Cover page
Cover page - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-20557 | |
Entity Registrant Name | ANDERSONS, INC. | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1562374 | |
Entity Address, Address Line One | 1947 Briarfield Boulevard | |
Entity Address, City or Town | Maumee | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43537 | |
City Area Code | 419 | |
Local Phone Number | 893-5050 | |
Title of 12(b) Security | Common stock, $0.00 par value, $0.01 stated value | |
Trading Symbol | ANDE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33 | |
Entity Central Index Key | 0000821026 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets: | |||
Cash, cash equivalents and restricted cash | $ 30,011 | $ 54,895 | $ 11,087 |
Accounts receivable, net | 537,011 | 536,367 | 712,294 |
Inventories | 616,323 | 1,170,536 | 753,641 |
Commodity derivative assets – current | 112,089 | 107,863 | 233,015 |
Other current assets | 102,755 | 75,681 | 58,590 |
Total current assets | 1,398,189 | 1,945,342 | 1,768,627 |
Other assets: | |||
Goodwill (Note 16) | 135,709 | 135,360 | 135,872 |
Other intangible assets, net | 160,180 | 175,312 | 188,818 |
Right of use assets, net | 62,838 | 76,401 | 74,073 |
Equity method investments | 25,083 | 23,857 | 120,929 |
Other assets, net | 23,152 | 21,753 | 28,002 |
Total other assets | 406,962 | 432,683 | 547,694 |
Rail Group assets leased to others, net | 592,821 | 584,298 | 559,711 |
Property, plant and equipment, net | 906,017 | 938,418 | 695,827 |
Total assets | 3,303,989 | 3,900,741 | 3,571,859 |
Current liabilities: | |||
Short-term debt | 96,071 | 147,031 | 426,125 |
Trade and other payables | 503,892 | 873,081 | 527,250 |
Customer prepayments and deferred revenue | 45,734 | 133,585 | 49,761 |
Commodity derivative liabilities – current | 65,186 | 46,942 | 69,369 |
Current maturities of long-term debt | 68,477 | 62,899 | 66,678 |
Accrued expenses and other current liabilities | 147,422 | 176,381 | 165,383 |
Total current liabilities | 926,782 | 1,439,919 | 1,304,566 |
Long-term lease liabilities | 41,061 | 51,091 | 48,401 |
Long-term debt, less current maturities | 975,973 | 1,016,248 | 1,007,012 |
Deferred income taxes | 162,475 | 146,155 | 146,839 |
Other long-term liabilities | 65,615 | 51,673 | 44,402 |
Total liabilities | 2,171,906 | 2,705,086 | 2,551,220 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Common shares, without par value (63,000 shares authorized; 33,599 shares issued at 6/30/2020, 33,550 shares issued at 12/31/2019 and 33,357 shares issued at 6/30/2019) | 138 | 137 | 137 |
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 | 0 |
Additional paid-in-capital | 343,730 | 345,359 | 331,186 |
Treasury shares, at cost (40, 207 and 173 shares at 6/30/2020, 12/31/2019 and 6/30/2019, respectively) | (953) | (7,342) | (6,449) |
Accumulated other comprehensive loss | (26,245) | (7,231) | (6,241) |
Retained earnings | 622,718 | 642,687 | 651,481 |
Total shareholders’ equity of The Andersons, Inc. | 939,388 | 973,610 | 970,114 |
Noncontrolling interests | 192,695 | 222,045 | 50,525 |
Total equity | 1,132,083 | 1,195,655 | 1,020,639 |
Total liabilities and equity | $ 3,303,989 | $ 3,900,741 | $ 3,571,859 |
Preferred Stock, Shares Issued | 0 | 0 | 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | |||
Common shares, without par value (dollars per share) | $ 0 | $ 0 | $ 0 |
Common shares, shares authorized (shares) | 63,000,000 | 63,000,000 | 63,000,000 |
Common shares, shares issued (shares) | 33,599,000 | 33,550,000 | 33,357,000 |
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) | 40,000 | 207,000 | 173,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues from external customers | $ 1,890,180 | $ 2,325,041 | $ 3,743,286 | $ 4,301,833 |
Cost of sales and merchandising revenues | 1,783,914 | 2,164,313 | 3,573,890 | 4,031,441 |
Gross profit | 106,266 | 160,728 | 169,396 | 270,392 |
Operating, administrative and general expenses | 90,136 | 106,918 | 195,196 | 220,267 |
Asset impairment | 0 | 3,081 | 0 | 3,081 |
Interest expense, net | 11,827 | 15,727 | 27,414 | 31,637 |
Other income, net: | ||||
Equity in earnings (loss) of affiliates, net | 79 | (157) | 209 | 1,362 |
Other income, net | 3,450 | 5,563 | 8,263 | 4,049 |
Income (loss) before income taxes | 7,832 | 40,408 | (44,742) | 20,818 |
Income tax (benefit) provision | (12,200) | 10,997 | (13,664) | 5,555 |
Net income (loss) | 20,032 | 29,411 | (31,078) | 15,263 |
Net loss attributable to the noncontrolling interests | (10,407) | (477) | (23,856) | (632) |
Net income (loss) attributable to The Andersons, Inc. | $ 30,439 | $ 29,888 | $ (7,222) | $ 15,895 |
Per common share: | ||||
Basic earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ 0.92 | $ 0.92 | $ (0.22) | $ 0.49 |
Diluted earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ 0.92 | $ 0.91 | $ (0.22) | $ 0.48 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 20,032 | $ 29,411 | $ (31,078) | $ 15,263 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrecognized actuarial income (loss) and prior service cost (net of income tax of $8, $(250), $(18) and $(293)) | 15 | (728) | (101) | (854) |
Cash flow hedge activity (net of income tax of $(615), $(1,974), $(5,134) and $(3,175)) | (1,860) | (5,952) | (15,523) | (9,574) |
Foreign currency translation adjustments | 3,249 | (2,035) | (3,390) | 10,574 |
Other comprehensive income (loss) | 1,404 | (8,715) | (19,014) | 146 |
Comprehensive income (loss) | 21,436 | 20,696 | (50,092) | 15,409 |
Comprehensive loss attributable to the noncontrolling interests | (10,407) | (477) | (23,856) | (632) |
Comprehensive income (loss) attributable to The Andersons, Inc. | 31,843 | 21,173 | (26,236) | 16,041 |
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in unrecognized actuarial loss and prior service cost, tax | $ 8 | $ (250) | $ (18) | $ (293) |
Cash flow hedge activity, tax | (615) | (1,974) | (5,134) | (3,175) |
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net income (loss) | $ (31,078) | $ 15,263 |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation and amortization | 93,898 | 64,146 |
Bad debt expense | 6,290 | 1,703 |
Equity in earnings of affiliates, net of dividends | (209) | (1,034) |
Gains on sales of Rail Group assets and related leases | (569) | (1,298) |
Gain (Loss) on Disposition of Assets | 341 | 106 |
Stock-based compensation expense | 5,016 | 7,292 |
Deferred federal income tax | 21,761 | 5,793 |
Inventory write down | 10,922 | 0 |
Asset impairment | 0 | 3,081 |
Other | 2,797 | 1,102 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (9,181) | (181,917) |
Inventories | 536,951 | 394,630 |
Commodity derivatives | 14,980 | (82,933) |
Other assets | (24,784) | 27,420 |
Payables and other accrued expenses | (481,624) | (338,201) |
Net cash provided by (used in) operating activities | 145,511 | (84,847) |
Investing Activities | ||
Acquisition of business, net of cash acquired | 0 | (147,693) |
Purchases of Rail Group assets | (24,649) | (43,435) |
Proceeds from sale of Rail Group assets | 4,637 | 7,389 |
Purchases of property, plant and equipment and capitalized software | (44,644) | (87,209) |
Proceeds from sale of assets | 1,503 | 795 |
Purchase of investments | (2,849) | (1,240) |
Net cash used in investing activities | (66,002) | (271,393) |
Financing Activities | ||
Net change in short-term borrowings | (47,564) | (660) |
Proceeds from issuance of long-term debt | 165,975 | 748,099 |
Payments of long-term debt | (203,835) | (390,528) |
Contributions by noncontrolling interest owner | 4,409 | 4,715 |
Distributions to noncontrolling interest owner | (10,298) | 0 |
Payments of debt issuance costs | (250) | (5,788) |
Dividends paid | (11,469) | (11,041) |
Other | (2,036) | (387) |
Net cash (used in) provided by financing activities | (105,068) | 344,410 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 675 | 324 |
Decrease in cash, cash equivalents and restricted cash | (24,884) | (11,506) |
Cash, cash equivalents and restricted cash at beginning of period | 54,895 | 22,593 |
Cash, cash equivalents and restricted cash at end of period | $ 30,011 | $ 11,087 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests | Adoption of accounting standard, adjustment | Adoption of accounting standard, adjustmentRetained Earnings |
Beginning Balance at Dec. 31, 2018 | $ 876,764 | $ 96 | $ 224,396 | $ (35,300) | $ (6,387) | $ 647,517 | $ 46,442 | $ (711) | $ (711) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 15,263 | 15,895 | (632) | ||||||
Other comprehensive loss | (11,314) | (11,314) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 11,460 | 11,460 | |||||||
Contributions from noncontrolling interests | 4,715 | 4,715 | |||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 7,680 | (21,018) | 28,698 | ||||||
Dividends declared per common share | (11,059) | (11,059) | |||||||
Stock awards granted due to acquisition | 127,841 | 41 | 127,800 | ||||||
Restricted share award dividend equivalents | 0 | 8 | 153 | (161) | |||||
Ending Balance at Jun. 30, 2019 | 1,020,639 | 137 | 331,186 | (6,449) | (6,241) | 651,481 | 50,525 | ||
Beginning Balance at Mar. 31, 2019 | 998,286 | 137 | 324,753 | (7,216) | 2,474 | 627,136 | 51,002 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 29,411 | 29,888 | (477) | ||||||
Other comprehensive loss | (8,544) | (8,544) | |||||||
Amounts reclassified from accumulated other comprehensive loss | (171) | (171) | |||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 2,492 | 1,738 | 754 | ||||||
Dividends declared per common share | (5,530) | (5,530) | |||||||
Stock award purchase price accounting adjustment | 4,695 | 4,695 | |||||||
Restricted share award dividend equivalents | 0 | 13 | (13) | ||||||
Ending Balance at Jun. 30, 2019 | 1,020,639 | 137 | 331,186 | (6,449) | (6,241) | 651,481 | 50,525 | ||
Beginning Balance at Dec. 31, 2019 | 1,195,655 | 137 | 345,359 | (7,342) | (7,231) | 642,687 | 222,045 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (31,078) | (7,222) | (23,856) | ||||||
Other comprehensive loss | (21,208) | (21,208) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 2,194 | 2,194 | |||||||
Contributions from noncontrolling interests | 4,409 | 4,409 | |||||||
Distributions to noncontrolling interests | (10,298) | (10,298) | |||||||
Noncontrolling interests recognized in connection with business combination | (64) | (459) | 395 | ||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 3,986 | 1 | (1,170) | 5,998 | (843) | ||||
Dividends declared per common share | (11,513) | (11,513) | |||||||
Restricted share award dividend equivalents | 0 | 391 | (391) | ||||||
Ending Balance at Jun. 30, 2020 | 1,132,083 | 138 | 343,730 | (953) | (26,245) | 622,718 | 192,695 | ||
Beginning Balance at Mar. 31, 2020 | 1,113,862 | 137 | 341,382 | (652) | (27,649) | 599,039 | 201,605 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 20,032 | 30,439 | (10,407) | ||||||
Other comprehensive loss | (234) | (234) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 1,638 | 1,638 | |||||||
Contributions from noncontrolling interests | 1,102 | 1,102 | |||||||
Noncontrolling interests recognized in connection with business combination | (64) | (459) | 395 | ||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 1,511 | 1 | 2,807 | (454) | (843) | ||||
Dividends declared per common share | (5,764) | (5,764) | |||||||
Restricted share award dividend equivalents | 0 | 153 | (153) | ||||||
Ending Balance at Jun. 30, 2020 | $ 1,132,083 | $ 138 | $ 343,730 | $ (953) | $ (26,245) | $ 622,718 | $ 192,695 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Number Of Common Shares Issued For Cash | 181 | 740 | |
Dividends declared, per common share (in dollars per share) | $ 0.175 | $ 0.1700 | |
Adoption of accounting standard, income tax | $ 237 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2020 | |
