Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Small Business | false | ||
Title of 12(b) Security | Common stock, $0.00 par value, $0.01 stated value | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Entity File Number | 000-20557 | ||
Local Phone Number | 893-5050 | ||
City Area Code | 419 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Document Type | 10-K | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 1,052.1 | ||
Entity Registrant Name | THE ANDERSONS, INC. | ||
Current Fiscal Year End Date | FY | ||
Entity Central Index Key | 0000821026 | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,540,037 | ||
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 | ||
Trading Symbol | ANDE | ||
Security Exchange Name | NASDAQ | ||
Entity Emerging Growth Company | false | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held on May 5, 2023, are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this Annual Report on Form 10-K. The Proxy Statement will be filed with the Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Cleveland, Ohio |
Auditor Firm ID | 34 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 17,325,384 | $ 12,612,050 | $ 8,064,620 |
Cost of sales and merchandising revenues | 16,641,220 | 12,019,353 | 7,698,423 |
Gross profit | 684,164 | 592,697 | 366,197 |
Operating, administrative and general expenses | 466,556 | 432,073 | 377,695 |
Interest expense, net | 56,849 | 37,292 | 33,784 |
Other income, net | 33,823 | 37,438 | 18,201 |
Income (loss) before income taxes from continuing operations | 194,582 | 160,770 | (27,081) |
Income tax provision (benefit) from continuing operations | 39,628 | 29,228 | (10,910) |
Net income (loss) from continuing operations | 154,954 | 131,542 | (16,171) |
Income from discontinued operations, net of income taxes | 12,025 | 4,324 | 1,956 |
Net income (loss) | 166,979 | 135,866 | (14,215) |
Net income (loss) attributable to the noncontrolling interest | 35,899 | 31,880 | (21,925) |
Net income attributable to The Andersons, Inc. | $ 131,080 | $ 103,986 | $ 7,710 |
Average number of shares outstanding – basic | 33,731 | 33,279 | 32,924 |
Average number of shares outstanding – diluted | 34,422 | 33,855 | 33,189 |
Basic earnings: | |||
Continuing operations (in dollars per share) | $ 3.53 | $ 2.99 | $ 0.17 |
Discontinued operations (in dollars per share) | 0.36 | 0.13 | 0.06 |
Basic earnings (in dollars per share) | 3.89 | 3.12 | 0.23 |
Diluted earnings: | |||
Continuing operations (in dollars per share) | 3.46 | 2.94 | 0.17 |
Discontinued operations (in dollars per share) | 0.35 | 0.13 | 0.06 |
Diluted earnings (in dollars per share) | $ 3.81 | $ 3.07 | $ 0.23 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 166,979 | $ 135,866 | $ (14,215) |
Other comprehensive income (loss), net of tax: | |||
Change in unrecognized actuarial gain and prior service cost | 4,243 | 607 | (856) |
Foreign currency translation adjustments | (13,834) | (108) | 4,674 |
Cash flow hedge activity | 28,881 | 12,771 | (8,663) |
Other comprehensive income (loss) | 19,290 | 13,270 | (4,845) |
Comprehensive income (loss) | 186,269 | 149,136 | (19,060) |
Comprehensive income (loss) attributable to the noncontrolling interests | 35,899 | 31,880 | (21,925) |
Comprehensive income attributable to The Andersons, Inc. | $ 150,370 | $ 117,256 | $ 2,865 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 115,269 | $ 216,444 |
Accounts receivable, less allowance for doubtful accounts of $26,392 in 2022; $6,911 in 2021 | 1,248,878 | 835,180 |
Inventories | 1,731,725 | 1,814,538 |
Commodity derivative assets – current | 295,588 | 410,813 |
Current assets held-for-sale (Note 16) | 2,871 | 20,885 |
Other current assets | 71,622 | 74,468 |
Total current assets | 3,465,953 | 3,372,328 |
Other assets: | ||
Goodwill | 129,342 | 129,342 |
Other intangible assets, net | 100,907 | 117,137 |
Right of use assets, net | 61,890 | 52,146 |
Other assets held-for-sale (Note 16) | 0 | 43,169 |
Other assets | 87,175 | 69,068 |
Total other assets | 379,314 | 410,862 |
Property, plant and equipment, net | 762,729 | 786,029 |
Total assets | 4,607,996 | 4,569,219 |
Current liabilities: | ||
Short-term debt | 272,575 | 501,792 |
Trade and other payables | 1,423,633 | 1,199,324 |
Customer prepayments and deferred revenue | 370,524 | 358,119 |
Commodity derivative liabilities – current | 98,519 | 128,911 |
Current maturities of long-term debt | 110,155 | 32,256 |
Current liabilities held-for-sale (Note 16) | 0 | 13,379 |
Accrued expenses and other current liabilities | 245,916 | 230,148 |
Total current liabilities | 2,521,322 | 2,463,929 |
Non-current operating leases | 37,147 | 31,322 |
Long-term debt, less current maturities | 492,518 | 600,487 |
Deferred income taxes | 64,080 | 71,127 |
Other long-term liabilities held-for-sale (Note 16) | 0 | 16,119 |
Other long-term liabilities | 63,160 | 78,531 |
Total liabilities | 3,178,227 | 3,261,515 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common shares, without par value (63,000 shares authorized; 34,064 shares issued in 2022; 33,870 shares issued in 2021) | 142 | 140 |
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 |
Additional paid-in-capital | 385,248 | 368,595 |
Treasury shares, at cost (446 in 2022; 11 in 2021) | (15,043) | (263) |
Accumulated other comprehensive income | 20,484 | 1,194 |
Retained earnings | 807,770 | 702,759 |
Total shareholders’ equity of The Andersons, Inc. | 1,198,601 | 1,072,425 |
Noncontrolling interests | 231,168 | 235,279 |
Total equity | 1,429,769 | 1,307,704 |
Total liabilities and equity | $ 4,607,996 | $ 4,569,219 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 26,392 | $ 6,911 |
Common shares, shares authorized (shares) | 63,000,000 | 63,000,000 |
Common shares, shares issued (shares) | 34,064,000 | 33,870,000 |
Preferred shares, shares authorized (shares) | 1,000,000 | 1,000,000 |
Preferred shares, shares issued (shares) | 0 | 0 |
Treasury shares, at cost (shares) | 446,000 | 11,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Income (loss) before income taxes from continuing operations | $ 154,954 | $ 131,542 | $ (16,171) |
Income from discontinued operations, net of income taxes | 12,025 | 4,324 | 1,956 |
Net income (loss) | 166,979 | 135,866 | (14,215) |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 134,742 | 178,934 | 188,638 |
Bad debt expense, net | 6,001 | 237 | 7,042 |
Equity in losses (earnings) of affiliates, net of dividends | 5,671 | (4,842) | (638) |
Gain on sales of assets, net | (7,148) | (6,184) | (686) |
Stock-based compensation expense | 11,192 | 11,038 | 10,183 |
Deferred federal income tax | (20,009) | (104,618) | 26,386 |
Gain on sale of business from continuing operations | 0 | (14,619) | 0 |
(Gain) loss on sale of business from discontinued operations | (27,091) | 1,491 | 0 |
Asset impairment | 11,818 | 8,947 | 0 |
Damaged inventory | 17,328 | 0 | 0 |
Other | 15,550 | 10,545 | 21,748 |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable | (391,403) | (184,002) | (128,502) |
Inventories | 56,859 | (528,073) | (139,499) |
Commodity derivatives | 65,399 | (107,188) | (115,170) |
Other current and non-current assets | 10,936 | (116,403) | (53,208) |
Payables and other current and non-current liabilities | 230,293 | 667,821 | 123,489 |
Net cash provided by (used in) operating activities | 287,117 | (51,050) | (74,432) |
Investing Activities | |||
Acquisition of businesses, net of cash acquired | (20,245) | (11,425) | 0 |
Purchases of property, plant and equipment and capitalized software | (108,284) | (75,766) | (77,147) |
Proceeds from sale of assets | 5,307 | 4,508 | 11,112 |
Purchase of investments | (2,105) | (6,243) | (3,059) |
Proceeds from sale of business from continuing operations | 5,171 | 18,130 | 0 |
Proceeds from sale of business from discontinued operations | 56,302 | 543,102 | 0 |
Purchases of Rail assets | (31,458) | (6,039) | (27,739) |
Proceeds from sale of Rail assets | 36,706 | 19,150 | 10,077 |
Other | 5,704 | 1,831 | 0 |
Net cash (used in) provided by investing activities | (52,902) | 487,248 | (86,756) |
Financing Activities | |||
Net (payments) receipts under short-term lines of credit | (21,273) | (105,895) | 254,971 |
Proceeds from issuance of short-term debt | 350,000 | 608,250 | 0 |
Payments of short-term debt | (550,000) | (408,250) | 0 |
Proceeds from issuance of long-term debt | 0 | 203,000 | 471,906 |
Payments of long-term debt | (30,045) | (530,733) | (559,711) |
Contributions from noncontrolling interest owner | 4,900 | 4,655 | 8,576 |
Distributions to noncontrolling interest owner | (44,910) | (25) | (10,322) |
Payments of debt issuance costs | (8,108) | (2,692) | (898) |
Dividends paid | (24,609) | (23,746) | (23,004) |
Proceeds from exercises of stock options | 5,024 | 6,667 | 0 |
Common stock repurchased | (12,721) | 0 | 0 |
Other | (2,988) | 0 | (5,222) |
Net cash (used in) provided by financing activities | (334,730) | (248,769) | 136,296 |
Effect of exchange rates on cash and cash equivalents | (660) | (108) | (880) |
(Decrease) increase in Cash and cash equivalents | (101,175) | 187,321 | (25,772) |
Cash and cash equivalents at beginning of year | 216,444 | 29,123 | 54,895 |
Cash and cash equivalents at end of year | $ 115,269 | $ 216,444 | $ 29,123 |
Consolidated Statements of Equi
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 | |||||||
Net income (loss) | (14,215) | 7,710 | (21,925) | ||||
Other comprehensive loss | (10,213) | (10,213) | |||||
Amounts reclassified from Accumulated other comprehensive income (loss) | 5,368 | 5,368 | |||||
Contributions from noncontrolling interests | 8,576 | 8,576 | |||||
Distributions to noncontrolling interests | (10,322) | (10,322) | |||||
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 | 8,939 | 1 | 3,814 | 5,968 | (844) | ||
Dividends declared | (23,064) | (23,064) | |||||
Restricted share award dividend equivalents | 0 | 408 | (408) | ||||
Ending Balance at Dec. 31, 2020 | 1,160,660 | 138 | 348,714 | (966) | (12,076) | 626,081 | 198,769 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 135,866 | 103,986 | 31,880 | ||||
Other comprehensive loss | 7,312 | 7,312 | |||||
Amounts reclassified from Accumulated other comprehensive income (loss) | 5,958 | 5,958 | |||||
Contributions from noncontrolling interests | 4,655 | 4,655 | |||||
Distributions to noncontrolling interests | (25) | (25) | |||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 16,773 | 2 | 19,881 | 368 | (3,478) | ||
Dividends declared | (23,495) | (23,495) | |||||
Restricted share award dividend equivalents | 0 | 335 | (335) | ||||
Ending Balance at Dec. 31, 2021 | 1,307,704 | 140 | 368,595 | (263) | 1,194 | 702,759 | 235,279 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 166,979 | 131,080 | 35,899 | ||||
Other comprehensive loss | 19,212 | 19,212 | |||||
Amounts reclassified from Accumulated other comprehensive income (loss) | 78 | 78 | |||||
Contributions from noncontrolling interests | 4,900 | 4,900 | |||||
Distributions to noncontrolling interests | (44,910) | (44,910) | |||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 14,204 | 2 | 16,598 | (2,396) | |||
Purchase of treasury shares (384 shares) | (12,721) | (12,721) | |||||
Dividends declared | (24,441) | (24,441) | |||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (1,236) | 55 | 337 | (1,628) | |||
Ending Balance at Dec. 31, 2022 | $ 1,429,769 | $ 142 | $ 385,248 | $ (15,043) | $ 20,484 | $ 807,770 | $ 231,168 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Stock awards, stock option exercises and other shares issued to employees and directors, tax | $ 0 | $ 0 | $ 0 |
Number Of Common Shares Issued For Cash | 51 | 22 | 150 |
Purchase of treasury shares (in shares) | 384 | ||
Dividends declared, per common share (in dollars per share) | $ 0.725 | $ 0.705 | $ 0.70 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation These Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated entities in which the Company has significant influence, but not control, are accounted for using the equity method of accounting. During the third quarter of 2021, substantially all of the assets and liabilities of the Rail business were classified as held-for-sale in the accompanying Condensed Consolidated Balance Sheets. As discussed further in Note 16, the Company executed a definitive agreement to sell the Rail Leasing business. In conjunction with the sale of the Rail Leasing business, the Company announced its intent to divest the remainder of the Rail business which it successfully sold in the third quarter of 2022. These transactions effectively constitute the entirety of what has historically been included in the Rail reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying Consolidated Statements of Operations for all periods presented. Throughout this Annual Report on Form 10-K, with the exception of the Consolidated Statements of Cash Flows and unless otherwise indicated, amounts and activity are presented on a continuing operations basis. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications. The reclassification relates to the Consolidated Statement of Operations presentation of Asset impairment expense and Equity earnings (losses) in affiliates, net. Asset impairment expense has been reclassified to Operating, administrative and general expenses and Equity in earnings (losses) of affiliates, net has been reclassified to Other income, net. At the inception of joint venture transactions, we identify entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and determine which business enterprise is the primary beneficiary of its operations. A VIE is broadly defined as an entity where either (i) the equity investors as a group, if any, do not have a controlling financial interest, or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates investments in VIEs when the Company is determined to be the primary beneficiary. This evaluation is based on an enterprise’s ability to direct and influence the activities of a VIE that most significantly impact that entity’s economic performance. The Company evaluates its interests in VIEs on an ongoing basis and consolidates any VIE in which it has a controlling financial interest and is deemed to be the primary beneficiary. A controlling financial interest has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact its economic performance; and (ii) the obligation to absorb losses of the VIE that could potentially be significant to it or the right to receive benefits from the VIE that could be significant to the VIE. The Company has two VIE's in The Andersons Marathon Holdings LLC ("TAMH") and ELEMENT, LLC. ("ELEMENT"). The Company evaluated its interests in both TAMH and ELEMENT and determined that these entities are a VIE and that the Company is the primary beneficiary of TAMH and ELEMENT. This is due to the fact that the Company has both the power to direct the activities that most significantly impact these entities and the obligation to absorb losses or the right to receive benefits from TAMH and ELEMENT. Therefore, the Company consolidated both TAMH and ELEMENT in its Consolidated Financial Statements. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash and short-term investments with an initial maturity of three months or less. The carrying values of these assets approximate their fair values. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and may bear interest if past due. The allowance for doubtful accounts is the best estimate of the current expected credit losses in existing accounts receivable and is reviewed quarterly. The allowance is based both on specific identification of potentially uncollectible accounts and the application of a consistent policy, based on historical experience, to estimate the allowance necessary for the remaining accounts receivable. For those customers that are thought to be at higher risk, the Company makes assumptions as to collectability based on past history and facts about the current situation. Account balances are charged off against the allowance when it becomes more certain that the receivable will not be recovered. The Company manages its exposure to counterparty credit risk through credit analysis and approvals, credit limits and monitoring procedures. Commodity Derivatives and Inventories The Company's operating results can be affected by changes to commodity prices. The Trade and Renewables businesses have established “unhedged” position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract to mitigate the price risk associated with those contracts and inventory). To reduce the exposure to market price risk on commodities owned and forward commodity and ethanol purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. The forward purchase and sale contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year. The Company accounts for its commodity derivatives at 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, fair value is adjusted for differences in local markets and non-performance risk. While the Company considers certain of its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges. 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 in the Consolidated Statements of Operations. Additional information about the fair value of the Company's commodity derivatives is presented in Notes 5 and 10 to the Consolidated Financial Statements. Readily Marketable Inventories ("RMI"), which are grain and other agricultural commodities, may be acquired under provisionally priced contracts, are stated at their net realizable value, which approximates estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. At times the Company holds a portion of RMI within its facilities for others. Our storage facilities are licensed warehouses and must be bonded and insured for its capacity under license and is obligated to return to the title holder of the RMI an equal quantity and quality. The Company does not have title to the inventory 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 with regard to any deficiencies and does not anticipate material losses in the future. All other inventories are stated at the lower of cost or net realizable value. Cost is determined by the average cost method. Additional information about inventories is presented in Note 2 to the Consolidated Financial Statements. Derivatives - Master Netting Arrangements 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 futures, options 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 futures, 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 Company nets, by counterparty, its futures and over-the-counter positions against the cash collateral provided or received. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Consolidated Balance Sheets. Additional information about the Company's master netting arrangements is presented in Note 5 to the Consolidated Financial Statements. Derivatives - Interest Rate and Foreign Currency Contracts The Company periodically enters into interest rate contracts to manage interest rate risk on borrowing or financing activities. The Company has long-term interest rate swaps recorded in other assets or other long-term liabilities that expire from 2025 to 2030 and have been designated as cash flow hedges; accordingly, changes in the fair value of the instruments are recognized in Other comprehensive income (loss) in the Consolidated Balance Sheets. While the Company considers all of its derivative positions to be effective economic hedges of specified risks, these interest rate contracts for which hedge accounting is not applied are recorded on the Consolidated Balance Sheets in either other current assets or liabilities (if short-term in nature) or in other assets or other long-term liabilities (if non-current in nature), and changes in fair value are recognized in current earnings as interest expense. Upon termination of a derivative instrument or a change in the hedged item, any remaining fair value recorded in the Consolidated Balance Sheets is recorded in Interest expense, net consistent with the cash flows associated with the underlying hedged item. Information regarding the nature and terms of the Company's interest rate derivatives is presented in Note 5 to the Consolidated Financial Statements. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Repairs and maintenance costs are charged to expense as incurred, while betterments that extend useful lives are capitalized. Depreciation is provided over the estimated useful lives of the individual assets, by the straight-line method. Estimated useful lives are generally as follows: land improvements - 16 years; leasehold improvements - the shorter of the lease term or the estimated useful life of the improvement, ranging from 3 to 20 years; buildings and storage facilities - 10 to 40 years; and machinery and equipment - 3 to 20 years. The cost of assets retired or otherwise disposed of, and the accumulated depreciation thereon are removed from the accounts, with any gain or loss realized upon sale recorded in Other income, net within the Consolidated Statements of Operations. Additional information regarding the Company's property, plant and equipment is presented in Note 3 to the Consolidated Financial Statements. Deferred Debt Issue Costs Costs associated with the issuance of term debt are deferred and recorded net with debt. Costs associated with revolving credit agreements are recorded as a deferred asset. These costs are amortized, as a component of interest expense, over the earlier of the stated term of the debt or the period from the issue date through the first early payoff date without penalty, or the expected payoff date if the loan does not contain a prepayment penalty. Deferred costs associated with the borrowing arrangement with a syndication of banks are amortized over the term of the agreement. Goodwill and Intangible Assets Goodwill is subject to an annual impairment test or more often when events or circumstances indicate that the carrying amount of goodwill may be impaired. A goodwill impairment loss is recognized to the extent the carrying amount of goodwill exceeds the business enterprise value. Additional information about the Company's goodwill and other intangible assets is presented in Note 17 to the Consolidated Financial Statements. Acquired intangible assets are recorded at cost, less accumulated amortization, if not indefinite lived. In addition, we capitalize the salaries and payroll-related costs of employees and consultants who devote time to the development of internal-use software projects. If a project constitutes an enhancement to previously developed software, we assess whether the enhancement is significant and creates additional functionality to the software, thus qualifying the work incurred for capitalization. Once a project is complete, we estimate the useful life of the internal-use software. Changes in our estimates related to internal-use software would increase or decrease operating expenses or amortization recorded during the period. Amortization of intangible assets is provided over their estimated useful lives (generally 1 to 10 years) using the straight-line method. Impairment of Long-lived Assets and Equity Method Investments Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the assets to the undiscounted future net cash flows the Company expects to generate with the assets. If such assets are considered to be impaired, the Company recognizes an impairment loss for the amount by which the carrying amount of the assets exceeds the fair value of the assets. In 2022, the Company's 51% owned ELEMENT plant faced a combination of high corn basis, increased natural gas prices and a rapid decline in Low Carbon Fuel Standards credit values, that negatively impacted operations. The adverse operating conditions led to a failure of a debt covenant during the year, as well as, a forecasted failure of another covenant within the next 12 months. Accordingly, it was deemed that a triggering event occurred as of September 30, 2022 related to the ELEMENT ethanol plant. Management performed a recoverability test of the ELEMENT plant’s long-lived assets as this is the lowest level of identifiable cash flows. The key assumptions used in the recoverability test included input costs (corn, natural gas, etc.), production days, and co-product premiums. Each of these inputs were given probability weightings based on management's assessment regarding the likelihood of the respective forecasts. Using future forecasted cash flows, the ELEMENT asset group passed its recoverability test on an undiscounted cash flow basis by 15% over the carrying value of its assets. Assumptions used in the model did not change materially during the fourth quarter. However, if there are changes to key assumptions in the analysis it is reasonably possible management's estimate that it will recover the carrying amount of these assets could change, even in the near term. See further discussion on ELEMENT developments subsequent to December 31, 2022, in Note 4 of the Consolidated Financial Statements. The Company reviews its equity method investments to determine whether there has been a decline in the estimated fair value of the investment that is below the Company's carrying value which is other-than-temporary. Other than consideration of past and current performance, these reviews take into account forecasted earnings which are based on management's estimates of future performance. Provisionally Priced Commodity Contracts Accounts payable includes certain amounts related to commodity purchases for which, even though the Company has taken ownership and possession of the commodity the final purchase price has not been fully established. If the futures and basis components are unpriced, it is referred to as a delayed price payable. If the futures component has not been established, but the basis has been set, it is referred to as a basis payable. The unpriced portion of these payables will be exposed to changes in the fair value of the underlying commodity based on quoted prices on commodity exchanges (or basis levels). Those payables that are fully priced are not considered derivative instruments. The Company also enters into contracts with customers for risk management purposes that allow the customers to effectively unprice the futures component of their inventory for a period of time, subjecting the commodities to market fluctuations. The Company records an asset or liability for the market value changes of the commodities over the life of the contracts based on quoted exchange prices. See Note 10 for additional discussion on these instruments. Stock-Based Compensation Stock-based compensation expense for all stock-based compensation awards is based on the estimated grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, adjusted for revisions to performance expectations. Additional information about the Company's stock compensation plans is presented in Note 15 to the Consolidated Financial Statements. Per Share Data We present both basic and diluted earnings per share amounts from continuing operations and discontinued operations attributable to the Company's shareholders. Basic earnings per common share are determined by dividing net earnings attributable to controlling interests by the weighted-average number of common shares outstanding. In computing diluted earnings per share, average number of common shares outstanding is increased by unvested stock awards and common stock options outstanding with exercise prices lower than the average market price of common shares using the treasury share method. Revenue Recognition The Company’s revenue consists of sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815), and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). Revenue from commodity contracts (ASC 815) Revenue from commodity contracts primarily relates to forward sales of commodities in the Company’s Trade and Renewables segments, such as corn, soybeans, wheat, oats, ethanol, and corn oil, which are accounted for as derivatives at fair value under ASC 815. These forward sales meet the definition of a derivative under ASC 815 as they have an underlying (e.g. the price of corn), a notional amount (e.g. metric tons), no initial net investment and can be net settled since the commodity is readily convertible to cash. The Company does not apply the normal purchase and normal sale exception available under ASC 815 to these contracts. Revenue from commodity contracts is recognized in Sales and merchandising revenues for the contractually stated amount when the contracts are settled. Settlement of the commodity contracts generally occurs upon shipment or delivery of the product, when title and risks and rewards of ownership transfers to the customer. Prior to settlement, these forward sales contracts are recognized at fair value with the unrealized gains or losses recorded within Cost of sales and merchandising revenues. Additional information about the fair value of the Company's commodity derivatives is presented in Notes 5 and 10 to the Consolidated Financial Statements. There are certain transactions that allow for pricing to occur after title of the goods has passed to the customer. In these cases, the Company continues to report the goods in inventory until it recognizes the sales revenue once the price has been determined. Direct ship commodity sales (where the Company never takes physical possession of the commodity) are recognized based on the terms of the contract. Certain of the Company's operations provide for customer billings, deposits or prepayments for product that is stored at the Company's facilities. The sales and gross profit related to these transactions are not recognized until the product is shipped in accordance with the previously stated revenue recognition policy and these amounts are classified in the Consolidated Balance Sheets as a current liability titled “Customer prepayments and deferred revenue”. Revenue from contracts with customers (ASC 606) Information regarding our revenue from contracts with customers accounted for under ASC 606 is presented in Note 7 to the Consolidated Financial Statements. The Company recognizes revenue from these contracts at a point in time when it satisfies a performance obligation by transferring control of a product to a customer, generally when legal title and risks and rewards of ownership transfer to the customer. Income Taxes Income tax expense for each period includes current tax expense plus deferred expense, which is related to the change in deferred income tax assets and liabilities. Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of assets and liabilities and are measured using enacted tax rates and laws governing periods in which the differences are expected to reverse. The Company evaluates the realizability of deferred tax assets and provides a valuation allowance for amounts that management does not believe are more likely than not to be recoverable, as applicable. The annual effective tax rate is determined by Income tax provision (benefit) from continuing operations as a percentage of Income (loss) before income taxes from continuing operations within the Consolidated Statements of Operations. Differences in the effective tax rate and the statutory tax rate may be due to permanent items, tax credits, foreign tax rates and state tax rates in jurisdictions in which the Company operates, or changes in valuation allowances. The Company records reserves for uncertain tax positions when, despite the belief that tax return positions are fully supportable, it is anticipated that certain tax return positions are likely to be challenged and that the Company may not prevail. These reserves are adjusted for changing facts and circumstances, such as the progress of a tax audit or the lapse of statutes of limitations. Additional information about the Company’s income taxes is presented in Note 8 to the Consolidated Financial Statements. Employee Benefit Plans The Company provides full-time employees hired before January 1, 2003, with postretirement health care benefits. In order to measure the expense and funded status of these employee benefit plans, management makes several estimates and assumptions, including employee turnover rates, anticipated mortality rates and anticipated future healthcare cost trends. These estimates and assumptions are based on the Company's historical experience combined with management's knowledge and understanding of current facts and circumstances. The selection of the discount rate is based on an index given projected plan payouts. Additional information about the Company's employee benefit plans is presented in Note 6 to the Consolidated Financial Statements. Recently Adopted Accounting Pronouncements Reference Rate Reform (Topic 848) In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to U.S. GAAP on contract modifications, hedging relationships, and other transactions affected by reference rate reform to ease entities' financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made, hedging relationships entered into, and other transactions affected by reference rate reform, evaluated on or before December 31, 2022, beginning during the reporting period in which the guidance has been elected. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extended the date to December 31, 2024. As of December 31, 2022, the Company does not have any receivables, hedging relationships, lease agreements, or debt agreements that reference LIBOR or another reference rate expected to be discontinued. Therefore, we will not be electing the optional practical expedients associated with this ASU. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major classes of inventories are presented below. Readily Marketable Inventories 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. The components of inventories are as follows: December 31, (in thousands) 2022 2021 Grain and other agricultural products (a) $ 1,326,531 $ 1,427,708 Propane and frac sand (a) 21,084 23,780 Ethanol and co-products (a) 156,341 184,354 Plant nutrients and cob products 227,769 178,696 Total $ 1,731,725 $ 1,814,538 (a) Includes RMI of $1,308.8 million and $1,410.9 million at December 31, 2022 and December 31, 2021, respectively. The Company incurred inventory damage charges of $17.3 million in the year ended December 31, 2022. In December 2022, approximately $16.2 million of that charge was related to a fire at a Michigan grain asset where substantially all of the insured inventory held at that location was severely damaged or destroyed. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of property, plant and equipment are as follows: December 31, (in thousands) 2022 2021 Land $ 38,689 $ 39,162 Land improvements and leasehold improvements 92,084 91,122 Buildings and storage facilities 364,721 368,577 Machinery and equipment 980,159 936,476 Construction in progress 41,429 20,676 1,517,082 1,456,013 Less: accumulated depreciation (754,353) (669,984) Property, plant and equipment, net $ 762,729 $ 786,029 Depreciation expense on property, plant and equipment amounted to $110.6 million, $126.9 million and $122.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. In December 2022, the Company recorded charges of $9.0 million for impairments of property, plant and equipment in the Trade segment related to a Nebraska grain asset. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s short-term and long-term debt at December 31, 2022 and 2021 consisted of the following: December 31, (in thousands) 2022 2021 Short-term debt – non-recourse $ 81,475 $ 65,485 Short-term debt – recourse 191,100 436,307 Total short-term debt 272,575 501,792 Current maturities of long-term debt – non-recourse 63,815 7,601 Current maturities of long-term debt – recourse 46,340 24,655 Total current maturities of long-term debt 110,155 32,256 Long-term debt, less: current maturities – non-recourse 414 64,972 Long-term debt, less: current maturities – recourse 492,104 535,515 Total long-term debt, less: current maturities $ 492,518 $ 600,487 On March 2, 2022, the Company completed an incremental term loan amendment to its credit agreement dated January 11, 2019. The amendment provided for a short-term note of $250.0 million in which the entire stated principal was due on May 31, 2022 (subsequently extended to August 31, 2022). On March 9, 2022, the Company completed an additional term loan amendment that expanded the short-term note capacity from $250.0 million to $450.0 million. On May 27, 2022, the Company completed an additional amendment to convert the $350.0 million then outstanding balance from the $450.0 million incremental term loan amendment to a revolving credit agreement with a capacity of up to $450.0 million. The entire amount outstanding was due on August 31, 2022, and was fully repaid during the third quarter of 2022. On March 28, 2022, the Company continued to amend its credit agreement dated January 11, 2019. The amendment increased borrowing capacity on the revolver from $900.0 million to $1,550.0 million and extended the maturity dates of the $140.6 million and $209.4 million long-term notes originally due in 2026 to March 26, 2027, and March 28, 2029, respectively. The amendment also transitions the reference rate in the credit agreement from LIBOR to "SOFR" (Standard Overnight Financing Rate). The revolver and term notes will bear interest at variable rates, which are based on SOFR plus an applicable spread. During the first quarter of 2022, the Company repaid the remaining $200.0 million balance that was outstanding as of December 31, 2021, on a short-term note that was classified as recourse debt to the Company. The capacity of the Company's short-term lines of credit at December 31, 2022 was $1,990.8 million of which the Company had a total of $1,659.6 million available for borrowing. The Company's borrowing capacity is reduced by a combination of outstanding borrowings and letters of credit. The weighted-average interest rate on short-term borrowings outstanding at December 31, 2022 and 2021, were 5.67% and 1.49%, respectively. As part of the Company's ongoing covenant monitoring process, the Company determined that as of December 31, 2022, ELEMENT is virtually certain to be out of compliance with an owner's equity ratio covenant within the next 12 months. As such, the $63.3 million of non-recourse debt associated with ELEMENT has been classified in Current maturities of long-term debt as of December 31, 2022. Additionally, ELEMENT did not make a required debt payment in February 2023 and subsequently received a default notice from the lender on February 17, 2023. This event of default could result in the lender accelerating the maturity of ELEMENT’s indebtedness or preventing access to additional funds under the line of credit agreement, or requiring prepayment of outstanding indebtedness under the loan agreement or the line of credit agreement. Subsequent to year end, the Company began to consider various strategies related to the investment. The Company was in compliance with all financial covenants at and during the years ended December 31, 2022 and 2021, other than with respect to the ELEMENT non-recourse debt as discussed above. Total interest paid was $56.7 million, $38.2 million and $33.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, the estimated fair value of long-term debt, including the current portion, was $595.7 million and $650.7 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 by the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities. Long-Term Debt Recourse Long-Term Debt December 31, (in thousands, except percentages) 2022 2021 Note payable, variable rate (6.08% at December 31, 2022), payable in increasing amounts plus interest, due 2029 $ 201,524 $ 212,500 Note payable, variable rate (5.96% at December 31, 2022), payable in increasing amounts plus interest, due 2027 135,352 142,500 Note payable, 4.50%, payable at maturity, due 2034 (a) 95,500 99,090 Note payable, 4.85%, payable at maturity, due 2026 25,000 25,000 Note payable, 4.55%, payable at maturity, due 2023 24,000 24,000 Industrial revenue bond, variable rate (4.81% at December 31, 2022), payable at maturity, due 2036 21,000 21,000 Note payable, 4.50%, payable at maturity, due 2030 16,000 16,000 Note payable, 5.00%, payable at maturity, due 2040 14,000 14,000 Finance lease obligations, due serially to 2030 (a) 9,071 10,135 541,447 564,225 Less: current maturities 46,340 24,655 Less: unamortized prepaid debt issuance costs 3,003 4,055 $ 492,104 $ 535,515 (a) Debt is collateralized by first mortgages on certain facilities and related equipment or other assets with a book value of $56.6 million. Th e aggregate annual maturities of recourse , long-term debt are as follows: 2023 -- $46.3 million; 2024 -- $22.6 million; 2025 -- $22.8 million; 2026 -- $48.0 million; 2027 -- $123.4 million; and $278.3 million thereafter. Non-Recourse Long-Term Debt The Company's non-recourse long-term debt consists of the following: December 31, (in thousands) 2022 2021 Note payable, variable rate (7.59% at December 31, 2022), payable at maturity, due 2023 (a) $ 63,335 $ 70,000 Finance lease obligations, due serially to 2024 894 2,745 64,229 72,745 Less: current maturities 63,815 7,601 Less: unamortized prepaid debt issuance costs — 172 $ 414 $ 64,972 (a) Debt is collateralized by a first mortgages on the ELEMENT facility and related equipment or other assets with a book value of $128.9 million. Th e aggregate annual maturities of non-recourse long-term debt a re $63.8 million and $0.4 million for the years ended December 31, 2023 and 2024, respectively. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Commodity Contracts The Company’s operating results are affected by changes to commodity prices. The Trade and Renewables 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 current commodity derivative assets (or liabilities), as appropriate, in the Consolidated Balance Sheets. The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis. If current, the net position is included within Commodity derivative assets (or liabilities) - current, and if noncurrent, the net position is included in Other assets or Other long-term liabilities in the Consolidated Balance Sheets. The following table presents a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted or received as collateral as of December 31, 2022 and 2021: (in thousands) December 31, 2022 December 31, 2021 Cash collateral paid $ 64,530 $ 165,250 Fair value of derivatives (10,014) (36,843) Net derivative asset position $ 54,516 $ 128,407 The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities: December 31, 2022 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 325,762 $ 1,796 $ 18,426 $ 686 $ 346,670 Commodity derivative liabilities (94,704) (149) (116,945) (1,484) (213,282) Cash collateral paid 64,530 — — — 64,530 Balance sheet line item totals $ 295,588 $ 1,647 $ (98,519) $ (798) $ 197,918 December 31, 2021 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 339,321 $ 4,677 $ 23,762 $ 1,209 $ 368,969 Commodity derivative liabilities (93,758) (105) (152,673) (2,578) (249,114) Cash collateral paid 165,250 — — — 165,250 Balance sheet line item totals $ 410,813 $ 4,572 $ (128,911) $ (1,369) $ 285,105 The net gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Consolidated Statements of Operations and the line items in which they are located for the years ended December 31, 2022, 2021 and 2020, are as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Gains (losses) on commodity derivatives included in $ 13,533 $ 151,058 $ (36,563) The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) as of December 31, 2022 and 2021: December 31, 2022 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 567,405 — — Soybeans 56,608 — — Wheat 102,716 — — Oats 24,710 — — Ethanol — 178,935 — Soybean meal — — 570 Dried distillers grain — — 449 Other 10,054 44,547 2,029 Subtotal 761,493 223,482 3,048 Exchange traded: Corn 170,280 — — Soybeans 46,380 — — Wheat 111,567 — — Oats 365 — — Ethanol — 94,206 — Propane — 47,208 — Other — 588 581 Subtotal 328,592 142,002 581 Total 1,090,085 365,484 3,629 December 31, 2021 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 685,681 — — Soybeans 77,592 — — Wheat 109,547 — — Oats 31,627 — — Ethanol — 192,447 — Soybean meal — — 544 Dried distillers grain — — 507 Other 57,268 16,092 1,854 Subtotal 961,715 208,539 2,905 Exchange traded: Corn 226,215 — — Soybeans 64,730 — — Wheat 65,020 — — Oats 1,300 — — Ethanol — 100,884 — Propane — 31,542 — Other 75 798 353 Subtotal 357,340 133,224 353 Total 1,319,055 341,763 3,258 Interest Rate and Other Derivatives The Company’s objectives in using interest rate derivatives are to add stability to interest expense on long-term debt 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, net in the same periods during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive income (loss) related to derivatives will be reclassified to Interest expense, net as interest payments are made on the Company’s variable-rate long-term debt. The Company also has foreign currency derivatives which are considered effective economic hedges of specified economic risks. At December 31, 2022 and 2021, the Company had recorded the following amounts for the fair value of the Company's interest rate and other derivatives: December 31, (in thousands) 2022 2021 Derivatives not designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ — $ (174) Foreign currency contracts included in Other current (liabilities) assets (3,124) (1,069) Derivatives designated as hedging instruments Interest rate contracts included in Other current assets 8,759 — Interest rate contracts included in Other assets 22,641 4,574 Interest rate contracts included in Accrued expenses and other current liabilities — (5,206) Interest rate contracts included in Other long-term liabilities — (6,555) The recording of derivatives gains and losses and the financial statement line item in which they are located are as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest expense, net $ 123 $ (844) $ (11) Derivatives designated as hedging instruments Interest rate derivative gains (losses) included in Other comprehensive income (loss) 38,564 16,960 (11,497) Interest rate derivative gains (losses) included in Interest expense, net (989) (6,733) (7,982) The following table presents the open interest rate contracts at December 31, 2022: Interest Rate Hedging Instrument Year Entered Year of Maturity Initial Notional Amount Hedged Item Interest Rate Long-term Swap 2019 2025 $ 100.0 Interest rate component of debt - not accounted for as a hedge 2.3% Swap 2019 2025 50.0 Interest rate component of debt - accounted for as a hedge 2.4% Swap 2019 2025 50.0 Interest rate component of debt - accounted for as a hedge 2.4% 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% Swap 2022 2025 20.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2022 2029 100.0 Interest rate component of debt - accounted for as a hedge 2.0% Swap 2022 2029 50.0 Interest rate component of debt - accounted for as a hedge 2.4% |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company provides certain full-time employees with pension benefits under defined contribution plans. The Company's expense for its defined contribution plans amounted to $17.2 million, $14.6 million and $8.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. The expense for the Company's defined contribution plans increased in both 2021 and 2022 as the employer discretionary contribution increased consistent with the improved operating results. The Company also has a postretirement health care benefit plan covering substantially all of its full-time employees hired prior to January 1, 2003. These plans are generally contributory and include a cap on the Company's share of the related costs. The measurement date for this plan is December 31. Obligation and Funded Status Following are the details of the obligation and funded status of the postretirement health care benefit plan: (in thousands) Change in benefit obligation 2022 2021 Benefit obligation at beginning of year $ 23,942 $ 25,324 Service cost 248 302 Interest cost 586 546 Actuarial (gains) losses (6,180) (1,252) Participant contributions 314 271 Benefits paid (1,477) (1,249) Benefit obligation at end of year $ 17,433 $ 23,942 (in thousands) Change in plan assets 2022 2021 Fair value of plan assets at beginning of year $ — $ — Company contributions 1,163 978 Participant contributions 314 271 Benefits paid (1,477) (1,249) Fair value of plan assets at end of year $ — $ — Under funded status of plans at end of year $ (17,433) $ (23,942) Amounts recognized in the Consolidated Balance Sheets at December 31, 2022 and 2021 consist of: (in thousands) 2022 2021 Accrued expenses and other current liabilities $ 1,276 $ 1,359 Other long-term liabilities 16,157 22,583 Net amount recognized $ 17,433 $ 23,942 Following are the details of the amounts recognized in Accumulated other comprehensive income before taxes at December 31, 2022: (in thousands) Unamortized Actuarial Net Gains Unamortized Prior Service Costs Balance at beginning of year $ (5,498) $ 4,098 Amounts arising during the period (6,180) — Amounts recognized as a component of net periodic benefit cost — 911 Balance at end of year $ (11,678) $ 5,009 The benefits expected to be paid for the postretirement health care benefit plan over the next ten years are as follows: (in thousands) Postretirement Benefits 2023 $ 1,276 2024 1,285 2025 1,299 2026 1,308 2027 1,300 2028-2032 6,371 Following are components of the net periodic benefit cost for each year: December 31, (in thousands) 2022 2021 2020 Service cost $ 248 $ 302 $ 221 Interest cost 586 546 719 Expected return on plan assets (911) (911) (911) Recognized net actuarial loss — 169 79 Net periodic benefit (gain) cost $ (77) $ 106 $ 108 Following are weighted-average assumptions of the postretirement health care benefit plan for each year: 2022 2021 2020 Used to Determine Benefit Obligations at Measurement Date Discount rate 4.9 % 2.6 % 2.2 % Used to Determine Net Periodic Benefit Cost for Years ended December 31 Discount rate 2.6 % 2.2 % 3.0 % Expected long-term return on plan assets — — — Rate of compensation increases — — — Assumed Health Care Cost Trend Rates at Beginning of Year 2022 2021 Health care cost trend rate assumed for next year 3.0 % 3.0 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (a) N/A N/A Year that the rate reaches the ultimate trend rate (a) N/A N/A (a) In 2017, the Company's remaining uncapped participants were converted to a Medicare Exchange Health Reimbursement Arrangement, which put a 2% cap on the Company's share of the related costs. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Many of the Company’s sales and merchandising revenues are generated from contracts that are outside the scope of ASC 606. Specifically, many of the Company's Trade and Renewables sales contracts are derivatives under ASC 815, Derivatives and Hedging . The breakdown of revenues between ASC 606 and ASC 815 is as follows: Year ended December 31, (in thousands) 2022 2021 2020 Revenues under ASC 606 $ 3,036,852 $ 2,211,537 $ 1,479,686 Revenues under ASC 815 14,288,532 10,400,513 6,584,934 Total revenues $ 17,325,384 $ 12,612,050 $ 8,064,620 Disaggregation of revenue The following tables disaggregate revenues under ASC 606 by major product line: Year ended December 31, 2022 (in thousands) Trade Renewables Plant Nutrient Total Specialty nutrients $ — $ — $ 355,636 $ 355,636 Primary nutrients — — 625,134 625,134 Products and co-products 396,613 1,219,972 — 1,616,585 Propane 264,072 — — 264,072 Other 50,966 5,921 118,538 175,425 Total $ 711,651 $ 1,225,893 $ 1,099,308 $ 3,036,852 Year ended December 31, 2021 (in thousands) Trade Renewables Plant Nutrient Total Specialty nutrients $ — $ — $ 270,842 $ 270,842 Primary nutrients — — 500,891 500,891 Products and co-products 313,195 714,120 — 1,027,315 Propane 246,002 — — 246,002 Other 64,557 6,768 95,162 166,487 Total $ 623,754 $ 720,888 $ 866,895 $ 2,211,537 Year ended December 31, 2020 (in thousands) Trade Renewables Plant Nutrient Total Specialty nutrients $ — $ — $ 234,806 $ 234,806 Primary nutrients — — 396,515 396,515 Products and co-products 234,219 408,677 — 642,896 Propane 122,580 — — 122,580 Other 49,193 2,057 31,638 82,888 Total $ 405,992 $ 410,734 $ 662,959 $ 1,479,685 Substantially all of the Company's revenues accounted for under ASC 606 are recorded at a point in time instead of over time for the years ended December 31, 2022, 2021 and 2020, respectively. Specialty and primary nutrients The Company sells several different types of specialty nutrient products, including: low-salt liquid starter fertilizers, micro-nutrients and other specialty lawn products. These products can be sold through the wholesale distribution channels as well as directly to end users at the farm center locations. Similarly, the Company sells several different types of primary nutrient products, including: nitrogen, phosphorus and potassium. These products may be purchased and re-sold as is or sold as finished goods resulting from a blending and manufacturing process. The contracts associated with specialty and primary nutrients generally have a single performance obligation, as the Company has elected the accounting policy to consider shipping and handling costs as fulfillment costs. Revenue is recognized when control of the product has passed to the customer. Payment terms generally range from 0 - 30 days. Products and co-products The Renewables segment sells several co-products through the production of ethanol that remain subject to ASC 606, including E-85, dried distillers grains, syrups and renewable identification numbers (“RINs”). RINs are credits for compliance with the Environmental Protection Agency's Renewable Fuel Standard program and are created by renewable fuel producers. The Trade segment also sells several products that are subject to ASC 606, such as pulses, organics and pet food ingredients. Contracts for these products and co-products generally have a single performance obligation, as the Company has elected the accounting policy to consider shipping and handling costs as fulfillment costs. Revenue is recognized when control of the product has passed to the customer which follows shipping terms on the contract. Payment terms for Renewables generally range from 10 - 15 days. Payment terms for Trade generally range from 30 - 120 days. Propane Propane products are primarily sold to United States customers in the energy industry. Revenue is recognized at a point in time when obligations under the terms of a contract with the customer are satisfied. This occurs with the transfer of control of our products to customers when products are shipped for direct sales to customers or when the product is picked up by a customer at a transload location. Contracts contain one performance obligation which is the delivery to the customer at a point in time. Revenue is measured as the amount of consideration received in exchange for transferring products. The Company recognizes the cost for shipping as an expense in Cost of sales and merchandising revenues when control over the product has transferred to the customer. Payment terms generally range from 0 - 30 days. Contract balances The opening and closing balances of the Company’s contract liabilities are as follows: (in thousands) 2022 2021 Balance at January 1 $ 100,847 $ 45,634 Balance at December 31 55,408 100,847 The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. Contract liabilities relate to the Plant Nutrient business for payments received in advance of fulfilling our performance obligations under our customer contracts. Contract liabilities are built up at year-end and through the first quarter as a result of payments in advance of fulfilling our performance obligations under our customer contracts in preparation for the spring application season. The contract liabilities are then relieved as obligations are met through the year and begin to build in preparation for a new season as year-end approaches. The variance in contract liabilities at December 31, 2022, compared to the prior years was due to tight supplies and a sharp increase of fertilizer prices towards the end of 2021 and customers were more willing to prepay for fertilizer to ensure supply and fix their input costs for the following spring application season. At the end of 2022 and 2020, there was much less volatility in the fertilizer market leading customers to not prepay as significantly as they were willing to do in 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provision (benefit) from continuing operations consists of the following: Year ended December 31, (in thousands) 2022 2021 2020 Current: Federal $ 38,801 $ 23,333 $ (42,718) State and local 13,541 4,934 (748) Foreign 4,741 760 6,731 57,083 29,027 (36,735) Deferred: Federal (13,425) (3,687) 28,665 State and local (6,775) 819 1,180 Foreign 2,745 3,069 (4,020) (17,455) 201 25,825 Total: Federal 25,376 19,646 (14,053) State and local 6,766 5,753 432 Foreign 7,486 3,829 2,711 $ 39,628 $ 29,228 $ (10,910) Income (loss) before income taxes from continuing operations consists of the following: Year ended December 31, (in thousands) 2022 2021 2020 U.S. $ 173,810 $ 143,712 $ (38,319) Foreign 20,772 17,058 11,238 $ 194,582 $ 160,770 $ (27,081) A reconciliation from the statutory U.S. federal tax rate to the effective tax rate follows: Year ended December 31, 2022 2021 2020 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in rate resulting from: State and local income taxes, net of related federal taxes 2.4 2.5 0.5 Federal tax rate differential (0.3) 0.4 (2.1) U.S. tax rate change and other tax law impacts (a) 0.4 0.5 56.2 Effect of noncontrolling interest (3.9) (4.2) (17.0) Derivative instruments and hedging activities (1.3) 0.4 (11.8) U.S. income taxes on foreign earnings (0.1) 0.7 (1.8) Nondeductible compensation 1.2 1.9 (5.5) Unrecognized tax benefits 8.0 2.1 (72.2) Valuation allowance 0.7 0.1 (1.9) Foreign tax credits (2.1) (1.3) (0.5) Research and development and other tax credits (7.0) (5.0) 75.6 Equity method investments 0.8 (0.6) (0.1) Other, net 0.6 (0.3) (0.1) Effective tax rate 20.4 % 18.2 % 40.3 % (a) Reflects the impact of the CARES Act which provided a financial statement benefit of $14.8 million in 2020. Net income taxes of $88.7 million, $51.7 million and $2.4 million were paid in the years ended December 31, 2022, 2021 and 2020, respectively. TAMH and ELEMENT are treated as partnerships for U.S. tax purposes. Partnerships are not taxable entities so the tax consequences of the partnership’s transactions flow through to the partners (i.e., investors) at their proportionate share. As a result, the Consolidated Financial Statements do not reflect such income taxes on income (loss) before taxes attributable to the noncontrolling interest in the partnerships. The Company has elected to treat Global Intangible Low Tax Income (“GILTI”) as a period cost and, therefore, has not recognized deferred taxes for basis differences that may reverse as GILTI tax in future years. For the years ended December 31, 2022 and 2021, the Company has not recognized deferred tax liabilities for temporary differences related to investments in foreign subsidiaries that were deemed permanently reinvested. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because such liability, if any, depends on certain circumstances existing and if/when remittance occurs. A deferred tax liability will be recognized if and when the Company no longer plans to permanently reinvest these undistributed earnings. Significant components of the Company's deferred tax liabilities and assets are as follows: December 31, (in thousands) 2022 2021 Deferred tax liabilities: Property, plant and equipment $ (58,273) $ (66,913) Operating lease right-of-use assets (9,370) — Identifiable intangibles (6,802) (7,022) Investments (34,604) (35,842) Derivative Instruments (7,911) — Other (5,160) (3,859) (122,120) (113,636) Deferred tax assets: Employee benefits 28,859 27,695 Accounts and notes receivable 6,726 2,189 Inventory 10,272 4,533 Federal income tax credits 1,914 2,292 Net operating loss carryforwards 1,740 2,906 Derivative instruments — 1,774 Operating lease liability 9,526 — Other 7,118 5,490 Total deferred tax assets 66,155 46,879 less: Valuation allowance 3,834 2,834 62,321 44,045 Net deferred tax liabilities (a) $ (59,799) $ (69,591) (a) The Company had deferred tax assets of $4.3 million and $1.5 million included in Other assets in the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively. On December 31, 2022, the Company had $47.3 million and $3.7 million of state and non-U.S. net operating loss carryforwards that begin to expire in 2023 and 2035, respectively. The Company also has $1.9 million of U.S. foreign tax credits ("FTCs") carryforwards that begin to expire after 2031. The valuation allowance of $3.8 million is related to deferred tax assets of $1.9 million, $1.5 million, and $0.4 million for U.S. federal FTCs, branch income tax accounting that will impact future U.S. federal FTCs, and outside basis differences in U.S. equity investees, respectively. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance will be recorded to reduce deferred tax assets if, based on all available evidence, it is considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. In assessing the realizability of our deferred tax assets, we consider positive and negative evidence, including historical operating results, future reversals of existing taxable temporary differences, projected future earnings, and tax planning strategies. The Company and its subsidiaries, file income tax returns in the U.S., foreign, state and local jurisdictions. The Company is no longer subject to examination by taxing authorities in the U.S., foreign, or state and local jurisdictions for years before 2014. The Company’s subsidiary partnership returns are under federal tax examination by the IRS for the tax years 2015 through 2018. The Company’s subsidiary is under federal tax examination by the Mexican tax authorities for tax year 2015. Due to the potential for resolution of U.S. federal, foreign, state and local examinations, it is reasonably possible that the gross unrecognized tax benefits may change within the next twelve months by a range of $18.6 million to $40.7 million. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (in thousands) 2022 2021 2020 Balance at beginning of period $ 51,754 $ 44,401 $ 22,415 Tax positions related to the current year Gross additions 8,074 13,179 11,598 Tax positions related to prior years Gross additions 19,434 1,364 12,013 Gross reductions — (7,190) (1,566) Lapse in statute of limitations — — (59) Balance at end of period $ 79,262 $ 51,754 $ 44,401 As of December 31, 2022, 2021 and 2020, if our unrecognized tax benefits were recognized in future periods, they would favorably impact our effective tax rate. As of December 31, 2022, unrecognized tax benefits of $79.2 million include $60.3 million associated with the federal and state R&D Credits. The Company’s practice is to recognize interest and penalties on uncertain tax positions in the provision for income taxes in the Consolidated Statement of Operations. At December 31, 2022, 2021, and 2020, the Company recorded reserves of $8.6 million, $2.7 million and $1.8 million, respectively, of interest and penalties on uncertain tax positions in the Consolidated Balance Sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
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 ("AOCI") for the years ended December 31, 2022 and 2021: Year ended December 31, (in thousands) 2022 2021 Currency Translation Adjustment Beginning balance $ 5,631 $ 5,739 Other comprehensive income (loss) before reclassifications (13,834) (108) Tax effect — — Other comprehensive income (loss), net of tax (13,834) (108) Ending Balance $ (8,203) $ 5,631 Cash Flow Hedges Beginning balance $ (5,335) $ (18,106) Other comprehensive income (loss) before reclassifications 37,575 8,105 Amounts reclassified from AOCI (a) 989 8,855 Tax effect (9,683) (4,189) Other comprehensive income (loss), net of tax 28,881 12,771 Ending Balance $ 23,546 $ (5,335) Pension and Other Postretirement Plans Beginning balance $ 640 $ 33 Other comprehensive income (loss) before reclassifications 6,492 1,699 Amounts reclassified from AOCI (b) (911) (911) Tax effect (1,338) (181) Other comprehensive income (loss), net of tax 4,243 607 Ending Balance $ 4,883 $ 640 Investments in Convertible Preferred Securities Beginning balance $ 258 $ 258 Other comprehensive income (loss), net of tax — — Ending Balance $ 258 $ 258 Total AOCI Ending Balance $ 20,484 $ 1,194 (a) Amounts reclassified from gain (loss) on cash flow hedges are reclassified from AOCI to the Consolidated Statements of Operations when the hedged item affects earnings and is recognized in Interest expense, net. See Note 5 for additional information. (b) This AOCI component is included in the computation of net periodic benefit cost recorded in Operating, administrative and general expenses. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021: (in thousands) December 31, 2022 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 54,516 $ 143,402 $ — $ 197,918 Provisionally priced contracts (b) (20,960) (115,377) — (136,337) Convertible preferred securities (c) — — 16,278 16,278 Other assets and liabilities (d) (209) 31,400 — 31,191 Total $ 33,347 $ 59,425 $ 16,278 $ 109,050 (in thousands) December 31, 2021 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 128,407 $ 156,698 $ — $ 285,105 Provisionally priced contracts (b) 43,944 (89,797) — (45,853) Convertible preferred securities (c) — — 11,618 11,618 Other assets and liabilities (d) 2,784 (7,361) — (4,577) Total $ 175,135 $ 59,540 $ 11,618 $ 246,293 (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 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 exchange-traded futures and options contracts that the Company holds, net of the cash collateral that the Company has in its margin account. The majority of the Company’s assets and liabilities measured at fair value are based on the market approach valuation technique. With the market approach, fair value is derived using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s net commodity derivatives primarily consist of futures or options contracts via regulated exchanges and contracts with producers or customers under which the future settlement date and bushels (or gallons in the case of ethanol contracts) of commodities to be delivered (primarily wheat, corn, soybeans and ethanol) are fixed and under which the price may or may not be fixed. Depending on the specifics of the individual contracts, the fair value is derived from the futures or options prices 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 a 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 recurring fair value measurements using Level 3 inputs is as follows: Convertible Preferred Securities (in thousands) 2022 2021 Assets at January 1, $ 11,618 $ 8,849 Additional investments 4,655 5,401 Gains (losses) included in Other income, net 5 (2,632) Assets at December 31, $ 16,278 $ 11,618 The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of December 31, 2022 and 2021: Quantitative Information about Recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of 12/31/2022 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 16,278 Implied based on market prices N/A N/A (in thousands) Fair Value as of 12/31/2021 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 11,618 Implied based on market prices N/A N/A (a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points. Quantitative Information about Non-Recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of 12/31/2022 Valuation Method Unobservable Input Weighted Average Grain assets (a) $ 9,000 Third party appraisal Various N/A (in thousands) Fair Value as of 12/31/2021 Valuation Method Unobservable Input Weighted Average Frac sand assets (b) $ 2,946 Third party appraisal Various N/A Real property (c) 700 Market approach Various N/A (a) The Company recognized impairment charges on a Nebraska grain asset. The fair value of the asset was determined using third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis. (b) The Company recognized impairment charges on long lived assets related to its frac sand business. The fair value of the assets were determined using prior transactions and third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis. (c) The Company recognized impairment charges on certain Trade assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets were determined using prior transactions in the local market and a recent sale of comparable Trade segment assets. The fair value of the Company’s cash equivalents, accounts receivable and accounts payable approximate their carrying value as they are close to maturity. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the ordinary course of business and on an arms-length basis, the Company will enter into related party transactions with the minority shareholders of the Company's Renewables 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: Year Ended December 31, (in thousands) 2022 2021 2020 Sales of products $ 398,390 $ 342,816 $ 176,768 Purchases of products 76,479 44,182 52,665 December 31, (in thousands) 2022 2021 Accounts receivable $ 12,272 $ 9,984 Accounts payable 7,070 6,034 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s operations include three reportable business segments that are distinguished primarily on the basis of products and services offered as well as the management structure. The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The Renewables business produces, purchases and sells ethanol and co-products. The segment also operates a merchandising portfolio of ethanol, ethanol co-products and other biofuels such as renewable diesel feedstocks. The Plant Nutrient business manufactures and distributes agricultural inputs, primary nutrients and specialty fertilizers, to dealers and farmers, along with turf care and corncob-based products. Included in Other are the corporate level costs not attributed to an operating segment. In the third quarter of 2021, the Company sold its Rail Leasing assets and sold substantially all of the remaining assets that comprised the legacy Rail segment. Prior year results have been recast to reflect this change and Rail items have been classified as discontinued operations throughout the financial statements. See Note 16 for further details of the divestiture of the Rail segment. The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. The Company does not have any customers who represent 10 percent, or more, of total revenues. Year Ended December 31, (in thousands) 2022 2021 2020 Revenues from external customers Trade $ 13,047,537 $ 9,304,357 $ 6,141,402 Renewables 3,178,539 2,440,798 1,260,259 Plant Nutrient 1,099,308 866,895 662,959 Total $ 17,325,384 $ 12,612,050 $ 8,064,620 Year Ended December 31, (in thousands) 2022 2021 2020 Interest expense (income) Trade $ 42,551 $ 23,688 $ 21,974 Renewables 8,775 7,602 7,461 Plant Nutrient 7,298 4,355 5,805 Other (1,775) 1,647 (1,456) Total $ 56,849 $ 37,292 $ 33,784 Year Ended December 31, (in thousands) 2022 2021 2020 Other income, net Trade $ 12,661 $ 35,878 $ 12,592 Renewables 20,731 3,200 2,795 Plant Nutrient 3,001 2,128 1,274 Other (2,570) (3,768) 1,540 Total $ 33,823 $ 37,438 $ 18,201 Year Ended December 31, (in thousands) 2022 2021 2020 Income (loss) before income taxes from continuing operations Trade $ 95,225 $ 87,946 $ 24,687 Renewables (a) 108,221 81,205 (47,338) Plant Nutrient 39,162 42,615 16,015 Other (48,026) (50,996) (20,445) Income (loss) before income taxes from continuing operations $ 194,582 $ 160,770 $ (27,081) (a) Includes income (loss) attributable to noncontrolling interests of $35.9 million, $31.9 million and $(21.9) million for the years ended December 31, 2022, 2021 and 2020, respectively. December 31, (in thousands) 2022 2021 Identifiable assets Trade $ 3,166,813 $ 3,115,045 Renewables 835,860 784,031 Plant Nutrient 527,725 453,137 Other 74,727 152,952 Total assets of continuing operations 4,605,125 4,505,165 Assets of discontinued operations 2,871 64,054 Total $ 4,607,996 $ 4,569,219 Year Ended December 31, (in thousands) 2022 2021 2020 Capital expenditures Trade $ 29,433 $ 17,828 $ 14,911 Renewables 42,734 28,502 39,791 Plant Nutrient 34,678 21,616 16,565 Other 1,439 3,828 1,458 Total $ 108,284 $ 71,774 $ 72,725 Year Ended December 31, (in thousands) 2022 2021 2020 Depreciation and amortization Trade $ 35,953 $ 44,335 $ 44,627 Renewables 63,458 77,542 73,224 Plant Nutrient 26,634 25,957 25,407 Other 8,697 9,340 9,807 Total from continuing operations 134,742 157,174 153,065 Discontinued operations — 21,760 35,573 Total $ 134,742 $ 178,934 $ 188,638 Year Ended December 31, (in thousands) 2022 2021 2020 Revenues from external customers by geographic region United States $ 12,503,330 $ 9,771,502 $ 6,180,376 Canada 1,199,487 806,481 517,006 Egypt 573,371 73,654 8,136 Mexico 493,111 490,672 246,523 Switzerland 373,737 487,363 348,867 Other 2,182,348 982,378 763,712 Total $ 17,325,384 $ 12,612,050 $ 8,064,620 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain grain handling and storage facilities, ethanol storage terminals, warehouse space, railcars, office space, machinery and equipment, vehicles and information technology equipment under operating leases. Lease expense for these leases is recognized within the Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. Leases with a term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized in the Consolidated Statements of Operations on a straight-line basis over the lease term. The Company’s lease agreements include lease payments that are largely fixed and do not contain material residual value guarantees. The following table summarizes the amounts recognized in the Company's Consolidated Balance Sheets related to leases: December 31, (in thousands) Consolidated Balance Sheet Classification 2022 2021 Assets Operating lease assets Right of use assets, net $ 61,890 $ 52,146 Finance lease assets Property, plant and equipment, net 21,359 23,895 Total leased assets 83,249 76,041 Liabilities Current operating leases Accrued expenses and other current liabilities 25,364 19,580 Non-current operating leases Long-term lease liabilities 37,147 31,322 Total operating lease liabilities 62,511 50,902 Current finance leases Current maturities of long-term debt 1,565 2,118 Non-current finance leases Long-term debt, less current maturities 8,400 10,762 Total finance lease liabilities 9,965 12,880 Total lease liabilities $ 72,476 $ 63,782 The components of lease cost recognized within the Company's Consolidated Statement of Operations were as follows: Year Ended December 31, (in thousands) Consolidated Statement of Operations Classification 2022 2021 2020 Lease cost: Operating lease cost Cost of sales and merchandising revenues $ 19,891 $ 13,016 $ 10,968 Operating lease cost Operating, administrative and general expenses 10,132 10,324 10,678 Finance lease cost Amortization of right-of-use assets Cost of sales and merchandising revenues 614 978 932 Amortization of right-of-use assets Operating, administrative and general expenses 1,009 1,008 1,008 Interest expense on lease liabilities Interest expense, net 413 679 859 Short-term lease cost Cost of sales and merchandising revenues 2,465 1,349 66 Variable lease cost Cost of sales and merchandising revenues 338 458 80 Variable lease cost Operating, administrative and general expenses 394 231 260 Total lease cost $ 35,256 $ 28,043 $ 24,851 The Company often has the option to renew lease terms for buildings and other assets. The exercise of a lease renewal option is generally at the sole discretion of the Company. In addition, certain lease agreements may be terminated prior to their original expiration date at the discretion of the Company. Each renewal and termination option is evaluated at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The following table summarizes the weighted-average remaining lease terms: As of December 31, Weighted-Average Remaining Lease Term 2022 2021 Operating leases 3.9 years 3.9 years Finance leases 6.9 years 7.2 years The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The following table summarizes the weighted-average discount rate used to measure the Company's lease liabilities: As of December 31, Weighted-Average Discount Rate 2022 2021 Operating leases 3.44 % 2.63 % Finance leases 3.35 % 3.30 % Supplemental Cash Flow Information Related to Leases Year Ended December 31, (in thousands) 2022 2021 2020 Cash paid for amounts included in the Operating cash flows from operating leases $ 30,294 $ 29,304 $ 28,444 Operating cash flows from finance leases — — 1,289 Financing cash flows from finance leases 1,782 12,538 4,115 Right-of-use assets obtained in exchange for lease obligations: Operating leases 36,056 35,024 15,160 Finance leases — 364 4,972 Maturity Analysis of Leases Liabilities December 31, 2022 (in thousands) Operating Leases Finance Leases Total 2023 $ 28,108 $ 1,889 $ 29,997 2024 17,326 1,768 19,094 2025 9,801 1,406 11,207 2026 5,142 1,384 6,526 2027 1,629 1,391 3,020 Thereafter 5,507 3,382 8,889 Total lease payments 67,513 11,220 78,733 Less: interest 5,002 1,255 6,257 Total $ 62,511 $ 9,965 $ 72,476 December 31, 2021 (in thousands) Operating Leases Finance Leases Total 2022 $ 20,639 $ 2,521 $ 23,160 2023 13,797 2,305 16,102 2024 8,121 2,175 10,296 2025 4,974 1,406 6,380 2026 2,434 1,384 3,818 Thereafter 3,881 4,773 8,654 Total lease payments 53,846 14,564 68,410 Less: interest 2,944 1,684 4,628 Total $ 50,902 $ 12,880 $ 63,782 |
Leases | Leases The Company leases certain grain handling and storage facilities, ethanol storage terminals, warehouse space, railcars, office space, machinery and equipment, vehicles and information technology equipment under operating leases. Lease expense for these leases is recognized within the Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. Leases with a term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized in the Consolidated Statements of Operations on a straight-line basis over the lease term. The Company’s lease agreements include lease payments that are largely fixed and do not contain material residual value guarantees. The following table summarizes the amounts recognized in the Company's Consolidated Balance Sheets related to leases: December 31, (in thousands) Consolidated Balance Sheet Classification 2022 2021 Assets Operating lease assets Right of use assets, net $ 61,890 $ 52,146 Finance lease assets Property, plant and equipment, net 21,359 23,895 Total leased assets 83,249 76,041 Liabilities Current operating leases Accrued expenses and other current liabilities 25,364 19,580 Non-current operating leases Long-term lease liabilities 37,147 31,322 Total operating lease liabilities 62,511 50,902 Current finance leases Current maturities of long-term debt 1,565 2,118 Non-current finance leases Long-term debt, less current maturities 8,400 10,762 Total finance lease liabilities 9,965 12,880 Total lease liabilities $ 72,476 $ 63,782 The components of lease cost recognized within the Company's Consolidated Statement of Operations were as follows: Year Ended December 31, (in thousands) Consolidated Statement of Operations Classification 2022 2021 2020 Lease cost: Operating lease cost Cost of sales and merchandising revenues $ 19,891 $ 13,016 $ 10,968 Operating lease cost Operating, administrative and general expenses 10,132 10,324 10,678 Finance lease cost Amortization of right-of-use assets Cost of sales and merchandising revenues 614 978 932 Amortization of right-of-use assets Operating, administrative and general expenses 1,009 1,008 1,008 Interest expense on lease liabilities Interest expense, net 413 679 859 Short-term lease cost Cost of sales and merchandising revenues 2,465 1,349 66 Variable lease cost Cost of sales and merchandising revenues 338 458 80 Variable lease cost Operating, administrative and general expenses 394 231 260 Total lease cost $ 35,256 $ 28,043 $ 24,851 The Company often has the option to renew lease terms for buildings and other assets. The exercise of a lease renewal option is generally at the sole discretion of the Company. In addition, certain lease agreements may be terminated prior to their original expiration date at the discretion of the Company. Each renewal and termination option is evaluated at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The following table summarizes the weighted-average remaining lease terms: As of December 31, Weighted-Average Remaining Lease Term 2022 2021 Operating leases 3.9 years 3.9 years Finance leases 6.9 years 7.2 years The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The following table summarizes the weighted-average discount rate used to measure the Company's lease liabilities: As of December 31, Weighted-Average Discount Rate 2022 2021 Operating leases 3.44 % 2.63 % Finance leases 3.35 % 3.30 % Supplemental Cash Flow Information Related to Leases Year Ended December 31, (in thousands) 2022 2021 2020 Cash paid for amounts included in the Operating cash flows from operating leases $ 30,294 $ 29,304 $ 28,444 Operating cash flows from finance leases — — 1,289 Financing cash flows from finance leases 1,782 12,538 4,115 Right-of-use assets obtained in exchange for lease obligations: Operating leases 36,056 35,024 15,160 Finance leases — 364 4,972 Maturity Analysis of Leases Liabilities December 31, 2022 (in thousands) Operating Leases Finance Leases Total 2023 $ 28,108 $ 1,889 $ 29,997 2024 17,326 1,768 19,094 2025 9,801 1,406 11,207 2026 5,142 1,384 6,526 2027 1,629 1,391 3,020 Thereafter 5,507 3,382 8,889 Total lease payments 67,513 11,220 78,733 Less: interest 5,002 1,255 6,257 Total $ 62,511 $ 9,965 $ 72,476 December 31, 2021 (in thousands) Operating Leases Finance Leases Total 2022 $ 20,639 $ 2,521 $ 23,160 2023 13,797 2,305 16,102 2024 8,121 2,175 10,296 2025 4,974 1,406 6,380 2026 2,434 1,384 3,818 Thereafter 3,881 4,773 8,654 Total lease payments 53,846 14,564 68,410 Less: interest 2,944 1,684 4,628 Total $ 50,902 $ 12,880 $ 63,782 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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 will record additional expense in the Consolidated Statements of Operations. 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 status of the claim, the Company does not believe the excess, net of the acquisition-related indemnity, will be material. The estimated losses for all other outstanding claims that are considered reasonably possible are not material. Commitments As of December 31, 2022, the Company carries $1.0 million in industrial revenue bonds with the City of Colwich, Kansas (the "City") that mature in 2029, and leases back facilities owned by the City that the Company recorded as property, plant, and equipment, net, on its Consolidated Balance Sheets under a finance lease. The lease payment on the facilities is sufficient to pay principal and interest on the bonds. Because the Company owns all of the outstanding bonds, has a legal right to set-off, and intends to set-off the corresponding lease and interest payment, the Company netted the finance lease obligation with the bond asset and, in turn, reflected no amount for the obligation or the corresponding asset on its Consolidated Balance Sheets at December 31, 2022. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans The Company's 2019 Long-Term Incentive Compensation Plan, dated February 22, 2019, and subsequently approved by shareholders on May 10, 2019, and amended and restated on May 6, 2022, is authorized to issue up to 7.0 million shares of common stock as options, share appreciation rights, restricted shares and units, performance shares and units and other stock or cash-based awards. Approximately 4.5 million shares remain available for issuance at December 31, 2022. Stock-based compensation expense for all stock-based compensation awards is based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award and recognizes forfeitures as they occur. Total compensation expense recognized in the Consolidated Statements of Operations for all stock compensation programs was $11.2 million, $11.0 million, and $9.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Non-Qualified Stock Options ("Options") In 2015, the Company granted 325 thousand non-qualified stock options upon hiring a senior executive. The fair value of the options was estimated at the date of grant under the Black-Scholes option pricing model. The options had a term of seven years with a weighted-average exercise price of $35.40 and were fully vested. All 142 thousand options outstanding as of December 31, 2021, were exercised in 2022. Restricted Stock Awards & Units ("RSUs") These awards are contingent to requisite service periods established within the grant documents and range from 1 to 3 years. RSU's graded vest in conjunction with the requisite service period. Total restricted stock expense is equal to the market value of the Company's common shares on the date of the award and is recognized over the requisite service period on a straight-line basis. A summary of the status of the Company's non-vested RSUs as of December 31, 2022, and changes during the period then ended, is presented below: Shares (in thousands) Weighted-Average Grant-Date Fair Value Non-vested at January 1, 2022 388 $ 27.75 Granted 130 43.38 Vested (260) 29.99 Forfeited (6) 33.22 Non-vested at December 31, 2022 252 $ 32.79 Year ended December 31, 2022 2021 2020 Total fair value of shares vested (in thousands) $ 7,465 $ 9,453 $ 13,510 Weighted-average fair value of RSUs granted $ 43.38 $ 26.86 $ 18.35 As of December 31, 2022, there was $2.8 million of total unrecognized compensation cost related to non-vested RSUs that is expected to be recognized over a weighted-average period of 1.3 years. Earnings Per Share-Based Performance Share Units (“EPS PSUs”) Each EPS PSU gives the participant the right to receive common shares dependent on the achievement of specified performance results over a 3-year performance period. At the end of the performance period, the number of shares of stock issued will be determined by adjusting the award upward or downward from a target award. Fair value of EPS PSUs issued is based on the market value of the Company's common shares on the date of the award. The related compensation expense is recognized over the performance period when achievement of the award is probable and is adjusted for changes in the number of shares expected to be issued if changes in performance are expected. Currently, the Company is accounting for the awards granted in 2022, 2021 and 2020 at the maximum amount available for issuance, respectively. A summary of the status of the Company's EPS PSUs as of December 31, 2022, and changes during the period then ended, is presented below: Shares (in thousands) Weighted-Average Grant-Date Fair Value Non-vested at January 1, 2022 386 $ 23.69 Granted 107 43.98 Vested (25) 25.73 Forfeited (71) 27.51 Non-vested at December 31, 2022 397 $ 28.35 Year ended December 31, 2022 2021 2020 Weighted-average fair value of EPS PSUs granted $ 43.98 $ 26.80 $ 19.06 As of December 31, 2022, there was $4.5 million unrecognized compensation cost related to non-vested EPS PSUs that is expected to be recognized over a weighted-average period of 1.0 years . Total Shareholder Return-Based Performance Share Units (“TSR PSUs”) Each TSR PSU gives the participant the right to receive common shares dependent on total shareholder return on the Company's Common Shares over a 3-year period. At the end of the period, the number of shares of stock issued will be determined by adjusting the award upward or downward from a target award. The fair value of TSR PSUs is estimated at the date of grant using a Monte Carlo Simulation with the following assumptions: Expected volatility was estimated based on the historical volatility of the Company's common shares over the 2.83 years period prior to the grant date. The average expected life was based on the contractual term of the plan. The risk-free rate is based on the U.S. Treasury Strips available with maturity period consistent with the expected life. 2022 Risk free interest rate 1.44% Dividend yield —% Volatility factor of the expected market price of the common shares 53% Expected term (in years) 2.83 Correlation coefficient 0.45 A summary of the status of the Company's TSR PSUs as of December 31, 2022, and changes during the period then ended, is presented below: Shares (in thousands) Weighted-Average Grant-Date Fair Value Non-vested at January 1, 2022 386 $ 30.89 Granted 106 66.90 Vested — — Forfeited (95) 48.27 Non-vested at December 31, 2022 397 $ 36.31 Year ended December 31, 2022 2021 2020 Weighted-average fair value of TSR PSUs granted $ 66.90 $ 35.66 $ 16.80 As of December 31, 2022, there was approximately $3.3 million unrecognized compensation cost related to non-vested TSR PSUs that is expected to be recognized over a weighted-average period of 1.0 years . Employee Share Purchase Plan (the “ESP Plan”) The Company's 2004 ESP Plan amended in 2019 is authorized to issue up to 230 thousand common shares. The ESP Plan allows employees to purchase common shares through payroll withholdings. The Company has approximately 79 thousand common shares remaining available for issuance to and purchase by employees under this plan. The ESP Plan also contains an option component. The purchase price per share under the ESP Plan is the lower of the market price at the beginning or end of the year. The Company records a liability for withholdings not yet applied towards the purchase of common stock. This liability is included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. The fair value of the option component of the ESP Plan is estimated at the date of grant under the Black-Scholes option pricing model with the following assumptions at the grant date. Expected volatility was estimated based on the historical volatility of the Company's common shares over the past year. The average expected life was based on the contractual term of the plan. The risk-free rate is based on the U.S. Treasury yield curve rate with a one year term. Forfeitures are estimated at the date of grant based on historical experience. Year ended December 31, 2022 2021 2020 Risk free interest rate 0.39 % 0.10 % 1.59 % Dividend yield 1.82 % 2.86 % 2.71 % Volatility factor of the expected market price of the common shares 38 % 72 % 36 % Expected life for the options (in years) 1.0 1.0 1.0 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On August 16, 2021, the Company entered into a definitive agreement under which the Company sold the assets of the Company’s Rail Leasing business for a cash purchase price of approximately $543.1 million which resulted in a loss of $1.5 million. In conjunction with the sale of the Rail Leasing business, the Company announced its intent to divest the remaining pieces of the Rail Leasing business and the Rail Repair business. In 2022, the Company finalized the definitive agreement to sell the Rail Repair business and divested substantially all of the remaining leases from the Rail Leasing business. The sale of the Rail Repair business for a purchase price of approximately $56.3 million, resulted in a pre-tax gain of approximately $27.1 million that was recorded in Other income, net in the table below. As a result of the sale of the Rail Leasing business and the intent to divest the Rail Repair business in the third quarter of 2021, substantially all of the assets and liabilities of the former Rail segment was classified as held for sale in the accompanying Consolidated Balance Sheets. As a part of the definitive agreement to sell the Rail Repair business, the Company retained the working capital from the Rail Repair business along with a small group of right of use assets and lease liabilities from the Rail Leasing business that were not sold. These balances are included in continuing operations within the Consolidated Balance Sheet as of December 31, 2022. The table below summarizes the results of the Rail Leasing business and the Rail Repair business for the years ended December 31, 2022, 2021 and 2020, which are reflected in the Consolidated Statements of Operations as Income from discontinued operations, net of income taxes: Year ended December 31, (in thousands) 2022 2021 2020 Sales and merchandising revenues $ 25,121 $ 116,787 $ 143,816 Cost of sales and merchandising revenues 26,244 88,393 105,091 Gross profit (loss) (1,123) 28,394 38,725 Operating, administrative and general expenses 3,968 12,350 21,512 Asset impairment 2,818 626 — Interest expense, net — 8,783 17,491 Other income, net 33,046 1,020 2,885 Income from discontinued operations before income taxes 25,137 7,655 2,607 Income tax provision from discontinued operations 13,112 3,331 651 Income from discontinued operations, net of income taxes $ 12,025 $ 4,324 $ 1,956 The following table summarizes the assets and liabilities which are classified as held-for-sale in the Consolidated Balance Sheets as of December 31, 2022 and 2021. (in thousands) December 31, December 31, Assets Current assets: Accounts receivable, net $ — $ 12,643 Inventories — 6,739 Other current assets 2,871 1,503 Current assets held-for-sale 2,871 20,885 Other assets: Rail assets leased to others, net — 458 Property, plant and equipment, net — 17,280 Goodwill — 4,167 Other intangible assets, net — 24 Right of use assets, net — 20,999 Other assets, net — 241 Non-current assets held-for-sale — 43,169 Total assets held-for-sale $ 2,871 $ 64,054 Liabilities Current liabilities: Trade and other payables $ — $ 2,546 Short-term lease liabilities — 4,672 Accrued expenses and other current liabilities — 6,161 Current liabilities held-for-sale — 13,379 Long-term lease liabilities — 16,119 Non-current liabilities held-for-sale — 16,119 Total liabilities held-for-sale $ — $ 29,498 The following table summarizes cash flow information relating to discontinued operations for the years ended December 31, 2022, 2021 and 2020, respectively: Year Ended December 31, (in thousands) 2022 2021 2020 Depreciation and amortization $ — $ 21,760 $ 35,573 Rail capital expenditures (31,458) (8,669) (32,161) Proceeds from sale of Rail assets 36,706 19,150 10,077 Loss (gain) on sale of discontinued operations (27,091) 1,491 — Non-cash operating activities - gain on sale of railcars (5,463) (5,603) (649) Non-cash operating activities - asset impairment 2,818 626 — Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end — — 491 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2022, 2021 and 2020 are as follows: (in thousands) Trade Renewables Plant Nutrient Total Balance at January 1, 2020 $ 127,781 $ 2,726 $ 686 $ 131,193 Acquisitions — 349 — 349 Reorganization (5,714) 5,714 — — Balance at December 31, 2020 122,067 8,789 686 131,542 Disposals (a) (2,200) — — (2,200) Acquisitions — — — — Balance at December 31, 2021 119,867 8,789 686 129,342 Acquisitions — — — — Balance at December 31, 2022 $ 119,867 $ 8,789 $ 686 $ 129,342 (a) Removal of allocated goodwill due to the sale of a grain asset location in Champaign, Illinois. Goodwill for the Trade segment is $119.9 million as of December 31, 2022, which is net of prior years' accumulated impairment losses of $46.4 million. Goodwill for the Plant Nutrient segment is $0.7 million, net of accumulated impairment losses of $68.9 million as of December 31, 2022. The Company had goodwill of approximately $129.3 million at December 31, 2022, which includes approximately $78.5 million related to the Company's Grain Storage and Merchandising ("GSM") reporting unit, approximately $41.3 million related to the Company's Food and Specialty Ingredients ("FSI") reporting unit, approximately $8.8 million related to the Company's Renewables reporting unit and approximately $0.7 million is related to the Lawn reporting unit. Goodwill is tested for impairment annually as of October 1, or more frequently if impairment indicators arise. The Company uses a one-step quantitative approach that compares the business enterprise value ("BEV") of each reporting unit with its carrying value. The BEV was computed based on both an income approach (discounted cash flows) and a market approach. The income approach uses a reporting unit's estimated future cash flows, discounted at the weighted-average cost of capital ("WACC") of a hypothetical third-party buyer. The WACC is the rate used to discount each reporting unit’s estimated future cash flows. The WACC is calculated based on the proportionate weighting of the cost of debt and equity. The cost of equity is based on a risk-free interest rate and an equity risk factor, which is derived from public companies similar to the reporting units and which captures the perceived risks and uncertainties associated with the reporting unit's cash flows. The cost of debt is the rate that a prudent investor would require to lend money to the reporting units on an after-tax basis and is estimated based on a market-derived analysis of corporate bond yields. The cost of debt and equity is weighted based on the debt to market capitalization ratio of publicly traded companies with similarities to the reporting units being tested. The WACC applied in each reporting unit's last quantitative test ranged from 10.25% to 12.00%, which includes a company specific risk premium range from 1.0% to 3.0%. Differences in the WACC used between reporting units is primarily due to distinct risks and uncertainties regarding the cash flows of the different reporting units. The market approach estimates fair value by applying cash flow multiples to the reporting unit's operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics to the reporting unit. Any excess of the carrying value of the goodwill over the BEV will be recorded as an impairment loss. The calculation of the BEV is based on significant unobservable inputs, such as price trends, customer demand, material costs and discount rates, and are classified as Level 3 in the fair value hierarchy. There can be no assurance that anticipated financial results will be achieved and the goodwill balances remain susceptible to future impairment charges. The goodwill related to the GSM and FSI reporting units are determined to have the greatest risk of future impairment charges given the difference (approximately 12% and 33%, respectively) between the BEV and carrying value of these reporting units as of the Company's annual impairment test date. The BEVs of the Company's other reporting units more substantially exceed their carrying values. If the Company's projected future cash flows were lower, or if the assumed weighted-average cost of capital were higher, the testing performed at year-end may have indicated an impairment of the goodwill related to one or more of the Company's reporting units. Any impairment charges that the Company may take in the future could be material to its Consolidated Statements of Operations and financial condition. No goodwill impairment charges were incurred in the years ended December 31, 2022, 2021 or 2020 as a result of our annual impairment testing. The Company's other intangible assets are as follows: December 31, 2022 2021 (in thousands) Useful Life Original Cost Accumulated Amortization Net Book Value Original Cost Accumulated Amortization Net Book Value Intangible asset class Customer lists 3 to 10 $ 143,081 $ 70,539 $ 72,542 $ 136,311 $ 58,047 $ 78,264 Non-compete agreements 1 to 7 22,242 21,311 931 21,796 21,124 672 Supply agreement 10 to 10 8,720 7,912 808 8,721 7,450 1,271 Technology 10 to 10 13,400 10,218 3,182 13,400 8,878 4,522 Trademarks and patents 7 to 10 15,810 13,165 2,645 15,810 12,020 3,790 Software 2 to 10 88,631 68,392 20,239 89,956 61,920 28,036 Other 3 to 5 998 438 560 1,011 429 582 $ 292,882 $ 191,975 $ 100,907 $ 287,005 $ 169,868 $ 117,137 |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net The following table sets forth the items in Other income, net for the periods presented below: Year ended December 31, (in thousands) 2022 2021 2020 Biofuel Producer Program funds $ 17,642 $ — $ — Insurance proceeds 10,632 3,850 2,917 Gain on sales of assets and businesses 3,979 14,661 1,307 Equity earnings (losses) in affiliates (5,671) 4,842 638 Other 7,241 14,085 13,339 Total $ 33,823 $ 37,438 $ 18,201 Individually significant items included in the table above are: Biofuel Producer Program funds - In 2022, the USDA as a part of the Biofuel Producer Program, created under the CARES Act, provided funding to help lower costs and support biofuel producers who faced unexpected market losses due to the COVID-19 pandemic. Under this program TAMH and ELEMENT received $13.3 million and $4.3 million, respectively. Insurance proceeds - Insurance proceeds for the year ended December 31, 2022, consisted of business interruption and property damage proceeds of $3.0 million relating to an prior period incident at the Company's Galena Park, TX facility, business interruption and property damage proceeds of $2.6 million relating to a conveyer collapse in Delhi, LA in the current year, business interruption and property damage proceeds of $5.0 million relating to a grain bin collapse in Delphi, IN in the current year, and other individually insignificant proceeds through the ordinary course of business. Insurance proceeds for the year ended December 31, 2021, consisted of business interruption and property damage proceeds amounting to $3.8 million relating to a prior period incident at the Company's Galena Park, TX facility, and other individually insignificant proceeds through the ordinary course of business. Insurance proceeds for the year ended December 31, 2020, consisted of business interruption and property damage proceeds amounting to $2.9 million relating to an incident at the Company's Galena Park, TX facility, and other individually insignificant proceeds through the ordinary course of business. Gain on sales of assets and businesses - Gains on sales of assets for the year ended December 31, 2022, consisted of gains on the sale of the Company’s remaining frac sand facilities and assets in Oklahoma City, Oklahoma and North Branch, Minnesota of $3.9 million, the sale of certain other assets, and disposals of individually insignificant assets in the ordinary course of business. The year ended December 31, 2021, consisted of gains on the sale of a grain asset in Champaign, Illinois of $14.6 million, the sale of certain other assets, and disposals of individually insignificant assets in the ordinary course of business. Equity earnings (losses) in affiliates - During the year ended December 31, 2022, the Company recorded an impairment charge on a Canadian equity method investment for $4.5 million. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share (in thousands except per common share data) Year Ended December 31, 2022 2021 2020 Numerator: Net income (loss) from continuing operations $ 154,954 $ 131,542 $ (16,171) Net income (loss) attributable to noncontrolling interests (a) 35,899 31,880 (21,925) Net income attributable to The Andersons Inc. common shareholders from continuing operations $ 119,055 $ 99,662 $ 5,754 Income from discontinued operations, net of income taxes $ 12,025 $ 4,324 $ 1,956 Denominator: Weighted-average shares outstanding – basic 33,731 33,279 32,924 Effect of dilutive awards 691 576 265 Weighted-average shares outstanding – diluted 34,422 33,855 33,189 Earnings per share attributable to The Andersons, Inc. common shareholders: Basic earnings: Continuing operations $ 3.53 $ 2.99 $ 0.17 Discontinued operations 0.36 0.13 0.06 $ 3.89 $ 3.12 $ 0.23 Diluted earnings: Continuing operations $ 3.46 $ 2.94 $ 0.17 Discontinued operations 0.35 0.13 0.06 $ 3.81 $ 3.07 $ 0.23 (a) All Net income (loss) attributable to noncontrolling interests is within the continuing operations of the Company. There were 294 thousand antidilutive share-based awards outstanding for the year ended December 31, 2020. Antidilutive shares were de minimis for the years ended December 31, 2022 and 2021. |
Schedule II - Consolidated Valu
Schedule II - Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Consolidated Valuation and Qualifying Accounts | SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS Additions Description (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts (1) Deductions (2) Balance at End of Period Allowance for doubtful accounts receivable 2022 $ 6,911 $ 4,249 $ 17,168 $ (1,936) $ 26,392 2021 9,255 (190) — (2,154) 6,911 2020 6,338 4,163 — (1,246) 9,255 (1) In 2022, the Company reclassified reserves within Commodity derivative assets to reserves within accounts receivable of approximately $14.5 million from reserves on open contract equity positions now transferred into the form of a receivable. The Company also reclassified Accounts receivable and the associated allowance for doubtful accounts of $2.7 million related to the legacy Rail business from discontinued operations to continuing operations as a result of residual accounts receivable not being included with the sale of the remainder of the Rail business. (2) Uncollectible accounts written off, net of recoveries and adjustments to estimates for the allowance for doubtful accounts receivable accounts. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation These Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated entities in which the Company has significant influence, but not control, are accounted for using the equity method of accounting. During the third quarter of 2021, substantially all of the assets and liabilities of the Rail business were classified as held-for-sale in the accompanying Condensed Consolidated Balance Sheets. As discussed further in Note 16, the Company executed a definitive agreement to sell the Rail Leasing business. In conjunction with the sale of the Rail Leasing business, the Company announced its intent to divest the remainder of the Rail business which it successfully sold in the third quarter of 2022. These transactions effectively constitute the entirety of what has historically been included in the Rail reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying Consolidated Statements of Operations for all periods presented. Throughout this Annual Report on Form 10-K, with the exception of the Consolidated Statements of Cash Flows and unless otherwise indicated, amounts and activity are presented on a continuing operations basis. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications. The reclassification relates to the Consolidated Statement of Operations presentation of Asset impairment expense and Equity earnings (losses) in affiliates, net. Asset impairment expense has been reclassified to Operating, administrative and general expenses and Equity in earnings (losses) of affiliates, net has been reclassified to Other income, net. At the inception of joint venture transactions, we identify entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and determine which business enterprise is the primary beneficiary of its operations. A VIE is broadly defined as an entity where either (i) the equity investors as a group, if any, do not have a controlling financial interest, or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates investments in VIEs when the Company is determined to be the primary beneficiary. This evaluation is based on an enterprise’s ability to direct and influence the activities of a VIE that most significantly impact that entity’s economic performance. The Company evaluates its interests in VIEs on an ongoing basis and consolidates any VIE in which it has a controlling financial interest and is deemed to be the primary beneficiary. A controlling financial interest has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact its economic performance; and (ii) the obligation to absorb losses of the VIE that could potentially be significant to it or the right to receive benefits from the VIE that could be significant to the VIE. The Company has two VIE's in The Andersons Marathon Holdings LLC ("TAMH") and ELEMENT, LLC. ("ELEMENT"). The Company evaluated its interests in both TAMH and ELEMENT and determined that these entities are a VIE and that the Company is the primary beneficiary of TAMH and ELEMENT. This is due to the fact that the Company has both the power to direct the activities that most significantly impact these entities and the obligation to absorb losses or the right to receive benefits from TAMH and ELEMENT. Therefore, the Company consolidated both TAMH and ELEMENT in its Consolidated Financial Statements. |
Use of Estimates and Assumptions | Use of Estimates and AssumptionsThe preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include cash and short-term investments with an initial maturity of three months or less. The carrying values of these assets approximate their fair values. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful AccountsTrade accounts receivable are recorded at the invoiced amount and may bear interest if past due. The allowance for doubtful accounts is the best estimate of the current expected credit losses in existing accounts receivable and is reviewed quarterly. The allowance is based both on specific identification of potentially uncollectible accounts and the application of a consistent policy, based on historical experience, to estimate the allowance necessary for the remaining accounts receivable. For those customers that are thought to be at higher risk, the Company makes assumptions as to collectability based on past history and facts about the current situation. Account balances are charged off against the allowance when it becomes more certain that the receivable will not be recovered. The Company manages its exposure to counterparty credit risk through credit analysis and approvals, credit limits and monitoring procedures. |
Commodity Derivatives and Inventories | Commodity Derivatives and Inventories The Company's operating results can be affected by changes to commodity prices. The Trade and Renewables businesses have established “unhedged” position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract to mitigate the price risk associated with those contracts and inventory). To reduce the exposure to market price risk on commodities owned and forward commodity and ethanol purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. The forward purchase and sale contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year. The Company accounts for its commodity derivatives at 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, fair value is adjusted for differences in local markets and non-performance risk. While the Company considers certain of its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges. 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 in the Consolidated Statements of Operations. Additional information about the fair value of the Company's commodity derivatives is presented in Notes 5 and 10 to the Consolidated Financial Statements. Readily Marketable Inventories ("RMI"), which are grain and other agricultural commodities, may be acquired under provisionally priced contracts, are stated at their net realizable value, which approximates estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. At times the Company holds a portion of RMI within its facilities for others. Our storage facilities are licensed warehouses and must be bonded and insured for its capacity under license and is obligated to return to the title holder of the RMI an equal quantity and quality. The Company does not have title to the inventory 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 with regard to any deficiencies and does not anticipate material losses in the future. All other inventories are stated at the lower of cost or net realizable value. Cost is determined by the average cost method. Additional information about inventories is presented in Note 2 to the Consolidated Financial Statements. |
