Golden Growers Cooperative (GGROU) 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 02, 2016
Document and Entity Information
Entity Registrant Name	Golden Growers Cooperative
Entity Central Index Key	1,489,874
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		15,490,480
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED BALANCE SHEET

CONDENSED BALANCE SHEET - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and Cash Equivalents	$ 1,172	$ 2,272
Short-Term Investments	220	220
Prepaids and Other Current Assets		287
Total Current Assets	1,392	2,779
Property and Equipment, Net	2	3
Investment in ProGold Limited Liability Company	23,148	25,831
Total Assets	24,542	28,613
Current Liabilities:
Accounts Payable		23
Accrued Liabilities	1	229
Total Current Liabilities	1	252
Non-Current Liability		48
Members' Equity
Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of March 31, 2016 and December 31, 2015	24,541	28,361
Accumulated other comprehensive Income (Loss)		(48)
Total Members' Equity	24,541	28,313
Total Liabilities and Members' Equity	$ 24,542	$ 28,613

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - shares	Jun. 30, 2016	Dec. 31, 2015
BALANCE SHEETS
Membership Units, Authorized	60,000,000	60,000,000
Membership Units, Issued	15,490,480	15,490,480
Membership Units, Outstanding	15,490,480	15,490,480

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
OPERATIONS
Corn Revenue	$ 13,007	$ 15,910	$ 30,802	$ 34,915
Corn Expense	(13,029)	(15,932)	(30,846)	(34,959)
Net Income from ProGold Limited Liability Company	1,388	1,066	2,759	2,390
General & Administrative Expenses	(174)	(139)	(343)	(352)
Net Income from Operations	1,192	905	2,372	1,994
Interest Income	2	2	4	4
Net Income Before Income Tax	1,194	907	2,376	1,998
Net Income	$ 1,194	$ 907	$ 2,376	$ 1,998
Weighted Average Units Outstanding	15,490,480	15,490,480	15,490,480	15,490,480
Earnings per Membership Unit
Primary and Fully Diluted (in dollars per share)	$ 0.08	$ 0.06	$ 0.15	$ 0.13
COMPREHENSIVE INCOME
Net Income	$ 1,194	$ 907	$ 2,376	$ 1,998
Pension Liability Adjustment	6		48
Comprehensive Income	$ 1,200	$ 907	$ 2,424	$ 1,998

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities
Net Income	$ 2,376,000	$ 1,998,000
Net (Income) from ProGold Limited Liability Company	(2,759,000)	(2,390,000)
Depreciation	1,000	1,000
Changes in Assets and Liabilities
Short-Term Investments		(2,000)
Prepaids and Other Current Assets	287,000	110,000
Accounts payable	(23,000)
Accrued Liabilities	(228,000)	(211,000)
Net Cash Used in Operating Activities	(346,000)	(494,000)
Cash Flows from Investing Activities
Distribution received from ProGold LLC	5,442,000	5,458,000
Net Cash Provided by Investing Activities	5,442,000	5,458,000
Cash Flows from Financing Activities
Member distributions paid	(6,196,000)	(6,662,000)
Net Cash Used by Financing Activities	(6,196,000)	(6,662,000)
Increase (Decrease) in Cash and Cash Equivalents	(1,100,000)	(1,698,000)
Cash and Cash Equivalents, Beginning of Period	2,272,000	2,483,000
Cash and Cash Equivalents, End of Period	$ 1,172,000	$ 785,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1 — BASIS OF PRESENTATION The financial statements of the Golden Growers Cooperative (the “Cooperative”) for the six-month periods ended June 30, 2016 and 2015 are unaudited and reflect all adjustments consisting of normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim period. The condensed financial statements should be read in conjunction with the financial statements and notes thereto, contained in the Cooperative’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The results of operations for the six-month period ended June 30, 2016, are not necessarily indicative of the results for the entire fiscal year ending December 31, 2016.

