Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Jul. 31, 2015 | Sep. 11, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | GOLDEN GRAIN ENERGY, LLC | |
Entity Central Index Key | 1,206,942 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 19,873,000 |
Balance Sheet
Balance Sheet - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
Current Assets | ||
Cash and equivalents | $ 23,640,864 | $ 47,444,566 |
Marketable securities | 6,179,328 | 8,262,637 |
Accounts receivable | 1,932,651 | 7,586,542 |
Other receivables | 646,880 | 752,305 |
Derivative instruments | 686,093 | 385,815 |
Inventory | 7,487,102 | 4,860,052 |
Prepaid expenses and other | 1,883,280 | 987,640 |
Total current assets | 42,456,198 | 70,279,557 |
Property and Equipment | ||
Land and land improvements | 12,516,479 | 11,666,479 |
Building and grounds | 25,761,752 | 25,761,752 |
Grain handling equipment | 14,683,495 | 13,519,305 |
Office equipment | 197,308 | 197,308 |
Plant and process equipment | 85,859,011 | 81,520,875 |
Construction in progress | 2,352,295 | 2,252,148 |
Gross property and equipment | 141,370,340 | 134,917,867 |
Less accumulated depreciation | 81,308,209 | 75,273,527 |
Net property and equipment | 60,062,131 | 59,644,340 |
Other Assets | ||
Investments | 28,229,346 | 36,788,435 |
Other assets | 361,453 | 845,483 |
Total other assets | 28,590,799 | 37,633,918 |
Total Assets | 131,109,128 | 167,557,815 |
Current Liabilities | ||
Current portion long-term debt | 0 | 13,114 |
Accounts payable | 5,232,658 | 5,575,194 |
Accrued expenses | 1,391,694 | 1,908,324 |
Other current liabilities | 145,485 | 295,340 |
Total current liabilities | 6,769,837 | 7,791,972 |
Long-term Liabilities | ||
Deferred compensation | 266,486 | 235,421 |
Deferred revenue, net of current portion | 229,075 | 306,861 |
Total long-term liabilities | $ 495,561 | $ 542,282 |
Commitments and Contingencies | ||
Members' Equity (19,873,000 units issued and outstanding) | $ 123,843,730 | $ 159,223,561 |
Total Liabilities and Members’ Equity | $ 131,109,128 | $ 167,557,815 |
Balance Sheet Parenthetical
Balance Sheet Parenthetical - shares | Jul. 31, 2015 | Oct. 31, 2014 |
Members' Equity, units issued and outstanding | 19,873,000 | 19,873,000 |
Statement of Operations
Statement of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Revenues | $ 52,082,545 | $ 70,787,145 | $ 165,984,860 | $ 223,329,981 |
Cost of Goods Sold | 46,027,948 | 51,794,354 | 143,749,608 | 171,354,608 |
Gross Profit | 6,054,597 | 18,992,791 | 22,235,252 | 51,975,373 |
Operating Expenses | 739,917 | 1,025,631 | 2,491,322 | 2,797,894 |
Operating Income | 5,314,680 | 17,967,160 | 19,743,930 | 49,177,479 |
Other Income (Expense) | ||||
Other income | 44,897 | 80,665 | 543,329 | 532,942 |
Interest (expense) | (25,087) | (45,828) | (94,694) | (155,814) |
Equity in net income of investments | 2,021,660 | 3,923,759 | 6,033,904 | 13,623,891 |
Total Other Income | 2,041,470 | 3,958,596 | 6,482,539 | 14,001,019 |
Net Income | $ 7,356,150 | $ 21,925,756 | $ 26,226,469 | $ 63,178,498 |
Basic & diluted net income per unit | $ 0.37 | $ 1.10 | $ 1.32 | $ 3.18 |
Weighted average units outstanding for the calculation of basic & diluted net income per unit | 19,873,000 | 19,883,000 | 19,873,000 | 19,883,000 |
Distribution Per Unit | $ 0.50 | $ 0 | $ 3.10 | $ 0.90 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 9 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Cash Flows from Operating Activities | ||
Net Income | $ 26,226,469 | $ 63,178,498 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,043,295 | 7,237,273 |
Unrealized (gain) on risk management & marketable securities | (366,969) | (653,853) |
Amortization of deferred revenue | (227,641) | (313,050) |
Change in accretion of interest on grant receivable | (45,592) | (17,159) |
Distributions (earnings) in excess of earnings (distributions) from investments | 8,559,089 | (4,553,415) |
Deferred compensation expense | 157,079 | 38,299 |
Change in assets and liabilities | ||
Accounts receivable | 5,653,891 | (3,279,894) |
Inventory | (2,627,050) | (254,561) |
Prepaid expenses and other | (775,430) | (119,278) |
Accounts payable | (1,163,525) | (63,734) |
Accrued expenses | (516,630) | 212,794 |
Deferred compensation payable | (126,014) | 0 |
Net cash provided by operating activities | 40,790,972 | 61,411,920 |
Cash Flows from Investing Activities | ||
Capital expenditures | (5,631,484) | (2,097,121) |
Purchase of marketable securities | (3,000,000) | (13,750,000) |