Derivatives - Master Netting Arrangements | Derivatives - Master Netting Arrangements 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 futures, options 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 futures, 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 Company nets, by counterparty, its futures and over-the-counter positions against the cash collateral provided or received. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Consolidated Balance Sheets. Additional information about the Company's master netting arrangements is presented in Note 5 to the Consolidated Financial Statements. |
Derivatives - Interest Rate and Foreign Currency Contracts | Derivatives - Interest Rate and Foreign Currency Contracts The Company periodically enters into interest rate contracts to manage interest rate risk on borrowing or financing activities. The Company has long-term interest rate swaps recorded in other assets or other long-term liabilities that expire from 2025 to 2030 and have been designated as cash flow hedges; accordingly, changes in the fair value of the instruments are recognized in Other comprehensive income (loss) in the Consolidated Balance Sheets. While the Company considers all of its derivative positions to be effective economic hedges of specified risks, these interest rate contracts for which hedge accounting is not applied are recorded on the Consolidated Balance Sheets in either other current assets or liabilities (if short-term in nature) or in other assets or other long-term liabilities (if non-current in nature), and changes in fair value are recognized in current earnings as interest expense. Upon termination of a derivative instrument or a change in the hedged item, any remaining fair value recorded in the Consolidated Balance Sheets is recorded in Interest expense, net consistent with the cash flows associated with the underlying hedged item. Information regarding the nature and terms of the Company's interest rate derivatives is presented in Note 5 to the Consolidated Financial Statements. |
Property, Plant and Equipment | Property, Plant and EquipmentProperty, plant and equipment is recorded at cost. Repairs and maintenance costs are charged to expense as incurred, while betterments that extend useful lives are capitalized. Depreciation is provided over the estimated useful lives of the individual assets, by the straight-line method. Estimated useful lives are generally as follows: land improvements - 16 years; leasehold improvements - the shorter of the lease term or the estimated useful life of the improvement, ranging from 3 to 20 years; buildings and storage facilities - 10 to 40 years; and machinery and equipment - 3 to 20 years. The cost of assets retired or otherwise disposed of, and the accumulated depreciation thereon are removed from the accounts, with any gain or loss realized upon sale recorded in Other income, net within the Consolidated Statements of Operations. |
Deferred Debt Issue Costs | Deferred Debt Issue Costs Costs associated with the issuance of term debt are deferred and recorded net with debt. Costs associated with revolving credit agreements are recorded as a deferred asset. These costs are amortized, as a component of interest expense, over the earlier of the stated term of the debt or the period from the issue date through the first early payoff date without penalty, or the expected payoff date if the loan does not contain a prepayment penalty. Deferred costs associated with the borrowing arrangement with a syndication of banks are amortized over the term of the agreement. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is subject to an annual impairment test or more often when events or circumstances indicate that the carrying amount of goodwill may be impaired. A goodwill impairment loss is recognized to the extent the carrying amount of goodwill exceeds the business enterprise value. Additional information about the Company's goodwill and other intangible assets is presented in Note 17 to the Consolidated Financial Statements. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets and Equity Method Investments Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the assets to the undiscounted future net cash flows the Company expects to generate with the assets. If such assets are considered to be impaired, the Company recognizes an impairment loss for the amount by which the carrying amount of the assets exceeds the fair value of the assets. In 2022, the Company's 51% owned ELEMENT plant faced a combination of high corn basis, increased natural gas prices and a rapid decline in Low Carbon Fuel Standards credit values, that negatively impacted operations. The adverse operating conditions led to a failure of a debt covenant during the year, as well as, a forecasted failure of another covenant within the next 12 months. Accordingly, it was deemed that a triggering event occurred as of September 30, 2022 related to the ELEMENT ethanol plant. Management performed a recoverability test of the ELEMENT plant’s long-lived assets as this is the lowest level of identifiable cash flows. The key assumptions used in the recoverability test included input costs (corn, natural gas, etc.), production days, and co-product premiums. Each of these inputs were given probability weightings based on management's assessment regarding the likelihood of the respective forecasts. Using future forecasted cash flows, the ELEMENT asset group passed its recoverability test on an undiscounted cash flow basis by 15% over the carrying value of its assets. Assumptions used in the model did not change materially during the fourth quarter. However, if there are changes to key assumptions in the analysis it is reasonably possible management's estimate that it will recover the carrying amount of these assets could change, even in the near term. See further discussion on ELEMENT developments subsequent to December 31, 2022, in Note 4 of the Consolidated Financial Statements. |
Provisionally Priced Grain Contracts | Provisionally Priced Commodity Contracts Accounts payable includes certain amounts related to commodity purchases for which, even though the Company has taken ownership and possession of the commodity the final purchase price has not been fully established. If the futures and basis components are unpriced, it is referred to as a delayed price payable. If the futures component has not been established, but the basis has been set, it is referred to as a basis payable. The unpriced portion of these payables will be exposed to changes in the fair value of the underlying commodity based on quoted prices on commodity exchanges (or basis levels). Those payables that are fully priced are not considered derivative instruments. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for all stock-based compensation awards is based on the estimated grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, adjusted for revisions to performance expectations. Additional information about the Company's stock compensation plans is presented in Note 15 to the Consolidated Financial Statements. |
Per Share Data | Per Share Data We present both basic and diluted earnings per share amounts from continuing operations and discontinued operations attributable to the Company's shareholders. Basic earnings per common share are determined by dividing net earnings attributable to controlling interests by the weighted-average number of common shares outstanding. In computing diluted earnings per share, average number of common shares outstanding is increased by unvested stock awards and common stock options outstanding with exercise prices lower than the average market price of common shares using the treasury share method. |
Revenue Recognition | Revenue Recognition The Company’s revenue consists of sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815), and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). Revenue from commodity contracts (ASC 815) Revenue from commodity contracts primarily relates to forward sales of commodities in the Company’s Trade and Renewables segments, such as corn, soybeans, wheat, oats, ethanol, and corn oil, which are accounted for as derivatives at fair value under ASC 815. These forward sales meet the definition of a derivative under ASC 815 as they have an underlying (e.g. the price of corn), a notional amount (e.g. metric tons), no initial net investment and can be net settled since the commodity is readily convertible to cash. The Company does not apply the normal purchase and normal sale exception available under ASC 815 to these contracts. Revenue from commodity contracts is recognized in Sales and merchandising revenues for the contractually stated amount when the contracts are settled. Settlement of the commodity contracts generally occurs upon shipment or delivery of the product, when title and risks and rewards of ownership transfers to the customer. Prior to settlement, these forward sales contracts are recognized at fair value with the unrealized gains or losses recorded within Cost of sales and merchandising revenues. Additional information about the fair value of the Company's commodity derivatives is presented in Notes 5 and 10 to the Consolidated Financial Statements. There are certain transactions that allow for pricing to occur after title of the goods has passed to the customer. In these cases, the Company continues to report the goods in inventory until it recognizes the sales revenue once the price has been determined. Direct ship commodity sales (where the Company never takes physical possession of the commodity) are recognized based on the terms of the contract. Certain of the Company's operations provide for customer billings, deposits or prepayments for product that is stored at the Company's facilities. The sales and gross profit related to these transactions are not recognized until the product is shipped in accordance with the previously stated revenue recognition policy and these amounts are classified in the Consolidated Balance Sheets as a current liability titled “Customer prepayments and deferred revenue”. Revenue from contracts with customers (ASC 606) |
Income Taxes | Income Taxes Income tax expense for each period includes current tax expense plus deferred expense, which is related to the change in deferred income tax assets and liabilities. Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of assets and liabilities and are measured using enacted tax rates and laws governing periods in which the differences are expected to reverse. The Company evaluates the realizability of deferred tax assets and provides a valuation allowance for amounts that management does not believe are more likely than not to be recoverable, as applicable. The annual effective tax rate is determined by Income tax provision (benefit) from continuing operations as a percentage of Income (loss) before income taxes from continuing operations within the Consolidated Statements of Operations. Differences in the effective tax rate and the statutory tax rate may be due to permanent items, tax credits, foreign tax rates and state tax rates in jurisdictions in which the Company operates, or changes in valuation allowances. The Company records reserves for uncertain tax positions when, despite the belief that tax return positions are fully supportable, it is anticipated that certain tax return positions are likely to be challenged and that the Company may not prevail. These reserves are adjusted for changing facts and circumstances, such as the progress of a tax audit or the lapse of statutes of limitations. |
Employee Benefit Plans | Employee Benefit Plans The Company provides full-time employees hired before January 1, 2003, with postretirement health care benefits. In order to measure the expense and funded status of these employee benefit plans, management makes several estimates and assumptions, including employee turnover rates, anticipated mortality rates and anticipated future healthcare cost trends. These estimates and assumptions are based on the Company's historical experience combined with management's knowledge and understanding of current facts and circumstances. The selection of the discount rate is based on an index given projected plan payouts. |
New Accounting Standards | Recently Adopted Accounting Pronouncements Reference Rate Reform (Topic 848) In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to U.S. GAAP on contract modifications, hedging relationships, and other transactions affected by reference rate reform to ease entities' financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made, hedging relationships entered into, and other transactions affected by reference rate reform, evaluated on or before December 31, 2022, beginning during the reporting period in which the guidance has been elected. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extended the date to December 31, 2024. As of December 31, 2022, the Company does not have any receivables, hedging relationships, lease agreements, or debt agreements that reference LIBOR or another reference rate expected to be discontinued. Therefore, we will not be electing the optional practical expedients associated with this ASU. |
Fair Value Measurements | Level 1 commodity derivatives reflect the fair value of the exchange-traded futures and options contracts that the Company holds, net of the cash collateral that the Company has in its margin account. The majority of the Company’s assets and liabilities measured at fair value are based on the market approach valuation technique. With the market approach, fair value is derived using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s net commodity derivatives primarily consist of futures or options contracts via regulated exchanges and contracts with producers or customers under which the future settlement date and bushels (or gallons in the case of ethanol contracts) of commodities to be delivered (primarily wheat, corn, soybeans and ethanol) are fixed and under which the price may or may not be fixed. Depending on the specifics of the individual contracts, the fair value is derived from the futures or options prices 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. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory, Net [Abstract] | |
Schedule of Major Classes of Inventories | December 31, (in thousands) 2022 2021 Grain and other agricultural products (a) $ 1,326,531 $ 1,427,708 Propane and frac sand (a) 21,084 23,780 Ethanol and co-products (a) 156,341 184,354 Plant nutrients and cob products 227,769 178,696 Total $ 1,731,725 $ 1,814,538 (a) Includes RMI of $1,308.8 million and $1,410.9 million at December 31, 2022 and December 31, 2021, respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant and Equipment | The components of property, plant and equipment are as follows: December 31, (in thousands) 2022 2021 Land $ 38,689 $ 39,162 Land improvements and leasehold improvements 92,084 91,122 Buildings and storage facilities 364,721 368,577 Machinery and equipment 980,159 936,476 Construction in progress 41,429 20,676 1,517,082 1,456,013 Less: accumulated depreciation (754,353) (669,984) Property, plant and equipment, net $ 762,729 $ 786,029 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Debt | The Company’s short-term and long-term debt at December 31, 2022 and 2021 consisted of the following: December 31, (in thousands) 2022 2021 Short-term debt – non-recourse $ 81,475 $ 65,485 Short-term debt – recourse 191,100 436,307 Total short-term debt 272,575 501,792 Current maturities of long-term debt – non-recourse 63,815 7,601 Current maturities of long-term debt – recourse 46,340 24,655 Total current maturities of long-term debt 110,155 32,256 Long-term debt, less: current maturities – non-recourse 414 64,972 Long-term debt, less: current maturities – recourse 492,104 535,515 Total long-term debt, less: current maturities $ 492,518 $ 600,487 |
Schedule of Long-term Debt | December 31, (in thousands, except percentages) 2022 2021 Note payable, variable rate (6.08% at December 31, 2022), payable in increasing amounts plus interest, due 2029 $ 201,524 $ 212,500 Note payable, variable rate (5.96% at December 31, 2022), payable in increasing amounts plus interest, due 2027 135,352 142,500 Note payable, 4.50%, payable at maturity, due 2034 (a) 95,500 99,090 Note payable, 4.85%, payable at maturity, due 2026 25,000 25,000 Note payable, 4.55%, payable at maturity, due 2023 24,000 24,000 Industrial revenue bond, variable rate (4.81% at December 31, 2022), payable at maturity, due 2036 21,000 21,000 Note payable, 4.50%, payable at maturity, due 2030 16,000 16,000 Note payable, 5.00%, payable at maturity, due 2040 14,000 14,000 Finance lease obligations, due serially to 2030 (a) 9,071 10,135 541,447 564,225 Less: current maturities 46,340 24,655 Less: unamortized prepaid debt issuance costs 3,003 4,055 $ 492,104 $ 535,515 The Company's non-recourse long-term debt consists of the following: December 31, (in thousands) 2022 2021 Note payable, variable rate (7.59% at December 31, 2022), payable at maturity, due 2023 (a) $ 63,335 $ 70,000 Finance lease obligations, due serially to 2024 894 2,745 64,229 72,745 Less: current maturities 63,815 7,601 Less: unamortized prepaid debt issuance costs — 172 $ 414 $ 64,972 (a) Debt is collateralized by a first mortgages on the ELEMENT facility and related equipment or other assets with a book value of $128.9 million. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Estimated Fair Value of Company's Commodity Derivative Instruments that Require Cash Collateral | The following table presents a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted or received as collateral as of December 31, 2022 and 2021: (in thousands) December 31, 2022 December 31, 2021 Cash collateral paid $ 64,530 $ 165,250 Fair value of derivatives (10,014) (36,843) Net derivative asset position $ 54,516 $ 128,407 |
Schedule of Fair Value of the Company's Commodity Derivatives in the Balance Sheet | The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities: December 31, 2022 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 325,762 $ 1,796 $ 18,426 $ 686 $ 346,670 Commodity derivative liabilities (94,704) (149) (116,945) (1,484) (213,282) Cash collateral paid 64,530 — — — 64,530 Balance sheet line item totals $ 295,588 $ 1,647 $ (98,519) $ (798) $ 197,918 December 31, 2021 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 339,321 $ 4,677 $ 23,762 $ 1,209 $ 368,969 Commodity derivative liabilities (93,758) (105) (152,673) (2,578) (249,114) Cash collateral paid 165,250 — — — 165,250 Balance sheet line item totals $ 410,813 $ 4,572 $ (128,911) $ (1,369) $ 285,105 |
Schedule of Company's Consolidated Statement of Income Gains and Location of Line Items | The net gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Consolidated Statements of Operations and the line items in which they are located for the years ended December 31, 2022, 2021 and 2020, are as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Gains (losses) on commodity derivatives included in $ 13,533 $ 151,058 $ (36,563) The recording of derivatives gains and losses and the financial statement line item in which they are located are as follows: Year Ended December 31, (in thousands) 2022 2021 2020 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest expense, net $ 123 $ (844) $ (11) Derivatives designated as hedging instruments Interest rate derivative gains (losses) included in Other comprehensive income (loss) 38,564 16,960 (11,497) Interest rate derivative gains (losses) included in Interest expense, net (989) (6,733) (7,982) |
Schedule of Volume of Commodity Derivative Contracts Outstanding | The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) as of December 31, 2022 and 2021: December 31, 2022 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 567,405 — — Soybeans 56,608 — — Wheat 102,716 — — Oats 24,710 — — Ethanol — 178,935 — Soybean meal — — 570 Dried distillers grain — — 449 Other 10,054 44,547 2,029 Subtotal 761,493 223,482 3,048 Exchange traded: Corn 170,280 — — Soybeans 46,380 — — Wheat 111,567 — — Oats 365 — — Ethanol — 94,206 — Propane — 47,208 — Other — 588 581 Subtotal 328,592 142,002 581 Total 1,090,085 365,484 3,629 December 31, 2021 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 685,681 — — Soybeans 77,592 — — Wheat 109,547 — — Oats 31,627 — — Ethanol — 192,447 — Soybean meal — — 544 Dried distillers grain — — 507 Other 57,268 16,092 1,854 Subtotal 961,715 208,539 2,905 Exchange traded: Corn 226,215 — — Soybeans 64,730 — — Wheat 65,020 — — Oats 1,300 — — Ethanol — 100,884 — Propane — 31,542 — Other 75 798 353 Subtotal 357,340 133,224 353 Total 1,319,055 341,763 3,258 |
Schedule of Fair Value of the Company's Interest Rate Derivatives | At December 31, 2022 and 2021, the Company had recorded the following amounts for the fair value of the Company's interest rate and other derivatives: December 31, (in thousands) 2022 2021 Derivatives not designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ — $ (174) Foreign currency contracts included in Other current (liabilities) assets (3,124) (1,069) Derivatives designated as hedging instruments Interest rate contracts included in Other current assets 8,759 — Interest rate contracts included in Other assets 22,641 4,574 Interest rate contracts included in Accrued expenses and other current liabilities — (5,206) Interest rate contracts included in Other long-term liabilities — (6,555) |
Schedule of Open Interest Rate Contracts | The following table presents the open interest rate contracts at December 31, 2022: Interest Rate Hedging Instrument Year Entered Year of Maturity Initial Notional Amount Hedged Item Interest Rate Long-term Swap 2019 2025 $ 100.0 Interest rate component of debt - not accounted for as a hedge 2.3% Swap 2019 2025 50.0 Interest rate component of debt - accounted for as a hedge 2.4% Swap 2019 2025 50.0 Interest rate component of debt - accounted for as a hedge 2.4% 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% Swap 2022 2025 20.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2022 2029 100.0 Interest rate component of debt - accounted for as a hedge 2.0% Swap 2022 2029 50.0 Interest rate component of debt - accounted for as a hedge 2.4% |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Obligation and Funded Status of Pension and Postretirement Plans | Following are the details of the obligation and funded status of the postretirement health care benefit plan: (in thousands) Change in benefit obligation 2022 2021 Benefit obligation at beginning of year $ 23,942 $ 25,324 Service cost 248 302 Interest cost 586 546 Actuarial (gains) losses (6,180) (1,252) Participant contributions 314 271 Benefits paid (1,477) (1,249) Benefit obligation at end of year $ 17,433 $ 23,942 (in thousands) Change in plan assets 2022 2021 Fair value of plan assets at beginning of year $ — $ — Company contributions 1,163 978 Participant contributions 314 271 Benefits paid (1,477) (1,249) Fair value of plan assets at end of year $ — $ — Under funded status of plans at end of year $ (17,433) $ (23,942) |
Schedule of Amounts Recognized in the Consolidated Balance Sheets | Amounts recognized in the Consolidated Balance Sheets at December 31, 2022 and 2021 consist of: (in thousands) 2022 2021 Accrued expenses and other current liabilities $ 1,276 $ 1,359 Other long-term liabilities 16,157 22,583 Net amount recognized $ 17,433 $ 23,942 |
Schedule of Pre-tax Amounts Recognized in Accumulated Other Comprehensive Loss | Following are the details of the amounts recognized in Accumulated other comprehensive income before taxes at December 31, 2022: (in thousands) Unamortized Actuarial Net Gains Unamortized Prior Service Costs Balance at beginning of year $ (5,498) $ 4,098 Amounts arising during the period (6,180) — Amounts recognized as a component of net periodic benefit cost — 911 Balance at end of year $ (11,678) $ 5,009 |
Schedule of Benefits Expected to be Paid for Company's Defined Benefit Plans | The benefits expected to be paid for the postretirement health care benefit plan over the next ten years are as follows: (in thousands) Postretirement Benefits 2023 $ 1,276 2024 1,285 2025 1,299 2026 1,308 2027 1,300 2028-2032 6,371 |
Schedule of Components of Net Periodic Benefit Costs | Following are components of the net periodic benefit cost for each year: December 31, (in thousands) 2022 2021 2020 Service cost $ 248 $ 302 $ 221 Interest cost 586 546 719 Expected return on plan assets (911) (911) (911) Recognized net actuarial loss — 169 79 Net periodic benefit (gain) cost $ (77) $ 106 $ 108 |
Schedule of Weighted Average Assumptions of Pension and Postretirement Benefits | Following are weighted-average assumptions of the postretirement health care benefit plan for each year: 2022 2021 2020 Used to Determine Benefit Obligations at Measurement Date Discount rate 4.9 % 2.6 % 2.2 % Used to Determine Net Periodic Benefit Cost for Years ended December 31 Discount rate 2.6 % 2.2 % 3.0 % Expected long-term return on plan assets — — — Rate of compensation increases — — — |
Schedule of Assumed Health Care Cost Trend Rate at Beginning of Year | Assumed Health Care Cost Trend Rates at Beginning of Year 2022 2021 Health care cost trend rate assumed for next year 3.0 % 3.0 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (a) N/A N/A Year that the rate reaches the ultimate trend rate (a) N/A N/A (a) In 2017, the Company's remaining uncapped participants were converted to a Medicare Exchange Health Reimbursement Arrangement, which put a 2% cap on the Company's share of the related costs. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Breakdown of Revenues between ASC 606 | The breakdown of revenues between ASC 606 and ASC 815 is as follows: Year ended December 31, (in thousands) 2022 2021 2020 Revenues under ASC 606 $ 3,036,852 $ 2,211,537 $ 1,479,686 Revenues under ASC 815 14,288,532 10,400,513 6,584,934 Total revenues $ 17,325,384 $ 12,612,050 $ 8,064,620 |
Schedule of Disaggregation of Revenues | The following tables disaggregate revenues under ASC 606 by major product line: Year ended December 31, 2022 (in thousands) Trade Renewables Plant Nutrient Total Specialty nutrients $ — $ — $ 355,636 $ 355,636 Primary nutrients — — 625,134 625,134 Products and co-products 396,613 1,219,972 — 1,616,585 Propane 264,072 — — 264,072 Other 50,966 5,921 118,538 175,425 Total $ 711,651 $ 1,225,893 $ 1,099,308 $ 3,036,852 Year ended December 31, 2021 (in thousands) Trade Renewables Plant Nutrient Total Specialty nutrients $ — $ — $ 270,842 $ 270,842 Primary nutrients — — 500,891 500,891 Products and co-products 313,195 714,120 — 1,027,315 Propane 246,002 — — 246,002 Other 64,557 6,768 95,162 166,487 Total $ 623,754 $ 720,888 $ 866,895 $ 2,211,537 Year ended December 31, 2020 (in thousands) Trade Renewables Plant Nutrient Total Specialty nutrients $ — $ — $ 234,806 $ 234,806 Primary nutrients — — 396,515 396,515 Products and co-products 234,219 408,677 — 642,896 Propane 122,580 — — 122,580 Other 49,193 2,057 31,638 82,888 Total $ 405,992 $ 410,734 $ 662,959 $ 1,479,685 |
