Golden Growers Cooperative (GGROU) 10-Q 6 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Nov. 05, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	000-53957
Entity Registrant Name	Golden Growers Cooperative
Entity Central Index Key	0001489874
Entity Incorporation, State or Country Code	MN
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,490,480

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and Cash Equivalents	$ 3,676	$ 3,228
Short-Term Investments	2,268	1,807
Other Current Assets	59	275
Total Current Assets	6,003	5,310
Long-Term Investments	2,867	3,220
Investment in ProGold Limited Liability Company	17,578	18,059
Total Assets	26,448	26,589
Current Liabilities
Accounts Payable		2
Accrued Liabilities	2,015	208
Total Current Liabilities	2,015	210
Members' Equity:
Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of September 30, 2020 and December 31, 2019	24,433	26,379
Total Members’ Equity	24,433	26,379
Total Liabilities and Members’ Equity	$ 26,448	$ 26,589

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
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

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
OPERATIONS
Corn Revenue	$ 10,236	$ 12,081	$ 36,162	$ 42,425
Corn Expense	(10,252)	(12,097)	(36,207)	(42,470)
Net Income from ProGold Limited Liability Company	1,523	1,642	4,550	5,954
General & Administrative Expenses	(111)	(122)	(397)	(437)
Net Income from Operations	1,396	1,504	4,108	5,472
Other Income	45	46	142	132
Net Income Before Income Tax	1,441	1,550	4,250	5,604
Net Income	$ 1,441	$ 1,550	$ 4,250	$ 5,604
Weighted Average Shares/Units Outstanding	15,490,480	15,490,480	15,490,480	15,490,480
Earnings per Share/Membership Unit
Primary and Fully Diluted	$ 0.09	$ 0.10	$ 0.27	$ 0.36

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
COMPREHENSIVE INCOME
Net Income	$ 1,441	$ 1,550	$ 4,250	$ 5,604
Comprehensive Income	$ 1,441	$ 1,550	$ 4,250	$ 5,604

STATEMENTS OF CHANGES IN MEMBER

STATEMENTS OF CHANGES IN MEMBERS' EQUITY $ in Thousands	USD ($)
Beginning Balance at Dec. 31, 2018	$ 25,836
Increase (Decrease) in Stockholders' Equity
Net Income	5,604
Distributions to Members	(6,692)
Ending Balance at Sep. 30, 2019	24,748
Beginning Balance at Jun. 30, 2019	25,366
Increase (Decrease) in Stockholders' Equity
Net Income	1,550
Distributions to Members	(2,168)
Ending Balance at Sep. 30, 2019	24,748
Beginning Balance at Dec. 31, 2019	26,379
Increase (Decrease) in Stockholders' Equity
Net Income	4,250
Distributions to Members	(6,196)
Ending Balance at Sep. 30, 2020	24,433
Beginning Balance at Jun. 30, 2020	25,006
Increase (Decrease) in Stockholders' Equity
Net Income	1,441
Distributions to Members	(2,014)
Ending Balance at Sep. 30, 2020	$ 24,433

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities
Net Income	$ 4,250,000	$ 5,604,000
Net (Income) from ProGold Limited Liability Company	(4,550,000)	(5,954,000)
Changes in assets and liabilities
Other Current Assets	216,000	186,000
Accrued liabilities and payables	(209,000)	(211,000)
Net Cash Used in Operating Activities	(293,000)	(375,000)
Cash Flows from Investing Activities
(Purchase) Sale of investments	(108,000)	(72,000)
Distribution received from ProGold LLC	5,031,000	6,076,000
Net Cash Provided in Investing Activities	4,923,000	6,004,000
Cash Flows from Financing Activities
Member distributions paid	(4,182,000)	(4,524,000)
Net Cash Used by Financing Activities	(4,182,000)	(4,524,000)
Increase (Decrease) in Cash and Cash Equivalents	448,000	1,105,000
Cash and Cash Equivalents, Beginning of Period	3,228,000	2,403,000
Cash and Cash Equivalents, End of Period	3,676,000	3,508,000
Non-Cash Financing Activity
Accrued Distributions Payable to Members	$ 2,014,000	$ 2,168,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION The condensed financial statements of Golden Growers Cooperative (the “Cooperative”) for the three and nine months ended September 30, 2020 and 2019 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, 2019. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2020.

EXPENSES

EXPENSES	9 Months Ended
	Sep. 30, 2020
Other Income and Expenses [Abstract]
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 $60,000, which is paid by the Cooperative to Cargill in quarterly installments. The agreements between Cargill and the Cooperative terminate concurrently with Cargill’s Second Amended and Restated Facility Lease with ProGold Limited Liability Company (“ProGold LLC”), which terminates on December 31, 2022, but may be extended through 2023 under certain conditions.