Proceeds from sale of marketable securities | 5,150,000 | 0 |
Purchase of investments | 0 | (330,000) |
Net cash (used in) investing activities | (3,481,484) | (16,177,121) |
Cash Flows from Financing Activities | ||
(Decrease) in outstanding checks in excess of bank balance | 0 | (563,531) |
Payments for long-term debt | (13,114) | (1,598,480) |
Distributions to members | (61,606,300) | (17,894,700) |
Payments received on grant receivable | 506,224 | 473,686 |
Net cash (used in) financing activities | (61,113,190) | (19,583,025) |
Net (Decrease) Increase in Cash and Equivalents | (23,803,702) | 25,651,774 |
Cash and Equivalents – Beginning of Period | 47,444,566 | 0 |
Cash and Equivalents – End of Period | 23,640,864 | 25,651,774 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 108,598 | 169,896 |
Supplemental Disclosure of Noncash Operating, Investing & Financing Activities | ||
Accounts payable related to construction in process | 820,989 | 0 |
Deferred revenue reclassified as a reduction in fixed assets | $ 0 | $ 450,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 31, 2015 | |
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, 2014, contained in the Company's annual report on Form 10-K for 2014. 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 exceed federally insured limits during the period. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments that are readily convertible into known amounts of cash which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less. Marketable Securities Marketable securities consist of certificates of deposits with original maturities of greater than three months and mutual funds. Certificates of deposit are considered held to maturity securities, which are measured at cost. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense). At July 31, 2015 , marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $6,136,000 and $6,179,000 , respectively. At October 31, 2014, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $5,211,000 and $5,263,000 , respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $3,000,000 . For the three months ended July 31, 2015 the Company recorded a net unrealized gain of approximately $1,000 from these investments as part of other income (expense). For the nine months ended July 31, 2015 the Company recorded a net realized and unrealized gain of approximately $23,000 and $43,000 , respectively, from these investments as part of other income (expense). For the three and nine months ended July 31, 2014 the Company recorded a net unrealized loss of approximately $24,000 from these investments as part of other income (expense). Receivables Credit sales are made primarily to one customer and no collateral is required. The Company carries these accounts receivable at original invoice 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 period ended July 31, 2015 for all companies is based on the investee's results for the three and nine months ended June 30, 2015. 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 historical cost. 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 3 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 its 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 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, certificates of deposit, marketable securities, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of marketable securities and 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, determined using level 3 inputs, 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 and nine months ended July 31, 2015 , ethanol sales accounted for approximately 77% and 80% of total revenue, respectively, distiller grains sales accounted for approximately 20% and 17% of total revenue, respectively, and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 74% and 78% of cost of goods sold, respectively. 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 | 9 Months Ended |
Jul. 31, 2015 | |
Inventory [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of July 31, 2015 and October 31, 2014 : July 31, 2015 October 31, 2014 Raw Materials $ 3,863,173 $ 3,150,725 Work in Process 1,247,174 1,193,582 Finished Goods 2,376,755 515,745 Totals $ 7,487,102 $ 4,860,052 |
Bank Financing
Bank Financing | 9 Months Ended |
Jul. 31, 2015 | |
