condensed Financial Information | |||||||||
Balance Sheet | 12/31/13 | 9/30/13 | |||||||
Current Assets | $ | 51,308 | $ | 42,981 | |||||
Other Assets | 63,089 | 65,556 | |||||||
Current Liabilities | 25,016 | 18,958 | |||||||
Long-term Debt | 22,277 | 24,080 | |||||||
Members’ Equity | 67,104 | 65,499 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Jan. 31, 2014 | |
gal | |
Product Information [Line Items] | ' |
Equity Method Investments, Number of Entities | 4 |
Ethanol [Member] | ' |
Product Information [Line Items] | ' |
Annual Production Capacity | 110,000,000 |
Property_and_Equipment_Details
Property and Equipment (Details) (Property, Plant and Equipment [Member]) | 3 Months Ended |
Jan. 31, 2014 | |
Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '5 |
Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '40 |
Concentration_Risk_Details
Concentration Risk (Details) | 3 Months Ended |
Jan. 31, 2014 | |
Sales Revenue, Product Line [Member] | Ethanol [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 79.00% |
Sales Revenue, Product Line [Member] | Distillers Grains [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 18.00% |
Sales Revenue, Product Line [Member] | Corn Oil [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 3.00% |
Cost of Goods, Total [Member] | Corn [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 81.00% |
Inventory_Details
Inventory (Details) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Inventory [Abstract] | ' | ' |
Raw Materials | $4,209,851 | $4,341,444 |
Work in Process | 1,505,253 | 1,550,697 |
Finished Goods | 2,944,156 | 1,082,173 |
Inventory | $8,659,260 | $6,974,314 |
Bank_Financing_Long_Term_Debt_
Bank Financing Long Term Debt (Details) (Farm Credit Services of America [Member], USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Dec. 26, 2012 |
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | $30,000,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | ' | ' |
Debt Instrument, Interest Rate at Period End | 3.31% | ' | ' |
Debt Instrument, Borrowing Amount Available | ' | 35,000,000 | 22,500,000 |
Long-term Debt | 0 | 1,570,775 | ' |
Debt Instrument, Unused Borrowing Capacity, Amount | 32,500,000 | ' | ' |
Revolving Credit Facility [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | 5,000,000 | ' | ' |
Debt Instrument, Periodic Reduction | $2,500,000 | ' | ' |
Bank_Financing_Short_Term_Debt
Bank Financing Short Term Debt (Details) (Notes Payable, Other Payables [Member], USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Notes Payable, Other Payables [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Notes Payable, Current | $41,000 | $50,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Accounts Payable, Related Parties | $536,208 | ' |
Director [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Transaction, Purchases from Related Party | 16,977,000 | 19,317,000 |
Limited Liability Company [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $61,000 | $52,000 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 3 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Deferred compensation | $224,865 | ' | $190,762 |
Deferred Phantom Unit Compensation Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-Based Compensation, Percentage of Net Income | 1.00% | ' | ' |
Allocated Share-based Compensation Expense | 34,000 | 15,000 | ' |
Deferred compensation | -224,865 | ' | 190,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $32,313 | ' | ' |
Commitments_Contingencies_and_2
Commitments, Contingencies and Agreements (Details) (Investee [Member], USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 |
Investee [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from Related Parties | $76,705 | $85,710 | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 101 | 146 | ' |
Related Party Transaction, Due from (to) Related Party | $4,818 | ' | $4,276 |
Risk_Management_Derivative_Ins
Risk Management Derivative Instruments - Income Statement (Details) (Not Designated as Hedging Instrument [Member], Commodity Contract [Member], USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | ($4,337,000) | $989,000 |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | 1,275,000 | -261,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -3,062,000 | 728,000 |
Sales [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | -2,299,000 | 134,000 |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | -1,317,000 | -290,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -3,616,000 | -156,000 |
Cost of Sales [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | -2,038,000 | 855,000 |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | 2,592,000 | 29,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $554,000 | $884,000 |
Risk_Management_Derivative_Ins1
Risk Management Derivative Instruments - Balance Sheet Location (Details) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Instruments and Hedges, Assets | $610,295 | $675,631 |
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Liability [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities, Current | -173,000 | -4,131,000 |
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | 1,085,000 | 3,775,000 |
Restricted Cash and Cash Equivalents | -302,000 | 1,032,000 |
Derivative Instruments and Hedges, Assets | $610,000 | $676,000 |
Risk_Management_Long_Term_Purc
Risk Management Long Term Purchase Commitments (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Oct. 31, 2013 |
Fixed Price [Member] | Fixed Price [Member] | Basis Contract [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Affiliated Entity [Member] | |
Ethanol [Member] | Corn [Member] | Corn [Member] | Natural Gas [Member] | Corn [Member] | Ethanol [Member] | ||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Supply Commitment, Remaining Minimum Amount Committed | $4,556,000 | ' | ' | ' | ' | ' | ' |
Purchase Obligation | ' | ' | ' | ' | ' | ' | 4,601,151 |
Purchase Commitment, Remaining Minimum Amount Committed | ' | $5,257,000 | $14,247,000 | ' | ' | ' | ' |
Product usage, percentage | ' | ' | ' | 0.00% | 20.00% | 2.00% | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Commodity Contract [Member], Fair Value, Measurements, Recurring [Member], USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Other Current Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets, Current | $1,085,000 | $3,775,000 |
Other Current Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets, Current | 1,085,000 | 3,775,000 |
Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets, Current | 1,085,000 | 2,414,000 |
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets, Current | 0 | 1,361,000 |
Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets, Current | 0 | 0 |
Liability [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities, Current | -173,000 | -4,131,000 |
Liability [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities, Current | -173,000 | -4,131,000 |
Liability [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities, Current | -173,000 | -1,861,000 |
Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities, Current | 0 | -2,270,000 |
Liability [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities, Current | $0 | $0 |
Investments_Details
Investments (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | |
Absolute Energy [Member] | Guardian Energy [Member] | Guardian Energy [Member] | Guardian Energy [Member] | Equity Method Investee [Member] | Equity Method Investee [Member] | Equity Method Investee [Member] | Homeland Energy Solutions [Member] | Other Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Current Assets | ' | ' | ' | ' | $51,308,000 | $42,981,000 | $345,801,000 | ' | $241,993,000 | ' | ' |
Equity Method Investment, Other Assets | ' | ' | ' | ' | 63,089,000 | 65,556,000 | 283,350,000 | ' | 288,159,000 | ' | ' |
Equity Method Investment, Current Liabilities | ' | ' | ' | ' | 25,016,000 | 18,958,000 | 243,063,000 | ' | 164,813,000 | ' | ' |
Equity Method Investment, Long-term Debt | ' | ' | ' | ' | 22,277,000 | 24,080,000 | 45,769,000 | ' | 32,597,000 | ' | ' |
Equity Method Investment, Members' Equity | ' | ' | ' | ' | 67,104,000 | 65,499,000 | 340,319,000 | ' | 332,744,000 | ' | ' |
Equity Method Investment, Revenue | ' | ' | ' | ' | ' | ' | 263,570,000 | 263,734,000 | ' | ' | ' |
Equity Method Investment, Gross Profit | ' | ' | ' | ' | ' | ' | 59,235,000 | 7,409,000 | ' | ' | ' |
Equity Method Investment, Net Income | ' | ' | ' | ' | ' | ' | 53,388,000 | 2,829,000 | ' | ' | ' |
Equity in net income of investments | $4,840,478 | $96,414 | $1,394,547 | $2,296,703 | ' | ' | ' | ' | ' | $962,792 | $148,939 |