Cover page
Cover page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-20557 | |
Entity Registrant Name | ANDERSONS, INC. | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1562374 | |
Entity Address, Address Line One | 1947 Briarfield Boulevard | |
Entity Address, City or Town | Maumee | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43537 | |
City Area Code | 419 | |
Local Phone Number | 893-5050 | |
Title of 12(b) Security | Common stock, $0.00 par value, $0.01 stated value | |
Trading Symbol | ANDE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,049,783 | |
Entity Central Index Key | 0000821026 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Sales and merchandising revenues | $ 2,718,217 | $ 3,881,238 |
Cost of sales and merchandising revenues | 2,589,897 | 3,733,227 |
Gross profit | 128,320 | 148,011 |
Operating, administrative and general expenses | 119,358 | 117,235 |
Asset impairment | 0 | 87,156 |
Interest expense, net | 6,522 | 16,625 |
Other income, net | 11,528 | 8,004 |
Income (loss) before income taxes | 13,968 | (65,001) |
Income tax provision (benefit) | 1,303 | (5,884) |
Net income (loss) | 12,665 | (59,117) |
Net income (loss) attributable to noncontrolling interests | 7,084 | (44,367) |
Net income (loss) attributable to The Andersons, Inc. | $ 5,581 | $ (14,750) |
Average number of shares outstanding - basic (in shares) | 33,932 | 33,622 |
Average number of share outstanding - diluted (in shares) | 34,243 | 33,622 |
Earnings (loss) per share attributable to The Andersons, Inc. common shareholders: | ||
Basic earnings (loss) per share attributable to The Andersons, Inc. common shareholders (usd per share) | $ 0.16 | $ (0.44) |
Diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders (usd per share) | $ 0.16 | $ (0.44) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 12,665 | $ (59,117) |
Other comprehensive income (loss), net of tax: | ||
Change in unrecognized actuarial loss and prior service cost | (175) | (188) |
Foreign currency translation adjustments | (2,918) | 767 |
Cash flow hedge activity | 3,639 | (4,796) |
Other comprehensive income (loss) | 546 | (4,217) |
Comprehensive income (loss) | 13,211 | (63,334) |
Comprehensive income (loss) attributable to the noncontrolling interests | 7,084 | (44,367) |
Comprehensive income (loss) attributable to The Andersons, Inc. | $ 6,127 | $ (18,967) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 283,902 | $ 643,854 | $ 70,853 |
Accounts receivable, net | 701,706 | 762,549 | 1,125,071 |
Inventories | 994,543 | 1,166,700 | 1,551,101 |
Commodity derivative assets – current | 178,623 | 178,083 | 222,036 |
Other current assets | 55,134 | 55,777 | 81,407 |
Total current assets | 2,213,908 | 2,806,963 | 3,050,468 |
Other assets: | |||
Goodwill | 127,856 | 127,856 | 129,342 |
Other intangible assets, net | 80,527 | 85,579 | 95,134 |
Right of use assets, net | 52,541 | 54,234 | 59,209 |
Other assets, net | 97,128 | 87,010 | 89,174 |
Total other assets | 358,052 | 354,679 | 372,859 |
Property, plant and equipment, net | 689,113 | 693,365 | 678,717 |
Total assets | 3,261,073 | 3,855,007 | 4,102,044 |
Current liabilities: | |||
Short-term debt | 10,148 | 43,106 | 638,210 |
Trade and other payables | 625,836 | 1,055,473 | 768,872 |
Customer prepayments and deferred revenue | 174,651 | 187,054 | 309,546 |
Commodity derivative liabilities – current | 67,079 | 90,849 | 107,983 |
Current maturities of long-term debt | 27,617 | 27,561 | 85,567 |
Accrued expenses and other current liabilities | 177,953 | 232,288 | 202,133 |
Total current liabilities | 1,083,284 | 1,636,331 | 2,112,311 |
Long-term lease liabilities | 31,223 | 31,659 | 35,727 |
Long-term debt, less current maturities | 556,174 | 562,960 | 486,892 |
Deferred income taxes | 59,149 | 58,581 | 54,391 |
Other long-term liabilities | 55,593 | 49,089 | 66,311 |
Total liabilities | 1,785,423 | 2,338,620 | 2,755,632 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Common shares, without par value (63,000 shares authorized and 34,064 shares issued for all periods presented) | 142 | 142 | 142 |
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 | 0 |
Additional paid-in-capital | 375,155 | 387,210 | 377,768 |
Treasury shares, at cost (14, 270 and 289 shares at 3/31/2024, 12/31/2023 and 3/31/2023, respectively) | (631) | (10,261) | (11,006) |
Accumulated other comprehensive income | 23,411 | 22,865 | 16,267 |
Retained earnings | 881,911 | 882,943 | 786,420 |
Total shareholders’ equity of The Andersons, Inc. | 1,279,988 | 1,282,899 | 1,169,591 |
Noncontrolling interests | 195,662 | 233,488 | 176,821 |
Total equity | 1,475,650 | 1,516,387 | 1,346,412 |
Total liabilities and equity | $ 3,261,073 | $ 3,855,007 | $ 4,102,044 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | |||
Common shares, shares authorized (shares) | 63,000,000 | 63,000,000 | 63,000,000 |
Common shares, shares issued (shares) | 34,064,000 | 34,064,000 | 34,064,000 |
Preferred shares, shares authorized (shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred shares, shares issued (shares) | 0 | 0 | 0 |
Treasury shares, at cost (shares) | 14,000 | 270,000 | 289,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Activities | ||
Net income (loss) | $ 12,665 | $ (59,117) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation and amortization | 30,949 | 32,220 |
Asset impairment | 0 | 87,156 |
Other | 4,795 | (2,230) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 57,725 | 125,113 |
Inventories | 169,083 | 178,010 |
Commodity derivatives | (28,498) | 83,148 |
Other current and non-current assets | 1,923 | (17,543) |
Payables and other current and non-current liabilities | (488,269) | (760,292) |
Net cash used in operating activities | (239,627) | (333,535) |
Investing Activities | ||
Purchases of property, plant and equipment and capitalized software | (26,775) | (25,470) |
Proceeds from sale of Rail assets | 0 | 2,871 |
Other | 4,723 | 2,792 |
Net cash used in investing activities | (22,052) | (19,807) |
Financing Activities | ||
Net (payments) receipts under short-term lines of credit | (31,913) | 363,619 |
Payments of long-term debt | (6,870) | (30,251) |
Distributions to noncontrolling interest owner | (44,910) | (9,980) |
Dividends paid | (6,516) | (6,279) |
Value of shares withheld for taxes | (8,071) | (6,616) |
Other | 0 | (1,676) |
Net cash (used in) provided by financing activities | (98,280) | 308,817 |
Effect of exchange rates on cash and cash equivalents | 7 | 109 |
Decrease in cash and cash equivalents | (359,952) | (44,416) |
Cash and cash equivalents at beginning of period | 643,854 | 115,269 |
Cash and cash equivalents at end of period | $ 283,902 | $ 70,853 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) - 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, 2022 | $ 1,429,769 | $ 142 | $ 385,248 | $ (15,043) | $ 20,484 | $ 807,770 | $ 231,168 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (59,117) | (14,750) | (44,367) | ||||
Other comprehensive income | (1,884) | (1,884) | |||||
Amounts reclassified from Accumulated other comprehensive income | (2,333) | (2,333) | |||||
Distributions to noncontrolling interests | (9,980) | (9,980) | |||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | (2,544) | (8,087) | 5,543 | ||||
Purchase of treasury shares | (1,671) | (1,671) | |||||
Dividends declared per common share | (6,240) | (6,240) | |||||
Restricted share award dividend equivalents | 412 | 607 | 165 | (360) | |||
Ending Balance at Mar. 31, 2023 | 1,346,412 | 142 | 377,768 | (11,006) | 16,267 | 786,420 | 176,821 |
Beginning Balance at Dec. 31, 2023 | 1,516,387 | 142 | 387,210 | (10,261) | 22,865 | 882,943 | 233,488 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 12,665 | 5,581 | 7,084 | ||||