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 which 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 ( 3.34% as of July 31, 2015 ). The borrowings are secured by substantially all the assets of the Company. The revolving term loan maximum borrowings are reduced by $2,500,000 on a semi-annual basis starting in August 2013. The agreement allows for additional reductions in the maximum borrowings at the Company's request. 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 July 31, 2015 , the Company had no outstanding borrowings and $20 million additional available to borrow under the credit agreement. As of October 31, 2014 , the Company had no borrowings outstanding. The Company had other notes payable of approximately $0 and $13,000 outstanding as of July 31, 2015 and October 31, 2014 , respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jul. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 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 from the related parties during the three and nine months ended July 31, 2015 totaled approximately $16,056,000 and $53,816,000 , respectively. Purchases during the three and nine months ended July 31, 2014 totaled approximately $14,443,000 and $51,832,000 , respectively. As of July 31, 2015 the amount owed to related parties was approximately $5,000 . Previously, the Company had a management services agreement with Homeland Energy Solutions, LLC to share the compensation costs associated with each management position covered under the agreement partially in an effort to reduce the costs of administrative overhead. This agreement was terminated on May 16, 2014. The Company recorded a reduction in expenses related to these shared costs during the three months and nine months ended July 31, 2014 of approximately none and $118,000 , respectively. |
Commitments, Contingencies and
Commitments, Contingencies and Agreements | 9 Months Ended |
Jul. 31, 2015 | |
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 July 31, Nine Months Ended July 31, 2015 2014 2015 2014 Sales ethanol, distiller grains & corn oil $ 52,137,000 $ 71,437,000 $ 166,309,000 $ 227,800,000 Marketing fees 113,000 105,000 320,000 310,000 As of July 31, 2015 October 31, 2014 Amount due from marketer $ 1,932,000 $ 7,587,000 |
Risk Management
Risk Management | 9 Months Ended |
Jul. 31, 2015 | |
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 the periods ended July 31, 2015 and 2014 and the fair value of derivatives as of July 31, 2015 and October 31, 2014: 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 $ 91,000 $ (32,000 ) $ 59,000 three months ended July 31, 2015 Cost of Goods Sold (423,000 ) (184,000 ) (607,000 ) Total $ (332,000 ) $ (216,000 ) $ (548,000 ) Commodity Contracts for the Revenue $ (474,000 ) $ (70,000 ) $ (544,000 ) three months ended July 31, 2014 Cost of Goods Sold 2,367,000 3,516,000 5,883,000 Total $ 1,893,000 $ 3,446,000 $ 5,339,000 Commodity Contracts for the Revenue $ 43,000 $ (48,000 ) $ (5,000 ) nine months ended July 31, 2015 Cost of Goods Sold 8,000 496,000 504,000 Total $ 51,000 $ 448,000 $ 499,000 Commodity Contracts for the Revenue $ (2,774,000 ) $ (1,386,000 ) $ (4,160,000 ) nine months ended July 31, 2014 Cost of Goods Sold (288,000 ) 4,589,000 4,301,000 Total $ (3,062,000 ) $ 3,203,000 $ 141,000 Balance Sheet Classification July 31, 2015 October 31, 2014 Futures and option contracts through December 2015 In gain position $ 381,000 $ 648,000 In loss position (12,000 ) (726,000 ) Cash held by broker 317,000 464,000 Current Asset $ 686,000 $ 386,000 As of July 31, 2015 , the Company had the following approximate outstanding purchase and sale commitments, of which approximately $8,769,000 of the purchase commitments were with related parties. Commitments Through Amount Sale commitments Corn Oil - fixed price September 2015 $ 1,172,000 Distiller Grains - fixed price September 2015 5,015,000 Purchase commitments Corn - fixed price July 2016 $ 7,711,000 Corn - basis contract October 2015 12,448,000 Natural gas - fixed price March 2016 1,003,000 As of July 31, 2015 , the Company has fixed price futures and forward contracts in place for approximately 11% of our anticipated corn needs, 10% 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 | 9 Months Ended |
Jul. 31, 2015 | |
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. Marketable Securities: The Company's short-term investments are classified within Level 1 and comprised of short-term liquid investments (e.g. mutual funds), classified as trading securities, which are carried at fair value based on the quoted market prices. 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 Marketable securities Assets, July 31, 2015 $ 6,179,000 $ 6,179,000 $ — $ — Assets, October 31, 2014 5,264,000 5,264,000 — — Derivative financial instruments July 31, 2015 Assets $ 381,000 $ 333,000 $ 48,000 $ — Liabilities (12,000 ) — (12,000 ) — October 31, 2014 Assets $ 648,000 $ 447,000 $ 201,000 $ — Liabilities (726,000 ) (610,000 ) (116,000 ) — |
