Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2016 | Aug. 04, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Andersons, Inc. | |
Entity Central Index Key | 821,026 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Current assets: | ||||
Cash and cash equivalents | $ 31,383 | $ 63,750 | $ 40,773 | |
Restricted cash | 987 | 451 | 941 | |
Accounts receivable, net | 212,588 | 170,912 | 238,601 | |
Inventories | 486,236 | 747,399 | 508,408 | |
Commodity derivative assets – current (Note 5) | 115,924 | 49,826 | 39,860 | |
Deferred income taxes | 0 | 6,772 | 6,069 | |
Other current assets | 48,754 | 90,412 | 44,765 | |
Total current assets | 895,872 | 1,129,522 | 879,417 | |
Other assets: | ||||
Commodity derivative assets – noncurrent (Note 5) | 1,934 | 412 | 2,990 | |
Goodwill | 63,934 | 63,934 | 117,859 | |
Other intangible assets, net | 113,245 | 120,240 | 126,443 | |
Other assets, net | 6,549 | 9,515 | 33,370 | |
Equity method investments | 238,478 | 242,107 | 224,380 | |
Investments and Other Noncurrent Assets | 424,140 | 436,208 | 505,042 | |
Rail Group assets leased to others, net | 340,136 | 338,111 | 330,832 | |
Property, plant and equipment, net | 447,267 | 455,260 | 437,074 | |
Total assets | 2,107,415 | 2,359,101 | 2,152,365 | |
Current liabilities: | ||||
Short-term debt (Note 4) | 179,404 | 16,990 | 141,250 | |
Trade and other payables | 302,413 | 668,788 | 358,190 | |
Customer prepayments and deferred revenue | 18,252 | 66,762 | 25,927 | |
Commodity derivative liabilities – current (Note 5) | 43,183 | 37,387 | 42,622 | |
Accrued expenses and other current liabilities | 71,169 | 70,324 | 72,034 | |
Current maturities of long-term debt | 53,720 | 27,786 | 27,188 | |
Total current liabilities | 668,141 | 888,037 | 667,211 | |
Other long-term liabilities | 30,430 | 18,176 | 14,934 | |
Commodity derivative liabilities – noncurrent (Note 5) | 2,182 | 1,063 | 2,177 | |
Employee benefit plan obligations | 44,902 | 45,805 | 57,686 | |
Long-term debt, less current maturities | 398,746 | 436,208 | 417,279 | |
Deferred income taxes | 179,911 | 186,073 | 171,163 | |
Total liabilities | 1,324,312 | 1,575,362 | 1,330,450 | |
Commitments and contingencies | ||||
Shareholders’ equity: | ||||
Common shares, without par value (63,000 shares authorized; 29,430, 29,353 and 29,430 shares issued at 6/30/16, 12/31/15 and 6/30/15, respectively) | 96 | 96 | 96 | |
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 | 0 | |
Additional paid-in-capital | 219,489 | 222,848 | 223,802 | |
Treasury shares, at cost (1,190, 1,397 and 1,014 shares at 6/30/16, 12/31/15 and 6/30/15, respectively) | (44,970) | (52,902) | (38,880) | |
Accumulated other comprehensive loss | [1] | (17,094) | (20,939) | (55,159) |
Retained earnings | 606,177 | 615,151 | 671,655 | |
Total shareholders’ equity of The Andersons, Inc. | 763,698 | 764,254 | 801,514 | |
Noncontrolling interests | 19,405 | 19,485 | 20,401 | |
Total equity | 783,103 | 783,739 | 821,915 | |
Total liabilities and equity | $ 2,107,415 | $ 2,359,101 | $ 2,152,365 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | |||
Common shares, par value (dollars per share) | $ 0 | $ 0 | $ 0 |
Common shares, shares authorized (shares) | 63,000,000 | 63,000,000 | 42,000,000 |
Common shares, shares issued (shares) | 29,430,000 | 29,353,000 | 29,430,000 |
Preferred shares, par value (dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred shares, shares authorized (shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred shares, shares issued (shares) | 0 | 0 | 0 |
Treasury shares, at cost (shares) | 1,190,000 | 1,397,000 | 1,014,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Sales and merchandising revenues | $ 1,064,244 | $ 1,187,704 | $ 1,952,123 | $ 2,105,929 |
Cost of sales and merchandising revenues | 967,202 | 1,079,531 | 1,787,326 | 1,914,445 |
Gross profit | 97,042 | 108,173 | 164,797 | 191,484 |
Operating, administrative and general expenses | 75,405 | 83,743 | 155,286 | 162,346 |
Interest expense | 6,554 | 4,025 | 13,605 | 10,063 |
Other income (loss): | ||||
Equity in earnings (loss) of affiliates, net | 2,344 | 16,190 | (4,633) | 19,450 |
Other income (loss), net | 5,682 | 13,772 | 8,928 | 16,880 |
Income (loss) before income taxes | 23,109 | 50,367 | 201 | 55,405 |
Income tax provision (benefit) | 7,668 | 17,969 | 382 | 19,061 |
Net income (loss) | 15,441 | 32,398 | (181) | 36,344 |
Net income (loss) attributable to the noncontrolling interests | 1,018 | 1,306 | 92 | 1,155 |
Net income (loss) attributable to The Andersons, Inc. | $ 14,423 | $ 31,092 | $ (273) | $ 35,189 |
Per common share: | ||||
Basic earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ 0.51 | $ 1.09 | $ (0.01) | $ 1.23 |
Diluted earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | 0.51 | 1.09 | (0.01) | 1.23 |
Dividends declared (dollars per share) | $ 0.155 | $ 0.14 | $ 0.31 | $ 0.28 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 15,441 | $ 32,398 | $ (181) | $ 36,344 | |
Other comprehensive income (loss), net of tax: | |||||
Recognition of gain on sale of debt securities (net of income tax of $0, $0, $74 and $0) | 0 | 0 | (126) | 0 | |
Change in unrecognized actuarial loss and prior service cost (net of income tax of $(653), $1,289, $(663) and $1,525 - Note 8) | 1,121 | 2,128 | 1,294 | 2,518 | |
Foreign currency translation adjustments (net of income tax of $0, $0, $0 and $(613)) | 52 | 779 | 2,557 | (3,204) | |
Cash flow hedge activity (net of income tax of $36, $39, $72 and $74) | 60 | 64 | 120 | 122 | |
Other comprehensive income (loss) | [1] | 1,233 | 2,971 | 3,845 | (564) |
Comprehensive income (loss) | 16,674 | 35,369 | 3,664 | 35,780 | |
Comprehensive income (loss) attributable to the noncontrolling interests | 1,018 | 1,306 | 92 | 1,155 | |
Comprehensive income (loss) attributable to The Andersons, Inc. | $ 15,656 | $ 34,063 | $ 3,572 | $ 34,625 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Change in estimated fair value of investment in debt securities, tax | $ 74 | $ 0 |
Unrecognized actuarial loss and prior service costs, tax | (10) | (236) |
Foreign currency translation adjustments, tax | 0 | 613 |
Income tax on cash flow hedge activity | $ 35 | $ 35 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net income (loss) | $ (181) | $ 36,344 |
Adjustments to reconcile net income to cash used in operating activities: | ||
Depreciation and amortization | 41,379 | 36,596 |
Bad debt expense | 491 | 484 |
Equity in losses (earnings) of affiliates, net of dividends | 7,181 | (1,980) |
Gain on sale of investments | (685) | 0 |
Gains on sales of Rail Group assets and related leases | (4,725) | (9,213) |
Excess tax benefit from share-based payment arrangement | 0 | (1,299) |
Deferred income taxes | (1,601) | 10,736 |
Stock-based compensation expense | 3,696 | 1,988 |
Other | 234 | 833 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (43,650) | (42,209) |
Inventories | 224,368 | 312,341 |
Commodity derivatives | (60,443) | 27,835 |
Other assets | 35,612 | 17,173 |
Trade and other payables | (396,037) | (449,027) |
Net cash provided by (used in) operating activities | (194,361) | (59,398) |
Investing Activities | ||
Acquisition of business, net of cash acquired | 0 | 124,328 |
Purchases of Rail Group assets | (27,504) | (53,756) |
Proceeds from sale of Rail Group assets | 10,397 | 26,355 |
Purchases of property, plant and equipment | (34,443) | (28,214) |
Proceeds from sale of property, plant and equipment | 173 | 453 |
Proceeds from sale of investments | 15,013 | 1,866 |
Proceeds from sale of facilities | (54,330) | 0 |
Purchase of Investments | 2,523 | 0 |
Change in restricted cash | (538) | (513) |
Net cash provided by (used in) investing activities | 14,905 | (178,137) |
Financing Activities | ||
Net change in short-term borrowings | 164,000 | 138,000 |
Proceeds from issuance of long-term debt | 77,564 | 151,608 |
Payments of long-term debt | (85,177) | (82,014) |
Purchase of treasury stock | 0 | (34,160) |
Distributions to noncontrolling interest owner | 0 | (1,700) |
Proceeds from sale of treasury shares to employees and directors | 1,282 | 426 |
Payments of debt issuance costs | (309) | (271) |
Dividends paid | (8,679) | (8,044) |
Excess tax benefit from share-based payment arrangement | 0 | 1,299 |
Other | (1,592) | (1,540) |
Net cash provided by (used in) financing activities | 147,089 | 163,604 |
Decrease in cash and cash equivalents | (32,367) | (73,931) |
Cash and cash equivalents at beginning of period | 63,750 | 114,704 |
Cash and cash equivalents at end of period | $ 31,383 | $ 40,773 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | |
Beginning Balance at Dec. 31, 2014 | $ 824,049 | $ 96 | $ 222,789 | $ (9,743) | $ (54,595) | $ 644,556 | $ 20,946 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 36,344 | 35,189 | 1,155 | |||||
Other comprehensive (loss) | (564) | [1] | (564) | |||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (1,700) | (1,700) | ||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $417 (212 shares) and $216 (162 shares) for the period ending March 31, 2016 and 2015, respectively | 1,595 | (3,428) | 5,023 | |||||
Purchase of Treasury Shares (786 shares) | (34,160) | (34,160) | ||||||
Dividends declared ($0.155 and $0.14 per common share for the period ended March 31, 2016 and 2015, respectively) | (7,952) | (7,952) | ||||||
Shares Issued for acquisitions (77 shares) | 4,303 | 4,303 | ||||||
Performance share unit dividend equivalents | 0 | 138 | (138) | |||||
Ending Balance at Jun. 30, 2015 | 821,915 | 96 | 223,802 | (38,880) | (55,159) | 671,655 | 20,401 | |
Beginning Balance at Dec. 31, 2015 | 783,739 | 96 | 222,848 | (52,902) | (20,939) | 615,151 | 19,485 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (181) | (273) | 92 | |||||
Other comprehensive (loss) | 3,845 | [1] | 3,845 | |||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (172) | (172) | ||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $417 (212 shares) and $216 (162 shares) for the period ending March 31, 2016 and 2015, respectively | 4,553 | (3,379) | 7,932 | |||||
Dividends declared ($0.155 and $0.14 per common share for the period ended March 31, 2016 and 2015, respectively) | (8,681) | (8,681) | ||||||
Restricted share award dividend equivalents | 20 | (20) | ||||||
Ending Balance at Jun. 30, 2016 | $ 783,103 | $ 96 | $ 219,489 | $ (44,970) | $ (17,094) | $ 606,177 | $ 19,405 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Equity (Parenthetical) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Dividends declared, per common share | $ 0.31 | $ 0.28 |
Additional Paid-in Capital | ||
Income tax on stock option exercise and other shares issued to employees and directors | $ 424 | $ 819 |
Stock option exercises and other shares issued to employees and directors, shares | 207 | 163 |
Shares issued in connection with acquisition | 77 | |
Retained Earnings | ||
Dividends declared, per common share | $ 0.31 | $ 0.28 |
Treasury Shares | ||
Treasury shares purchased | 786 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation These Condensed Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated entities in which the Company has significant influence, but not control, are accounted for using the equity method of accounting. In the opinion of management, all adjustments consisting of normal and recurring items, considered necessary for the fair presentation of the results of operations, financial position, and cash flows for the periods indicated, have been made. The results in these Condensed Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2016 . The Condensed Consolidated Balance Sheet data at December 31, 2015 was derived from the audited Consolidated Financial Statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. An unaudited Condensed Consolidated Balance Sheet as of June 30, 2015 has been included as the Company operates in several seasonal industries. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in The Andersons, Inc. Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”). New Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-10, Identifying Performance Obligations and Licensing. This standard is intended to clarify guidance under ASC 606 related to the definition of performance obligations and materiality considerations as well as revenue recognition questions around the licensing of intellectual property. The standard is effective for annual and interim periods beginning after December 15, 2017. The portions of this standard related to licensing are not applicable but the Company is currently assessing the method of adoption and the impact the remaining provisions in this standard will have on its Consolidated Financial Statements and disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This standard simplifies the accounting treatment for excess tax benefits and deficiencies, forfeitures, and cash flow considerations related to share-based compensation. The standard is effective for annual and interim periods beginning after December 15, 2016. The Company is currently assessing the method of adoption and the impact this standard will have on its Consolidated Financial Statements and disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Principal versus Agent Considerations. This standard is intended to clarify the process to determine whether a company should record certain revenue transactions on a gross or a net basis. The standard is effective for annual and interim periods beginning after December 15, 2017. The Company is currently assessing the method of adoption and the impact this standard will have on its Consolidated Financial Statements and disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. This standard is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet with expanded disclosures around those items. This guidance is effective for annual and interim periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of this standard. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. This standard provides guidance for the recognition, measurement, presentation, and disclosure of financial instruments. This guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact of this standard. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes. This standard simplifies the presentation of deferred income taxes by eliminating the requirement for companies to present deferred tax liabilities and assets as current and non-current on the Consolidated Balance Sheets. Instead, companies In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory. This standard requires entities to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. The standard is effective for annual and interim periods beginning after December 15, 2016. The Company is currently evaluating the impact of this standard. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major classes of inventories are as follows: (in thousands) June 30, December 31, June 30, Grain $ 348,757 $ 534,548 $ 327,480 Ethanol and by-products 15,298 8,576 12,802 Plant nutrients and cob products 91,227 172,815 136,472 Retail merchandise 25,161 24,510 25,415 Railcar repair parts 5,793 6,894 6,050 Other — 56 189 $ 486,236 $ 747,399 $ 508,408 Inventories on the Condensed Consolidated Balance Sheets at June 30, 2016 , December 31, 2015 and June 30, 2015 do not include 4.0 million , 3.4 million and 1.2 million bushels of grain, respectively, held in storage for others. The Company does not have title to the grain and is only liable for any deficiencies in grade or shortage of quantity that may arise during the storage period. Management has not experienced historical losses on any deficiencies and does not anticipate material losses in the future. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of property, plant and equipment are as follows: (in thousands) June 30, December 31, June 30, Land $ 28,472 $ 29,928 $ 29,902 Land improvements and leasehold improvements 77,849 77,191 75,822 Buildings and storage facilities 290,528 303,482 296,035 Machinery and equipment 374,107 375,028 356,759 Construction in progress 51,672 32,871 21,803 822,628 818,500 780,321 Less: accumulated depreciation 375,361 363,240 343,247 $ 447,267 $ 455,260 $ 437,074 Depreciation expense on property, plant and equipment was $23.8 million and $22.3 million for the six months ended June 30, 2016 and 2015 , respectively. Additionally, Depreciation expense on property, plant and equipment was $11.6 million and $11.4 million for the three months ended June 30, 2016 and 2015 , respectively. Capitalized software has been reclassified from property, plant, and equipment, and is now presented as a component of other intangible assets. Prior year balance sheets have been recast to conform with the current period presentation. Rail Group Assets The components of Rail Group assets leased to others are as follows: (in thousands) June 30, December 31, June 30, Rail Group assets leased to others $ 442,239 $ 434,051 $ 422,810 Less: accumulated depreciation 102,103 95,940 91,978 $ 340,136 $ 338,111 $ 330,832 Depreciation expense on Rail Group assets leased to others amounted to $9.3 million and $8.3 million for the six months ended June 30, 2016 and 2015 , respectively. Additionally, Depreciation expense on Rail Group assets leased to others amounted to $4.7 million and $4.3 million for the three months ended June 30, 2016 and 2015 , respectively. Sale of Assets On April 5, 2016 the Company's Board of Directors approved the sale of eight grain and agronomy locations in Iowa to MaxYield Cooperative of West Bend, Iowa. The Andersons acquired these locations as a part of its 2012 acquisition from Green Plains Grain Company. The Tennessee assets acquired during that same transaction will remain a part of the Company. Total cash received was $54.3 million and a nominal gain was recognized on the sale. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company is party to borrowing arrangements with a syndicate of banks. See Note 5 in the Company’s 2015 Form 10-K for a description of these arrangements. Total borrowing capacity for the Company under all lines of credit is currently at $ 872.5 million , including $ 22.5 million of debt of The Andersons Denison Ethanol LLC ("TADE"), which is non-recourse to the Company. At June 30, 2016 , the Company had a total of $ 630.9 million available for borrowing under its lines of credit. Our borrowing capacity is reduced by a combination of outstanding borrowings and letters of credit. The Company was in compliance with all financial covenants as of June 30, 2016 . The Company’s short-term and long-term debt at June 30, 2016 , December 31, 2015 and June 30, 2015 consisted of the following: (in thousands) June 30, December 31, June 30, Short-term Debt – Non-Recourse $ — $ — $ — Short-term Debt – Recourse $ 179,404 16,990 141,250 Total Short-term Debt 179,404 16,990 141,250 Current Maturities of Long-term Debt – Non-Recourse — — — Current Maturities of Long-term Debt – Recourse 53,720 27,786 27,188 Total Current Maturities of Long-term Debt 53,720 27,786 27,188 Long-term Debt, Less: Current Maturities – Non-Recourse — — — Long-term Debt, Less: Current Maturities – Recourse 398,746 436,208 417,279 Total Long-term Debt, Less: Current Maturities $ 398,746 $ 436,208 $ 417,279 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company’s operating results are affected by changes to commodity prices. The Grain and Ethanol businesses have established “unhedged” position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract to lock in the price). To reduce the exposure to market price risk on commodities owned and forward grain and ethanol purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over the counter forward and option contracts with various counterparties. The exchange traded contracts are primarily via the regulated Chicago Mercantile Exchange ("CME"). The Company’s forward purchase and sales contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year . All of these contracts meet the definition of derivatives. While the Company considers its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges as defined under current accounting standards. The Company accounts for its commodity derivatives at estimated fair value. The estimated fair value of the commodity derivative contracts that require the receipt or posting of cash collateral is recorded on a net basis (offset against cash collateral posted or received, also known as margin deposits) within commodity derivative assets or liabilities. Management determines fair value based on exchange-quoted prices and in the case of its forward purchase and sale contracts, estimated fair value is adjusted for differences in local markets and non-performance risk. For contracts for which physical delivery occurs, balance sheet classification is based on estimated delivery date. For futures, options and over-the-counter contracts in which physical delivery is not expected to occur but, rather, the contract is expected to be net settled, the Company classifies these contracts as current or noncurrent assets or liabilities, as appropriate, based on the Company’s expectations as to when such contracts will be settled. Realized and unrealized gains and losses in the value of commodity contracts (whether due to changes in commodity prices, changes in performance or credit risk, or due to sale, maturity or extinguishment of the commodity contract) and grain inventories are included in cost of sales and merchandising revenues. These amounts were previously classified in sales and merchandising revenues but were reclassified starting in the fourth quarter of 2015. Generally accepted accounting principles permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or obligation to return cash collateral under the same master netting arrangement. The Company has master netting arrangements for its exchange traded futures and options contracts and certain over-the-counter contracts. When the Company enters into a future, option or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a future, option or an over-the-counter contract moves in a direction that is adverse to the Company’s position, an additional margin deposit, called a maintenance margin, is required. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Condensed Consolidated Balance Sheets. The following table presents at June 30, 2016 , December 31, 2015 and June 30, 2015 , a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted/received as collateral. The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within current or noncurrent commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets: June 30, 2016 December 31, 2015 June 30, 2015 (in thousands) Net derivative asset position Net derivative liability position Net derivative asset position Net derivative liability position Net derivative asset position Net derivative liability position Collateral paid (received) $ 38,252 $ (480 ) $ 3,008 $ — $ — $ 49,007 Fair value of derivatives 13,491 1,480 25,356 — — (58,195 ) Balance at end of period $ 51,743 $ 1,000 $ 28,364 $ — $ — $ (9,188 ) The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: June 30, 2016 (in thousands) Commodity derivative assets - current Commodity derivative assets - noncurrent Commodity derivative liabilities - current Commodity derivative liabilities - noncurrent Total Commodity derivative assets $ 134,504 $ 2,095 $ 5,925 $ 84 $ 142,608 Commodity derivative liabilities (56,832 ) (161 ) (48,628 ) (2,266 ) (107,887 ) Cash collateral 38,252 — (480 ) — 37,772 Balance sheet line item totals $ 115,924 $ 1,934 $ (43,183 ) $ (2,182 ) $ 72,493 December 31, 2015 (in thousands) Commodity derivative assets - current Commodity derivative assets - noncurrent Commodity derivative liabilities - current Commodity derivative liabilities - noncurrent Total Commodity derivative assets $ 51,647 $ 412 $ 371 $ 2 $ 52,432 Commodity derivative liabilities (4,829 ) — (37,758 ) (1,065 ) (43,652 ) Cash collateral 3,008 — — — 3,008 Balance sheet line item totals $ 49,826 $ 412 $ (37,387 ) $ (1,063 ) $ 11,788 June 30, 2015 (in thousands) Commodity derivative assets - current Commodity derivative assets - noncurrent Commodity derivative liabilities - current Commodity derivative liabilities - noncurrent Total Commodity derivative assets $ 52,405 $ 3,072 $ 3,956 $ 43 $ 59,476 Commodity derivative liabilities (61,552 ) (82 ) (46,578 ) (2,220 ) (110,432 ) Cash collateral 49,007 — — — 49,007 Balance sheet line item totals $ 39,860 $ 2,990 $ (42,622 ) $ (2,177 ) $ (1,949 ) The gains (losses) included in the Company’s Condensed Consolidated Statements of Operations and the line items in which they are located are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ 34,800 $ (41,017 ) $ 25,941 $ 2,805 The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at June 30, 2016 , December 31, 2015 and June 30, 2015 : June 30, 2016 Commodity Number of bushels (in thousands) Number of gallons (in thousands) Number of pounds (in thousands) Number of tons (in thousands) Non-exchange traded: Corn 242,269 — — — Soybeans 52,599 — — — Wheat 13,100 — — — Oats 30,722 — — — Ethanol — 130,464 — — Corn oil — — 13,800 — Other 17 — — 128 Subtotal 338,707 130,464 13,800 128 Exchange traded: Corn 148,665 — — — Soybeans 46,570 — — — Wheat 22,790 — — — Oats 2,820 — — — Ethanol — 36,540 — — Other — — — — Subtotal 220,845 36,540 — — Total 559,552 167,004 13,800 128 December 31, 2015 Commodity Number of bushels (in thousands) Number of gallons (in thousands) Number of pounds (in thousands) Number of tons (in thousands) Non-exchange traded: Corn 227,248 — — — Soybeans 13,357 — — — Wheat 13,710 — — — Oats 15,019 — — — Ethanol — 138,660 — — Corn oil — — 11,532 — Other 297 — — 116 Subtotal 269,631 138,660 11,532 116 Exchange traded: Corn 106,260 — — — Soybeans 17,255 — — — Wheat 28,135 — — — Oats 3,480 — — — Ethanol — 840 — — Other — 840 — — Subtotal 155,130 1,680 — — Total 424,761 140,340 11,532 116 June 30, 2015 Commodity Number of bushels (in thousands) Number of gallons (in thousands) Number of pounds (in thousands) Number of tons (in thousands) Non-exchange traded: Corn 233,812 — — — Soybeans 29,823 — — — Wheat 8,809 — — — Oats 24,180 — — — Ethanol — 139,789 — — Corn oil — — 6,394 — Other 350 — — 118 Subtotal 296,974 139,789 6,394 118 Exchange traded: Corn 139,965 — — — Soybeans 30,945 — — — Wheat 22,585 — — — Oats 4,690 — — — Ethanol — 25,620 — — Other — — — — Subtotal 198,185 25,620 — — Total 495,159 165,409 6,394 118 At June 30, 2016 , December 31, 2015 and June 30, 2015 , the Company had recorded the following amounts for the fair value of the Company's interest rate derivatives: June 30, December 31, June 30, (in thousands) 2016 2015 2015 Derivatives not designated as hedging instruments Interest rate contracts included in other long term liabilities (5,422 ) (3,133 ) — Total fair value of interest rate derivatives not designated as hedging instruments $ (5,422 ) $ (3,133 ) $ — Derivatives designated as hedging instruments Interest rate contract included in other short term liabilities — (191 ) — Total fair value of interest rate derivatives designated as hedging instruments $ — $ (191 ) $ — The losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for interest rate derivatives not designated as hedging instruments are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Interest expense $ (694 ) $ — $ (2,294 ) $ — The Company also has foreign currency derivatives which are considered effective economic hedges of specified economic risks but which are not designated as accounting hedges. At June 30, 2016 , December 31, 2015 and June 30, 2015 , the Company had recorded the following amounts for the fair value of the Company's foreign currency derivatives: June 30, December 31, June 30, (in thousands) 2016 2015 2015 Derivatives not designated as hedging instruments Foreign currency contracts included in short term assets 1,391 — — Total fair value of foreign currency contract derivatives not designated as hedging instruments $ 1,391 $ — $ — The losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for foreign currency contract derivatives not designated