| 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, 2019. 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 September 30, 2020 and 2019, current restricted cash was $3,000, representing pledges for outstanding letters of credit issued to support our operations. See the table below for reconciliation of "Cash, Cash Equivalents and Restricted Cash" in the Condensed Consolidated Statements of Cash Flows: September 30, 2020 September 30, 2019 Cash and cash equivalents $ 97,187 $ 64,093 Restricted cash 3,000 3,000 Total cash, cash equivalents and restricted cash in the Condensed Statements of Cash Flows $ 100,187 $ 67,093 Accounts Receivable Accounts receivable are carried at invoiced amount less allowance for doubtful accounts. Management estimates the allowance for doubtful accounts based on existing economic conditions, the financial conditions of customers and the amount and age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after reasonable collection attempts have been exhausted. September 30, 2020 December 31, 2019 Trade accounts receivable from customers (net of allowance for doubtful accounts of $1,613 and $1,001, respectively) $ 135,374 $ 185,156 BTC receivables from the government 52,482 672,627 Other trade receivables 4 1,139 Total $ 187,860 $ 858,922 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). The Company classifies its marketable securities as either current or long-term based on each instrument's underlying contractual maturity date. 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 allocated 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 September 30, 2020. 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 September 30, 2020 and December 31, 2019, 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. Goodwill Goodwill is tested for impairment annually as of July 31 or when impairment indicators exist. Goodwill is allocated and tested for impairment by reporting segments. At September 30, 2020 and 2019, the Company had approximately $16,080 of goodwill in the Services segment. As a result of the annual impairment test performed as of July 31, 2020, the Company determined that there were no indications of impairment related to the Services segment's goodwill. No impairment of goodwill was recorded during the three and nine months ended September 30, 2020 or 2019. Impairment of Long-lived Assets The Company tests its long-lived assets for recoverability when events or circumstances indicate that its carrying amount may not be recoverable. Significant assumptions used in the undiscounted cash flow analysis, when it is required, include the projected demand for biomass-based diesel based on annual renewable fuel volume obligations under the Renewable Fuel Standards ("RFS2"), the Company's capacity to meet that demand, the market price of biomass-based diesel and the cost of feedstock used in the manufacturing process. During the third quarter of 2020, the Company recorded impairment charges of $18,984 related to certain equipment where it was no longer probable that the assets will be utilized in future renewable diesel production expansions. In addition, the Company recorded impairment charges of $272 against certain biodiesel property, plant and equipment as the carrying amounts of these assets were deemed not recoverable given the assets' deteriorating physical conditions identified during the quarter. During the third quarter of 2019, the Company recorded impairment charges of $11,145 related to its New Boston facility's property, plant and equipment assets resulting from the closing of the plant and the unlikelihood that the plant will be reopened in the near future due to the deteriorating economic conditions uniquely facing the plant. The impairment charges reflected the difference between the carrying amounts and the estimated fair values. The fair values were determined based on a cost approach. The inputs include replacement cost estimates adjusted for physical deterioration and economic obsolescence. This method of assigning fair value to each asset type and aggregating those values represents a Level 3 asset measurement in determining the fair value on a nonrecurring basis subsequent to its original recognition. 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 7 - Debt" for a further description of the 2036 Convertible Senior Notes. During the three and nine months ended September 30, 2020, the Company used $18,086 to repurchase $5,000 principal amount and $75,890 to repurchase $30,008 principal amount of the 2036 Convertible Senior Notes, respectively, reflecting conversion premium, after tax impact, of $13,992 and $52,681, respectively, as a reduction of Additional Paid-in Capital and gains on debt extinguishment of $18 and $1,809, respectively, in the Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2019, the Company made no repurchases of the 2036 Convertible Senior Notes. Security Repurchase Programs In June 2018, January 2019, and February 2020, the Company's Board of Directors approved repurchase programs, of up to $75,000, $75,000 and $100,000, respectively, of the Company's convertible notes and/or shares of common stock (the "2018 Program", "2019 Program", and "2020 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, convertible