Other comprehensive income | 4,727 | 4,727 | |||||
Amounts reclassified from Accumulated other comprehensive income | (4,181) | (4,181) | |||||
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 | (3,180) | (12,749) | 9,569 | ||||
Dividends declared per common share | (6,470) | (6,470) | |||||
Restricted share award dividend equivalents | 612 | 694 | 61 | (143) | |||
Ending Balance at Mar. 31, 2024 | $ 1,475,650 | $ 142 | $ 375,155 | $ (631) | $ 23,411 | $ 881,911 | $ 195,662 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock awards, stock option exercises and other shares issued to employees and directors, tax | $ 0 | $ 0 |
Number of common shares issued for cash (in shares) | 256 | 201 |
Treasury shares purchased (in shares) | 49 | |
Dividends declared, per common share (in dollars per share) | $ 0.190 | $ 0.185 |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Recently Issued Accounting Standards | Basis of Presentation and Recently Issued Accounting Standards These Condensed Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). Controlled subsidiaries include majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. ELEMENT, LLC ("ELEMENT"), formerly a joint venture ethanol plant within the Renewables segment, was deconsolidated from the Company's Condensed Consolidated Financial Statements in the second quarter of 2023. The Andersons Marathon Holdings LLC ("TAMH") is the Company’s only remaining VIE. The portion of these entities that is not owned by the Company is presented as noncontrolling interests. All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated entities in which the Company has significant influence, but not control, are accounted for using the equity method of accounting. In the opinion of management, all adjustments consisting of normal and recurring items considered necessary for the fair presentation of the results of operations, financial position, and cash flows for the periods indicated have been made. The results in these Condensed Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. An unaudited Condensed Consolidated Balance Sheet as of March 31, 2023 has been included as the Company operates in several seasonal industries. The Condensed Consolidated Balance Sheet data at December 31, 2023 was derived from the audited Consolidated Financial Statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in The Andersons, Inc. Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This guidance will be effective for the annual periods beginning with the year ended December 31, 2024, and for interim periods beginning January 1, 2025. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning with the year ended December 31, 2025. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. We do not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major classes of inventories are presented below. Readily Marketable Inventories ("RMI") are agricultural commodity inventories such as corn, soybeans, wheat, and ethanol co-products, among others, carried at net realizable value which approximates fair value based on their commodity characteristics, widely available market information, and pricing mechanisms. The net realizable value of RMI is calculated as the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. All other inventories are held at lower of cost or net realizable value. (in thousands) March 31, December 31, March 31, Grain and other agricultural products (a) $ 669,373 $ 886,725 $ 1,112,155 Energy inventories (a) 14,454 21,705 17,641 Ethanol and co-products (a) 104,878 104,349 147,275 Plant nutrients and cob products 205,838 153,921 274,030 Total inventories $ 994,543 $ 1,166,700 $ 1,551,101 (a) Includes RMI of $635.5 million, $862.5 million, and $1,085.7 million at March 31, 2024, December 31, 2023, and March 31, 2023, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of Property, plant and equipment, net are as follows: (in thousands) March 31, December 31, March 31, Land $ 30,626 $ 30,912 $ 38,000 Land improvements and leasehold improvements 82,541 82,438 91,503 Buildings and storage facilities 366,790 365,744 362,451 Machinery and equipment 959,920 951,544 917,269 Construction in progress 45,327 36,541 48,158 1,485,204 1,467,179 1,457,381 Less: accumulated depreciation 796,091 773,814 778,664 Property, plant and equipment, net $ 689,113 $ 693,365 $ 678,717 Depreciation expense on property, plant, and equipment was $24.7 million and $26.2 million for three months ended March 31, 2024, and 2023, respectively. In the first quarter of 2023, the Company recorded a $87.2 million impairment charge related to ELEMENT. The plant faced operational and market-based challenges which were exacerbated by a shift in the California Low Carbon Fuel Standard credit markets and high western corn basis. At the time of the impairment, the Company owned 51% of ELEMENT and it was a consolidated entity, as such, 49% of the impairment charge was represented in Net income (loss) attributable to noncontrolling interests in the Company's Condensed Consolidated Statements of Operations. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The total borrowing capacity of the Company's lines of credit at March 31, 2024, was $1,859.1 million, of which, the Company had a total of $1,845.6 million available for borrowing. The Company's borrowing capacity is reduced by a combination of outstanding borrowings and letters of credit. As of March 31, 2024, December 31, 2023 and March 31, 2023, the estimated fair value of long-term debt, including the current portion, was $575.2 million, $585.1 million and $569.0 million, respectively. The Company estimates the fair value of its long-term debt based upon the Company’s credit standing and current interest rates offered to the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities. As part of the Company's ongoing covenant monitoring process in the prior year, the Company determined that ELEMENT was out of compliance with its working capital and owner's equity ratio covenants as of March 31, 2023. In addition, ELEMENT did not make its required February 2023 debt payment and subsequently received a default notice from the lender on February 17, 2023. As such, the $62.8 million of non-recourse debt associated with ELEMENT was classified in Current maturities of long-term debt as of March 31, 2023. On April 18, 2023, ELEMENT was placed into receivership and the related debt associated with ELEMENT was deconsolidated from the Company's Condensed Consolidated Financial Statements. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives 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 reduce the exposure to market price risk on commodities owned and forward purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. These contracts are primarily traded via regulated commodity exchanges. The Company’s forward purchase and sales contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Most contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year. Most of these contracts meet the definition of derivatives. While the Company considers its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges as defined under current accounting standards. The Company primarily accounts for its commodity derivatives at estimated fair value. The estimated fair value of the commodity derivative contracts that require the receipt or posting of cash collateral is recorded on a net basis (offset against cash collateral posted or received, also known as margin deposits) within commodity derivative assets or liabilities. Management determines fair value based on exchange-quoted prices and in the case of its forward purchase and sale contracts, estimated fair value is adjusted for differences in local markets and non-performance risk. For contracts for which physical delivery occurs, balance sheet classification is based on estimated delivery date. For futures, options and over-the-counter contracts in which physical delivery is not expected to occur but, rather, the contract is expected to be net settled, the Company classifies these contracts as current or noncurrent assets or liabilities, as appropriate, based on the Company’s expectations as to when such contracts will be settled. Realized and unrealized gains and losses in the value of commodity contracts (whether due to changes in commodity prices, changes in performance or credit risk, or due to sale, maturity or extinguishment of the commodity contract) and commodity inventories are included in cost of sales and merchandising revenues. Generally accepted accounting principles permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or obligation to return cash collateral under the same master netting arrangement. The Company has master netting arrangements for its exchange traded futures and options contracts and certain over-the-counter contracts. When the Company enters into a future, option or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a future, option or an over-the-counter contract moves in a direction that is adverse to the Company’s position, an additional margin deposit, called a maintenance margin, is required. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Condensed Consolidated Balance Sheets. The following table presents a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted/received as collateral. The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within Condensed Consolidated Balance Sheets in Commodity derivative assets (liabilities) - current or if long-term in nature, Other assets, net or Other long-term liabilities: (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Cash collateral paid $ 33,199 $ 24,439 $ 9,075 Fair value of derivatives 15,551 24,237 23,040 Net derivative asset position $ 48,750 $ 48,676 $ 32,115 The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities: March 31, 2024 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 200,835 $ 9,764 $ 9,879 $ 107 $ 220,585 Commodity derivative liabilities (53,722) (165) (78,647) (4,901) (137,435) Cash collateral paid 31,510 — 1,689 — 33,199 Balance sheet line item totals $ 178,623 $ 9,599 $ (67,079) $ (4,794) $ 116,349 December 31, 2023 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 201,542 $ 1,496 $ 7,868 $ 13 $ 210,919 Commodity derivative liabilities (47,898) (64) (98,717) (431) (147,110) Cash collateral paid 24,439 — — — 24,439 Balance sheet line item totals $ 178,083 $ 1,432 $ (90,849) $ (418) $ 88,248 March 31, 2023 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 284,879 $ 4,175 $ 13,431 $ 74 $ 302,559 Commodity derivative liabilities (71,918) (1,024) (121,414) (2,384) (196,740) Cash collateral paid 9,075 — — — 9,075 Balance sheet line item totals $ 222,036 $ 3,151 $ (107,983) $ (2,310) $ 114,894 The net pretax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line items in which they are located are as follows: Three months ended March 31, (in thousands) 2024 2023 Gains (losses) on commodity derivatives included in Cost of sales and merchandising revenues $ 19,342 $ (27,568) The Company's volumes of commodity derivative contracts outstanding (on a gross basis) are as follows: March 31, 2024 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 553,569 — — Soybeans 28,902 — — Wheat 90,195 — — Oats 32,437 — — Ethanol — 198,453 — Dried distillers grain — — 703 Soybean meal — — 450 Other 6,742 37,193 2,279 Subtotal 711,845 235,646 3,432 Exchange traded: Corn 174,300 — — Soybeans 36,115 — — Wheat 106,551 — — Oats 300 — — Ethanol — 58,944 — Propane — 104,580 — Other — 1,302 505 Subtotal 317,266 164,826 505 Total 1,029,111 400,472 3,937 December 31, 2023 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 519,825 — — Soybeans 41,848 — — Wheat 66,953 — — Oats 15,355 — — Ethanol — 206,986 — Dried distillers grain — — 740 Soybean meal — — 546 Other 6,847 37,153 1,882 Subtotal 650,828 244,139 3,168 Exchange traded: Corn 160,795 — — Soybeans 34,250 — — Wheat 64,778 — — Oats 375 — — Ethanol — 97,272 — Propane — 74,550 — Other — 420 825 Subtotal 260,198 172,242 825 Total 911,026 416,381 3,993 March 31, 2023 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 572,079 — — Soybeans 50,184 — — Wheat 101,663 — — Oats 31,658 — — Ethanol — 200,591 — Dried distillers grain — — 399 Soybean meal — — 367 Other 10,237 44,120 1,966 Subtotal 765,821 244,711 2,732 Exchange traded: Corn 184,766 — — Soybeans 76,365 — — Wheat 83,618 — — Oats 1,125 — — Ethanol — 69,972 — Propane — 45,402 — Other — 1,134 551 Subtotal 345,874 116,508 551 Total 1,111,695 361,219 3,283 Interest Rate and Other Derivatives The Company’s objectives for using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The gains or losses on the derivatives designated as hedging instruments are recorded in Other comprehensive income (loss) and subsequently reclassified into Interest expense, net in the same periods during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive income related to derivatives will be reclassified to Interest expense, net as interest payments are made on the Company’s variable-rate debt. In the case where interest rate derivatives are settled prior to maturity, the gain or loss is recorded in Other income, net within the Condensed Consolidated Statements of Operations. The Company had recorded the following amounts for the fair value of the other derivatives: (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Derivatives not designated as hedging instruments Foreign currency contracts included in Other current assets (liabilities) $ (793) $ 907 $ 4,260 Derivatives designated as hedging instruments Interest rate contracts included in Other current assets $ 10,281 $ 9,968 $ 8,265 Interest rate contracts included in Other assets 22,579 18,041 16,779 The recording of gains and losses on other derivatives and the financial statement line in which they are located are as follows: Three months ended March 31, (in thousands) 2024 2023 Derivatives designated as hedging instruments Interest rate derivative gains (losses) included in Other comprehensive income (loss) $ 4,843 $ (6,407) Interest rate derivative gains included in Interest expense, net 3,385 2,105 Interest rate derivative gains included in Other income, net 568 — Outstanding interest rate derivatives, as of March 31, 2024, are as follows: Interest Rate Hedging Instrument Year Entered Year of Maturity Notional Amount Description Interest Rate Swap 2019 2025 $ 92.2 Interest rate component of debt - accounted for as a hedge 2.3% Swap 2019 2025 $ 46.1 Interest rate component of debt - accounted for as a hedge 2.4% Swap 2019 2025 $ 46.1 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% Swap 2023 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 3.7% Swap 2023 2031 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.9% |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