as hedging instruments are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Foreign currency derivative gains (losses) included in Other income, net $ (87 ) $ — $ 1,391 $ — |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The following are components of the net periodic benefit cost for the pension and post-retirement benefit plans maintained by the Company for the three and six months ended June 30, 2016 and 2015 : Pension Benefits (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service cost $ — $ 63 $ — $ 118 Interest cost 48 (1,118 ) 97 91 Expected return on plan assets — 1,561 — — Recognized net actuarial loss 37 388 73 758 Benefit cost $ 85 $ 894 $ 170 $ 967 Post-retirement Benefits (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service cost $ 167 $ 210 $ 380 $ 450 Interest cost 370 386 775 792 Amortization of prior service cost (89 ) (136 ) (177 ) (272 ) Recognized net actuarial loss 149 367 384 759 Benefit cost $ 597 $ 827 $ 1,362 $ 1,729 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On a quarterly basis, the Company estimates the effective tax rate expected to be applicable for the full year and makes changes if necessary based on new information or events. The estimated annual effective tax rate is forecast based on actual historical information and forward-looking estimates and is used to provide for income taxes in interim reporting periods. The Company also recognizes the tax impact of certain unusual or infrequently occurring items, such as the effects of changes in tax laws or rates and impacts from settlements with tax authorities, discretely in the quarter in which they occur. Additionally, the annual effective tax rate differs from the statutory U.S. Federal tax rate of 35% primarily due to the impact of state income taxes and to benefits related to the domestic production activities deduction. For the three months ended June 30, 2016, the Company recorded income tax expense of $7.7 million at an effective tax rate of 33.2% , which varied from the U.S. Federal tax rate of 35% primarily due to a 1.9% tax benefit related to the domestic production activities deduction and a 1.7% tax benefit attributable to the accounting for the investment in a foreign affiliate. For the three months ended June 30, 2015, the Company recorded income tax expense of $18.0 million at an effective tax rate of 35.7% . For the six months ended June 30, 2016, the Company recorded income tax expense of $0.4 million at an effective tax rate of 189.6% , which varied from the U.S. Federal tax rate of 35% primarily due to a 174.7% discrete tax charge related to state income taxes. For the six months ended June 30, 2015, the Company recorded income tax expense of $19.1 million at an effective tax rate of 34.4% . There have been no material changes to the balance of unrecognized tax benefits reported at December 31, 2015. During the quarter ended March 31, 2016, the IRS completed its audit of the Company’s 2011 and 2012 consolidated Federal income tax returns. The results of the examination will not have a material effect on the Company’s 2016 effective tax rate. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables summarize the after-tax components of accumulated other comprehensive income (loss) attributable to the Company for the three and six months ended June 30, 2016 and 2015 : Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) For the three months ended June 30, 2016 For the Six months ended June 30, 2016 (in thousands) Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Beginning Balance $ (51 ) $ (9,536 ) $ — $ (8,740 ) $ (18,327 ) $ (111 ) $ (12,041 ) $ 126 $ (8,913 ) $ (20,939 ) Other comprehensive income (loss) before reclassifications 60 52 — 1,177 1,289 120 2,557 — 1,406 4,083 Amounts reclassified from accumulated other comprehensive loss — — — (56 ) (56 ) — — (126 ) (112 ) (238 ) Net current-period other comprehensive income (loss) 60 52 — 1,121 1,233 120 2,557 (126 ) 1,294 3,845 Ending balance $ 9 $ (9,484 ) $ — $ (7,619 ) $ (17,094 ) $ 9 $ (9,484 ) $ — $ (7,619 ) $ (17,094 ) Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) For the three months ended June 30, 2015 For the six months ended June 30, 2015 (in thousands) Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Beginning Balance $ (306 ) $ (8,692 ) $ 126 $ (49,258 ) $ (58,130 ) $ (364 ) $ (4,709 ) $ 126 $ (49,648 ) $ (54,595 ) Other comprehensive income (loss) before reclassifications 64 779 — 2,213 3,056 122 (3,204 ) — 2,688 (394 ) Amounts reclassified from accumulated other comprehensive loss — — — (85 ) (85 ) — — — (170 ) (170 ) Net current-period other comprehensive income (loss) 64 779 — 2,128 2,971 122 (3,204 ) — 2,518 (564 ) Ending balance $ (242 ) $ (7,913 ) $ 126 $ (47,130 ) $ (55,159 ) $ (242 ) $ (7,913 ) $ 126 $ (47,130 ) $ (55,159 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits The following tables show the reclassification adjustments from accumulated other comprehensive loss to net income (loss) for the three and six months ended June 30, 2016 and 2015 : Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) For the three months ended June 30, 2016 For the Six months ended June 30, 2016 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Defined Benefit Plan Items Amortization of prior-service cost $ (89 ) (b) $ (177 ) (b) (89 ) Total before tax (177 ) Total before tax 33 Income tax provision 65 Income tax provision $ (56 ) Net of tax $ (112 ) Net of tax Other items Recognition of gain on sale of investment $ — (200 ) — Total before tax (200 ) Total before tax — Income tax provision 74 Income tax provision $ — Net of tax $ (126 ) Net of tax Total reclassifications for the period (56 ) Net of tax (238 ) Net of tax Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) For the three months ended June 30, 2015 For the six months ended June 30, 2015 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Defined Benefit Plan Items Amortization of prior-service cost $ (136 ) (b) $ (272 ) (b) (136 ) Total before tax (272 ) Total before tax 51 Income tax provision 102 Income tax provision $ (85 ) Net of tax $ (170 ) Net of tax Total reclassifications for the period $ (85 ) Net of tax $ (170 ) Net of tax (a) Amounts in parentheses indicate credits to profit/loss (b) This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost (see Note 6). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Company’s nonvested restricted stock that was granted prior to March 2015 is considered a participating security since the share-based awards contain a non-forfeitable right to dividends irrespective of whether the awards ultimately vest. (in thousands, except per common share data) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Net income (loss) attributable to The Andersons, Inc. $ 14,423 $ 31,092 $ (273 ) $ 35,189 Less: Distributed and undistributed earnings allocated to nonvested restricted stock 8 52 5 66 Earnings (loss) available to common shareholders $ 14,415 $ 31,040 $ (278 ) $ 35,123 Earnings per share – basic: Weighted average shares outstanding – basic 28,227 28,375 28,164 28,558 Earnings (loss) per common share – basic $ 0.51 $ 1.09 $ (0.01 ) $ 1.23 Earnings per share – diluted: Weighted average shares outstanding – basic 28,227 28,375 28,164 28,558 Effect of dilutive awards 86 13 — 51 Weighted average shares outstanding – diluted 28,313 28,388 28,164 28,609 Earnings (loss) per common share – diluted $ 0.51 $ 1.09 $ (0.01 ) $ 1.23 All outstanding share awards were antidilutive for the six months ended June 30, 2016 as the Company experienced a net loss. There were no antidilutive stock-based awards outstanding for the three months ended June 30, 2016 or at June 30, 2015 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2016 , December 31, 2015 and June 30, 2015 : (in thousands) June 30, 2016 Assets (liabilities) Level 1 Level 2 Level 3 Total Cash equivalents $ 11,578 $ — $ — $ 11,578 Restricted cash 987 — — 987 Commodity derivatives, net (a) 48,412 24,083 — 72,495 Provisionally priced contracts (b) (42,213 ) (18,495 ) — (60,708 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 6,080 (5,426 ) — 654 Total $ 24,844 $ 162 $ 3,294 $ 28,300 (in thousands) December 31, 2015 Assets (liabilities) Level 1 Level 2 Level 3 Total Cash equivalents $ 26,931 $ — $ — $ 26,931 Restricted cash 450 — — 450 Commodity derivatives, net (a) 26,890 (15,101 ) — 11,789 Provisionally priced contracts (b) (133,842 ) (103,148 ) — (236,990 ) Convertible preferred securities (c) — — 13,550 13,550 Other assets and liabilities (d) 8,635 (3,324 ) 350 5,661 Total $ (70,936 ) $ (121,573 ) $ 13,900 $ (178,609 ) (in thousands) June 30, 2015 Assets (liabilities) Level 1 Level 2 Level 3 Total Cash equivalents $ 8,943 $ — $ — $ 8,943 Restricted cash 941 — — 941 Commodity derivatives, net (a) (6,960 ) 5,011 — (1,949 ) Provisionally priced contracts (b) (50,001 ) (35,085 ) — (85,086 ) Convertible preferred securities (c) — — 13,300 13,300 Other assets and liabilities (d) 11,531 (2,565 ) — 8,966 Total $ (35,546 ) $ (32,639 ) $ 13,300 $ (54,885 ) (a) Includes associated cash posted/received as collateral (b) Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) (c) Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets (d) Included in other assets and liabilities are deferred compensation assets, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1), interest rate derivatives (Level 2), and contingent consideration to the former owners of Kay Flo Industries, Inc (Level 3). Level 1 commodity derivatives reflect the fair value of the exchange-traded futures and options contracts that the Company holds, net of the cash collateral that the Company has in its margin account. The majority of the Company’s assets and liabilities measured at fair value are based on the market approach valuation technique. With the market approach, fair value is derived using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s net commodity derivatives primarily consist of futures or options contracts via regulated exchanges and contracts with producers or customers under which the future settlement date and bushels (or gallons in the case of ethanol contracts) of commodities to be delivered (primarily wheat, corn, soybeans and ethanol) are fixed and under which the price may or may not be fixed. Depending on the specifics of the individual contracts, the fair value is derived from the futures or options prices on the CME or the New York Mercantile Exchange for similar commodities and delivery dates as well as observable quotes for local basis adjustments (the difference, which is attributable to local market conditions, between the quoted futures price and the local cash price). Because basis for a particular commodity and location typically has multiple quoted prices from other agribusinesses in the same geographical vicinity and is used as a common pricing mechanism in the Agribusiness industry, we have concluded that basis is a Level 2 fair value input for purposes of the fair value disclosure requirements related to our commodity derivatives. Although nonperformance risk, both of the Company and the counterparty, is present in each of these commodity contracts and is a component of the estimated fair values, based on the Company’s historical experience with its producers and customers and the Company’s knowledge of their businesses, the Company does not view nonperformance risk to be a material input to fair value for these commodity contracts. These fair value disclosures exclude physical grain inventories measured at net realizable value. The net realizable value used to measure the Company’s agricultural commodity inventories is the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. This valuation would generally be considered Level 2. The amount is disclosed in Note 2 Inventories. Changes in the net realizable value of commodity inventories are recognized as a component of cost of sales and merchandising revenues. Provisionally priced contract liabilities are those for which the Company has taken ownership and possession of grain but the final purchase price has not been established. In the case of payables where the unpriced portion of the contract is limited to the futures price of the underlying commodity or we have delivered provisionally priced grain and a subsequent payable or receivable is set up for any futures changes in the grain price, quoted CBOT prices are used and the liability is deemed to be Level 1 in the fair value hierarchy. For all other unpriced contracts which include variable futures and basis components, the amounts recorded for delayed price contracts are determined on the basis of local grain market prices at the balance sheet date and, as such, are deemed to be Level 2 in the fair value hierarchy. The risk management contract liability allows related ethanol customers to effectively unprice the futures component of their inventory for a period of time, subjecting the bushels to market fluctuations. The Company records an asset or liability for the market value changes of the commodities over the life of the contracts based on quoted CBOT prices and as such, the balance is deemed to be Level 1 in the fair value hierarchy. The Company’s stake in the Iowa Northern Railway Company ("IANR") was redeemed in the first quarter of 2016. The remaining convertible preferred securities are interests in two early-stage enterprises in the form of debt securities with the possibility of conversion to equity under certain circumstances. A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: (in thousands) 2016 2015 2016 2015 Contingent Consideration Contingent Consideration Convertible Securities Convertible Securities Asset (liability) at January 1, $ (350 ) $ — $ 13,550 $ 13,300 Gains (losses) included in earnings 190 — 710 — Sales proceeds — — (13,485 ) — Asset (liability) at March 31, $ (160 ) $ — $ 775 $ 13,300 Gains (losses) included in earnings 160 — 19 — New agreements — — 2,500 — Asset (liability) at June 30, — — 3,294 13,300 The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of June 30, 2016 , December 31, 2015 and June 30, 2015 : Quantitative Information about Level 3 Fair Value Measurements (in thousands) Fair Value as of June 30, 2016 Valuation Method Unobservable Input Weighted Average Convertible Notes $ 3,294 Cost basis plus interest N/A N/A (in thousands) Fair Value as of December 31, 2015 Valuation Method Unobservable Input Weighted Average Convertible Preferred Securities $ 12,800 Market Approach EBITDA Multiples 5.6 Income Approach Discount Rate 14.5 % Convertible Notes $ 750 Cost basis plus interest N/A N/A (in thousands) Fair Value as of June 30, 2015 Valuation Method Unobservable Input Weighted Average Convertible Preferred Securities $ 13,300 Market Approach EBITDA Multiples 6.15 Income Approach Discount Rate 14.5 % Fair Value of Financial Instruments The fair value of the Company’s long-term debt is estimated using quoted market prices or discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. As such, the Company has concluded that the fair value of long-term debt is considered Level 2 in the fair value hierarchy. (in thousands) June 30, December 31, June 30, Fair value of long-term debt, including current maturities $ 472,714 $ 467,703 $ 448,298 Fair value in excess of carrying value 16,498 3,708 3,831 The fair value of the Company’s cash equivalents, accounts receivable and accounts payable approximate their carrying value as they are close to maturity. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Equity Method Investments The Company, directly or indirectly, holds investments in companies that are accounted for under the equity method. The Company’s equity in these entities is presented at cost plus its accumulated proportional share of income or loss, less any distributions it has received. On December 4, 2015, Lansing Trade Group, LLC ("LTG") agreed to the sale of equity to New Hope Liuhe Investment (USA), Inc., a U.S. subsidiary of the Chinese company, New Hope Liuhe Co. Ltd. New Hope paid cash for a 20 percent equity interest in LTG. The impact of this transaction to the Company was a reduction in total ownership share of LTG from approximately 38.5 percent to 31.0 percent which includes dilution from newly issued shares as well as a redemption of shares that occurred on a pro rata basis between the Company and the other existing owners of LTG. The Company recognized a total gain of $23.1 million on these transactions. Cash of $8.2 million was received of which $1.3 million was a return of capital and $6.7 million was a return on capital. The remainder was a book gain on cash received in excess of basis in the shares redeemed. The following table presents the Company’s investment balance in each of its equity method investees by entity: (in thousands) June 30, 2016 December 31, 2015 June 30, 2015 The Andersons Albion Ethanol LLC $ 34,133 $ 32,871 $ 30,943 The Andersons Clymers Ethanol LLC 30,088 29,278 29,698 The Andersons Marathon Ethanol LLC 31,158 31,255 29,681 Lansing Trade Group, LLC 90,884 101,531 84,092 Thompsons Limited (a) 47,948 43,964 47,232 Other 4,267 3,208 2,734 Total $ 238,478 $ 242,107 $ 224,380 (a) Thompsons Limited and related U.S. operating company held by joint ventures The Company holds a majority interest ( 66% ) in The Andersons Ethanol Investment LLC (“TAEI”). This consolidated entity holds a 50% interest in The Andersons Marathon Ethanol LLC (“TAME”). The noncontrolling interest in TAEI is attributed 34% of the gains and losses of TAME recorded by the Company in its equity in earnings of affiliates. The following table summarizes income earned from the Company’s equity method investments by entity: Three months ended June 30, Six months ended June 30, (in thousands) % Ownership at 2016 2015 2016 2015 The Andersons Albion Ethanol LLC 55% $ 1,650 $ 2,324 $ 1,328 $ 3,416 The Andersons Clymers Ethanol LLC 38% 1,889 3,180 810 3,468 The Andersons Marathon Ethanol LLC 50% 1,712 2,812 (97 ) 3,144 Lansing Trade Group, LLC 33% (a) (5,333 ) 5,498 (8,101 ) 7,908 Thompsons Limited (b) 50% 2,426 2,229 1,427 1,367 Other 5% - 34% — 147 — 147 Total $ 2,344 $ 16,190 $ (4,633 ) $ 19,450 (a) This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 0.8% (b) Thompsons Limited and related U.S. operating company held by joint ventures Total distributions received from unconsolidated affiliates were $2.7 million and $19.2 million for the six months ended June 30, 2016 and June 30, 2015 , respectively. In the second quarter of 2016, The Andersons Albion Ethanol LLC, The Andersons Clymers Ethanol LLC, The Andersons Marathon Ethanol LLC, Lansing Trade Group, and Thompsons Limited qualified as significant equity investees of the Company under the income test. The following table presents combined summarized unaudited financial information of these investments for the three and six months ended June 30, 2016 and 2015: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Revenues $ 1,340,809 $ 1,357,038 $ 3,029,680 $ 2,880,689 Gross profit 52,204 77,891 77,782 137,686 Income (loss) from continuing operations 556 37,506 (17,568 ) 47,719 Net income (loss) (2,051 ) 33,859 (20,164 ) 42,386 Net income (loss) attributable to companies (1,410 ) 34,340 (19,122 ) 41,856 Investment in Debt Securities The Company previously owned 100% of the cumulative convertible preferred shares of Iowa Northern Railway Company (“IANR”), which operates a short-line railroad in Iowa. In the first quarter of 2016, these shares were redeemed and the Company no longer has an ownership stake with this entity. See Footnote 10 for additional information on the effects of this transaction. Related Party Transactions In the ordinary course of business, the Company will enter into related party transactions with each of the investments described above, along with other related parties. The following table sets forth the related party transactions entered into for the time periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Sales revenues $ 176,865 $ 197,253 $ 371,702 $ 346,724 Service fee revenues (a) 9,490 6,330 14,126 11,255 Purchases of product 116,556 113,314 218,509 216,108 Lease income (b) 1,994 1,582 3,861 3,245 Labor and benefits reimbursement (c) 6,841 2,779 10,738 5,811 Other expenses (d) — 224 149 557 (a) Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. (b) Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the various ethanol LLCs and IANR. (c) The Company provides all operational labor to the unconsolidated ethanol LLCs and charges them an amount equal to the Company’s costs of the related services. (d) Other expenses include payments to IANR for repair facility rent and use of their railroad reporting mark, payment to LTG for the lease of railcars and other various expenses. (in thousands) June 30, 2016 December 31, 2015 June 30, 2015 Accounts receivable (e) $ 20,685 $ 13,362 $ 31,495 Accounts payable (f) 10,022 13,784 13,848 (e) Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees. (f) Accounts payable represents amounts due to related parties for purchases of ethanol and other various items. For the three months ended June 30, 2016 and 2015 , revenues recognized for the sale of ethanol that the Company purchased from the unconsolidated ethanol LLCs were $111.3 million and $109.1 million , respectively. Additionally, for the six months ended June 30, 2016 and 2015 , revenues recognized for the sale of ethanol that the Company purchased from the unconsolidated ethanol LLCs were $198.9 million and $210.8 million , respectively. For the three months ended June 30, 2016 and 2015 , revenues recognized for the sale of corn to the unconsolidated ethanol LLCs under these agreements were $105.6 million and $107.7 million , respectively. Additionally, for the six months ended June 30, 2016 and 2015 , revenues recognized for the sale of corn to the unconsolidated ethanol LLCs under these agreements were $224.1 million and $204.4 million , respectively. From time to time, the Company enters into derivative contracts with certain of its related parties for the purchase and sale of corn and ethanol, for similar price risk mitigation purposes and on similar terms as the purchase and sale of derivative contracts it enters into with unrelated parties. The fair value of derivative contract assets with related parties as of June 30, 2016 , December 31, 2015 and June 30, 2015 was $ 5.2 million , $ 2.3 million and $ 1.5 million , respectively. The fair value of derivative contract liabilities with related parties as of June 30, 2016 , December 31, 2015 and June 30, 2015 was $ 1.0 million , $ 0.3 million and $ 2.4 million , respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s operations include five reportable business segments that are distinguished primarily on the basis of products and services offered. The Grain business includes grain merchandising, the operation of terminal grain elevator facilities and the investments in LTG and Thompsons Limited. The Ethanol business purchases and sells ethanol and also manages the ethanol production facilities organized as limited liability companies, one is consolidated and three are investments accounted for under the equity method. There are various service contracts for these investments. Rail operations include the leasing, marketing and fleet management of railcars and other assets, railcar repair and metal fabrication. The Plant Nutrient business manufactures and distributes agricultural inputs, primarily fertilizer, to dealers and farmers, along with turf care and corncob-based products. The Retail business operates large retail stores, a specialty food market, a distribution center and a lawn and garden equipment sales and service facility. Included in “Other” are the corporate level costs not attributed to an operating segment. The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. Inter-segment sales are made at prices comparable to normal, unaffiliated customer sales. The Company does not have any customers who represent 10 percent or more of total revenues. Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Revenues from external customers Grain $ 522,989 $ 601,397 $ 1,061,803 $ 1,160,073 Ethanol 142,520 142,564 257,213 275,365 Plant Nutrient 320,036 357,186 487,027 511,137 Rail 40,342 45,523 79,951 89,739 Retail 38,357 41,034 66,129 69,615 Total $ 1,064,244 $ 1,187,704 $ 1,952,123 $ 2,105,929 Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Inter-segment sales Grain $ 174 $ 440 $ 1,625 $ 2,129 Plant Nutrient 114 148 361 465 Rail 355 243 734 424 Total $ 643 $ 831 $ 2,720 $ 3,018 Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Income (loss) before income taxes Grain $ (13,037 ) $ 3,149 $ (30,442 ) $ 3,892 Ethanol 6,187 9,667 3,507 14,946 Plant Nutrient 23,535 18,873 25,239 19,297 Rail 6,569 21,689 15,944 32,002 Retail 1,010 1,469 (1,066 ) (714 ) Other (2,173 ) (5,786 ) (13,073 ) (15,173 ) Noncontrolling interests 1,018 1,306 92 1,155 Total $ 23,109 $ 50,367 $ 201 $ 55,405 (in thousands) June 30, 2016 December 31, 2015 June 30, 2015 Identifiable assets Grain $ 879,055 $ 1,010,810 $ 867,655 Ethanol 192,470 183,080 194,359 Plant Nutrient 448,225 531,753 517,586 Rail 388,456 405,702 395,798 Retail 43,878 44,135 45,194 Other 155,331 183,621 131,773 Total $ 2,107,415 $ 2,359,101 $ 2,152,365 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is party to litigation, or threats thereof, both as defendant and plaintiff with some regularity, although individual cases that are material in size occur infrequently. As a defendant, the Company establishes reserves for claimed amounts that are considered probable, and capable of estimation. If those cases are resolved for lesser amounts, the excess reserves are taken into income and, conversely, if those cases are resolved for larger than the amount the Company has accrued, the Company records additional expense. The Company believes it is unlikely that the results of its current legal proceedings for which it is the defendant, even if unfavorable, will be material. As a plaintiff, amounts that are collected can also result in sudden, non-recurring income. Litigation results depend upon a variety of factors, including the availability of evidence, the credibility of witnesses, the performance of counsel, the state of the law, and the impressions of judges and jurors, any of which can be critical in importance, yet difficult, if not impossible, to predict. Consequently, cases currently pending, or future matters, may result in unexpected, and non-recurring losses, or income, from time to time. Finally, litigation results are often subject to judicial reconsideration, appeal and further negotiation by the parties, and as a result, the final impact of a particular judicial decision may be unknown for some time, or may result in continued reserves to account for the potential of such post-verdict actions. The estimated range of loss for all outstanding claims that are considered reasonably possible is not material. Build-to-Suit Lease In August, 2015, the Company entered into a lease agre ement with an initial term of 15 years for a build-to-suit facility to be used as the new corporate headquarters. Construction is expected to be completed in the third quarter of 2016. Since the Company is deemed to be the owner of this facility for accounting purposes during the construction period, we have recognized an asset and a corresponding financing obligation. As of June 30, 2016, we have recorded a build-to-suit financing obligation of $13.0 million in other long-term liabilities and $1.5 million in other current liabilities. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Certain supplemental cash flow information, including noncash investing and financing activities for the six months ended June 30, 2016 and 2015 are as follows: Six months ended June 30, (in thousands) 2016 2015 Noncash investing and financing activity Capital projects incurred but not yet paid $ 9,653 $ 5,709 Purchase of a productive asset through seller-financing — 1,010 Purchase of Rail Group assets not yet paid — 2,209 Shares issued for acquisition of business — 4,303 Dividends declared not yet paid 4,341 3,967 |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions There were no business acquisitions completed in the six months ended June 30, 2016 . Prior Year Business Acquisitions On May 18, 2015, the Company purchased Kay Flo Industries, Inc. and certain subsidiaries. The Company acquired 100% of the outstanding shares of Kay Flo Industries, Inc. In connection with the acquisition, the Company agreed to pay contingent consideration based on the achievement of specified objectives, including reaching targeted gross profit thresholds. The range of undiscounted amounts the Company could be required to pay under the contingent consideration arrangement is between $0 and $24 million . The total fair value of consideration for the acquisitions was $129.4 million , including working capital and $0.4 million in estimated fair value of the contingent consideration arrangement. The Company has funded this transaction with long-term debt, short-term debt, and cash on hand. The debt has been drawn from the Company's existing line of credit. The purchase price allocation was finalized as of December 31, 2015. |
