Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RENEWABLE ENERGY GROUP, INC. | |
Entity Central Index Key | 0001463258 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 37,618,998 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 123,062 | $ 123,575 |
Marketable securities | 17,482 | 50,932 |
Accounts receivable (net of allowance for doubtful accounts of $460 and $673, respectively) | 104,989 | 74,551 |
Inventories | 220,566 | 168,900 |
Prepaid expenses and other assets | 33,401 | 41,169 |
Restricted cash | 3,000 | 3,000 |
Current assets held for sale | 3,250 | 3,250 |
Total current assets | 505,750 | 465,377 |
Property, plant and equipment, net | 588,471 | 590,723 |
Right of use assets | 42,109 | |
Goodwill | 16,080 | 16,080 |
Intangible assets, net | 13,312 | 13,646 |
Other assets | 20,677 | 21,270 |
TOTAL ASSETS | 1,186,399 | 1,107,096 |
CURRENT LIABILITIES: | ||
Lines of credit | 102,612 | 14,250 |
Current maturities of long-term debt | 150,339 | 149,006 |
Current maturities of operating lease obligations | 17,606 | |
Accounts payable | 86,893 | 95,866 |
Accrued expenses and other liabilities | 26,440 | 35,256 |
Deferred revenue | 13,315 | 300 |
Total current liabilities | 397,205 | 294,678 |
Unfavorable lease obligation | 0 | 2,259 |
Deferred income taxes | 7,973 | 8,410 |
Long-term debt (net of debt issuance costs of $3,217 and $3,390, respectively) | 31,505 | 33,421 |
Long-term operating lease obligations | 34,883 | 0 |
Other liabilities | 1,592 | 3,075 |
Total liabilities | 473,158 | 341,843 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Common stock ($.0001 par value; 300,000,000 shares authorized; 37,618,131 and 37,318,942 shares outstanding, respectively) | 5 | 5 |
Common stock—additional paid-in-capital | 452,646 | 451,427 |
Retained earnings | 377,324 | 427,244 |
Accumulated other comprehensive income | (2,018) | (1,656) |
Treasury stock (11,673,962 and 11,524,975 shares outstanding, respectively) | (114,716) | (111,767) |
Total equity | 713,241 | 765,253 |
TOTAL LIABILITIES AND EQUITY | $ 1,186,399 | $ 1,107,096 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 460 | $ 673 |
Debt issuance costs | $ 3,217 | $ 3,390 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares, outstanding (in shares) | 37,618,131 | 37,318,942 |
Treasury stock, shares outstanding (in shares) | 11,673,962 | 11,524,975 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES: | ||
Revenues | $ 478,137 | $ 687,225 |
Total revenues | 478,209 | 688,002 |
Costs of goods sold | 491,001 | 438,547 |
GROSS PROFIT (LOSS) | (12,792) | 249,455 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 25,145 | 31,654 |
RESEARCH AND DEVELOPMENT EXPENSE | 209 | 1,034 |
INCOME (LOSS) FROM OPERATIONS | (38,146) | 216,767 |
OTHER INCOME (EXPENSE), NET: | ||
Change in fair value of contingent consideration | (304) | (458) |
Loss on debt extinguishment | (2) | (232) |
Gain on involuntary conversion | 0 | 4,000 |
Other income, net | 854 | 1,215 |
Interest expense | (4,219) | (4,651) |
Total other income (expense), net | (3,671) | (126) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (41,817) | 216,641 |
INCOME TAX BENEFIT | 430 | 1,203 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (41,387) | 217,844 |
DISCONTINUED OPERATIONS: | ||
Loss on operations of discontinued operations | (2,017) | (3,455) |
NET LOSS ON DISCONTINUED OPERATIONS | (2,017) | (3,455) |
NET INCOME (LOSS) TO THE COMPANY | (43,404) | 214,389 |
LESS—EFFECT OF PARTICIPATING SHARE-BASED AWARDS ON CONTINUING OPERATIONS | 0 | 5,236 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO THE COMPANY’S COMMON STOCKHOLDERS | (41,387) | 212,608 |
NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO THE COMPANY’S COMMON STOCKHOLDERS | $ (2,017) | $ (3,455) |
Basic net income (loss) per share attributable to common stockholders: | ||
Continuing operations (in dollars per share) | $ (1.11) | $ 5.48 |
Discontinued operations (in dollars per share) | (0.05) | (0.09) |
Net income (loss) per share (in dollars per share) | (1.16) | 5.39 |
Diluted net income (loss) per share attributable to common stockholders: | ||
Continuing operations (in dollars per share) | (1.11) | 5.38 |
Discontinued operations (in dollars per share) | (0.05) | (0.09) |
Net income (loss) per share (in dollars per share) | $ (1.16) | $ 5.30 |
Weighted-average shares used to compute basic net loss per share attributable to common stockholders: | ||
Basic (in shares) | 37,353,352 | 38,819,443 |
Weighted-average shares used to compute diluted net loss per share attributable to common stockholders: | ||
Continuing operations (in shares) | 37,353,352 | 39,484,087 |
Discontinued operations (in shares) | 37,353,352 | 38,819,443 |
Net income (loss) (in shares) | 37,353,352 | 39,484,087 |
Biomass-based diesel | ||
REVENUES: | ||
Revenues | $ 455,206 | $ 274,761 |
Costs of goods sold | 484,413 | 405,810 |
Separated RINs | ||
REVENUES: | ||
Revenues | 22,463 | 47,179 |
Costs of goods sold | 6,585 | 32,737 |
Biomass-based diesel government incentives | ||
REVENUES: | ||
Revenues | 468 | 365,285 |
Other | ||
REVENUES: | ||
Total revenues | 72 | 777 |
Costs of goods sold | $ 3 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (43,404) | $ 214,389 |
Unrealized gains (losses) on marketable securities, net of taxes of $0 and $0, respectively | (1) | 0 |
Foreign currency translation adjustments | (361) | 719 |
Other comprehensive income (loss) | (362) | 719 |
Comprehensive income (loss) attributable to the Company | $ (43,766) | $ 215,108 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Taxes on unrealized gains (losses) on marketable securities | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Common Stock - Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance (in shares) at Dec. 31, 2017 | 38,837,749 | |||||
Beginning Balance at Dec. 31, 2017 | $ 567,582 | $ 5 | $ 515,452 | $ 134,928 | $ 278 | $ (83,081) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Conversion of restricted stock units to common stock (net of shares of treasury stock purchased) (in shares) | 127,470 | |||||
Conversion of restricted stock units to common stock (net of shares of treasury stock purchased) | (621) | (621) | ||||
Settlement of stock appreciation rights in common stock (net of shares of treasury stock purchased) (in shares) | 33,463 | |||||
Settlement of stock appreciation rights in common stock (net of shares of treasury stock purchased) | (172) | (172) | ||||
Partial termination of capped call options (in shares) | (15,012) | |||||
Partial termination of capped call options | 85 | 252 | (167) | |||
Convertible debt extinguishment impact (net of tax impact) | (440) | (440) | ||||
Treasury stock purchases (in shares) | (641,601) | |||||
Treasury stock purchases | (7,828) | (7,828) | ||||
Stock compensation expense | 1,794 | 1,794 | ||||
Other comprehensive loss | 719 | 719 | ||||
Net income (loss) | 214,389 | 214,389 | ||||
Ending Balance (in shares) at Mar. 31, 2018 | 38,342,069 | |||||
Ending Balance at Mar. 31, 2018 | 775,508 | $ 5 | 517,058 | 349,317 | 997 | (91,869) |
Beginning Balance (in shares) at Dec. 31, 2018 | 37,318,942 | |||||
Beginning Balance at Dec. 31, 2018 | 765,253 | $ 5 | 451,427 | 427,244 | (1,656) | (111,767) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Conversion of restricted stock units to common stock (net of shares of treasury stock purchased) (in shares) | 283,339 | |||||
Conversion of restricted stock units to common stock (net of shares of treasury stock purchased) | (2,760) | (2,760) | ||||
Settlement of stock appreciation rights in common stock (net of shares of treasury stock purchased) (in shares) | 16,937 | |||||
Settlement of stock appreciation rights in common stock (net of shares of treasury stock purchased) | (171) | (12) | (159) | |||
Partial termination of capped call options (in shares) | (1,087) | |||||
Partial termination of capped call options | 0 | 30 | (30) | |||
Convertible debt extinguishment impact (net of tax impact) | (152) | (152) | ||||
Stock compensation expense | 1,353 | 1,353 | ||||
Other comprehensive loss | (362) | (362) | ||||
Net income (loss) | (43,404) | (43,404) | ||||
Ending Balance (in shares) at Mar. 31, 2019 | 37,618,131 | |||||
Ending Balance at Mar. 31, 2019 | $ 713,241 | $ 5 | $ 452,646 | $ 377,324 | $ (2,018) | $ (114,716) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Convertible debt extinguishment impact, tax impact | $ 68 | |
Treasury Stock | Restricted stock units | ||
Conversion or settlement to common stock, net of treasury shares purchased (in shares) | 138,012 | 51,995 |
Treasury Stock | Stock appreciation rights | ||
Conversion or settlement to common stock, net of treasury shares purchased (in shares) | 9,888 | 14,558 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (43,404) | $ 214,389 |
Net loss from discontinuing operations | (2,017) | (3,455) |
Net income (loss) from continuing operations | (41,387) | 217,844 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation expense | 9,099 | 8,739 |
Amortization expense of assets and liabilities, net | 4,441 | 368 |
Gain on involuntary conversion | 0 | (4,000) |
Accretion of convertible note discount | 1,095 | 1,357 |
Amortization of marketable securities | (129) | 0 |
Change in fair value of contingent consideration | 304 | 458 |
Gain on sale of assets | 0 | (990) |
Loss on debt extinguishment | 2 | 232 |
Provision (benefit) for doubtful accounts | (300) | 314 |
Stock compensation expense | 1,353 | 1,794 |
Deferred tax expense | (432) | (1,487) |
Other operating activities | 77 | 10 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (30,516) | (375,715) |
Inventories | (52,009) | (35,891) |
Prepaid expenses and other assets | 9,342 | 26,582 |
Accounts payable | (8,618) | 152,833 |
Accrued expenses and other liabilities | (5,352) | (16,046) |
Operating lease obligations | (3,141) | |
Deferred revenue | 13,016 | (479) |
Net cash flows used in operating activities - continuing operations | (103,155) | (24,077) |
Net cash flows used in operating activities - discontinuing operations | (2,770) | (4,571) |
Cash used in operating activities | (105,925) | (28,648) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash paid for marketable securities | (3,478) | 0 |
Cash received from maturities of marketable securities | 37,084 | 0 |
Cash receipts for involuntary conversion | 0 | 4,000 |
Cash paid for purchase of property, plant and equipment | (8,235) | (16,487) |
Cash receipts for sale of assets | 0 | 1,630 |
Cash paid for investments | (57) | 0 |
Net cash flows provided by (used in) investing activities - continuing operations | 25,314 | (10,857) |
Net cash flows used in investing activities - discontinuing operations | 0 | (336) |
Cash provided by (used in) investing activities | 25,314 | (11,193) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net borrowings on revolving line of credit | 84,754 | 40,514 |
Borrowings on other lines of credit | 15,649 | 12,358 |
Repayments on other lines of credit | (11,908) | (12,992) |
Cash received from notes payable | 0 | 10,890 |
Cash paid on notes payable | (2,004) | (8,018) |
Cash paid for debt issuance costs | (45) | (78) |
Cash paid for treasury stock | 0 | (7,828) |
Cash paid for contingent consideration settlement | (3,316) | (2,813) |
Cash received on partial termination of capped call options | 0 | 85 |
Cash paid for conversion of restricted stock units and stock appreciation rights | (2,931) | (793) |
Net cash flows provided by financing activities - continuing operations | 80,199 | 31,325 |
Net cash flows used in financing activities - discontinuing operations | 0 | 0 |
Cash provided by financing activities | 80,199 | 31,325 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (412) | (8,516) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, Beginning of period | 126,575 | 77,627 |
Effect of exchange rate changes on cash | (101) | 179 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, End of period | 126,062 | 69,290 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | 204 | 0 |
Cash paid for interest | 849 | 1,154 |
Leased assets obtained in exchange for new operating lease liabilities | 1,562 | 0 |
Amounts included in period-end accounts payable for: | ||
Purchases of property, plant and equipment | 2,165 | 7,123 |
Debt issuance cost | $ 0 | $ 52 |
Basis of Presentation and Natur
Basis of Presentation and Nature of the Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of the Business | BASIS OF PRESENTATION AND NATURE OF THE BUSINESS The condensed consolidated financial statements have been prepared by Renewable Energy Group, Inc. and its subsidiaries (the "Company" or "REG"), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations and cash flows at the dates and for the periods presented. It is suggested that these interim financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in the Company’s latest annual report on Form 10-K filed on March 7, 2019. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. As of March 31, 2019 , the Company owns and operates a network of fourteen biorefineries, with twelve locations in North America and two locations in Europe, which includes thirteen operating biomass-based diesel production facilities with aggregate nameplate production capacity of 520 million gallons per year ("mmgy") and one fermentation facility. Ten of these plants are “multi-feedstock capable” which allows them to use a broad range of lower-cost feedstocks, such as inedible corn oil, used cooking oil and inedible animal fats in addition to vegetable oils, such as soybean oil and canola oil. The biomass-based diesel industry and the Company’s business have benefited from certain federal and state incentives. The federal biodiesel mixture excise tax credit (the "BTC") was retroactively reinstated on February 9, 2018, for the fiscal year 2017, but has not been reinstated for 2018 or 2019 as of the date of this report. The expiration or modification of any one or more of those incentives, could adversely affect the financial results of the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following accounting policies should be read in conjunction with a summary of the significant accounting policies the Company has disclosed in its Annual Report on Form 10-K for the year ended December 31, 2018 . Restricted Cash The Company segregates certain cash balances as restricted cash that represent those funds required to be set aside by a contractual agreement. The Company classifies restricted cash between current and non-current assets based on the length of time of the restricted use. As of March 31, 2019 and 2018 , current restricted cash amounted to $3,000 and $0 , respectively, which was held as pledges for letters of credit issued to support our operations. See the table below for reconciliation of "Cash, Cash Equivalents and Restricted Cash" in regards to the Condensed Consolidated Statements of Cash Flows: March 31, 2019 March 31, 2018 Cash and cash equivalents $ 123,062 $ 69,290 Restricted cash 3,000 — Total cash, cash equivalents and restricted cash in the Condensed Statements of Cash Flows $ 126,062 $ 69,290 Marketable Securities The Company’s marketable securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). Realized gains or losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other income, net. The Company evaluates such investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company’s intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be collected based on credit risk and the amortized cost basis of the debt security is recognized in earnings. The Company has no current requirement or intent to sell a material portion of marketable securities as of March 31, 2019 . The Company expects to recover up to (or beyond) the initial cost of investment for securities held. In computing realized gains and losses on available-for-sale securities, the Company determines cost based on amounts paid, including direct costs such as commissions to acquire the security, using the specific identification method. Renewable Identification Numbers ("RINs") When the Company produces and sells a gallon of biomass-based diesel, 1.5 to 1.7 RINs per gallon are generated. RINs are used to track compliance with the Renewable Fuel Standard ("RFS2"). RFS2 allows the Company to attach between zero and 2.5 RINs to any gallon of biomass-based diesel. As a result, a portion of the selling price for a gallon of biomass-based diesel is generally attributable to RFS2 compliance. However, RINs that the Company generates are a form of government incentive and not a result of the physical attributes of the biomass-based diesel production. Therefore, no cost is allocated to the RIN when it is generated, regardless of whether the RIN is transferred with the biomass-based diesel produced or held by the Company pending attachment to other biomass-based diesel production sales. In addition, the Company also obtains RINs from third parties who have separated the RINs from gallons of biomass-based diesel. From time to time, the Company holds varying amounts of these separated RINs for resale. RINs obtained from third parties are initially recorded at their cost and are subsequently revalued at the lower of cost or net realizable value as of the last day of each accounting period. The resulting adjustments are reflected in costs of goods sold for the period. The value of these RINs is reflected in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheets. The cost of goods sold related to the sale of these RINs is determined using the average cost method, while market prices are determined by RIN values, as reported by the Oil Price Information Service ("OPIS"). Low Carbon Fuel Standard The Company generates Low Carbon Fuel Standard ("LCFS") credits for its low carbon fuels or blendstocks when its qualified low carbon fuels are transported into an LCFS market. LCFS credits are used to track compliance with the LCFS. As a result, a portion of the selling price for a gallon of biomass-based diesel sold into an LCFS market is also attributable to LCFS compliance. However, LCFS credits that the Company generates are a form of government incentive and not a result of the physical attributes of the biomass-based diesel production. Therefore, no cost is allocated to the LCFS credit when it is generated, regardless of whether the LCFS credit is transferred with the biomass-based diesel produced or held by the Company. In addition, the Company also obtains LCFS credits from third-party trading activities. From time to time, the Company holds varying amounts of these third-party LCFS credits for resale. LCFS credits obtained from third parties are initially recorded at their cost and are subsequently revalued at the lower of cost or net realizable value as of the last day of each accounting period, and the resulting adjustments are reflected in costs of goods sold for the period. The value of LCFS credits obtained from third parties is reflected in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheet. The cost of goods sold related to the sale of these LCFS credits is determined using the average cost method, while market prices are determined by LCFS values, as reported by the OPIS. At March 31, 2019 and December 31, 2018 , the Company held no LCFS credits purchased from third parties. The Company records assets acquired and liabilities assumed through the exchange of non-monetary assets based on the fair value of the assets and liabilities acquired or the fair value of the consideration exchanged, whichever is more readily determinable. Convertible Debt In June 2016, the Company issued $152,000 aggregate principal amount of 4% convertible senior notes due in 2036 (the "2036 Convertible Senior Notes"). See "Note 8 - Debt" for a further description of the 2036 Convertible Senior Notes. During the three months ended March 31, 2019 and 2018 , the Company made no repurchases of the 2036 Convertible Senior Notes. In June 2014, the Company issued $143,800 aggregate principal amount of 2.75% convertible senior notes due in 2019 (the "2019 Convertible Senior Notes"). During the three months ended March 31, 2018, the Company used $6,689 under the 2017 Program (defined below in "Security Repurchase Programs") to repurchase $6,311 principal amount of the 2019 Convertible Senior Notes. During the three months ended March 31, 2019 , the Company made no repurchases of the 2019 Convertible Senior Notes. See "Security Repurchase Programs" below. Capped Call Transaction In connection with the issuance of the 2019 Convertible Senior Notes, the Company entered into capped call transactions. The purchased capped call transactions were recorded as a reduction to common stock-additional paid-in-capital. Because this was considered to be an equity transaction and qualifies for the derivative scope exception, no future changes in the fair value of the capped call will be recorded by the Company. During 2016, in connection with the issuance of the 2036 Convertible Senior Notes, certain call options covered by the original capped call transaction were rebalanced and reset to cover 100% of the total number of shares of the Company's Common Stock underlying the remaining principal of the 2019 Convertible Senior Notes. The impact of these transactions, net of tax, was reflected as an addition/reduction to Additional Paid-in Capital as presented in the Condensed Consolidated Statements of Stockholders' Equity. Security Repurchase Programs In December 2017, June 2018 and January 2019, the Company's Board of Directors approved a repurchase program, each of up to $75,000 of the Company's convertible notes and/or shares of common stock (the "2017 Program","2018 Program", and "2019 Program", respectively). Under these programs, the Company may repurchase convertible notes or shares from time to time in open market transactions, privately negotiated transactions or by other means. The timing and amount of repurchase transactions under each program are determined by the Company's management based on its evaluation of market conditions, share price, bond price, legal requirements and other factors. During the three months ended March 31, 2018 , the Company repurchased 641,601 shares of Common Stock for $7,828 under the 2017 Program. In that same period, the Company used approximately $6,689 under the 2017 Program to repurchase $6,311 principal amount of the 2019 Convertible Senior Notes. There were no share or note repurchases made under the 2017, 2018 or 2019 Programs during the quarter ended March 31, 2019 . Revenue Recognition The Company generally has a single performance obligation in its arrangements with customers. The Company believes for most of its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The Company records these costs within selling, general and administrative expenses. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. • sales of biodiesel and renewable diesel produced at our facilities and acquired from third parties, including RINs and LCFS credits; • resale of petroleum acquired from third parties, along with the sale of petroleum-based products further blended with biodiesel produced at our wholly owned facilities; • sales of raw materials, glycerin, and other co-products of the biomass-based diesel production process; • other revenue, including biomass-based diesel facility management and operational services; and • incentive payments from federal and state governments, including the BTC, and from the USDA Advanced Biofuel Program. Disaggregation of revenue: All revenue recognized in the income statement, except for Biomass-based diesel Government Incentives, is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line and segment: Reportable Segments Three months ended March 31, 2019 Biomass-based Services Corporate Intersegment Consolidated Biomass-based diesel sales, net of BTC related amount due to customers of $0 $ 399,632 $ — $ — $ (85,520 ) $ 314,112 Petroleum diesel sales — — 83,903 — 83,903 Other biomass-based diesel revenue 57,191 — — — 57,191 Separated RIN sales 22,463 — — — 22,463 Other revenues — 19,583 — (19,511 ) 72 Total revenues from contracts with customers $ 479,286 $ 19,583 $ 83,903 $ (105,031 ) $ 477,741 Biomass-based diesel government incentives 468 — — — 468 Total revenues $ 479,754 $ 19,583 $ 83,903 $ (105,031 ) $ 478,209 Three months ended March 31, 2018 Biomass-based Diesel Services Corporate and other Intersegment Revenues Consolidated Total Biomass-based diesel sales, net of BTC related amount due to customers of $144,944 $ 166,191 $ — $ 3,579 $ (17,683 ) $ 152,087 Petroleum diesel sales — — 70,964 — 70,964 Other biomass-based diesel revenue 51,710 — — — 51,710 Separated RIN sales 47,179 — — — 47,179 Other revenues — 35,215 — (34,438 ) 777 Total revenues from contracts with customers $ 265,080 $ 35,215 $ 74,543 $ (52,121 ) $ 322,717 Biomass-based diesel government incentives 365,285 — — — 365,285 Total revenues $ 630,365 $ 35,215 $ 74,543 $ (52,121 ) $ 688,002 Contract balances: The following table provides information about receivables and contract liabilities from contracts with customers: March 31, 2019 December 31, 2018 Accounts receivable $ 104,989 $ 74,551 Short-term contract liabilities (deferred revenue) $ (13,315 ) $ (300 ) The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. Significant changes to the contract liabilities during the three months ended March 31, 2019 and 2018 are as follows: January 1, 2019 Cash receipts Less: Impact on Other March 31, 2019 Deferred revenue $ 300 $ 28,658 $ 15,643 $ — $ 13,315 January 1, 2018 Cash receipts Less: Impact on Other March 31, 2018 Deferred revenue $ 2,218 $ 10,507 $ 10,985 $ — $ 1,740 Payables to customers related to BTC — — (144,944 ) 5,832 150,776 $ 2,218 $ 10,507 $ (133,959 ) $ 5,832 $ 152,516 Discontinued Operations Loss from discontinued operations mainly relates to the research and development activities of REG Life Sciences, the Company's industrial biotechnology business, which has been classified as assets held for sale following our decision to pursue a sale of this business in the fourth quarter of 2018. See "Note 5 - Discontinued Operations" for further details. New Accounting Standards On February 25, 2016, the FASB issued Accounting Standard Update ("ASU") 2016-02, Topic 842, Leases, which introduces a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in ASC 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). Furthermore, the ASU addresses other concerns related to the current leases model. On July 19, 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which addresses certain aspects of the new leases standard, including the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other things. On July, 31, 2018, the FASB issued ASU 2018-11, Codification Improvements to Topic 842, Leases, which provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted all of the ASU's related to ASC 842 effective January 1, 2019. The Company applied a modified retrospective transition approach. The Company did not elect the practical expedient (1) to reassess the lease classification for any expired or existing leases; (2) to reassess whether any expired or existing contracts are or contain leases and (3) to reassess initial direct costs. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases and to assess the impairment of its right-of-use assets. While lease classification remained unchanged, hindsight resulted in generally shorter accounting lease terms and useful lives of the corresponding right of use assets. The hindsight analysis also resulted in an approximate negative impact on beginning retained earnings of $7,000 , related to the impairment of a right-of-use asset at the Company's New Orleans facility. The Company elected the transitional practical expedient for existing or expired land easements, allowing the Company to elect not to assess whether those land easements are, or contain, leases in accordance with ASC 842. The Company also elected the practical expedient to adjust the carrying amount of the right-of-use assets for the unfavorable lease liability previously recognized on the balance sheet. Additionally, the Company made an accounting policy election that keeps leases with an initial term of 12 months or less off of the balance sheet and resulted in recognizing those lease payments in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Refer to "Note 9 - Leases" for further detail. On August 28, 2017, the FASB issued ASU 2017-12, which amends the hedge accounting recognition and presentation requirements in ASC 815 to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. For public business entities, the amendments in ASU 2017-12 are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. T he Company believes that the ASU 2017-12 will allow more of its derivative contracts to qualify for hedge accounting elections. The Company adopted ASU 2017-12 effective January 1, 2019, and changes in fair value of derivatives continue to be recognized in current period earnings for the three months ended March 31, 2019. On November 7, 2018, the FASB issued ASU 2018-16, which permits entities to use the Overnight Index Swap ("OIS") Rate based on Secured Overnight Financing Rate ("SOFR") as an eligible benchmark interest rate during the early stages of the transition from LIBOR to SOFR. For public business entities, the amendments in ASU 2018-16 are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company's adoption of ASU 2018-16 did not have a material impact on its consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, which amends the Board's guidance on the impairment of financial instruments. The ASU 2016-13 adds to U.S. GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under this new guidance, an entity recognizes as an allowance its estimate of expected credit losses. For public companies, the ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance, but does not expect it to have any material impact on its consolidated financial statements. On August 28, 2018, the FASB issued ASU 2018-13, which changes the fair value measurement disclosure requirements of ASC 820. ASU 2018-13 eliminates or modifies certain disclosure requirements of ASC 820 and requires new disclosures relating to changes in unrealized gains or losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the applicable reporting period. ASU 2018-13 also explicitly requires entities to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. The Company is evaluating the impact of this guidance on its consolidated financial statements, but does not expect the impact to be significant. |