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”), its majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The portion of these entities that is not owned by the Company is presented as noncontrolling interests. All intercompany accounts and transactions are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to current year presentation. 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, 2020. An unaudited Condensed Consolidated Balance Sheet as of June 30, 2019 has been included as the Company operates in several seasonal industries. The Condensed Consolidated Balance Sheet data at December 31, 2019 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. 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, 2019 (the “2019 Form 10-K”). Recent Accounting Guidance Issued Not Yet Effective Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The provisions of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The impact of this update on our consolidated financial statements is currently being assessed. At this time the Company does not plan to early adopt the standard. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major classes of inventories are as follows: (in thousands) June 30, December 31, June 30, Grain and other agricultural products $ 452,339 $ 907,482 $ 603,318 Frac sand and propane 6,498 15,438 9,287 Ethanol and co-products 63,195 95,432 26,185 Plant nutrients and cob products 87,346 146,164 109,156 Railcar repair parts 6,945 6,020 5,695 Total Inventories $ 616,323 $ 1,170,536 $ 753,641 Inventories on the Condensed Consolidated Balance Sheets do not include 1.7 million, 6.4 million and 1.3 million bushels of grain held in storage for others as of June 30, 2020, December 31, 2019 and June 30, 2019, respectively. 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, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of Property, plant and equipment, net are as follows: (in thousands) June 30, December 31, June 30, Land $ 40,188 $ 40,442 $ 39,241 Land improvements and leasehold improvements 96,028 103,148 84,127 Buildings and storage facilities 377,652 373,961 327,418 Machinery and equipment 881,144 835,156 514,030 Construction in progress 35,982 59,993 164,532 1,430,994 1,412,700 1,129,348 Less: accumulated depreciation 524,977 474,282 433,521 Property, plant and equipment, net $ 906,017 $ 938,418 $ 695,827 Depreciation expense on property, plant and equipment was $62.3 million and $32.7 million for the six months ended June 30, 2020 and 2019, respectively. Additionally, depreciation expense on property, plant and equipment was $31.2 million and $15.0 million for the three months ended June 30, 2020 and 2019, respectively. In the second quarter of 2019, the Company recorded a $3.1 million impairment related to its remaining Tennessee facilities in the Trade group. The Company wrote down the assets to the extent their carrying values exceeded their fair value. The Company classified the significant assumptions used to determine the fair value of the impaired assets as Level 3 inputs in the fair value hierarchy. 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 $ 742,107 $ 723,004 $ 688,320 Less: accumulated depreciation 149,286 138,706 128,609 Rail Group assets, net $ 592,821 $ 584,298 $ 559,711 Depreciation expense on Rail Group assets leased to others amounted to $15.4 million and $13.7 million for the six months ended June 30, 2020 and 2019, respectively. Additionally, depreciation expense on Rail Group assets leased to others amounted to $7.7 million and $7.0 million for the three months ended June 30, 2020 and 2019, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term and long-term debt at June 30, 2020, December 31, 2019 and June 30, 2019 consisted of the following: (in thousands) June 30, December 31, June 30, Short-term debt – non-recourse $ 43,284 $ 54,029 $ 75,476 Short-term debt – recourse 52,787 93,002 350,649 Total short-term debt $ 96,071 $ 147,031 $ 426,125 Current maturities of long-term debt – non-recourse $ 4,845 $ 9,545 $ 8,903 Current maturities of long-term debt – recourse 63,632 53,354 57,775 Total current maturities of long-term debt $ 68,477 $ 62,899 $ 66,678 Long-term debt, less: current maturities – non-recourse $ 325,819 $ 330,250 $ 198,560 Long-term debt, less: current maturities – recourse 650,154 685,998 808,452 Total long-term debt, less: current maturities $ 975,973 $ 1,016,248 $ 1,007,012 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company’s operating results are affected by changes to commodity prices. The Trade and Ethanol businesses have established “unhedged” futures 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 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. These contracts are primarily traded via regulated commodity exchanges. 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. Most contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year. Most 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 primarily 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 commodity inventories are included in cost of sales and merchandising revenues. 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, 2020, December 31, 2019 and June 30, 2019, 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, 2020 December 31, 2019 June 30, 2019 (in thousands) Net Net Net Net Net Net Cash collateral paid $ 799 $ — $ 56,005 $ — $ 109,346 $ — Fair value of derivatives 21,363 — (10,323) — (5,996) — Balance at end of period $ 22,162 $ — $ 45,682 $ — $ 103,350 $ — The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: June 30, 2020 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 142,110 $ 2,916 $ 5,511 $ 124 $ 150,661 Commodity derivative liabilities (30,820) (214) (70,697) (3,813) (105,544) Cash collateral paid 799 — — — 799 Balance sheet line item totals $ 112,089 $ 2,702 $ (65,186) $ (3,689) $ 45,916 December 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 92,429 $ 1,045 $ 7,439 $ 18 $ 100,931 Commodity derivative liabilities (40,571) (96) (54,381) (523) (95,571) Cash collateral paid 56,005 — — — 56,005 Balance sheet line item totals $ 107,863 $ 949 $ (46,942) $ (505) $ 61,365 June 30, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 166,652 $ 6,748 $ 3,360 $ 57 $ 176,817 Commodity derivative liabilities (42,983) (587) (72,729) (4,042) (120,341) Cash collateral paid 109,346 — — — 109,346 Balance sheet line item totals $ 233,015 $ 6,161 $ (69,369) $ (3,985) $ 165,822 The net pre-tax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line item in which they are located for the three and six months ended June 30, 2020 and 2019 are as follows: Three months ended June 30, Six months ended June 30, 2020 (in thousands) 2020 2019 2020 2019 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ 8,797 $ (13,364) $ 39,757 $ 57,291 The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at June 30, 2020, December 31, 2019 and June 30, 2019: June 30, 2020 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 437,275 — — — Soybeans 50,012 — — — Wheat 95,133 — — — Oats 49,053 — — — Ethanol — 141,549 — — Corn oil — — 8,098 — Other 25,005 5,000 415 2,370 Subtotal 656,478 146,549 8,513 2,370 Exchange traded: Corn 287,840 — — — Soybeans 36,970 — — — Wheat 67,040 — — — Oats 685 — — — Ethanol — 27,300 — — Propane — 28,602 — — Other — 13,650 340 208 Subtotal 392,535 69,552 340 208 Total 1,049,013 216,101 8,853 2,578 December 31, 2019 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 552,359 — — — Soybeans 34,912 — — — Wheat 100,996 — — — Oats 24,700 — — — Ethanol — 116,448 — — Corn oil — — 14,568 — Other 11,363 4,000 305 2,263 Subtotal 724,330 120,448 14,873 2,263 Exchange traded: Corn 221,740 — — — Soybeans 39,145 — — — Wheat 68,171 — — — Oats 2,090 — — — Ethanol — 175,353 — — Propane — 5,166 — — Other — 15 — 232 Subtotal 331,146 180,534 — 232 Total 1,055,476 300,982 14,873 2,495 June 30, 2019 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 648,434 — — — Soybeans 59,594 — — — Wheat 93,621 — — — Oats 40,582 — — — Ethanol — 211,352 — — Corn oil — — 8,809 — Other 23,875 2,532 — 3,179 Subtotal 866,106 213,884 8,809 3,179 Exchange traded: Corn 317,405 — — — Soybeans 52,762 — — — Wheat 55,150 — — — Oats 1,045 — — — Ethanol — 82,988 — — Propane — 13,230 — — Other — 35 — 180 Subtotal 426,362 96,253 — 180 Total 1,292,468 310,137 8,809 3,359 Interest Rate and Other Derivatives The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The gains or losses on the derivatives designated as hedging instruments are recorded in Other Comprehensive Income (Loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. At June 30, 2020, December 31, 2019 and June 30, 2019, the Company had recorded the following amounts for the fair value of the Company's other derivatives: (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 Derivatives not designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ (1,174) $ — $ — Interest rate contracts included in Other long-term liabilities (553) (1,007) (10,750) Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) 791 2,742 (22) Derivatives designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities (8,806) (3,118) — Interest rate contracts included in Other long-term liabilities $ (24,388) $ (9,382) $ (10,587) The recording of derivatives gains and losses and the financial statement line in which they are located are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest income (expense), net $ 186 $ (1,065) $ (720) $ (2,055) Foreign currency derivative losses included in Other income (loss), net — (366) — (1,833) Derivatives designated as hedging instruments Interest rate derivative losses included in Other Comprehensive Income (Loss) (2,475) (7,926) (20,657) (12,917) Interest rate derivatives gains (losses) included in Interest income (expense), net $ (1,917) $ — $ (2,700) $ 165 Outstanding interest rate derivatives, as of June 30, 2020, are as follows: Interest Rate Hedging Instrument Year Entered Year of Maturity Initial Notional Amount Description Interest Rate Long-term Swap 2014 2023 $ 23.0 Interest rate component of debt - not accounted for as a hedge 1.9% Collar 2016 2021 $ 40.0 Interest rate component of debt - not accounted for as a hedge 3.5% to 4.8% Swap 2017 2022 $ 20.0 Interest rate component of debt - accounted for as a hedge 1.8% Swap 2018 2023 $ 10.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2025 $ 20.0 Interest rate component of debt - accounted for as a hedge 2.7% Swap 2018 2021 $ 40.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2021 $ 25.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2021 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 100.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.8% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.7% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Many of the Company’s revenues are generated from contracts that are outside the scope of ASC 606 and thus are accounted for under other accounting standards. Specifically, many of the Company's Trade and Ethanol sales contracts are derivatives under ASC 815, Derivatives and Hedging and the Rail Group's leasing revenue is accounted for under ASC 842, Leases . The breakdown of revenues between ASC 606 and other standards is as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Revenues under ASC 606 $ 459,105 $ 494,266 $ 806,607 $ 809,438 Revenues under ASC 842 24,768 31,836 50,319 60,704 Revenues under ASC 815 1,406,307 1,798,939 2,886,360 3,431,691 Total Revenues $ 1,890,180 $ 2,325,041 $ 3,743,286 $ 4,301,833 The remainder of this note applies only to those revenues that are accounted for under ASC 606. Disaggregation of revenue The following tables disaggregate revenues under ASC 606 by major product/service line for the three and six months ended June 30, 2020 and 2019, respectively: Three months ended June 30, 2020 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 82,634 $ — $ 82,634 Primary nutrients — — 188,463 — 188,463 Services 2,357 — 2,596 8,658 13,611 Products and co-products 63,344 75,773 — — 139,117 Frac sand and propane 21,439 — — — 21,439 Other 5,330 352 6,132 2,027 13,841 Total $ 92,470 $ 76,125 $ 279,825 $ 10,685 $ 459,105 Three months ended June 30, 2019 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ 31,870 $ — $ 87,665 $ — $ 119,535 Primary nutrients 22,364 — 174,907 — 197,271 Service 7,745 3,547 1,696 9,278 22,266 Products and co-products 55,943 32,047 — — 87,990 Frac sand and propane 56,767 — — — 56,767 Other 2,537 35 6,309 1,556 10,437 Total $ 177,226 $ 35,629 $ 270,577 $ 10,834 $ 494,266 Six months ended June 30, 2020 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 155,865 $ — $ 155,865 Primary nutrients — — 234,153 — 234,153 Service 4,043 — 2,778 17,394 24,215 Products and co-products 116,509 177,472 — — 293,981 Frac sand and propane 71,314 — — — 71,314 Other 9,318 968 11,942 4,851 27,079 Total $ 201,184 $ 178,440 $ 404,738 $ 22,245 $ 806,607 Six months ended June 30, 2019 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ 35,808 $ — $ 156,065 $ — $ 191,873 Primary nutrients 22,791 — 227,996 — 250,787 Service 8,570 6,983 1,858 19,225 36,636 Products and co-products 118,701 53,517 — — 172,218 Frac sand and propane 137,230 — — — 137,230 Other 3,697 35 13,183 3,779 20,694 Total $ 326,797 $ 60,535 $ 399,102 $ 23,004 $ 809,438 Approximately 3% and 4% of revenues accounted for under ASC 606 during both three months periods ended June 30, 2020 and 2019, respectively, are recorded over time which primarily relates to service revenues noted above. Additionally, during the six months ended June 30, 2020 and 2019, approximately 3% and 4% of revenues were accounted for under ASC 606, respectively. Contract balances The balances of the Company’s contract liabilities were $9.7 million and $28.5 million as of June 30, 2020 and December 31, 2019, respectively. The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. The main driver of the contract liabilities balance is payments for primary and specialty nutrients received in advance of fulfilling our performance obligations under our customer contracts. Further, due to seasonality of this business, contract liabilities were built up at year-end and through the first quarter of the year in preparation for the spring planting season. In the second quarter, the decrease in liabilities is due to the revenue recognized in the current period as the built up liabilities were relieved as obligations were met. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Historically, we calculated our provision for income taxes during interim reporting periods by applying the estimated annual effective tax rate for the full fiscal year to pre-tax income or loss, excluding discrete items, for the reporting period. We determined that since small changes in estimated pre-tax income or loss would result in significant changes in the estimated annual effective tax rate, the historical method would not provide a reliable estimate of income taxes in the second quarter of 2020. For the six months ended on June 30, 2020, the Company utilized the discrete effective tax rate method to calculate the interim tax provision. The discrete method treats the year-to-date period as if it were the annual period and determines the income tax expense or benefit on that basis. The discrete method is applied for scenarios where small changes in estimated pre-tax book income would result in significant changes in the estimated annual effective tax rate that may result in an unreliable estimate of income taxes. For the three months ended June 30, 2020, the Company recorded an income tax benefit of $12.2 million at an effective income tax rate of 155.8%. The annual effective tax rate differs from the statutory U.S. Federal tax rate as the tax expense from consolidated pre-tax income is offset by tax benefits from the portion of income owned by noncontrolling interests and net operating loss carrybacks as a result of the CARES Act. The change in effective tax rate for the three months ended June 30, 2020 as compared to the same period last year was primarily attributed to the impacts of the portion of pre-tax book income owned by noncontrolling interests, coupled with additional benefits from the CARES Act. For the three months ended June 30, 2019, the Company recorded an income tax expense of $11.0 million at an effective income tax rate of 27.2%. For the six months ended June 30, 2020, the Company recorded an income tax benefit of $13.7 million at an effective income tax rate of 30.5%. The annual effective tax rate differs from the statutory U.S. Federal tax rate as the tax benefit from consolidated pre-tax losses is offset by the portion of losses owned by noncontrolling interests that do not provide for a tax benefit, as well as impacts from foreign earnings, GILTI, and non-deductible compensation. These impacts are further offset by tax benefits from net operating loss carry backs as a result of the CARES Act. The increase in effective tax rate for the six months ended June 30, 2020 as compared to the same period last year was primarily attributed to the tax benefit generated from the current period loss before taxes offset by the effect of noncontrolling interest in the discrete effective tax rate, and additional tax benefits from net operating loss carry backs as a result of the CARES Act. For the six months ended June 30, 2019, the Company recorded an income tax expense of $5.6 million at an effective income tax rate of 26.7%. The 2020 effective tax rate can be affected by variances in the estimates and amounts of taxable income among the various states, entities and activity types, realization of tax credits, adjustments from resolution of tax matters under review, valuation allowances and the Company’s assessment of its liability for uncertain tax positions. The amount of unrecognized tax benefits for uncertain tax positions was $24.7 million as of June 30, 2020, and $0.6 million for the period ended June 30, 2019. The unrecognized tax benefits of $24.7 million include $22.3 million recorded as a reduction of the deferred tax asset and refundable credits associated with the R&D Credits. On March 27, 2020, President Trump signed into U.S. federal law the CARES Act, which is aimed at providing emergency assistance and health care for individuals, families and businesses affected by the COVID-19 pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 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, 2020 and 2019: Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended June 30, 2020 Six months ended June 30, 2020 (in thousands) Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning balance $ (23,106) $ (5,574) $ 258 $ 773 $ (27,649) $ (9,443) $ 1,065 $ 258 $ 889 $ (7,231) Other comprehensive loss before reclassifications (3,669) 3,249 — 186 (234) (18,059) (3,390) — 241 (21,208) Amounts reclassified from accumulated other comprehensive income (loss) 1,809 — — (171) 1,638 2,536 — — (342) 2,194 Net current-period other comprehensive income (loss) (1,860) 3,249 — 15 1,404 (15,523) (3,390) — (101) (19,014) Ending balance $ (24,966) $ (2,325) $ 258 $ 788 $ (26,245) $ (24,966) $ (2,325) $ 258 $ 788 $ (26,245) (a) All amounts are net of tax. Amounts in parentheses indicate debits. Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended June 30, 2019 Six months ended June 30, 2019 (in thousands) Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning balance $ (3,748) $ 1,059 $ 258 $ 4,905 $ 2,474 $ (126) $ (11,550) $ 258 $ 5,031 $ (6,387) Other comprehensive loss before reclassifications (5,952) (2,035) — (557) (8,544) (9,710) (1,092) — (512) (11,314) Amounts reclassified from accumulated other comprehensive income (loss) (b) — — — (171) (171) 136 11,666 — (342) 11,460 Net current-period other comprehensive income (loss) (5,952) (2,035) — (728) (8,715) (9,574) 10,574 — (854) 146 Ending balance $ (9,700) $ (976) $ 258 $ 4,177 $ (6,241) $ (9,700) $ (976) $ 258 $ 4,177 $ (6,241) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) Reflects foreign currency translation adjustments attributable to the consolidation of Thompsons Limited. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended June 30, 2020 Six months ended June 30, 2020 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 $ (228) (b) $ (456) (b) (228) Total before tax (456) Total before tax 57 Income tax provision (benefit) 114 Income tax provision $ (171) Net of tax $ (342) Net of tax Cash Flow Hedges Interest payments $ 2,412 Interest expense $ 3,381 Interest expense 2,412 Total before tax 3,381 Total before tax (603) Income tax provision (845) Income tax provision $ 1,809 Net of tax $ 2,536 Net of tax Total reclassifications for the period $ 1,638 Net of tax $ 2,194 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. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended June 30, 2019 Six months ended June 30, 2019 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 $ (228) (b) $ (456) (b) (228) Total before tax (456) Total before tax 57 Income tax provision (benefit) 114 Income tax provision $ (171) Net of tax $ (342) Net of tax Cash Flow Hedges Interest payments $ — Interest expense $ 182 Interest expense — Total before tax 182 Total before tax — Income tax provision (46) Income tax provision $ — Net of tax $ 136 Net of tax Foreign Currency Translation Adjustment Realized loss on pre-existing investment $ — Other income, net $ 11,666 Other income, net — Total before tax 11,666 Total before tax — Income tax provision — Income tax provision $ — Net of tax $ 11,666 Net of tax Total reclassifications for the period $ (171) Net of tax $ 11,460 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share (in thousands, except per common share data) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Net income (loss) attributable to The Andersons, Inc. $ 30,439 $ 29,888 $ (7,222) $ 15,895 Earnings per share – basic: Weighted average shares outstanding – basic 32,932 32,521 32,876 32,511 Earnings per common share – basic $ 0.92 $ 0.92 $ (0.22) $ 0.49 Earnings per share – diluted: Weighted average shares outstanding – basic 32,932 32,521 32,876 32,511 Effect of dilutive awards 77 212 — 560 Weighted average shares outstanding – diluted 33,009 32,733 32,876 33,071 Earnings per common share – diluted $ 0.92 $ 0.91 $ (0.22) $ 0.48 Outstanding share awards were 471 thousand and 33 thousand antidilutive for the three months ended June 30, 2020 and June 30, 2019, respectively. There were no antidilutive awards for the six months ended June 30, 2020 as the Company incurred a net loss in the period. There were 61 thousand antidilutive share awards outstanding for the six months ended June 30, 2019. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020, December 31, 2019 and June 30, 2019: (in thousands) June 30, 2020 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 22,162 $ 23,754 $ — $ 45,916 Provisionally priced contracts (b) (15,139) (41,897) — (57,036) Convertible preferred securities (c) — — 8,654 8,654 Other assets and liabilities (d) 4,102 (34,922) — (30,820) Total $ 11,125 $ (53,065) $ 8,654 $ (33,286) (in thousands) December 31, 2019 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 45,682 $ 15,683 $ — $ 61,365 Provisionally priced contracts (b) (118,414) (68,237) — (186,651) Convertible preferred securities (c) — — 8,404 8,404 Other assets and liabilities (d) 9,469 (13,507) — (4,038) Total $ (63,263) $ (66,061) $ 8,404 $ (120,920) (in thousands) June 30, 2019 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 103,350 $ 62,472 $ — $ 165,822 Provisionally priced contracts (b) (1,064) (38,215) — (39,279) Convertible preferred securities (c) — — 8,404 8,404 Other assets and liabilities (d) 5,284 (10,750) — (5,466) Total $ 107,570 $ 13,507 $ 8,404 $ 129,481 (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 assets, net” on the Company’s Consolidated Balance Sheets related to certain available for sale securities. (d) Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1) and interest rate derivatives (Level 2). Level 1 commodity derivatives reflect the fair value of the exchanged-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 quoted on various exchanges 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 typically a Level 2 fair value input for purposes of the fair value disclosure requirements related to our commodity derivatives, depending on the specific commodity. 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 significant input to fair value for these commodity contracts. These fair value disclosures exclude physical 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 future changes in the grain price, quoted exchange 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 exchange prices and as such, the balance is deemed to be Level 1 in the fair value hierarchy. The convertible preferred securities are interests in several early-stage enterprises that may be in various forms, such as convertible debt or preferred equity securities. A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: Convertible Preferred Securities (in thousands) 2020 2019 Assets (liabilities) at January 1, $ 8,404 $ 7,154 Additional investments 250 250 Assets (liabilities) at March 31, $ 8,654 $ 7,404 Additional investments — 1,000 Asset (liabilities) at June 30, $ 8,654 $ 8,404 The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of June 30, 2020, December 31, 2019 and June 30, 2019: Quantitative Information about Recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of June 30, 2020 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,654 Implied based on market prices N/A N/A (in thousands) Fair Value as of December 31, 2019 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,404 Implied based on market prices N/A N/A (in thousands) Fair Value as of June 30, 2019 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,404 Implied based on market prices N/A N/A (a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points. Quantitative Information about Non-recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of December 31, 2019 Valuation Method Unobservable Input Weighted Average Frac sand assets (a) $ 16,546 Third party appraisal Various N/A Real property (b) 608 Market approach Various N/A Equity method investment (c) 12,424 Discounted cash flow analysis Various N/A Fair Value as of June 30, 2019 Valuation Method Unobservable Input Weighted Average Real property (d) $ 2,719 Market Approach N/A N/A (a) The Company recognized impairment charges on long lived related to its frac sand business. The fair value of the assets were determined using prior transactions and third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis. (b) The Company recognized impairment charges on certain Trade assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets were determined using prior transactions in the local market and a recent sale of comparable Trade group assets held by the Company. (c) The Company recorded an other-than-temporary impairment charge on an existing equity method investment. The fair value of the investment was determined using a discounted cash flow analysis. (d) The Company recognized impairment charges on certain assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets was determined using prior transactions in the local market and a pending sale of grain assets held by the Company. There were no non-recurring fair value measurements as of June 30, 2020. 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 $ 1,090,059 $ 1,096,010 $ 1,078,185 Fair value in excess of carrying value (a) 37,963 8,257 4,495 (a) Carrying value used for this purpose excludes unamortized debt issuance costs. 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 Parties
Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties In the ordinary course of business and on an arms-length basis, the Company will mainly enter into related party transactions with the minority shareholders of the Company's ethanol operations and several equity method investments that the Company holds, 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) 2020 2019 2020 2019 Sales revenues $ 29,659 $ 57,854 $ 84,353 $ 119,022 Service fee revenues (a) — 4,052 — 8,163 Purchases of product and capital assets 6,419 176,442 21,996 345,671 Lease income (b) 151 1,645 298 3,309 Labor and benefits reimbursement (c) — 3,602 — 7,460 (a) Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. These revenues are now eliminated in consolidation as a result of the TAMH merger. (b) Lease income includes certain railcars leased to related parties and the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities from the prior period and are now eliminated in consolidation as a result of the TAMH merger. (c) Prior to the TAMH merger the Company provided all operations labor to the unconsolidated ethanol LLCs and charged them an amount equal to the Company's costs of the related services for the prior periods. (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 Accounts receivable (d) $ 7,332 $ 10,603 $ 19,515 Accounts payable (e) 2,598 12,303 24,700 (d) Accounts receivable represents amounts due from related parties for the sale of ethanol and other various items. (e) Accounts payable represents amounts due to related parties for purchases of ethanol equipment and other various items. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s operations include four reportable business segments that are distinguished primarily on the basis of products and services offered. The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The Ethanol business produces ethanol through its five co-owned and fully consolidated ethanol production facilities as well as purchases and sells ethanol and ethanol co-products. The Plant Nutrient business manufactures and distributes agricultural inputs, primarily fertilizer, to dealers and farmers, along with turf care and corncob-based products. Rail operations include the leasing, marketing and fleet management of railcars and other assets, railcar repair and metal fabrication. The Other category includes other corporate level costs not attributable to an operating segment. In January 2020, the Company moved its Lansing Vermont DDG business from the Trade group to the Ethanol group as part of internal restructuring efforts. Prior year results have been recast to reflect this change. 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 revenue. Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Revenues from external customers Trade $ 1,351,168 $ 1,700,581 $ 2,729,209 $ 3,238,267 Ethanol 223,745 310,867 536,784 580,033 Plant Nutrient 279,825 270,577 404,738 399,102 Rail 35,442 43,016 72,555 84,431 Total $ 1,890,180 $ 2,325,041 $ 3,743,286 $ 4,301,833 Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Inter-segment sales Trade $ 432 $ 631 $ 1,040 $ 812 Plant Nutrient 635 1,274 1,523 1,294 Rail 1,388 771 2,993 2,046 Total $ 2,455 $ 2,676 $ 5,556 $ 4,152 Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Income (loss) before income taxes, net of noncontrolling interests Trade $ 393 $ 22,631 $ (9,591) $ 4,729 Ethanol 868 3,749 (23,108) 6,760 Plant Nutrient 19,407 15,903 18,215 11,974 Rail 2,606 3,180 3,613 7,492 Other (5,035) (4,578) (10,015) (9,505) Income (loss) before income taxes, net of noncontrolling interests 18,239 40,885 (20,886) 21,450 Net loss attributable to noncontrolling interests (10,407) (477) (23,856) (632) Income (loss) before income taxes $ 7,832 $ 40,408 $ (44,742) $ 20,818 (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 Identifiable assets Trade $ 1,515,817 $ 2,012,060 $ 2,057,305 Ethanol 642,394 690,548 361,522 Plant Nutrient 342,690 383,781 381,924 Rail 656,573 693,931 657,617 Other 146,515 120,421 113,491 Total $ 3,303,989 $ 3,900,741 $ 3,571,859 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe 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 Company recorded a $5.0 million reserve relating to an outstanding non-regulatory litigation claim, based upon preliminary settlement negotiations in the first quarter of 2019. The claim is in response to penalties and fines paid to regulatory entities by a previously unconsolidated subsidiary in 2018 for the settlement of matters which focused on certain trading activity. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 and 2019 are as follows: Six months ended June 30, (in thousands) 2020 2019 Supplemental disclosure of cash flow information Interest paid $ 27,168 $ 30,287 Noncash investing and financing activity Dividends declared not yet paid 5,764 5,530 Capital projects incurred but not yet paid 4,070 15,317 Equity issued in conjunction with acquisition — 127,841 Removal of pre-existing equity method investment — (159,459) Purchase price holdback/ other accrued liabilities — 31,885 |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisition On October 1, 2019, The Andersons entered into an agreement with Marathon to merge TAAE, TACE, TAME and the Company's wholly-owned subsidiary, The Andersons Denison Ethanol LLC into a new legal entity, The Andersons Marathon Holdings LLC. As a result of the merger, The Andersons and Marathon now own 50.1% and 49.9% of the equity in TAMH, respectively. Total consideration transferred by the Company to complete the acquisition of TAMH was $182.9 million. The Company transferred non-cash consideration of $7.3 million and its equity values of the previously mentioned LLCs. The purchase price allocation was finalized in the second quarter of 2020. A summarized purchase price allocation is as follows: (in thousands) Non-cash consideration $ 7,318 Investments contributed at fair value 124,662 Investment contributed at cost 50,875 Total purchase price consideration $ 182,855 The final purchase price allocation at October 1, 2019, is as follows: (in thousands) Cash and cash equivalents $ 47,042 Accounts receivable 12,175 Inventories 31,765 Other current assets 2,638 Goodwill 3,075 Right of use asset 5,200 Other assets, net 861 Property, plant and equipment, net 321,380 424,136 Trade and other payables 13,461 Accrued expense and other current liabilities 3,011 Other long-term liabilities 292 Long-term lease liabilities 2,230 Long-term debt, including current maturities 47,886 66,880 Noncontrolling Interest 174,401 Net Assets Acquired $ 182,855 Removal of preexisting ownership interest $ (88,426) Pre-tax gain on derecognition of preexisting ownership interest $ 36,286 Asset and liability account balances in the opening balance sheet above include the previously consolidated TADE investment balances at carryover basis. The $3.1 million of goodwill recognized is primarily attributable to expected synergies and the assembled workforce of TAMH. None of the goodwill is deductible for income tax purposes. Due to finalization of the purchase price accounting as well as adjustments to deferred income taxes during the second quarter, goodwill increased $0.4 million, other long-term liabilities increased $0.1 million and noncontrolling interest increased $0.3 million. The fair value in the opening balance sheet of the 49.9% noncontrolling interest in TAMH was finalized at $174.4 million. The fair value was based on 49.9% of the total equity value of TAMH based on the transaction price for the 50.1% stake in TAMH, considering the consideration transferred noted above. Pro Forma Financial Information (Unaudited) The summary pro forma financial information for the periods presented below gives effect on Consolidated Company results to the TAMH acquisition as if it had occurred at January 1, 2019. Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Net sales $ 1,890,180 $ 2,377,250 $ 3,743,286 $ 4,408,760 Net income (loss) 20,032 24,975 (31,078) 9,747 Pro forma net income was also adjusted to account for the tax effects of the pro forma adjustments noted above using a statutory tax rate of 25%. The pro forma amounts for net income above have been adjusted to reflect additional depreciation and amortization that would have been charged assuming the fair value adjustments to Property, plant and equipment had been applied on January 1, 2019 related to the TAMH merger. Pro forma financial information is not necessarily indicative of the Company's actual results of operations if the acquisition had been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost savings that the Company believes are achievable. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill During the first quarter the Company completed a reorganization of its structure whereby the Company moved its operations between the Trade and Ethanol segments to enhance operating decisions and assessing performance. On January 1, 2020, the Company moved its Distillers Dried Grains ("DDG") business from the Trade to Ethanol segment. The reorganization resulted in the reassignment of goodwill to the affected reporting units using a relative fair value approach. At the time of the reassignment and allocation, the Company performed an interim review of the carrying value of goodwill at the Trade and Ethanol segments for possible impairment on both a pre and post-reorganization basis. No impairment of goodwill was indicated at the pre-reorganization reporting units. The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2020 are as follows: (in thousands) Trade Ethanol Plant Nutrient Rail Total Balance as of January 1, 2020 $ 127,781 $ 2,726 $ 686 $ 4,167 $ 135,360 Reorganization (a) (5,714) 5,714 — — — Acquisitions (b) — 349 — — 349 Balance as of June 30, 2020 $ 122,067 $ 8,789 $ 686 $ 4,167 $ 135,709 (a) Reorganization related to move of the DDG business line from the Trade to Ethanol segment. (b) Acquisitions represent the TAMH acquisitions finalized goodwill allocation. |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | Recent Accounting Guidance Issued Not Yet Effective Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The provisions of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The impact of this update on our consolidated financial statements is currently being assessed. At this time the Company does not plan to early adopt the standard. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory, Net [Abstract] | |
Classes of inventories | Major classes of inventories are as follows: (in thousands) June 30, December 31, June 30, Grain and other agricultural products $ 452,339 $ 907,482 $ 603,318 Frac sand and propane 6,498 15,438 9,287 Ethanol and co-products 63,195 95,432 26,185 Plant nutrients and cob products 87,346 146,164 109,156 Railcar repair parts 6,945 6,020 5,695 Total Inventories $ 616,323 $ 1,170,536 $ 753,641 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | The components of Property, plant and equipment, net are as follows: (in thousands) June 30, December 31, June 30, Land $ 40,188 $ 40,442 $ 39,241 Land improvements and leasehold improvements 96,028 103,148 84,127 Buildings and storage facilities 377,652 373,961 327,418 Machinery and equipment 881,144 835,156 514,030 Construction in progress 35,982 59,993 164,532 1,430,994 1,412,700 1,129,348 Less: accumulated depreciation 524,977 474,282 433,521 Property, plant and equipment, net $ 906,017 $ 938,418 $ 695,827 |
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 $ 742,107 $ 723,004 $ 688,320 Less: accumulated depreciation 149,286 138,706 128,609 Rail Group assets, net $ 592,821 $ 584,298 $ 559,711 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Debt | Short-term and long-term debt at June 30, 2020, December 31, 2019 and June 30, 2019 consisted of the following: (in thousands) June 30, December 31, June 30, Short-term debt – non-recourse $ 43,284 $ 54,029 $ 75,476 Short-term debt – recourse 52,787 93,002 350,649 Total short-term debt $ 96,071 $ 147,031 $ 426,125 Current maturities of long-term debt – non-recourse $ 4,845 $ 9,545 $ 8,903 Current maturities of long-term debt – recourse 63,632 53,354 57,775 Total current maturities of long-term debt $ 68,477 $ 62,899 $ 66,678 Long-term debt, less: current maturities – non-recourse $ 325,819 $ 330,250 $ 198,560 Long-term debt, less: current maturities – recourse 650,154 685,998 808,452 Total long-term debt, less: current maturities $ 975,973 $ 1,016,248 $ 1,007,012 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 December 31, 2019 June 30, 2019 (in thousands) Net Net Net Net Net Net Cash collateral paid $ 799 $ — $ 56,005 $ — $ 109,346 $ — Fair value of derivatives 21,363 — (10,323) — (5,996) — Balance at end of period $ 22,162 $ — $ 45,682 $ — $ 103,350 $ — |
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, 2020 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 142,110 $ 2,916 $ 5,511 $ 124 $ 150,661 Commodity derivative liabilities (30,820) (214) (70,697) (3,813) (105,544) Cash collateral paid 799 — — — 799 Balance sheet line item totals $ 112,089 $ 2,702 $ (65,186) $ (3,689) $ 45,916 December 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 92,429 $ 1,045 $ 7,439 $ 18 $ 100,931 Commodity derivative liabilities (40,571) (96) (54,381) (523) (95,571) Cash collateral paid 56,005 — — — 56,005 Balance sheet line item totals $ 107,863 $ 949 $ (46,942) $ (505) $ 61,365 June 30, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 166,652 $ 6,748 $ 3,360 $ 57 $ 176,817 Commodity derivative liabilities (42,983) (587) (72,729) (4,042) (120,341) Cash collateral paid 109,346 — — — 109,346 Balance sheet line item totals $ 233,015 $ 6,161 $ (69,369) $ (3,985) $ 165,822 |
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, 2020, December 31, 2019 and June 30, 2019: June 30, 2020 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 437,275 — — — Soybeans 50,012 — — — Wheat 95,133 — — — Oats 49,053 — — — Ethanol — 141,549 — — Corn oil — — 8,098 — Other 25,005 5,000 415 2,370 Subtotal 656,478 146,549 8,513 2,370 Exchange traded: Corn 287,840 — — — Soybeans 36,970 — — — Wheat 67,040 — — — Oats 685 — — — Ethanol — 27,300 — — Propane — 28,602 — — Other — 13,650 340 208 Subtotal 392,535 69,552 340 208 Total 1,049,013 216,101 8,853 2,578 December 31, 2019 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 552,359 — — — Soybeans 34,912 — — — Wheat 100,996 — — — Oats 24,700 — — — Ethanol — 116,448 — — Corn oil — — 14,568 — Other 11,363 4,000 305 2,263 Subtotal 724,330 120,448 14,873 2,263 Exchange traded: Corn 221,740 — — — Soybeans 39,145 — — — Wheat 68,171 — — — Oats 2,090 — — — Ethanol — 175,353 — — Propane — 5,166 — — Other — 15 — 232 Subtotal 331,146 180,534 — 232 Total 1,055,476 300,982 14,873 2,495 June 30, 2019 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 648,434 — — — Soybeans 59,594 — — — Wheat 93,621 — — — Oats 40,582 — — — Ethanol — 211,352 — — Corn oil — — 8,809 — Other 23,875 2,532 — 3,179 Subtotal 866,106 213,884 8,809 3,179 Exchange traded: Corn 317,405 — — — Soybeans 52,762 — — — Wheat 55,150 — — — Oats 1,045 — — — Ethanol — 82,988 — — Propane — 13,230 — — Other — 35 — 180 Subtotal 426,362 96,253 — 180 Total 1,292,468 310,137 8,809 3,359 |
Company's Condensed Consolidated Statement of Income gains and location of line items | The net pre-tax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line item in which they are located for the three and six months ended June 30, 2020 and 2019 are as follows: Three months ended June 30, Six months ended June 30, 2020 (in thousands) 2020 2019 2020 2019 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ 8,797 $ (13,364) $ 39,757 $ 57,291 The recording of derivatives gains and losses and the financial statement line in which they are located are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest income (expense), net $ 186 $ (1,065) $ (720) $ (2,055) Foreign currency derivative losses included in Other income (loss), net — (366) — (1,833) Derivatives designated as hedging instruments Interest rate derivative losses included in Other Comprehensive Income (Loss) (2,475) (7,926) (20,657) (12,917) Interest rate derivatives gains (losses) included in Interest income (expense), net $ (1,917) $ — $ (2,700) $ 165 |