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, Revenue from Contracts with Customers . 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: Three months ended March 31, (in thousands) 2024 2023 Revenues under ASC 606 $ 648,843 $ 738,978 Revenues under ASC 815 2,069,374 3,142,260 Total revenues $ 2,718,217 $ 3,881,238 The remainder of this note applies only to those revenues that are accounted for under ASC 606. Disaggregation of revenue The following tables disaggregate revenues under ASC 606 by major product/service line: Three months ended March 31, 2024 (in thousands) Trade Renewables Nutrient & Industrial Total Specialty nutrients $ — $ — $ 69,724 $ 69,724 Primary nutrients — — 67,312 67,312 Products and co-products 102,344 306,165 — 408,509 Propane 69,796 — — 69,796 Other 1,973 1,247 30,282 33,502 Total $ 174,113 $ 307,412 $ 167,318 $ 648,843 Three months ended March 31, 2023 (in thousands) Trade Renewables Nutrient & Industrial Total Specialty nutrients $ — $ — $ 69,997 $ 69,997 Primary nutrients — — 64,750 64,750 Products and co-products 88,966 394,609 — 483,575 Propane 76,523 — — 76,523 Other 12,590 2,348 29,195 44,133 Total $ 178,079 $ 396,957 $ 163,942 $ 738,978 Substantially all of the Company's revenues accounted for under ASC 606 during the periods presented in the preceding tables are recorded at a point in time instead of over time. Contract balances The balances of the Company’s contract liabilities were $80.5 million and $30.7 million as of March 31, 2024 and December 31, 2023, respectively. The difference between the opening and closing balances of the Company’s contract liabilities is primarily a result of timing differences between the Company’s performance and the customer’s payment. The main driver of the contract liabilities balance are payments for primary and specialty nutrients within the Nutrient & Industrial segment received in advance of fulfilling our performance obligations under our customer contracts. Due to seasonality of this business, contract liabilities are built up through the first quarter in preparation for the spring application season. Revenue is then recognized in the Nutrient & Industrial segment throughout the spring application season as the Company fulfills its contract obligations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Three months ended March 31, (in thousands) 2024 2023 Income (loss) before income taxes $ 13,968 $ (65,001) Income tax provision (benefit) 1,303 (5,884) Effective tax rate 9.3 % 9.1 % On a quarterly basis, the Company estimates the effective tax rate expected to be applicable for the full year and makes changes, if necessary, based on new information or events. The estimated annual effective tax rate is forecasted based on actual historical information and forward-looking estimates and is used to provide for income taxes in interim reporting periods. The Company also recognizes the tax impact of certain unusual or infrequently occurring items, such as the effects of changes in tax laws or rates and impacts from settlements with tax authorities, discretely in the quarter in which they occur. The difference between the 9.3% effective tax rate and the U.S. federal statutory tax rate of 21.0% for the three months ended March 31, 2024 is primarily attributable to the tax impact of non-controlling interest, stock based compensation, and federal tax credits offset by state and local income taxes, nondeductible compensation, and other discrete tax items. The difference between the 9.1% effective tax rate and the U.S. federal statutory rate of 21.0% for the three months ended March 31, 2023 is primarily attributable to the tax impact of non-controlling interest, state and local income taxes, and nondeductible compensation. During the three months ended March 31, 2023, a discrete income tax benefit of $12.0 million was recorded on a loss before income taxes of $94.7 million from ELEMENT operations, which included an $87.2 million impairment charge. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated other comprehensive income ("AOCI") attributable to the Company: Three months ended March 31, (in thousands) 2024 2023 Currency Translation Adjustment Beginning balance $ (2,581) $ (8,203) Other comprehensive income (loss) before reclassifications (2,918) 767 Tax effect — — Other comprehensive income (loss), net of tax (2,918) 767 Ending balance $ (5,499) $ (7,436) Hedging Adjustment Beginning balance $ 20,985 $ 23,546 Other comprehensive income (loss) before reclassifications 8,796 (4,302) Amounts reclassified from AOCI (a) (3,953) (2,105) Tax effect (1,204) 1,611 Other comprehensive income (loss), net of tax 3,639 (4,796) Ending balance $ 24,624 $ 18,750 Pension and Other Postretirement Adjustment Beginning balance $ 4,203 $ 4,883 Other comprehensive income (loss) before reclassifications 5 (14) Amounts reclassified from AOCI (b) (228) (228) Tax effect 48 54 Other comprehensive income (loss), net of tax (175) (188) Ending balance $ 4,028 $ 4,695 Investments in Convertible Preferred Securities Adjustment Beginning balance $ 258 $ 258 Other comprehensive income (loss), net of tax — — Ending balance $ 258 $ 258 Total AOCI Ending Balance $ 23,411 $ 16,267 (a) Amounts reclassified from gain (loss) on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings. Gains and losses from interest rate derivatives are recognized in Interest expense, net as interest payments are made on the Company's variable rate debt. When interest rate derivatives are settled prior to maturity the gain or loss is recognized in Other income, net. See Note 5 for additional information. (b) This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost recorded in Operating, administrative and general expenses. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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: (in thousands) March 31, 2024 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 48,750 $ 67,599 $ — $ 116,349 Provisionally priced contracts (b) (86,176) (30,709) — (116,885) Convertible preferred securities (c) — — 15,625 15,625 Other assets and liabilities (d) 5,525 32,860 — 38,385 Total $ (31,901) $ 69,750 $ 15,625 $ 53,474 (in thousands) December 31, 2023 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 48,676 $ 39,572 $ — $ 88,248 Provisionally priced contracts (b) (108,736) (65,343) — (174,079) Convertible preferred securities (c) — — 15,625 15,625 Other assets and liabilities (d) 5,477 28,009 — 33,486 Total $ (54,583) $ 2,238 $ 15,625 $ (36,720) (in thousands) March 31, 2023 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 32,115 $ 82,779 $ — $ 114,894 Provisionally priced contracts (b) (16,187) (52,150) — (68,337) Convertible preferred securities (c) — — 15,410 15,410 Other assets and liabilities (d) 8,357 24,983 — 33,340 Total $ 24,285 $ 55,612 $ 15,410 $ 95,307 (a) Includes associated cash posted/received as collateral. (b) Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2). (c) Recorded in “Other assets, net” on the Company’s Condensed Consolidated Balance Sheets related to certain available for sale securities. (d) Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans and foreign exchange derivative contracts (Level 1), as well as interest rate derivatives (Level 2). Level 1 commodity derivatives reflect the fair value of the exchanged-traded futures and options contracts that the Company holds, net of the cash collateral, that the Company has in its margin account. The majority of the Company’s assets and liabilities measured at fair value are based on the market approach valuation technique. With the market approach, fair value is derived using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s net commodity derivatives primarily consist of futures or options contracts via regulated exchanges and contracts with producers or customers under which the future settlement date and bushels (or gallons in the case of ethanol contracts) of commodities to be delivered (primarily wheat, corn, soybeans and ethanol) are fixed and under which the price may or may not be fixed. Depending on the specifics of the individual contracts, the fair value is derived from the futures or options prices quoted on various