Marketable Securities (Notes)
Marketable Securities (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES The Company's investments in marketable securities are stated at fair value and are available-for-sale. The following table summarizes the Company's investments in marketable securities: March 31, 2019 Maturity Gross Amortized Cost Total Unrealized Gains Total Unrealized Losses Fair Value Commercial paper Within one year $ 8,485 $ — $ (1 ) $ 8,484 Corporate bonds Within one year 8,998 — — 8,998 Total $ 17,483 $ — $ (1 ) $ 17,482 December 31, 2018 Maturity Gross Amortized Cost Total Unrealized Gains Total Unrealized Losses Fair Value Commercial paper Within one year $ 22,886 $ — $ (14 ) $ 22,872 Corporate bonds Within one year 28,074 — (14 ) 28,060 Total $ 50,960 $ — $ (28 ) $ 50,932 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of the following: March 31, 2019 December 31, 2018 Raw materials $ 62,319 $ 40,348 Work in process 3,967 3,840 Finished goods 154,280 124,712 Total $ 220,566 $ 168,900 |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS In the fourth quarter of 2018, concluding a comprehensive strategic assessment of the Company's development-stage industrial biotechnology business, REG Life Sciences, the Company's Board of Directors authorized it to pursue a plan to sell the REG Life Sciences core assets and business. The Company recorded an impairment loss, net of tax, of $11,226 on classifying the REG Life Sciences assets as held for sale reflecting the fair value of the estimated proceeds from the sale, net of costs to sell for the year ended December 31, 2018 . This valuation technique is considered as Level 3 pricing category. REG Life Sciences' results for all periods and for the three months ended March 31, 2019 are classified as discontinued operations. There was no income tax impact from discontinued operations for all periods. Loss on Discontinued Operations: For the three months ended March 31, 2019 2018 Other revenues $ 1,786 $ 1,250 Other costs of goods sold (2,200 ) (1,138 ) Research and development expense (1,598 ) (5,564 ) Other income (expense), net (5 ) 1,997 Pre-tax loss from discontinued operations (2,017 ) (3,455 ) Income tax expense — — Loss on discontinued operations $ (2,017 ) $ (3,455 ) Reconciliation of the Carrying Amounts of Major Classes of Assets and Liabilities Included in Assets and Liabilities Held for Sale: March 31, 2019 December 31, 2018 Machinery and equipment, net $ 824 $ 824 In-process research and development 13,652 13,652 Impairment recognized on assets classified as held for sale (11,226 ) (11,226 ) Total assets classified as held for sale $ 3,250 $ 3,250 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS Prepaid expense and other assets consist of the following: March 31, 2019 December 31, 2018 Commodity derivatives and related collateral, net $ 7,367 $ 13,799 Prepaid expenses 15,264 17,187 Deposits 1,963 2,123 RIN inventory 3,061 2,000 Taxes receivable 2,365 2,991 Other 3,381 3,069 Total $ 33,401 $ 41,169 RIN inventory values were adjusted in the amounts of $0 and $630 at March 31, 2019 and December 31, 2018 , respectively, to reflect the lower of cost or net realizable value. Other noncurrent assets consist of the following: March 31, 2019 December 31, 2018 Investments $ 13,199 $ 13,053 Spare parts inventory 2,680 2,680 Catalysts 1,810 1,989 Deposits 381 381 Other 2,607 3,167 Total $ 20,677 $ 21,270 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Intangible assets consist of the following: March 31, 2019 Cost Accumulated Amortization Net Raw material supply agreement $ 6,230 $ (2,986 ) $ 3,244 Renewable diesel technology 8,300 (2,674 ) 5,626 Ground lease 200 (160 ) 40 Acquired customer relationships 4,747 (1,049 ) 3,698 Trademarks 704 — 704 Total intangible assets $ 20,181 $ (6,869 ) $ 13,312 December 31, 2018 Cost Accumulated Amortization Net Raw material supply agreement $ 6,230 $ (2,866 ) $ 3,364 Renewable diesel technology 8,300 (2,536 ) 5,764 Ground lease 200 (157 ) 43 Acquired customer relationships 4,747 (976 ) 3,771 Trademarks 704 — 704 Total intangible assets $ 20,181 $ (6,535 ) $ 13,646 The Company recorded intangible amortization expense of $334 and $324 for the three months ended March 31, 2019 , and 2018 , respectively. The estimated intangible asset amortization expense for the remainder of 2019 through 2024 and thereafter is as follows: April 1, 2019 through December 31, 2019 $ 1,451 2020 1,672 2021 1,678 2022 1,671 2023 1,678 2024 1,685 2025 and thereafter 3,477 Total $ 13,312 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table shows the Company’s term debt: March 31, 2019 December 31, 2018 4.00% Convertible Senior Notes, $96,300 face amount, due in June 2036 $ 75,940 $ 75,477 2.75% Convertible Senior Notes, $67,380 face amount, due in June 2019 66,849 66,361 REG Danville term loan, secured, variable interest rate of LIBOR plus 4%, due in July 2022 8,548 8,964 REG Ralston term loan, variable interest rate of Prime Rate plus 2.25%, due in October 2025 18,035 18,948 REG Grays Harbor term loan, variable interest of minimum of 3.5% or Prime Rate plus 0.25%, due in May 2022 8,521 8,828 REG Capital term loan, fixed interest rate of 3.99%, due in January 2028 7,121 7,185 Other 47 54 Total term debt before debt issuance costs 185,061 185,817 Less: Current portion of long-term debt 150,339 149,006 Less: Debt issuance costs (net of accumulated amortization of $4,047 and $3,813, respectively) 3,217 3,390 Total long-term debt $ 31,505 $ 33,421 2019 Convertible Senior Notes In June 2014, the Company issued $143,800 in convertible senior notes (the "2019 Convertible Senior Notes") with a maturity date of June 15, 2019, unless earlier converted or repurchased. The 2019 Convertible Senior Notes bear interest at a rate of 2.75% per annum, payable semi-annually in arrears, beginning December 15, 2014. The initial conversion rate is 75.3963 shares of Common Stock per $1,000 principal amount of 2019 Convertible Senior Notes, which represents an initial conversion price of approximately $13.26 per share. During 2018, the Company bought back $6,311 of principal of the 2019 Convertible Senior Notes. Such notes can be converted at any time on or after December 15, 2018 until such notes mature on June 15, 2019. In accordance with the indenture governing the 2019 Convertible Senior Notes, we have elected to settle all conversions of each $1,000 principal amount of such notes being converted on or after October 23, 2018, with $1,000 in cash and any conversion value in excess of that amount in shares of the Company's common stock. 2036 Convertible Senior Notes On June 2, 2016, the Company issued $152,000 aggregate principal amount of the 2036 Convertible Senior Notes in a private offering to qualified institutional buyers. The 2036 Convertible Senior Notes bear interest at a rate of 4.00% per year payable semi-annually in arrears on June 15 and December 15 of each year, beginning December 15, 2016. The notes will mature on June 15, 2036, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Prior to December 15, 2035, the 2036 Convertible Senior Notes will be convertible only upon satisfaction of certain conditions and during certain periods as stipulated in the indenture. On or after December 15, 2035 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2036 Convertible Senior Notes may convert their notes at any time. The 2036 Convertible Senior Notes may be settled in cash, the Company’s common shares or a combination of cash and the Company’s common shares, at the Company’s election. The Company may not redeem the 2036 Convertible Senior Notes prior to June 15, 2021. Holders of the 2036 Convertible Senior Notes will have the right to require the Company to repurchase for cash all or some of their notes at 100% of their principal, plus any accrued and unpaid interest on each of June 15, 2021, June 15, 2026 and June 15, 2031. Holders of the 2036 Convertible Senior Notes will have the right to require the Company to repurchase for cash all or some of their notes at 100% of their principal, plus any accrued and unpaid interest upon the occurrence of certain fundamental changes. The initial conversion rate is 92.8074 common shares per $1,000 (one thousand) principal amount of 2036 Convertible Senior Notes (equivalent to an initial conversion price of approximately $10.78 per common share). In addition, the 2036 Convertible Senior Notes will become convertible in the subsequent quarter if the closing price of the Company’s common stock exceeds $14.01 , 130% of the Convertible Senior Notes’ initial conversion price, for at least 20 trading days during the 30 consecutive trading days prior to each quarter-end date. If the 2036 Convertible Senior Notes become convertible and should the holders elect to convert, the Company’s current intent and policy is to settle the principal amount the 2036 Convertible Senior Notes in cash, with the remaining value satisfied at the Company’s option in cash, stock or a combination of cash and stock. As of March 31, 2019 and December 31, 2018 , the early conversion event was met based on the Company's stock price and as a result, the 2036 Convertible Senior Notes have been classified as a current liability on the Company's Condensed Consolidated Balance Sheets at March 31, 2019 and December 31, 2018 . The net proceeds from the offering of the 2036 Convertible Senior Notes were approximately $147,118 , after deducting fees and offering expenses of $4,882 , which was capitalized as debt issuance costs and is being amortized through June 2036. The debt discount is to be amortized through June 2036. The effective interest rate on the debt liability component was 2.45% . Lines of Credit The following table shows the Company's lines of credit: March 31, 2019 December 31, 2018 Amount outstanding under lines of credit $ 102,612 $ 14,250 Maximum available to be borrowed under lines of credit $ 58,348 $ 114,889 The Company's wholly-owned subsidiaries, REG Services Group, LLC and REG Marketing & Logistics Group, LLC, are borrowers under a Credit Agreement dated December 23, 2011 with the lenders party thereto (“Lenders”) and Wells Fargo Capital Finance, LLC, as the agent, (as amended, the “M&L and Services Revolver”). The maximum commitment of the Lenders under the M&L and Services Revolver to make revolving loans is $150,000 , subject to an accordion feature, which allows the borrowers to request commitments for additional revolving loans in an aggregate amount not to exceed to $50,000 , the making of which is subject to customary conditions, including the consent of Lenders providing such additional commitments. The maturity date of the M&L and Services Revolver is September 30, 2021. Loans advanced under the M&L and Services Revolver bear interest based on a one-month LIBOR rate (which shall not be less than zero ), plus a margin based on Quarterly Average Excess Availability (as defined in the Revolving Credit Agreement), which may range from 1.75% per annum to 2.25% per annum. The M&L and Services Revolver contains various loan covenants that restrict each subsidiary borrower’s ability to take certain actions, including restrictions on incurrence of indebtedness, creation of liens, mergers or consolidations, dispositions of assets, repurchase or redemption of capital stock, making certain investments, making distributions to the Company unless certain conditions are satisfied, entering into certain transactions with affiliates or changing the nature of the subsidiary’s business. In addition, the subsidiary borrowers are required to maintain a fixed charge coverage ratio of at least 1.0 to 1.0 if excess availability under the M&L and Services Revolver is less than 10% of the total $150,000 of current revolving loan commitments, or $15,000 currently. The M&L and Services Revolver is secured by the subsidiary borrowers’ membership interests and substantially all of their assets. In addition, the M&L and Services Revolver is secured by the accounts receivable and inventory of REG Albert Lea, LLC, REG Houston, LLC, REG New Boston, LLC, REG Geismar, LLC, and REG Seneca, LLC (collectively, the "Plant Loan Parties") subject to a $40,000 limitation with respect to each of the Plant Loan Parties. REG Germany has a trade finance facility agreement ("Uncommitted Credit Facility Agreement") with BNP Paribas, which allows it to borrow up to $25,000 for funding the purchase of goods and services. Amounts outstanding under the Uncommitted Credit Facility Agreement bear variable interest and are payable as stipulated in the agreement. The amount that can be borrowed under the agreement can be amended, cancelled or restricted at BNP Paribas's sole discretion and therefore is not included in the maximum available to be borrowed under lines of credit above. The Uncommitted Credit Facility Agreement contains various loan covenants that require REG Germany to maintain certain financial measures. At March 31, 2019 , the nominal interest rates ranged from 1.50% to 4.39% per annum. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company enters into New York Mercantile Exchange NY Harbor ULSD ("NY Harbor ULSD" or previously referred to as heating oil), CBOT Soybean Oil (previously referred to as soybean oil) and New York Mercantile Exchange Natural Gas futures, swaps and options ("commodity contract derivatives") to reduce the risk of price volatility related to anticipated purchases of feedstock raw materials and to protect cash margins from potentially adverse effects of price volatility on biomass-based diesel sales where prices are set at a future date. All of the Company’s commodity contract derivatives are designated as non-hedge derivatives and recorded at fair value on the Condensed Consolidated Balance Sheets. Unrealized gains and losses are recognized as a component of biomass-based diesel costs of goods sold reflected in current results of operations. As of March 31, 2019 , the net notional volumes of NY Harbor ULSD, CBOT Soybean Oil and NYMEX Natural Gas covered under the open commodity derivative contracts were approximately 92 million gallons, 76 million pounds and 2 million million British thermal units, respectively. The Company offsets the fair value amounts recognized for its commodity contract derivatives with cash collateral with the same counterparty under a master netting agreement. The net position is presented within prepaid and other assets in the Condensed Consolidated Balance Sheets. The following table sets forth the fair value of the Company's commodity contract derivatives and amounts that offset within the Condensed Consolidated Balance Sheets: March 31, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Gross amounts of derivatives recognized at fair value $ 3,899 $ 1,019 $ 11,843 $ 1,799 Cash collateral 4,487 — 3,755 — Total gross amount recognized 8,386 1,019 15,598 1,799 Gross amounts offset (1,019 ) (1,019 ) (1,799 ) (1,799 ) Net amount reported in the condensed consolidated balance sheets $ 7,367 $ — $ 13,799 $ — The following table sets forth the commodity contract derivatives gains and (losses) included in the Condensed Consolidated Statements of Operations: Location of Gain (Loss) Three Months Three Months Commodity derivatives Cost of goods sold – Biomass-based diesel $ (22,739 ) $ (2,438 ) |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases, Operating [Abstract] | |
Operating Leases | LEASES The Company leases land, property and equipment under certain operating leases. The Company's leases consist primarily of access to distribution terminals, biomass-based diesel and feedstock storage tanks, railcars and vehicles. The Company determines at the inception of a lease whether an arrangement that provides the Company control over the use of an asset is a lease. The Company recognizes at lease commencement a right-of-use ("ROU") asset and lease liability based on the present value of the future lease payments over the lease term. As discussed in Note 2, the Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. At the end of the lease term the Company, generally, has the option to (a) return the leased equipment to the lessor, (b) purchase the property at its then fair value or (c) renew its lease at the fair rental value on a year-to-year basis or for an agreed upon term. When it is reasonably certain that the Company will exercise the option, the impact of the option is included in the lease term for purposes of determining total future lease payments. As most of its lease agreements do not explicitly state the discount rate implicit in the lease, the Company uses its incremental borrowing rate on the commencem en t date to calculate the present value of future payments. The Company's leases commonly include payments that are based on the Consumer Price Index ("CPI") or other similar indices. If the indices are known at inception of the leases, they are included in the calculation of the ROU asset and lease liability. Other variable lease payments, such as usage-based amounts or when the indices are not known at inception, are excluded from the ROU asset and lease liability, and are expensed as incurred. In addition to the base rent, office equipment leases typically contain provisions for maintenance services, which are considered non-lease components for accounting purposes. For these leases, nonlease components are excluded from our ROU assets and lease liabilities and expensed as incurred. For all other types of leases, we apply a practical expedient to include these non-lease components in calculating the ROU asset and lease liability. The following table summarizes information about the Company's lease expense for the three months ended March 31, 2019: 2019 Lease expense: Operating lease expense $ 5,473 Variable lease expenses 1,764 Short-term and other lease expenses 426 Total lease expense $ 7,663 The weighted-average remaining lease term for the Company's operating leases is 5.81 years at March 31, 2019 . The weighted-average discount rate for the Company's operating leases is 4.85% as of March 31, 2019 . For each of the next five calendar years and thereafter, future minimum lease payments and scheduled maturities under operating leases that have initial or remaining noncancelable lease terms in excess of one year are as follows: Total payments Less: Discount Operating lease obligation April 1, 2019 through December 31, 2019 $ 14,830 $ 1,667 $ 13,163 2020 15,107 1,565 13,542 2021 11,362 1,003 10,359 2022 3,525 675 2,850 2023 2,759 552 2,207 2024 1,713 472 1,241 2025 and thereafter 11,510 2,383 9,127 Total $ 60,806 $ 8,317 $ 52,489 As the Company has not restated prior-year information for its adoption of ASC Topic 842, the following presents the Company's future minimum lease payments for operating leases under ASC Topic 840 at December 31, 2018: Total Payments 2019 $ 20,326 2020 14,063 2021 10,643 2022 3,162 2023 2,406 Thereafter 13,736 Total minimum payments $ 64,336 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT The fair value hierarchy prioritizes the inputs used in measuring fair value as follows: • Level 1 — Quoted prices for identical instruments in active markets. • Level 2 — Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets. • Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. A summary of assets (liabilities) measured at fair value is as follows: As of March 31, 2019 Total Level 1 Level 2 Level 3 Commercial paper $ 8,484 $ — $ 8,484 $ — Corporate bonds $ 8,998 — 8,998 — Commodity contract derivatives $ 2,880 508 2,372 — Contingent considerations for acquisitions $ (6,849 ) — — (6,849 ) $ 13,513 $ 508 $ 19,854 $ (6,849 ) As of December 31, 2018 Total Level 1 Level 2 Level 3 Commercial paper $ 22,872 $ — $ 22,872 $ — Corporate bonds $ 28,060 — 28,060 — Commodity contract derivatives $ 10,044 499 9,545 — Contingent considerations for acquisitions $ (9,861 ) — — (9,861 ) $ 51,115 $ 499 $ 60,477 $ (9,861 ) The following is a reconciliation of the beginning and ending balances for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Contingent Consideration for Acquisitions 2019 2018 Balance at beginning of period, January 1 $ 9,861 $ 20,485 Change in estimates included in earnings 304 459 Settlements (3,316 ) (2,813 ) Balance at end of period, March 31 $ 6,849 $ 18,131 The estimated fair values of the Company’s financial instruments, which are not recorded at fair value, are as follows: As of March 31, 2019 As of December 31, 2018 Asset (Liability) Fair Value Asset (Liability) Fair Value Financial liabilities: Debt and lines of credit $ (287,673 ) $ (450,946 ) $ (200,067 ) $ (410,564 ) The carrying amounts reported in the Condensed Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values. Money market funds are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company used the following methods and assumptions to estimate fair value of its financial instruments: Marketable securities: The fair value of marketable securities, which include commercial papers and corporate notes/bonds is obtained using quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active and inputs other than quoted prices, e.g., interest rates and yield curves. Commodity derivatives: The instruments held by the Company consist primarily of futures contracts, swap agreements, purchased put options and written call options. The fair value of contracts based on quoted prices of identical assets in an active exchange-traded market is reflected in Level 1. Contract fair value that is determined based on quoted prices of similar contracts in over-the-counter markets is reflected in Level 2. Contingent consideration for acquisitions : The fair value of all other contingent consideration is determined using an expected present value technique. Expected cash flows are determined using the probability weighted-average of possible outcomes that would occur should the achievement of certain milestones related to the production and/or sale of biomass-based diesel at the specific production facility. A discount rate ranging from 5.8% to 12.5% is used to estimate the fair value of the expected payments. Debt and lines of credit: The fair value of long-term debt and lines of credit was established using discounted cash flow calculations and current market rates reflecting Level 2 inputs. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is presented in conformity with the two-class method required for participating securities. Participating securities include restricted stock units ("RSUs"). Under the two-class method, net income is reduced for distributed and undistributed dividends earned in the current period. The remaining earnings are then allocated to Common Stock and the participating securities. The Company calculates the effects of participating securities on diluted earnings per share ("EPS") using both the “if-converted or treasury stock” and "two-class" methods and discloses the method which results in a more dilutive effect. The effects of Common Stock options, warrants, stock appreciation rights and convertible notes on diluted EPS are calculated using the treasury stock method unless the effects are anti-dilutive to EPS. For the 2036 Convertible Senior Notes, the Company’s current intent is to settle conversions using cash for the principal amount of convertible senior notes converted, with the remaining value satisfied at the Company’s option in cash, stock or a combination of cash and stock. For the 2019 Convertible Senior Notes, the Company has elected to settle the principal amount of convertible notes converted with cash and any conversion value in excess of that amount in shares of the Company's common stock. Therefore, the dilutive effect of the convertible senior notes is limited to the conversion premium. The following potentially dilutive weighted average securities were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders during the periods presented, as the effect was anti-dilutive: Three Months Three Months Stock appreciation rights 1,012,097 1,006,849 2019 Convertible Senior Notes 2,624,215 5,377,690 2036 Convertible Senior Notes 3,737,641 13,545,060 Total 7,373,953 19,929,599 The following table presents the calculation of diluted net income (loss) per share attributable to common stockholders: Three Months Three Months Net income (loss) from continuing operations attributable to the Company’s common stockholders - Basic $ (41,387 ) $ 212,608 Plus (less): effect of participating securities — 5,236 Net income (loss) attributable to common stockholders (41,387 ) 217,844 Less: effect of participating securities — (5,236 ) Net income (loss) from continuing operations attributable to the Company's common stockholders - Diluted $ (41,387 ) $ 212,608 Net loss from discontinued operations attributable to the Company's common stockholders - Basic and Diluted $ (2,017 ) $ (3,455 ) Net income (loss) attributable to the Company's common stockholders - Basic $ (43,404 ) $ 209,238 Plus (less): effect of participating securities — 5,151 Net income (loss) attributable to common stockholders (43,404 ) 214,389 Less: effect of participating securities — (5,151 ) Net income (loss) attributable to the Company's common stockholders - Diluted $ (43,404 ) $ 209,238 Shares: Weighted-average shares used to compute basic net income (loss) per share 37,353,352 38,819,443 Adjustment to reflect conversion of convertible notes — 561,665 Adjustment to reflect stock appreciation right conversions — 102,979 Weighted-average shares used to compute diluted net income (loss) per share 37,353,352 39,484,087 Net income (loss) per share attributable to common stockholders - Diluted Continuing operations $ (1.11 ) $ 5.38 Discontinued operations $ (0.05 ) $ (0.09 ) Diluted net income (loss) $ (1.16 ) $ 5.30 |
Reportable Segments and Geograp