Schedule of Fair Value of Interest Rate Derivative Liabilities | At June 30, 2020, December 31, 2019 and June 30, 2019, the Company had recorded the following amounts for the fair value of the Company's other derivatives: (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 Derivatives not designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ (1,174) $ — $ — Interest rate contracts included in Other long-term liabilities (553) (1,007) (10,750) Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) 791 2,742 (22) Derivatives designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities (8,806) (3,118) — Interest rate contracts included in Other long-term liabilities $ (24,388) $ (9,382) $ (10,587) |
Schedule of Outstanding Interest Rate Derivatives | Outstanding interest rate derivatives, as of June 30, 2020, are as follows: Interest Rate Hedging Instrument Year Entered Year of Maturity Initial Notional Amount Description Interest Rate Long-term Swap 2014 2023 $ 23.0 Interest rate component of debt - not accounted for as a hedge 1.9% Collar 2016 2021 $ 40.0 Interest rate component of debt - not accounted for as a hedge 3.5% to 4.8% Swap 2017 2022 $ 20.0 Interest rate component of debt - accounted for as a hedge 1.8% Swap 2018 2023 $ 10.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2025 $ 20.0 Interest rate component of debt - accounted for as a hedge 2.7% Swap 2018 2021 $ 40.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2021 $ 25.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2021 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 100.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.8% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.7% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Breakdown of Revenues between ASC 606 | The breakdown of revenues between ASC 606 and other standards is as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Revenues under ASC 606 $ 459,105 $ 494,266 $ 806,607 $ 809,438 Revenues under ASC 842 24,768 31,836 50,319 60,704 Revenues under ASC 815 1,406,307 1,798,939 2,886,360 3,431,691 Total Revenues $ 1,890,180 $ 2,325,041 $ 3,743,286 $ 4,301,833 |
Schedule of Disaggregation of Revenues | The following tables disaggregate revenues under ASC 606 by major product/service line for the three and six months ended June 30, 2020 and 2019, respectively: Three months ended June 30, 2020 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 82,634 $ — $ 82,634 Primary nutrients — — 188,463 — 188,463 Services 2,357 — 2,596 8,658 13,611 Products and co-products 63,344 75,773 — — 139,117 Frac sand and propane 21,439 — — — 21,439 Other 5,330 352 6,132 2,027 13,841 Total $ 92,470 $ 76,125 $ 279,825 $ 10,685 $ 459,105 Three months ended June 30, 2019 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ 31,870 $ — $ 87,665 $ — $ 119,535 Primary nutrients 22,364 — 174,907 — 197,271 Service 7,745 3,547 1,696 9,278 22,266 Products and co-products 55,943 32,047 — — 87,990 Frac sand and propane 56,767 — — — 56,767 Other 2,537 35 6,309 1,556 10,437 Total $ 177,226 $ 35,629 $ 270,577 $ 10,834 $ 494,266 Six months ended June 30, 2020 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 155,865 $ — $ 155,865 Primary nutrients — — 234,153 — 234,153 Service 4,043 — 2,778 17,394 24,215 Products and co-products 116,509 177,472 — — 293,981 Frac sand and propane 71,314 — — — 71,314 Other 9,318 968 11,942 4,851 27,079 Total $ 201,184 $ 178,440 $ 404,738 $ 22,245 $ 806,607 Six months ended June 30, 2019 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ 35,808 $ — $ 156,065 $ — $ 191,873 Primary nutrients 22,791 — 227,996 — 250,787 Service 8,570 6,983 1,858 19,225 36,636 Products and co-products 118,701 53,517 — — 172,218 Frac sand and propane 137,230 — — — 137,230 Other 3,697 35 13,183 3,779 20,694 Total $ 326,797 $ 60,535 $ 399,102 $ 23,004 $ 809,438 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 and 2019: Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended June 30, 2020 Six months ended June 30, 2020 (in thousands) Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning balance $ (23,106) $ (5,574) $ 258 $ 773 $ (27,649) $ (9,443) $ 1,065 $ 258 $ 889 $ (7,231) Other comprehensive loss before reclassifications (3,669) 3,249 — 186 (234) (18,059) (3,390) — 241 (21,208) Amounts reclassified from accumulated other comprehensive income (loss) 1,809 — — (171) 1,638 2,536 — — (342) 2,194 Net current-period other comprehensive income (loss) (1,860) 3,249 — 15 1,404 (15,523) (3,390) — (101) (19,014) Ending balance $ (24,966) $ (2,325) $ 258 $ 788 $ (26,245) $ (24,966) $ (2,325) $ 258 $ 788 $ (26,245) (a) All amounts are net of tax. Amounts in parentheses indicate debits. Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended June 30, 2019 Six months ended June 30, 2019 (in thousands) Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning balance $ (3,748) $ 1,059 $ 258 $ 4,905 $ 2,474 $ (126) $ (11,550) $ 258 $ 5,031 $ (6,387) Other comprehensive loss before reclassifications (5,952) (2,035) — (557) (8,544) (9,710) (1,092) — (512) (11,314) Amounts reclassified from accumulated other comprehensive income (loss) (b) — — — (171) (171) 136 11,666 — (342) 11,460 Net current-period other comprehensive income (loss) (5,952) (2,035) — (728) (8,715) (9,574) 10,574 — (854) 146 Ending balance $ (9,700) $ (976) $ 258 $ 4,177 $ (6,241) $ (9,700) $ (976) $ 258 $ 4,177 $ (6,241) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) Reflects foreign currency translation adjustments attributable to the consolidation of Thompsons Limited. |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended June 30, 2020 Six months ended June 30, 2020 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 $ (228) (b) $ (456) (b) (228) Total before tax (456) Total before tax 57 Income tax provision (benefit) 114 Income tax provision $ (171) Net of tax $ (342) Net of tax Cash Flow Hedges Interest payments $ 2,412 Interest expense $ 3,381 Interest expense 2,412 Total before tax 3,381 Total before tax (603) Income tax provision (845) Income tax provision $ 1,809 Net of tax $ 2,536 Net of tax Total reclassifications for the period $ 1,638 Net of tax $ 2,194 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | (in thousands, except per common share data) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Net income (loss) attributable to The Andersons, Inc. $ 30,439 $ 29,888 $ (7,222) $ 15,895 Earnings per share – basic: Weighted average shares outstanding – basic 32,932 32,521 32,876 32,511 Earnings per common share – basic $ 0.92 $ 0.92 $ (0.22) $ 0.49 Earnings per share – diluted: Weighted average shares outstanding – basic 32,932 32,521 32,876 32,511 Effect of dilutive awards 77 212 — 560 Weighted average shares outstanding – diluted 33,009 32,733 32,876 33,071 Earnings per common share – diluted $ 0.92 $ 0.91 $ (0.22) $ 0.48 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020, December 31, 2019 and June 30, 2019: (in thousands) June 30, 2020 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 22,162 $ 23,754 $ — $ 45,916 Provisionally priced contracts (b) (15,139) (41,897) — (57,036) Convertible preferred securities (c) — — 8,654 8,654 Other assets and liabilities (d) 4,102 (34,922) — (30,820) Total $ 11,125 $ (53,065) $ 8,654 $ (33,286) (in thousands) December 31, 2019 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 45,682 $ 15,683 $ — $ 61,365 Provisionally priced contracts (b) (118,414) (68,237) — (186,651) Convertible preferred securities (c) — — 8,404 8,404 Other assets and liabilities (d) 9,469 (13,507) — (4,038) Total $ (63,263) $ (66,061) $ 8,404 $ (120,920) (in thousands) June 30, 2019 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 103,350 $ 62,472 $ — $ 165,822 Provisionally priced contracts (b) (1,064) (38,215) — (39,279) Convertible preferred securities (c) — — 8,404 8,404 Other assets and liabilities (d) 5,284 (10,750) — (5,466) Total $ 107,570 $ 13,507 $ 8,404 $ 129,481 (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 assets, net” on the Company’s Consolidated Balance Sheets related to certain available for sale securities. (d) Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1) and interest rate derivatives (Level 2). |
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: Convertible Preferred Securities (in thousands) 2020 2019 Assets (liabilities) at January 1, $ 8,404 $ 7,154 Additional investments 250 250 Assets (liabilities) at March 31, $ 8,654 $ 7,404 Additional investments — 1,000 Asset (liabilities) at June 30, $ 8,654 $ 8,404 |
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, 2020, December 31, 2019 and June 30, 2019: Quantitative Information about Recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of June 30, 2020 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,654 Implied based on market prices N/A N/A (in thousands) Fair Value as of December 31, 2019 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,404 Implied based on market prices N/A N/A (in thousands) Fair Value as of June 30, 2019 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,404 Implied based on market prices N/A N/A (a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points. Quantitative Information about Non-recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of December 31, 2019 Valuation Method Unobservable Input Weighted Average Frac sand assets (a) $ 16,546 Third party appraisal Various N/A Real property (b) 608 Market approach Various N/A Equity method investment (c) 12,424 Discounted cash flow analysis Various N/A Fair Value as of June 30, 2019 Valuation Method Unobservable Input Weighted Average Real property (d) $ 2,719 Market Approach N/A N/A (a) The Company recognized impairment charges on long lived related to its frac sand business. The fair value of the assets were determined using prior transactions and third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis. (b) The Company recognized impairment charges on certain Trade assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets were determined using prior transactions in the local market and a recent sale of comparable Trade group assets held by the Company. (c) The Company recorded an other-than-temporary impairment charge on an existing equity method investment. The fair value of the investment was determined using a discounted cash flow analysis. (d) The Company recognized impairment charges on certain assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets was determined using prior transactions in the local market and a pending sale of grain assets held by the Company. |
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | 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 $ 1,090,059 $ 1,096,010 $ 1,078,185 Fair value in excess of carrying value (a) 37,963 8,257 4,495 (a) Carrying value used for this purpose excludes unamortized debt issuance costs. |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | 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) 2020 2019 2020 2019 Sales revenues $ 29,659 $ 57,854 $ 84,353 $ 119,022 Service fee revenues (a) — 4,052 — 8,163 Purchases of product and capital assets 6,419 176,442 21,996 345,671 Lease income (b) 151 1,645 298 3,309 Labor and benefits reimbursement (c) — 3,602 — 7,460 (a) Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. These revenues are now eliminated in consolidation as a result of the TAMH merger. (b) Lease income includes certain railcars leased to related parties and the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities from the prior period and are now eliminated in consolidation as a result of the TAMH merger. (c) Prior to the TAMH merger the Company provided all operations labor to the unconsolidated ethanol LLCs and charged them an amount equal to the Company's costs of the related services for the prior periods. (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 Accounts receivable (d) $ 7,332 $ 10,603 $ 19,515 Accounts payable (e) 2,598 12,303 24,700 (d) Accounts receivable represents amounts due from related parties for the sale of ethanol and other various items. (e) Accounts payable represents amounts due to related parties for purchases of ethanol equipment and other various items. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 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 revenue. Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Revenues from external customers Trade $ 1,351,168 $ 1,700,581 $ 2,729,209 $ 3,238,267 Ethanol 223,745 310,867 536,784 580,033 Plant Nutrient 279,825 270,577 404,738 399,102 Rail 35,442 43,016 72,555 84,431 Total $ 1,890,180 $ 2,325,041 $ 3,743,286 $ 4,301,833 Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Inter-segment sales Trade $ 432 $ 631 $ 1,040 $ 812 Plant Nutrient 635 1,274 1,523 1,294 Rail 1,388 771 2,993 2,046 Total $ 2,455 $ 2,676 $ 5,556 $ 4,152 Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Income (loss) before income taxes, net of noncontrolling interests Trade $ 393 $ 22,631 $ (9,591) $ 4,729 Ethanol 868 3,749 (23,108) 6,760 Plant Nutrient 19,407 15,903 18,215 11,974 Rail 2,606 3,180 3,613 7,492 Other (5,035) (4,578) (10,015) (9,505) Income (loss) before income taxes, net of noncontrolling interests 18,239 40,885 (20,886) 21,450 Net loss attributable to noncontrolling interests (10,407) (477) (23,856) (632) Income (loss) before income taxes $ 7,832 $ 40,408 $ (44,742) $ 20,818 (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 Identifiable assets Trade $ 1,515,817 $ 2,012,060 $ 2,057,305 Ethanol 642,394 690,548 361,522 Plant Nutrient 342,690 383,781 381,924 Rail 656,573 693,931 657,617 Other 146,515 120,421 113,491 Total $ 3,303,989 $ 3,900,741 $ 3,571,859 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 and 2019 are as follows: Six months ended June 30, (in thousands) 2020 2019 Supplemental disclosure of cash flow information Interest paid $ 27,168 $ 30,287 Noncash investing and financing activity Dividends declared not yet paid 5,764 5,530 Capital projects incurred but not yet paid 4,070 15,317 Equity issued in conjunction with acquisition — 127,841 Removal of pre-existing equity method investment — (159,459) Purchase price holdback/ other accrued liabilities — 31,885 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The purchase price allocation was finalized in the second quarter of 2020. A summarized purchase price allocation is as follows: (in thousands) Non-cash consideration $ 7,318 Investments contributed at fair value 124,662 Investment contributed at cost 50,875 Total purchase price consideration $ 182,855 |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The final purchase price allocation at October 1, 2019, is as follows: (in thousands) Cash and cash equivalents $ 47,042 Accounts receivable 12,175 Inventories 31,765 Other current assets 2,638 Goodwill 3,075 Right of use asset 5,200 Other assets, net 861 Property, plant and equipment, net 321,380 424,136 Trade and other payables 13,461 Accrued expense and other current liabilities 3,011 Other long-term liabilities 292 Long-term lease liabilities 2,230 Long-term debt, including current maturities 47,886 66,880 Noncontrolling Interest 174,401 Net Assets Acquired $ 182,855 Removal of preexisting ownership interest $ (88,426) Pre-tax gain on derecognition of preexisting ownership interest $ 36,286 |