Sale of Assets (Notes)
Sale of Assets (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Sale of Assets | Property, Plant and Equipment The components of property, plant and equipment are as follows: (in thousands) June 30, December 31, June 30, Land $ 28,472 $ 29,928 $ 29,902 Land improvements and leasehold improvements 77,849 77,191 75,822 Buildings and storage facilities 290,528 303,482 296,035 Machinery and equipment 374,107 375,028 356,759 Construction in progress 51,672 32,871 21,803 822,628 818,500 780,321 Less: accumulated depreciation 375,361 363,240 343,247 $ 447,267 $ 455,260 $ 437,074 Depreciation expense on property, plant and equipment was $23.8 million and $22.3 million for the six months ended June 30, 2016 and 2015 , respectively. Additionally, Depreciation expense on property, plant and equipment was $11.6 million and $11.4 million for the three months ended June 30, 2016 and 2015 , respectively. Capitalized software has been reclassified from property, plant, and equipment, and is now presented as a component of other intangible assets. Prior year balance sheets have been recast to conform with the current period presentation. Rail Group Assets The components of Rail Group assets leased to others are as follows: (in thousands) June 30, December 31, June 30, Rail Group assets leased to others $ 442,239 $ 434,051 $ 422,810 Less: accumulated depreciation 102,103 95,940 91,978 $ 340,136 $ 338,111 $ 330,832 Depreciation expense on Rail Group assets leased to others amounted to $9.3 million and $8.3 million for the six months ended June 30, 2016 and 2015 , respectively. Additionally, Depreciation expense on Rail Group assets leased to others amounted to $4.7 million and $4.3 million for the three months ended June 30, 2016 and 2015 , respectively. Sale of Assets On April 5, 2016 the Company's Board of Directors approved the sale of eight grain and agronomy locations in Iowa to MaxYield Cooperative of West Bend, Iowa. The Andersons acquired these locations as a part of its 2012 acquisition from Green Plains Grain Company. The Tennessee assets acquired during that same transaction will remain a part of the Company. Total cash received was $54.3 million and a nominal gain was recognized on the sale. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory, Net [Abstract] | |
Classes of inventories | Major classes of inventories are as follows: (in thousands) June 30, December 31, June 30, Grain $ 348,757 $ 534,548 $ 327,480 Ethanol and by-products 15,298 8,576 12,802 Plant nutrients and cob products 91,227 172,815 136,472 Retail merchandise 25,161 24,510 25,415 Railcar repair parts 5,793 6,894 6,050 Other — 56 189 $ 486,236 $ 747,399 $ 508,408 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | The components of property, plant and equipment are as follows: (in thousands) June 30, December 31, June 30, Land $ 28,472 $ 29,928 $ 29,902 Land improvements and leasehold improvements 77,849 77,191 75,822 Buildings and storage facilities 290,528 303,482 296,035 Machinery and equipment 374,107 375,028 356,759 Construction in progress 51,672 32,871 21,803 822,628 818,500 780,321 Less: accumulated depreciation 375,361 363,240 343,247 $ 447,267 $ 455,260 $ 437,074 |
Components of railcar assets leased to others | The components of Rail Group assets leased to others are as follows: (in thousands) June 30, December 31, June 30, Rail Group assets leased to others $ 442,239 $ 434,051 $ 422,810 Less: accumulated depreciation 102,103 95,940 91,978 $ 340,136 $ 338,111 $ 330,832 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | The Company’s short-term and long-term debt at June 30, 2016 , December 31, 2015 and June 30, 2015 consisted of the following: (in thousands) June 30, December 31, June 30, Short-term Debt – Non-Recourse $ — $ — $ — Short-term Debt – Recourse $ 179,404 16,990 141,250 Total Short-term Debt 179,404 16,990 141,250 Current Maturities of Long-term Debt – Non-Recourse — — — Current Maturities of Long-term Debt – Recourse 53,720 27,786 27,188 Total Current Maturities of Long-term Debt 53,720 27,786 27,188 Long-term Debt, Less: Current Maturities – Non-Recourse — — — Long-term Debt, Less: Current Maturities – Recourse 398,746 436,208 417,279 Total Long-term Debt, Less: Current Maturities $ 398,746 $ 436,208 $ 417,279 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within current or noncurrent commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets: June 30, 2016 December 31, 2015 June 30, 2015 (in thousands) Net derivative asset position Net derivative liability position Net derivative asset position Net derivative liability position Net derivative asset position Net derivative liability position Collateral paid (received) $ 38,252 $ (480 ) $ 3,008 $ — $ — $ 49,007 Fair value of derivatives 13,491 1,480 25,356 — — (58,195 ) Balance at end of period $ 51,743 $ 1,000 $ 28,364 $ — $ — $ (9,188 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: June 30, 2016 (in thousands) Commodity derivative assets - current Commodity derivative assets - noncurrent Commodity derivative liabilities - current Commodity derivative liabilities - noncurrent Total Commodity derivative assets $ 134,504 $ 2,095 $ 5,925 $ 84 $ 142,608 Commodity derivative liabilities (56,832 ) (161 ) (48,628 ) (2,266 ) (107,887 ) Cash collateral 38,252 — (480 ) — 37,772 Balance sheet line item totals $ 115,924 $ 1,934 $ (43,183 ) $ (2,182 ) $ 72,493 December 31, 2015 (in thousands) Commodity derivative assets - current Commodity derivative assets - noncurrent Commodity derivative liabilities - current Commodity derivative liabilities - noncurrent Total Commodity derivative assets $ 51,647 $ 412 $ 371 $ 2 $ 52,432 Commodity derivative liabilities (4,829 ) — (37,758 ) (1,065 ) (43,652 ) Cash collateral 3,008 — — — 3,008 Balance sheet line item totals $ 49,826 $ 412 $ (37,387 ) $ (1,063 ) $ 11,788 June 30, 2015 (in thousands) Commodity derivative assets - current Commodity derivative assets - noncurrent Commodity derivative liabilities - current Commodity derivative liabilities - noncurrent Total Commodity derivative assets $ 52,405 $ 3,072 $ 3,956 $ 43 $ 59,476 Commodity derivative liabilities (61,552 ) (82 ) (46,578 ) (2,220 ) (110,432 ) Cash collateral 49,007 — — — 49,007 Balance sheet line item totals $ 39,860 $ 2,990 $ (42,622 ) $ (2,177 ) $ (1,949 ) |
Company's Condensed Consolidated Statement of Income gains and location of line items | The losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for foreign currency contract derivatives not designated as hedging instruments are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Foreign currency derivative gains (losses) included in Other income, net $ (87 ) $ — $ 1,391 $ — The losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for interest rate derivatives not designated as hedging instruments are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Interest expense $ (694 ) $ — $ (2,294 ) $ — The gains (losses) included in the Company’s Condensed Consolidated Statements of Operations and the line items in which they are located are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ 34,800 $ (41,017 ) $ 25,941 $ 2,805 |
Amounts of quantities outstanding included in commodity derivative contracts | The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at June 30, 2016 , December 31, 2015 and June 30, 2015 : June 30, 2016 Commodity Number of bushels (in thousands) Number of gallons (in thousands) Number of pounds (in thousands) Number of tons (in thousands) Non-exchange traded: Corn 242,269 — — — Soybeans 52,599 — — — Wheat 13,100 — — — Oats 30,722 — — — Ethanol — 130,464 — — Corn oil — — 13,800 — Other 17 — — 128 Subtotal 338,707 130,464 13,800 128 Exchange traded: Corn 148,665 — — — Soybeans 46,570 — — — Wheat 22,790 — — — Oats 2,820 — — — Ethanol — 36,540 — — Other — — — — Subtotal 220,845 36,540 — — Total 559,552 167,004 13,800 128 December 31, 2015 Commodity Number of bushels (in thousands) Number of gallons (in thousands) Number of pounds (in thousands) Number of tons (in thousands) Non-exchange traded: Corn 227,248 — — — Soybeans 13,357 — — — Wheat 13,710 — — — Oats 15,019 — — — Ethanol — 138,660 — — Corn oil — — 11,532 — Other 297 — — 116 Subtotal 269,631 138,660 11,532 116 Exchange traded: Corn 106,260 — — — Soybeans 17,255 — — — Wheat 28,135 — — — Oats 3,480 — — — Ethanol — 840 — — Other — 840 — — Subtotal 155,130 1,680 — — Total 424,761 140,340 11,532 116 June 30, 2015 Commodity Number of bushels (in thousands) Number of gallons (in thousands) Number of pounds (in thousands) Number of tons (in thousands) Non-exchange traded: Corn 233,812 — — — Soybeans 29,823 — — — Wheat 8,809 — — — Oats 24,180 — — — Ethanol — 139,789 — — Corn oil — — 6,394 — Other 350 — — 118 Subtotal 296,974 139,789 6,394 118 Exchange traded: Corn 139,965 — — — Soybeans 30,945 — — — Wheat 22,585 — — — Oats 4,690 — — — Ethanol — 25,620 — — Other — — — — Subtotal 198,185 25,620 — — Total 495,159 165,409 6,394 118 |
Schedule of Fair Value of Interest Rate Derivative Liabilities | The Company also has foreign currency derivatives which are considered effective economic hedges of specified economic risks but which are not designated as accounting hedges. At June 30, 2016 , December 31, 2015 and June 30, 2015 , the Company had recorded the following amounts for the fair value of the Company's foreign currency derivatives: June 30, December 31, June 30, (in thousands) 2016 2015 2015 Derivatives not designated as hedging instruments Foreign currency contracts included in short term assets 1,391 — — Total fair value of foreign currency contract derivatives not designated as hedging instruments $ 1,391 $ — $ — At June 30, 2016 , December 31, 2015 and June 30, 2015 , the Company had recorded the following amounts for the fair value of the Company's interest rate derivatives: June 30, December 31, June 30, (in thousands) 2016 2015 2015 Derivatives not designated as hedging instruments Interest rate contracts included in other long term liabilities (5,422 ) (3,133 ) — Total fair value of interest rate derivatives not designated as hedging instruments $ (5,422 ) $ (3,133 ) $ — Derivatives designated as hedging instruments Interest rate contract included in other short term liabilities — (191 ) — Total fair value of interest rate derivatives designated as hedging instruments $ — $ (191 ) $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Pension Benefits | |
Employee Benefit Plans [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The following are components of the net periodic benefit cost for the pension and post-retirement benefit plans maintained by the Company for the three and six months ended June 30, 2016 and 2015 : Pension Benefits (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service cost $ — $ 63 $ — $ 118 Interest cost 48 (1,118 ) 97 91 Expected return on plan assets — 1,561 — — Recognized net actuarial loss 37 388 73 758 Benefit cost $ 85 $ 894 $ 170 $ 967 |
Postretirement Benefits | |
Employee Benefit Plans [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Post-retirement Benefits (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service cost $ 167 $ 210 $ 380 $ 450 Interest cost 370 386 775 792 Amortization of prior service cost (89 ) (136 ) (177 ) (272 ) Recognized net actuarial loss 149 367 384 759 Benefit cost $ 597 $ 827 $ 1,362 $ 1,729 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the after-tax components of accumulated other comprehensive income (loss) attributable to the Company for the three and six months ended June 30, 2016 and 2015 : Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) For the three months ended June 30, 2016 For the Six months ended June 30, 2016 (in thousands) Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Beginning Balance $ (51 ) $ (9,536 ) $ — $ (8,740 ) $ (18,327 ) $ (111 ) $ (12,041 ) $ 126 $ (8,913 ) $ (20,939 ) Other comprehensive income (loss) before reclassifications 60 52 — 1,177 1,289 120 2,557 — 1,406 4,083 Amounts reclassified from accumulated other comprehensive loss — — — (56 ) (56 ) — — (126 ) (112 ) (238 ) Net current-period other comprehensive income (loss) 60 52 — 1,121 1,233 120 2,557 (126 ) 1,294 3,845 Ending balance $ 9 $ (9,484 ) $ — $ (7,619 ) $ (17,094 ) $ 9 $ (9,484 ) $ — $ (7,619 ) $ (17,094 ) Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) For the three months ended June 30, 2015 For the six months ended June 30, 2015 (in thousands) Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Beginning Balance $ (306 ) $ (8,692 ) $ 126 $ (49,258 ) $ (58,130 ) $ (364 ) $ (4,709 ) $ 126 $ (49,648 ) $ (54,595 ) Other comprehensive income (loss) before reclassifications 64 779 — 2,213 3,056 122 (3,204 ) — 2,688 (394 ) Amounts reclassified from accumulated other comprehensive loss — — — (85 ) (85 ) — — — (170 ) (170 ) Net current-period other comprehensive income (loss) 64 779 — 2,128 2,971 122 (3,204 ) — 2,518 (564 ) Ending balance $ (242 ) $ (7,913 ) $ 126 $ (47,130 ) $ (55,159 ) $ (242 ) $ (7,913 ) $ 126 $ (47,130 ) $ (55,159 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits |
Reclassification out of Accumulated Other Comprehensive Income | The following tables show the reclassification adjustments from accumulated other comprehensive loss to net income (loss) for the three and six months ended June 30, 2016 and 2015 : Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) For the three months ended June 30, 2016 For the Six months ended June 30, 2016 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Defined Benefit Plan Items Amortization of prior-service cost $ (89 ) (b) $ (177 ) (b) (89 ) Total before tax (177 ) Total before tax 33 Income tax provision 65 Income tax provision $ (56 ) Net of tax $ (112 ) Net of tax Other items Recognition of gain on sale of investment $ — (200 ) — Total before tax (200 ) Total before tax — Income tax provision 74 Income tax provision $ — Net of tax $ (126 ) Net of tax Total reclassifications for the period (56 ) Net of tax (238 ) Net of tax Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) For the three months ended June 30, 2015 For the six months ended June 30, 2015 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Defined Benefit Plan Items Amortization of prior-service cost $ (136 ) (b) $ (272 ) (b) (136 ) Total before tax (272 ) Total before tax 51 Income tax provision 102 Income tax provision $ (85 ) Net of tax $ (170 ) Net of tax Total reclassifications for the period $ (85 ) Net of tax $ (170 ) Net of tax (a) Amounts in parentheses indicate credits to profit/loss (b) This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost (see Note 6). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share | (in thousands, except per common share data) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Net income (loss) attributable to The Andersons, Inc. $ 14,423 $ 31,092 $ (273 ) $ 35,189 Less: Distributed and undistributed earnings allocated to nonvested restricted stock 8 52 5 66 Earnings (loss) available to common shareholders $ 14,415 $ 31,040 $ (278 ) $ 35,123 Earnings per share – basic: Weighted average shares outstanding – basic 28,227 28,375 28,164 28,558 Earnings (loss) per common share – basic $ 0.51 $ 1.09 $ (0.01 ) $ 1.23 Earnings per share – diluted: Weighted average shares outstanding – basic 28,227 28,375 28,164 28,558 Effect of dilutive awards 86 13 — 51 Weighted average shares outstanding – diluted 28,313 28,388 28,164 28,609 Earnings (loss) per common share – diluted $ 0.51 $ 1.09 $ (0.01 ) $ 1.23 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2016 , December 31, 2015 and June 30, 2015 : (in thousands) June 30, 2016 Assets (liabilities) Level 1 Level 2 Level 3 Total Cash equivalents $ 11,578 $ — $ — $ 11,578 Restricted cash 987 — — 987 Commodity derivatives, net (a) 48,412 24,083 — 72,495 Provisionally priced contracts (b) (42,213 ) (18,495 ) — (60,708 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 6,080 (5,426 ) — 654 Total $ 24,844 $ 162 $ 3,294 $ 28,300 (in thousands) December 31, 2015 Assets (liabilities) Level 1 Level 2 Level 3 Total Cash equivalents $ 26,931 $ — $ — $ 26,931 Restricted cash 450 — — 450 Commodity derivatives, net (a) 26,890 (15,101 ) — 11,789 Provisionally priced contracts (b) (133,842 ) (103,148 ) — (236,990 ) Convertible preferred securities (c) — — 13,550 13,550 Other assets and liabilities (d) 8,635 (3,324 ) 350 5,661 Total $ (70,936 ) $ (121,573 ) $ 13,900 $ (178,609 ) (in thousands) June 30, 2015 Assets (liabilities) Level 1 Level 2 Level 3 Total Cash equivalents $ 8,943 $ — $ — $ 8,943 Restricted cash 941 — — 941 Commodity derivatives, net (a) (6,960 ) 5,011 — (1,949 ) Provisionally priced contracts (b) (50,001 ) (35,085 ) — (85,086 ) Convertible preferred securities (c) — — 13,300 13,300 Other assets and liabilities (d) 11,531 (2,565 ) — 8,966 Total $ (35,546 ) $ (32,639 ) $ 13,300 $ (54,885 ) (a) Includes associated cash posted/received as collateral (b) Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) (c) Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets (d) Included in other assets and liabilities are deferred compensation assets, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1), interest rate derivatives (Level 2), and contingent consideration to the former owners of Kay Flo Industries, Inc (Level 3). |
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: (in thousands) 2016 2015 2016 2015 Contingent Consideration Contingent Consideration Convertible Securities Convertible Securities Asset (liability) at January 1, $ (350 ) $ — $ 13,550 $ 13,300 Gains (losses) included in earnings 190 — 710 — Sales proceeds — — (13,485 ) — Asset (liability) at March 31, $ (160 ) $ — $ 775 $ 13,300 Gains (losses) included in earnings 160 — 19 — New agreements — — 2,500 — Asset (liability) at June 30, — — 3,294 13,300 |
Fair Value Inputs, Assets, Quantitative Information | The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of June 30, 2016 , December 31, 2015 and June 30, 2015 : Quantitative Information about Level 3 Fair Value Measurements (in thousands) Fair Value as of June 30, 2016 Valuation Method Unobservable Input Weighted Average Convertible Notes $ 3,294 Cost basis plus interest N/A N/A (in thousands) Fair Value as of December 31, 2015 Valuation Method Unobservable Input Weighted Average Convertible Preferred Securities $ 12,800 Market Approach EBITDA Multiples 5.6 Income Approach Discount Rate 14.5 % Convertible Notes $ 750 Cost basis plus interest N/A N/A (in thousands) Fair Value as of June 30, 2015 Valuation Method Unobservable Input Weighted Average Convertible Preferred Securities $ 13,300 Market Approach EBITDA Multiples 6.15 Income Approach Discount Rate 14.5 % |
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | (in thousands) June 30, December 31, June 30, Fair value of long-term debt, including current maturities $ 472,714 $ 467,703 $ 448,298 Fair value in excess of carrying value 16,498 3,708 3,831 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Company's investment balance in each of its equity method investees by entity | The following table presents the Company’s investment balance in each of its equity method investees by entity: (in thousands) June 30, 2016 December 31, 2015 June 30, 2015 The Andersons Albion Ethanol LLC $ 34,133 $ 32,871 $ 30,943 The Andersons Clymers Ethanol LLC 30,088 29,278 29,698 The Andersons Marathon Ethanol LLC 31,158 31,255 29,681 Lansing Trade Group, LLC 90,884 101,531 84,092 Thompsons Limited (a) 47,948 43,964 47,232 Other 4,267 3,208 2,734 Total $ 238,478 $ 242,107 $ 224,380 (a) Thompsons Limited and related U.S. operating company held by joint ventures the second quarter of 2016, The Andersons Albion Ethanol LLC, The Andersons Clymers Ethanol LLC, The Andersons Marathon Ethanol LLC, Lansing Trade Group, and Thompsons Limited qualified as significant equity investees of the Company under the income test. The following table presents combined summarized unaudited financial information of these investments for the three and six months ended June 30, 2016 and 2015: (in thousands) Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Revenues $ 1,340,809 $ 1,357,038 $ 3,029,680 $ 2,880,689 Gross profit 52,204 77,891 77,782 137,686 Income (loss) from continuing operations 556 37,506 (17,568 ) 47,719 Net income (loss) (2,051 ) 33,859 (20,164 ) 42,386 Net income (loss) attributable to companies (1,410 ) 34,340 (19,122 ) 41,856 |
Income (loss) earned from the Company's equity method investments by entity | The following table summarizes income earned from the Company’s equity method investments by entity: Three months ended June 30, Six months ended June 30, (in thousands) % Ownership at 2016 2015 2016 2015 The Andersons Albion Ethanol LLC 55% $ 1,650 $ 2,324 $ 1,328 $ 3,416 The Andersons Clymers Ethanol LLC 38% 1,889 3,180 810 3,468 The Andersons Marathon Ethanol LLC 50% 1,712 2,812 (97 ) 3,144 Lansing Trade Group, LLC 33% (a) (5,333 ) 5,498 (8,101 ) 7,908 Thompsons Limited (b) 50% 2,426 2,229 1,427 1,367 Other 5% - 34% — 147 — 147 Total $ 2,344 $ 16,190 $ (4,633 ) $ 19,450 (a) This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 0.8% (b) Thompsons Limited and related U.S. operating company held by joint ventures |
Schedule of aggregate summarized financial information of subsidiaries | The following table sets forth the related party transactions entered into for the time periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Sales revenues $ 176,865 $ 197,253 $ 371,702 $ 346,724 Service fee revenues (a) 9,490 6,330 14,126 11,255 Purchases of product 116,556 113,314 218,509 216,108 Lease income (b) 1,994 1,582 3,861 3,245 Labor and benefits reimbursement (c) 6,841 2,779 10,738 5,811 Other expenses (d) — 224 149 557 (a) Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. (b) Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the various ethanol LLCs and IANR. (c) The Company provides all operational labor to the unconsolidated ethanol LLCs and charges them an amount equal to the Company’s costs of the related services. (d) Other expenses include payments to IANR for repair facility rent and use of their railroad reporting mark, payment to LTG for the lease of railcars and other various expenses. (in thousands) June 30, 2016 December 31, 2015 June 30, 2015 Accounts receivable (e) $ 20,685 $ 13,362 $ 31,495 Accounts payable (f) 10,022 13,784 13,848 (e) Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees. (f) Accounts payable represents amounts due to related parties for purchases of ethanol and other various items. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Revenues from external customers Grain $ 522,989 $ 601,397 $ 1,061,803 $ 1,160,073 Ethanol 142,520 142,564 257,213 275,365 Plant Nutrient 320,036 357,186 487,027 511,137 Rail 40,342 45,523 79,951 89,739 Retail 38,357 41,034 66,129 69,615 Total $ 1,064,244 $ 1,187,704 $ 1,952,123 $ 2,105,929 Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Inter-segment sales Grain $ 174 $ 440 $ 1,625 $ 2,129 Plant Nutrient 114 148 361 465 Rail 355 243 734 424 Total $ 643 $ 831 $ 2,720 $ 3,018 Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Income (loss) before income taxes Grain $ (13,037 ) $ 3,149 $ (30,442 ) $ 3,892 Ethanol 6,187 9,667 3,507 14,946 Plant Nutrient 23,535 18,873 25,239 19,297 Rail 6,569 21,689 15,944 32,002 Retail 1,010 1,469 (1,066 ) (714 ) Other (2,173 ) (5,786 ) (13,073 ) (15,173 ) Noncontrolling interests 1,018 1,306 92 1,155 Total $ 23,109 $ 50,367 $ 201 $ 55,405 (in thousands) June 30, 2016 December 31, 2015 June 30, 2015 Identifiable assets Grain $ 879,055 $ 1,010,810 $ 867,655 Ethanol 192,470 183,080 194,359 Plant Nutrient 448,225 531,753 517,586 Rail 388,456 405,702 395,798 Retail 43,878 44,135 45,194 Other 155,331 183,621 131,773 Total $ 2,107,415 $ 2,359,101 $ 2,152,365 |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow Supplemental Information | Certain supplemental cash flow information, including noncash investing and financing activities for the six months ended June 30, 2016 and 2015 are as follows: Six months ended June 30, (in thousands) 2016 2015 Noncash investing and financing activity Capital projects incurred but not yet paid $ 9,653 $ 5,709 Purchase of a productive asset through seller-financing — 1,010 Purchase of Rail Group assets not yet paid — 2,209 Shares issued for acquisition of business — 4,303 Dividends declared not yet paid 4,341 3,967 |
Inventories (Details)
Inventories (Details) $ in Thousands, bu in Millions | Jun. 30, 2016USD ($)bu | Dec. 31, 2015USD ($)bu | Jun. 30, 2015USD ($)bu |
Inventory, Net [Abstract] | |||
Grain | $ 348,757 | $ 534,548 | $ 327,480 |
Ethanol and by-products | 15,298 | 8,576 | 12,802 |
Plant nutrients and cob products | 91,227 | 172,815 | 136,472 |
Retail merchandise | 25,161 | 24,510 | 25,415 |
Railcar repair parts | 5,793 | 6,894 | 6,050 |
Other | 0 | 56 | 189 |
Total inventories | $ 486,236 | $ 747,399 | $ 508,408 |
Bushels of grain held in storage and excluded from inventory calculations | bu | 4 | 3.4 | 1.2 |
Property, Plant and Equipment38
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Components of property, plant and equipment | |||
Land | $ 28,472 | $ 29,928 | $ 29,902 |
Land improvements and leasehold improvements | 77,849 | 77,191 | 75,822 |
Buildings and storage facilities | 290,528 | 303,482 | 296,035 |
Machinery and equipment | 374,107 | 375,028 | 356,759 |
Construction in progress | 51,672 | 32,871 | 21,803 |
Property, plant and equipment, gross | 822,628 | 818,500 | 780,321 |
Less: accumulated depreciation | 375,361 | 363,240 | 343,247 |
Property, plant and equipment, net | $ 447,267 | $ 455,260 | $ 437,074 |
Property, Plant and Equipment39
Property, Plant and Equipment (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Components of Railcar assets leased to others | |||
Railcar assets leased to others | $ 442,239 | $ 434,051 | $ 422,810 |
Less: accumulated depreciation | 102,103 | 95,940 | 91,978 |
Railcar assets leased to others, net | $ 340,136 | $ 338,111 | $ 330,832 |
Property, Plant and Equipment40
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 11.6 | $ 11.4 | $ 23.8 | $ 22.3 |
Depreciation expense on railcar assets leased to others | $ 4.7 | $ 4.3 | $ 9.3 | $ 8.3 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Debt Instrument [Line Items] | |||
Short-term debt (Note 4) | $ 179,404 | $ 16,990 | $ 141,250 |
Long-term debt | |||
Total current maturities of long-term debt | 53,720 | 27,786 | 27,188 |
Total long-term debt, less current maturities | 398,746 | 436,208 | 417,279 |
Nonrecourse | |||
Debt Instrument [Line Items] | |||
Short-term debt (Note 4) | 0 | 0 | 0 |
Long-term debt | |||
Total current maturities of long-term debt | 0 | 0 | 0 |
Total long-term debt, less current maturities | 0 | 0 | 0 |
Recourse | |||
Debt Instrument [Line Items] | |||
Short-term debt (Note 4) | 179,404 | 16,990 | 141,250 |
Long-term debt | |||
Total current maturities of long-term debt | 53,720 | 27,786 | 27,188 |
Total long-term debt, less current maturities | $ 398,746 | $ 436,208 | $ 417,279 |