PROGOLD LIMITED LIABILITY COMPA

PROGOLD LIMITED LIABILITY COMPANY	9 Months Ended
	Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]
PROGOLD LIMITED LIABILITY COMPANY	NOTE 3 – PROGOLD LIMITED LIABILITY COMPANY The Cooperative has a 49% ownership interest in ProGold LLC. Following is summary financial information for ProGold LLC, which was derived from the monthly unaudited financial statements of ProGold LLC: September 30, December 31, (In Thousands) 2020 2019 2019 Current Assets $ 236 $ 248 $ 230 Long-Term Assets 40,123 39,316 38,962 Total Assets $ 40,359 $ 39,564 $ 39,192 Current Liabilities $ 263 $ 54 $ 5 Long-Term Liabilities 4,224 2,042 2,333 Total Liabilities 4,487 2,096 2,338 Members’ Equity 35,872 37,468 36,854 Total Liabilities and Members’ Equity $ 40,359 $ 39,564 $ 39,192 Rent Revenue on Operating Lease $ 12,037 $ 14,768 $ 19,085 Expenses 2,751 2,617 3,455 Net Income $ 9,286 $ 12,151 $ 15,630

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	NOTE 4 – INVESTMENTS The Cooperative has determined fair value of its investments held to maturity based on Level 2 inputs. September 30, 2020: Level 1 Level 2 Level 3 Total Corporate Bonds $ $ $ $ Money Market & CD’s — 126 — 126 $ — $ 5,252 $ — $ 5,252 December 31, 2019: Corporate Bonds $ $ $ $ Money Market & CD’s — 336 — 336 $ — $ 5,108 $ — $ 5,108 Maturities are as follows as of September 30, 2020: Net Carrying Fair Amount Value Due in 1 year or less $ 2,143 $ 2,150 Due in 2 to 5 years 2,660 2,772 Due in 6 to 10 years 207 204 $ 5,010 $ 5,126 The Coopertive’s investments held to maturity are as follows as of September 30, 2020 and December 31, 2019: Amortized Unrealized Unrealized Cost Gains Losses Fair Value September 30, 2020: Corporate Bonds $ $ $ ) $ Money Market & CD’s 126 — — 126 $ $ $ ) $ 5,252 December 31, 2019: Corporate Bonds $ $ $ $ Money Market & CD’s 336 — — 336 $ $ $ $ 5,108

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	9 Months Ended
	Sep. 30, 2020
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	NOTE 5 – EMPLOYEE BENEFIT PLANS Pension Plan – The plan’s fair value and benefit obligation will vary over time as a result of changes in market interest rates, the life expectancy of plan participants, and benefit payments. As of December 31, 2019, the plan had a total fair value of $844,000 and a benefit obligation of $784,000. For the same period in 2018, the plan had a total fair value of $734,000 and a benefit obligation of $766,000. For the nine month periods ended September 30, 2020 and 2019, the Cooperative made $0 in contributions. The Cooperative does not anticipate making a contribution in 2020. Contributions in 2019 totaled $0.

RECENTLY ADOPTED ACCOUNTING STA

RECENTLY ADOPTED ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2020
Accounting Changes and Error Corrections [Abstract]
RECENTLY ADOPTED ACCOUNTING STANDARDS	NOTE 6 – RECENTLY ADOPTED ACCOUNTING STANDARDS Leases Revenue Recognition Annually, the Cooperative is required to deliver approximately 15,490,480 bushels of corn to Cargill for processing at the ProGold LLC wet-milling facility. To fulfill that requirement, the Cooperative’s members are contractually obligated to annually deliver corn to the Cooperative by either Method A or Method B or a combination of both. Under Method A, a member is required to physically deliver corn to the Cooperative and under Method B a member appoints the Cooperative as its agent to arrange for the acquisition and delivery of corn on the member’s behalf. The Cooperative contractually appoints Cargill as its agent to arrange for the delivery of the corn by its members who elect to deliver corn using Method A and to acquire corn on its behalf for its members who elect to deliver corn using Method B. In exchange for these services, the Cooperative pays an annual fee of $60,000, paid in quarterly installments. Members who deliver corn under Method A are paid the market price or contracted price for their corn at the time of delivery, as well as an incentive payment of $.05 per bushel. Cargill pays the aggregate purchase price for corn purchased from the Cooperative’s members to the Cooperative and then, on the Cooperative’s behalf, makes individual payments for corn and incentive payments directly to the Cooperative’s members. In the event a member who has elected to deliver corn by Method A delivers to Cargill less than its committed amount of corn, the quantity of the shortfall is then purchased and delivered by Cargill on the Cooperative’s behalf. The purchase price is equal to the average price reported for Method A corn for the final month of the year. In addition, the Method A member with a shortfall will be charged a purchased corn fee and agency fee determined by the Cooperative’s Board of Directors. Members who elect Method B to deliver corn pay the Cooperative a $.02 per bushel agency fee for the cost of having the Cooperative deliver corn on their behalf. The price per bushel paid to such member is equal to the price per bushel paid by Cargill to acquire the corn as the Cooperative’s agent. Method B revenue will be equal to the price paid. TheCooperative has determined Corn Expense for Method B deliveries will be the weighted average price for Method A corn during the quarter multiplied by the number of Method B bushels purchased during the quarter. The incentive payment and agency fee are also a component of Corn Expense. The Cooperative’s Board of Directors has the discretion to change the incentive payment and the agency fee based on the Cooperative’s corn delivery needs. For the nine month periods ended September 30, 2020 and 2019, the Cooperative recognized corn revenue of $36.2 million and $42.4 million, respectively. Disaggregated revenue for the nine month periods ended September 30, 2020 and 2019 is as follows: revenue from Method A deliveries totaled $10.4 million and $12.2 million, respectively; and revenue from Method B deliveries totaled $25.8 million and $30.2 million, respectively. Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