Schedule of Pro Forma Financial Information | The summary pro forma financial information for the periods presented below gives effect on Consolidated Company results to the TAMH acquisition as if it had occurred at January 1, 2019. Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Net sales $ 1,890,180 $ 2,377,250 $ 3,743,286 $ 4,408,760 Net income (loss) 20,032 24,975 (31,078) 9,747 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amount of Goodwill by Reportable Segment | The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2020 are as follows: (in thousands) Trade Ethanol Plant Nutrient Rail Total Balance as of January 1, 2020 $ 127,781 $ 2,726 $ 686 $ 4,167 $ 135,360 Reorganization (a) (5,714) 5,714 — — — Acquisitions (b) — 349 — — 349 Balance as of June 30, 2020 $ 122,067 $ 8,789 $ 686 $ 4,167 $ 135,709 (a) Reorganization related to move of the DDG business line from the Trade to Ethanol segment. (b) Acquisitions represent the TAMH acquisitions finalized goodwill allocation. |
Inventories (Details)
Inventories (Details) $ in Thousands, bu in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($)bu | Jun. 30, 2019USD ($)bu | Dec. 31, 2019USD ($)bu | |
Inventory [Line Items] | ||||
Grain and other agricultural products | $ 452,339 | $ 603,318 | $ 907,482 | |
Frac sand and propane | 6,498 | 9,287 | 15,438 | |
Ethanol and co-products | 63,195 | 26,185 | 95,432 | |
Plant nutrients and cob products | 87,346 | 109,156 | 146,164 | |
Railcar repair parts | 6,945 | 5,695 | 6,020 | |
Total inventories | $ 616,323 | $ 753,641 | $ 1,170,536 | |
Bushels of grain held in storage for others and excluded from inventory calculations | bu | 1.7 | 1.3 | 6.4 | |
Inventory write down | $ 10,922 | $ 0 | ||
COVID-19 Pandemic | ||||
Inventory [Line Items] | ||||
Inventory write down | $ 10,600 | $ 10,900 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Components of property, plant and equipment | |||
Land | $ 40,188 | $ 40,442 | $ 39,241 |
Land improvements and leasehold improvements | 96,028 | 103,148 | 84,127 |
Buildings and storage facilities | 377,652 | 373,961 | 327,418 |
Machinery and equipment | 881,144 | 835,156 | 514,030 |
Construction in progress | 35,982 | 59,993 | 164,532 |
Property, plant and equipment, gross | 1,430,994 | 1,412,700 | 1,129,348 |
Less: accumulated depreciation | 524,977 | 474,282 | 433,521 |
Property, plant and equipment, net | $ 906,017 | $ 938,418 | $ 695,827 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 31.2 | $ 15 | $ 62.3 | $ 32.7 |
Depreciation expense on railcar assets leased to others | $ 7.7 | 7 | ||
Rail | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense on railcar assets leased to others | $ 15.4 | $ 13.7 | ||
Trade | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charge | $ 3.1 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Rail Group Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Components of Railcar assets leased to others | |||
Rail Group assets leased to others, gross | $ 742,107 | $ 723,004 | $ 688,320 |
Less: accumulated depreciation | 149,286 | 138,706 | 128,609 |
Railcar assets leased to others, net | $ 592,821 | $ 584,298 | $ 559,711 |
Debt (Details)
Debt (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||
Short-term debt | $ 96,071,000 | $ 147,031,000 | $ 426,125,000 |
Long-term debt | |||
Current maturities of long-term debt | 68,477,000 | 62,899,000 | 66,678,000 |
Total current maturities of long-term debt | 68,477,000 | 62,899,000 | 66,678,000 |
Long-term debt, less current maturities | 975,973,000 | 1,016,248,000 | 1,007,012,000 |
Total long-term debt, less: current maturities | 975,973,000 | 1,016,248,000 | 1,007,012,000 |
Nonrecourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 43,284,000 | 54,029,000 | 75,476,000 |
Long-term debt | |||
Current maturities of long-term debt | 4,845,000 | 9,545,000 | 8,903,000 |
Long-term debt, less current maturities | 650,154,000 | 685,998,000 | 808,452,000 |
Recourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 52,787,000 | 93,002,000 | 350,649,000 |
Long-term debt | |||
Current maturities of long-term debt | 63,632,000 | 53,354,000 | 57,775,000 |
Long-term debt, less current maturities | 325,819,000 | $ 330,250,000 | $ 198,560,000 |
Line of credit | |||
Long-term debt | |||
Credit facility, maximum borrowing capacity | 1,690,300,000 | ||
Total available for borrowings under lines of credit | $ 1,307,100,000 |
Debt (Textual) (Details)
Debt (Textual) (Details) - Line of credit | Jun. 30, 2020USD ($) |
Line of Credit Facility [Line Items] | |
Credit facility, maximum borrowing capacity | $ 1,690,300,000 |
Total available for borrowings under lines of credit | $ 1,307,100,000 |
Derivatives (Textual) (Details)
Derivatives (Textual) (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative [Line Items] | |
Maximum period in which contracts for the sale of grain to processors or other consumers extend (years) | 1 year |
Derivatives (Net Asset or Liabi
Derivatives (Net Asset or Liability Positions in Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | |||
Net derivative asset position, Collateral paid (received) | $ 799 | $ 56,005 | $ 109,346 |
Net derivative asset position, Fair value of derivatives | 21,363 | (10,323) | (5,996) |
Net derivative asset position, net | 22,162 | 45,682 | 103,350 |
Net derivative liability position, Collateral paid | 0 | 0 | 0 |
Net derivative liability position, Fair value of derivatives | 0 | 0 | 0 |
Net derivative liability position, net | $ 0 | $ 0 | $ 0 |
Derivatives (Gross Current and
Derivatives (Gross Current and Noncurrent Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | $ 21,363 | $ (10,323) | $ (5,996) |
Commodity derivative liabilities | 0 | 0 | 0 |
Commodity derivative assets - current | 112,089 | 107,863 | 233,015 |
Commodity derivative liabilities - current | (65,186) | (46,942) | (69,369) |
Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 150,661 | 100,931 | 176,817 |
Commodity derivative liabilities | (105,544) | (95,571) | (120,341) |
Cash collateral paid | 799 | 56,005 | |
Cash collateral paid | 109,346 | ||
Total | 45,916 | 61,365 | 165,822 |
Commodity | Commodity Derivative Assets - Current | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 142,110 | 92,429 | 166,652 |
Commodity derivative liabilities | (30,820) | (40,571) | (42,983) |
Cash collateral paid | 799 | 56,005 | |
Cash collateral paid | 109,346 | ||
Commodity derivative assets - current | 112,089 | 107,863 | 233,015 |
Commodity | Commodity Derivative Assets - Noncurrent | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 2,916 | 1,045 | 6,748 |
Commodity derivative liabilities | (214) | (96) | (587) |
Cash collateral paid | 0 | 0 | |
Cash collateral paid | 0 | ||
Commodity derivative assets - noncurrent | 2,702 | 949 | 6,161 |
Commodity | Commodity Derivative Liabilities - Current | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 5,511 | 7,439 | 3,360 |
Commodity derivative liabilities | (70,697) | (54,381) | (72,729) |
Cash collateral paid | 0 | 0 | |
Cash collateral paid | 0 | ||
Commodity derivative liabilities - current | (65,186) | (46,942) | (69,369) |
Commodity | Commodity Derivative Liabilities - Noncurrent | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 124 | 18 | 57 |
Commodity derivative liabilities | (3,813) | (523) | (4,042) |
Cash collateral paid | 0 | 0 | |
Cash collateral paid | 0 | ||
Commodity derivative liabilities - noncurrent | $ (3,689) | $ (505) | $ (3,985) |
Derivatives (Pre-tax Gains and
Derivatives (Pre-tax Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Commodity | Cost of sales and merchandising revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments recognized in earnings | $ 8,797 | $ (13,364) | $ 39,757 | $ 57,291 |
Not Designated as Hedging Instrument | Interest rate contracts | Operating, administrative and general expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments recognized in earnings | 186 | (1,065) | (720) | (2,055) |
Not Designated as Hedging Instrument | Foreign currency contract | Other Income, Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments recognized in earnings | 0 | (366) | 0 | (1,833) |
Designated as Hedging Instrument | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate derivative losses included in Other Comprehensive Income (Loss) | (2,475) | (7,926) | (20,657) | (12,917) |
Designated as Hedging Instrument | Interest rate contracts | Operating, administrative and general expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate derivatives gains (losses) included in Interest income (expense), net | $ (1,917) | $ 0 | $ (2,700) | $ 165 |
Derivatives (Volume of Contract
Derivatives (Volume of Contracts Outstanding) (Details) lb in Thousands, gal in Thousands, bu in Thousands, T in Thousands | Jun. 30, 2020bu | Jun. 30, 2020gal | Jun. 30, 2020lb | Jun. 30, 2020T | Dec. 31, 2019bu | Dec. 31, 2019gal | Dec. 31, 2019lb | Dec. 31, 2019T | Jun. 30, 2019bu | Jun. 30, 2019gal | Jun. 30, 2019lb | Jun. 30, 2019T |
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 1,049,013 | 216,101 | 8,853 | 2,578 | 1,055,476 | 300,982 | 14,873 | 2,495 | 1,292,468 | 310,137 | 8,809 | 3,359 |
Non-exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 656,478 | 146,549 | 8,513 | 2,370 | 724,330 | 120,448 | 14,873 | 2,263 | 866,106 | 213,884 | 8,809 | 3,179 |
Non-exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 437,275 | 0 | 0 | 0 | 552,359 | 0 | 0 | 0 | 648,434 | 0 | 0 | 0 |
Non-exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 50,012 | 0 | 0 | 0 | 34,912 | 0 | 0 | 0 | 59,594 | 0 | 0 | 0 |
Non-exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 95,133 | 0 | 0 | 0 | 100,996 | 0 | 0 | 0 | 93,621 | 0 | 0 | 0 |
Non-exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 49,053 | 0 | 0 | 0 | 24,700 | 0 | 0 | 0 | 40,582 | 0 | 0 | 0 |
Non-exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 141,549 | 0 | 0 | 0 | 116,448 | 0 | 0 | 0 | 211,352 | 0 | 0 |
Non-exchange Traded | Corn oil | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 8,098 | 0 | 0 | 0 | 14,568 | 0 | 0 | 0 | 8,809 | 0 |
Non-exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 25,005 | 5,000 | 415 | 2,370 | 11,363 | 4,000 | 305 | 2,263 | 23,875 | 2,532 | 0 | 3,179 |
Exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 392,535 | 69,552 | 340 | 208 | 331,146 | 180,534 | 0 | 232 | 426,362 | 96,253 | 0 | 180 |
Exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 287,840 | 0 | 0 | 0 | 221,740 | 0 | 0 | 0 | 317,405 | 0 | 0 | 0 |
Exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 36,970 | 0 | 0 | 0 | 39,145 | 0 | 0 | 0 | 52,762 | 0 | 0 | 0 |
Exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 67,040 | 0 | 0 | 0 | 68,171 | 0 | 0 | 0 | 55,150 | 0 | 0 | 0 |
Exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 685 | 0 | 0 | 0 | 2,090 | 0 | 0 | 0 | 1,045 | 0 | 0 | 0 |
Exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 27,300 | 0 | 0 | 0 | 175,353 | 0 | 0 | 0 | 82,988 | 0 | 0 |
Exchange Traded | Propane | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 28,602 | 0 | 0 | 0 | 5,166 | 0 | 0 | 0 | 13,230 | 0 | 0 |
Exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 13,650 | 340 | 208 | 0 | 15 | 0 | 232 | 0 | 35 | 0 | 180 |
Derivatives (Fair Value of the
Derivatives (Fair Value of the Company's Other Derivatives) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | $ (1,174) | $ 0 | $ 0 |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative liabilities | (22) | ||
Not Designated as Hedging Instrument | Other long term liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | (553) | (1,007) | (10,750) |
Not Designated as Hedging Instrument | Other current assets | Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative assets | 791 | 2,742 | |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | (8,806) | (3,118) | 0 |
Designated as Hedging Instrument | Other long term liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | $ (24,388) | $ (9,382) | $ (10,587) |
Derivatives (Outstanding Intere