Reportable Segments and Geographic Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments and Geographic Information | REPORTABLE SEGMENTS AND GEOGRAPHIC INFORMATION The Company reports its reportable segments based on products and services provided to customers. The Company re-assesses its reportable segments on an annual basis. The Company's reportable segments generally align the Company's external financial reporting segments with its internal operating segments, which are based on its internal organizational structure, operating decisions and performance assessment. In the fourth quarter of 2018, concluding a comprehensive strategic assessment of the Company's Life Sciences business, which primarily represented the Renewable Chemicals reportable segment, the Company's Board of Directors authorized it to pursue a plan to sell REG Life Sciences. As a result of this authorization, the Company's reportable segments at March 31, 2019 and for the year ended December 31, 2018 are composed of Biomass-based Diesel, Services and Corporate and other activities. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All prior period disclosures below have been recast to present results on a comparable basis. The Biomass-based Diesel segment processes waste vegetable oils, animal fats, virgin vegetable oils and other feedstocks into biomass-based diesel. The Biomass-based Diesel segment also includes the Company’s purchases and resale of biomass-based diesel produced by third parties. Revenue is derived from the purchases and sales of biomass-based diesel, RINs and raw material feedstocks acquired from third parties, sales of biomass-based diesel produced under toll manufacturing arrangements with third party facilities, sales of processed biomass-based diesel from Company facilities, related by-products and renewable energy government incentive payments, in the U.S. and internationally. The Services segment offers services for managing the construction of biomass-based diesel production facilities and managing ongoing operations of third-party plants and collects fees related to the services provided. The Company does not allocate items that are of a non-operating nature or corporate expenses to the business segments. Revenues from services provided to other segments are recorded by the Services segment at cost. The Corporate and Other segment includes trading activities related to petroleum-based heating oil and diesel fuel as well as corporate activities, which consist of corporate office expenses such as compensation, benefits, occupancy and other administrative costs, including management service expenses. Corporate and Other also includes income/(expense) not associated with the reportable segments, such as corporate general and administrative expenses, shared service expenses, interest expense and interest income, all reflected on an accrual basis of accounting. In addition, Corporate and Other includes cash and other assets not associated with the reportable segments, including investments. Intersegment revenues are reported by the Services and Corporate and Other segments. The following table represents the significant items by reportable segment: Three Months Three Months Net sales from continuing operations: Biomass-based Diesel $ 479,754 $ 630,365 Services 19,583 35,215 Corporate and Other 83,903 74,543 Intersegment revenues (105,031 ) (52,121 ) $ 478,209 $ 688,002 Income (loss) from continuing operations before income taxes: Biomass-based Diesel $ (40,278 ) $ 215,529 Services (869 ) 5,024 Corporate and Other (670 ) (3,914 ) $ (41,817 ) $ 216,639 Depreciation and amortization expense, net: Biomass-based Diesel $ 12,024 $ 8,037 Services 630 329 Corporate and Other 886 741 $ 13,540 $ 9,107 Cash paid for purchases of property, plant and equipment: Biomass-based Diesel $ 7,688 $ 15,603 Services 547 851 Corporate and Other — 33 $ 8,235 $ 16,487 March 31, 2019 December 31, 2018 Goodwill: Services $ 16,080 $ 16,080 Assets: Biomass-based Diesel $ 1,026,539 $ 914,843 Services 55,926 63,720 Corporate and Other 407,564 379,658 Intersegment eliminations (306,880 ) (254,375 ) Assets held for sale 3,250 3,250 $ 1,186,399 $ 1,107,096 Geographic Information: The following geographic data include net sales attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant and equipment. Three Months Three Months Net revenues: United States $ 438,605 $ 639,674 Germany 39,468 46,356 Other Foreign 136 1,972 Non-United States 39,604 48,328 $ 478,209 $ 688,002 March 31, 2019 December 31, 2018 Long-lived assets: United States $ 569,474 $ 571,045 Germany 18,331 18,972 Other Foreign 666 706 $ 588,471 $ 590,723 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company is involved in legal proceedings in the normal course of business. The Company currently believes that any ultimate liability arising out of such proceedings will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Restricted Cash | Restricted Cash The Company segregates certain cash balances as restricted cash that represent those funds required to be set aside by a contractual agreement. The Company classifies restricted cash between current and non-current assets based on the length of time of the restricted use. |
Marketable Securities | Marketable Securities The Company’s marketable securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). Realized gains or losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other income, net. The Company evaluates such investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company’s intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be collected based on credit risk and the amortized cost basis of the debt security is recognized in earnings. The Company has no current requirement or intent to sell a material portion of marketable securities as of March 31, 2019 . The Company expects to recover up to (or beyond) the initial cost of investment for securities held. In computing realized gains and losses on available-for-sale securities, the Company determines cost based on amounts paid, including direct costs such as commissions to acquire the security, using the specific identification method. |
Renewable Identification Numbers (RINs) | Renewable Identification Numbers ("RINs") When the Company produces and sells a gallon of biomass-based diesel, 1.5 to 1.7 RINs per gallon are generated. RINs are used to track compliance with the Renewable Fuel Standard ("RFS2"). RFS2 allows the Company to attach between zero and 2.5 RINs to any gallon of biomass-based diesel. As a result, a portion of the selling price for a gallon of biomass-based diesel is generally attributable to RFS2 compliance. However, RINs that the Company generates are a form of government incentive and not a result of the physical attributes of the biomass-based diesel production. Therefore, no cost is allocated to the RIN when it is generated, regardless of whether the RIN is transferred with the biomass-based diesel produced or held by the Company pending attachment to other biomass-based diesel production sales. In addition, the Company also obtains RINs from third parties who have separated the RINs from gallons of biomass-based diesel. From time to time, the Company holds varying amounts of these separated RINs for resale. RINs obtained from third parties are initially recorded at their cost and are subsequently revalued at the lower of cost or net realizable value as of the last day of each accounting period. The resulting adjustments are reflected in costs of goods sold for the period. The value of these RINs is reflected in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheets. The cost of goods sold related to the sale of these RINs is determined using the average cost method, while market prices are determined by RIN values, as reported by the Oil Price Information Service ("OPIS"). |
Low Carbon Fuel Standard | Low Carbon Fuel Standard The Company generates Low Carbon Fuel Standard ("LCFS") credits for its low carbon fuels or blendstocks when its qualified low carbon fuels are transported into an LCFS market. LCFS credits are used to track compliance with the LCFS. As a result, a portion of the selling price for a gallon of biomass-based diesel sold into an LCFS market is also attributable to LCFS compliance. However, LCFS credits that the Company generates are a form of government incentive and not a result of the physical attributes of the biomass-based diesel production. Therefore, no cost is allocated to the LCFS credit when it is generated, regardless of whether the LCFS credit is transferred with the biomass-based diesel produced or held by the Company. In addition, the Company also obtains LCFS credits from third-party trading activities. From time to time, the Company holds varying amounts of these third-party LCFS credits for resale. LCFS credits obtained from third parties are initially recorded at their cost and are subsequently revalued at the lower of cost or net realizable value as of the last day of each accounting period, and the resulting adjustments are reflected in costs of goods sold for the period. The value of LCFS credits obtained from third parties is reflected in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheet. The cost of goods sold related to the sale of these LCFS credits is determined using the average cost method, while market prices are determined by LCFS values, as reported by the OPIS. At March 31, 2019 and December 31, 2018 , the Company held no LCFS credits purchased from third parties. The Company records assets acquired and liabilities assumed through the exchange of non-monetary assets based on the fair value of the assets and liabilities acquired or the fair value of the consideration exchanged, whichever is more readily determinable. |
Convertible Debt | Convertible Debt In June 2016, the Company issued $152,000 aggregate principal amount of 4% convertible senior notes due in 2036 (the "2036 Convertible Senior Notes"). See "Note 8 - Debt" for a further description of the 2036 Convertible Senior Notes. |
Capped Call Transaction | Capped Call Transaction In connection with the issuance of the 2019 Convertible Senior Notes, the Company entered into capped call transactions. The purchased capped call transactions were recorded as a reduction to common stock-additional paid-in-capital. Because this was considered to be an equity transaction and qualifies for the derivative scope exception, no future changes in the fair value of the capped call will be recorded by the Company. During 2016, in connection with the issuance of the 2036 Convertible Senior Notes, certain call options covered by the original capped call transaction were rebalanced and reset to cover 100% of the total number of shares of the Company's Common Stock underlying the remaining principal of the 2019 Convertible Senior Notes. The impact of these transactions, net of tax, was reflected as an addition/reduction to Additional Paid-in Capital as presented in the Condensed Consolidated Statements of Stockholders' Equity. |
Security Repurchase Programs | Security Repurchase Programs In December 2017, June 2018 and January 2019, the Company's Board of Directors approved a repurchase program, each of up to $75,000 of the Company's convertible notes and/or shares of common stock (the "2017 Program","2018 Program", and "2019 Program", respectively). Under these programs, the Company may repurchase convertible notes or shares from time to time in open market transactions, privately negotiated transactions or by other means. The timing and amount of repurchase transactions under each program are determined by the Company's management based on its evaluation of market conditions, share price, bond price, legal requirements and other factors. |
Revenue Recognition | Revenue Recognition The Company generally has a single performance obligation in its arrangements with customers. The Company believes for most of its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The Company records these costs within selling, general and administrative expenses. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. • sales of biodiesel and renewable diesel produced at our facilities and acquired from third parties, including RINs and LCFS credits; • resale of petroleum acquired from third parties, along with the sale of petroleum-based products further blended with biodiesel produced at our wholly owned facilities; • sales of raw materials, glycerin, and other co-products of the biomass-based diesel production process; • other revenue, including biomass-based diesel facility management and operational services; and • incentive payments from federal and state governments, including the BTC, and from the USDA Advanced Biofuel Program. Disaggregation of revenue: All revenue recognized in the income statement, except for Biomass-based diesel Government Incentives, is considered to be revenue from contracts with customers. The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. |
Discontinued Operations | Discontinued Operations Loss from discontinued operations mainly relates to the research and development activities of REG Life Sciences, the Company's industrial biotechnology business, which has been classified as assets held for sale following our decision to pursue a sale of this business in the fourth quarter of 2018. See "Note 5 - Discontinued Operations" for further details. |
New Accounting Standards | New Accounting Standards On February 25, 2016, the FASB issued Accounting Standard Update ("ASU") 2016-02, Topic 842, Leases, which introduces a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in ASC 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). Furthermore, the ASU addresses other concerns related to the current leases model. On July 19, 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which addresses certain aspects of the new leases standard, including the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other things. On July, 31, 2018, the FASB issued ASU 2018-11, Codification Improvements to Topic 842, Leases, which provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted all of the ASU's related to ASC 842 effective January 1, 2019. The Company applied a modified retrospective transition approach. The Company did not elect the practical expedient (1) to reassess the lease classification for any expired or existing leases; (2) to reassess whether any expired or existing contracts are or contain leases and (3) to reassess initial direct costs. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases and to assess the impairment of its right-of-use assets. While lease classification remained unchanged, hindsight resulted in generally shorter accounting lease terms and useful lives of the corresponding right of use assets. The hindsight analysis also resulted in an approximate negative impact on beginning retained earnings of $7,000 , related to the impairment of a right-of-use asset at the Company's New Orleans facility. The Company elected the transitional practical expedient for existing or expired land easements, allowing the Company to elect not to assess whether those land easements are, or contain, leases in accordance with ASC 842. The Company also elected the practical expedient to adjust the carrying amount of the right-of-use assets for the unfavorable lease liability previously recognized on the balance sheet. Additionally, the Company made an accounting policy election that keeps leases with an initial term of 12 months or less off of the balance sheet and resulted in recognizing those lease payments in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Refer to "Note 9 - Leases" for further detail. On August 28, 2017, the FASB issued ASU 2017-12, which amends the hedge accounting recognition and presentation requirements in ASC 815 to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. For public business entities, the amendments in ASU 2017-12 are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. T he Company believes that the ASU 2017-12 will allow more of its derivative contracts to qualify for hedge accounting elections. The Company adopted ASU 2017-12 effective January 1, 2019, and changes in fair value of derivatives continue to be recognized in current period earnings for the three months ended March 31, 2019. On November 7, 2018, the FASB issued ASU 2018-16, which permits entities to use the Overnight Index Swap ("OIS") Rate based on Secured Overnight Financing Rate ("SOFR") as an eligible benchmark interest rate during the early stages of the transition from LIBOR to SOFR. For public business entities, the amendments in ASU 2018-16 are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company's adoption of ASU 2018-16 did not have a material impact on its consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, which amends the Board's guidance on the impairment of financial instruments. The ASU 2016-13 adds to U.S. GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under this new guidance, an entity recognizes as an allowance its estimate of expected credit losses. For public companies, the ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance, but does not expect it to have any material impact on its consolidated financial statements. On August 28, 2018, the FASB issued ASU 2018-13, which changes the fair value measurement disclosure requirements of ASC 820. ASU 2018-13 eliminates or modifies certain disclosure requirements of ASC 820 and requires new disclosures relating to changes in unrealized gains or losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the applicable reporting period. ASU 2018-13 also explicitly requires entities to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. The Company is evaluating the impact of this guidance on its consolidated financial statements, but does not expect the impact to be significant. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Restricted Cash | See the table below for reconciliation of "Cash, Cash Equivalents and Restricted Cash" in regards to the Condensed Consolidated Statements of Cash Flows: March 31, 2019 March 31, 2018 Cash and cash equivalents $ 123,062 $ 69,290 Restricted cash 3,000 — Total cash, cash equivalents and restricted cash in the Condensed Statements of Cash Flows $ 126,062 $ 69,290 |