Investments
Investments | 9 Months Ended |
Jul. 31, 2015 | |
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 6/30/2015 9/30/2014 Current Assets $ 266,452 $ 320,903 Other Assets 254,236 267,563 Current Liabilities 150,895 140,262 Long-term Debt 29,441 17,007 Members’ Equity 340,352 431,197 Three Months Ended July 31. Nine Months Ended July 31. Income Statement 2015 2014 2015 2014 Revenue $ 198,940 $ 236,440 $ 594,186 $ 746,589 Gross Profit 27,932 53,352 84,973 170,079 Net Income 23,251 48,753 70,581 155,714 The Company recorded equity in net income of approximately (in 000's): Three Months Ended July 31, Nine Months Ended July, Equity in Net Income 2015 2014 2015 2014 Absolute Energy $ 498 $ 1,304 $ 1,936 $ 3,843 Guardian Energy 767 802 1,788 5,458 Homeland Energy Solutions 667 1,735 1,878 3,894 Other 90 83 432 429 Total $ 2,022 $ 3,924 $ 6,034 $ 13,624 The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income during certain periods presented: Guardian Energy Condensed Financial Information Balance Sheet 6/30/2015 9/30/2014 Current Assets $ 18,164 $ 68,726 Other Assets 49,212 56,576 Current Liabilities 14,822 22,193 Long-term Debt 29,200 16,788 Members’ Equity 23,354 86,321 Three Months Ended Nine Months Ended Income Statement 6/30/2015 6/30/2014 6/30/2015 6/30/2014 Revenue $ 62,256 $ 61,473 $ 177,373 $ 231,548 Gross Profit 10,896 11,059 28,543 61,872 Net Income 7,157 7,582 17,033 51,352 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Jul. 31, 2015 | |
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 exceed federally insured limits during the period. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments that are readily convertible into known amounts of cash which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less. |
Marketable Securities | Marketable Securities Marketable securities consist of certificates of deposits with original maturities of greater than three months and mutual funds. Certificates of deposit are considered held to maturity securities, which are measured at cost. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense). At July 31, 2015 , marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $6,136,000 and $6,179,000 , respectively. At October 31, 2014, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $5,211,000 and $5,263,000 , respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $3,000,000 . For the three months ended July 31, 2015 the Company recorded a net unrealized gain of approximately $1,000 from these investments as part of other income (expense). For the nine months ended July 31, 2015 the Company recorded a net realized and unrealized gain of approximately $23,000 and $43,000 , respectively, from these investments as part of other income (expense). For the three and nine months ended July 31, 2014 the Company recorded a net unrealized loss of approximately $24,000 from these investments as part of other income (expense). |
Receivables | Receivables Credit sales are made primarily to one customer and no collateral is required. The Company carries these accounts receivable at original invoice 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 period ended July 31, 2015 for all companies is based on the investee's results for the three and nine months ended June 30, 2015. |
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 historical cost. 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 3 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 its 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 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, certificates of deposit, marketable securities, receivables, accounts payable, accrued expenses, long-term debt and derivative instruments. The fair value of marketable securities and 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, determined using level 3 inputs, 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 and nine months ended July 31, 2015 , ethanol sales accounted for approximately 77% and 80% of total revenue, respectively, distiller grains sales accounted for approximately 20% and 17% of total revenue, respectively, and corn oil sales accounted for approximately 3% of total revenue while corn costs averaged approximately 74% and 78% of cost of goods sold, respectively. 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) | 9 Months Ended |
