Cover page
Cover page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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, $0.01 stated value | |
Trading Symbol | ANDE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,282,749 | |
Entity Central Index Key | 0000821026 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 27,538 | $ 29,123 | $ 30,011 |
Accounts receivable, net | 721,575 | 659,834 | 537,011 |
Inventories | 912,299 | 1,300,693 | 616,323 |
Commodity derivative assets – current | 507,148 | 320,706 | 112,089 |
Other current assets | 65,740 | 106,053 | 102,755 |
Total current assets | 2,234,300 | 2,416,409 | 1,398,189 |
Other assets: | |||
Goodwill | 135,709 | 135,709 | 135,709 |
Other intangible assets, net | 127,756 | 142,940 | 160,180 |
Right of use assets, net | 61,299 | 56,031 | 62,838 |
Other assets, net | 73,678 | 49,907 | 48,235 |
Total other assets | 398,442 | 384,587 | 406,962 |
Rail Group assets leased to others, net | 574,585 | 591,946 | 592,821 |
Property, plant and equipment, net | 841,762 | 879,179 | 906,017 |
Total assets | 4,049,089 | 4,272,121 | 3,303,989 |
Current liabilities: | |||
Short-term debt | 757,271 | 403,703 | 96,071 |
Trade and other payables | 547,169 | 957,683 | 503,892 |
Customer prepayments and deferred revenue | 58,155 | 180,160 | 45,734 |
Commodity derivative liabilities – current | 90,366 | 146,990 | 65,186 |
Current maturities of long-term debt | 56,582 | 75,475 | 68,477 |
Accrued expenses and other current liabilities | 181,015 | 167,671 | 147,422 |
Total current liabilities | 1,690,558 | 1,931,682 | 926,782 |
Long-term lease liabilities | 41,852 | 37,177 | 41,061 |
Long-term debt, less current maturities | 866,454 | 916,540 | 975,973 |
Deferred income taxes | 173,212 | 170,147 | 162,475 |
Other long-term liabilities | 52,049 | 55,915 | 65,615 |
Total liabilities | 2,824,125 | 3,111,461 | 2,171,906 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Common shares, without par value (63,000 shares authorized; 33,786, 33,599 and 33,599 shares issued at 6/30/2021, 12/31/2020 and 6/30/2020, respectively) | 140 | 138 | 138 |
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 | 0 |
Additional paid-in-capital | 357,606 | 348,714 | 343,730 |
Treasury shares, at cost (111, 45 and 40 shares at 6/30/2021, 12/31/2020 and 6/30/2020, respectively) | (2,650) | (966) | (953) |
Accumulated other comprehensive loss | (1,837) | (12,076) | (26,245) |
Retained earnings | 669,241 | 626,081 | 622,718 |
Total shareholders’ equity of The Andersons, Inc. | 1,022,500 | 961,891 | 939,388 |
Noncontrolling interests | 202,464 | 198,769 | 192,695 |
Total equity | 1,224,964 | 1,160,660 | 1,132,083 |
Total liabilities and equity | $ 4,049,089 | $ 4,272,121 | $ 3,303,989 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | |||
Common shares, shares authorized (shares) | 63,000,000 | 63,000,000 | 63,000,000 |
Common shares, shares issued (shares) | 33,786,000 | 33,599,000 | 33,599,000 |
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) | 111,000 | 45,000 | 40,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues from external customers | $ 3,273,726 | $ 1,890,180 | $ 5,909,455 | $ 3,743,286 |
Cost of sales and merchandising revenues | 3,099,682 | 1,783,914 | 5,612,699 | 3,573,890 |
Gross profit | 174,044 | 106,266 | 296,756 | 169,396 |
Operating, administrative and general expenses | 109,976 | 90,136 | 209,848 | 195,196 |
Interest expense, net | 13,454 | 11,827 | 26,623 | 27,414 |
Other income, net: | ||||
Equity in earnings of affiliates, net | 845 | 79 | 2,639 | 209 |
Other income, net | 5,307 | 3,450 | 12,849 | 8,263 |
Income (loss) before income taxes | 56,766 | 7,832 | 75,773 | (44,742) |
Income tax provision (benefit) | 10,642 | (12,200) | 16,387 | (13,664) |
Net income (loss) | 46,124 | 20,032 | 59,386 | (31,078) |
Net income (loss) attributable to noncontrolling interests | 2,625 | (10,407) | 780 | (23,856) |
Net income (loss) attributable to The Andersons, Inc. | $ 43,499 | $ 30,439 | $ 58,606 | $ (7,222) |
Per common share: | ||||
Basic earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ 1.31 | $ 0.92 | $ 1.76 | $ (0.22) |
Diluted earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ 1.30 | $ 0.92 | $ 1.74 | $ (0.22) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 46,124 | $ 20,032 | $ 59,386 | $ (31,078) |
Other comprehensive income (loss), net of tax: | ||||
Change in unrecognized actuarial gain (loss) and prior service cost | (234) | 15 | (337) | (101) |
Foreign currency translation adjustments | 1,469 | 3,249 | 2,693 | (3,390) |
Cash flow hedge activity | (1,858) | (1,860) | 7,883 | (15,523) |
Other comprehensive income (loss) | (623) | 1,404 | 10,239 | (19,014) |
Comprehensive income (loss) | 45,501 | 21,436 | 69,625 | (50,092) |
Comprehensive income (loss) attributable to the noncontrolling interests | 2,625 | (10,407) | 780 | (23,856) |
Comprehensive income (loss) attributable to The Andersons, Inc. | $ 42,876 | $ 31,843 | $ 68,845 | $ (26,236) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net income (loss) | $ 59,386 | $ (31,078) |
Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities: | ||
Depreciation and amortization | 95,154 | 93,898 |
Bad debt (recovery) expense, net | (1,156) | 6,290 |
Equity in earnings of affiliates, net of dividends | (2,639) | (209) |
Gain on sales of Rail assets and related leases, net | (4,987) | (569) |
(Gain) loss on sales of assets, net | (1,266) | 341 |
Stock-based compensation expense | 4,112 | 5,016 |
Deferred federal income tax | 170 | 21,761 |
Inventory write down | 2,599 | 10,922 |
Other | 2,971 | 2,797 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (58,338) | (9,181) |
Inventories | 390,506 | 536,951 |
Commodity derivatives | (250,691) | 14,980 |
Other assets | 35,568 | (24,784) |
Payables and other accrued expenses | (516,883) | (481,624) |
Net cash (used in) provided by operating activities | (245,494) | 145,511 |
Investing Activities | ||
Purchases of Rail assets | (4,751) | (24,649) |
Proceeds from sale of Rail assets | 15,616 | 4,637 |
Purchases of property, plant and equipment and capitalized software | (34,264) | (44,644) |
Proceeds from sale of assets | 3,794 | 1,503 |
Purchase of investments | (4,701) | (2,849) |
Other | 832 | 0 |
Net cash used in investing activities | (23,474) | (66,002) |
Financing Activities | ||
Net borrowings (payments) under lines of credit | (258,157) | (47,564) |
Proceeds from issuance of short-term debt | 608,250 | 0 |
Proceeds from issuance of long-term debt | 108,300 | 165,975 |
Payments of long-term debt | (177,586) | (203,835) |
Contributions from noncontrolling interest owner | 2,940 | 4,409 |
Distributions to noncontrolling interest owner | (25) | (10,298) |
Payments of debt issuance costs | (2,059) | (250) |
Dividends paid | (11,677) | (11,469) |
Other | (2,436) | (2,036) |
Net cash provided by (used in) financing activities | 267,550 | (105,068) |
Effect of exchange rates on cash and cash equivalents | (167) | 675 |
Decrease in cash and cash equivalents | (1,585) | (24,884) |
Cash and cash equivalents at beginning of period | 29,123 | 54,895 |
Cash and cash equivalents at end of period | $ 27,538 | $ 30,011 |
Condensed Consolidated Statem_4
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 |
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 income | 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.350 | ||||||
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 income | 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.175 | ||||||
Beginning Balance at Dec. 31, 2020 | $ 1,160,660 | 138 | 348,714 | (966) | (12,076) | 626,081 | 198,769 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 59,386 | 58,606 | 780 | ||||
Other comprehensive loss | 7,311 | 7,311 | |||||
Amounts reclassified from accumulated other comprehensive income | 2,928 | 2,928 | |||||
Contributions from noncontrolling interests | 2,940 | 2,940 | |||||
Distributions to noncontrolling interests | (25) | (25) | |||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 3,398 | 2 | 8,892 | (2,016) | (3,480) | ||
Dividends declared per common share | (11,634) | (11,634) | |||||
Restricted share award dividend equivalents | 0 | 332 | (332) | ||||
Ending Balance at Jun. 30, 2021 | $ 1,224,964 | 140 | 357,606 | (2,650) | (1,837) | 669,241 | 202,464 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.350 | ||||||
Beginning Balance at Mar. 31, 2021 | $ 1,182,551 | 140 | 355,961 | (2,872) | (1,214) | 631,652 | 198,884 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 46,124 | 43,499 | 2,625 | ||||
Other comprehensive loss | (2,108) | (2,108) | |||||
Amounts reclassified from accumulated other comprehensive income | 1,485 | 1,485 | |||||
