Property and Equipment

Property and equipment is recorded at cost.cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 155 to 40 years for buildings and improvements, and 2 to 20 years for fixtures and equipment.

In accordance with ASC 360-10 “Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is assessed for recoverability by management when changes in circumstances indicate that the carrying amount may not be recoverable, based on an analysis of undiscounted future expected cash flows from the use and ultimate disposition of the asset. There were no impairment charges in the first six months of fiscal years 20172018 or 2016.2017. Impairment charges have historically resulted from the

Company’s management performing cash flow analysis and have represented management’s estimate of the excess of net book value over fair value.

The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any. The Company generally determines the fair value of the asset group using a discounted cash flow model based on market participant assumptions (for income producing asset groups) or by obtaining appraisals based on the market approach and comparable market transactions (for non-income producing asset groups).

Investments

The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company consolidates the results of two majority owned subsidiaries, One Earth and NuGen Energy, LLC (“NuGen”). The results of One Earth are included on a delayed basis of one month lag as One Earth has a fiscal year end of December 31. NuGen has the same fiscal year as the parent, and therefore, there is no lag in reporting the results of NuGen. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying equity in the net assets of equity method investees is allocated to specific assets and liabilities. Any unallocated excess is treated as goodwill and is recorded as a component of the carrying value of the equity method investee. Investments in businesses that the Company does not control but for which it has the ability to exercise significant influence over operating and financial matters are accounted for using the equity method. The Company accounts for its investment in Big River Resources, LLC (“Big River”) using the equity method of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31.

The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in the Consolidated Condensed Statements of Operations and a new cost basis in the investment is established.

Short-term investments are considered held to maturity, and, therefore are carried at amortized historical cost.

Comprehensive Income

The Company has no components of other comprehensive income, and therefore, comprehensive income equals net income.

Accounting Changes and Recently Issued Accounting Standards

In March 2016,Effective February 1, 2018, the Financial Accounting Standards Board (“FASB”) issuedCompany adopted the amended guidance in ASC Topic 606 “Revenue from Contracts with Customers”, which requires revenue recognition to reflect the transfer of promised goods or services to customers and replaces existing revenue recognition guidance. See Note 3 for a further discussion of adopting this amended guidance.

Effective February 1, 2018, the Company prospectively adopted Accounting Standards Update (“ASU”) 2016-09,“ASU” 2016-15 “Improvements to Employee Share-Based Payment AccountingStatement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-09”). This standard simplifiesprovides guidance on eight specific cash flow issues. The cash flow issues covered by this ASU are: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the accounting treatmenteffective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle for excess tax benefitsdistributions received from equity method investees in the Statement of Cash Flows. The adoption of this standard did not affect the consolidated condensed financial statements and deficiencies, forfeitures,related disclosures.

Effective February 1, 2018, the Company adopted ASU 2016-18 “Statement of Cash Flows (Topic 230), Restricted Cash”. This standard requires that the statements of cash flows explain the changes in the combined total of restricted and unrestricted cash balances. Amounts generally described as restricted cash will be combined with unrestricted cash and cash flow considerations related to share-based compensation.equivalents when reconciling the beginning and end of period balances on the statements of cash flows. The Company adopted this standard February 1, 2017. The adoptionretrospectively. Therefore, the beginning period balance of ASU 2016-09 did not impactcash and cash equivalents as of January 31, 2017 was increased by $130,000, the Company’s consolidated financial statementsend of period balance of cash and related disclosures.cash equivalents as of July 31, 2017 was increased by $379,000 and the beginning period balance of cash and cash equivalents as of January 31, 2018 was increased by $354,000 to reflect the respective restricted cash amounts.

In February 2016, the FASB issued ASU 2016-02 “Leases”“Leases”. This standard requires that virtually all leases will be recognized by lessees on their balance sheet as a right-of-use asset and a corresponding lease liability, including leases currently accounted for as operating leases. The Company will be required to adopt this standard effective February 1, 2019. The related leases are currently accounted for as operating leases (see Note 5). This standard requires a modified retrospective transition approach and allows for early adoption. In July 2018, FASB issued Accounting Standards Update,Leases (Topic 842): Targeted Improvements, which provides an option to apply the transition provisions of the new standard at the adoption date instead of the earliest comparative period presented in the financial statements.