DISTRIBUTIONS TO MEMBERS

DISTRIBUTIONS TO MEMBERS	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
DISTRIBUTIONS TO MEMBERS	NOTE 7 – DISTRIBUTIONS TO MEMBERS On February 14, 2020, the Cooperative made distributions to its members totaling $2,168,667, or $0.14 per outstanding membership unit. On June 24, 2020, the Cooperative made distributions to its members totaling $2,013,762 or $0.13 per outstanding membership unit. At its September meeting, the Cooperative’s Board of Directors authorized a distribution to its members totaling $2,013,762, or $0.13 per outstanding membership unit, to be paid in October 2020. On October 15, 2020 the Cooperative made the distribution to its members.

LINE OF CREDIT

LINE OF CREDIT	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
LINE OF CREDIT	NOTE 8 – LINE OF CREDIT In 2018, the Cooperative established a $2,000,000 line of credit with a variable interest rate. This line of credit was scheduled to terminate on October 16, 2020, but has been extended to October 16, 2022. The line of credit is secured by the investment management agency account for the Cooperative maintained by Bell Bank. There was no outstanding balance as of September 30, 2020 or December 31, 2019.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 – COMMITMENTS AND CONTINGENCIES The Cooperative contracts with Cargill in connection with the procurement of corn and other agency services for an annual fee of $60,000, which is paid by the Cooperative to Cargill in quarterly installments. The agreements between Cargill and the Cooperative terminate concurrently with Cargill’s Second Amended and Restated Facility Lease with ProGold LLC, which terminates on December 31, 2022, but may be extended through 2023 under certain conditions.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
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 September 30, 2020 financial statements and concluded that no subsequent events have occurred that would require recognition in the September 30, 2020 financial statements.

PROGOLD LIMITED LIABILITY COM_2

PROGOLD LIMITED LIABILITY COMPANY (Tables)	9 Months Ended
	Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]
Schedule of financial information for ProGold LLC	September 30, December 31, (In Thousands) 2020 2019 2019 Current Assets $ 236 $ 248 $ 230 Long-Term Assets 40,123 39,316 38,962 Total Assets $ 40,359 $ 39,564 $ 39,192 Current Liabilities $ 263 $ 54 $ 5 Long-Term Liabilities 4,224 2,042 2,333 Total Liabilities 4,487 2,096 2,338 Members’ Equity 35,872 37,468 36,854 Total Liabilities and Members’ Equity $ 40,359 $ 39,564 $ 39,192 Rent Revenue on Operating Lease $ 12,037 $ 14,768 $ 19,085 Expenses 2,751 2,617 3,455 Net Income $ 9,286 $ 12,151 $ 15,630

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of fair value of investments held to maturity based on level 2 inputs	September 30, 2020: Level 1 Level 2 Level 3 Total Corporate Bonds $ — $ $ — $ 5,126 Money Market & CD’s — 126 — 126 $ — $ 5,252 $ — $ 5,252 December 31, 2019: Corporate Bonds $ — $ $ — $ 4,772 Money Market & CD’s — 336 — 336 $ — $ 5,108 $ — $ 5,108
Schedule of investments held to maturity	Net Carrying Fair Amount Value Due in 1 year or less $ 2,143 $ 2,150 Due in 2 to 5 years 2,660 2,772 Due in 6 to 10 years 207 204 $ 5,010 $ 5,126
Schedule of gain (loss) on investments	Amortized Unrealized Unrealized Cost Gains Losses Fair Value September 30, 2020: Corporate Bonds $ $ $ (5) $ 5,126 Money Market & CD’s — — 126 $ 5,136 $ 121 $ (5) $ 5,252 December 31, 2019: Corporate Bonds $ $ $ — $ 4,772 Money Market & CD’s — — 336 $ 5,027 $ 81 $ — $ 5,108