Contributions from noncontrolling interests | 980 | 980 | |||||
Distributions to noncontrolling interests | (25) | (25) | |||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 1,783 | 1,645 | 138 | ||||
Dividends declared per common share | (5,826) | (5,826) | |||||
Restricted share award dividend equivalents | 0 | 84 | (84) | ||||
Ending Balance at Jun. 30, 2021 | $ 1,224,964 | $ 140 | $ 357,606 | $ (2,650) | $ (1,837) | $ 669,241 | $ 202,464 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.175 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Stock awards, stock option exercises and other shares issued to employees and directors, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Number Of Common Shares Issued For Cash | 11 | 20 | 67 | 167 |
Dividends declared, per common share (in dollars per share) | $ 0.175 | $ 0.175 | $ 0.350 | $ 0.350 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2021 | |
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”). Controlled subsidiaries include 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. 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, 2021. An unaudited Condensed Consolidated Balance Sheet as of June 30, 2020 has been included as the Company operates in several seasonal industries. The Condensed Consolidated Balance Sheet data at December 31, 2020 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, 2020 (the “2020 Form 10-K”). Recently Adopted Accounting Pronouncements Simplified Accounting for Income Taxes |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major classes of inventories are presented below. Readily Marketable Inventories ("RMI") are agricultural commodity inventories such as corn, soybeans, wheat, and ethanol co-products, among others, carried at net realizable value which approximates fair value based on their commodity characteristics, widely available markets, and pricing mechanisms. The net realizable value of RMI is calculated as the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. All other inventories are held at lower of cost or net realizable value. (in thousands) June 30, December 31, June 30, Grain and other agricultural products (a) $ 636,380 $ 1,025,809 $ 452,339 Frac sand and propane (a) 11,265 12,477 6,498 Ethanol and co-products (a) 155,993 114,895 63,195 Plant nutrients and cob products 101,286 139,885 87,346 Railcar repair parts 7,375 7,627 6,945 Total Inventories $ 912,299 $ 1,300,693 $ 616,323 (a) Includes RMI of $612.2 million , $983.2 million and $418.0 million at June 30, 2021, December 31, 2020 and June 30, 2020, respectively. Inventories do not include 1.2 million , 3.0 million and 1.7 million bushels of grain held in storage for others as of June 30, 2021, December 31, 2020 and June 30, 2020, 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, 2021 | |
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 $ 39,884 $ 40,222 $ 40,188 Land improvements and leasehold improvements 97,454 96,700 96,028 Buildings and storage facilities 386,832 387,992 377,652 Machinery and equipment 948,517 925,074 881,144 Construction in progress 19,987 19,725 35,982 1,492,674 1,469,713 1,430,994 Less: accumulated depreciation 650,912 590,534 524,977 Property, plant and equipment, net $ 841,762 $ 879,179 $ 906,017 Depreciation expense on property, plant and equipment was $64.2 million and $62.3 million for the six months ended June 30, 2021 and 2020, respectively. Additionally, depreciation expense on property, plant and equipment was $32.3 million and $31.2 million for the three months ended June 30, 2021 and 2020, respectively. Rail Assets The components of Rail assets leased to others are as follows: (in thousands) June 30, December 31, June 30, Rail assets leased to others $ 735,255 $ 750,473 $ 742,107 Less: accumulated depreciation 160,670 158,527 149,286 Rail assets, net $ 574,585 $ 591,946 $ 592,821 Depreciation expense on Rail assets leased to others amounted to $15.3 million and $15.4 million for the six months ended June 30, 2021 and 2020, respectively. Additionally, depreciation expense on Rail assets leased to others amounted to $7.6 million and $7.7 million for the three months ended June 30, 2021 and 2020, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term and long-term debt at June 30, 2021, December 31, 2020 and June 30, 2020 consisted of the following: (in thousands) June 30, December 31, June 30, Short-term debt – non-recourse $ 120,020 $ 93,192 $ 43,284 Short-term debt – recourse 637,251 310,511 52,787 Total short-term debt $ 757,271 $ 403,703 $ 96,071 Current maturities of long-term debt – non-recourse $ 9,078 $ 6,438 $ 4,845 Current maturities of long-term debt – recourse 47,504 69,037 63,632 Total current maturities of long-term debt $ 56,582 $ 75,475 $ 68,477 Long-term debt, less: current maturities – non-recourse $ 116,219 $ 143,406 $ 325,819 Long-term debt, less: current maturities – recourse 750,235 773,134 650,154 Total long-term debt, less: current maturities $ 866,454 $ 916,540 $ 975,973 On February 4, 2021, the Company completed the second amendment to its credit agreement dated January 11, 2019. The amendment, which replaced an underwritten bridge loan received on January 21, 2021, provided for a short-term $250 million term note in which the entire stated principal is due on December 31, 2021. The term note bears interest at variable rates, which are based on LIBOR plus an applicable spread. On May 6, 2021, the Company completed the third amendment to its credit agreement dated January 11, 2019. The amendment provides for a short term note of approximately $358 million in which the entire stated principal is due on March 31, 2022. The term note will bear interest at variable rates, which are based on LIBOR plus an applicable spread. The total borrowing capacity of the Company's lines of credit at June 30, 2021 was $1,404.6 million of which the Company had a total of $1,173.5 million available for borrowing under its lines of credit. The Company's borrowing capacity is reduced by a combination of outstanding borrowings and letters of credit. As of June 30, 2021, December 31, 2020 and June 30, 2020, the estimated fair value of long-term debt, including the current portion, was $946.8 million, $1,026.8 million and $1,090.1 million, respectively. The Company estimates the fair value of its long-term debt based upon the Company’s credit standing and current interest rates offered to the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DerivativesThe 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, 2021, December 31, 2020 and June 30, 2020, 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 non-current commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets: (in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Cash collateral paid $ 219,469 $ 208,670 $ 799 Fair value of derivatives (180,842) (157,301) 21,363 Net derivative asset position $ 38,627 $ 51,369 $ 22,162 The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities: June 30, 2021 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 547,186 $ 16,480 $ 34,327 $ 423 $ 598,416 Commodity derivative liabilities (259,507) (873) (124,693) (3,874) (388,947) Cash collateral paid 219,469 — — — 219,469 Balance sheet line item totals $ 507,148 $ 15,607 $ (90,366) $ (3,451) $ 428,938 December 31, 2020 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 304,533 $ 4,328 $ 19,386 $ 14 $ 328,261 Commodity derivative liabilities (192,023) (348) (166,850) (243) (359,464) Cash collateral paid 208,196 — 474 — 208,670 Balance sheet line item totals $ 320,706 $ 3,980 $ (146,990) $ (229) $ 177,467 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 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, 2021 and 2020 are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Gains on commodity derivatives included in cost of sales and merchandising revenues $ 73,688 $ 8,797 $ 240,673 $ 39,757 The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at June 30, 2021, December 31, 2020 and June 30, 2020: June 30, 2021 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 696,674 — — — Soybeans 75,507 — — — Wheat 129,264 — — — Oats 45,810 — — — Ethanol — 198,316 — — Corn oil — — 70,637 — Soybean Oil — — 23,952 — Other 7,803 3,957 2,757 1,925 Subtotal 955,058 202,273 97,346 1,925 Exchange traded: Corn 243,190 — — — Soybeans 49,375 — — — Wheat 80,004 — — — Oats 1,430 — — — Ethanol — 112,812 — — Propane — 18,480 — — Other — 5 2,351 197 Subtotal 373,999 131,297 2,351 197 Total 1,329,057 333,570 99,697 2,122 December 31, 2020 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 684,654 — — — Soybeans 73,521 — — — Wheat 109,661 — — — Oats 27,482 — — — Ethanol — 124,795 — — Corn oil — — 36,015 — Soybean oil — — 26,510 — Other 4,371 2,058 740 1,859 Subtotal 899,689 126,853 63,265 1,859 Exchange traded: Corn 267,792 — — — Soybeans 53,730 — — — Wheat 80,733 — — — Oats 1,800 — — — Ethanol — 73,584 — — Propane — 17,094 — — Other — 2,898 14 149 Subtotal 404,055 93,576 14 149 Total 1,303,744 220,429 63,279 2,008 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 Interest Rate and Other Derivatives The Company’s objectives for 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, 2021, December 31, 2020 and June 30, 2020, the Company had recorded the following amounts for the fair value of the Company's other derivatives: (in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Derivatives not designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ — $ (589) $ (1,174) Interest rate contracts included in Other long-term liabilities (309) (430) (553) Foreign currency contracts included in Other current assets 1,523 2,753 791 Derivatives designated as hedging instruments Interest rate contracts included in Other current assets $ 3,849 $ 164 $ — Interest rate contracts included in Accrued expenses and other current liabilities (6,944) (6,664) (8,806) Interest rate contracts included in Other long-term liabilities (11,506) (18,539) (24,388) 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) 2021 2020 2021 2020 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest income (expense), net $ 355 $ 186 $ 709 $ (720) Derivatives designated as hedging instruments Interest rate derivative losses included in Other comprehensive income (loss) 2,471 (2,475) $ (10,476) $ (20,657) Interest rate derivatives losses included in Interest income (expense), net $ (1,656) $ (1,917) (3,273) (2,700) Outstanding interest rate derivatives, as of June 30, 2021, 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% 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 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 0.0% to 0.8% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Many of the Company’s revenues are generated from contracts that are outside the scope of Accounting Standard Codification ("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 leasing revenue is accounted for under ASC 842, Leases . The breakdown of revenues between ASC 606 and other standards are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Revenues under ASC 606 $ 640,083 $ 459,105 $ 1,146,551 $ 806,607 Revenues under ASC 815 2,611,981 1,406,307 4,719,603 2,886,360 Revenues under ASC 842 21,662 24,768 43,301 50,319 Total revenues $ 3,273,726 $ 1,890,180 $ 5,909,455 $ 3,743,286 The Company's revenues under ASC 842 are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Operating lease revenue $ 20,458 $ 23,276 $ 41,308 $ 47,332 Sales-type lease revenue 101 232 202 334 Variable lease revenue 1,103 1,260 1,791 2,653 Total revenues $ 21,662 $ 24,768 $ 43,301 $ 50,319 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, 2021 and 2020, respectively: Three months ended June 30, 2021 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 84,915 $ — $ 84,915 Primary nutrients — — 213,604 — 213,604 Services 2,114 — 3,869 9,233 15,216 Products and co-products 74,948 184,263 — — 259,211 Frac sand and propane 36,649 — — — 36,649 Other 4,037 394 19,020 7,037 30,488 Total $ 117,748 $ 184,657 $ 321,408 $ 16,270 $ 640,083 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 Service 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 Six months ended June 30, 2021 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 161,721 $ — $ 161,721 Primary nutrients — — 285,263 — 285,263 Service 3,568 — 5,158 19,177 27,903 Products and co-products 146,936 329,907 — — 476,843 Frac sand and propane 128,714 — — — 128,714 Other 6,969 4,153 38,518 16,467 66,107 Total $ 286,187 $ 334,060 $ 490,660 $ 35,644 $ 1,146,551 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 Approximately 3% of revenues accounted for under ASC 606 during both three and six months periods ended June 30, 2021 and 2020, respectively, are recorded over time which primarily relates to service revenues noted above. Contract balances |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On a quarterly basis, the Company estimates the effective tax rate expected to be applicable for the full year and makes changes, if necessary, based on new information or events. The estimated annual effective tax rate is forecasted based on actual historical information and forward-looking estimates and is used to provide for income taxes in interim reporting periods. The Company also recognizes the tax impact of certain unusual or infrequently occurring items, such as the effects of changes in tax laws or rates and impacts from settlements with tax authorities, discretely in the quarter in which they occur. For the six months ended June 30, 2021, the Company estimated its annual effective tax rate utilizing the annualized effective tax rate method under ASC 740, Income Taxes , to calculate its interim income tax provision. For the six months ended June 30, 2020, the Company utilized the discrete effective tax rate method, as allowed under ASC 740, to calculate its interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. At the time, it was not possible to reliably estimate the annual effective tax rate for the year due to uncertainty created by the COVID-19 pandemic. As a result, relatively small changes in the provision for income taxes in 2020 caused disproportionate changes in the effective tax rate, as compared to 2021. For the three months ended June 30, 2021, the Company recorded income tax expense of $10.6 million at an effective income tax rate of 18.7%. The annual effective tax rate differs from the statutory U.S. Federal tax rate due to the impacts of state and local taxes and non-deductible compensation, offset by benefits related to the treatment of mark-to-market activity on certain contracts in the Ethanol segment. The change in effective tax rate for the three months ended June 30, 2021 as compared to the same period last year was primarily attributed to the favorable impact of the mark-to-market activity on certain contracts in the Ethanol segment, coupled with additional benefits from the CARES Act in the prior year. For the three months ended June 30, 2020, using the discrete effective tax rate method to calculate the interim tax provision, the Company recorded an income tax benefit of $12.2 million at an effective income tax rate of 155.8%. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss) attributable to the Company for the three and six months ended June 30, 2021 and 2020: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Currency Translation Adjustment Beginning balance $ 6,963 $ (5,574) $ 5,739 $ 1,065 Other comprehensive income (loss) before reclassifications 1,469 3,249 2,693 (3,390) Tax effect — — — — Other comprehensive income (loss), net of tax 1,469 3,249 2,693 (3,390) Ending balance $ 8,432 $ (2,325) $ 8,432 $ (2,325) Hedging Adjustment Beginning balance $ (8,365) $ (23,106) $ (18,106) $ (9,443) Other comprehensive income (loss) before reclassifications (3,514) (3,669) 4,613 (18,059) Amounts reclassified from accumulated other comprehensive income (loss)(a) 2,208 2,412 4,360 3,381 Tax effect (552) (603) (1,090) (845) Other comprehensive income (loss), net of tax (1,858) (1,860) 7,883 (15,523) Ending balance $ (10,223) $ (24,966) $ (10,223) $ (24,966) Pension and Other Postretirement Adjustment Beginning balance $ (70) $ 773 $ 33 $ 889 Other comprehensive income (loss) before reclassifications (63) 186 5 241 Amounts reclassified from accumulated other comprehensive income (loss)(b) (228) (228) (456) (456) Tax effect 57 57 114 114 Other comprehensive income (loss), net of tax (234) 15 (337) (101) Ending balance $ (304) $ 788 $ (304) $ 788 Investments in Convertible Preferred Securities Adjustment Beginning balance $ 258 $ 258 $ 258 $ 258 Other comprehensive income (loss), net of tax — — — — Ending balance $ 258 $ 258 $ 258 $ 258 Total AOCI Ending Balance $ (1,837) $ (26,245) $ (1,837) $ (26,245) (a) Amounts reclassified from gain (loss) on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings and is recognized in Interest expense, net. See Note 5 for additional information. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 2021 2020 Numerator: Net income (loss) available to The Andersons Inc. common shareholders $ 43,499 $ 30,439 $ 58,606 $ (7,222) Denominator: Weighted average shares outstanding – basic 33,263 32,932 33,226 32,876 Effect of dilutive awards 316 77 391 — Weighted average shares outstanding – diluted 33,579 33,009 33,617 32,876 Earnings (loss) per share Basic $ 1.31 $ 0.92 $ 1.76 $ (0.22) Diluted $ 1.30 $ 0.92 $ 1.74 $ (0.22) There were 57 thousand and 471 thousand antidilutive awards for the three months ended June 30, 2021 and June 30, 2020, respectively. There were 82 thousand antidilutive share awards outstanding for the six months ended June 30, 2021. All awards were antidilutive for the six months ended June 30, 2020 as the Company incurred a net loss. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021, December 31, 2020 and June 30, 2020: (in thousands) June 30, 2021 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 38,627 $ 390,311 $ — $ 428,938 Provisionally priced contracts (b) 32,710 (25,210) — 7,500 Convertible preferred securities (c) — — 13,550 13,550 Other assets and liabilities (d) 5,373 (14,909) — (9,536) Total $ 76,710 $ 350,192 $ 13,550 $ 440,452 (in thousands) December 31, 2020 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 51,369 $ 126,098 $ — $ 177,467 Provisionally priced contracts (b) 19,793 (48,818) — (29,025) Convertible preferred securities (c) — — 8,849 8,849 Other assets and liabilities (d) 7,972 (26,058) — (18,086) Total $ 79,134 $ 51,222 $ 8,849 $ 139,205 (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) (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 and foreign exchange derivative contracts (Level 1), as well as, 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, the Company has 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 RMI which consists of agricultural commodity 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 of RMI is disclosed in Note 2. 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 the Company has 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 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) 2021 2020 Assets at January 1, $ 8,849 $ 8,404 Additional investments 2,800 250 Assets at March 31, $ 11,649 $ 8,654 Additional Investments 1,901 — Assets at June 30, $ 13,550 $ 8,654 The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of June 30, 2021, December 31, 2020 and June 30, 2020: Quantitative Information about Recurring Level 3 Fair Value Measurements Fair Value as of (in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 13,550 $ 8,849 $ 8,654 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. There were no non-recurring fair value measurements as of June 30, 2021, December 31, 2020 and June 30, 2020. 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, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties In the ordinary course of business, and on an arm's length basis, the Company will 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) 2021 2020 2021 2020 Sales revenues $ 85,294 $ 29,659 $ 151,940 $ 84,353 Purchases of product and capital assets 8,662 6,419 20,336 21,996 (in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Accounts receivable (a) $ 11,835 $ 5,623 $ 7,332 Accounts payable (b) 2,287 5,251 2,598 (a) Accounts receivable represents amounts due from related parties for the sale of ethanol and other various items. (b) 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, 2021 | |
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 as well as the structure of management. The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The Ethanol business produces ethanol and co-products 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 and intercompany eliminations between the segments. 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. The Company does not have any customers who represent 10 percent or more of total revenues from external customers. Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Revenues from external customers Trade $ 2,297,869 $ 1,351,168 $ 4,280,377 $ 2,729,209 Ethanol 616,527 223,745 1,059,486 536,784 Plant Nutrient 321,409 279,825 490,661 404,738 Rail 37,921 35,442 78,931 72,555 Total $ 3,273,726 $ 1,890,180 $ 5,909,455 $ 3,743,286 Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Income (loss) before income taxes attributable to the Company Trade $ 13,777 $ 393 $ 27,632 $ (9,591) Ethanol 23,531 868 26,457 (23,108) Plant Nutrient 23,995 19,407 32,518 18,215 Rail 3,064 2,606 7,955 3,613 Other (10,226) (5,035) (19,569) (10,015) Income (loss) before income taxes attributable to the Company 54,141 18,239 74,993 (20,886) Income (loss) attributable to noncontrolling interests 2,625 (10,407) 780 (23,856) Income (loss) before income taxes $ 56,766 $ 7,832 $ 75,773 $ (44,742) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation activities The Company is party to litigation, or threats thereof, both as defendant and plaintiff with some regularity, although individual cases that are material in size occur infrequently. As a defendant, the Company establishes reserves for claimed amounts that are considered probable and capable of estimation. If those cases are resolved for lesser amounts, the excess reserves are taken into income and, conversely, if those cases are resolved for larger than the amount the Company has accrued, the Company records additional expense. The Company believes it is unlikely that the results of its current legal proceedings for which it is the defendant, even if unfavorable, will be material. As a plaintiff, amounts that are collected can also result in sudden, non-recurring income. Litigation results depend upon a variety of factors, including the availability of evidence, the credibility of witnesses, the performance of counsel, the state of the law, and the impressions of judges and jurors, any of which can be critical in importance, yet difficult, if not impossible, to predict. Consequently, cases currently pending, or future matters, may result in unexpected, and non-recurring losses, or income, from time to time. Finally, litigation results are often subject to judicial reconsideration, appeal and further negotiation by the parties, and as a result, the final impact of a particular judicial decision may be unknown for some time or may result in continued reserves to account for the potential of such post-verdict actions. Specifically, the Company is party to a non-regulatory litigation claim, which 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. While the Company believes it has meritorious defenses against the suit, the ultimate resolution of the matter could result in a loss in excess of the amount accrued. Given the preliminary status of the claim, the Company does not believe the excess, net of the acquisition-related indemnity, is determinable. |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | Recently Adopted Accounting Pronouncements Simplified Accounting for Income Taxes |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory, Net [Abstract] | |
Classes of inventories | (in thousands) June 30, December 31, June 30, Grain and other agricultural products (a) $ 636,380 $ 1,025,809 $ 452,339 Frac sand and propane (a) 11,265 12,477 6,498 Ethanol and co-products (a) 155,993 114,895 63,195 Plant nutrients and cob products 101,286 139,885 87,346 Railcar repair parts 7,375 7,627 6,945 Total Inventories $ 912,299 $ 1,300,693 $ 616,323 (a) Includes RMI of $612.2 million , $983.2 million and $418.0 million at June 30, 2021, December 31, 2020 and June 30, 2020, respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 $ 39,884 $ 40,222 $ 40,188 Land improvements and leasehold improvements 97,454 96,700 96,028 Buildings and storage facilities 386,832 387,992 377,652 Machinery and equipment 948,517 925,074 881,144 Construction in progress 19,987 19,725 35,982 1,492,674 1,469,713 1,430,994 Less: accumulated depreciation 650,912 590,534 524,977 Property, plant and equipment, net $ 841,762 $ 879,179 $ 906,017 |