Debt (Details Textual)
Debt (Details Textual) - Line of credit $ in Millions | Jun. 30, 2016USD ($) |
Line of Credit Facility [Line Items] | |
Total borrowing capacity under lines of credit | $ 872.5 |
Total available for borrowings under lines of credit | 630.9 |
Secured Debt | |
Line of Credit Facility [Line Items] | |
Total borrowing capacity under lines of credit | $ 22.5 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | |||
Net derivative asset position, Collateral paid (received) | $ 38,252 | $ 3,008 | $ 0 |
Net derivative asset position, Fair value of derivatives | 13,491 | 25,356 | 0 |
Net derivative asset position, net | 51,743 | 28,364 | 0 |
Net derivative liability position, Collateral paid | (480) | 0 | 49,007 |
Net derivative liability position, Fair value of derivatives | 1,480 | 0 | (58,195) |
Net derivative liability position, net | $ 1,000 | $ 0 | $ (9,188) |
Derivatives (Details 1)
Derivatives (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | $ 13,491 | $ 25,356 | $ 0 |
Commodity derivative liabilities | (1,480) | 0 | 58,195 |
Commodity derivative assets - current | 115,924 | 49,826 | 39,860 |
Commodity derivative assets - noncurrent | 1,934 | 412 | 2,990 |
Commodity derivative liabilities - current | (43,183) | (37,387) | (42,622) |
Commodity derivative liabilities - noncurrent | (2,182) | (1,063) | (2,177) |
Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 142,608 | 52,432 | 59,476 |
Commodity derivative liabilities | (107,887) | (43,652) | (110,432) |
Cash collateral | 37,772 | 3,008 | 49,007 |
Total | 72,493 | 11,788 | (1,949) |
Commodity derivative assets - current | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 134,504 | 51,647 | 52,405 |
Commodity derivative liabilities | (56,832) | (4,829) | (61,552) |
Cash collateral | 38,252 | 3,008 | 49,007 |
Commodity derivative assets - current | 115,924 | 49,826 | 39,860 |
Commodity derivative assets - noncurrent | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 2,095 | 412 | 3,072 |
Commodity derivative liabilities | (161) | 0 | (82) |
Cash collateral | 0 | 0 | 0 |
Commodity derivative assets - noncurrent | 1,934 | 412 | 2,990 |
Commodity derivative liabilities - current | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 5,925 | 371 | 3,956 |
Commodity derivative liabilities | (48,628) | (37,758) | (46,578) |
Cash collateral | (480) | 0 | 0 |
Commodity derivative liabilities - current | (43,183) | (37,387) | (42,622) |
Commodity derivative liabilities - noncurrent | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 84 | 2 | 43 |
Commodity derivative liabilities | (2,266) | (1,065) | (2,220) |
Cash collateral | 0 | 0 | 0 |
Commodity derivative liabilities - noncurrent | $ (2,182) | $ (1,063) | $ (2,177) |
Derivatives (Details 2)
Derivatives (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | $ 34,800 | $ (41,017) | $ 25,941 | $ 2,805 |
Interest rate contracts | Not Designated as Hedging Instrument | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | (694) | 0 | (2,294) | 0 |
Foreign currency contract | Not Designated as Hedging Instrument | Other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | $ (87) | $ 0 | $ 1,391 | $ 0 |
Derivatives (Details 3)
Derivatives (Details 3) lb in Thousands, gal in Thousands, bu in Thousands, T in Thousands | Jun. 30, 2016lb | Jun. 30, 2016bu | Jun. 30, 2016T | Jun. 30, 2016gal | Dec. 31, 2015lb | Dec. 31, 2015bu | Dec. 31, 2015T | Dec. 31, 2015gal | Jun. 30, 2015lb | Jun. 30, 2015bu | Jun. 30, 2015T | Jun. 30, 2015gal |
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 13,800 | 559,552 | 128 | 167,004 | 11,532 | 424,761 | 116 | 140,340 | 6,394 | 495,159 | 118 | 165,409 |
Non-exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 13,800 | 338,707 | 128 | 130,464 | 11,532 | 269,631 | 116 | 138,660 | 6,394 | 296,974 | 118 | 139,789 |
Non-exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 242,269 | 0 | 0 | 0 | 227,248 | 0 | 0 | 0 | 233,812 | 0 | 0 |
Non-exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 52,599 | 0 | 0 | 0 | 13,357 | 0 | 0 | 0 | 29,823 | 0 | 0 |
Non-exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 13,100 | 0 | 0 | 0 | 13,710 | 0 | 0 | 0 | 8,809 | 0 | 0 |
Non-exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 30,722 | 0 | 0 | 0 | 15,019 | 0 | 0 | 0 | 24,180 | 0 | 0 |
Non-exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 130,464 | 0 | 0 | 0 | 138,660 | 0 | 0 | 0 | 139,789 |
Non-exchange Traded | Corn Oil | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 13,800 | 0 | 0 | 0 | 11,532 | 0 | 0 | 0 | 6,394 | 0 | 0 | 0 |
Non-exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 17 | 128 | 0 | 0 | 297 | 116 | 0 | 0 | 350 | 118 | 0 |
Exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 220,845 | 0 | 36,540 | 0 | 155,130 | 0 | 1,680 | 0 | 198,185 | 0 | 25,620 |
Exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 148,665 | 0 | 0 | 0 | 106,260 | 0 | 0 | 0 | 139,965 | 0 | 0 |
Exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 46,570 | 0 | 0 | 0 | 17,255 | 0 | 0 | 0 | 30,945 | 0 | 0 |
Exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 22,790 | 0 | 0 | 0 | 28,135 | 0 | 0 | 0 | 22,585 | 0 | 0 |
Exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 2,820 | 0 | 0 | 0 | 3,480 | 0 | 0 | 0 | 4,690 | 0 | 0 |
Exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 36,540 | 0 | 0 | 0 | 840 | 0 | 0 | 0 | 25,620 |
Exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 840 | 0 | 0 | 0 | 0 |
Derivatives (Details 4)
Derivatives (Details 4) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Derivative [Line Items] | ||||
Derivative assets | [1] | $ 72,495 | $ 11,789 | $ (1,949) |
Interest rate contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative liabilities | (5,422) | (3,133) | 0 | |
Interest rate contracts | Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative liabilities | 0 | (191) | 0 | |
Foreign currency contract | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative assets | 1,391 | 0 | 0 | |
Other long term liabilities | Interest rate contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative liabilities | (5,422) | (3,133) | 0 | |
Other short term liabilities | Interest rate contracts | Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative liabilities | 0 | (191) | 0 | |
Short term assets | Foreign currency contract | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative assets | $ 1,391 | $ 0 | $ 0 | |
[1] | Includes associated cash posted/received as collateral |
Derivatives (Details Textual)
Derivatives (Details Textual) | 6 Months Ended |
Jun. 30, 2016 | |
Derivatives (Textual) [Abstract] | |
Maximum period in which contracts for the sale of grain to processors or other consumers extend (years) | 1 year |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Benefits | ||||
Components of the net periodic benefit cost | ||||
Service cost | $ 0 | $ 63 | $ 0 | $ 118 |
Interest cost | 48 | (1,118) | 97 | 91 |
Expected return on plan assets | 0 | 1,561 | 0 | 0 |
Recognized net actuarial loss | 37 | 388 | 73 | 758 |
Benefit cost (income) | 85 | 894 | 170 | 967 |
Postretirement Benefits | ||||
Components of the net periodic benefit cost | ||||
Service cost | 167 | 210 | 380 | 450 |
Interest cost | 370 | 386 | 775 | 792 |
Amortization of prior service cost | (89) | (136) | (177) | (272) |
Recognized net actuarial loss | 149 | 367 | 384 | 759 |
Benefit cost (income) | $ 597 | $ 827 | $ 1,362 | $ 1,729 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
U.S. Federal tax rate | 35.00% | 35.00% | ||
Income tax expense (benefit) | $ 7,668 | $ 17,969 | $ 382 | $ 19,061 |
Effective tax rate | 33.20% | 35.70% | 189.60% | 34.40% |
Tax benefit related to production activities | 1.90% | 174.70% | ||
Foreign affiliate investment tax benefit, percent | 1.70% |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | $ (18,327) | $ (58,130) | $ (20,939) | $ (54,595) |
Other comprehensive income (loss) before reclassifications | [1] | 1,289 | 3,056 | 4,083 | (394) |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (56) | (85) | (238) | (170) |
Other comprehensive income (loss) | [1] | 1,233 | 2,971 | 3,845 | (564) |
Ending balance | [1] | (17,094) | (55,159) | (17,094) | (55,159) |
Losses on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (51) | (306) | (111) | (364) |
Other comprehensive income (loss) before reclassifications | [1] | 60 | 64 | 120 | 122 |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | [1] | 60 | 64 | 120 | 122 |
Ending balance | [1] | 9 | (242) | 9 | (242) |
Foreign Currency Translation Adjustments | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (9,536) | (8,692) | (12,041) | (4,709) |
Other comprehensive income (loss) before reclassifications | [1] | 52 | 779 | 2,557 | (3,204) |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | [1] | 52 | 779 | 2,557 | (3,204) |
Ending balance | [1] | (9,484) | (7,913) | (9,484) | (7,913) |
Investment in Debt Securities | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | 0 | 126 | 126 | 126 |
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | (126) | 0 |
Other comprehensive income (loss) | [1] | 0 | 0 | (126) | 0 |
Ending balance | [1] | 0 | 126 | 0 | 126 |
Defined Benefit Plan Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (8,740) | (49,258) | (8,913) | (49,648) |
Other comprehensive income (loss) before reclassifications | [1] | 1,177 | 2,213 | 1,406 | 2,688 |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (56) | (85) | (112) | (170) |
Other comprehensive income (loss) | [1] | 1,121 | 2,128 | 1,294 | 2,518 |
Ending balance | [1] | $ (7,619) | $ (47,130) | $ (7,619) | $ (47,130) |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Loss - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income (loss) before income taxes | $ 23,109 | $ 50,367 | $ 201 | $ 55,405 | ||||
Income tax provision (benefit) | 7,668 | 17,969 | 382 | 19,061 | ||||
Net income (loss) | 15,441 | 32,398 | (181) | 36,344 | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net income (loss) | (56) | [1] | (85) | [1] | (238) | (170) | [1] | |
Defined Benefit Plan Items | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amortization of prior-service cost | [1],[2] | (89) | (136) | (177) | (272) | |||
Income (loss) before income taxes | [1] | (89) | (136) | (177) | (272) | |||
Income tax provision (benefit) | [1] | 33 | 51 | 65 | 102 | |||
Net income (loss) | [1] | (56) | $ (85) | (112) | $ (170) | |||
Gain on sale of investment | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Recognition of gain on sale of investment | [1] | 0 | (200) | |||||
Income (loss) before income taxes | [1] | 0 | (200) | |||||
Income tax provision (benefit) | [1] | 0 | 74 | |||||
Net income (loss) | [1] | $ 0 | $ (126) | |||||
[1] | Amounts in parentheses indicate credits to profit/loss | |||||||
[2] | This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost (see Note 6). |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to The Andersons, Inc. | $ 14,423 | $ 31,092 | $ (273) | $ 35,189 |
Less: Distributed and undistributed earnings allocated to nonvested restricted stock | 8 | 52 | 5 | 66 |
Earnings available to common shareholders | $ 14,415 | $ 31,040 | $ (278) | $ 35,123 |
Earnings per share - basic: | ||||
Weighted average shares outstanding - basic (shares) | 28,227,000 | 28,375,000 | 28,164,000 | 28,558,000 |
Earnings per common share - basic (dollars per share) | $ 0.51 | $ 1.09 | $ (0.01) | $ 1.23 |
Earnings per share - diluted: | ||||
Weighted average shares outstanding - basic (shares) | 28,227,000 | 28,375,000 | 28,164,000 | 28,558,000 |
Effect of dilutive awards (shares) | 86,000 | 13,000 | 0 | 51,000 |
Weighted average shares outstanding - diluted (shares) | 28,313,000 | 28,388,000 | 28,164,000 | 28,609,000 |
Earnings per common share - diluted (dollars per share) | $ 0.51 | $ 1.09 | $ (0.01) | $ 1.23 |
Earnings Per Share (Textual) [Abstract] | ||||
Antidilutive stock-based awards outstanding (shares) | 0 | 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Assets and liabilities measured at fair value on a recurring basis | ||||
Cash equivalents | $ 11,578 | $ 26,931 | $ 8,943 | |
Restricted cash | 987 | 450 | 941 | |
Commodity derivatives, net | [1] | 72,495 | 11,789 | (1,949) |
Provisionally price contracts | [2] | (60,708) | (236,990) | (85,086) |
Convertible preferred securities | [3] | 3,294 | 13,550 | 13,300 |
Other assets and liabilities | [4] | 654 | 5,661 | 8,966 |
Total | 28,300 | (178,609) | (54,885) | |
Level 1 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Cash equivalents | 11,578 | 26,931 | 8,943 | |
Restricted cash | 987 | 450 | 941 | |
Commodity derivatives, net | [1] | 48,412 | 26,890 | (6,960) |
Provisionally price contracts | [2] | (42,213) | (133,842) | (50,001) |
Convertible preferred securities | [3] | 0 | 0 | 0 |
Other assets and liabilities | [4] | 6,080 | 8,635 | 11,531 |
Total | 24,844 | (70,936) | (35,546) | |
Level 2 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Cash equivalents | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | 0 | |
Commodity derivatives, net | [1] | 24,083 | (15,101) | 5,011 |
Provisionally price contracts | [2] | (18,495) | (103,148) | (35,085) |
Convertible preferred securities | [3] | 0 | 0 | 0 |
Other assets and liabilities | [4] | (5,426) | (3,324) | (2,565) |
Total | 162 | (121,573) | (32,639) | |
Level 3 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Cash equivalents | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | 0 | |
Commodity derivatives, net | [1] | 0 | 0 | 0 |
Provisionally price contracts | [2] | 0 | 0 | 0 |
Convertible preferred securities | [3] | 3,294 | 13,550 | 13,300 |
Other assets and liabilities | [4] | 0 | 350 | 0 |
Total | $ 3,294 | $ 13,900 | $ 13,300 | |
[1] | Includes associated cash posted/received as collateral | |||
[2] | Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets | |||
[3] | Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets | |||
[4] | Included in other assets and liabilities are deferred compensation assets, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1), interest rate derivatives (Level 2), and contingent consideration to the former owners of Kay Flo Industries, Inc (Level 3). |