Disaggregation of Revenue | The following table depicts the disaggregation of revenue according to product line and segment: Reportable Segments Three months ended March 31, 2019 Biomass-based Services Corporate Intersegment Consolidated Biomass-based diesel sales, net of BTC related amount due to customers of $0 $ 399,632 $ — $ — $ (85,520 ) $ 314,112 Petroleum diesel sales — — 83,903 — 83,903 Other biomass-based diesel revenue 57,191 — — — 57,191 Separated RIN sales 22,463 — — — 22,463 Other revenues — 19,583 — (19,511 ) 72 Total revenues from contracts with customers $ 479,286 $ 19,583 $ 83,903 $ (105,031 ) $ 477,741 Biomass-based diesel government incentives 468 — — — 468 Total revenues $ 479,754 $ 19,583 $ 83,903 $ (105,031 ) $ 478,209 Three months ended March 31, 2018 Biomass-based Diesel Services Corporate and other Intersegment Revenues Consolidated Total Biomass-based diesel sales, net of BTC related amount due to customers of $144,944 $ 166,191 $ — $ 3,579 $ (17,683 ) $ 152,087 Petroleum diesel sales — — 70,964 — 70,964 Other biomass-based diesel revenue 51,710 — — — 51,710 Separated RIN sales 47,179 — — — 47,179 Other revenues — 35,215 — (34,438 ) 777 Total revenues from contracts with customers $ 265,080 $ 35,215 $ 74,543 $ (52,121 ) $ 322,717 Biomass-based diesel government incentives 365,285 — — — 365,285 Total revenues $ 630,365 $ 35,215 $ 74,543 $ (52,121 ) $ 688,002 |
Contract Balances | Significant changes to the contract liabilities during the three months ended March 31, 2019 and 2018 are as follows: January 1, 2019 Cash receipts Less: Impact on Other March 31, 2019 Deferred revenue $ 300 $ 28,658 $ 15,643 $ — $ 13,315 January 1, 2018 Cash receipts Less: Impact on Other March 31, 2018 Deferred revenue $ 2,218 $ 10,507 $ 10,985 $ — $ 1,740 Payables to customers related to BTC — — (144,944 ) 5,832 150,776 $ 2,218 $ 10,507 $ (133,959 ) $ 5,832 $ 152,516 The following table provides information about receivables and contract liabilities from contracts with customers: March 31, 2019 December 31, 2018 Accounts receivable $ 104,989 $ 74,551 Short-term contract liabilities (deferred revenue) $ (13,315 ) $ (300 ) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | The following table summarizes the Company's investments in marketable securities: March 31, 2019 Maturity Gross Amortized Cost Total Unrealized Gains Total Unrealized Losses Fair Value Commercial paper Within one year $ 8,485 $ — $ (1 ) $ 8,484 Corporate bonds Within one year 8,998 — — 8,998 Total $ 17,483 $ — $ (1 ) $ 17,482 December 31, 2018 Maturity Gross Amortized Cost Total Unrealized Gains Total Unrealized Losses Fair Value Commercial paper Within one year $ 22,886 $ — $ (14 ) $ 22,872 Corporate bonds Within one year 28,074 — (14 ) 28,060 Total $ 50,960 $ — $ (28 ) $ 50,932 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: March 31, 2019 December 31, 2018 Raw materials $ 62,319 $ 40,348 Work in process 3,967 3,840 Finished goods 154,280 124,712 Total $ 220,566 $ 168,900 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Loss on Discontinued Operations and Balance Sheet Reconciliation | Loss on Discontinued Operations: For the three months ended March 31, 2019 2018 Other revenues $ 1,786 $ 1,250 Other costs of goods sold (2,200 ) (1,138 ) Research and development expense (1,598 ) (5,564 ) Other income (expense), net (5 ) 1,997 Pre-tax loss from discontinued operations (2,017 ) (3,455 ) Income tax expense — — Loss on discontinued operations $ (2,017 ) $ (3,455 ) Reconciliation of the Carrying Amounts of Major Classes of Assets and Liabilities Included in Assets and Liabilities Held for Sale: March 31, 2019 December 31, 2018 Machinery and equipment, net $ 824 $ 824 In-process research and development 13,652 13,652 Impairment recognized on assets classified as held for sale (11,226 ) (11,226 ) Total assets classified as held for sale $ 3,250 $ 3,250 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expense and Other Assets | Prepaid expense and other assets consist of the following: March 31, 2019 December 31, 2018 Commodity derivatives and related collateral, net $ 7,367 $ 13,799 Prepaid expenses 15,264 17,187 Deposits 1,963 2,123 RIN inventory 3,061 2,000 Taxes receivable 2,365 2,991 Other 3,381 3,069 Total $ 33,401 $ 41,169 |
Summary of Other Noncurrent Assets | Other noncurrent assets consist of the following: March 31, 2019 December 31, 2018 Investments $ 13,199 $ 13,053 Spare parts inventory 2,680 2,680 Catalysts 1,810 1,989 Deposits 381 381 Other 2,607 3,167 Total $ 20,677 $ 21,270 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible assets | Intangible assets consist of the following: March 31, 2019 Cost Accumulated Amortization Net Raw material supply agreement $ 6,230 $ (2,986 ) $ 3,244 Renewable diesel technology 8,300 (2,674 ) 5,626 Ground lease 200 (160 ) 40 Acquired customer relationships 4,747 (1,049 ) 3,698 Trademarks 704 — 704 Total intangible assets $ 20,181 $ (6,869 ) $ 13,312 December 31, 2018 Cost Accumulated Amortization Net Raw material supply agreement $ 6,230 $ (2,866 ) $ 3,364 Renewable diesel technology 8,300 (2,536 ) 5,764 Ground lease 200 (157 ) 43 Acquired customer relationships 4,747 (976 ) 3,771 Trademarks 704 — 704 Total intangible assets $ 20,181 $ (6,535 ) $ 13,646 |
Estimated Amortization Expense | The estimated intangible asset amortization expense for the remainder of 2019 through 2024 and thereafter is as follows: April 1, 2019 through December 31, 2019 $ 1,451 2020 1,672 2021 1,678 2022 1,671 2023 1,678 2024 1,685 2025 and thereafter 3,477 Total $ 13,312 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Company's Borrowings | The following table shows the Company’s term debt: March 31, 2019 December 31, 2018 4.00% Convertible Senior Notes, $96,300 face amount, due in June 2036 $ 75,940 $ 75,477 2.75% Convertible Senior Notes, $67,380 face amount, due in June 2019 66,849 66,361 REG Danville term loan, secured, variable interest rate of LIBOR plus 4%, due in July 2022 8,548 8,964 REG Ralston term loan, variable interest rate of Prime Rate plus 2.25%, due in October 2025 18,035 18,948 REG Grays Harbor term loan, variable interest of minimum of 3.5% or Prime Rate plus 0.25%, due in May 2022 8,521 8,828 REG Capital term loan, fixed interest rate of 3.99%, due in January 2028 7,121 7,185 Other 47 54 Total term debt before debt issuance costs 185,061 185,817 Less: Current portion of long-term debt 150,339 149,006 Less: Debt issuance costs (net of accumulated amortization of $4,047 and $3,813, respectively) 3,217 3,390 Total long-term debt $ 31,505 $ 33,421 |
Revolving Line of Credit | The following table shows the Company's lines of credit: March 31, 2019 December 31, 2018 Amount outstanding under lines of credit $ 102,612 $ 14,250 Maximum available to be borrowed under lines of credit $ 58,348 $ 114,889 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments by Balance Sheet Location | The following table sets forth the fair value of the Company's commodity contract derivatives and amounts that offset within the Condensed Consolidated Balance Sheets: March 31, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Gross amounts of derivatives recognized at fair value $ 3,899 $ 1,019 $ 11,843 $ 1,799 Cash collateral 4,487 — 3,755 — Total gross amount recognized 8,386 1,019 15,598 1,799 Gross amounts offset (1,019 ) (1,019 ) (1,799 ) (1,799 ) Net amount reported in the condensed consolidated balance sheets $ 7,367 $ — $ 13,799 $ — |
Summary of Derivative Financial Instruments by Location of Gain (Loss) | The following table sets forth the commodity contract derivatives gains and (losses) included in the Condensed Consolidated Statements of Operations: Location of Gain (Loss) Three Months Three Months Commodity derivatives Cost of goods sold – Biomass-based diesel $ (22,739 ) $ (2,438 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases, Operating [Abstract] | |
Lease Expense and Effect on Cash Flows | The following table summarizes information about the Company's lease expense for the three months ended March 31, 2019: 2019 Lease expense: Operating lease expense $ 5,473 Variable lease expenses 1,764 Short-term and other lease expenses 426 Total lease expense $ 7,663 |
Schedule of Maturities of Operating Leases | For each of the next five calendar years and thereafter, future minimum lease payments and scheduled maturities under operating leases that have initial or remaining noncancelable lease terms in excess of one year are as follows: Total payments Less: Discount Operating lease obligation April 1, 2019 through December 31, 2019 $ 14,830 $ 1,667 $ 13,163 2020 15,107 1,565 13,542 2021 11,362 1,003 10,359 2022 3,525 675 2,850 2023 2,759 552 2,207 2024 1,713 472 1,241 2025 and thereafter 11,510 2,383 9,127 Total $ 60,806 $ 8,317 $ 52,489 |
Future minimum lease payments under operating leases | As the Company has not restated prior-year information for its adoption of ASC Topic 842, the following presents the Company's future minimum lease payments for operating leases under ASC Topic 840 at December 31, 2018: Total Payments 2019 $ 20,326 2020 14,063 2021 10,643 2022 3,162 2023 2,406 Thereafter 13,736 Total minimum payments $ 64,336 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets (Liabilities) Measured at Fair Value | A summary of assets (liabilities) measured at fair value is as follows: As of March 31, 2019 Total Level 1 Level 2 Level 3 Commercial paper $ 8,484 $ — $ 8,484 $ — Corporate bonds $ 8,998 — 8,998 — Commodity contract derivatives $ 2,880 508 2,372 — Contingent considerations for acquisitions $ (6,849 ) — — (6,849 ) $ 13,513 $ 508 $ 19,854 $ (6,849 ) As of December 31, 2018 Total Level 1 Level 2 Level 3 Commercial paper $ 22,872 $ — $ 22,872 $ — Corporate bonds $ 28,060 — 28,060 — Commodity contract derivatives $ 10,044 499 9,545 — Contingent considerations for acquisitions $ (9,861 ) — — (9,861 ) $ 51,115 $ 499 $ 60,477 $ (9,861 ) |
Liabilities Measured at Fair Value on a Recurring Basis | The following is a reconciliation of the beginning and ending balances for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Contingent Consideration for Acquisitions 2019 2018 Balance at beginning of period, January 1 $ 9,861 $ 20,485 Change in estimates included in earnings 304 459 Settlements (3,316 ) (2,813 ) Balance at end of period, March 31 $ 6,849 $ 18,131 |
Estimated Fair Values of the Company's Financial Instruments | The estimated fair values of the Company’s financial instruments, which are not recorded at fair value, are as follows: As of March 31, 2019 As of December 31, 2018 Asset (Liability) Fair Value Asset (Liability) Fair Value Financial liabilities: Debt and lines of credit $ (287,673 ) $ (450,946 ) $ (200,067 ) $ (410,564 ) |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Potentially Dilutive Weighted Average Securities Excluded From the Calculation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders | The following potentially dilutive weighted average securities were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders during the periods presented, as the effect was anti-dilutive: Three Months Three Months Stock appreciation rights 1,012,097 1,006,849 2019 Convertible Senior Notes 2,624,215 5,377,690 2036 Convertible Senior Notes 3,737,641 13,545,060 Total 7,373,953 19,929,599 |
Calculation of Diluted Net Income (Loss) Per Share | The following table presents the calculation of diluted net income (loss) per share attributable to common stockholders: Three Months Three Months Net income (loss) from continuing operations attributable to the Company’s common stockholders - Basic $ (41,387 ) $ 212,608 Plus (less): effect of participating securities — 5,236 Net income (loss) attributable to common stockholders (41,387 ) 217,844 Less: effect of participating securities — (5,236 ) Net income (loss) from continuing operations attributable to the Company's common stockholders - Diluted $ (41,387 ) $ 212,608 Net loss from discontinued operations attributable to the Company's common stockholders - Basic and Diluted $ (2,017 ) $ (3,455 ) Net income (loss) attributable to the Company's common stockholders - Basic $ (43,404 ) $ 209,238 Plus (less): effect of participating securities — 5,151 Net income (loss) attributable to common stockholders (43,404 ) 214,389 Less: effect of participating securities — (5,151 ) Net income (loss) attributable to the Company's common stockholders - Diluted $ (43,404 ) $ 209,238 Shares: Weighted-average shares used to compute basic net income (loss) per share 37,353,352 38,819,443 Adjustment to reflect conversion of convertible notes — 561,665 Adjustment to reflect stock appreciation right conversions — 102,979 Weighted-average shares used to compute diluted net income (loss) per share 37,353,352 39,484,087 Net income (loss) per share attributable to common stockholders - Diluted Continuing operations $ (1.11 ) $ 5.38 Discontinued operations $ (0.05 ) $ (0.09 ) Diluted net income (loss) $ (1.16 ) $ 5.30 |