Components of railcar assets leased to others | The components of Rail assets leased to others are as follows: (in thousands) June 30, December 31, June 30, Rail assets leased to others $ 735,255 $ 750,473 $ 742,107 Less: accumulated depreciation 160,670 158,527 149,286 Rail assets, net $ 574,585 $ 591,946 $ 592,821 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Debt | Short-term and long-term debt at June 30, 2021, December 31, 2020 and June 30, 2020 consisted of the following: (in thousands) June 30, December 31, June 30, Short-term debt – non-recourse $ 120,020 $ 93,192 $ 43,284 Short-term debt – recourse 637,251 310,511 52,787 Total short-term debt $ 757,271 $ 403,703 $ 96,071 Current maturities of long-term debt – non-recourse $ 9,078 $ 6,438 $ 4,845 Current maturities of long-term debt – recourse 47,504 69,037 63,632 Total current maturities of long-term debt $ 56,582 $ 75,475 $ 68,477 Long-term debt, less: current maturities – non-recourse $ 116,219 $ 143,406 $ 325,819 Long-term debt, less: current maturities – recourse 750,235 773,134 650,154 Total long-term debt, less: current maturities $ 866,454 $ 916,540 $ 975,973 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 non-current commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets: (in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Cash collateral paid $ 219,469 $ 208,670 $ 799 Fair value of derivatives (180,842) (157,301) 21,363 Net derivative asset position $ 38,627 $ 51,369 $ 22,162 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities: June 30, 2021 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 547,186 $ 16,480 $ 34,327 $ 423 $ 598,416 Commodity derivative liabilities (259,507) (873) (124,693) (3,874) (388,947) Cash collateral paid 219,469 — — — 219,469 Balance sheet line item totals $ 507,148 $ 15,607 $ (90,366) $ (3,451) $ 428,938 December 31, 2020 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 304,533 $ 4,328 $ 19,386 $ 14 $ 328,261 Commodity derivative liabilities (192,023) (348) (166,850) (243) (359,464) Cash collateral paid 208,196 — 474 — 208,670 Balance sheet line item totals $ 320,706 $ 3,980 $ (146,990) $ (229) $ 177,467 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 |
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, 2021 and 2020 are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Gains on commodity derivatives included in cost of sales and merchandising revenues $ 73,688 $ 8,797 $ 240,673 $ 39,757 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) 2021 2020 2021 2020 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest income (expense), net $ 355 $ 186 $ 709 $ (720) Derivatives designated as hedging instruments Interest rate derivative losses included in Other comprehensive income (loss) 2,471 (2,475) $ (10,476) $ (20,657) Interest rate derivatives losses included in Interest income (expense), net $ (1,656) $ (1,917) (3,273) (2,700) |
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, 2021, December 31, 2020 and June 30, 2020: June 30, 2021 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 696,674 — — — Soybeans 75,507 — — — Wheat 129,264 — — — Oats 45,810 — — — Ethanol — 198,316 — — Corn oil — — 70,637 — Soybean Oil — — 23,952 — Other 7,803 3,957 2,757 1,925 Subtotal 955,058 202,273 97,346 1,925 Exchange traded: Corn 243,190 — — — Soybeans 49,375 — — — Wheat 80,004 — — — Oats 1,430 — — — Ethanol — 112,812 — — Propane — 18,480 — — Other — 5 2,351 197 Subtotal 373,999 131,297 2,351 197 Total 1,329,057 333,570 99,697 2,122 December 31, 2020 (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 684,654 — — — Soybeans 73,521 — — — Wheat 109,661 — — — Oats 27,482 — — — Ethanol — 124,795 — — Corn oil — — 36,015 — Soybean oil — — 26,510 — Other 4,371 2,058 740 1,859 Subtotal 899,689 126,853 63,265 1,859 Exchange traded: Corn 267,792 — — — Soybeans 53,730 — — — Wheat 80,733 — — — Oats 1,800 — — — Ethanol — 73,584 — — Propane — 17,094 — — Other — 2,898 14 149 Subtotal 404,055 93,576 14 149 Total 1,303,744 220,429 63,279 2,008 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 |
Schedule of Fair Value of Interest Rate Derivative Liabilities | At June 30, 2021, December 31, 2020 and June 30, 2020, the Company had recorded the following amounts for the fair value of the Company's other derivatives: (in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Derivatives not designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ — $ (589) $ (1,174) Interest rate contracts included in Other long-term liabilities (309) (430) (553) Foreign currency contracts included in Other current assets 1,523 2,753 791 Derivatives designated as hedging instruments Interest rate contracts included in Other current assets $ 3,849 $ 164 $ — Interest rate contracts included in Accrued expenses and other current liabilities (6,944) (6,664) (8,806) Interest rate contracts included in Other long-term liabilities (11,506) (18,539) (24,388) |
Schedule of Outstanding Interest Rate Derivatives | Outstanding interest rate derivatives, as of June 30, 2021, 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% 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 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 0.0% to 0.8% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Breakdown of Revenues between ASC 606 | The breakdown of revenues between ASC 606 and other standards are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Revenues under ASC 606 $ 640,083 $ 459,105 $ 1,146,551 $ 806,607 Revenues under ASC 815 2,611,981 1,406,307 4,719,603 2,886,360 Revenues under ASC 842 21,662 24,768 43,301 50,319 Total revenues $ 3,273,726 $ 1,890,180 $ 5,909,455 $ 3,743,286 |
Lessor, Lease Income | The Company's revenues under ASC 842 are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Operating lease revenue $ 20,458 $ 23,276 $ 41,308 $ 47,332 Sales-type lease revenue 101 232 202 334 Variable lease revenue 1,103 1,260 1,791 2,653 Total revenues $ 21,662 $ 24,768 $ 43,301 $ 50,319 |
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, 2021 and 2020, respectively: Three months ended June 30, 2021 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 84,915 $ — $ 84,915 Primary nutrients — — 213,604 — 213,604 Services 2,114 — 3,869 9,233 15,216 Products and co-products 74,948 184,263 — — 259,211 Frac sand and propane 36,649 — — — 36,649 Other 4,037 394 19,020 7,037 30,488 Total $ 117,748 $ 184,657 $ 321,408 $ 16,270 $ 640,083 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 Service 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 Six months ended June 30, 2021 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 161,721 $ — $ 161,721 Primary nutrients — — 285,263 — 285,263 Service 3,568 — 5,158 19,177 27,903 Products and co-products 146,936 329,907 — — 476,843 Frac sand and propane 128,714 — — — 128,714 Other 6,969 4,153 38,518 16,467 66,107 Total $ 286,187 $ 334,060 $ 490,660 $ 35,644 $ 1,146,551 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 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (loss) attributable to the Company for the three and six months ended June 30, 2021 and 2020: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Currency Translation Adjustment Beginning balance $ 6,963 $ (5,574) $ 5,739 $ 1,065 Other comprehensive income (loss) before reclassifications 1,469 3,249 2,693 (3,390) Tax effect — — — — Other comprehensive income (loss), net of tax 1,469 3,249 2,693 (3,390) Ending balance $ 8,432 $ (2,325) $ 8,432 $ (2,325) Hedging Adjustment Beginning balance $ (8,365) $ (23,106) $ (18,106) $ (9,443) Other comprehensive income (loss) before reclassifications (3,514) (3,669) 4,613 (18,059) Amounts reclassified from accumulated other comprehensive income (loss)(a) 2,208 2,412 4,360 3,381 Tax effect (552) (603) (1,090) (845) Other comprehensive income (loss), net of tax (1,858) (1,860) 7,883 (15,523) Ending balance $ (10,223) $ (24,966) $ (10,223) $ (24,966) Pension and Other Postretirement Adjustment Beginning balance $ (70) $ 773 $ 33 $ 889 Other comprehensive income (loss) before reclassifications (63) 186 5 241 Amounts reclassified from accumulated other comprehensive income (loss)(b) (228) (228) (456) (456) Tax effect 57 57 114 114 Other comprehensive income (loss), net of tax (234) 15 (337) (101) Ending balance $ (304) $ 788 $ (304) $ 788 Investments in Convertible Preferred Securities Adjustment Beginning balance $ 258 $ 258 $ 258 $ 258 Other comprehensive income (loss), net of tax — — — — Ending balance $ 258 $ 258 $ 258 $ 258 Total AOCI Ending Balance $ (1,837) $ (26,245) $ (1,837) $ (26,245) (a) Amounts reclassified from gain (loss) on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings and is recognized in Interest expense, net. See Note 5 for additional information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share | (in thousands, except per common share data) Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator: Net income (loss) available to The Andersons Inc. common shareholders $ 43,499 $ 30,439 $ 58,606 $ (7,222) Denominator: Weighted average shares outstanding – basic 33,263 32,932 33,226 32,876 Effect of dilutive awards 316 77 391 — Weighted average shares outstanding – diluted 33,579 33,009 33,617 32,876 Earnings (loss) per share Basic $ 1.31 $ 0.92 $ 1.76 $ (0.22) Diluted $ 1.30 $ 0.92 $ 1.74 $ (0.22) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021, December 31, 2020 and June 30, 2020: (in thousands) June 30, 2021 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 38,627 $ 390,311 $ — $ 428,938 Provisionally priced contracts (b) 32,710 (25,210) — 7,500 Convertible preferred securities (c) — — 13,550 13,550 Other assets and liabilities (d) 5,373 (14,909) — (9,536) Total $ 76,710 $ 350,192 $ 13,550 $ 440,452 (in thousands) December 31, 2020 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 51,369 $ 126,098 $ — $ 177,467 Provisionally priced contracts (b) 19,793 (48,818) — (29,025) Convertible preferred securities (c) — — 8,849 8,849 Other assets and liabilities (d) 7,972 (26,058) — (18,086) Total $ 79,134 $ 51,222 $ 8,849 $ 139,205 (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) (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 and foreign exchange derivative contracts (Level 1), as well as, 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) 2021 2020 Assets at January 1, $ 8,849 $ 8,404 Additional investments 2,800 250 Assets at March 31, $ 11,649 $ 8,654 Additional Investments 1,901 — Assets at June 30, $ 13,550 $ 8,654 |