Derivatives (Outstanding Interest Rate Derivatives) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Derivative [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives The Company’s operating results are affected by changes to commodity prices. The Trade and Ethanol businesses have established “unhedged” futures 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 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. These contracts are primarily traded via regulated commodity exchanges. 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. Most contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year. Most 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 primarily 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 commodity inventories are included in cost of sales and merchandising revenues. 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, 2020, December 31, 2019 and June 30, 2019, 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, 2020 December 31, 2019 June 30, 2019 (in thousands) Net Net Net Net Net Net Cash collateral paid $ 799 $ — $ 56,005 $ — $ 109,346 $ — Fair value of derivatives 21,363 — (10,323) — (5,996) — Balance at end of period $ 22,162 $ — $ 45,682 $ — $ 103,350 $ — The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: June 30, 2020 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 142,110 $ 2,916 $ 5,511 $ 124 $ 150,661 Commodity derivative liabilities (30,820) (214) (70,697) (3,813) (105,544) Cash collateral paid 799 — — — 799 Balance sheet line item totals $ 112,089 $ 2,702 $ (65,186) $ (3,689) $ 45,916 December 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 92,429 $ 1,045 $ 7,439 $ 18 $ 100,931 Commodity derivative liabilities (40,571) (96) (54,381) (523) (95,571) Cash collateral paid 56,005 — — — 56,005 Balance sheet line item totals $ 107,863 $ 949 $ (46,942) $ (505) $ 61,365 June 30, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 166,652 $ 6,748 $ 3,360 $ 57 $ 176,817 Commodity derivative liabilities (42,983) (587) (72,729) (4,042) (120,341) Cash collateral paid 109,346 — — — 109,346 Balance sheet line item totals $ 233,015 $ 6,161 $ (69,369) $ (3,985) $ 165,822 The net pre-tax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line item in which they are located for the three and six months ended June 30, 2020 and 2019 are as follows: Three months ended June 30, Six months ended June 30, 2020 (in thousands) 2020 2019 2020 2019 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ 8,797 $ (13,364) $ 39,757 $ 57,291 The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at June 30, 2020, December 31, 2019 and June 30, 2019: June 30, 2020 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 437,275 — — — Soybeans 50,012 — — — Wheat 95,133 — — — Oats 49,053 — — — Ethanol — 141,549 — — Corn oil — — 8,098 — Other 25,005 5,000 415 2,370 Subtotal 656,478 146,549 8,513 2,370 Exchange traded: Corn 287,840 — — — Soybeans 36,970 — — — Wheat 67,040 — — — Oats 685 — — — Ethanol — 27,300 — — Propane — 28,602 — — Other — 13,650 340 208 Subtotal 392,535 69,552 340 208 Total 1,049,013 216,101 8,853 2,578 December 31, 2019 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 552,359 — — — Soybeans 34,912 — — — Wheat 100,996 — — — Oats 24,700 — — — Ethanol — 116,448 — — Corn oil — — 14,568 — Other 11,363 4,000 305 2,263 Subtotal 724,330 120,448 14,873 2,263 Exchange traded: Corn 221,740 — — — Soybeans 39,145 — — — Wheat 68,171 — — — Oats 2,090 — — — Ethanol — 175,353 — — Propane — 5,166 — — Other — 15 — 232 Subtotal 331,146 180,534 — 232 Total 1,055,476 300,982 14,873 2,495 June 30, 2019 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 648,434 — — — Soybeans 59,594 — — — Wheat 93,621 — — — Oats 40,582 — — — Ethanol — 211,352 — — Corn oil — — 8,809 — Other 23,875 2,532 — 3,179 Subtotal 866,106 213,884 8,809 3,179 Exchange traded: Corn 317,405 — — — Soybeans 52,762 — — — Wheat 55,150 — — — Oats 1,045 — — — Ethanol — 82,988 — — Propane — 13,230 — — Other — 35 — 180 Subtotal 426,362 96,253 — 180 Total 1,292,468 310,137 8,809 3,359 Interest Rate and Other Derivatives The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The gains or losses on the derivatives designated as hedging instruments are recorded in Other Comprehensive Income (Loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. At June 30, 2020, December 31, 2019 and June 30, 2019, the Company had recorded the following amounts for the fair value of the Company's other derivatives: (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 Derivatives not designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ (1,174) $ — $ — Interest rate contracts included in Other long-term liabilities (553) (1,007) (10,750) Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) 791 2,742 (22) Derivatives designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities (8,806) (3,118) — Interest rate contracts included in Other long-term liabilities $ (24,388) $ (9,382) $ (10,587) The recording of derivatives gains and losses and the financial statement line in which they are located are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest income (expense), net $ 186 $ (1,065) $ (720) $ (2,055) Foreign currency derivative losses included in Other income (loss), net — (366) — (1,833) Derivatives designated as hedging instruments Interest rate derivative losses included in Other Comprehensive Income (Loss) (2,475) (7,926) (20,657) (12,917) Interest rate derivatives gains (losses) included in Interest income (expense), net $ (1,917) $ — $ (2,700) $ 165 Outstanding interest rate derivatives, as of June 30, 2020, are as follows: Interest Rate Hedging Instrument Year Entered Year of Maturity Initial Notional Amount Description Interest Rate Long-term Swap 2014 2023 $ 23.0 Interest rate component of debt - not accounted for as a hedge 1.9% Collar 2016 2021 $ 40.0 Interest rate component of debt - not accounted for as a hedge 3.5% to 4.8% Swap 2017 2022 $ 20.0 Interest rate component of debt - accounted for as a hedge 1.8% Swap 2018 2023 $ 10.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2025 $ 20.0 Interest rate component of debt - accounted for as a hedge 2.7% Swap 2018 2021 $ 40.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2021 $ 25.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2021 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 100.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.8% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.7% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% |
Not Accounted for as Hedge | Long-term | Swap 1.9% | |
Derivative [Line Items] | |
Notional amount | $ 23 |
Interest rate | 1.90% |
Not Accounted for as Hedge | Long-term | Collar 3.5% to 4.8% | |
Derivative [Line Items] | |
Notional amount | $ 40 |
Not Accounted for as Hedge | Long-term | Collar 3.5% to 4.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 3.50% |
Not Accounted for as Hedge | Long-term | Collar 3.5% to 4.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 4.80% |
Not Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0.00% |
Not Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Not Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0.00% |
Not Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Accounted for as Hedge | Long-term | Swap 1.8% | |
Derivative [Line Items] | |
Notional amount | $ 20 |
Interest rate | 1.80% |
Accounted for as Hedge | Long-term | Swap 2.6% | |
Derivative [Line Items] | |
Notional amount | $ 10 |
Interest rate | 2.60% |
Accounted for as Hedge | Long-term | Swap 2.7% | |
Derivative [Line Items] | |
Notional amount | $ 20 |
Interest rate | 2.70% |
Accounted for as Hedge | Long-term | Swap 2.6% | |
Derivative [Line Items] | |
Notional amount | $ 40 |
Interest rate | 2.60% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 25 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 100 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 0.8% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 0.80% |
Accounted for as Hedge | Long-term | Swap 0.7% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 0.70% |
Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Revenue (Breakdown of Revenues
Revenue (Breakdown of Revenues by Accounting Standards) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | $ 459,105 | $ 494,266 | $ 806,607 | $ 809,438 |
Total Revenues | 1,890,180 | 2,325,041 | 3,743,286 | 4,301,833 |
Revenues under ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 459,105 | 494,266 | 806,607 | 809,438 |
Revenues under ASC 842 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Revenues | 24,768 | 31,836 | 50,319 | 60,704 |
Revenues under ASC 815 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Revenues | $ 1,406,307 | $ 1,798,939 | $ 2,886,360 | $ 3,431,691 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 459,105 | $ 494,266 | $ 806,607 | $ 809,438 |
Specialty nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 82,634 | 119,535 | 155,865 | 191,873 |
Primary nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 188,463 | 197,271 | 234,153 | 250,787 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 13,611 | 22,266 | 24,215 | 36,636 |
Products and co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 139,117 | 87,990 | 293,981 | 172,218 |
Frac sand and propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 21,439 | 56,767 | 71,314 | 137,230 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 13,841 | 10,437 | 27,079 | 20,694 |
Trade | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 92,470 | 177,226 | 201,184 | 326,797 |
Trade | Specialty nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 31,870 | 0 | 35,808 |
Trade | Primary nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 22,364 | 0 | 22,791 |
Trade | Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,357 | 7,745 | 4,043 | 8,570 |
Trade | Products and co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 63,344 | 55,943 | 116,509 | 118,701 |
Trade | Frac sand and propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 21,439 | 56,767 | 71,314 | 137,230 |
Trade | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 5,330 | 2,537 | 9,318 | 3,697 |
Ethanol | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 76,125 | 35,629 | 178,440 | 60,535 |
Ethanol | Specialty nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Ethanol | Primary nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Ethanol | Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 3,547 | 0 | 6,983 |
Ethanol | Products and co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 75,773 | 32,047 | 177,472 | 53,517 |
Ethanol | Frac sand and propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Ethanol | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 352 | 35 | 968 | 35 |
Plant Nutrient | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 279,825 | 270,577 | 404,738 | 399,102 |
Plant Nutrient | Specialty nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 82,634 | 87,665 | 155,865 | 156,065 |
Plant Nutrient | Primary nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 188,463 | 174,907 | 234,153 | 227,996 |
Plant Nutrient | Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,596 | 1,696 | 2,778 | 1,858 |
Plant Nutrient | Products and co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Plant Nutrient | Frac sand and propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Plant Nutrient | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 6,132 | 6,309 | 11,942 | 13,183 |
Rail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,685 | 10,834 | 22,245 | 23,004 |
Rail | Specialty nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Rail | Primary nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Rail | Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,658 | 9,278 | 17,394 | 19,225 |
Rail | Products and co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Rail | Frac sand and propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Rail | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 2,027 | $ 1,556 | $ 4,851 | $ 3,779 |
Revenue (Textual) (Details)
Revenue (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Contract Liabilities | $ 9.7 | $ 9.7 | $ 28.5 | ||
Service | Transferred over Time | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer, percentage of service revenues | 3.00% | 4.00% | 3.00% | 4.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (12,200) | $ 10,997 | $ (13,664) | $ 5,555 |
Effective income tax rate | 155.80% | (27.20%) | (30.50%) | 26.70% |
Unrecognized tax benefits | $ 24,700 | $ 600 | $ 24,700 | $ 600 |
Unrecognized tax benefit, reduction of deferred tax asset and refundable credits | $ 22,300 | |||
CARES Act, income tax benefit | $ 10,300 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (After-tax Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | $ 1,113,862 | $ 998,286 | $ 1,195,655 | $ 876,764 | ||
Other comprehensive loss before reclassifications | (234) | (8,544) | (21,208) | (11,314) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,638 | (171) | 2,194 | 11,460 | ||
Net current-period other comprehensive income (loss) | 1,404 | (8,715) | (19,014) | 146 | ||
Ending Balance | 1,132,083 | 1,020,639 | 1,132,083 | 1,020,639 | ||
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (27,649) | 2,474 | (7,231) | (6,387) | ||
Ending Balance | (26,245) | (6,241) | (26,245) | (6,241) | ||
Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (23,106) | (3,748) | (9,443) | (126) | ||
Other comprehensive loss before reclassifications | (3,669) | (5,952) | (18,059) | (9,710) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,809 | 0 | 2,536 | 136 | ||
Net current-period other comprehensive income (loss) | (1,860) | (5,952) | (15,523) | (9,574) | ||
Ending Balance | (24,966) | (9,700) | (24,966) | (9,700) | ||
Foreign Currency Translation Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (5,574) | 1,059 | 1,065 | (11,550) | ||
Other comprehensive loss before reclassifications | 3,249 | (2,035) | (3,390) | (1,092) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 11,666 | ||