EXPENSES (Details)

EXPENSES (Details)	Jan. 01, 2018USD ($)	Sep. 30, 2020Installments
Other Income and Expenses [Abstract]
Annual contractual payments to Cargill to arrange for the delivery of the corn and other agency services | $	$ 60,000
Number Of Installments | Installments		4

PROGOLD LIMITED LIABILITY COM_3

PROGOLD LIMITED LIABILITY COMPANY (Details) - Limited Liability Company [Member] - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Ownership percentage in joint venture	49.00%	49.00%	49.00%
Financial information for ProGold LLC
Current Assets	$ 236	$ 248	$ 230
Long-Term Assets	40,123	39,316	38,962
Total Assets	40,359	39,564	39,192
Current Liabilities	263	54	5
Long-Term Liabilities	4,224	2,042	2,333
Total Liabilities	4,487	2,096	2,338
Members' Equity	35,872	37,468	36,854
Total Liabilities and Members' Equity	40,359	39,564	39,192
Rent Revenue on Operating Lease	12,037	14,768	19,085
Expenses	2,751	2,617	3,455
Net Income	$ 9,286	$ 12,151	$ 15,630

INVESTMENTS - (Details)

INVESTMENTS - (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	$ 5,252	$ 5,108
Money Market & CD’s
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	126	336
Corporate Bonds
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	5,126	4,772
Fair Value Inputs Level2 [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	5,252	5,108
Fair Value Inputs Level2 [Member] | Money Market & CD’s
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	126	336
Fair Value Inputs Level2 [Member] | Corporate Bonds
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	$ 5,126	$ 4,772

INVESTMENTS - Net Carrying Amou

INVESTMENTS - Net Carrying Amount (Details) $ in Thousands	Sep. 30, 2020USD ($)
Net Carrying Amount
Due in 1 year or less	$ 2,143
Due in 2 to 5 years	2,660
Due in 6 to 10 years	207
Total	5,010
Fair Value
Due in 1 year or less	2,150
Due in 2 to 5 years	2,772
Due in 6 to 10 years	204
Total	$ 5,126

INVESTMENTS - Investments held

INVESTMENTS - Investments held to maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 5,136	$ 5,027
Unrealized Gains	121	81
Unrealized Losses	(5)
Fair Value	5,252	5,108
Corporate Bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,010	4,691
Unrealized Gains	121	81
Unrealized Losses	(5)
Fair Value	5,126	4,772
Money Market & CD’s
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	126	336
Fair Value	$ 126	$ 336

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - Pension Plans Defined Benefit [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan		$ 844	$ 734
Amount of benefit obligation		784	$ 766
Employer contributions	$ 0	$ 0

RECENTLY ADOPTED ACCOUNTING S_2

RECENTLY ADOPTED ACCOUNTING STANDARDS (Details)	9 Months Ended
	Sep. 30, 2020USD ($)Installments$ / Bushel
Revenue from Contract with Customer [Abstract]
Annual delivery of bushels of corn	15,490,480
Number Of Installments | Installments	4
Incentive Payment Per Bushel to Members on Delivery of Corn under Method A	0.05
Annual Cooperative fee for corn delivery | $	$ 60,000
Payment for Corn Delivered Using Method B	0.02

RECENTLY ADOPTED ACCOUNTING S_3

RECENTLY ADOPTED ACCOUNTING STANDARDS - Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Corn Revenue	$ 10,236	$ 12,081	$ 36,162	$ 42,425
Method A
Disaggregation of Revenue [Line Items]
Total			10,400	12,200
Method B
Disaggregation of Revenue [Line Items]
Total			$ 25,800	$ 30,200

DISTRIBUTIONS TO MEMBERS (Detai

DISTRIBUTIONS TO MEMBERS (Details) - USD ($)	Oct. 15, 2020	Jun. 24, 2020	Feb. 14, 2020	Sep. 30, 2020	Sep. 30, 2019
Distributions Made to Members or Limited Partners [Abstract]
Member distributions paid	$ 2,013,762	$ 2,013,762	$ 2,168,667	$ 4,182,000	$ 4,524,000
Distribution to members per outstanding membership unit (in dollars per unit)	$ 0.13	$ 0.13	$ 0.14

LINE OF CREDIT (Details)

LINE OF CREDIT (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Line of credit maximum borrowing capacity	$ 2,000,000	$ 2,000,000
Line of credit	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Jan. 01, 2018USD ($)	Sep. 30, 2020Installments
Commitments and Contingencies Disclosure [Abstract]
Annual contractual payments to Cargill for procurement of corn | $	$ 60,000
Number Of Installments | Installments		4