The Company has not completed its analysis of the effect of adopting this guidance but it does expect the adoption of this guidance to have a material impact on its Consolidated Balance Sheet related to the right to useright-of-use asset and lease obligation liability to be recognized upon adoption of this guidance.guidance in addition to requiring expanded disclosures in the Company’s consolidated financial statements. The related leases are currently accounted for as operating leases (see Note 3).Company expects to complete its analysis of the impact of adopting this guidance during the second half of fiscal year 2018. 

TheNote 3.Net Sales and Revenue

On February 1, 2018, the Company will be required to adoptadopted the amended guidance in ASC Topic 606, “Revenue from Contracts with Customers”, which requires revenue recognitionand all related amendments and applied it to reflectall contracts utilizing the transfermodified retrospective method. There were no adjustments to the Consolidated Condensed Balance Sheet as of promised goods or services to customers and replaces existing revenue recognition guidance. The updated standard permits the use of either the retrospective or cumulative effect transition method. The FASB had deferred the required adoption of the amended guidance by one year, from February 1, 2017 to February 1, 2018. The Company is progressing in its evaluation2018 as a result of adopting this guidance but it does not expect the adoption of this accounting guidance. Therefore, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Furthermore, there was no impact related to the adoption of this accounting guidance to have a material impact on its consolidated financial statements with respect to measurementthe Consolidated Condensed Statements of Operations or Balance Sheets for the three and recognition of revenue.six months ended July 31, 2018. The Company expects to adopt this guidance using the modified prospective method. The Company is still evaluating the impact of adopting this accounting guidance to be immaterial on disclosures in the consolidated financial statements.an ongoing basis.

In November 2015,The Company recognizes sales of products when obligations under the FASB issued ASU 2015-17 “Balance Sheet Classificationterms of Deferred Taxes”, (“ASU 2015-17”)the respective contracts with customers are satisfied. This occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods. Sales, value add and other taxes the Company collects concurrent with revenue producing activities are excluded from net sales and revenue.

The majority of the Company’s sales have payment terms ranging from 5 to 10 days after transfer of control. The Company has determined that sales contracts do not generally include a significant financing component. The Company has not historically, and does not intend to, enter into sales contracts in which requirespayment is due from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue.

The Company elected, pursuant to the new accounting guidance, to recognize the cost for shipping and handling activities that occur after the customer obtains control of the promised goods as fulfillment activities and not when performance obligations are met.

See Note 17 for disaggregation of net sales and revenue by operating segment and by product.

Note 4.Business Combinations

On August 10, 2017, the Company, through a particular tax-paying component95.35% owned subsidiary, purchased the entire ownership interest of an entity and withinthat owns a particular tax jurisdiction, all deferred tax liabilities and assets shall be offset and presented as a single noncurrent amount.refined coal facility. The Company prospectively adoptedbegan operating its refined coal facility immediately after the amended guidance effective February 1,acquisition. The Company expects that the revenues from the sale of refined coal produced in the facility will be subsidized by federal production tax credits through November 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the Internal Revenue Code.

The impact on the combined results of operations of the Company and the refined coal entity, on a pro forma basis, as though the companies had been combined as of the beginning of fiscal year 2017, is as follows:

Cost of sales would have increased by approximately $692,000 and approximately $1,385,000 for the quarter and six months ended July 31, 2017, respectively. This pro forma increase is a result of increased depreciation expense as if the refined coal entity was consolidated during the six months ended July 31, 2017. Prior periods were not retrospectively adjusted.Selling, general and administrative expenses would have increased by approximately $2,510,000 for the six months ended July 31, 2017. These pro forma adjustments are a result of transaction costs occurring (on a pro forma basis) during the first quarter of fiscal year 2017. The adoptionprovision for income taxes would have decreased by approximately $263,000 for the quarter ended July 31, 2017 and approximately $1,480,000 for the six months ended July 31, 2017. Net income attributable to REX common shareholders would have decreased by approximately $409,000 and approximately $2,303,000 for the quarter and six months ended July 31, 2017, respectively. Basic and diluted net income per share attributable to REX common shareholders would have decreased by approximately $0.06 per share and approximately $0.35 for the quarter and six months ended July 31, 2017, respectively.

The results of ASU 2015-17 did not affectthe Company’s refined coal operations (approximately $0.8 million of net sales and revenue and approximately $9.9 million of net income attributable to REX common shareholders, or retained earningsincluding the income tax benefit of estimated Section 45 credits to be earned) have been included in the presented periods.consolidated financial statements subsequent to the acquisition date and are included in the Company’s refined coal segment.