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, 2021, December 31, 2020 and June 30, 2020: Quantitative Information about Recurring Level 3 Fair Value Measurements Fair Value as of (in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 13,550 $ 8,849 $ 8,654 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. |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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) 2021 2020 2021 2020 Sales revenues $ 85,294 $ 29,659 $ 151,940 $ 84,353 Purchases of product and capital assets 8,662 6,419 20,336 21,996 (in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Accounts receivable (a) $ 11,835 $ 5,623 $ 7,332 Accounts payable (b) 2,287 5,251 2,598 (a) Accounts receivable represents amounts due from related parties for the sale of ethanol and other various items. (b) 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, 2021 | |
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. The Company does not have any customers who represent 10 percent or more of total revenues from external customers. Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Revenues from external customers Trade $ 2,297,869 $ 1,351,168 $ 4,280,377 $ 2,729,209 Ethanol 616,527 223,745 1,059,486 536,784 Plant Nutrient 321,409 279,825 490,661 404,738 Rail 37,921 35,442 78,931 72,555 Total $ 3,273,726 $ 1,890,180 $ 5,909,455 $ 3,743,286 Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Income (loss) before income taxes attributable to the Company Trade $ 13,777 $ 393 $ 27,632 $ (9,591) Ethanol 23,531 868 26,457 (23,108) Plant Nutrient 23,995 19,407 32,518 18,215 Rail 3,064 2,606 7,955 3,613 Other (10,226) (5,035) (19,569) (10,015) Income (loss) before income taxes attributable to the Company 54,141 18,239 74,993 (20,886) Income (loss) attributable to noncontrolling interests 2,625 (10,407) 780 (23,856) Income (loss) before income taxes $ 56,766 $ 7,832 $ 75,773 $ (44,742) |
Inventories (Details)
Inventories (Details) $ in Thousands, bu in Millions | 6 Months Ended | ||
Jun. 30, 2021USD ($)bu | Jun. 30, 2020USD ($)bu | Dec. 31, 2020USD ($)bu | |
Inventory [Line Items] | |||
Grain and other agricultural products | $ 636,380 | $ 452,339 | $ 1,025,809 |
Frac sand and propane | 11,265 | 6,498 | 12,477 |
Ethanol and co-products | 155,993 | 63,195 | 114,895 |
Plant nutrients and cob products | 101,286 | 87,346 | 139,885 |
Railcar repair parts | 7,375 | 6,945 | 7,627 |
Total inventories | 912,299 | 616,323 | 1,300,693 |
Readily marketable inventory | $ 612,200 | $ 418,000 | $ 983,200 |
Bushels of grain held in storage for others and excluded from inventory calculations | bu | 1.2 | 1.7 | 3 |
Inventory write down | $ 2,599 | $ 10,922 | |
COVID-19 Pandemic | |||
Inventory [Line Items] | |||
Inventory write down | $ 10,900 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Components of property, plant and equipment | |||
Land | $ 39,884 | $ 40,222 | $ 40,188 |
Land improvements and leasehold improvements | 97,454 | 96,700 | 96,028 |
Buildings and storage facilities | 386,832 | 387,992 | 377,652 |
Machinery and equipment | 948,517 | 925,074 | 881,144 |
Construction in progress | 19,987 | 19,725 | 35,982 |
Property, plant and equipment, gross | 1,492,674 | 1,469,713 | 1,430,994 |
Less: accumulated depreciation | 650,912 | 590,534 | 524,977 |
Property, plant and equipment, net | $ 841,762 | $ 879,179 | $ 906,017 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 32.3 | $ 31.2 | $ 64.2 | $ 62.3 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Rail Group Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Components of Railcar assets leased to others | |||||
Rail Group assets leased to others, gross | $ 735,255 | $ 742,107 | $ 735,255 | $ 742,107 | $ 750,473 |
Less: accumulated depreciation | 160,670 | 149,286 | 160,670 | 149,286 | 158,527 |
Railcar assets leased to others, net | 574,585 | 592,821 | 574,585 | 592,821 | $ 591,946 |
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | 95,154 | 93,898 | |||
Rail | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | $ 7,600 | $ 7,700 | $ 15,300 | $ 15,400 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Short-term debt | $ 757,271 | $ 403,703 | $ 96,071 |
Long-term debt | |||
Current maturities of long-term debt | 56,582 | 75,475 | 68,477 |
Total current maturities of long-term debt | 56,582 | 75,475 | 68,477 |
Long-term debt, less current maturities | 866,454 | 916,540 | 975,973 |
Total long-term debt, less: current maturities | 866,454 | 916,540 | 975,973 |
Nonrecourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 120,020 | 93,192 | 43,284 |
Long-term debt | |||
Current maturities of long-term debt | 9,078 | 6,438 | 4,845 |
Long-term debt, less current maturities | 750,235 | 773,134 | 650,154 |
Recourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 637,251 | 310,511 | 52,787 |
Long-term debt | |||
Current maturities of long-term debt | 47,504 | 69,037 | 63,632 |
Long-term debt, less current maturities | 116,219 | $ 143,406 | $ 325,819 |
Line of credit | |||
Long-term debt | |||
Credit facility, maximum borrowing capacity | 1,404,600 | ||
Total available for borrowings under lines of credit | $ 1,173,500 |
Debt (Textual) (Details)
Debt (Textual) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | May 06, 2021 | Feb. 04, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Notes payable | |||||
Line of Credit Facility [Line Items] | |||||
Debt amount | $ 358 | $ 250 | |||
Estimate of Fair Value Measurement | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt, fair value | $ 946.8 | $ 1,026.8 | $ 1,090.1 | ||
Line of credit | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, maximum borrowing capacity | 1,404.6 | ||||
Total available for borrowings under lines of credit | $ 1,173.5 |
Derivatives (Textual) (Details)
Derivatives (Textual) (Details) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | |||
Net derivative asset position, Collateral paid (received) | $ 219,469 | $ 208,670 | $ 799 |
Net derivative liability position, Fair value of derivatives | (180,842) | (157,301) | |
Net derivative asset position, Fair value of derivatives | 21,363 | ||
Net derivative asset position, net | $ 38,627 | $ 51,369 | $ 22,162 |
Derivatives (Gross Current and
Derivatives (Gross Current and Noncurrent Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | $ 21,363 | ||
Commodity derivative liabilities | $ (180,842) | $ (157,301) | |
Commodity derivative assets - current | 507,148 | 320,706 | 112,089 |
Commodity derivative liabilities - current | (90,366) | (146,990) | (65,186) |
Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 598,416 | 328,261 | 150,661 |
Commodity derivative liabilities | (388,947) | (359,464) | (105,544) |
Cash collateral paid | 219,469 | 208,670 | |
Cash collateral paid | 799 | ||
Total | 428,938 | 177,467 | 45,916 |
Commodity | Commodity Derivative Assets - Current | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 547,186 | 304,533 | 142,110 |
Commodity derivative liabilities | (259,507) | (192,023) | (30,820) |
Cash collateral paid | 219,469 | 208,196 | |
Cash collateral paid | 799 | ||
Commodity derivative assets - current | 507,148 | 320,706 | 112,089 |
Commodity | Commodity Derivative Assets - Noncurrent | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 16,480 | 4,328 | 2,916 |
Commodity derivative liabilities | (873) | (348) | (214) |
Cash collateral paid | 0 | 0 | |
Cash collateral paid | 0 | ||
Commodity derivative assets - noncurrent | 15,607 | 3,980 | 2,702 |
Commodity | Commodity Derivative Liabilities - Current | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 34,327 | 19,386 | 5,511 |
Commodity derivative liabilities | (124,693) | (166,850) | (70,697) |
Cash collateral paid | 0 | 474 | |
Cash collateral paid | 0 | ||
Commodity derivative liabilities - current | (90,366) | (146,990) | (65,186) |
Commodity | Commodity Derivative Liabilities - Noncurrent | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 423 | 14 | 124 |