Net current-period other comprehensive income (loss) | 3,249 | (2,035) | (3,390) | 10,574 | ||
Ending Balance | (2,325) | (976) | (2,325) | (976) | ||
Investment in Convertible Preferred Securities | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | 258 | 258 | 258 | 258 | ||
Other comprehensive loss before reclassifications | 0 | [1] | 0 | [1] | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | [1] | 0 | 0 | 0 | |
Net current-period other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Ending Balance | 258 | 258 | 258 | 258 | ||
Defined Benefit Plan Items | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | 773 | 4,905 | 889 | 5,031 | ||
Other comprehensive loss before reclassifications | 186 | (557) | 241 | (512) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (171) | (171) | (342) | (342) | ||
Net current-period other comprehensive income (loss) | 15 | (728) | (101) | (854) | ||
Ending Balance | $ 788 | $ 4,177 | $ 788 | $ 4,177 | ||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income (loss) before income taxes | $ 7,832 | $ 40,408 | $ (44,742) | $ 20,818 | ||
Income tax provision (benefit) | 12,200 | (10,997) | 13,664 | (5,555) | ||
Net income (loss) | 20,032 | 29,411 | (31,078) | 15,263 | ||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income (loss) | 1,638 | [1] | (171) | [1] | 2,194 | 11,460 |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Defined Benefit Plan Items | ||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of prior-service cost | (228) | [1],[2] | (228) | [1],[2] | (456) | (456) |
Income (loss) before income taxes | (228) | [1] | (228) | [1] | (456) | (456) |
Income tax provision (benefit) | 57 | [1] | 57 | [1] | 114 | |
Net income (loss) | (171) | [1] | (171) | [1] | (342) | (342) |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Cash Flow Hedges | ||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest payments | 2,412 | 0 | 3,381 | 182 | ||
Income (loss) before income taxes | 2,412 | [1] | 0 | [1] | 3,381 | 182 |
Income tax provision (benefit) | (603) | [1] | 0 | [1] | (845) | (46) |
Net income (loss) | $ 1,809 | [1] | 0 | [1] | $ 2,536 | 136 |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Foreign Currency Translation Adjustment | ||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Realized loss on pre-existing investment | 0 | (11,666) | ||||
Income (loss) before income taxes | 0 | [1] | 11,666 | |||
Income tax provision (benefit) | 0 | [1] | 0 | |||
Net income (loss) | $ 0 | [1] | $ 11,666 | |||
[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. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to The Andersons, Inc. | $ 30,439 | $ 29,888 | $ (7,222) | $ 15,895 |
Earnings per share - basic: | ||||
Weighted average shares outstanding - basic (shares) | 32,932,000 | 32,521,000 | 32,876,000 | 32,511,000 |
Earnings per common share - basic (dollars per share) | $ 0.92 | $ 0.92 | $ (0.22) | $ 0.49 |
Earnings per share - diluted: | ||||
Weighted average shares outstanding - basic (shares) | 32,932,000 | 32,521,000 | 32,876,000 | 32,511,000 |
Effect of dilutive awards (shares) | 77,000 | 212,000 | 0 | 560,000 |
Weighted average shares outstanding - diluted (shares) | 33,009,000 | 32,733,000 | 32,876,000 | 33,071,000 |
Earnings per common share - diluted (dollars per share) | $ 0.92 | $ 0.91 | $ (0.22) | $ 0.48 |
Outstanding share awards | 471,000 | 33,000 | ||
Antidilutive awards (shares) | 0 | 61,000 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | $ 45,916 | $ 61,365 | $ 165,822 |
Provisionally price contracts | [2] | (57,036) | (186,651) | (39,279) |
Convertible preferred securities | [3] | 8,654 | 8,404 | 8,404 |
Other assets and liabilities | [4] | (30,820) | (4,038) | (5,466) |
Total | (33,286) | (120,920) | 129,481 | |
Level 1 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | 22,162 | 45,682 | 103,350 |
Provisionally price contracts | [2] | (15,139) | (118,414) | (1,064) |
Convertible preferred securities | [3] | 0 | 0 | 0 |
Other assets and liabilities | [4] | 4,102 | 9,469 | 5,284 |
Total | 11,125 | (63,263) | 107,570 | |
Level 2 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | 23,754 | 15,683 | 62,472 |
Provisionally price contracts | [2] | (41,897) | (68,237) | (38,215) |
Convertible preferred securities | [3] | 0 | 0 | 0 |
Other assets and liabilities | [4] | (34,922) | (13,507) | (10,750) |
Total | (53,065) | (66,061) | 13,507 | |
Level 3 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | 0 | 0 | 0 |
Provisionally price contracts | [2] | 0 | 0 | 0 |
Convertible preferred securities | [3] | 8,654 | 8,404 | 8,404 |
Other assets and liabilities | [4] | 0 | 0 | 0 |
Total | $ 8,654 | $ 8,404 | $ 8,404 | |
[1] | Includes associated cash posted/received as collateral | |||
[2] | Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) | |||
[3] | Recorded in “Other assets, net” on the Company’s Consolidated Balance Sheets related to certain available for sale securities. | |||
[4] | Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1) and interest rate derivatives (Level 2). |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Beginning and Ending Balances of Level 3 Measurements) (Details) - Level 3 - Convertible preferred securities - USD ($) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Reconciliation of Fair Value Measurements Using Level 3 | |||||
Asset (liability), Beginning Balance | $ 8,654 | $ 8,404 | $ 7,404 | $ 7,154 | |
Additional investments | 0 | 250 | 1,000 | 250 | |
Asset (liability), Ending Balance | 8,654 | $ 8,654 | 8,404 | $ 7,404 | |
Fair Value, Recurring [Member] | Implied based on market prices | |||||
Reconciliation of Fair Value Measurements Using Level 3 | |||||
Asset fair value | $ 8,654 | $ 8,404 | $ 8,404 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Company's Long-term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
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 | $ 1,090,059 | $ 1,096,010 | $ 1,078,185 | |
Fair value in excess of carrying value | [1] | $ 37,963 | $ 8,257 | $ 4,495 |
[1] | Carrying value used for this purpose excludes unamortized debt issuance costs. |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets and Liabilities Measured on Nonrecurring Basis) (Details) - Trade - Fair Value, Measurements, Recurring - Level 3 - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Implied based on market prices | Real propert | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 608 | $ 2,719 |
Valuation Technique, Discounted Cash Flow [Member] | Equity method investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 12,424 | |
Valuation, Income Approach [Member] | Frac sand assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 16,546 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||||
Sales revenues | $ 29,659 | $ 57,854 | $ 84,353 | $ 119,022 | |
Service fee revenues | 0 | 4,052 | 0 | 8,163 | |
Purchases of product | 6,419 | 176,442 | 21,996 | 345,671 | |
Lease income | 151 | 1,645 | 298 | 3,309 | |
Labor and benefits reimbursement | 0 | 3,602 | 0 | 7,460 | |
Accounts receivable | 7,332 | 19,515 | 7,332 | 19,515 | $ 10,603 |
Accounts payable | $ 2,598 | $ 24,700 | $ 2,598 | $ 24,700 | $ 12,303 |
Segment Information (Textual) (
Segment Information (Textual) (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments (business segments) | 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 1,890,180 | $ 2,325,041 | $ 3,743,286 | $ 4,301,833 | |
Income (loss) before income taxes, net of noncontrolling interests | 18,239 | 40,885 | (20,886) | 21,450 | |
Net loss attributable to the noncontrolling interests | (10,407) | (477) | (23,856) | (632) | |
Income (loss) before income taxes | 7,832 | 40,408 | (44,742) | 20,818 | |
Total assets | 3,303,989 | 3,571,859 | 3,303,989 | 3,571,859 | $ 3,900,741 |
Operating Segments | Trade | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 1,351,168 | 1,700,581 | 2,729,209 | 3,238,267 | |
Income (loss) before income taxes, net of noncontrolling interests | 393 | 22,631 | (9,591) | 4,729 | |
Total assets | 1,515,817 | 2,057,305 | 1,515,817 | 2,057,305 | 2,012,060 |
Operating Segments | Ethanol | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 223,745 | 310,867 | 536,784 | 580,033 | |
Income (loss) before income taxes, net of noncontrolling interests | 868 | 3,749 | (23,108) | 6,760 | |
Total assets | 642,394 | 361,522 | 642,394 | 361,522 | 690,548 |
Operating Segments | Plant Nutrient | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 279,825 | 270,577 | 404,738 | 399,102 | |
Income (loss) before income taxes, net of noncontrolling interests | 19,407 | 15,903 | 18,215 | 11,974 | |
Total assets | 342,690 | 381,924 | 342,690 | 381,924 | 383,781 |
Operating Segments | Rail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 35,442 | 43,016 | 72,555 | 84,431 | |
Income (loss) before income taxes, net of noncontrolling interests | 2,606 | 3,180 | 3,613 | 7,492 | |
Total assets | 656,573 | 657,617 | 656,573 | 657,617 | 693,931 |
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 2,455 | 2,676 | 5,556 | 4,152 | |
Segment Reconciling Items | Trade | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 432 | 631 | 1,040 | 812 | |
Segment Reconciling Items | Plant Nutrient | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 635 | 1,274 | 1,523 | 1,294 | |
Segment Reconciling Items | Rail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 1,388 | 771 | 2,993 | 2,046 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes, net of noncontrolling interests | (5,035) | (4,578) | (10,015) | (9,505) | |
Total assets | $ 146,515 | $ 113,491 | $ 146,515 | $ 113,491 | $ 120,421 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jan. 01, 2019USD ($) |
LTG | |
Operating Leased Assets [Line Items] | |
Reserve relating to outstanding non-regulatory litigation claim | $ 5 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 27,168 | $ 30,287 |
Noncash investing and financing activity | ||
Dividends declared not yet paid | 5,764 | 5,530 |
Capital projects incurred but not yet paid | 4,070 | 15,317 |
Equity issued in conjunction with acquisition | 0 | 127,841 |
Removal of preexisting ownership interest | 0 | (159,459) |
Purchase price holdback/ other accrued liabilities | $ 0 | $ 31,885 |
Business Acquisitions (Textual)
Business Acquisitions (Textual) (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||||
Goodwill (Note 16) | $ 135,709 | $ 135,872 | $ 135,709 | $ 135,872 | $ 135,360 | |
Effective income tax rate | 155.80% | (27.20%) | (30.50%) | 26.70% | ||
The Andersons Marathon Holdings LLC | ||||||
Business Acquisition [Line Items] | ||||||
Consideration paid for acquisition | $ 182,855 | |||||
Non-cash consideration | 7,318 | |||||
Goodwill (Note 16) | 3,075 | |||||
Goodwill adjustments | $ 400 | |||||
Other long-term liabilities | 292 | |||||
Noncontrolling Interest | $ 174,401 | |||||
Effective income tax rate | 25.00% | |||||
The Andersons Marathon Holdings LLC | The Andersons | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by parent | 50.10% | |||||
The Andersons Marathon Holdings LLC | Marathon | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 49.90% | |||||
The Andersons Marathon Holdings LLC | Acquisition-related adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Other long-term liabilities | $ 100 | |||||
Noncontrolling Interest | $ 300 |
Business Acquisitions (Purchase
Business Acquisitions (Purchase Price Allocation) (Details) - The Andersons Marathon Holdings LLC $ in Thousands | Oct. 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Non-cash consideration | $ 7,318 |
Investments contributed at fair value | 124,662 |
Investment contributed at cost | 50,875 |
Total purchase price consideration | $ 182,855 |
Business Acquisitions (Fair Val
Business Acquisitions (Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill (Note 16) | $ 135,709 | $ 135,872 | $ 135,360 | |
Removal of preexisting ownership interest | $ 0 | $ (159,459) | ||
The Andersons Marathon Holdings LLC | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 47,042 | |||
Accounts receivable | 12,175 | |||
Inventories | 31,765 | |||
Other current assets | 2,638 | |||
Goodwill (Note 16) | 3,075 | |||
Right of use asset | 5,200 | |||
Other assets, net | 861 | |||
Property, plant and equipment, net | 321,380 | |||
Total Assets Acquired | 424,136 | |||
Trade and other payables | 13,461 | |||
Accrued expense and other current liabilities | 3,011 | |||
Other long-term liabilities | 292 | |||
Long-term lease liabilities | 2,230 | |||
Long-term debt, including current maturities | 47,886 | |||
Total Liabilities Assumed | 66,880 | |||
Noncontrolling Interest | 174,401 | |||
Net Assets Acquired | 182,855 | |||
Removal of preexisting ownership interest | (88,426) | |||
Pre-tax gain on derecognition of preexisting ownership interest | $ 36,286 |
Business Acquisitions (Pro Form
Business Acquisitions (Pro Forma Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Business Combinations [Abstract] | ||||
Net sales | $ 1,890,180 | $ 2,377,250 | $ 3,743,286 | $ 4,408,760 |
Net income | $ 20,032 | $ 24,975 | $ (31,078) | $ 9,747 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | $ 135,360 |
Reorganization | 0 |
Acquisitions | 349 |
Balance as of June 30, 2020 | 135,709 |
Trade | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | 127,781 |
Reorganization | (5,714) |
Acquisitions | 0 |
Balance as of June 30, 2020 | 122,067 |
Ethanol | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | 2,726 |
Reorganization | 5,714 |
Acquisitions | 349 |
Balance as of June 30, 2020 | 8,789 |
Plant Nutrient | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | 686 |
Reorganization | 0 |
Acquisitions | 0 |
Balance as of June 30, 2020 | 686 |
Rail | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | 4,167 |
Reorganization | 0 |
Acquisitions | 0 |
Balance as of June 30, 2020 | $ 4,167 |