Schedule of Opening and Closing Balances of Company's Contract Assets and Liabilities | The opening and closing balances of the Company’s contract liabilities are as follows: (in thousands) 2022 2021 Balance at January 1 $ 100,847 $ 45,634 Balance at December 31 55,408 100,847 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | Income tax provision (benefit) from continuing operations consists of the following: Year ended December 31, (in thousands) 2022 2021 2020 Current: Federal $ 38,801 $ 23,333 $ (42,718) State and local 13,541 4,934 (748) Foreign 4,741 760 6,731 57,083 29,027 (36,735) Deferred: Federal (13,425) (3,687) 28,665 State and local (6,775) 819 1,180 Foreign 2,745 3,069 (4,020) (17,455) 201 25,825 Total: Federal 25,376 19,646 (14,053) State and local 6,766 5,753 432 Foreign 7,486 3,829 2,711 $ 39,628 $ 29,228 $ (10,910) |
Components of Income Before Income Taxes | Income (loss) before income taxes from continuing operations consists of the following: Year ended December 31, (in thousands) 2022 2021 2020 U.S. $ 173,810 $ 143,712 $ (38,319) Foreign 20,772 17,058 11,238 $ 194,582 $ 160,770 $ (27,081) |
Schedule of Effective Tax Rate Reconciliation | A reconciliation from the statutory U.S. federal tax rate to the effective tax rate follows: Year ended December 31, 2022 2021 2020 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in rate resulting from: State and local income taxes, net of related federal taxes 2.4 2.5 0.5 Federal tax rate differential (0.3) 0.4 (2.1) U.S. tax rate change and other tax law impacts (a) 0.4 0.5 56.2 Effect of noncontrolling interest (3.9) (4.2) (17.0) Derivative instruments and hedging activities (1.3) 0.4 (11.8) U.S. income taxes on foreign earnings (0.1) 0.7 (1.8) Nondeductible compensation 1.2 1.9 (5.5) Unrecognized tax benefits 8.0 2.1 (72.2) Valuation allowance 0.7 0.1 (1.9) Foreign tax credits (2.1) (1.3) (0.5) Research and development and other tax credits (7.0) (5.0) 75.6 Equity method investments 0.8 (0.6) (0.1) Other, net 0.6 (0.3) (0.1) Effective tax rate 20.4 % 18.2 % 40.3 % (a) Reflects the impact of the CARES Act which provided a financial statement benefit of $14.8 million in 2020. |
Schedule of Deferred Tax Liabilities and Assets | Significant components of the Company's deferred tax liabilities and assets are as follows: December 31, (in thousands) 2022 2021 Deferred tax liabilities: Property, plant and equipment $ (58,273) $ (66,913) Operating lease right-of-use assets (9,370) — Identifiable intangibles (6,802) (7,022) Investments (34,604) (35,842) Derivative Instruments (7,911) — Other (5,160) (3,859) (122,120) (113,636) Deferred tax assets: Employee benefits 28,859 27,695 Accounts and notes receivable 6,726 2,189 Inventory 10,272 4,533 Federal income tax credits 1,914 2,292 Net operating loss carryforwards 1,740 2,906 Derivative instruments — 1,774 Operating lease liability 9,526 — Other 7,118 5,490 Total deferred tax assets 66,155 46,879 less: Valuation allowance 3,834 2,834 62,321 44,045 Net deferred tax liabilities (a) $ (59,799) $ (69,591) (a) The Company had deferred tax assets of $4.3 million and $1.5 million included in Other assets in the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively. |
Schedule of Unrecognized Tax Benefits Excluding Interest and Penalties | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (in thousands) 2022 2021 2020 Balance at beginning of period $ 51,754 $ 44,401 $ 22,415 Tax positions related to the current year Gross additions 8,074 13,179 11,598 Tax positions related to prior years Gross additions 19,434 1,364 12,013 Gross reductions — (7,190) (1,566) Lapse in statute of limitations — — (59) Balance at end of period $ 79,262 $ 51,754 $ 44,401 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 ("AOCI") for the years ended December 31, 2022 and 2021: Year ended December 31, (in thousands) 2022 2021 Currency Translation Adjustment Beginning balance $ 5,631 $ 5,739 Other comprehensive income (loss) before reclassifications (13,834) (108) Tax effect — — Other comprehensive income (loss), net of tax (13,834) (108) Ending Balance $ (8,203) $ 5,631 Cash Flow Hedges Beginning balance $ (5,335) $ (18,106) Other comprehensive income (loss) before reclassifications 37,575 8,105 Amounts reclassified from AOCI (a) 989 8,855 Tax effect (9,683) (4,189) Other comprehensive income (loss), net of tax 28,881 12,771 Ending Balance $ 23,546 $ (5,335) Pension and Other Postretirement Plans Beginning balance $ 640 $ 33 Other comprehensive income (loss) before reclassifications 6,492 1,699 Amounts reclassified from AOCI (b) (911) (911) Tax effect (1,338) (181) Other comprehensive income (loss), net of tax 4,243 607 Ending Balance $ 4,883 $ 640 Investments in Convertible Preferred Securities Beginning balance $ 258 $ 258 Other comprehensive income (loss), net of tax — — Ending Balance $ 258 $ 258 Total AOCI Ending Balance $ 20,484 $ 1,194 (a) Amounts reclassified from gain (loss) on cash flow hedges are reclassified from AOCI to the Consolidated Statements of Operations when the hedged item affects earnings and is recognized in Interest expense, net. See Note 5 for additional information. (b) This AOCI component is included in the computation of net periodic benefit cost recorded in Operating, administrative and general expenses. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Reconciliation of 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 recurring fair value measurements using Level 3 inputs is as follows: Convertible Preferred Securities (in thousands) 2022 2021 Assets at January 1, $ 11,618 $ 8,849 Additional investments 4,655 5,401 Gains (losses) included in Other income, net 5 (2,632) Assets at December 31, $ 16,278 $ 11,618 |
Schedule of 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 December 31, 2022 and 2021: (in thousands) December 31, 2022 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 54,516 $ 143,402 $ — $ 197,918 Provisionally priced contracts (b) (20,960) (115,377) — (136,337) Convertible preferred securities (c) — — 16,278 16,278 Other assets and liabilities (d) (209) 31,400 — 31,191 Total $ 33,347 $ 59,425 $ 16,278 $ 109,050 (in thousands) December 31, 2021 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 128,407 $ 156,698 $ — $ 285,105 Provisionally priced contracts (b) 43,944 (89,797) — (45,853) Convertible preferred securities (c) — — 11,618 11,618 Other assets and liabilities (d) 2,784 (7,361) — (4,577) Total $ 175,135 $ 59,540 $ 11,618 $ 246,293 (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 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). |
Schedule of Summarized Information About Level 3 Fair Value Measurements | The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of December 31, 2022 and 2021: Quantitative Information about Recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of 12/31/2022 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 16,278 Implied based on market prices N/A N/A (in thousands) Fair Value as of 12/31/2021 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 11,618 Implied based on market prices N/A N/A (a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points. Quantitative Information about Non-Recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of 12/31/2022 Valuation Method Unobservable Input Weighted Average Grain assets (a) $ 9,000 Third party appraisal Various N/A (in thousands) Fair Value as of 12/31/2021 Valuation Method Unobservable Input Weighted Average Frac sand assets (b) $ 2,946 Third party appraisal Various N/A Real property (c) 700 Market approach Various N/A (a) The Company recognized impairment charges on a Nebraska grain asset. The fair value of the asset was determined using third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis. (b) The Company recognized impairment charges on long lived assets related to its frac sand business. The fair value of the assets were determined using prior transactions and third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis. (c) The Company recognized impairment charges on certain Trade assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets were determined using prior transactions in the local market and a recent sale of comparable Trade segment assets. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: Year Ended December 31, (in thousands) 2022 2021 2020 Sales of products $ 398,390 $ 342,816 $ 176,768 Purchases of products 76,479 44,182 52,665 December 31, (in thousands) 2022 2021 Accounts receivable $ 12,272 $ 9,984 Accounts payable 7,070 6,034 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of 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. Year Ended December 31, (in thousands) 2022 2021 2020 Revenues from external customers Trade $ 13,047,537 $ 9,304,357 $ 6,141,402 Renewables 3,178,539 2,440,798 1,260,259 Plant Nutrient 1,099,308 866,895 662,959 Total $ 17,325,384 $ 12,612,050 $ 8,064,620 Year Ended December 31, (in thousands) 2022 2021 2020 Interest expense (income) Trade $ 42,551 $ 23,688 $ 21,974 Renewables 8,775 7,602 7,461 Plant Nutrient 7,298 4,355 5,805 Other (1,775) 1,647 (1,456) Total $ 56,849 $ 37,292 $ 33,784 Year Ended December 31, (in thousands) 2022 2021 2020 Other income, net Trade $ 12,661 $ 35,878 $ 12,592 Renewables 20,731 3,200 2,795 Plant Nutrient 3,001 2,128 1,274 Other (2,570) (3,768) 1,540 Total $ 33,823 $ 37,438 $ 18,201 Year Ended December 31, (in thousands) 2022 2021 2020 Income (loss) before income taxes from continuing operations Trade $ 95,225 $ 87,946 $ 24,687 Renewables (a) 108,221 81,205 (47,338) Plant Nutrient 39,162 42,615 16,015 Other (48,026) (50,996) (20,445) Income (loss) before income taxes from continuing operations $ 194,582 $ 160,770 $ (27,081) (a) Includes income (loss) attributable to noncontrolling interests of $35.9 million, $31.9 million and $(21.9) million for the years ended December 31, 2022, 2021 and 2020, respectively. December 31, (in thousands) 2022 2021 Identifiable assets Trade $ 3,166,813 $ 3,115,045 Renewables 835,860 784,031 Plant Nutrient 527,725 453,137 Other 74,727 152,952 Total assets of continuing operations 4,605,125 4,505,165 Assets of discontinued operations 2,871 64,054 Total $ 4,607,996 $ 4,569,219 Year Ended December 31, (in thousands) 2022 2021 2020 Capital expenditures Trade $ 29,433 $ 17,828 $ 14,911 Renewables 42,734 28,502 39,791 Plant Nutrient 34,678 21,616 16,565 Other 1,439 3,828 1,458 Total $ 108,284 $ 71,774 $ 72,725 Year Ended December 31, (in thousands) 2022 2021 2020 Depreciation and amortization Trade $ 35,953 $ 44,335 $ 44,627 Renewables 63,458 77,542 73,224 Plant Nutrient 26,634 25,957 25,407 Other 8,697 9,340 9,807 Total from continuing operations 134,742 157,174 153,065 Discontinued operations — 21,760 35,573 Total $ 134,742 $ 178,934 $ 188,638 Year Ended December 31, (in thousands) 2022 2021 2020 Revenues from external customers by geographic region United States $ 12,503,330 $ 9,771,502 $ 6,180,376 Canada 1,199,487 806,481 517,006 Egypt 573,371 73,654 8,136 Mexico 493,111 490,672 246,523 Switzerland 373,737 487,363 348,867 Other 2,182,348 982,378 763,712 Total $ 17,325,384 $ 12,612,050 $ 8,064,620 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost, Weighted Average Remaining Term and Discount Rate and Supplemental Cash Flow Information Related to Leases | The following table summarizes the amounts recognized in the Company's Consolidated Balance Sheets related to leases: December 31, (in thousands) Consolidated Balance Sheet Classification 2022 2021 Assets Operating lease assets Right of use assets, net $ 61,890 $ 52,146 Finance lease assets Property, plant and equipment, net 21,359 23,895 Total leased assets 83,249 76,041 Liabilities Current operating leases Accrued expenses and other current liabilities 25,364 19,580 Non-current operating leases Long-term lease liabilities 37,147 31,322 Total operating lease liabilities 62,511 50,902 Current finance leases Current maturities of long-term debt 1,565 2,118 Non-current finance leases Long-term debt, less current maturities 8,400 10,762 Total finance lease liabilities 9,965 12,880 Total lease liabilities $ 72,476 $ 63,782 The components of lease cost recognized within the Company's Consolidated Statement of Operations were as follows: Year Ended December 31, (in thousands) Consolidated Statement of Operations Classification 2022 2021 2020 Lease cost: Operating lease cost Cost of sales and merchandising revenues $ 19,891 $ 13,016 $ 10,968 Operating lease cost Operating, administrative and general expenses 10,132 10,324 10,678 Finance lease cost Amortization of right-of-use assets Cost of sales and merchandising revenues 614 978 932 Amortization of right-of-use assets Operating, administrative and general expenses 1,009 1,008 1,008 Interest expense on lease liabilities Interest expense, net 413 679 859 Short-term lease cost Cost of sales and merchandising revenues 2,465 1,349 66 Variable lease cost Cost of sales and merchandising revenues 338 458 80 Variable lease cost Operating, administrative and general expenses 394 231 260 Total lease cost $ 35,256 $ 28,043 $ 24,851 The Company often has the option to renew lease terms for buildings and other assets. The exercise of a lease renewal option is generally at the sole discretion of the Company. In addition, certain lease agreements may be terminated prior to their original expiration date at the discretion of the Company. Each renewal and termination option is evaluated at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The following table summarizes the weighted-average remaining lease terms: As of December 31, Weighted-Average Remaining Lease Term 2022 2021 Operating leases 3.9 years 3.9 years Finance leases 6.9 years 7.2 years The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The following table summarizes the weighted-average discount rate used to measure the Company's lease liabilities: As of December 31, Weighted-Average Discount Rate 2022 2021 Operating leases 3.44 % 2.63 % Finance leases 3.35 % 3.30 % Supplemental Cash Flow Information Related to Leases Year Ended December 31, (in thousands) 2022 2021 2020 Cash paid for amounts included in the Operating cash flows from operating leases $ 30,294 $ 29,304 $ 28,444 Operating cash flows from finance leases — — 1,289 Financing cash flows from finance leases 1,782 12,538 4,115 Right-of-use assets obtained in exchange for lease obligations: Operating leases 36,056 35,024 15,160 Finance leases — 364 4,972 |
Schedule of Maturity Analysis of Operating Lease Liabilities | Maturity Analysis of Leases Liabilities December 31, 2022 (in thousands) Operating Leases Finance Leases Total 2023 $ 28,108 $ 1,889 $ 29,997 2024 17,326 1,768 19,094 2025 9,801 1,406 11,207 2026 5,142 1,384 6,526 2027 1,629 1,391 3,020 Thereafter 5,507 3,382 8,889 Total lease payments 67,513 11,220 78,733 Less: interest 5,002 1,255 6,257 Total $ 62,511 $ 9,965 $ 72,476 December 31, 2021 (in thousands) Operating Leases Finance Leases Total 2022 $ 20,639 $ 2,521 $ 23,160 2023 13,797 2,305 16,102 2024 8,121 2,175 10,296 2025 4,974 1,406 6,380 2026 2,434 1,384 3,818 Thereafter 3,881 4,773 8,654 Total lease payments 53,846 14,564 68,410 Less: interest 2,944 1,684 4,628 Total $ 50,902 $ 12,880 $ 63,782 |
Schedule of Maturity Analysis of Finance Lease Liabilities | Maturity Analysis of Leases Liabilities December 31, 2022 (in thousands) Operating Leases Finance Leases Total 2023 $ 28,108 $ 1,889 $ 29,997 2024 17,326 1,768 19,094 2025 9,801 1,406 11,207 2026 5,142 1,384 6,526 2027 1,629 1,391 3,020 Thereafter 5,507 3,382 8,889 Total lease payments 67,513 11,220 78,733 Less: interest 5,002 1,255 6,257 Total $ 62,511 $ 9,965 $ 72,476 December 31, 2021 (in thousands) Operating Leases Finance Leases Total 2022 $ 20,639 $ 2,521 $ 23,160 2023 13,797 2,305 16,102 2024 8,121 2,175 10,296 2025 4,974 1,406 6,380 2026 2,434 1,384 3,818 Thereafter 3,881 4,773 8,654 Total lease payments 53,846 14,564 68,410 Less: interest 2,944 1,684 4,628 Total $ 50,902 $ 12,880 $ 63,782 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Shares | A summary of the status of the Company's non-vested RSUs as of December 31, 2022, and changes during the period then ended, is presented below: Shares (in thousands) Weighted-Average Grant-Date Fair Value Non-vested at January 1, 2022 388 $ 27.75 Granted 130 43.38 Vested (260) 29.99 Forfeited (6) 33.22 Non-vested at December 31, 2022 252 $ 32.79 Year ended December 31, 2022 2021 2020 Total fair value of shares vested (in thousands) $ 7,465 $ 9,453 $ 13,510 Weighted-average fair value of RSUs granted $ 43.38 $ 26.86 $ 18.35 |
Schedule of Nonvested PSUs | A summary of the status of the Company's EPS PSUs as of December 31, 2022, and changes during the period then ended, is presented below: Shares (in thousands) Weighted-Average Grant-Date Fair Value Non-vested at January 1, 2022 386 $ 23.69 Granted 107 43.98 Vested (25) 25.73 Forfeited (71) 27.51 Non-vested at December 31, 2022 397 $ 28.35 Year ended December 31, 2022 2021 2020 Weighted-average fair value of EPS PSUs granted $ 43.98 $ 26.80 $ 19.06 A summary of the status of the Company's TSR PSUs as of December 31, 2022, and changes during the period then ended, is presented below: Shares (in thousands) Weighted-Average Grant-Date Fair Value Non-vested at January 1, 2022 386 $ 30.89 Granted 106 66.90 Vested — — Forfeited (95) 48.27 Non-vested at December 31, 2022 397 $ 36.31 Year ended December 31, 2022 2021 2020 Weighted-average fair value of TSR PSUs granted $ 66.90 $ 35.66 $ 16.80 |
Schedule of Valuation Assumptions Used to Determine Fair Value | 2022 Risk free interest rate 1.44% Dividend yield —% Volatility factor of the expected market price of the common shares 53% Expected term (in years) 2.83 Correlation coefficient 0.45 |
Schedule of Fair Value of the Option Component of the ESP Plan | Year ended December 31, 2022 2021 2020 Risk free interest rate 0.39 % 0.10 % 1.59 % Dividend yield 1.82 % 2.86 % 2.71 % Volatility factor of the expected market price of the common shares 38 % 72 % 36 % Expected life for the options (in years) 1.0 1.0 1.0 |
Discontinued Operation (Tables)
Discontinued Operation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The table below summarizes the results of the Rail Leasing business and the Rail Repair business for the years ended December 31, 2022, 2021 and 2020, which are reflected in the Consolidated Statements of Operations as Income from discontinued operations, net of income taxes: Year ended December 31, (in thousands) 2022 2021 2020 Sales and merchandising revenues $ 25,121 $ 116,787 $ 143,816 Cost of sales and merchandising revenues 26,244 88,393 105,091 Gross profit (loss) (1,123) 28,394 38,725 Operating, administrative and general expenses 3,968 12,350 21,512 Asset impairment 2,818 626 — Interest expense, net — 8,783 17,491 Other income, net 33,046 1,020 2,885 Income from discontinued operations before income taxes 25,137 7,655 2,607 Income tax provision from discontinued operations 13,112 3,331 651 Income from discontinued operations, net of income taxes $ 12,025 $ 4,324 $ 1,956 The following table summarizes the assets and liabilities which are classified as held-for-sale in the Consolidated Balance Sheets as of December 31, 2022 and 2021. (in thousands) December 31, December 31, Assets Current assets: Accounts receivable, net $ — $ 12,643 Inventories — 6,739 Other current assets 2,871 1,503 Current assets held-for-sale 2,871 20,885 Other assets: Rail assets leased to others, net — 458 Property, plant and equipment, net — 17,280 Goodwill — 4,167 Other intangible assets, net — 24 Right of use assets, net — 20,999 Other assets, net — 241 Non-current assets held-for-sale — 43,169 Total assets held-for-sale $ 2,871 $ 64,054 Liabilities Current liabilities: Trade and other payables $ — $ 2,546 Short-term lease liabilities — 4,672 Accrued expenses and other current liabilities — 6,161 Current liabilities held-for-sale — 13,379 Long-term lease liabilities — 16,119 Non-current liabilities held-for-sale — 16,119 Total liabilities held-for-sale $ — $ 29,498 The following table summarizes cash flow information relating to discontinued operations for the years ended December 31, 2022, 2021 and 2020, respectively: Year Ended December 31, (in thousands) 2022 2021 2020 Depreciation and amortization $ — $ 21,760 $ 35,573 Rail capital expenditures (31,458) (8,669) (32,161) Proceeds from sale of Rail assets 36,706 19,150 10,077 Loss (gain) on sale of discontinued operations (27,091) 1,491 — Non-cash operating activities - gain on sale of railcars (5,463) (5,603) (649) Non-cash operating activities - asset impairment 2,818 626 — Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end — — 491 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of goodwill | The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2022, 2021 and 2020 are as follows: (in thousands) Trade Renewables Plant Nutrient Total Balance at January 1, 2020 $ 127,781 $ 2,726 $ 686 $ 131,193 Acquisitions — 349 — 349 Reorganization (5,714) 5,714 — — Balance at December 31, 2020 122,067 8,789 686 131,542 Disposals (a) (2,200) — — (2,200) Acquisitions — — — — Balance at December 31, 2021 119,867 8,789 686 129,342 Acquisitions — — — — Balance at December 31, 2022 $ 119,867 $ 8,789 $ 686 $ 129,342 |
Schedule of Intangible Assets Included in Other Assets | The Company's other intangible assets are as follows: December 31, 2022 2021 (in thousands) Useful Life Original Cost Accumulated Amortization Net Book Value Original Cost Accumulated Amortization Net Book Value Intangible asset class Customer lists 3 to 10 $ 143,081 $ 70,539 $ 72,542 $ 136,311 $ 58,047 $ 78,264 Non-compete agreements 1 to 7 22,242 21,311 931 21,796 21,124 672 Supply agreement 10 to 10 8,720 7,912 808 8,721 7,450 1,271 Technology 10 to 10 13,400 10,218 3,182 13,400 8,878 4,522 Trademarks and patents 7 to 10 15,810 13,165 2,645 15,810 12,020 3,790 Software 2 to 10 88,631 68,392 20,239 89,956 61,920 28,036 Other 3 to 5 998 438 560 1,011 429 582 $ 292,882 $ 191,975 $ 100,907 $ 287,005 $ 169,868 $ 117,137 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The following table sets forth the items in Other income, net for the periods presented below: Year ended December 31, (in thousands) 2022 2021 2020 Biofuel Producer Program funds $ 17,642 $ — $ — Insurance proceeds 10,632 3,850 2,917 Gain on sales of assets and businesses 3,979 14,661 1,307 Equity earnings (losses) in affiliates (5,671) 4,842 638 Other 7,241 14,085 13,339 Total $ 33,823 $ 37,438 $ 18,201 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (in thousands except per common share data) Year Ended December 31, 2022 2021 2020 Numerator: Net income (loss) from continuing operations $ 154,954 $ 131,542 $ (16,171) Net income (loss) attributable to noncontrolling interests (a) 35,899 31,880 (21,925) Net income attributable to The Andersons Inc. common shareholders from continuing operations $ 119,055 $ 99,662 $ 5,754 Income from discontinued operations, net of income taxes $ 12,025 $ 4,324 $ 1,956 Denominator: Weighted-average shares outstanding – basic 33,731 33,279 32,924 Effect of dilutive awards 691 576 265 Weighted-average shares outstanding – diluted 34,422 33,855 33,189 Earnings per share attributable to The Andersons, Inc. common shareholders: Basic earnings: Continuing operations $ 3.53 $ 2.99 $ 0.17 Discontinued operations 0.36 0.13 0.06 $ 3.89 $ 3.12 $ 0.23 Diluted earnings: Continuing operations $ 3.46 $ 2.94 $ 0.17 Discontinued operations 0.35 0.13 0.06 $ 3.81 $ 3.07 $ 0.23 (a) All Net income (loss) attributable to noncontrolling interests is within the continuing operations of the Company. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | Mar. 02, 2018 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Maximum period in which contracts for the sale of grain to processors or other consumers extend | 1 year | |||
Marketing agreement, increase (decrease) in revenue | $ 0 | |||
Decrease in retained earnings | $ (807,770) | $ (702,759) | ||
Element LLC | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Noncontrolling interest ownership percentage by parent | 51% | |||
Impairment recoverability test, threshold percentage over carrying value | 15% | |||
Minimum | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Intangible assets estimated useful life | 1 year | |||
Maximum | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Intangible assets estimated useful life | 10 years | |||
Land Improvements | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Asset estimated average useful life | 16 years | |||
Leasehold Improvements | Minimum | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Asset estimated average useful life | 3 years | |||
Leasehold Improvements | Maximum | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Asset estimated average useful life | 20 years | |||
Buildings and Storage Facilities | Minimum | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Asset estimated average useful life | 10 years | |||
Buildings and Storage Facilities | Maximum | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Asset estimated average useful life | 40 years | |||
Machinery and Equipment | Minimum | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Asset estimated average useful life | 3 years | |||
Machinery and Equipment | Maximum | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Asset estimated average useful life | 20 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory [Line Items] | ||||
Agricultural Related Inventory | $ 1,326,531 | $ 1,326,531 | $ 1,427,708 | |
Frac sand and propane | 21,084 | 21,084 | 23,780 | |
Ethanol and co-products | 156,341 | 156,341 | 184,354 | |
Plant nutrients and cob products | 227,769 | 227,769 | 178,696 | |
Total inventories | 1,731,725 | 1,731,725 | 1,814,538 | |
Damaged inventory | 17,328 | 0 | $ 0 | |
Michigan Grain Asset | ||||
Inventory [Line Items] | ||||
Damaged inventory | 16,200 | |||
Readily Marketable Inventory | ||||
Inventory [Line Items] | ||||
Agricultural Related Inventory | $ 1,308,800 | $ 1,308,800 | $ 1,410,900 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Components of property, plant and equipment | ||
Land | $ 38,689 | $ 39,162 |
Land improvements and leasehold improvements | 92,084 | 91,122 |
Buildings and storage facilities | 364,721 | 368,577 |
Machinery and equipment | 980,159 | 936,476 |
Construction in progress | 41,429 | 20,676 |
Property, plant and equipment, gross | 1,517,082 | 1,456,013 |
Less: accumulated depreciation | (754,353) | (669,984) |
Property, plant and equipment, net | $ 762,729 | $ 786,029 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Textual) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Capitalized interest | $ 0 | $ 0 | |||
Depreciation expense | 110,600 | $ 126,900 | $ 122,400 | ||
Non-cash operating activities - asset impairment | $ 2,818 | $ 626 | $ 0 | ||
Trade | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of property, plant and equipment held for use | $ 600 | ||||
Nebraska Grain Asset | Trade | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of property, plant and equipment held for use | $ 9,000 | ||||
Frac Sand Assets | Trade | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of property, plant and equipment held for use | $ 7,700 |
Debt (Short-term and Long-term)
Debt (Short-term and Long-term) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 272,575 | $ 501,792 |
Current maturities of long-term debt | 110,155 | 32,256 |
Less: current maturities | 110,155 | 32,256 |
Long-term debt, less current maturities | 492,518 | 600,487 |
Total long-term debt, less: current maturities | 492,518 | 600,487 |
Non-recourse | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 81,475 | 65,485 |
Current maturities of long-term debt | 63,815 | 7,601 |
Less: current maturities | 63,815 | 7,601 |
Long-term debt, less current maturities | 414 | 64,972 |
Recourse | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 191,100 | 436,307 |
Current maturities of long-term debt | 46,340 | 24,655 |
Less: current maturities | 46,340 | 24,655 |
Long-term debt, less current maturities | $ 492,104 | $ 535,515 |
Debt (Textual) (Details)
Debt (Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 27, 2022 | Mar. 28, 2022 | Mar. 09, 2022 | Mar. 02, 2022 | Jan. 11, 2019 | |
Debt Instrument [Line Items] | |||||||||
Current line of credit | $ 272,575 | $ 501,792 | |||||||