Commodity derivative liabilities | (3,874) | (243) | (3,813) |
Cash collateral paid | 0 | 0 | |
Cash collateral paid | 0 | ||
Commodity derivative liabilities - noncurrent | $ (3,451) | $ (229) | $ (3,689) |
Derivatives (Pre-tax Gains and
Derivatives (Pre-tax Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Commodity | Cost of sales and merchandising revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments recognized in earnings | $ 73,688 | $ 8,797 | $ 240,673 | $ 39,757 |
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 | 355 | 186 | 709 | (720) |
Designated as Hedging Instrument | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate derivative losses included in Other comprehensive income (loss) | 2,471 | (2,475) | (10,476) | (20,657) |
Designated as Hedging Instrument | Interest rate contracts | Operating, administrative and general expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate derivatives losses included in Interest income (expense), net | $ (1,656) | $ (1,917) | $ (3,273) | $ (2,700) |
Derivatives (Volume of Contract
Derivatives (Volume of Contracts Outstanding) (Details) lb in Thousands, gal in Thousands, bu in Thousands, T in Thousands | Jun. 30, 2021bu | Jun. 30, 2021gal | Jun. 30, 2021lb | Jun. 30, 2021T | Dec. 31, 2020bu | Dec. 31, 2020gal | Dec. 31, 2020lb | Dec. 31, 2020T | Jun. 30, 2020bu | Jun. 30, 2020gal | Jun. 30, 2020lb | Jun. 30, 2020T |
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 1,329,057 | 333,570 | 99,697 | 2,122 | 1,303,744 | 220,429 | 63,279 | 2,008 | 1,049,013 | 216,101 | 8,853 | 2,578 |
Non-exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 955,058 | 202,273 | 97,346 | 1,925 | 899,689 | 126,853 | 63,265 | 1,859 | 656,478 | 146,549 | 8,513 | 2,370 |
Non-exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 696,674 | 0 | 0 | 0 | 684,654 | 0 | 0 | 0 | 437,275 | 0 | 0 | 0 |
Non-exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 75,507 | 0 | 0 | 0 | 73,521 | 0 | 0 | 0 | 50,012 | 0 | 0 | 0 |
Non-exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 129,264 | 0 | 0 | 0 | 109,661 | 0 | 0 | 0 | 95,133 | 0 | 0 | 0 |
Non-exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 45,810 | 0 | 0 | 0 | 27,482 | 0 | 0 | 0 | 49,053 | 0 | 0 | 0 |
Non-exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 198,316 | 0 | 0 | 0 | 124,795 | 0 | 0 | 0 | 141,549 | 0 | 0 |
Non-exchange Traded | Corn oil | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 70,637 | 0 | 0 | 0 | 36,015 | 0 | 0 | 0 | 8,098 | 0 |
Non-exchange Traded | Soybean oil | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 23,952 | 0 | 0 | 0 | 26,510 | 0 | ||||
Non-exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 7,803 | 3,957 | 2,757 | 1,925 | 4,371 | 2,058 | 740 | 1,859 | 25,005 | 5,000 | 415 | 2,370 |
Exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 373,999 | 131,297 | 2,351 | 197 | 404,055 | 93,576 | 14 | 149 | 392,535 | 69,552 | 340 | 208 |
Exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 243,190 | 0 | 0 | 0 | 267,792 | 0 | 0 | 0 | 287,840 | 0 | 0 | 0 |
Exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 49,375 | 0 | 0 | 0 | 53,730 | 0 | 0 | 0 | 36,970 | 0 | 0 | 0 |
Exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 80,004 | 0 | 0 | 0 | 80,733 | 0 | 0 | 0 | 67,040 | 0 | 0 | 0 |
Exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 1,430 | 0 | 0 | 0 | 1,800 | 0 | 0 | 0 | 685 | 0 | 0 | 0 |
Exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 112,812 | 0 | 0 | 0 | 73,584 | 0 | 0 | 0 | 27,300 | 0 | 0 |
Exchange Traded | Propane | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 18,480 | 0 | 0 | 0 | 17,094 | 0 | 0 | 0 | 28,602 | 0 | 0 |
Exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 5 | 2,351 | 197 | 0 | 2,898 | 14 | 149 | 0 | 13,650 | 340 | 208 |
Derivatives (Fair Value of the
Derivatives (Fair Value of the Company's Other Derivatives) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | $ 0 | $ (589) | $ (1,174) |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative assets | 791 | ||
Not Designated as Hedging Instrument | Other long term liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | (309) | (430) | (553) |
Not Designated as Hedging Instrument | Other current assets | Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative assets | 1,523 | 2,753 | |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | (6,944) | (6,664) | (8,806) |
Designated as Hedging Instrument | Other long term liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | (11,506) | (18,539) | (24,388) |
Designated as Hedging Instrument | Other current assets | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative assets | $ 3,849 | $ 164 | $ 0 |
Derivatives (Outstanding Intere
Derivatives (Outstanding Interest Rate Derivatives) (Details) - Long-term $ in Millions | Jun. 30, 2021USD ($) |
Not Accounted for as Hedge | Swap 1.9% | |
Derivative [Line Items] | |
Notional amount | $ 23 |
Interest rate | 1.90% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0.00% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Not Accounted for as Hedge | Swap 0.0% to 0.7% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0.00% |
Not Accounted for as Hedge | Swap 0.0% to 0.7% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.70% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0.00% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0.00% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Accounted for as Hedge | Swap 1.8% | |
Derivative [Line Items] | |
Notional amount | $ 20 |
Interest rate | 1.80% |
Accounted for as Hedge | Swap 2.6% | |
Derivative [Line Items] | |
Notional amount | $ 10 |
Interest rate | 2.60% |
Accounted for as Hedge | Swap 2.7% | |
Derivative [Line Items] | |
Notional amount | $ 20 |
Interest rate | 2.70% |
Accounted for as Hedge | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 100 |
Interest rate | 2.50% |
Accounted for as Hedge | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.50% |
Accounted for as Hedge | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.50% |
Accounted for as Hedge | Swap 0.0% to 0.8% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Accounted for as Hedge | Swap 0.0% to 0.7% | |
Derivative [Line Items] | |
Notional amount | 50 |
Accounted for as Hedge | Swap 0.0% to 0.8% | |
Derivative [Line Items] | |
Notional amount | 50 |
Accounted for as Hedge | 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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | $ 640,083 | $ 459,105 | $ 1,146,551 | $ 806,607 |
Total revenues | 3,273,726 | 1,890,180 | 5,909,455 | 3,743,286 |
Revenues under ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 640,083 | 459,105 | 1,146,551 | 806,607 |
Revenues under ASC 842 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 21,662 | 24,768 | 43,301 | 50,319 |
Revenues under ASC 815 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 2,611,981 | $ 1,406,307 | $ 4,719,603 | $ 2,886,360 |
Revenue (Components of Lease In
Revenue (Components of Lease Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Operating lease revenue | $ 20,458 | $ 23,276 | $ 41,308 | $ 47,332 |
Sales-type lease revenue | 101 | 232 | 202 | 334 |
Variable lease revenue | 1,103 | 1,260 | 1,791 | 2,653 |
Total revenues | $ 21,662 | $ 24,768 | $ 43,301 | $ 50,319 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 640,083 | $ 459,105 | $ 1,146,551 | $ 806,607 |
Specialty nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 84,915 | 82,634 | 161,721 | 155,865 |
Primary nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 213,604 | 188,463 | 285,263 | 234,153 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 15,216 | 13,611 | 27,903 | 24,215 |
Products and co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 259,211 | 139,117 | 476,843 | 293,981 |
Frac sand and propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 36,649 | 21,439 | 128,714 | 71,314 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 30,488 | 13,841 | 66,107 | 27,079 |
Trade | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 117,748 | 92,470 | 286,187 | 201,184 |
Trade | Specialty nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Trade | Primary nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Trade | Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,114 | 2,357 | 3,568 | 4,043 |
Trade | Products and co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 74,948 | 63,344 | 146,936 | 116,509 |
Trade | Frac sand and propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 36,649 | 21,439 | 128,714 | 71,314 |
Trade | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 4,037 | 5,330 | 6,969 | 9,318 |