The purchase price was $12,049,000, which was paid in cash. The acquisition was recorded by allocating the total purchase price to the assets acquired, based on their estimated fair values at the acquisition date. The purchase price allocation is based on the final fair value assessment results of a valuation analysis. The income approach was used to determine the fair values of assets acquired. The following table summarizes the estimated fair values of the assets acquired at the acquisition date (amounts in thousands):

Transaction costs totaled approximately $2.5 million during fiscal year 2017. The Company does not expect to incur additional transaction costs from this acquisition.

Note 3.5.Leases

At July 31, 2017,2018, the Company has lease agreements, as lessee, for rail cars and a natural gas pipeline. All of the leases are accounted for as operating leases. The following table is a summary of future minimum rentals on such leases (amounts in thousands):

Note 4.6.Fair Value

The Company applies ASC 820, “Fair Value Measurements and Disclosures”Disclosures,” (“ASC 820”), which provides a framework for measuring fair value underaccounting principles generally accepted in the United States of America.America. This accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company determines the fair market values of its financial instruments based on the fair value hierarchy established by ASC 820 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries certain cash equivalents, investments and derivative instruments at fair value.

The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company’s own credit standing and other specific factors, where appropriate. The fair values of property and equipment are determined by using various models that discount future expected cash flows.

To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities, investments and property and equipment, various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and loss reporting for all derivative instruments. Financial assets and liabilities measured at fair value on a recurring basis at July 31, 20172018 are summarized below (amounts in thousands):

Financial assets and liabilities measured at fair value on a recurring basis at January 31, 20172018 are summarized below (amounts in thousands):

(1) Commodity futures areThe forward purchase contract asset is included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets.

(2) The investment in cooperative is included in “Other assets” on the accompanying Consolidated Condensed Balance Sheets.

(3) The forward purchase contract liability isCommodity futures are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets.

(4) The forward purchase contract assetliability is included in “Prepaid“Accrued expenses and other current assets”liabilities” on the accompanying Consolidated Condensed Balance Sheets.

The Company determined the fair value of the investment in cooperative by using a discounted cash flow analysis on the expected cash flows. Inputs used in the analysis include the face value of the allocated equity amount, the projected term for repayment based upon a historical trend and a risk adjusted discount rate based on the expected compensation participants would demand because of the uncertainty of the future cash flows. The inherent risk and uncertainty associated with unobservable inputs could have a significant effect on the actual fair value of the investment.

There were no assets measured at fair value on a non-recurring basis at July 31, 20172018 or January 31, 2017.2018. As discussed in Note 4, the Company estimated the fair values of refined coal assets acquired using the income approach. This estimated fair value is a level 3 measurement.

Note 5.7.Property and Equipment

The components of property and equipment are as follows for the periods presented (amounts in thousands):

Note 6.8.Other Assets

The components of other assets are as follows for the periods presented (amounts in thousands):

Real estate taxes refundable represent amounts due One Earth associated with refunds of previously paid taxes in connection with a tax increment financing arrangement with local taxing authorities. Deposits are with utility and other vendors.

Note 7.9.Accrued Expenses and Other Current Liabilities

The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):

Note 8.10.Revolving Lines of Credit

Effective April 1, 2016, One Earth and NuGen Energy, LLC (“NuGen”) each entered into $10.0 million revolving loan facilities that matured April 1, 2017. During the second quarter of fiscal year 2017, One Earth and NuGen renewed the revolving loan facilities, which now mature June 1, 2018.2019 as extended. Neither One Earth nor NuGen had outstanding borrowings on the revolving loans during the six months ended July 31, 20172018 and 2016.2017.

Note 9.11.Derivative Financial Instruments

The Company is exposed to various market risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility of these natural business exposures, the Company enters into commodity agreements and forward purchase (corn) and sale (ethanol, distillers grains and non-food grade corn oil) contracts. The Company does not purchase or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell

derivative financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques.

The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Condensed Balance Sheets in which the fair values are reflected (in thousands):

(1) Commodity futures are included in prepaidaccrued expenses and other current assets.liabilities. These contracts are short/sell positions for approximately 1.94.9 million and 0.72.5 million bushels of corn at July 31, 20172018 and January 31, 2017,2018, respectively.