exchanges for similar commodities and delivery dates as well as observable quotes for local basis adjustments (the difference, which is attributable to local market conditions, between the quoted futures price and the local cash price). Because “basis” for a particular commodity and location typically has multiple quoted prices from other agribusinesses in the same geographical vicinity and is used as a common pricing mechanism in the agribusiness industry, the Company has concluded that “basis” is typically a Level 2 fair value input for purposes of the fair value disclosure requirements related to our commodity derivatives, depending on the specific commodity. Although nonperformance risk, both of the Company and the counterparty, is present in each of these commodity contracts and is a component of the estimated fair values, based on the Company’s historical experience with its producers and customers and the Company’s knowledge of their businesses, the Company does not view nonperformance risk to be a significant input to fair value for these commodity contracts. These fair value disclosures exclude RMI which consists of agricultural commodity inventories measured at net realizable value. The net realizable value used to measure the Company’s agricultural commodity inventories is the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. This valuation would generally be considered Level 2. The amount of RMI is disclosed in Note 2. Changes in the net realizable value of commodity inventories are recognized as a component of cost of sales and merchandising revenues. Provisionally priced contract liabilities are those for which the Company has taken ownership and possession of grain, but the final purchase price has not been established. In the case of payables where the unpriced portion of the contract is limited to the futures price of the underlying commodity or the Company has delivered provisionally priced grain and a subsequent payable or receivable is set up for any future changes in the grain price, quoted exchange prices are used and the liability is deemed to be Level 1 in the fair value hierarchy. For all other unpriced contracts which include variable futures and basis components, the amounts recorded for delayed price contracts are determined on the basis of local grain market prices at the balance sheet date and, as such, are deemed to be Level 2 in the fair value hierarchy. The convertible preferred securities are interests in several early-stage enterprises that may be in various forms, such as convertible debt or preferred equity securities. A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: Convertible Preferred Securities (in thousands) 2024 2023 Assets at January 1, $ 15,625 $ 16,278 Gains included in Other income, net — 802 Proceeds from investments — (1,670) Assets at March 31, $ 15,625 $ 15,410 The following tables summarize quantitative information about the Company's Level 3 fair value measurements: Quantitative Information about Recurring Level 3 Fair Value Measurements Fair Value as of (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 15,625 $ 15,625 $ 15,410 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 Fair Value as of (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Valuation Method Unobservable Input Weighted Average Ethanol Plant Assets (a) $ — $ — $ 41,673 Various Various N/A (a) The Company recognized impairment charges on ELEMENT ethanol plant assets in Colwich, Kansas. The fair value of the assets was determined by a third-party consultant using a discounted cash flow method and a market approach. Both of these methods were given probability weightings based on management's assessment of the ethanol plant's future operations to arrive at the fair value of the ethanol plant assets. The discounted cash flow model is determined by discounting the projected free cash flows using an appropriate discount rate. Key assumptions in the projections of future cash flows used in the consultant's model included input costs (corn, natural gas, etc.), production days, and co-product premiums. The market approach analyzed enterprise value to ethanol production capacity multiples for a group of guideline public companies as well as recent mergers and acquisition transactions. Using these multiples as a baseline, the consultant applied selected multiples to the ELEMENT plant production capacity to arrive at an indicated fair value. These measures are considered Level 3 inputs on a nonrecurring basis. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties In the ordinary course of business, and on an arm's length basis, the Company will enter into related party transactions with the minority shareholder of the Company's Renewables operations and certain equity method investments that the Company holds, along with other related parties. The following table sets forth the related party transactions entered into for the time periods presented: Three months ended March 31, (in thousands) 2024 2023 Sales of products $ 61,611 $ 74,951 Purchases of products 8,292 15,702 (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Accounts receivable $ 14,504 $ 6,732 $ 10,350 Accounts payable 5,333 3,901 2,800 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
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 structure of management. The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The Renewables business produces ethanol and co-products through its four co-owned and fully consolidated ethanol production facilities as well as purchases and sells ethanol and ethanol co-products. The Nutrient & Industrial business manufactures and distributes plant nutrient products such as agricultural inputs, primarily fertilizers and turf care products along with industrial products such as deicers, dust abatement solutions and corncob-based products. The Other category includes other corporate level costs not attributable to an operating segment and intercompany eliminations between the segments. The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. The Company does not have any customers who represent 10 percent or more of total revenues. Three months ended March 31, (in thousands) 2024 2023 Revenues from external customers Trade $ 1,893,859 $ 2,877,780 Renewables 657,039 839,516 Nutrient & Industrial 167,319 163,942 Total $ 2,718,217 $ 3,881,238 Three months ended March 31, (in thousands) 2024 2023 Income (loss) before income taxes Trade $ 5,924 $ 39,364 Renewables (a) 22,791 (82,513) Nutrient & Industrial (1,850) (10,438) Other (12,897) (11,414) Total $ 13,968 $ (65,001) (a) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation activities The Company is party to litigation, or threats thereof, both as defendant and plaintiff with some regularity, although individual cases that are material in size occur infrequently. As a defendant, the Company establishes reserves for claimed amounts that are considered probable and capable of estimation. If those cases are resolved for lesser amounts, the excess reserves are taken into income and, conversely, if those cases are resolved for larger than the amount the Company has accrued, the Company records additional expense. The Company believes it is unlikely that the results of its current legal proceedings for which it is the defendant, even if unfavorable, will be material. As a plaintiff, amounts that are collected can also result in sudden, non-recurring income. Litigation results depend upon a variety of factors, including the availability of evidence, the credibility of witnesses, the performance of counsel, the state of the law, and the impressions of judges and jurors, any of which can be critical in importance, yet difficult, if not impossible, to predict. Consequently, cases currently pending, or future matters, may result in unexpected, and non-recurring losses, or income, from time to time. Finally, litigation results are often subject to judicial reconsideration, appeal and further negotiation by the parties, and as a result, the final impact of a particular judicial decision may be unknown for some time or may result in continued reserves to account for the potential of such post-verdict actions. The estimated losses for outstanding claims that are considered reasonably possible are not material. |