Reportable Segments and Geogr_2
Reportable Segments and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Significant Items by Reportable Segment | The following table represents the significant items by reportable segment: Three Months Three Months Net sales from continuing operations: Biomass-based Diesel $ 479,754 $ 630,365 Services 19,583 35,215 Corporate and Other 83,903 74,543 Intersegment revenues (105,031 ) (52,121 ) $ 478,209 $ 688,002 Income (loss) from continuing operations before income taxes: Biomass-based Diesel $ (40,278 ) $ 215,529 Services (869 ) 5,024 Corporate and Other (670 ) (3,914 ) $ (41,817 ) $ 216,639 Depreciation and amortization expense, net: Biomass-based Diesel $ 12,024 $ 8,037 Services 630 329 Corporate and Other 886 741 $ 13,540 $ 9,107 Cash paid for purchases of property, plant and equipment: Biomass-based Diesel $ 7,688 $ 15,603 Services 547 851 Corporate and Other — 33 $ 8,235 $ 16,487 March 31, 2019 December 31, 2018 Goodwill: Services $ 16,080 $ 16,080 Assets: Biomass-based Diesel $ 1,026,539 $ 914,843 Services 55,926 63,720 Corporate and Other 407,564 379,658 Intersegment eliminations (306,880 ) (254,375 ) Assets held for sale 3,250 3,250 $ 1,186,399 $ 1,107,096 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following geographic data include net sales attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant and equipment. Three Months Three Months Net revenues: United States $ 438,605 $ 639,674 Germany 39,468 46,356 Other Foreign 136 1,972 Non-United States 39,604 48,328 $ 478,209 $ 688,002 March 31, 2019 December 31, 2018 Long-lived assets: United States $ 569,474 $ 571,045 Germany 18,331 18,972 Other Foreign 666 706 $ 588,471 $ 590,723 |
Basis of Presentation and Nat_2
Basis of Presentation and Nature of the Business (Details) gal in Millions | 3 Months Ended |
Mar. 31, 2019facilitygal | |
Class of Stock [Line Items] | |
Number of biorefineries | 14 |
Number of operating biomass-based diesel production facilities | 13 |
Production capacity per year | gal | 520 |
Number of fermentation facilities | 1 |
Number of multi-feedstock capable plants | 10 |
North America | |
Class of Stock [Line Items] | |
Number of biorefineries | 12 |
Europe | |
Class of Stock [Line Items] | |
Number of biorefineries | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) | Jun. 02, 2016USD ($) | Mar. 31, 2019USD ($)renewable_identification_number | Mar. 31, 2018USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2016 | Jan. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2014USD ($) |
Business Acquisition [Line Items] | |||||||||||
Stock Repurchased During Period, Shares | shares | 641,601 | ||||||||||
Restricted cash | $ 3,000,000 | $ 0 | $ 3,000,000 | ||||||||
Biomass-based diesel government incentives | 468,000 | 365,285,000 | |||||||||
Shares covered by rebalancing call options | 100.00% | ||||||||||
Retained earnings | (377,324,000) | (427,244,000) | |||||||||
Accounting Standards Update 2016-02 | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Retained earnings | $ 7,000,000 | ||||||||||
December 2017 Program | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Stock Repurchased During Period, Value | 7,828,000 | ||||||||||
Security repurchase program, amount authorized to be repurchased | $ 75,000,000 | ||||||||||
June 2018 Program | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Security repurchase program, amount authorized to be repurchased | $ 75,000,000 | ||||||||||
January 2019 Program | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Security repurchase program, amount authorized to be repurchased | $ 75,000,000 | ||||||||||
2036 Senior Convertible Notes Repurchases | Convertible Notes | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Face amount | $ 152,000,000 | $ 152,000,000 | |||||||||
Interest rate | 4.00% | 4.00% | |||||||||
Convertible Notes Repurchases | $ 147,118,000 | ||||||||||
Principal amount of debt repurchased | $ 0 | 0 | |||||||||
2019 Senior Convertible Notes | Convertible Notes | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Face amount | $ 143,800,000 | ||||||||||
Interest rate | 2.75% | 2.75% | |||||||||
Convertible Notes Repurchases | $ 6,689,000 | 6,689,000 | |||||||||
Principal amount of debt repurchased | $ 6,311,000 | $ 6,311,000 | $ 6,311,000 | ||||||||
Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
RINs per gallon | renewable_identification_number | 1.5 | ||||||||||
Allowed RINs per gallon | renewable_identification_number | 0 | ||||||||||
Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
RINs per gallon | renewable_identification_number | 1.7 | ||||||||||
Allowed RINs per gallon | renewable_identification_number | 2.5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 123,062 | $ 123,575 | $ 69,290 | |
Restricted cash | 3,000 | 3,000 | 0 | |
Total cash, cash equivalents and restricted cash in the Condensed Statements of Cash Flows | $ 126,062 | $ 126,575 | $ 69,290 | $ 77,627 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ 477,741 | $ 322,717 |
Biomass-based diesel government incentives | 468 | 365,285 |
Total revenues | 478,209 | 688,002 |
Biomass-based Diesel | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 479,286 | 265,080 |
Biomass-based diesel government incentives | 468 | 365,285 |
Total revenues | 479,754 | 630,365 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 19,583 | 35,215 |
Biomass-based diesel government incentives | 0 | 0 |
Total revenues | 19,583 | 35,215 |
Corporate and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 83,903 | 74,543 |
Biomass-based diesel government incentives | 0 | 0 |
Total revenues | 83,903 | 74,543 |
Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | (105,031) | (52,121) |
Biomass-based diesel government incentives | 0 | 0 |
Total revenues | (105,031) | (52,121) |
Biomass-based Diesel | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 314,112 | 152,087 |
Biomass-based Diesel | Biomass-based Diesel | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 399,632 | 166,191 |
BTC due to customers | 0 | 144,944 |
Biomass-based Diesel | Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Biomass-based Diesel | Corporate and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 3,579 |
Biomass-based Diesel | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | (85,520) | (17,683) |
Petroleum diesel sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 83,903 | 70,964 |
Petroleum diesel sales | Biomass-based Diesel | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Petroleum diesel sales | Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Petroleum diesel sales | Corporate and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 83,903 | 70,964 |
Petroleum diesel sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other biomass-based diesel revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 57,191 | 51,710 |
Other biomass-based diesel revenue | Biomass-based Diesel | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 57,191 | 51,710 |
Other biomass-based diesel revenue | Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other biomass-based diesel revenue | Corporate and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other biomass-based diesel revenue | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Separated RIN sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 22,463 | 47,179 |
Separated RIN sales | Biomass-based Diesel | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 22,463 | 47,179 |
Separated RIN sales | Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Separated RIN sales | Corporate and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Separated RIN sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 72 | 777 |
Other revenues | Biomass-based Diesel | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other revenues | Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 19,583 | 35,215 |
Other revenues | Corporate and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other revenues | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ (19,511) | $ (34,438) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Contract Balances) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 104,989 | $ 74,551 |
Short-term contract liabilities (deferred revenue) | $ (13,315) | $ (300) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Significant Changes in Contract Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Deferred revenue | ||
Beginning Balance | $ 300 | $ 2,218 |
Cash receipts (Payments) | 28,658 | 10,507 |
Less: Impact on Revenue | 15,643 | 10,985 |
Other | 0 | 0 |
Ending Balance | $ 13,315 | 1,740 |
Payables to customers related to BTC | ||
Beginning Balance | 0 | |
Cash receipts (Payments) | 0 | |
Less: Impact on Revenue | (144,944) | |
Other | 5,832 | |
Ending Balance | 150,776 | |
Total | ||
Beginning Balance | 2,218 | |
Cash receipts (Payments) | 10,507 | |
Less: Impact on Revenue | (133,959) | |
Other | 5,832 | |
Ending Balance | $ 152,516 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Marketable Securities [Line Items] | ||
Gross Amortized Cost | $ 17,483 | $ 50,960 |
Total Unrealized Gains | 0 | 0 |
Total Unrealized Losses | (1) | (28) |
Fair Value | 17,482 | 50,932 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Gross Amortized Cost | 8,485 | 22,886 |
Total Unrealized Gains | 0 | 0 |
Total Unrealized Losses | (1) | (14) |
Fair Value | 8,484 | 22,872 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Gross Amortized Cost | 8,998 | 28,074 |
Total Unrealized Gains | 0 | 0 |
Total Unrealized Losses | 0 | (14) |
Fair Value | $ 8,998 | $ 28,060 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventories | ||
Raw materials | $ 62,319 | $ 40,348 |
Work in process | 3,967 | 3,840 |
Finished goods | 154,280 | 124,712 |
Total | $ 220,566 | $ 168,900 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax loss from discontinued operations | $ (2,017) | $ (3,455) | |
Loss on discontinued operations | (2,017) | (3,455) | |
REG Life Sciences | Assets held for sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment loss | $ (11,226) | ||
Other revenues | 1,786 | 1,250 | |
Other costs of goods sold | (2,200) | (1,138) | |
Research and development expense | (1,598) | (5,564) | |
Other income (expense), net | (5) | 1,997 | |
Pre-tax loss from discontinued operations | (2,017) | (3,455) | |
Income tax expense | 0 | 0 | |
Loss on discontinued operations | (2,017) | $ (3,455) | |
Machinery and equipment, net | 824 | 824 | |
In-process research and development | 13,652 | 13,652 | |
Impairment recognized on assets classified as held for sale | (11,226) | (11,226) | |
Total assets classified as held for sale | $ 3,250 | $ 3,250 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Summary of prepaid expense and other assets | ||
Commodity derivatives and related collateral, net | $ 7,367 | $ 13,799 |
Prepaid expenses | 15,264 | 17,187 |
Deposits | 1,963 | 2,123 |
RIN inventory | 3,061 | 2,000 |
Taxes receivable | 2,365 | 2,991 |
Other | 3,381 | 3,069 |
Total | $ 33,401 | $ 41,169 |
Other Assets (Details Textual)
Other Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
RIN | ||
Inventory [Line Items] | ||
Inventory adjustment | $ 0 | $ 630 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Cost Method Investments | $ 13,199 | $ 13,053 |
Spare parts inventory | 2,680 | 2,680 |
Catalysts | 1,810 | 1,989 |
Deposits | 381 | 381 |
Other | 2,607 | 3,167 |
Total | $ 20,677 | $ 21,270 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 20,181 | $ 20,181 |
Accumulated Amortization | (6,869) | (6,535) |
Net | 13,312 | 13,646 |
Raw material supply agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 6,230 | 6,230 |
Accumulated Amortization | (2,986) | (2,866) |
Net | 3,244 | 3,364 |
Renewable diesel technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 8,300 | 8,300 |
Accumulated Amortization | (2,674) | (2,536) |
Net | 5,626 | 5,764 |
Ground lease | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 200 | 200 |
Accumulated Amortization | (160) | (157) |
Net | 40 | 43 |
Acquired customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,747 | 4,747 |
Accumulated Amortization | (1,049) | (976) |
Net | 3,698 | 3,771 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 704 | 704 |
Accumulated Amortization | 0 | 0 |
Net | $ 704 | $ 704 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 334 | $ 324 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Estimated amortization expense | ||
April 1, 2019 through December 31, 2019 | $ 1,451 | |
2019 | 1,672 | |
2020 | 1,678 | |
2021 | 1,671 | |
2022 | 1,678 | |
2023 | 1,685 | |
2025 and thereafter | 3,477 | |
Net | $ 13,312 | $ 13,646 |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Accumulated amortization on debt issuance costs | $ 4,047,000 | $ 3,813,000 |
Company's borrowings | ||
Total term debt before debt issuance costs | 185,061,000 | 185,817,000 |
Less: Current portion of long-term debt | 150,339,000 | 149,006,000 |
Less: Debt issuance costs (net of accumulated amortization of $4,047 and $3,813, respectively) | 3,217,000 | 3,390,000 |
Total long-term debt | $ 31,505,000 | 33,421,000 |
4.00% Convertible Senior Notes | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 4.00% | |
Face amount | $ 96,300,000 | |
Company's borrowings | ||
Total term debt before debt issuance costs | $ 75,940,000 | 75,477,000 |
2.75% Convertible Senior Notes | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 2.75% | |
Face amount | $ 67,380,000 | |
Company's borrowings | ||
Total term debt before debt issuance costs | $ 66,849,000 | 66,361,000 |
REG Danville term loan | ||
Line of Credit Facility [Line Items] | ||
Description of variable rate basis | LIBOR plus 4% per annum | |
Company's borrowings | ||
Total term debt before debt issuance costs | $ 8,548,000 | 8,964,000 |
REG Danville term loan | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 4.00% | |
REG Newton term loan | ||
Line of Credit Facility [Line Items] | ||
Description of variable rate basis | LIBOR plus 4% per annum | |
REG Newton term loan | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 4.00% | |
REG Ralston term loan | ||