(2) Forward purchase contracts assets are included in prepaid expenses and other current assets while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 10.311.5 million and 5.311.7 million bushels of corn at July 31, 20172018 and January 31, 2017,2018, respectively.

As of July 31, 2017,2018, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements. The Company’s accounting policy is to offset positions and amounts owed or owing with the same counterparty. As of July 31, 2017,2018, the gross positions of the enforceable master netting agreements are not significantly different from the net positions presented in the table above. Depending on the amount of an unrealized loss on a derivative contract held by the Company, the counterparty may require collateral to secure the Company’s derivative contract position. As of July 31, 2017,2018, the Company was required to maintain collateral with the counterparty in the amount of approximately $379,000$778,000 to secure the Company’s derivative liability position.

See Note 46 which contains fair value information related to derivative financial instruments.

Gains(Losses) or gains on the Company’s derivative financial instruments of approximately $853,000$(405,000) and $1,136,000approximately $853,000 for the second quarters of fiscal years 20172018 and 2016,2017, respectively, were included in cost of sales on the Consolidated Condensed Statements of Operations. Gains on the Company’s derivative financial instruments of approximately $977,000$160,000 and $1,625,000approximately $977,000 for the first six months of fiscal years 20172018 and 2016,2017, respectively, were included in cost of sales on the Consolidated Condensed Statements of Operations.

Note 10.12.Investments

The following table summarizes the Company’s equity method investment at July 31, 20172018 and January 31, 20172018 (dollars in thousands):

Undistributed earnings of the Company’s equity method investee totaled approximately $16.6$15.1 million and $17.8$14.5 million at July 31, 20172018 and January 31, 2017,2018, respectively. The Company received dividends from its equity method investee of approximately $2.0$1.0 million and $1.5approximately $2.0 million during the first six months of fiscal years 20172018 and 2016,2017, respectively.

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

Big River has debt agreements that limit amounts Big River can pay inThe following table summarizes the form of dividends or advances to owners. The restricted net assets of Big RiverCompany’s held-to-maturity securities at July 31, 20172018 (dollars in thousands):

As of July 31, 2018, the contractual maturities of these investments were less than one year. Yield to maturity rates vary between 1.6% and 1.8%.

The Company had no held-to-maturity investments as of January 31, 2017 are approximately $279.5 million and $278.7 million, respectively.

On June 1, 2015, Patriot Holdings, LLC (“Patriot”) and a subsidiary of CHS Inc. (“CHS”) completed a merger that resulted in CHS acquiring 100% of the ownership interest in Patriot. During the first quarter of fiscal year 2016, the Company received proceeds of approximately $2.3 million as partial payment for certain escrow holdbacks and adjustments to the purchase price. As a result, the Company recognized approximately $0.2 million as gain on sale of investment during the first quarter of fiscal year 2016. The Company does not expect any further proceeds or gain/loss on sale of investment to be significant.2018.

Note 11.13.Employee Benefits

The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, which reserves a total of 550,000 shares of common stock for issuance pursuant to its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock

appreciation rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees, non-employee directors and consultants. Since plan inception, the Company has only granted restricted stock awards. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records noncash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At July 31, 2017, 511,1742018, 489,430 shares remain available for issuance under the Plan. As a component of their compensation, restricted stock has been granted to directors at the closing market price of REX common stock on the date of the grant.predetermined grant date. In addition one third of executives’ incentive compensation is payable by an award of restricted stock based on the then closing market price of REX common stock.stock on the predetermined grant date.

At July 31, 2018 and January 31, 2017,2018, unrecognized compensation cost related to nonvested restricted stock was approximately $321,000$275,000 and $214,000,$233,000, respectively. The following table summarizestables summarize non-vested restricted stock award activity for the six months ended July 31, 20172018 and 2016:2017:

The above tables include 34,148 and 24,711 non-vested shares at July 31, 2018 and 2017, respectively, which are included in the number of weighted average shares outstanding used to determine basic and diluted earnings per share attributable to REX common shareholders. Such shares are treated, for accounting purposes, as being fully vested at the grant date as they were granted to recipients who were retirement eligible at the time of grant.