Payments of short-term debt | $ 200,000 | 550,000 | 408,250 | $ 0 | |||||
Current maturities of long-term debt | 110,155 | 32,256 | |||||||
Interest paid | $ 56,700 | $ 38,200 | $ 33,900 | ||||||
Short-term debt, weighted average interest rate | 5.67% | 1.49% | |||||||
Non-recourse | |||||||||
Debt Instrument [Line Items] | |||||||||
Current maturities of long-term debt | $ 63,300 | ||||||||
Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 450,000 | $ 450,000 | $ 250,000 | ||||||
Current line of credit | 350,000 | ||||||||
Estimated fair value | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of long-term debt | 595,700 | $ 650,700 | |||||||
Short Term Revolving Credit Agreement, Due August 2022 | Line of Credit | Revolving Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 450,000 | ||||||||
Recourse | |||||||||
Debt Instrument [Line Items] | |||||||||
Current maturities of long-term debt | 46,340 | 24,655 | |||||||
Aggregate annual maturities of long term debt, year one | 46,300 | ||||||||
Aggregate annual maturities of long term debt, year two | 22,600 | ||||||||
Aggregate annual maturities of long term debt, year three | 22,800 | ||||||||
Aggregate annual maturities of long term debt, year four | 48,000 | ||||||||
Aggregate annual maturities of long term debt, year five | 123,400 | ||||||||
Aggregate annual maturities of long term debt thereafter | 278,300 | ||||||||
Non-recourse | |||||||||
Debt Instrument [Line Items] | |||||||||
Current maturities of long-term debt | 63,815 | $ 7,601 | |||||||
Aggregate annual maturities of long term debt, year one | 63,800 | ||||||||
Aggregate annual maturities of long term debt, year two | 400 | ||||||||
Notes Payable | Long Term Note Due 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 140,600 | ||||||||
Notes Payable | Long Term Note Due 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | 209,400 | ||||||||
Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 1,990,800 | ||||||||
Unused capacity | $ 1,659,600 | ||||||||
Line of Credit | Revolving Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 1,550,000 | $ 900,000 |
Debt (Recourse Debt) (Details)
Debt (Recourse Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term debt | ||
Less: current maturities | $ 110,155 | $ 32,256 |
Recourse | ||
Long-term debt | ||
Long-term debt, gross | 541,447 | 564,225 |
Less: current maturities | 46,340 | 24,655 |
Less: unamortized prepaid debt issuance costs | 3,003 | 4,055 |
Long-term debt, less current maturities | 492,104 | 535,515 |
Collateralized debt book value | $ 56,600 | |
Recourse | Note payable, variable rate | ||
Long-term debt | ||
Interest rate of debt instruments | 6.08% | |
Long-term debt, gross | $ 201,524 | 212,500 |
Recourse | Note payable, variable rate (5.96% at December 31, 2022), payable in increasing amounts plus interest, due 2027 | ||
Long-term debt | ||
Interest rate of debt instruments | 5.96% | |
Long-term debt, gross | $ 135,352 | 142,500 |
Recourse | Note payable, 4.50%, payable at maturity, due 2034 | ||
Long-term debt | ||
Interest rate of debt instruments | 4.50% | |
Long-term debt, gross | $ 95,500 | 99,090 |
Recourse | Note payable, 4.85%, payable at maturity, due 2026 | ||
Long-term debt | ||
Interest rate of debt instruments | 4.85% | |
Long-term debt, gross | $ 25,000 | 25,000 |
Recourse | Note payable, 4.55%, payable at maturity, due 2023 | ||
Long-term debt | ||
Interest rate of debt instruments | 4.55% | |
Long-term debt, gross | $ 24,000 | 24,000 |
Recourse | Industrial revenue bond, variable rate (4.81% at December 31, 2022), payable at maturity, due 2036 | ||
Long-term debt | ||
Interest rate of debt instruments | 4.81% | |
Long-term debt, gross | $ 21,000 | 21,000 |
Recourse | Note payable, 4.50%, payable at maturity, due 2030 | ||
Long-term debt | ||
Interest rate of debt instruments | 4.50% | |
Long-term debt, gross | $ 16,000 | 16,000 |
Recourse | Note payable, 5.00%, payable at maturity, due 2040 | ||
Long-term debt | ||
Interest rate of debt instruments | 5% | |
Long-term debt, gross | $ 14,000 | 14,000 |
Recourse | Finance lease obligations, due serially to 2030 | ||
Long-term debt | ||
Long-term debt, gross | $ 9,071 | $ 10,135 |
Debt (Non-recourse Debt) (Detai
Debt (Non-recourse Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Less: current maturities | $ 110,155 | $ 32,256 |
Non-recourse | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 64,229 | 72,745 |
Less: current maturities | 63,815 | 7,601 |
Less: unamortized prepaid debt issuance costs | 0 | 172 |
Long-term debt, less current maturities | 414 | 64,972 |
Collateralized debt book value | $ 128,900 | |
Non-recourse | Note payable, variable rate | ||
Debt Instrument [Line Items] | ||
Interest rate of debt instruments | 7.59% | |
Long-term debt, gross | $ 63,335 | 70,000 |
Non-recourse | Finance lease obligations, due serially to 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 894 | $ 2,745 |
Derivatives (Textual) (Details)
Derivatives (Textual) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum period in which contracts for the sale of grain to processors or other consumers extend | 1 year |
Derivatives (Fair Value of Comm
Derivatives (Fair Value of Commodity Derivatives with Cash Collateral) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | ||
Net derivative asset position, Collateral paid | $ 64,530 | $ 165,250 |
Commodity derivative assets | (10,014) | (36,843) |
Net derivative asset position, net | $ 54,516 | $ 128,407 |
Derivatives (Current and Noncur
Derivatives (Current and Noncurrent Derivative Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets - current | $ 295,588 | $ 410,813 |
Commodity derivative liabilities - current | (98,519) | (128,911) |
Commodity Contract | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 346,670 | 368,969 |
Commodity derivative liabilities | (213,282) | (249,114) |
Cash collateral paid | 64,530 | 165,250 |
Total | 197,918 | 285,105 |
Commodity Contract | Commodity derivative assets - current | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 325,762 | 339,321 |
Commodity derivative liabilities | (94,704) | (93,758) |
Cash collateral paid | 64,530 | 165,250 |
Commodity derivative assets - current | 295,588 | 410,813 |
Commodity Contract | Commodity derivative assets - noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 1,796 | 4,677 |
Commodity derivative liabilities | (149) | (105) |
Cash collateral paid | 0 | 0 |
Commodity derivative assets - noncurrent | 1,647 | 4,572 |
Commodity Contract | Commodity derivative liabilities - current | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 18,426 | 23,762 |
Commodity derivative liabilities | (116,945) | (152,673) |
Cash collateral paid | 0 | 0 |
Commodity derivative liabilities - current | (98,519) | (128,911) |
Commodity Contract | Commodity derivative liabilities - noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 686 | 1,209 |
Commodity derivative liabilities | (1,484) | (2,578) |
Cash collateral paid | 0 | 0 |
Commodity derivative liabilities - noncurrent | $ (798) | $ (1,369) |
Derivatives (Derivatives Gains
Derivatives (Derivatives Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest rate component of debt - not accounted for as a hedge | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on commodity derivatives included in Cost of sales and merchandising revenues | $ 13,533 | $ 151,058 | $ (36,563) |
Interest rate component of debt - not accounted for as a hedge | Interest rate contract | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on commodity derivatives included in Cost of sales and merchandising revenues | 123 | (844) | (11) |
Interest rate component of debt - accounted for as a hedge | Interest rate contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss due to debt prepayment, reclassified into earnings | (38,564) | (16,960) | 11,497 |
Interest rate component of debt - accounted for as a hedge | Interest rate contract | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate derivative gains (losses) included in Interest expense, net | $ (989) | $ (6,733) | $ (7,982) |
Derivatives (Commodity Derivati
Derivatives (Commodity Derivative Contracts Outstanding) (Details) gal in Thousands, bu in Thousands, T in Thousands | Dec. 31, 2022 bu | Dec. 31, 2022 gal | Dec. 31, 2022 T | Dec. 31, 2021 bu | Dec. 31, 2021 gal | Dec. 31, 2021 T |
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 1,090,085 | 365,484 | 3,629 | 1,319,055 | 341,763 | 3,258 |
Non-exchange traded | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 761,493 | 223,482 | 3,048 | 961,715 | 208,539 | 2,905 |
Non-exchange traded | Corn | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 567,405 | 0 | 0 | 685,681 | 0 | 0 |
Non-exchange traded | Soybeans | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 56,608 | 0 | 0 | 77,592 | 0 | 0 |
Non-exchange traded | Wheat | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 102,716 | 0 | 0 | 109,547 | 0 | 0 |
Non-exchange traded | Oats | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 24,710 | 0 | 0 | 31,627 | 0 | 0 |
Non-exchange traded | Ethanol | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 0 | 178,935 | 0 | 0 | 192,447 | 0 |
Non-exchange traded | Soybean meal | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 0 | 0 | 570 | 0 | 0 | 544 |
Non-exchange traded | Dried distillers grain | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 0 | 0 | 449 | 0 | 0 | 507 |
Non-exchange traded | Other | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 10,054 | 44,547 | 2,029 | 57,268 | 16,092 | 1,854 |
Exchange traded | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 328,592 | 142,002 | 581 | 357,340 | 133,224 | 353 |
Exchange traded | Corn | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 170,280 | 0 | 0 | 226,215 | 0 | 0 |
Exchange traded | Soybeans | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 46,380 | 0 | 0 | 64,730 | 0 | 0 |
Exchange traded | Wheat | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 111,567 | 0 | 0 | 65,020 | 0 | 0 |
Exchange traded | Oats | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 365 | 0 | 0 | 1,300 | 0 | 0 |
Exchange traded | Ethanol | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 0 | 94,206 | 0 | 0 | 100,884 | 0 |
Exchange traded | Propane | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 0 | 47,208 | 0 | 0 | 31,542 | 0 |
Exchange traded | Other | ||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||
Derivative, notional amount | 0 | 588 | 581 | 75 | 798 | 353 |
Derivatives (Fair Value of Comp
Derivatives (Fair Value of Company's Other Derivatives) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Interest rate component of debt - not accounted for as a hedge | Accrued expenses other current liabilities | Interest rate contract | ||
Derivative [Line Items] | ||
Derivative asset (liability) | $ 0 | $ (174) |
Interest rate component of debt - not accounted for as a hedge | Other current liabilities | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative asset (liability) | (3,124) | (1,069) |
Interest rate component of debt - accounted for as a hedge | Accrued expenses other current liabilities | Interest rate contract | ||
Derivative [Line Items] | ||
Derivative asset (liability) | 0 | (5,206) |
Interest rate component of debt - accounted for as a hedge | Other current assets | Interest rate contract | ||
Derivative [Line Items] | ||
Derivative asset (liability) | 8,759 | 0 |
Interest rate component of debt - accounted for as a hedge | Other noncurrent assets | Interest rate contract | ||
Derivative [Line Items] | ||
Derivative asset (liability) | 22,641 | 4,574 |
Interest rate component of debt - accounted for as a hedge | Other long-term liabilities | Interest rate contract | ||
Derivative [Line Items] | ||
Derivative asset (liability) | $ 0 | $ (6,555) |
Derivatives (Schedule of Open I
Derivatives (Schedule of Open Interest Rate Contracts) (Details) - Swap - Long $ in Millions | Dec. 31, 2022 USD ($) |
Interest rate component of debt - not accounted for as a hedge | |
Derivative [Line Items] | |
Initial Notional Amount | $ 100 |
Interest Rate | 2.30% |
Interest rate component of debt - accounted for as a hedge | |
Derivative [Line Items] | |
Initial Notional Amount | $ 50 |
Interest Rate | 2.40% |
Interest rate component of debt - accounted for as a hedge | |
Derivative [Line Items] | |
Initial Notional Amount | $ 50 |
Interest Rate | 2.40% |
Interest rate component of debt - accounted for as a hedge | |
Derivative [Line Items] | |
Initial Notional Amount | $ 50 |
Interest rate component of debt - accounted for as a hedge | Minimum | |
Derivative [Line Items] | |
Interest Rate | 0% |
Interest rate component of debt - accounted for as a hedge | Maximum | |
Derivative [Line Items] | |
Interest Rate | 0.80% |
Interest rate component of debt - accounted for as a hedge | |
Derivative [Line Items] | |
Initial Notional Amount | $ 50 |
Interest rate component of debt - accounted for as a hedge | Minimum | |
Derivative [Line Items] | |
Interest Rate | 0% |
Interest rate component of debt - accounted for as a hedge | Maximum | |
Derivative [Line Items] | |
Interest Rate | 0.80% |
Interest rate component of debt - accounted for as a hedge | |
Derivative [Line Items] | |
Initial Notional Amount | $ 20 |
Interest Rate | 2.60% |
Interest rate component of debt - accounted for as a hedge | |
Derivative [Line Items] | |
Initial Notional Amount | $ 100 |
Interest Rate | 2% |
Interest rate component of debt - accounted for as a hedge | |
Derivative [Line Items] | |
Initial Notional Amount | $ 50 |
Interest Rate | 2.40% |
Employee Benefit Plans (Textual
Employee Benefit Plans (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Company's expense for its defined contribution plans | $ 17.2 | $ 14.6 | $ 8.1 |
Employee Benefit Plans (Obligat
Employee Benefit Plans (Obligation and Funded Status of Pension and Postretirement Plans) (Details) - Postretirement health care benefit plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 23,942,000 | $ 25,324,000 | |
Service cost | 248,000 | 302,000 | $ 221,000 |
Interest cost | 586,000 | 546,000 | 719,000 |
Actuarial (gains) losses | (6,180,000) | (1,252,000) | |
Participant contributions | 314,000 | 271,000 | |
Benefits paid | (1,477,000) | (1,249,000) | |
Benefit obligation at end of year | 17,433,000 | 23,942,000 | 25,324,000 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Company contributions | 1,163,000 | 978,000 | |
Participant contributions | 314,000 | 271,000 | |
Benefits paid | (1,477,000) | (1,249,000) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Under funded status of plans at end of year | $ (17,433,000) | $ (23,942,000) |
Employee Benefit Plans (Amounts
Employee Benefit Plans (Amounts Recognized in Consolidated Balance Sheets) (Details) - Postretirement health care benefit plan - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amounts recognized in the consolidated balance sheets | ||
Accrued expenses and other current liabilities | $ 1,276 | $ 1,359 |
Other long-term liabilities | 16,157 | 22,583 |
Net amount recognized | $ 17,433 | $ 23,942 |
Employee Benefit Plans (Pre-tax
Employee Benefit Plans (Pre-tax Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - Postretirement health care benefit plan $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Details of the pre-tax amounts recognized in accumulated other comprehensive loss | |
Balance at beginning of year, Unamortized Actuarial Net Losses | $ (5,498) |
Balance at beginning of year, Unamortized Prior Service Costs | 4,098 |
Amounts arising during the period, Unamortized Actuarial Net Losses | (6,180) |
Amounts arising during the period, Unamortized Prior Service Costs | 0 |
Amounts recognized as a component of net periodic benefit cost, Unamortized Actuarial Net Losses | 0 |
Amounts recognized as a component of net periodic benefit cost, Unamortized Prior Service Costs | 911 |
Balance at end of year, Unamortized Actuarial Net Losses | (11,678) |
Balance at end of year, Unamortized Prior Service Costs | $ 5,009 |
Employee Benefit Plans (Benefit
Employee Benefit Plans (Benefits Expected to be Paid for Defined Benefit Plans) (Details) - Expected Postretirement Benefit Payout $ in Thousands | Dec. 31, 2022 USD ($) |
Combined benefits expected to be paid for all Company defined benefit plans | |
2019 | $ 1,276 |
2020 | 1,285 |
2021 | 1,299 |
2022 | 1,308 |
2023 | 1,300 |
2024-2028 | $ 6,371 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Period Benefit Plans) (Details) - Postretirement health care benefit plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of the net periodic benefit cost | |||
Service cost | $ 248 | $ 302 | $ 221 |
Interest cost | 586 | 546 | 719 |
Expected return on plan assets | (911) | (911) | (911) |
Recognized net actuarial loss | 0 | 169 | 79 |
Net periodic benefit (gain) cost | $ (77) | $ 106 | $ 108 |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted Average Assumptions of Pension and Postretirement Benefits) (Details) - Postretirement health care benefit plan | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Used to Determine Benefit Obligations at Measurement Date | |||
Discount rate for benefit obligations | 4.90% | 2.60% | 2.20% |
Discount rate for net periodic cost | 2.60% | 2.20% | 3% |
Expected long-term return on plan assets | 0% | 0% | 0% |
Rate of compensation increases | 0% | 0% | 0% |
Employee Benefit Plans (Assumed
Employee Benefit Plans (Assumed Health Care Cost Trend Rate at Beginning of Year) (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2017 |
Assumed Health Care Cost Trend Rates at Beginning of Year | |||
Health care cost trend rate assumed for next year | 3% | 3% | |
Maximum | |||
Assumed Health Care Cost Trend Rates at Beginning of Year | |||
Cap rate on Company's share of related costs | 2% |
Revenue (Breakdown of Revenues
Revenue (Breakdown of Revenues by Accounting Standards) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | $ 3,036,852 | $ 2,211,537 | $ 1,479,685 |
Total revenues | 17,325,384 | 12,612,050 | 8,064,620 |
Revenues under ASC 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 3,036,852 | 2,211,537 | 1,479,686 |
Revenues under ASC 815 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total revenues | $ 14,288,532 | $ 10,400,513 | $ 6,584,934 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total | $ 3,036,852 | $ 2,211,537 | $ 1,479,685 |
Specialty nutrients | |||
Disaggregation of Revenue [Line Items] | |||
Total | 355,636 | 270,842 | 234,806 |
Primary nutrients | |||
Disaggregation of Revenue [Line Items] | |||
Total | 625,134 | 500,891 | 396,515 |
Products and co-products | |||
Disaggregation of Revenue [Line Items] | |||
Total | 1,616,585 | 1,027,315 | 642,896 |
Propane | |||
Disaggregation of Revenue [Line Items] | |||
Total | 264,072 | 246,002 | 122,580 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total | 175,425 | 166,487 | 82,888 |
Trade | |||
Disaggregation of Revenue [Line Items] | |||
Total | 711,651 | 623,754 | 405,992 |
Trade | Specialty nutrients | |||
Disaggregation of Revenue [Line Items] | |||
Total | 0 | 0 | 0 |
Trade | Primary nutrients | |||
Disaggregation of Revenue [Line Items] | |||
Total | 0 | 0 | 0 |
Trade | Products and co-products | |||
Disaggregation of Revenue [Line Items] | |||
Total | 396,613 | 313,195 | 234,219 |
Trade | Propane | |||
Disaggregation of Revenue [Line Items] | |||
Total | 264,072 | 246,002 | 122,580 |
Trade | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total | 50,966 | 64,557 | 49,193 |
Renewables | |||
Disaggregation of Revenue [Line Items] | |||
Total | 1,225,893 | 720,888 | 410,734 |
Renewables | Specialty nutrients | |||
Disaggregation of Revenue [Line Items] | |||
Total | 0 | 0 | 0 |
Renewables | Primary nutrients | |||
Disaggregation of Revenue [Line Items] | |||
Total | 0 | 0 | 0 |
Renewables | Products and co-products | |||
Disaggregation of Revenue [Line Items] | |||
Total | 1,219,972 | 714,120 | 408,677 |
Renewables | Propane | |||
Disaggregation of Revenue [Line Items] | |||
Total | 0 | 0 | 0 |
Renewables | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total | 5,921 | 6,768 | 2,057 |
Plant Nutrient | |||
Disaggregation of Revenue [Line Items] | |||
Total | 1,099,308 | 866,895 | 662,959 |
Plant Nutrient | Specialty nutrients | |||
Disaggregation of Revenue [Line Items] | |||
Total | 355,636 | 270,842 | 234,806 |
Plant Nutrient | Primary nutrients | |||
Disaggregation of Revenue [Line Items] | |||
Total | 625,134 | 500,891 | 396,515 |
Plant Nutrient | Products and co-products | |||
Disaggregation of Revenue [Line Items] | |||
Total | 0 | 0 | 0 |
Plant Nutrient | Propane | |||
Disaggregation of Revenue [Line Items] | |||
Total | 0 | 0 | 0 |
Plant Nutrient | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total | $ 118,538 | $ 95,162 | $ 31,638 |
Revenue (Textual) (Details)
Revenue (Textual) (Details) - Transferred at Point in Time | 12 Months Ended |
Dec. 31, 2022 | |
Specialty nutrients | Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected payment period | 0 days |
Specialty nutrients | Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected payment period | 30 days |
Products and co-products | Minimum | Renewables | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected payment period | 10 days |
Products and co-products | Minimum | Trade | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected payment period | 30 days |
Products and co-products | Maximum | Renewables | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected payment period | 15 days |
Products and co-products | Maximum | Trade | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected payment period | 120 days |
Propane | Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected payment period | 0 years |
Propane | Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected payment period | 30 days |
Revenue (Contract Liabilities B
Revenue (Contract Liabilities Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Contract liability | $ 55,408 | $ 100,847 | $ 45,634 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 38,801 | $ 23,333 | $ (42,718) |
State and local | 13,541 | 4,934 | (748) |
Foreign | 4,741 | 760 | 6,731 |
Total current income tax provision | 57,083 | 29,027 | (36,735) |
Deferred: | |||
Federal | (13,425) | (3,687) | 28,665 |
State and local | (6,775) | 819 | 1,180 |
Foreign | 2,745 | 3,069 | (4,020) |
Total deferred income tax provision | (17,455) | 201 | 25,825 |
Federal | 25,376 | 19,646 | (14,053) |
State and local | 6,766 | 5,753 | 432 |
Foreign | 7,486 | 3,829 | 2,711 |
Total income tax expense | $ 39,628 | $ 29,228 | $ (10,910) |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Income Taxes from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of income before income taxes | |||
U.S. | $ 173,810 | $ 143,712 | $ (38,319) |
Foreign | 20,772 | 17,058 | 11,238 |
Income (loss) before income taxes from continuing operations | $ 194,582 | $ 160,770 | $ (27,081) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S. Federal Tax to Effective Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective tax rate reconciliation | |||
Statutory U.S. federal tax rate | 21% | 21% | 21% |
Increase (decrease) in rate resulting from: | |||
State and local income taxes, net of related federal taxes | 2.40% | 2.50% | 0.50% |
Federal tax rate differential | (0.30%) | 0.40% | (2.10%) |
U.S. tax rate change and other tax law impacts | 0.40% | 0.50% | 56.20% |
Effect of noncontrolling interest | (3.90%) | (4.20%) | (17.00%) |
Derivative instruments and hedging activities | (1.30%) | 0.40% | (11.80%) |
U.S. income taxes on foreign earnings | (0.10%) | 0.70% | (1.80%) |
Nondeductible compensation | 1.20% | 1.90% | (5.50%) |
Unrecognized tax benefits | 8% | 2.10% | (72.20%) |
Valuation allowance | 0.70% | 0.10% | (1.90%) |
Foreign tax credits | (2.10%) | (1.30%) | (0.50%) |
Research and development and other tax credits | (7.00%) | (5.00%) | 75.60% |
Equity method investments | 0.80% | (0.60%) | (0.10%) |
Other, net | 0.60% | (0.30%) | (0.10%) |
Effective tax rate | 20.40% | 18.20% | 40.30% |
COVID-19 Pandemic | |||
Increase (decrease) in rate resulting from: | |||
U.S. tax rate change and other tax law impacts | $ 14.8 |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
Income taxes paid (refunded), net | $ 88,700 | $ 51,700 | $ 2,400 | |
General business credits carryforwards | 1,900 | |||
Valuation allowance | 3,834 | 2,834 | ||
Tax credit carryforward, valuation allowance | 1,900 | |||
Net operating loss carryforwards, valuation allowance | 1,500 | |||
Unrecognized tax benefits | 79,262 | 51,754 | 44,401 | $ 22,415 |
Penalties and interest accruals | 8,600 | $ 2,700 | $ 1,800 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 79,200 | |||
Valuation Allowance, Equity Method Investees | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 400 | |||
Research Tax Credit Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 60,300 | |||
Minimum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Significant change, amount of unrecorded benefit | 18,600 | |||
Maximum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Significant change, amount of unrecorded benefit | 40,700 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 47,300 | |||
Non U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 3,700 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax liabilities: | |||
Property, plant and equipment | $ (58,273) | $ (66,913) | |
Operating lease right-of-use assets | (9,370) | 0 | |
Identifiable intangibles | (6,802) | (7,022) | |
Investments | (34,604) | (35,842) | |
Derivative Instruments | (7,911) | 0 | |
Other | (5,160) | (3,859) | |
Deferred tax liabilities | (122,120) | (113,636) | |
Deferred tax assets: | |||
Employee benefits | 28,859 | 27,695 | |
Accounts and notes receivable | 6,726 | 2,189 | |
Inventory | 10,272 | 4,533 | |
Federal income tax credits | 1,914 | 2,292 | |
Net operating loss carryforwards | 1,740 | 2,906 | |
Derivative instruments | 0 | 1,774 | |
Operating lease liability | 9,526 | 0 | |
Other | 7,118 | 5,490 | |
Total deferred tax assets | 66,155 | 46,879 | |
less: Valuation allowance | (3,834) | (2,834) | |
Net deferred tax assets | 62,321 | 44,045 | |
Net deferred tax liabilities | [1] | (59,799) | (69,591) |
Other Assets [Member] | |||
Deferred tax assets: | |||
Net deferred tax assets | $ 4,300 | $ 1,500 | |
[1] The Company had deferred tax assets of $4.3 million and $1.5 million included in Other assets in the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively. |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 51,754 | $ 44,401 | $ 22,415 |
Tax positions related to the current year, gross additions | 8,074 | 13,179 | 11,598 |
Tax positions related to prior years, gross additions | 19,434 | 1,364 | 12,013 |
Tax positions related to prior years, gross reductions | 0 | (7,190) | (1,566) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | 0 | (59) |
Balance at ending of year | $ 79,262 | $ 51,754 | $ 44,401 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ 1,307,704 | $ 1,160,660 | $ 1,195,655 |
Other comprehensive income (loss) | 19,290 | 13,270 | (4,845) |
Ending Balance | 1,429,769 | 1,307,704 | 1,160,660 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 1,194 | (12,076) | (7,231) |
Ending Balance | 20,484 | 1,194 | (12,076) |
Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 5,631 | 5,739 | |
Other comprehensive income (loss) before reclassifications | (13,834) | (108) | |
Tax effect | 0 | 0 | |
Other comprehensive income (loss) | (13,834) | (108) | |
Ending Balance | (8,203) | 5,631 | 5,739 |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (5,335) | (18,106) | |
Other comprehensive income (loss) before reclassifications | 37,575 | 8,105 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 989 | 8,855 | |
Tax effect | (9,683) | (4,189) | |
Other comprehensive income (loss) | 28,881 | 12,771 | |
Ending Balance | 23,546 | (5,335) | (18,106) |