Ethanol | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 184,657 | 76,125 | 334,060 | 178,440 |
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 | 0 | 0 | 0 |
Ethanol | Products and co-products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 184,263 | 75,773 | 329,907 | 177,472 |
Ethanol | Frac sand and propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Ethanol | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 394 | 352 | 4,153 | 968 |
Plant Nutrient | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 321,408 | 279,825 | 490,660 | 404,738 |
Plant Nutrient | Specialty nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 84,915 | 82,634 | 161,721 | 155,865 |
Plant Nutrient | Primary nutrients | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 213,604 | 188,463 | 285,263 | 234,153 |
Plant Nutrient | Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,869 | 2,596 | 5,158 | 2,778 |
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 | 19,020 | 6,132 | 38,518 | 11,942 |
Rail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 16,270 | 10,685 | 35,644 | 22,245 |
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 | 9,233 | 8,658 | 19,177 | 17,394 |
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 | $ 7,037 | $ 2,027 | $ 16,467 | $ 4,851 |
Revenue (Textual) (Details)
Revenue (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Contract Liabilities | $ 17 | $ 17 | $ 45.6 | ||
Service | Transferred over Time | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer, percentage of service revenues | 3.00% | 3.00% | 3.00% | 3.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ 10,642 | $ (12,200) | $ 16,387 | $ (13,664) |
Effective income tax rate | (18.70%) | 155.80% | (21.60%) | 30.50% |
Unrecognized tax benefits | $ 44,400 | $ 24,700 | $ 44,400 | $ 24,700 |
Unrecognized tax benefit, reduction of deferred tax asset and refundable credits | $ 40,600 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 1,182,551 | $ 1,113,862 | $ 1,160,660 | $ 1,195,655 | |
Other comprehensive income (loss) | (623) | 1,404 | 10,239 | (19,014) | |
Ending Balance | 1,224,964 | 1,132,083 | 1,224,964 | 1,132,083 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (1,214) | (27,649) | (12,076) | (7,231) | |
Ending Balance | (1,837) | (26,245) | (1,837) | (26,245) | |
Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | 6,963 | (5,574) | 5,739 | 1,065 | |
Other comprehensive income (loss) before reclassifications | 1,469 | 3,249 | 2,693 | (3,390) | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) | 1,469 | 3,249 | 2,693 | (3,390) | |
Ending Balance | 8,432 | (2,325) | 8,432 | (2,325) | |
Hedging Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (8,365) | (23,106) | (18,106) | (9,443) | |
Other comprehensive income (loss) before reclassifications | (3,514) | (3,669) | 4,613 | (18,059) | |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 2,208 | 2,412 | 4,360 | 3,381 |
Other Comprehensive Income (Loss), Tax | (552) | (603) | (1,090) | (845) | |
Other comprehensive income (loss) | (1,858) | (1,860) | 7,883 | (15,523) | |
Ending Balance | (10,223) | (24,966) | (10,223) | (24,966) | |
Pension and Other Postretirement Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | (70) | 773 | 33 | 889 | |
Other comprehensive income (loss) before reclassifications | (63) | 186 | 5 | 241 | |
Amounts reclassified from accumulated other comprehensive income (loss) | [2] | (228) | (228) | (456) | (456) |
Other Comprehensive Income (Loss), Tax | 57 | 57 | 114 | 114 | |
Other comprehensive income (loss) | (234) | 15 | (337) | (101) | |
Ending Balance | (304) | 788 | (304) | 788 | |
Investments in Convertible Preferred Securities Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | 258 | 258 | 258 | 258 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Ending Balance | $ 258 | $ 258 | $ 258 | $ 258 | |
[1] | Amounts reclassified from gain (loss) on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings and is recognized in Interest expense, net. See Note 5 for additional information. | ||||
[2] | This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost recorded in Operating, administrative and general expenses. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to The Andersons, Inc. | $ 43,499 | $ 30,439 | $ 58,606 | $ (7,222) |
Denominator: | ||||
Weighted average shares outstanding - basic (shares) | 33,263 | 32,932 | 33,226 | 32,876 |
Effect of dilutive awards (shares) | 316 | 77 | 391 | 0 |
Weighted average shares outstanding - diluted (shares) | 33,579 | 33,009 | 33,617 | 32,876 |
Earnings (loss) per share | ||||
Earnings per common share - basic (dollars per share) | $ 1.31 | $ 0.92 | $ 1.76 | $ (0.22) |
Earnings per common share - diluted (dollars per share) | $ 1.30 | $ 0.92 | $ 1.74 | $ (0.22) |
Antidilutive awards (shares) | 57 | 471 | 82 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | $ 428,938 | $ 177,467 | $ 45,916 |
Provisionally price contracts | [2] | 7,500 | (29,025) | (57,036) |
Convertible preferred securities | [3] | 13,550 | 8,849 | 8,654 |
Other assets and liabilities | [4] | (9,536) | (18,086) | (30,820) |
Total | 440,452 | 139,205 | (33,286) | |
Level 1 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | 38,627 | 51,369 | 22,162 |
Provisionally price contracts | [2] | 32,710 | 19,793 | (15,139) |
Convertible preferred securities | [3] | 0 | 0 | 0 |
Other assets and liabilities | [4] | 5,373 | 7,972 | 4,102 |
Total | 76,710 | 79,134 | 11,125 | |
Level 2 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | 390,311 | 126,098 | 23,754 |
Provisionally price contracts | [2] | (25,210) | (48,818) | (41,897) |
Convertible preferred securities | [3] | 0 | 0 | 0 |
Other assets and liabilities | [4] | (14,909) | (26,058) | (34,922) |
Total | 350,192 | 51,222 | (53,065) | |
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] | 13,550 | 8,849 | 8,654 |
Other assets and liabilities | [4] | 0 | 0 | 0 |
Total | $ 13,550 | $ 8,849 | $ 8,654 | |
[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 and foreign exchange derivative contracts (Level 1), as well as, 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, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Reconciliation of Fair Value Measurements Using Level 3 | ||||
Asset (liability), Beginning Balance | $ 11,649 | $ 8,849 | $ 8,654 | $ 8,404 |
Additional investments | 1,901 | 2,800 | 0 | 250 |
Asset (liability), Ending Balance | $ 13,550 | $ 11,649 | $ 8,654 | $ 8,654 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information Level 3 Measurements ) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Implied based on market prices | Level 3 | Convertible preferred securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset fair value | $ 13,550 | $ 8,849 | $ 8,654 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |||||
Sales revenues | $ 85,294 | $ 29,659 | $ 151,940 | $ 84,353 | |
Purchases of product | 8,662 | 6,419 | 20,336 | 21,996 | |
Accounts receivable | 11,835 | 7,332 | 11,835 | 7,332 | $ 5,623 |
Accounts payable | $ 2,287 | $ 2,598 | $ 2,287 | $ 2,598 | $ 5,251 |
Segment Information (Textual) (
Segment Information (Textual) (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (business segments) | 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 3,273,726 | $ 1,890,180 | $ 5,909,455 | $ 3,743,286 | |
Income (loss) before income taxes attributable to the Company | 54,141 | 18,239 | 74,993 | (20,886) | |
Net income (loss) attributable to noncontrolling interests | 2,625 | (10,407) | 780 | (23,856) | |
Income (loss) before income taxes | 56,766 | 7,832 | 75,773 | (44,742) | |
Total assets | 4,049,089 | 3,303,989 | 4,049,089 | 3,303,989 | $ 4,272,121 |
Operating Segments | Trade | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 2,297,869 | 1,351,168 | 4,280,377 | 2,729,209 | |
Income (loss) before income taxes attributable to the Company | 13,777 | 393 | 27,632 | (9,591) | |
Operating Segments | Ethanol | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 616,527 | 223,745 | 1,059,486 | 536,784 | |
Income (loss) before income taxes attributable to the Company | 23,531 | 868 | 26,457 | (23,108) | |
Operating Segments | Plant Nutrient | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 321,409 | 279,825 | 490,661 | 404,738 | |
Income (loss) before income taxes attributable to the Company | 23,995 | 19,407 | 32,518 | 18,215 | |
Operating Segments | Rail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 37,921 | 35,442 | 78,931 | 72,555 | |
Income (loss) before income taxes attributable to the Company | 3,064 | 2,606 | 7,955 | 3,613 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes attributable to the Company | $ (10,226) | $ (5,035) | $ (19,569) | $ (10,015) |