Note 1214. Income Taxes

The effective tax rate on consolidated pre-tax income was 35.6%(115.9)% and 33.3%35.6% for the three months ended July 31, 20172018 and 2016,2017, respectively. The effective tax rate on consolidated pre-tax income was (66.6) % and 32.4% for the six months ended July 31, 2018 and 2017, respectively The fluctuation in the rate results primarily from the production tax credits the Company expects to receive associated with its refined coal segment, lower tax rates as a result of the Tax Cuts and Jobs Act of 2017 (“the Tax Act”) and expected research and experimentation federal tax credits to be claimed and earned in fiscal year 2018.

32.4% and 32.6%The Company records its tax provision/benefit based on an estimated annual effective rate adjusted for the six months ended July 31, 2017 and 2016, respectively.items recorded discretely. The fluctuation in theestimated annual effective tax rate primarily relates toincludes the impact of noncontrolling interests. The Company expects the effective tax rate, forrefined coal operation and the remainder of fiscal year 2017, to be significantly lower than the current year to date levels as the Company expects to earnexpected federal income tax credits to be earned in fiscal year 2018.

The Tax Act signed into law on December 22, 2017, reduced the federal corporate income tax rate to 21% effective January 1, 2018. The Tax Act also made numerous other changes to the U.S. tax code, including, but not limited to, permitting full expensing of qualified property acquired after September 27, 2017, expanding prior limitations of the deductibility of certain executive compensation and eliminating the corporate alternative minimum tax.

The SEC issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. In recognition of the inherent complexities associated with accounting for the effects of the Tax Act, SAB 118 provides a measurement period of up to one year from enactment of the Tax Act for companies to complete the accounting for the tax effects of the Tax Act. Although the Company’s accounting for the tax effects of the Tax Act are not yet complete, at January 31, 2018, the Company made a preliminary estimate of the effect of the tax rate reduction on the existing deferred tax balances and recorded a tax benefit of approximately $14,362,000 to remeasure the deferred tax liability at the new 21% rate. The Company will continue to refine the calculation as additional analysis is completed, which will include a final determination of the deferred tax balances at January 31, 2018 after the Company’s federal income tax return is filed, and as further guidance is provided by the Internal Revenue Service.

Through its refined coal operation, (see Note 16).the Company earns production tax credits pursuant to IRC Section 45. The credits can be used to reduce future income tax liabilities for up to 20 years.

The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 20102013 and prior. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):

The Company expects to claim research and experimentation credits in the current year and certain prior years. In connection with this, the Company has increased the amount of unrecognized tax benefits.

Note 13.15.Commitments and Contingencies

The Company is involved in various legal actions arising in the normal course of business. After taking into consideration legal counsels’ evaluations of such actions, management is of the opinion that their outcome will not have a material adverse effect on the Company’s Consolidated Condensed Financial Statements.

One Earth and NuGen have combined forward purchase contracts for approximately 11.411.5 million bushels of corn, the principal raw material for their ethanol plants. They expect to take delivery of the grain through October 2017.December 2018.

One Earth and NuGen have combined forward purchase contracts for approximately 1,936,000 Mmbtu (million british thermal units) of natural gas. They expect to take delivery of the natural gas through March 2019.

One Earth and NuGen have combined sales commitments for approximately 67.817.9 million gallons of ethanol, approximately 79,00062,000 tons of distillers grains and approximately 11.710.2 million pounds of non-food grade corn oil. They expect to deliver a majority of the ethanol, distillers grains and non-food grade corn oil through December 2017.

Note 14.Net Sales and RevenueSeptember 2018.

The following table summarizes sales for each product and service group forrefined coal entity has various agreements (site license, operating agreements, etc.) containing payment terms based upon production of refined coal under which the periods presented (amountsCompany is required to pay various fees. These fees totaled approximately $5.1 million in thousands):the first six months of fiscal year 2018.

Note 15.16.Related-Party Transactions

During the second quarters of fiscal yearyears 2018 and 2017, and 2016, One Earth and NuGen purchased approximately $36.5$45.2 million and approximately $36.0$36.5 million, respectively, of corn from minority equity investors and board members of those subsidiaries. Such purchases totaled approximately $78.7$91.4 million and approximately $80.4$78.7 million for the six months ended July 31, 2018 and 2017, and 2016, respectively. One Earth purchases all of its corn from an equity investor which acts as a grain origination agent for One Earth. The Company had amounts payable to related parties for corn purchases of approximately $1.6$1.4 million and $1.7$0.9 million at July 31, 20172018 and January 31, 2017,2018, respectively.