Fair Value Measurements (Deta55
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | |||||||
New agreements | $ 0 | $ 0 | $ 2,500 | ||||
Asset, Ending Balance | |||||||
Asset fair value | |||||||
Contingent consideration | |||||||
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | |||||||
Asset, Beginning Balance | (160) | $ (350) | 0 | $ 0 | (350) | $ 0 | $ 0 |
Realized gains (losses) included in earnings | 160 | 190 | 0 | 0 | |||
Sales Proceeds | 0 | 0 | |||||
Asset, Ending Balance | 0 | (160) | 0 | 0 | 0 | 0 | (350) |
Asset fair value | (160) | (350) | 0 | 0 | (350) | 0 | 0 |
Convertible Preferred Stock | |||||||
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | |||||||
Asset, Beginning Balance | 775 | 13,550 | 13,300 | 13,300 | 13,550 | 13,300 | 13,300 |
Realized gains (losses) included in earnings | 19 | 710 | 0 | ||||
Sales Proceeds | (13,485) | 0 | |||||
Asset, Ending Balance | 3,294 | 775 | 13,300 | 13,300 | 3,294 | 13,300 | 13,550 |
Asset fair value | 775 | 13,550 | 13,300 | $ 13,300 | 13,550 | 13,300 | 13,300 |
Level 3 | Convertible Notes | |||||||
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | |||||||
Asset, Beginning Balance | 750 | 750 | |||||
Asset, Ending Balance | 3,294 | 3,294 | 750 | ||||
Asset fair value | $ 3,294 | 750 | 750 | 750 | |||
Level 3 | Convertible Preferred Stock | |||||||
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | |||||||
Asset, Beginning Balance | 12,800 | 12,800 | |||||
Asset, Ending Balance | 13,300 | 13,300 | 12,800 | ||||
Asset fair value | $ 12,800 | $ 13,300 | $ 12,800 | $ 13,300 | $ 12,800 | ||
Market Approach Valuation Technique | Level 3 | Convertible Preferred Stock | |||||||
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | |||||||
Fair Value Inputs, Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 6.15 | 5.6 | |||||
Income Approach Valuation Technique | Level 3 | Convertible Preferred Stock | |||||||
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | |||||||
Fair Value Inputs, Discount Rate | 14.50% | 14.50% |
Fair Value Measurements (Deta56
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | |||
Fair value of long-term debt, including current maturities | $ 472,714 | $ 467,703 | $ 448,298 |
Fair value in excess of carrying value | $ 16,498 | $ 3,708 | $ 3,831 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Income earned from Company's equity method investees | $ 2,344 | $ 16,190 | $ (4,633) | $ 19,450 | ||
Equity method investments | 238,478 | 224,380 | 238,478 | 224,380 | $ 242,107 | |
The Andersons Albion Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Income earned from Company's equity method investees | 1,650 | 2,324 | 1,328 | 3,416 | ||
Equity method investments | 34,133 | 30,943 | 34,133 | 30,943 | 32,871 | |
The Andersons Clymers Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Income earned from Company's equity method investees | 1,889 | 3,180 | 810 | 3,468 | ||
Equity method investments | 30,088 | 29,698 | 30,088 | 29,698 | 29,278 | |
The Andersons Marathon Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Income earned from Company's equity method investees | 1,712 | 2,812 | (97) | 3,144 | ||
Equity method investments | 31,158 | 29,681 | 31,158 | 29,681 | 31,255 | |
Lansing Trade Group LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Income earned from Company's equity method investees | (5,333) | 5,498 | (8,101) | 7,908 | ||
Equity method investments | 90,884 | 84,092 | 90,884 | 84,092 | 101,531 | |
Thompsons Limited | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Income earned from Company's equity method investees | [1] | 2,426 | 2,229 | 1,427 | 1,367 | |
Equity method investments | [2] | 47,948 | 47,232 | 47,948 | 47,232 | 43,964 |
Other | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Income earned from Company's equity method investees | 0 | 147 | 0 | 147 | ||
Equity method investments | $ 4,267 | $ 2,734 | $ 4,267 | $ 2,734 | $ 3,208 | |
[1] | Thompsons Limited and related U.S. operating company held by joint ventures | |||||
[2] | Thompsons Limited and related U.S. operating company held by joint ventures |
Related Party Transactions (D58
Related Party Transactions (Details 1) | Jun. 30, 2016 | |
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||
Reduction in ownership percentage (percentage) | 0.80% | |
The Andersons Albion Ethanol LLC | ||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||
Percentage of company ownership interest (percentage) | 55.00% | |
The Andersons Clymers Ethanol LLC | ||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||
Percentage of company ownership interest (percentage) | 38.00% | |
The Andersons Marathon Ethanol LLC | ||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||
Percentage of company ownership interest (percentage) | 50.00% | |
Lansing Trade Group LLC | ||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||
Percentage of company ownership interest (percentage) | 32.00% | [1] |
Thompsons Limited | ||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||
Percentage of company ownership interest (percentage) | 50.00% | [2] |
Minimum | Other | ||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||
Percentage of company ownership interest (percentage) | 5.00% | |
Maximum | Other | ||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||
Percentage of company ownership interest (percentage) | 34.00% | |
[1] | This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 0.8% | |
[2] | Thompsons Limited and related U.S. operating company held by joint ventures |
Related Party Transactions (D59
Related Party Transactions (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) attributable to companies | $ 14,423 | $ 31,092 | $ (273) | $ 35,189 |
LTG and The Andersons Albion Ethanol LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 1,340,809 | 1,357,038 | 3,029,680 | 2,880,689 |
Gross profit | 52,204 | 77,891 | 77,782 | 137,686 |
Income (loss) from continuing operations | 556 | 37,506 | (17,568) | 47,719 |
Net income (loss) | (2,051) | 33,859 | (20,164) | 42,386 |
Net income (loss) attributable to companies | $ (1,410) | $ 34,340 | $ (19,122) | $ 41,856 |
Related Party Transactions (D60
Related Party Transactions (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Related party transactions entered into for the time periods presented | ||||||
Sales revenues | $ 176,865 | $ 197,253 | $ 371,702 | $ 346,724 | ||
Service fee revenues | [1] | 9,490 | 6,330 | 14,126 | 11,255 | |
Purchases of product | 116,556 | 113,314 | 218,509 | 216,108 | ||
Lease income | [2] | 1,994 | 1,582 | 3,861 | 3,245 | |
Labor and benefits reimbursement | [3] | 6,841 | 2,779 | 10,738 | 5,811 | |
Other expenses | [4] | 0 | 224 | 149 | 557 | |
Accounts receivable | [5] | 20,685 | 31,495 | 20,685 | 31,495 | $ 13,362 |
Accounts payable | [6] | $ 10,022 | $ 13,848 | $ 10,022 | $ 13,848 | $ 13,784 |
[1] | Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. | |||||
[2] | Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the various ethanol LLCs and IANR. | |||||
[3] | The Company provides all operational labor to the unconsolidated ethanol LLCs and charges them an amount equal to the Company’s costs of the related services. | |||||
[4] | Other expenses include payments to IANR for repair facility rent and use of their railroad reporting mark, payment to LTG for the lease of railcars and other various expenses. | |||||
[5] | Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees. | |||||
[6] | Accounts payable represents amounts due to related parties for purchases of ethanol and other various items. |
Related Party Transactions (D61
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | Dec. 04, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 03, 2015 |
Related Party Transaction [Line Items] | |||||||
Gain recognized on equity method investment | $ 23,100 | ||||||
Proceeds from sale of investments | 8,200 | $ 15,013 | $ 1,866 | ||||
Proceeds from equity method investments, return of capital | 1,300 | ||||||
Proceeds from equity method investments, return on capital | $ 6,700 | ||||||
Total distributions received from unconsolidated affiliates | $ 2,700 | 19,200 | |||||
Percentage of shares acquired from subsidiary (percentage) | 100.00% | 100.00% | |||||
Revenues recognized for the sale of ethanol | $ 111,300 | $ 109,100 | $ 198,900 | 210,800 | |||
Revenues recognized for the sale of corn | 105,600 | 107,700 | 224,100 | 204,400 | |||
Related party, Gross asset | 5,200 | 1,500 | 5,200 | 1,500 | $ 2,300 | ||
Related party, Gross liability | $ 1,000 | $ 2,400 | $ 1,000 | $ 2,400 | $ 300 | ||
The Andersons Ethanol Investment LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of company ownership interest (percentage) | 66.00% | 66.00% | |||||
Noncontrolling interest is attributed of all gains and losses of parent (percentage) | 34.00% | 34.00% | |||||
The Andersons Marathon Ethanol LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of company ownership interest (percentage) | 50.00% | 50.00% | |||||
Lansing Trade Group | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of company ownership interest (percentage) | 31.00% | 38.50% | |||||
Lansing Trade Group | New Hope Liuhe Co. Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of company ownership interest (percentage) | 20.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 1,064,244 | $ 1,187,704 | $ 1,952,123 | $ 2,105,929 | |
Inter-segment sales | 643 | 831 | 2,720 | 3,018 | |
Income (loss) before income taxes | 23,109 | 50,367 | 201 | 55,405 | |
Identifiable assets | 2,107,415 | 2,152,365 | 2,107,415 | 2,152,365 | $ 2,359,101 |
Grain | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 522,989 | 601,397 | 1,061,803 | 1,160,073 | |
Inter-segment sales | 174 | 440 | 1,625 | 2,129 | |
Income (loss) before income taxes | (13,037) | 3,149 | (30,442) | 3,892 | |
Identifiable assets | 879,055 | 867,655 | 879,055 | 867,655 | 1,010,810 |
Ethanol | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 142,520 | 142,564 | 257,213 | 275,365 | |
Income (loss) before income taxes | 6,187 | 9,667 | 3,507 | 14,946 | |
Identifiable assets | 192,470 | 194,359 | 192,470 | 194,359 | 183,080 |
Plant Nutrient | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 320,036 | 357,186 | 487,027 | 511,137 | |
Inter-segment sales | 114 | 148 | 361 | 465 | |
Income (loss) before income taxes | 23,535 | 18,873 | 25,239 | 19,297 | |
Identifiable assets | 448,225 | 517,586 | 448,225 | 517,586 | 531,753 |
Rail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 40,342 | 45,523 | 79,951 | 89,739 | |
Inter-segment sales | 355 | 243 | 734 | 424 | |
Income (loss) before income taxes | 6,569 | 21,689 | 15,944 | 32,002 | |
Identifiable assets | 388,456 | 395,798 | 388,456 | 395,798 | 405,702 |
Retail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 38,357 | 41,034 | 66,129 | 69,615 | |
Income (loss) before income taxes | 1,010 | 1,469 | (1,066) | (714) | |
Identifiable assets | 43,878 | 45,194 | 43,878 | 45,194 | 44,135 |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes | (2,173) | (5,786) | (13,073) | (15,173) | |
Identifiable assets | 155,331 | 131,773 | 155,331 | 131,773 | $ 183,621 |
Noncontrolling Interests | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes | $ 1,018 | $ 1,306 | $ 92 | $ 1,155 |
Segment Information (Details Te
Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2016segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments (business segments) | 5 |
Number of consolidated segments | 1 |
Number of segments accounted for as equity method investments | 3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Build-to-Suit Lease - USD ($) $ in Millions | 1 Months Ended | |
Aug. 31, 2015 | Jun. 30, 2016 | |
Operating Leased Assets [Line Items] | ||
Term of leasing contract | 15 years | |
Other long term liabilities | ||
Operating Leased Assets [Line Items] | ||
Financing obligation | $ 13 | |
Other current liabilities | ||
Operating Leased Assets [Line Items] | ||
Financing obligation | $ 1.5 |
Supplemental Cash Flow Inform65
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Noncash investing and financing activity | ||
Capital projects incurred but not yet paid | $ 9,653 | $ 5,709 |
Purchase of a productive asset through seller-financing | 0 | 1,010 |
Purchase of Rail Group assets not yet paid | 0 | 2,209 |
Shares issued for acquisition of business | 0 | 4,303 |
Dividends declared not yet paid | $ 4,341 | $ 3,967 |
Business Acquisitions (Details)
Business Acquisitions (Details) | 6 Months Ended | |
Jun. 30, 2016acquisitions | May 18, 2015USD ($) | |
Business Acquisition [Line Items] | ||
Number of business acquisitions | acquisitions | 0 | |
Kay Flow Industries, Inc. | ||
Business Acquisition [Line Items] | ||
Percentage of shares outstanding acquired | 100.00% | |
Contingent consideration, minimum | $ 0 | |
Contingent consideration, maximum | 24,000,000 | |
Fair value of consideration for acquisition | 129,400,000 | |
Contingent consideration | $ 400,000 |
Business Acquisitions - Acquire
Business Acquisitions - Acquired Intangible Assets (Details) - Kay Flow Industries, Inc. | May 18, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (years) | 10 years |
Unpatented technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (years) | 10 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (years) | 10 years |
Noncompete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (years) | 5 years |
Favorable leasehold interest | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (years) | 5 years |
Minimum | Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (years) | 7 years |
Maximum | Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life (years) | 10 years |
Sale of Assets (Details)
Sale of Assets (Details) - IOWA $ in Millions | Apr. 05, 2016USD ($)location |
Business Acquisition [Line Items] | |
Number of grain and agronomy locations sold | location | 8 |
Cash received from sale of grain and agronomy locations to MaxYield Cooperative | $ | $ 54.3 |