note price, legal requirements and other factors. The Company made no repurchases of shares of common stock or convertible notes during the three and nine months ended September 30, 2019. The table below sets out the information regarding the activities under the 2019 and 2020 Programs during the three and nine months ended September 30, 2020: Three months ended September 30, 2020 Nine months ended September 30, 2020 Principal amount in 000's January 2019 Program February 2020 Program Principal amount in 000's January 2019 Program February 2020 Program 2036 Convertible Senior Notes Repurchases $ 5,000 $ 10,000 $ 8,086 $ 30,008 $ 67,804 $ 8,086 The 2018 Program was fully utilized prior to December 31, 2019. The 2019 was fully utilized as of September 30, 2020. The remaining amount of the 2020 Program was $91,914 as of September 30, 2020. 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, 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 or acquired from third parties; • sales of separated RINs and LCFS credits; • 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 September 30, 2020 Biomass-based Services Corporate Intersegment Consolidated Biomass-based diesel sales, net of BTC related amount due to customers of $(19) $ 387,239 $ — $ — $ (3,490) $ 383,749 Petroleum diesel sales — — 19,801 — 19,801 LCFS credit sales 32,636 — — — 32,636 Separated RIN sales 27,492 — — — 27,492 Co-product sales 11,732 — — — 11,732 Raw material sales 6,476 — — — 6,476 Other biomass-based diesel revenue 10,883 — — — 10,883 Other revenues — 21,483 — (21,378) 105 Total revenues from contracts with customers $ 476,458 $ 21,483 $ 19,801 $ (24,868) $ 492,874 Biomass-based diesel government incentives 83,178 — — — 83,178 Total revenues $ 559,636 $ 21,483 $ 19,801 $ (24,868) $ 576,052 Three months ended September 30, 2019 Biomass-based Diesel Services Corporate and other Intersegment Revenues Consolidated Total Biomass-based diesel sales, net of BTC related amount due to customers of $— $ 448,471 $ — $ — $ (11,361) $ 437,110 Petroleum diesel sales — — 54,201 — 54,201 LCFS credit sales 34,267 — — — 34,267 Separated RIN sales 26,762 — — — 26,762 Co-product sales 10,982 — — — 10,982 Raw material sales 7,246 — — — 7,246 Other biomass-based diesel revenue 13,108 — — — 13,108 Other revenues — 28,042 — (27,858) 184 Total revenues from contracts with customers $ 540,836 $ 28,042 $ 54,201 $ (39,219) $ 583,860 Biomass-based diesel government incentives 512 — — — 512 Total revenues $ 541,348 $ 28,042 $ 54,201 $ (39,219) $ 584,372 Reportable Segments Nine months ended September 30, 2020 Biomass-based Services Corporate Intersegment Consolidated Biomass-based diesel sales, net of BTC related amount due to customers of $1,085 $ 1,009,723 $ — $ — $ (6,593) $ 1,003,130 Petroleum diesel sales — — 86,633 — 86,633 Other biomass-based diesel revenue 31,544 — — — 31,544 Separated RIN sales 70,004 — — — 70,004 LCFS credit sales 97,379 — — — 97,379 Co-product sales 36,684 — — — 36,684 Raw material sales 25,122 — — — 25,122 Other revenues — 67,502 — (66,784) 718 Total revenues from contracts with customers $ 1,270,456 $ 67,502 $ 86,633 $ (73,377) $ 1,351,214 Biomass-based diesel government incentives 245,471 — — — 245,471 Total revenues $ 1,515,927 $ 67,502 $ 86,633 $ (73,377) $ 1,596,685 Nine months ended September 30, 2019 Biomass-based Diesel Services Corporate and other Intersegment Revenues Consolidated Total Biomass-based diesel sales, net of BTC related amount due to customers of $— $ 1,195,171 $ — $ — $ (14,136) $ 1,181,035 Petroleum diesel sales — — 216,288 — 216,288 Other biomass-based diesel revenue 31,291 — — — 31,291 Separated RIN sales 68,821 — — — 68,821 LCFS credit sales 77,603 — — — 77,603 Co-product sales 30,071 — — — 30,071 Raw material sales 15,851 — — — 15,851 Other revenues — 71,764 — (71,010) 754 Total revenues from contracts with customers $ 1,418,808 $ 71,764 $ 216,288 $ (85,146) $ 1,621,714 Biomass-based diesel government incentives 1,510 — — — 1,510 Total revenues $ 1,420,318 $ 71,764 $ 216,288 $ (85,146) $ 1,623,224 Contract balances: The following table provides information about receivables and contract liabilities from contracts with customers: September 30, 2020 December 31, 2019 Trade accounts receivable from customers $ 135,374 $ 185,156 Short-term contract liabilities (deferred revenue) $ (7) $ (631) Short-term contract liabilities (accounts payable) $ (43,512) $ (255,193) 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 and nine months ended September 30, 2020 and 2019 are as follows: July 1, 2020 Cash receipts Less: Impact on Other September 30, 2020 Deferred revenue $ 2 $ 4,371 $ 4,366 $ — $ 7 Payables to customers related to BTC 75,330 (31,818) — — 43,512 $ 75,332 $ (27,447) $ 4,366 $ — $ 43,519 July 1, 2019 Cash receipts Less: Impact on Other September 30, 2019 Deferred revenue $ 4,536 $ 6,984 $ 10,566 $ — $ 954 January 1, 2020 Cash receipts Less: Impact on Other September 30, 2020 Deferred revenue $ 631 $ 18,107 $ 18,731 $ — $ 7 Payables to customers related to BTC 255,193 (214,637) — 2,956 43,512 $ 255,824 $ (196,530) $ 18,731 $ 2,956 $ 43,519 January 1, 2019 Cash receipts Less: Impact on Other September 30, 2019 Deferred revenue $ 300 $ 47,331 $ 46,677 $ — $ 954 Discontinued Operations Income (loss) from discontinued operations mainly relates to the research and development activities and the sale of REG Life Sciences, the Company's industrial biotechnology business, which had been classified as assets held for sale following the Company's decision to pursue a sale of this business in the fourth quarter of 2018. In May 2019, the sale of REG Life Sciences core assets and business was closed. The wind-down of operations of REG Life Sciences was completed in the fourth quarter of 2019. New Accounting Standards 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's adoption of ASU 2016-13 effective January 1, 2020 did not have a material impact on its condensed 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's adoption of ASU 2016-13 effective January 1, 2020 did not have a material impact on its condensed consolidated financial statements. On December 18, 2019, the FASB issued ASU 2019-12, which affects general principles within ASC 740, Income Taxes. The ASU removes the following exceptions: (1) incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items, (2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and (4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The ASU also will make changes to franchise tax recognition, consideration of the tax basis recognition of goodwill related to acquisitions, specify tax allocation to subsidiaries, reflecting a change in tax law in the interim period annual effective tax rate computation in the period of enactment, and changes to the employee stock ownership plans and investments. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is evaluating the impact of the guidance on its condensed consolidated financial statements but does not expect the impact to be significant. On January 16, 2020, the FASB issued ASU 2020-01, which clarifies the interaction between Topic 321 (Equity Securities), Topic 323 (Equity Method Investments) and Topic 815 (Derivatives and Hedging). This amendment clarifies that an entity should not consider whether the settlement of a forward contract or exercise of an option is accounted for under Topic 323 or whether the fair value option is in accordance with Topic 825. For public business entities, the amendments in ASU 2020-01 are effective for fiscal years beginning December 15, 2020, and interim periods within those fiscal years. The Company is evaluating the impact of the guidance on its condensed consolidated financial statements but does not expect the impact be significant. On March 9, 2020, the FASB issued ASU 2020-03, which clarifies and updates various topics specific to the Company such as: (1) Amending Topic 820 to explicitly apply to non-financial items accounted for as derivatives under Topic 815. (2) Improve the understanding of Topic 470 and the alignment of Line-of-Credit arrangements and Revolving-Debt arrangements. (3) Clarification on the determination of a contractual term in a net investment in a lease determined in accordance with Topic 842 and Topic 326. For public business entities, the amendments in ASU 2020-03 are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. The Company is evaluating the impact of the guidance on its condensed consolidated financial statements. On March 12, 2020, the FASB issued ASU 2020-04, which provides a relief that is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Optional expedients are provided for contract modification accounting under the following Codification topics and subtopics: ASC 310, Receivables; ASC 470, Debt; ASC 840 or ASC 842, Leases; and ASC 815-15, Derivatives and Hedging: Embedded Derivatives. The ASU also establishes (1) a general contract modification principle that entities can apply in other areas that may be affected by reference rate reform and (2) certain elective hedge accounting expedients. T he amendments in ASU 2020-04 are effective for all entities as of March 12, 2020, through December 31, 2022. The Company is still evaluating the impact of the guidance on its condensed consolidated financial statements. On August 5, 2020, the FASB issued ASU 2020-06, which reduces the complexity of the accounting for convertible debt instruments and its effect on earnings per share calculation. The guidance reduces the number of accounting models used for convertible debt instruments, which will result in fewer embedded conversion features being recognized separately from the original contract. This will also affect the guidance associated with convertible debt for earnings-per-share by requiring the if-converted method rather than the treasury stock method, requiring that potential share settlement be included in the calculation of diluted earnings per share and clarifying that an entity should use the weighted-average share count from each quarter when calculating the year-to-date weighted-average share count. For public business entities, the amendments in ASU 2020-06 are effective for fiscal years beginning after December 15, 2021, including interim periods within those years, and early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those years. The Company is evaluating the impact of the guidance on its condensed consolidated financial statements. |