Other Income
Other Income | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Other Income | Other Income, net The following table sets forth the items in Other income, net within the Condensed Consolidated Statements of Operations: Three months ended March 31, (in thousands) 2024 2023 Interest income $ 4,682 $ 1,467 Gain on deconsolidation of joint venture 3,117 — Patronage income 2,869 2,629 Property insurance recoveries — 1,000 Other 860 2,908 Total $ 11,528 $ 8,004 Individually significant items included in the table above are: Interest income - In 2024 and 2023, the vast majority of interest income recorded by the Company was due to the amount of cash and cash equivalents on hand. Gain on deconsolidation of joint venture - On April 18, 2023, ELEMENT was placed into receivership. As the receiver took control of ELEMENT, under the VIE consolidation model, the Company was deemed to have lost control of the entity and therefore deconsolidated ELEMENT from its Condensed Consolidated Financial Statements. As a result of these activities, the Company recognized a gain on deconsolidation in the second quarter of 2023. The Company recognized an additional $3.1 million gain in the first quarter of 2024 as the amount of cash distributed to the Company related to its receivables from ELEMENT exceeded management's estimate at the time of deconsolidation. Patronage income - As a part of the Company’s normal operations it relies on short-term lines of credit to support working capital needs in addition to long-term debt. The Company receives patronage income from its lenders as a part of these programs. Property insurance recoveries - In 2023, all property insurance recoveries presented relate to a fire at a Michigan grain asset. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 30, 2024, the Company closed on the acquisition of Reed & Perrine Sales, Inc., a manufacturer and distributor of premium turf fertilizers and control products headquartered in New Jersey, for a purchase price of approximately $6.7 million plus working capital. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 5,581 | $ (14,750) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Conso
Basis of Presentation and Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This guidance will be effective for the annual periods beginning with the year ended December 31, 2024, and for interim periods beginning January 1, 2025. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning with the year ended December 31, 2025. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. We do not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory, Net [Abstract] | |
Classes of inventories | (in thousands) March 31, December 31, March 31, Grain and other agricultural products (a) $ 669,373 $ 886,725 $ 1,112,155 Energy inventories (a) 14,454 21,705 17,641 Ethanol and co-products (a) 104,878 104,349 147,275 Plant nutrients and cob products 205,838 153,921 274,030 Total inventories $ 994,543 $ 1,166,700 $ 1,551,101 (a) Includes RMI of $635.5 million, $862.5 million, and $1,085.7 million at March 31, 2024, December 31, 2023, and March 31, 2023, respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | The components of Property, plant and equipment, net are as follows: (in thousands) March 31, December 31, March 31, Land $ 30,626 $ 30,912 $ 38,000 Land improvements and leasehold improvements 82,541 82,438 91,503 Buildings and storage facilities 366,790 365,744 362,451 Machinery and equipment 959,920 951,544 917,269 Construction in progress 45,327 36,541 48,158 1,485,204 1,467,179 1,457,381 Less: accumulated depreciation 796,091 773,814 778,664 Property, plant and equipment, net $ 689,113 $ 693,365 $ 678,717 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within Condensed Consolidated Balance Sheets in Commodity derivative assets (liabilities) - current or if long-term in nature, Other assets, net or Other long-term liabilities: (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Cash collateral paid $ 33,199 $ 24,439 $ 9,075 Fair value of derivatives 15,551 24,237 23,040 Net derivative asset position $ 48,750 $ 48,676 $ 32,115 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities: March 31, 2024 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 200,835 $ 9,764 $ 9,879 $ 107 $ 220,585 Commodity derivative liabilities (53,722) (165) (78,647) (4,901) (137,435) Cash collateral paid 31,510 — 1,689 — 33,199 Balance sheet line item totals $ 178,623 $ 9,599 $ (67,079) $ (4,794) $ 116,349 December 31, 2023 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 201,542 $ 1,496 $ 7,868 $ 13 $ 210,919 Commodity derivative liabilities (47,898) (64) (98,717) (431) (147,110) Cash collateral paid 24,439 — — — 24,439 Balance sheet line item totals $ 178,083 $ 1,432 $ (90,849) $ (418) $ 88,248 March 31, 2023 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 284,879 $ 4,175 $ 13,431 $ 74 $ 302,559 Commodity derivative liabilities (71,918) (1,024) (121,414) (2,384) (196,740) Cash collateral paid 9,075 — — — 9,075 Balance sheet line item totals $ 222,036 $ 3,151 $ (107,983) $ (2,310) $ 114,894 |
Company's Condensed Consolidated Statement of Income gains and location of line items | The net pretax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line items in which they are located are as follows: Three months ended March 31, (in thousands) 2024 2023 Gains (losses) on commodity derivatives included in Cost of sales and merchandising revenues $ 19,342 $ (27,568) The recording of gains and losses on other derivatives and the financial statement line in which they are located are as follows: Three months ended March 31, (in thousands) 2024 2023 Derivatives designated as hedging instruments Interest rate derivative gains (losses) included in Other comprehensive income (loss) $ 4,843 $ (6,407) Interest rate derivative gains included in Interest expense, net 3,385 2,105 Interest rate derivative gains included in Other income, net 568 — |
Amounts of quantities outstanding included in commodity derivative contracts | The Company's volumes of commodity derivative contracts outstanding (on a gross basis) are as follows: March 31, 2024 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 553,569 — — Soybeans 28,902 — — Wheat 90,195 — — Oats 32,437 — — Ethanol — 198,453 — Dried distillers grain — — 703 Soybean meal — — 450 Other 6,742 37,193 2,279 Subtotal 711,845 235,646 3,432 Exchange traded: Corn 174,300 — — Soybeans 36,115 — — Wheat 106,551 — — Oats 300 — — Ethanol — 58,944 — Propane — 104,580 — Other — 1,302 505 Subtotal 317,266 164,826 505 Total 1,029,111 400,472 3,937 December 31, 2023 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 519,825 — — Soybeans 41,848 — — Wheat 66,953 — — Oats 15,355 — — Ethanol — 206,986 — Dried distillers grain — — 740 Soybean meal — — 546 Other 6,847 37,153 1,882 Subtotal 650,828 244,139 3,168 Exchange traded: Corn 160,795 — — Soybeans 34,250 — — Wheat 64,778 — — Oats 375 — — Ethanol — 97,272 — Propane — 74,550 — Other — 420 825 Subtotal 260,198 172,242 825 Total 911,026 416,381 3,993 March 31, 2023 (in thousands) Number of Bushels Number of Gallons Number of Tons Non-exchange traded: Corn 572,079 — — Soybeans 50,184 — — Wheat 101,663 — — Oats 31,658 — — Ethanol — 200,591 — Dried distillers grain — — 399 Soybean meal — — 367 Other 10,237 44,120 1,966 Subtotal 765,821 244,711 2,732 Exchange traded: Corn 184,766 — — Soybeans 76,365 — — Wheat 83,618 — — Oats 1,125 — — Ethanol — 69,972 — Propane — 45,402 — Other — 1,134 551 Subtotal 345,874 116,508 551 Total 1,111,695 361,219 3,283 |