Jul. 31, 2015 | |
Inventory [Abstract] | |
Schedule of Inventory | July 31, 2015 October 31, 2014 Raw Materials $ 3,863,173 $ 3,150,725 Work in Process 1,247,174 1,193,582 Finished Goods 2,376,755 515,745 Totals $ 7,487,102 $ 4,860,052 |
Commitments, Contingencies an16
Commitments, Contingencies and Agreements (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Commitments, Contingencies and Agreements [Abstract] | |
Schedule of Related Party Transactions | Three Months Ended July 31, Nine Months Ended July 31, 2015 2014 2015 2014 Sales ethanol, distiller grains & corn oil $ 52,137,000 $ 71,437,000 $ 166,309,000 $ 227,800,000 Marketing fees 113,000 105,000 320,000 310,000 As of July 31, 2015 October 31, 2014 Amount due from marketer $ 1,932,000 $ 7,587,000 |
Risk Management (Tables)
Risk Management (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
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 $ 91,000 $ (32,000 ) $ 59,000 three months ended July 31, 2015 Cost of Goods Sold (423,000 ) (184,000 ) (607,000 ) Total $ (332,000 ) $ (216,000 ) $ (548,000 ) Commodity Contracts for the Revenue $ (474,000 ) $ (70,000 ) $ (544,000 ) three months ended July 31, 2014 Cost of Goods Sold 2,367,000 3,516,000 5,883,000 Total $ 1,893,000 $ 3,446,000 $ 5,339,000 Commodity Contracts for the Revenue $ 43,000 $ (48,000 ) $ (5,000 ) nine months ended July 31, 2015 Cost of Goods Sold 8,000 496,000 504,000 Total $ 51,000 $ 448,000 $ 499,000 Commodity Contracts for the Revenue $ (2,774,000 ) $ (1,386,000 ) $ (4,160,000 ) nine months ended July 31, 2014 Cost of Goods Sold (288,000 ) 4,589,000 4,301,000 Total $ (3,062,000 ) $ 3,203,000 $ 141,000 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Balance Sheet Classification July 31, 2015 October 31, 2014 Futures and option contracts through December 2015 In gain position $ 381,000 $ 648,000 In loss position (12,000 ) (726,000 ) Cash held by broker 317,000 464,000 Current Asset $ 686,000 $ 386,000 |
Long-term Purchase Commitment | Commitments Through Amount Sale commitments Corn Oil - fixed price September 2015 $ 1,172,000 Distiller Grains - fixed price September 2015 5,015,000 Purchase commitments Corn - fixed price July 2016 $ 7,711,000 Corn - basis contract October 2015 12,448,000 Natural gas - fixed price March 2016 1,003,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Total Level 1 Level 2 Level 3 Marketable securities Assets, July 31, 2015 $ 6,179,000 $ 6,179,000 $ — $ — Assets, October 31, 2014 5,264,000 5,264,000 — — Derivative financial instruments July 31, 2015 Assets $ 381,000 $ 333,000 $ 48,000 $ — Liabilities (12,000 ) — (12,000 ) — October 31, 2014 Assets $ 648,000 $ 447,000 $ 201,000 $ — Liabilities (726,000 ) (610,000 ) (116,000 ) — |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Investments [Abstract] | |
Schedule of Equity Method Investments | Balance Sheet 6/30/2015 9/30/2014 Current Assets $ 266,452 $ 320,903 Other Assets 254,236 267,563 Current Liabilities 150,895 140,262 Long-term Debt 29,441 17,007 Members’ Equity 340,352 431,197 Three Months Ended July 31. Nine Months Ended July 31. Income Statement 2015 2014 2015 2014 Revenue $ 198,940 $ 236,440 $ 594,186 $ 746,589 Gross Profit 27,932 53,352 84,973 170,079 Net Income 23,251 48,753 70,581 155,714 The Company recorded equity in net income of approximately (in 000's): Three Months Ended July 31, Nine Months Ended July, Equity in Net Income 2015 2014 2015 2014 Absolute Energy $ 498 $ 1,304 $ 1,936 $ 3,843 Guardian Energy 767 802 1,788 5,458 Homeland Energy Solutions 667 1,735 1,878 3,894 Other 90 83 432 429 Total $ 2,022 $ 3,924 $ 6,034 $ 13,624 The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income during certain periods presented: Guardian Energy Condensed Financial Information Balance Sheet 6/30/2015 9/30/2014 Current Assets $ 18,164 $ 68,726 Other Assets 49,212 56,576 Current Liabilities 14,822 22,193 Long-term Debt 29,200 16,788 Members’ Equity 23,354 86,321 Three Months Ended Nine Months Ended Income Statement 6/30/2015 6/30/2014 6/30/2015 6/30/2014 Revenue $ 62,256 $ 61,473 $ 177,373 $ 231,548 Gross Profit 10,896 11,059 28,543 61,872 Net Income 7,157 7,582 17,033 51,352 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies Production (Details) - Jul. 31, 2015 gal in Millions | gal |
Product Information [Line Items] | |
Equity Method Investments, Number of Entities | 4 |
Ethanol [Member] | |