Line of Credit Facility [Line Items] | ||
Description of variable rate basis | Prime Rate plus 2.25% | |
Company's borrowings | ||
Total term debt before debt issuance costs | $ 18,035,000 | 18,948,000 |
REG Ralston term loan | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.25% | |
REG Mason City term loan | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 5.00% | |
REG Grays Harbor term loan | ||
Line of Credit Facility [Line Items] | ||
Description of variable rate basis | Prime Rate plus 0.25% | |
Basis spread on variable rate | 3.50% | |
Company's borrowings | ||
Total term debt before debt issuance costs | $ 8,521,000 | 8,828,000 |
REG Grays Harbor term loan | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.25% | |
REG Capital term loan | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 3.99% | |
Company's borrowings | ||
Total term debt before debt issuance costs | $ 7,121,000 | 7,185,000 |
Other | ||
Company's borrowings | ||
Total term debt before debt issuance costs | $ 47,000 | $ 54,000 |
Debt (Details Textual)
Debt (Details Textual) | Jun. 02, 2016USD ($)d$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | ||||||
Debt liability component | $ 185,061,000 | $ 185,817,000 | ||||
Convertible Notes | 2019 Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 143,800,000 | |||||
Interest rate | 2.75% | 2.75% | ||||
Initial conversion rate | 75.3963 | |||||
Initial conversion price (in dollars per share) | $ / shares | $ 13.26 | |||||
Principal amount of debt repurchased | $ 6,311,000 | $ 6,311,000 | 6,311,000 | |||
Net proceeds from debt issuance | 6,689,000 | 6,689,000 | ||||
Convertible Notes | 2036 Senior Convertible Notes Repurchases | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 152,000,000 | $ 152,000,000 | ||||
Interest rate | 4.00% | 4.00% | ||||
Percentage of convertible senior notes principal required for repurchase | 100.00% | |||||
Initial conversion rate | 92.8074 | |||||
Initial conversion price (in dollars per share) | $ / shares | $ 10.78 | |||||
Principal amount of debt repurchased | 0 | $ 0 | ||||
Convertible debt instrument, closing price minimum | $ / shares | $ 14.01 | |||||
Convertible debt instrument, threshold percentage of stock price trigger | 130.00% | |||||
Convertible debt instrument, threshold trading days | d | 20 | |||||
Convertible debt instrument, threshold consecutive trading days | d | 30 | |||||
Net proceeds from debt issuance | $ 147,118,000 | |||||
Fees and offering expenses | $ 4,882,000 | |||||
Effective interest rate | 2.45% | |||||
Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 67,380,000 | |||||
Interest rate | 2.75% | |||||
Debt liability component | $ 66,849,000 | 66,361,000 | ||||
REG Ralston term loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt liability component | $ 18,035,000 | 18,948,000 | ||||
REG Ralston term loan | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
REG Danville | ||||||
Debt Instrument [Line Items] | ||||||
Debt liability component | $ 8,548,000 | 8,964,000 | ||||
REG Danville | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 4.00% | |||||
REG Capital term loan | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.99% | |||||
Debt liability component | $ 7,121,000 | $ 7,185,000 | ||||
BNP Master Banking Facility Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | $ 25,000,000 | |||||
BNP Master Banking Facility Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 1.50% | |||||
BNP Master Banking Facility Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 4.39% | |||||
Wells Fargo Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Additional Increase in maximum borrowing capacity | $ 150,000,000 | |||||
Line of credit facility limitation amount | $ 40,000,000 | |||||
Debt instrument, variable rate minimum | 0.00% | |||||
Percentage required of total current revolving loan commitments | 10.00% | |||||
Amount required of total current revolving loan commitments | $ 15,000,000 | |||||
Wells Fargo Revolver | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR rate margin | 1.75% | |||||
Fixed charge coverate ratio | 1 | |||||
Wells Fargo Revolver | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility limitation amount | $ 50,000,000 | |||||
LIBOR rate margin | 2.25% | |||||
Fixed charge coverate ratio | 1 |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Amount outstanding under lines of credit | $ 102,612 | $ 14,250 |
Maximum available to be borrowed under lines of credit | $ 58,348 | $ 114,889 |
Derivative Instruments (Details
Derivative Instruments (Details Textual) lb in Millions, gal in Millions, BTU in Millions | 3 Months Ended |
Mar. 31, 2019BTUlbgal | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Heating oil covered under the open commodity derivative contracts (in gallons) | gal | 92 |
Soybean oil covered under the open commodity derivative contracts (in pounds) | lb | 76 |
Natural gas covered under the open commodity derivative contracts (in BTUs) | BTU | 2 |
Leases (Lease Expense) (Details
Leases (Lease Expense) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 5,473 |
Variable lease expenses | 1,764 |
Short-term and other lease expenses | 426 |
Total lease expense | $ 7,663 |
Derivative Instruments (Detai_2
Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Gross amounts of derivatives recognized at fair value | $ 3,899 | $ 11,843 |
Cash collateral | 4,487 | 3,755 |
Total gross amount recognized | 8,386 | 15,598 |
Gross amounts offset | (1,019) | (1,799) |
Net amount reported in the condensed consolidated balance sheets | 7,367 | 13,799 |
Liabilities | ||
Gross amounts of derivatives recognized at fair value | 1,019 | 1,799 |
Cash collateral | 0 | 0 |
Total gross amount recognized | 1,019 | 1,799 |
Gross amounts offset | (1,019) | (1,799) |
Net amount reported in the condensed consolidated balance sheets | $ 0 | $ 0 |
Leases (Details Textual)
Leases (Details Textual) | Mar. 31, 2019 |
Leases, Operating [Abstract] | |
Weighted average remaining lease term | 5 years 9 months 22 days |
Weighted average discount rate | 4.85% |
Derivative Instruments (Detai_3
Derivative Instruments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cost of goods sold – Biomass-based diesel | Commodity derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (losses) included in the condensed consolidated statement of operations | $ (22,739) | $ (2,438) |
Leases (Maturity) (Details)
Leases (Maturity) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Total payments | |
April 1, 2019 through December 31, 2019 | $ 14,830 |
2020 | 15,107 |
2021 | 11,362 |
2022 | 3,525 |
2023 | 2,759 |
2024 | 1,713 |
2025 and thereafter | 11,510 |
Total | 60,806 |
Less: Discount | |
April 1, 2019 through December 31, 2019 | 1,667 |
2020 | 1,565 |
2021 | 1,003 |
2022 | 675 |
2023 | 552 |
2024 | 472 |
2025 and thereafter | 2,383 |
Total | 8,317 |
Operating lease obligation | |
April 1, 2019 through December 31, 2019 | 13,163 |
2020 | 13,542 |
2021 | 10,359 |
2022 | 2,850 |
2023 | 2,207 |
2024 | 1,241 |
2025 and thereafter | 9,127 |
Total | $ 52,489 |
Leases (Future Minimum Payments
Leases (Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 20,326 |
2020 | 14,063 |
2021 | 10,643 |
2022 | 3,162 |
2023 | 2,406 |
Thereafter | 13,736 |
Total minimum payments | $ 64,336 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | $ 13,513 | $ 51,115 |
Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 508 | 499 |
Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 19,854 | 60,477 |
Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | (6,849) | (9,861) |
Commercial paper | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 8,484 | 22,872 |
Commercial paper | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Commercial paper | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 8,484 | 22,872 |
Commercial paper | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Corporate bonds | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 8,998 | 28,060 |
Corporate bonds | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Corporate bonds | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 8,998 | 28,060 |
Corporate bonds | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Commodity contract derivatives | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 2,880 | 10,044 |
Commodity contract derivatives | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 508 | 499 |
Commodity contract derivatives | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 2,372 | 9,545 |
Commodity contract derivatives | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Contingent considerations for acquisitions | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | (6,849) | (9,861) |
Contingent considerations for acquisitions | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Contingent considerations for acquisitions | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Contingent considerations for acquisitions | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | $ (6,849) | $ (9,861) |
Fair Value Measurement (Detai_2
Fair Value Measurement (Details 1) - Contingent considerations for acquisitions - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 9,861 | $ 20,485 |
Change in estimates included in earnings | 304 | 459 |
Settlements | (3,316) | (2,813) |
Ending balance | $ 6,849 | $ 18,131 |
Fair Value Measurement (Detai_3
Fair Value Measurement (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Asset (Liability) Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt and lines of credit | $ (287,673) | $ (200,067) |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt and lines of credit | $ (450,946) | $ (410,564) |
Fair Value Measurement (Detai_4
Fair Value Measurement (Details Textual) - Discount Rate | Mar. 31, 2019 |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 5.80% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 12.50% |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 7,373,953 | 19,929,599 |
2019 Convertible Senior Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 2,624,215 | 5,377,690 |
2036 Convertible Senior Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 3,737,641 | 13,545,060 |
Stock appreciation rights | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 1,012,097 | 1,006,849 |
Net Income (Loss) Per Share (_2
Net Income (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income (loss) from continuing operations attributable to the Company’s common stockholders - Basic | $ (41,387) | $ 212,608 |
Plus (less): effect of participating securities | 0 | 5,236 |
Net income (loss) attributable to common stockholders | (41,387) | 217,844 |
Less: effect of participating securities | 0 | (5,236) |
Net income (loss) from continuing operations attributable to the Company's common stockholders - Diluted | (41,387) | 212,608 |
Net loss from discontinued operations attributable to the Company's common stockholders - Basic and Diluted | (2,017) | (3,455) |
Net income (loss) attributable to the Company's common stockholders - Basic | (43,404) | 209,238 |
Plus (less): effect of participating securities | 0 | 5,151 |
Net income (loss) attributable to common stockholders | (43,404) | 214,389 |
Less: effect of participating securities | 0 | (5,151) |
Net income (loss) attributable to the Company's common stockholders - Diluted | $ (43,404) | $ 209,238 |
Shares: | ||
Weighted-average shares used to compute basic net income (loss) per share (in shares) | 37,353,352 | 38,819,443 |
Adjustment to reflect conversion of convertible notes (in shares) | 0 | 561,665 |
Adjustment to reflect stock appreciation right conversions (in shares) | 0 | 102,979 |
Weighted-average shares used to compute diluted net income (loss) per share (in shares) | 37,353,352 | 39,484,087 |
Net income (loss) per share attributable to common stockholders - Diluted | ||
Continuing operations (in dollars per share) | $ (1.11) | $ 5.38 |
Discontinued operations (in dollars per share) | (0.05) | (0.09) |
Diluted net income (loss) (in dollars per share) | $ (1.16) | $ 5.30 |
Reportable Segments and Geogr_3
Reportable Segments and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 478,209 | $ 688,002 | |
Income (loss) before income taxes | (41,817) | 216,639 | |
Depreciation and amortization expense, net | 13,540 | 9,107 | |
Cash paid for purchases of property, plant and equipment | 8,235 | 16,487 | |
Goodwill | 16,080 | $ 16,080 | |
Assets | 1,186,399 | 1,107,096 | |
Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (105,031) | (52,121) | |
Assets | (306,880) | (254,375) | |
Biomass-based Diesel | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 479,754 | 630,365 | |
Biomass-based Diesel | Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 479,754 | 630,365 | |
Income (loss) before income taxes | (40,278) | 215,529 | |
Depreciation and amortization expense, net | 12,024 | 8,037 | |
Cash paid for purchases of property, plant and equipment | 7,688 | 15,603 | |
Assets | 1,026,539 | 914,843 | |
Services | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 19,583 | 35,215 | |
Goodwill | 16,080 | 16,080 | |
Services | Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 19,583 | 35,215 | |
Income (loss) before income taxes | (869) | 5,024 | |
Depreciation and amortization expense, net | 630 | 329 | |
Cash paid for purchases of property, plant and equipment | 547 | 851 | |
Assets | 55,926 | 63,720 | |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 83,903 | 74,543 | |
Income (loss) before income taxes | (670) | (3,914) | |
Depreciation and amortization expense, net | 886 | 741 | |
Cash paid for purchases of property, plant and equipment | 0 | $ 33 | |
Assets | 407,564 | 379,658 | |
Assets held for sale | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 3,250 | $ 3,250 |
Reportable Segments and Geogr_4
Reportable Segments and Geographic Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 478,209 | $ 688,002 | |
Long-lived assets | 588,471 | $ 590,723 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 438,605 | 639,674 | |
Long-lived assets | 569,474 | 571,045 | |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 39,468 | 46,356 | |
Long-lived assets | 18,331 | 18,972 | |
Other Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 136 | 1,972 | |
Long-lived assets | 666 | $ 706 | |
Non-United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 39,604 | $ 48,328 |
Uncategorized Items - regi-2019
Label | Element | Value |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,516,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,516,000) |