Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 61

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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Note 8. 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):

    April
    30, 2025  
    January 31, 2025 

    Accrued payroll and related items 
    $4,089  
    $8,961 

    Accrued utility charges 
     2,772  
     3,085 

    Accrued transportation related items 
     707  
     555 

    Accrued real estate taxes 
     1,918  
     1,746 

    Forward purchase contracts 
     1,105  
     378 

    Other 
     3,801  
     1,635 

    Total 
    $14,392  
    $16,360 

16

Note 9. 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 (exchange-traded futures contracts and swaps)
and forward purchase (corn) and sale (ethanol, distillers grains and distillers 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
changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not
use hedge accounting.

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 Balance Sheets in which the
fair values are reflected (in thousands):

    Asset Derivatives Fair Value  
    Liability Derivatives Fair Value 

    April
    30,  2025  
    January 31,  2025  
    April
    30,  2025  
    January 31,  2025 

    Forward purchase contracts (1) 
    $840  
    $1,253  
    $1,105