Schedule of Fair Value of Interest Rate Derivative Liabilities | The Company had recorded the following amounts for the fair value of the other derivatives: (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Derivatives not designated as hedging instruments Foreign currency contracts included in Other current assets (liabilities) $ (793) $ 907 $ 4,260 Derivatives designated as hedging instruments Interest rate contracts included in Other current assets $ 10,281 $ 9,968 $ 8,265 Interest rate contracts included in Other assets 22,579 18,041 16,779 |
Schedule of Outstanding Interest Rate Derivatives | Outstanding interest rate derivatives, as of March 31, 2024, are as follows: Interest Rate Hedging Instrument Year Entered Year of Maturity Notional Amount Description Interest Rate Swap 2019 2025 $ 92.2 Interest rate component of debt - accounted for as a hedge 2.3% Swap 2019 2025 $ 46.1 Interest rate component of debt - accounted for as a hedge 2.4% Swap 2019 2025 $ 46.1 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% Swap 2023 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 3.7% Swap 2023 2031 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.9% |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: Three months ended March 31, (in thousands) 2024 2023 Revenues under ASC 606 $ 648,843 $ 738,978 Revenues under ASC 815 2,069,374 3,142,260 Total revenues $ 2,718,217 $ 3,881,238 |
Schedule of Disaggregation of Revenues | The following tables disaggregate revenues under ASC 606 by major product/service line: Three months ended March 31, 2024 (in thousands) Trade Renewables Nutrient & Industrial Total Specialty nutrients $ — $ — $ 69,724 $ 69,724 Primary nutrients — — 67,312 67,312 Products and co-products 102,344 306,165 — 408,509 Propane 69,796 — — 69,796 Other 1,973 1,247 30,282 33,502 Total $ 174,113 $ 307,412 $ 167,318 $ 648,843 Three months ended March 31, 2023 (in thousands) Trade Renewables Nutrient & Industrial Total Specialty nutrients $ — $ — $ 69,997 $ 69,997 Primary nutrients — — 64,750 64,750 Products and co-products 88,966 394,609 — 483,575 Propane 76,523 — — 76,523 Other 12,590 2,348 29,195 44,133 Total $ 178,079 $ 396,957 $ 163,942 $ 738,978 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income ("AOCI") attributable to the Company: Three months ended March 31, (in thousands) 2024 2023 Currency Translation Adjustment Beginning balance $ (2,581) $ (8,203) Other comprehensive income (loss) before reclassifications (2,918) 767 Tax effect — — Other comprehensive income (loss), net of tax (2,918) 767 Ending balance $ (5,499) $ (7,436) Hedging Adjustment Beginning balance $ 20,985 $ 23,546 Other comprehensive income (loss) before reclassifications 8,796 (4,302) Amounts reclassified from AOCI (a) (3,953) (2,105) Tax effect (1,204) 1,611 Other comprehensive income (loss), net of tax 3,639 (4,796) Ending balance $ 24,624 $ 18,750 Pension and Other Postretirement Adjustment Beginning balance $ 4,203 $ 4,883 Other comprehensive income (loss) before reclassifications 5 (14) Amounts reclassified from AOCI (b) (228) (228) Tax effect 48 54 Other comprehensive income (loss), net of tax (175) (188) Ending balance $ 4,028 $ 4,695 Investments in Convertible Preferred Securities Adjustment Beginning balance $ 258 $ 258 Other comprehensive income (loss), net of tax — — Ending balance $ 258 $ 258 Total AOCI Ending Balance $ 23,411 $ 16,267 (a) Amounts reclassified from gain (loss) on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings. Gains and losses from interest rate derivatives are recognized in Interest expense, net as interest payments are made on the Company's variable rate debt. When interest rate derivatives are settled prior to maturity the gain or loss is recognized in Other income, net. See Note 5 for additional information. (b) This accumulated other comprehensive loss 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) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: (in thousands) March 31, 2024 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 48,750 $ 67,599 $ — $ 116,349 Provisionally priced contracts (b) (86,176) (30,709) — (116,885) Convertible preferred securities (c) — — 15,625 15,625 Other assets and liabilities (d) 5,525 32,860 — 38,385 Total $ (31,901) $ 69,750 $ 15,625 $ 53,474 (in thousands) December 31, 2023 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 48,676 $ 39,572 $ — $ 88,248 Provisionally priced contracts (b) (108,736) (65,343) — (174,079) Convertible preferred securities (c) — — 15,625 15,625 Other assets and liabilities (d) 5,477 28,009 — 33,486 Total $ (54,583) $ 2,238 $ 15,625 $ (36,720) (in thousands) March 31, 2023 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 32,115 $ 82,779 $ — $ 114,894 Provisionally priced contracts (b) (16,187) (52,150) — (68,337) Convertible preferred securities (c) — — 15,410 15,410 Other assets and liabilities (d) 8,357 24,983 — 33,340 Total $ 24,285 $ 55,612 $ 15,410 $ 95,307 (a) Includes associated cash posted/received as collateral. (b) Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2). (c) Recorded in “Other assets, net” on the Company’s Condensed Consolidated Balance Sheets related to certain available for sale securities. (d) Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans and foreign exchange derivative contracts (Level 1), as well as interest rate derivatives (Level 2). |
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: Convertible Preferred Securities (in thousands) 2024 2023 Assets at January 1, $ 15,625 $ 16,278 Gains included in Other income, net — 802 Proceeds from investments — (1,670) Assets at March 31, $ 15,625 $ 15,410 |
Fair Value Inputs, Assets, Quantitative Information | The following tables summarize quantitative information about the Company's Level 3 fair value measurements: Quantitative Information about Recurring Level 3 Fair Value Measurements Fair Value as of (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 15,625 $ 15,625 $ 15,410 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 Fair Value as of (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Valuation Method Unobservable Input Weighted Average Ethanol Plant Assets (a) $ — $ — $ 41,673 Various Various N/A (a) The Company recognized impairment charges on ELEMENT ethanol plant assets in Colwich, Kansas. The fair value of the assets was determined by a third-party consultant using a discounted cash flow method and a market approach. Both of these methods were given probability weightings based on management's assessment of the ethanol plant's future operations to arrive at the fair value of the ethanol plant assets. The discounted cash flow model is determined by discounting the projected free cash flows using an appropriate discount rate. Key assumptions in the projections of future cash flows used in the consultant's model included input costs (corn, natural gas, etc.), production days, and co-product premiums. The market approach analyzed enterprise value to ethanol production capacity multiples for a group of guideline public companies as well as recent mergers and acquisition transactions. Using these multiples as a baseline, the consultant applied selected multiples to the ELEMENT plant production capacity to arrive at an indicated fair value. These measures are considered Level 3 inputs on a nonrecurring basis. |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following table sets forth the related party transactions entered into for the time periods presented: Three months ended March 31, (in thousands) 2024 2023 Sales of products $ 61,611 $ 74,951 Purchases of products 8,292 15,702 (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Accounts receivable $ 14,504 $ 6,732 $ 10,350 Accounts payable 5,333 3,901 2,800 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. The Company does not have any customers who represent 10 percent or more of total revenues. Three months ended March 31, (in thousands) 2024 2023 Revenues from external customers Trade $ 1,893,859 $ 2,877,780 Renewables 657,039 839,516 Nutrient & Industrial 167,319 163,942 Total $ 2,718,217 $ 3,881,238 Three months ended March 31, (in thousands) 2024 2023 Income (loss) before income taxes Trade $ 5,924 $ 39,364 Renewables (a) 22,791 (82,513) Nutrient & Industrial (1,850) (10,438) Other (12,897) (11,414) Total $ 13,968 $ (65,001) (a) |