EXPENSESS

EXPENSESS	6 Months Ended
	Jun. 30, 2016
EXPENSES
EXPENSES	NOTE 2 — EXPENSES The Cooperative contracts with Cargill, Incorporated (“Cargill”) in connection with the procurement of corn and other agency services for an annual fee of $92,000, which is paid by the Cooperative to Cargill in quarterly installments and terminates on December 31, 2017.

PROGOLD LIMITED LIABILITY COMPA

PROGOLD LIMITED LIABILITY COMPANY	6 Months Ended
	Jun. 30, 2016
PROGOLD LIMITED LIABILITY COMPANY
PROGOLD LIMITED LIABILITY COMPANY	NOTE 3 — PROGOLD LIMITED LIABILITY COMPANY The Cooperative has a 49% ownership interest in ProGold Limited Liability Company (“ProGold LLC”). Following is summary financial information for ProGold LLC, which were derived from the monthly unaudited financial statements of ProGold LLC: June 30, December 31, (In Thousands) 2016 2015 2015 Current Assets $ $ $ Long-Term Assets Total Assets $ $ $ Current Liabilities $ $ $ Long-Term Liabilities Total Liabilities Members’ Equity Total Liabilities and Members’ Equity $ $ $ Rent Revenue on Operating Lease $ $ $ Expenses Net Income $ $ $

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 2016
INVESTMENTS
INVESTMENTS	NOTE 4 — INVESTMENTS Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Quoted market prices are generally not available for the Company’s financial instruments. Fair values are based on judgments regarding anticipated cash flows, future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates involve uncertainties and matters of judgment, and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The Cooperative has determined fair value of its investments held to maturity based on Level 1 inputs. The Cooperative’s investments held to maturity are as follows as of June 30, 2016 and December 31, 2015 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016: Money Market & CD’s $ $ — $ — $ December 31, 2015: Money Market & CD’s $ $ — $ — $

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Jun. 30, 2016
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	NOTE 5 — EMPLOYEE BENEFIT PLANS Pension Plan — In December 2012, the Cooperative approved a change to freeze the Cooperative’s defined benefit plan. As a result, no additional benefits will accrue to participants in the plan and no new employees are eligible for the plan. The following schedules provide the components of Net Periodic Benefit Cost for the six-months ended June 30, 2016 and June 30, 2015 (in thousands): June 30, June 30, 2016 2015 Service Cost $ — $ — Interest Cost Expected return on plan assets ) ) Amortization of net (gain) loss Net periodic pension cost $ ) $ Through the six-months ended June 30, 2016, the Cooperative has made $12,000 in contributions as compared to $11,000 through the six-months ended June 30, 2015. The Cooperative anticipates making $24,000 in contributions in 2016. Contributions in 2015 totaled $25,000.

RECENTLY ISSUED ACCOUNTING PRON

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2016
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	NOTE 6 — RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS The Cooperative has not been impacted by any new Accounting Pronouncements since the filing of its most recent Annual Report on Form 10-K.

CHANGE IN ACCOUNTING STANDARDS

CHANGE IN ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2016
CHANGE IN ACCOUNTING STANDARDS
CHANGE IN ACCOUNTING STANDARDS	NOTE 7 — CHANGE IN ACCOUNTING STANDARDS The Cooperative has not been impacted by any changes in Accounting Standards since the filing of its most recent 10-K.

DISTRIBUTIONS TO MEMBERS

DISTRIBUTIONS TO MEMBERS	6 Months Ended
	Jun. 30, 2016
DISTRIBUTIONS TO MEMBERS
DISTRIBUTIONS TO MEMBERS	NOTE 8 — DISTRIBUTIONS TO MEMBERS On February 12, 2016, the Cooperative made distributions to its members totaling $3,098,096 or $0.20 per outstanding membership unit. On June 28, 2016, the Cooperative made distributions to its members totaling $3,098,034 or $0.20 per outstanding unit.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 9 — COMMITMENTS AND CONTINGENCIES The Cooperative contracted with Cargill in connection with the procurement of corn which includes an annual fee of $92,000 paid by the Cooperative to Cargill in quarterly installments and terminates December 31, 2017.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 10 — SUBSEQUENT EVENTS The Cooperative has evaluated events through the date the financial statements were issued for potential recognition or disclosure in the June 30, 2016 financial statements and concluded that no subsequent events have occurred that would require recognition in the June 30, 2016 financial statements.