Product Information [Line Items] | |
Annual Production Capacity | 110 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies Marketable Securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2015 | Jul. 31, 2014 | Oct. 31, 2014 | |
Schedule of Held-to-maturity Securities [Line Items] | ||||
Marketable Securities, Realized Gain (Loss) | $ 1,000 | $ 23,000 | $ 24,000 | |
Marketable Securities, Unrealized Gain (Loss) | 43,000 | |||
Mutual Fund [Member] | Original Cost [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Held-to-maturity Securities, Current | 6,136,000 | 6,136,000 | $ 5,211,000 | |
Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Held-to-maturity Securities, Current | 6,179,000 | 6,179,000 | $ 5,263,000 | |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Held-to-maturity Securities, Current | $ 3,000,000 | $ 3,000,000 |
Property and Equipment (Details
Property and Equipment (Details) - Property, Plant and Equipment [Member] | 9 Months Ended |
Jul. 31, 2015 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 |
Concentration Risk (Details)
Concentration Risk (Details) - Jul. 31, 2015 | Total | Total |
Sales Revenue, Product Line [Member] | Ethanol [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 77.00% | 80.00% |
Sales Revenue, Product Line [Member] | Distillers Grains [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 20.00% | 17.00% |
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 | 74.00% | 78.00% |
Inventory (Details)
Inventory (Details) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
Inventory [Abstract] | ||
Raw Materials | $ 3,863,173 | $ 3,150,725 |
Work in Process | 1,247,174 | 1,193,582 |
Finished Goods | 2,376,755 | 515,745 |
Inventory | $ 7,487,102 | $ 4,860,052 |
Bank Financing Long Term Debt (
Bank Financing Long Term Debt (Details) - Farm Credit Services of America [Member] - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
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 | 3.34% | |
Debt Instrument, Periodic Reduction | $ 2,500,000 | |
Long-term Debt | 0 | $ 0 |
Debt Instrument, Unused Borrowing Capacity, Amount | 20,000,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 5,000,000 |
Bank Financing Short Term Debt
Bank Financing Short Term Debt (Details) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
Notes Payable, Other Payables [Member] | ||
Short-term Debt [Line Items] | ||
Notes Payable, Current | $ 0 | $ 13,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Due from (to) Related Party | $ 5,000 | $ 5,000 | ||
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Purchases from Related Party | $ 14,443,000 | $ 16,056,000 | $ 53,816,000 | $ 51,832,000 |
Limited Liability Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 0 | $ 118,000 |
Commitments, Contingencies an28
Commitments, Contingencies and Agreements (Details) - Investee [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Oct. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Revenue from Related Parties | $ 52,137 | $ 71,437 | $ 166,309 | $ 227,800 | |
Related Party Transaction, Expenses from Transactions with Related Party | 113 | $ 105 | 320 | $ 310 | |
Related Party Transaction, Due from (to) Related Party | $ 1,932 | $ 1,932 | $ 7,587 |
Risk Management Derivative Inst
Risk Management Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - Commodity Contract [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | $ (332,000) | $ 1,893,000 | $ 51,000 | $ (3,062,000) |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | (216,000) | 3,446,000 | 448,000 | 3,203,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (548,000) | 5,339,000 | 499,000 | 141,000 |
Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | 91,000 | (474,000) | 43,000 | (2,774,000) |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | (32,000) | (70,000) | (48,000) | (1,386,000) |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 59,000 | (544,000) | (5,000) | (4,160,000) |
Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | (423,000) | 2,367,000 | 8,000 | (288,000) |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | (184,000) | 3,516,000 | 496,000 | 4,589,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (607,000) | $ 5,883,000 | $ 504,000 | $ 4,301,000 |
Risk Management Derivative In30
Risk Management Derivative Instruments - Balance Sheet Location (Details) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | $ 686,093 | $ 385,815 |
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Liability [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Current | (12,000) | (726,000) |