Pension and Other Postretirement Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 640 | 33 | |
Other comprehensive income (loss) before reclassifications | 6,492 | 1,699 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (911) | (911) | |
Tax effect | (1,338) | (181) | |
Other comprehensive income (loss) | 4,243 | 607 | |
Ending Balance | 4,883 | 640 | 33 |
Investments in Convertible Preferred Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 258 | 258 | |
Other comprehensive income (loss) | 0 | 0 | |
Ending Balance | $ 258 | $ 258 | $ 258 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets and liabilities measured at fair value on a recurring basis | ||
Commodity derivatives, net | $ 197,918 | $ 285,105 |
Provisionally priced contracts | (136,337) | (45,853) |
Convertible preferred securities | 16,278 | 11,618 |
Other assets and liabilities | 31,191 | (4,577) |
Total | 109,050 | 246,293 |
Level 1 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Commodity derivatives, net | 54,516 | 128,407 |
Provisionally priced contracts | (20,960) | 43,944 |
Convertible preferred securities | 0 | 0 |
Other assets and liabilities | (209) | 2,784 |
Total | 33,347 | 175,135 |
Level 2 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Commodity derivatives, net | 143,402 | 156,698 |
Provisionally priced contracts | (115,377) | (89,797) |
Convertible preferred securities | 0 | 0 |
Other assets and liabilities | 31,400 | (7,361) |
Total | 59,425 | 59,540 |
Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Commodity derivatives, net | 0 | 0 |
Provisionally priced contracts | 0 | 0 |
Convertible preferred securities | 16,278 | 11,618 |
Other assets and liabilities | 0 | 0 |
Total | $ 16,278 | $ 11,618 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Ending Balances of Recurring Fair Value Measurements Using Level 3 Inputs) (Details) - Level 3 - Convertible Preferred Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets at January 1, | $ 11,618 | $ 8,849 |
Additional investments | 4,655 | 5,401 |
Gains (losses) included in Other income, net | 5 | (2,632) |
Assets at December 31, | $ 16,278 | $ 11,618 |
Fair Value Measurements (Summar
Fair Value Measurements (Summarized Information About Level 3 Fair Value Measurements) (Details) - Level 3 - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Convertible Preferred Securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value measurement with unobservable input | $ 16,278 | $ 11,618 | $ 8,849 |
Recurring | Convertible Preferred Securities | Market approach | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value measurement with unobservable input | 16,278 | 11,618 | |
Nonrecurring | Grain Assets | Third party appraisal | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value measurement with unobservable input | $ 9,000 | ||
Nonrecurring | Frac Sand Assets | Third party appraisal | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value measurement with unobservable input | 2,946 | ||
Nonrecurring | Real Property | Market approach | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, fair value measurement with unobservable input | $ 700 |
Related Party Transactions (Rel
Related Party Transactions (Related Party Transactions Entered Into During the Period) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related party transactions entered into for the time periods presented | |||
Sales of products | $ 398,390 | $ 342,816 | $ 176,768 |
Purchases of products | 76,479 | 44,182 | $ 52,665 |
Accounts receivable | 12,272 | 9,984 | |
Accounts payable | $ 7,070 | $ 6,034 |
Segment Information (Textual) (
Segment Information (Textual) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments (business segments) | segment | 3 | |
Property, plant and equipment, net | $ 762,729 | $ 786,029 |
Canada | Trade | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 36,600 | $ 38,600 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 17,325,384 | $ 12,612,050 | $ 8,064,620 |
Interest expense (income) | 56,849 | 37,292 | 33,784 |
Equity earnings (losses) in affiliates | (5,671) | 4,842 | 638 |
Other income, net | 33,823 | 37,438 | 18,201 |
Income (loss) before income taxes from continuing operations | 194,582 | 160,770 | (27,081) |
Income (loss) attributable to noncontrolling interests | 35,900 | 31,900 | (21,900) |
Income (loss) before income taxes from continuing operations | 154,954 | 131,542 | (16,171) |
Identifiable assets | 4,607,996 | 4,569,219 | |
Capital expenditures | 108,284 | 71,774 | 72,725 |
Depreciation and amortization | 134,742 | 178,934 | 188,638 |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 4,605,125 | 4,505,165 | |
Depreciation and amortization | 134,742 | 157,174 | 153,065 |
Discontinued Operations | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 2,871 | 64,054 | |
Depreciation and amortization | 0 | 21,760 | 35,573 |
Operating Segments | Trade | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 13,047,537 | 9,304,357 | 6,141,402 |
Interest expense (income) | (42,551) | (23,688) | (21,974) |
Other income, net | 12,661 | 35,878 | 12,592 |
Income (loss) before income taxes from continuing operations | 95,225 | 87,946 | 24,687 |
Capital expenditures | 29,433 | 17,828 | 14,911 |
Operating Segments | Trade | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 3,166,813 | 3,115,045 | |
Depreciation and amortization | 35,953 | 44,335 | 44,627 |
Operating Segments | Renewables | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,178,539 | 2,440,798 | 1,260,259 |
Interest expense (income) | (8,775) | (7,602) | (7,461) |
Other income, net | 20,731 | 3,200 | 2,795 |
Income (loss) before income taxes from continuing operations | 108,221 | 81,205 | (47,338) |
Capital expenditures | 42,734 | 28,502 | 39,791 |
Operating Segments | Renewables | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 835,860 | 784,031 | |
Depreciation and amortization | 63,458 | 77,542 | 73,224 |
Operating Segments | Plant Nutrient | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,099,308 | 866,895 | 662,959 |
Interest expense (income) | (7,298) | (4,355) | (5,805) |
Other income, net | 3,001 | 2,128 | 1,274 |
Income (loss) before income taxes from continuing operations | 39,162 | 42,615 | 16,015 |
Capital expenditures | 34,678 | 21,616 | 16,565 |
Operating Segments | Plant Nutrient | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 527,725 | 453,137 | |
Depreciation and amortization | 26,634 | 25,957 | 25,407 |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest expense (income) | 1,775 | (1,647) | 1,456 |
Other income, net | (2,570) | (3,768) | 1,540 |
Income (loss) before income taxes from continuing operations | (48,026) | (50,996) | (20,445) |
Capital expenditures | 1,439 | 3,828 | 1,458 |
Other | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 74,727 | 152,952 | |
Depreciation and amortization | 8,697 | 9,340 | 9,807 |
United States | Trade | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 12,503,330 | 9,771,502 | 6,180,376 |
Canada | Trade | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,199,487 | 806,481 | 517,006 |
Egypt | Trade | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 573,371 | 73,654 | 8,136 |
Mexico | Trade | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 493,111 | 490,672 | 246,523 |
Switzerland | Trade | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 373,737 | 487,363 | 348,867 |
Other | Trade | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 2,182,348 | $ 982,378 | $ 763,712 |
Leases (Summary of Amounts Reco
Leases (Summary of Amounts Recognized in Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease assets | $ 61,890 | $ 52,146 |
Finance lease assets | 21,359 | 23,895 |
Total leased assets | 83,249 | 76,041 |
Liabilities | ||
Current operating leases | 25,364 | 19,580 |
Non-current operating leases | 37,147 | 31,322 |
Total operating lease liabilities | 62,511 | 50,902 |
Current finance leases | 1,565 | 2,118 |
Non-current finance leases | 8,400 | 10,762 |
Total finance lease liabilities | 9,965 | 12,880 |
Total lease liabilities | $ 72,476 | $ 63,782 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term Debt, Excluding Current Maturities | Long-term Debt, Excluding Current Maturities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Leases (Components of Lease Cos
Leases (Components of Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease cost: | |||
Interest expense on lease liabilities | $ 413 | $ 679 | $ 859 |
Total lease cost | 35,256 | 28,043 | 24,851 |
Cost of sales and merchandising revenues | |||
Lease cost: | |||
Operating lease cost | 19,891 | 13,016 | 10,968 |
Amortization of right-of-use assets | 614 | 978 | 932 |
Short-term lease cost | 2,465 | 1,349 | 66 |
Variable lease cost | 338 | 458 | 80 |
Operating, administrative and general expenses | |||
Lease cost: | |||
Operating lease cost | 10,132 | 10,324 | 10,678 |
Amortization of right-of-use assets | 1,009 | 1,008 | 1,008 |
Variable lease cost | $ 394 | $ 231 | $ 260 |
Leases (Weighted Average Remain
Leases (Weighted Average Remaining Lease Term) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating leases | 3 years 10 months 24 days | 3 years 10 months 24 days |
Finance leases | 6 years 10 months 24 days | 7 years 2 months 12 days |
Leases (Weighted Average Discou
Leases (Weighted Average Discount Rate) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating leases | 3.44% | 2.63% |
Finance leases | 3.35% | 3.30% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 30,294 | $ 29,304 | $ 28,444 |
Operating cash flows from finance leases | 0 | 0 | 1,289 |
Financing cash flows from finance leases | 1,782 | 12,538 | 4,115 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 36,056 | 35,024 | 15,160 |
Finance leases | $ 0 | $ 364 | $ 4,972 |
Leases (Maturity Analysis of Le
Leases (Maturity Analysis of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 28,108 | $ 20,639 |
2024 | 17,326 | 13,797 |
2025 | 9,801 | 8,121 |
2026 | 5,142 | 4,974 |
2027 | 1,629 | 2,434 |
Thereafter | 5,507 | 3,881 |
Total lease payments | 67,513 | 53,846 |
Less: interest | 5,002 | 2,944 |
Total | 62,511 | 50,902 |
Finance Leases | ||
2023 | 1,889 | 2,521 |
2024 | 1,768 | 2,305 |
2025 | 1,406 | 2,175 |
2026 | 1,384 | 1,406 |
2027 | 1,391 | 1,384 |
Thereafter | 3,382 | 4,773 |
Total lease payments | 11,220 | 14,564 |
Less: interest | 1,255 | 1,684 |
Total | 9,965 | 12,880 |
Total | ||
2023 | 29,997 | 23,160 |
2024 | 19,094 | 16,102 |
2025 | 11,207 | 10,296 |
2026 | 6,526 | 6,380 |
2027 | 3,020 | 3,818 |
Thereafter | 8,889 | 8,654 |
Total lease payments | 78,733 | 68,410 |
Less: interest | 6,257 | 4,628 |
Total lease liabilities | $ 72,476 | $ 63,782 |
Commitments and Contingencies (
Commitments and Contingencies (Textual) (Details) | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Industrial Revenue Bonds, Unrecognized | $ 1,000,000 |
Stock Compensation Plans (Textu
Stock Compensation Plans (Textual) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2015 | May 06, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense recognized | $ 11.2 | $ 11 | $ 9.8 | ||
Options granted (shares) | 325,000 | ||||
Options outstanding, weighted average exercise price (in dollars per share) | $ 35.40 | ||||
Options exercised (in shares) | 142,000 | ||||
Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based payment award, term | seven years | ||||
Restricted Stock Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
General vesting period of options granted | 1 year | ||||
Restricted Stock Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
General vesting period of options granted | 3 years | ||||
Restricted Stock Awards | Year 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual award vesting rights, percentage | 33.33% | ||||
Restricted Stock Awards | Year 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual award vesting rights, percentage | 33.33% | ||||
Restricted Stock Awards | Year 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual award vesting rights, percentage | 33.33% | ||||
EPS PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
General vesting period of options granted | 3 years | ||||
TSR PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
General vesting period of options granted | 3 years | ||||
Unrecognized compensation cost | $ 3.3 | ||||
Unrecognized compensation cost, recognition period | 1 year | ||||
Expected term (in years) | 2 years 9 months 29 days | 2 years 9 months 29 days | |||
Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized to grant under LT Plan (in shares) | 230,000 | ||||
Number of shares remained available (in shares) | 79,000 | ||||
Expected term (in years) | 1 year | 1 year | 1 year | ||
Term of treasury issues | 1 year | ||||
The 2019 LT Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized to grant under LT Plan (in shares) | 7,000,000 | ||||
Number of shares remained available (in shares) | 4,500,000 | ||||
The 2019 LT Plan | Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 2.8 | ||||
Unrecognized compensation cost, recognition period | 1 year 3 months 18 days | ||||
The 2019 LT Plan | EPS PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 4.5 | ||||
Unrecognized compensation cost, recognition period | 1 year |
Stock Compensation Plans (Restr
Stock Compensation Plans (Restricted Stock Awards) (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares (in thousands) | |||
Nonvested shares, beginning of period (shares) | 388 | ||
Granted (shares) | 130 | ||
Vested (shares) | (260) | ||
Forfeited (shares) | (6) | ||
Nonvested shares, end of period (shares) | 252 | 388 | |
Weighted-Average Grant-Date Fair Value | |||
Nonvested shares, beginning of period (in dollars per share) | $ 27.75 | ||
Granted (in dollars per share) | 43.38 | $ 26.86 | $ 18.35 |
Vested (in dollars per share) | 29.99 | ||
Forfeited (in dollars per share) | 33.22 | ||
Nonvested shares, end of period (in dollars per share) | $ 32.79 | $ 27.75 | |
Total fair value of shares vested (in thousands) | $ 7,465 | $ 9,453 | $ 13,510 |
Stock Compensation Plans (EPS P
Stock Compensation Plans (EPS PSUs Activity) (Details) - EPS PSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares (in thousands) | |||
Nonvested shares, beginning of period (shares) | 386 | ||
Granted (shares) | 107 | ||
Vested (shares) | (25) | ||
Forfeited (shares) | (71) | ||
Nonvested shares, end of period (shares) | 397 | 386 | |
Weighted-Average Grant-Date Fair Value | |||
Nonvested shares, beginning of period (in dollars per share) | $ 23.69 | ||
Granted (in dollars per share) | 43.98 | $ 26.80 | $ 19.06 |
Vested (in dollars per share) | 25.73 | ||
Forfeited (in dollars per share) | 27.51 | ||
Nonvested shares, end of period (in dollars per share) | $ 28.35 | $ 23.69 |
Stock Compensation Plans (Weigh
Stock Compensation Plans (Weighted Average Assumptions Used to Determine Fair Value of TSR PSUs) (Details) - TSR PSUs | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.44% | |
Dividend yield | 0% | |
Volatility factor of the expected market price of the common shares | 53% | |
Expected term (in years) | 2 years 9 months 29 days | 2 years 9 months 29 days |
Correlation coefficient | 45% |
Stock Compensation Plans (TSR P
Stock Compensation Plans (TSR PSUs Activity) (Details) - TSR PSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares (in thousands) | |||
Nonvested shares, beginning of period (shares) | 386 | ||
Granted (shares) | 106 | ||
Vested (shares) | 0 | ||
Forfeited (shares) | (95) | ||
Nonvested shares, end of period (shares) | 397 | 386 | |
Weighted-Average Grant-Date Fair Value | |||
Nonvested shares, beginning of period (in dollars per share) | $ 30.89 | ||
Granted (in dollars per share) | 66.90 | $ 35.66 | $ 16.80 |
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 48.27 | ||
Nonvested shares, end of period (in dollars per share) | $ 36.31 | $ 30.89 |
Stock Compensation Plans (Wei_2
Stock Compensation Plans (Weighted Average Assumptions Used to Determine Fair Value of ESP Plan) (Details) - Employee Stock | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair value of the option component of the ESP Plan | |||
Risk free interest rate | 0.39% | 0.10% | 1.59% |
Dividend yield | 1.82% | 2.86% | 2.71% |
Volatility factor of the expected market price of the common shares | 38% | 72% | 36% |
Expected life for the options (in years) | 1 year | 1 year | 1 year |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 16, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) from disposal | $ 27,091 | $ (1,491) | $ 0 | |
Income Statement Disclosures | ||||
Sales and merchandising revenues | 25,121 | 116,787 | 143,816 | |
Cost of sales and merchandising revenues | 26,244 | 88,393 | 105,091 | |
Gross profit | (1,123) | 28,394 | 38,725 | |
Operating, administrative and general expenses | 3,968 | 12,350 | 21,512 | |
Asset impairment | 2,818 | 626 | 0 | |
Interest expense, net | 0 | 8,783 | 17,491 | |
Other income (loss), net | 33,046 | 1,020 | 2,885 | |
Income from discontinued operations before income taxes | 25,137 | 7,655 | 2,607 | |
Income tax provision from discontinued operations | 13,112 | 3,331 | 651 | |
Income from discontinued operations, net of income taxes | 12,025 | 4,324 | 1,956 | |
Current assets: | ||||
Accounts receivable, net | 0 | 12,643 | ||
Inventories | 0 | 6,739 | ||
Other current assets | 2,871 | 1,503 | ||
Current assets held-for-sale | 2,871 | 20,885 | ||
Other assets: | ||||
Rail assets leased to others, net | 0 | 458 | ||
Property, plant and equipment, held for sale | 0 | 17,280 | ||
Goodwill | 0 | 4,167 | ||
Other intangible assets, net | 0 | 24 | ||
Right of use assets, net | 0 | 20,999 | ||
Other assets, net | 0 | 241 | ||
Total non-current assets held-for-sale | 0 | 43,169 | ||
Total assets held-for-sale | 2,871 | 64,054 | ||
Current liabilities: | ||||
Trade and other payables | 0 | 2,546 | ||
Short-term lease liabilities | 0 | 4,672 | ||
Accrued expenses and other current liabilities | 0 | 6,161 | ||
Total current liabilities held-for-sale | 0 | 13,379 | ||
Long-term lease liabilities | 0 | 16,119 | ||
Non-current liabilities held-for-sale | 0 | 16,119 | ||
Total liabilities held-for-sale | 0 | 29,498 | ||
Cash Flow Disclosures | ||||
Depreciation and amortization | 0 | 21,760 | 35,573 | |
Capital expenditures | (31,458) | (8,669) | (32,161) | |
Proceeds from sale of assets | 36,706 | 19,150 | 10,077 | |
Loss (gain) on sale of discontinued operations | (27,091) | 1,491 | 0 | |
Non-cash operating activities - gain on sale of railcars | (5,463) | (5,603) | (649) | |
Non-cash operating activities - asset impairment | 2,818 | 626 | 0 | |
Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end | 0 | $ 0 | $ 491 | |
Rail Leasing Business | Disposed of by sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration received on sale of assets | $ 543,100 | 56,300 | ||
Gain (loss) from disposal | (1,500) | 27,100 | ||
Cash Flow Disclosures | ||||
Loss (gain) on sale of discontinued operations | $ 1,500 | $ (27,100) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Changes in Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill at beginning of period | $ 129,342 | $ 131,542 | $ 131,193 |
Acquisitions | 0 | 0 | 349 |
Reorganization | 0 | ||
Disposals | (2,200) | ||
Goodwill at end of period | 129,342 | 129,342 | 131,542 |
Trade | |||
Goodwill [Roll Forward] | |||
Goodwill at beginning of period | 119,867 | 122,067 | 127,781 |
Acquisitions | 0 | 0 | 0 |
Reorganization | 5,714 | ||
Disposals | (2,200) | ||
Goodwill at end of period | 119,867 | 119,867 | 122,067 |
Renewables | |||
Goodwill [Roll Forward] | |||
Goodwill at beginning of period | 8,789 | 8,789 | 2,726 |
Acquisitions | 0 | 0 | 349 |
Reorganization | (5,714) | ||
Disposals | 0 | ||
Goodwill at end of period | 8,789 | 8,789 | 8,789 |
Plant Nutrient | |||
Goodwill [Roll Forward] | |||
Goodwill at beginning of period | 686 | 686 | 686 |
Acquisitions | 0 | 0 | 0 |
Reorganization | 0 | ||
Disposals | 0 | ||
Goodwill at end of period | $ 686 | $ 686 | $ 686 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Textual) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 129,342,000 | $ 129,342,000 | $ 131,542,000 | $ 131,193,000 |
Goodwill, Impairment Loss | 0 | 0 | 0 | |
Amortization expense for intangible assets | 24,100,000 | 30,300,000 | 30,700,000 | |
Expected future annual amortization expense of intangibles in year one | 23,100,000 | |||
Expected future annual amortization expense of intangibles in year two | 20,000,000 | |||
Expected future annual amortization expense of intangibles in year three | 13,600,000 | |||
Expected future annual amortization expense of intangibles in year four | 11,500,000 | |||
Expected future annual amortization expense of intangibles in year five | 11,300,000 | |||
Expected future annual amortization expense of intangibles thereafter | $ 21,400,000 | |||
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average cost of capital percentage used to determine impairment or reporting unit | 10.25% | |||
Weighted average cost of capital percentage used to determine impairment or reporting unit, risk premium | 1% | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average cost of capital percentage used to determine impairment or reporting unit | 12% | |||
Weighted average cost of capital percentage used to determine impairment or reporting unit, risk premium | 3% | |||
Grain Storage and Merchandising | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 78,500,000 | |||
Percentage of FV in excess of carrying amount | 12% | |||
Food and Specialty Ingredients | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 41,300,000 | |||
Percentage of FV in excess of carrying amount | 33% | |||
Ethanol | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 8,800,000 | |||
Lawn | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | 700,000 | |||
Trade | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | 119,867,000 | 119,867,000 | 122,067,000 | 127,781,000 |
Goodwill, accumulated impairment loss | 46,400,000 | |||
Plant Nutrient | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | 686,000 | $ 686,000 | $ 686,000 | $ 686,000 |
Goodwill, accumulated impairment loss | $ 68,900,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Amortized intangible assets | ||
Original Cost | $ 292,882 | $ 287,005 |
Accumulated Amortization | 191,975 | 169,868 |
Net Book Value | 100,907 | 117,137 |
Customer lists | ||
Amortized intangible assets | ||
Original Cost | 143,081 | 136,311 |
Accumulated Amortization | 70,539 | 58,047 |
Net Book Value | 72,542 | 78,264 |
Non-compete agreements | ||
Amortized intangible assets | ||
Original Cost | 22,242 | 21,796 |
Accumulated Amortization | 21,311 | 21,124 |
Net Book Value | 931 | 672 |
Supply agreement | ||
Amortized intangible assets | ||
Original Cost | 8,720 | 8,721 |
Accumulated Amortization | 7,912 | 7,450 |
Net Book Value | 808 | 1,271 |
Technology | ||
Amortized intangible assets | ||
Original Cost | 13,400 | 13,400 |
Accumulated Amortization | 10,218 | 8,878 |
Net Book Value | 3,182 | 4,522 |
Trademarks and patents | ||
Amortized intangible assets | ||
Original Cost | 15,810 | 15,810 |
Accumulated Amortization | 13,165 | 12,020 |
Net Book Value | 2,645 | 3,790 |
Software | ||
Amortized intangible assets | ||
Original Cost | 88,631 | 89,956 |
Accumulated Amortization | 68,392 | 61,920 |
Net Book Value | 20,239 | 28,036 |
Other | ||
Amortized intangible assets | ||
Original Cost | 998 | 1,011 |
Accumulated Amortization | 438 | 429 |
Net Book Value | $ 560 | $ 582 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 1 year | |
Minimum | Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 3 years | |
Minimum | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 1 year | |
Minimum | Supply agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Minimum | Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Minimum | Trademarks and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 7 years | |
Minimum | Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 2 years | |
Minimum | Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 3 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Maximum | Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Maximum | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 7 years | |
Maximum | Supply agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Maximum | Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Maximum | Trademarks and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Maximum | Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Maximum | Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 5 years |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsidiary or Equity Method Investee [Line Items] | |||
Biofuel Producer Program funds | $ 17,642 | $ 0 | $ 0 |
Insurance proceeds | 10,632 | 3,850 | 2,917 |
Gain on sales of assets and businesses | 3,979 | 14,661 | 1,307 |
Equity earnings (losses) in affiliates | (5,671) | 4,842 | 638 |
Other | 7,241 | 14,085 | 13,339 |
Other | 33,823 | 37,438 | 18,201 |
Equity method investment impairment loss | 4,500 | ||
Illinois Grain Assets | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Gain on sales of assets and businesses | 14,600 | ||
Frac Sand Assets | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Gain on sales of assets and businesses | 3,900 | ||
Business Interruption and Property Damage, Galena Park, TX Facility | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Insurance proceeds | 3,000 | $ 3,800 | $ 2,900 |
Business Interruption and Property Damage, Delhi, LA Conveyer Collapse | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Insurance proceeds | 2,600 | ||
Business Interruption and Property Damage, Delphi, IN Grain Bin Collapse | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Insurance proceeds | 5,000 | ||
TAMH | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Biofuel Producer Program funds | 13,300 | ||
Element LLC | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Biofuel Producer Program funds | $ 4,300 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Income (loss) before income taxes from continuing operations | $ 154,954 | $ 131,542 | $ (16,171) |
Net income (loss) attributable to noncontrolling interests | 35,899 | 31,880 | (21,925) |
Net income attributable to The Andersons Inc. common shareholders from continuing operations | 119,055 | 99,662 | 5,754 |
Income from discontinued operations, net of income taxes | $ 12,025 | $ 4,324 | $ 1,956 |
Denominator: | |||
Weighted average shares outstanding – basic (shares) | 33,731 | 33,279 | 32,924 |
Effect of dilutive awards (shares) | 691 | 576 | 265 |
Weighted average shares outstanding – diluted | 34,422 | 33,855 | 33,189 |
Basic earnings: | |||
Continuing operations (in dollars per share) | $ 3.53 | $ 2.99 | $ 0.17 |
Discontinued operations (in dollars per share) | 0.36 | 0.13 | 0.06 |
Basic earnings (in dollars per share) | 3.89 | 3.12 | 0.23 |
Diluted earnings: | |||
Continuing operations (in dollars per share) | 3.46 | 2.94 | 0.17 |
Discontinued operations (in dollars per share) | 0.35 | 0.13 | 0.06 |
Diluted earnings (in dollars per share) | $ 3.81 | $ 3.07 | $ 0.23 |
Antidilutive stock-based awards outstanding (shares) | 294 |
Schedule II - Consolidated Va_2
Schedule II - Consolidated Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for credit loss | $ 26,392 | $ 6,911 | $ 9,255 |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 6,911 | 9,255 | 6,338 |
Charged to Costs and Expenses | 4,249 | (190) | 4,163 |
Charged to Other Accounts (1) | 17,168 | 0 | 0 |
Deductions | (1,936) | (2,154) | (1,246) |
Balance at End of Period | 26,392 | $ 6,911 | $ 9,255 |
Allowance for Doubtful Accounts | Rail Leasing Business | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Charged to Other Accounts (1) | 2,700 | ||
Allowance for Doubtful Accounts | Commodity Contract | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Charged to Other Accounts (1) | $ 14,500 |