PROGOLD LIMITED LIABILITY COM16

PROGOLD LIMITED LIABILITY COMPANY (Tables)	6 Months Ended
	Jun. 30, 2016
PROGOLD LIMITED LIABILITY COMPANY
Schedule of financial information for ProGold LLC	June 30, December 31, (In Thousands) 2016 2015 2015 Current Assets $ $ $ Long-Term Assets Total Assets $ $ $ Current Liabilities $ $ $ Long-Term Liabilities Total Liabilities Members’ Equity Total Liabilities and Members’ Equity $ $ $ Rent Revenue on Operating Lease $ $ $ Expenses Net Income $ $ $

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
INVESTMENTS
Schedule of investments held to maturity	The Cooperative’s investments held to maturity are as follows as of June 30, 2016 and December 31, 2015 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016: Money Market & CD’s $ $ — $ — $ December 31, 2015: Money Market & CD’s $ $ — $ — $

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	6 Months Ended
	Jun. 30, 2016
EMPLOYEE BENEFIT PLANS
Components of Net Periodic Benefit Cost	The following schedules provide the components of Net Periodic Benefit Cost for the six-months ended June 30, 2016 and June 30, 2015 (in thousands): June 30, June 30, 2016 2015 Service Cost $ — $ — Interest Cost Expected return on plan assets ) ) Amortization of net (gain) loss Net periodic pension cost $ ) $

EXPENSES (Details)

EXPENSES (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
EXPENSES
Annual contractual payments to Cargill to arrange for the delivery of the corn by its members	$ 92,000

PROGOLD LIMITED LIABILITY COM20

PROGOLD LIMITED LIABILITY COMPANY (Details) - Limited Liability Company - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
ProGold Limited Liability Company
Ownership percentage in joint venture	49.00%
Financial information for ProGold LLC
Current Assets	$ 157	$ 2,400	$ 133
Long-Term Assets	47,685	58,538	53,386
Total Assets	47,842	60,938	53,519
Current Liabilities	401	2,633	404
Long-Term Liabilities	200	600	400
Total Liabilities	601	3,233	804
Members' Equity	47,241	57,705	52,715
Total Liabilities and Members' Equity	47,842	60,938	53,519
Rent Revenue on Operating Lease	11,566	11,415	23,106
Expenses	5,936	6,539	12,392
Net Income	$ 5,630	$ 4,876	$ 10,714

INVESTMENTS (Details)

INVESTMENTS (Details) - Money Market & CD's - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments held to maturity
Amortized Cost	$ 220	$ 220
Fair Value	$ 220	$ 220

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
EMPLOYEE BENEFIT PLANS
Service Cost
Interest Cost		36,000	40,000
Expected return on plan assets		(49,000)	(46,000)
Amortization of net (gain) loss		1,000	33,000
Net periodic pension cost		(12,000)	27,000
Annual benefits accrued to participants under the plan	$ 24,000
Pension expenses		$ 12,000	$ 11,000	$ 25,000

DISTRIBUTIONS TO MEMBERS (Detai

DISTRIBUTIONS TO MEMBERS (Details) - USD ($)	Jun. 28, 2016	Feb. 12, 2016	Jun. 30, 2016	Jun. 30, 2015
DISTRIBUTIONS TO MEMBERS
Member distributions paid	$ 3,098,034	$ 3,098,096	$ 6,196,000	$ 6,662,000
Distribution to members per outstanding membership unit (in dollars per unit)	$ 0.20	$ 0.20

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
COMMITMENTS AND CONTINGENCIES
Annual contractual payments to Cargill for procurement of corn	$ 92,000