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 381,000 | 648,000 |
Good Faith and Margin Deposits with Broker-Dealers | 317,000 | 464,000 |
Derivative Instruments and Hedges, Assets | $ 686,000 | $ 386,000 |
Risk Management Long Term Purch
Risk Management Long Term Purchase Commitments (Details) - Jul. 31, 2015 - USD ($) $ in Thousands | Total |
Fixed Price [Member] | Corn Oil [Member] | |
Long-term Purchase Commitment [Line Items] | |
Supply Commitment, Remaining Minimum Amount Committed | $ 1,172 |
Fixed Price [Member] | Distillers Grains [Member] | |
Long-term Purchase Commitment [Line Items] | |
Supply Commitment, Remaining Minimum Amount Committed | 5,015 |
Fixed Price [Member] | Corn [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | 7,711 |
Basis Contract [Member] | Corn [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | 12,448 |
Forward Contracts [Member] | Natural Gas [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | 1,003 |
Affiliated Entity [Member] | |
Related Party Transaction [Line Items] | |
Purchase Obligation | $ 8,769 |
Forward Contracts [Member] | Ethanol [Member] | |
Long-term Purchase Commitment [Line Items] | |
Product usage, percentage | 2.00% |
Forward Contracts [Member] | Natural Gas [Member] | |
Long-term Purchase Commitment [Line Items] | |
Product usage, percentage | 10.00% |
Forward Contracts [Member] | Corn [Member] | |
Long-term Purchase Commitment [Line Items] | |
Product usage, percentage | 11.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Commodity Contract [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 |
Other Current Assets [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable Securities | $ 6,179,000 | $ 5,264,000 |
Derivative Asset, Current | 381,000 | 648,000 |
Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable Securities | 6,179,000 | 5,264,000 |
Derivative Asset, Current | 333,000 | 447,000 |
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable Securities | 0 | 0 |
Derivative Asset, Current | 48,000 | 201,000 |
Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Marketable Securities | 0 | 0 |
Derivative Asset, Current | 0 | 0 |
Liability [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative Liability, Current | (12,000) | (726,000) |
Liability [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative Liability, Current | 0 | (610,000) |
Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative Liability, Current | (12,000) | (116,000) |
Liability [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative Liability, Current | $ 0 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Mar. 31, 2015 | Oct. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Net Income | $ 2,022 | $ 3,924 | $ 6,034 | $ 13,624 | ||
Equity Method Investee [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Current Assets | $ 266,452 | $ 320,903 | ||||
Equity Method Investment, Other Assets | 254,236 | 267,563 | ||||
Equity Method Investment, Current Liabilities | 150,895 | 140,262 | ||||
Equity Method Investment, Long-term Debt | 29,441 | 17,007 | ||||
Equity Method Investment, Members' Equity | 340,352 | 431,197 | ||||
Equity Method Investment, Revenue | 198,940 | 236,440 | 594,186 | 746,589 | ||
Equity Method Investment, Gross Profit | 27,932 | 53,352 | 84,973 | 170,079 | ||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 23,251 | 48,753 | 70,581 | 155,714 | ||
Absolute Energy [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Net Income | 498 | 1,304 | 1,936 | 3,843 | ||
Guardian Energy [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Current Assets | 18,164 | 68,726 | ||||
Equity Method Investment, Other Assets | 49,212 | 56,576 | ||||
Equity Method Investment, Current Liabilities | 14,822 | 22,193 | ||||
Equity Method Investment, Long-term Debt | 29,200 | 16,788 | ||||
Equity Method Investment, Members' Equity | $ 23,354 | $ 86,321 | ||||
Equity Method Investment, Revenue | 62,256 | 61,473 | 177,373 | 231,548 | ||
Equity Method Investment, Gross Profit | 10,896 | 11,059 | 28,543 | 61,872 | ||
Equity Method Investment, Net Income | 767 | 802 | 1,788 | 5,458 | ||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 7,157 | 7,582 | 17,033 | 51,352 | ||
Homeland Energy Solutions [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Net Income | 667 | 1,735 | 1,878 | 3,894 | ||
Other Investee [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Net Income | $ 90 | $ 83 | $ 432 | $ 429 |