Other Income (Tables)
Other Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income | The following table sets forth the items in Other income, net within the Condensed Consolidated Statements of Operations: Three months ended March 31, (in thousands) 2024 2023 Interest income $ 4,682 $ 1,467 Gain on deconsolidation of joint venture 3,117 — Patronage income 2,869 2,629 Property insurance recoveries — 1,000 Other 860 2,908 Total $ 11,528 $ 8,004 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Inventory, Net [Abstract] | |||
Grain and other agricultural products | $ 669,373 | $ 886,725 | $ 1,112,155 |
Frac sand and propane | 14,454 | 21,705 | 17,641 |
Ethanol and co-products | 104,878 | 104,349 | 147,275 |
Plant nutrients and cob products | 205,838 | 153,921 | 274,030 |
Total inventories | 994,543 | 1,166,700 | 1,551,101 |
Readily marketable inventory | $ 635,500 | $ 862,500 | $ 1,085,700 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Components of property, plant and equipment | |||
Land | $ 30,626 | $ 30,912 | $ 38,000 |
Land improvements and leasehold improvements | 82,541 | 82,438 | 91,503 |
Buildings and storage facilities | 366,790 | 365,744 | 362,451 |
Machinery and equipment | 959,920 | 951,544 | 917,269 |
Construction in progress | 45,327 | 36,541 | 48,158 |
Property, plant and equipment, gross | 1,485,204 | 1,467,179 | 1,457,381 |
Less: accumulated depreciation | 796,091 | 773,814 | 778,664 |
Property, plant and equipment, net | $ 689,113 | $ 693,365 | $ 678,717 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 24,700 | $ 26,200 |
Asset impairment | $ 0 | $ 87,156 |
Asset impairment, noncontrolling interest percent | 49% | |
Ethanol | ||
Property, Plant and Equipment [Line Items] | ||
Asset impairment | $ 87,200 | |
Element LLC | ||
Property, Plant and Equipment [Line Items] | ||
Ownership percentage by parent | 51% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Line of Credit Facility [Line Items] | |||
Current maturities of long-term debt | $ 27,617 | $ 27,561 | $ 85,567 |
ELEMENT Non-Recourse Debt | Nonrecourse | |||
Line of Credit Facility [Line Items] | |||
Current maturities of long-term debt | 62,800 | ||
Estimate of Fair Value Measurement | |||
Line of Credit Facility [Line Items] | |||
Long-term debt, fair value | 575,200 | $ 585,100 | $ 569,000 |
Line of credit | |||
Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | 1,859,100 | ||
Total available for borrowings under lines of credit | $ 1,845,600 |
Derivatives (Textual) (Details)
Derivatives (Textual) (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative [Line Items] | |
Maximum period in which contracts for the sale of grain to processors or other consumers extend (years) | 1 year |
Derivatives (Net Asset or Liabi
Derivatives (Net Asset or Liability Positions in Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | |||
Cash collateral paid | $ 33,199 | $ 24,439 | $ 9,075 |
Fair value of derivatives | 15,551 | 24,237 | 23,040 |
Net derivative asset position, net | $ 48,750 | $ 48,676 | $ 32,115 |
Derivatives (Gross Current and
Derivatives (Gross Current and Noncurrent Assets and Liabilities) (Details) - Commodity - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | $ 220,585 | $ 210,919 | $ 302,559 |
Commodity derivative liabilities | (137,435) | (147,110) | (196,740) |
Cash collateral paid | 33,199 | ||
Cash collateral paid | 24,439 | 9,075 | |
Total | 116,349 | 88,248 | 114,894 |
Commodity Derivative Assets - Current | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 200,835 | 201,542 | 284,879 |
Commodity derivative liabilities | (53,722) | (47,898) | (71,918) |
Cash collateral paid | 31,510 | ||
Cash collateral paid | 24,439 | 9,075 | |
Derivative assets | 178,623 | 178,083 | 222,036 |
Commodity Derivative Assets - Noncurrent | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 9,764 | 1,496 | 4,175 |
Commodity derivative liabilities | (165) | (64) | (1,024) |
Cash collateral paid | 0 | ||
Cash collateral paid | 0 | 0 | |
Derivative assets | 9,599 | 1,432 | 3,151 |
Commodity Derivative Liabilities - Current | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 9,879 | 7,868 | 13,431 |
Commodity derivative liabilities | (78,647) | (98,717) | (121,414) |
Cash collateral paid | 1,689 | ||
Cash collateral paid | 0 | 0 | |
Derivative Liability | (67,079) | (90,849) | (107,983) |
Commodity Derivative Liabilities - Noncurrent | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 107 | 13 | 74 |
Commodity derivative liabilities | (4,901) | (431) | (2,384) |
Cash collateral paid | 0 | ||
Cash collateral paid | 0 | 0 | |
Derivative Liability | $ (4,794) | $ (418) | $ (2,310) |
Derivatives (Pre-tax Gains and
Derivatives (Pre-tax Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives instruments recognized in earnings | $ 19,342 | $ (27,568) |
Designated as Hedging Instrument | Interest rate contracts | Other Comprehensive Income (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate derivative gains (losses) | 4,843 | (6,407) |
Designated as Hedging Instrument | Interest rate contracts | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate derivative gains (losses) | 3,385 | 2,105 |
Designated as Hedging Instrument | Interest rate contracts | Other income, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate derivative gains (losses) | $ 568 | $ 0 |
Derivatives (Volume of Contract
Derivatives (Volume of Contracts Outstanding) (Details) gal in Thousands, bu in Thousands, T in Thousands | Mar. 31, 2024 bu | Mar. 31, 2024 gal | Mar. 31, 2024 T | Dec. 31, 2023 bu | Dec. 31, 2023 gal | Dec. 31, 2023 T | Mar. 31, 2023 bu | Mar. 31, 2023 gal | Mar. 31, 2023 T |
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 1,029,111 | 400,472 | 3,937 | 911,026 | 416,381 | 3,993 | 1,111,695 | 361,219 | 3,283 |
Non-exchange Traded | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 711,845 | 235,646 | 3,432 | 650,828 | 244,139 | 3,168 | 765,821 | 244,711 | 2,732 |
Non-exchange Traded | Corn | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 553,569 | 0 | 0 | 519,825 | 0 | 0 | 572,079 | 0 | 0 |
Non-exchange Traded | Soybeans | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 28,902 | 0 | 0 | 41,848 | 0 | 0 | 50,184 | 0 | 0 |
Non-exchange Traded | Wheat | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 90,195 | 0 | 0 | 66,953 | 0 | 0 | 101,663 | 0 | 0 |
Non-exchange Traded | Oats | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 32,437 | 0 | 0 | 15,355 | 0 | 0 | 31,658 | 0 | 0 |
Non-exchange Traded | Ethanol | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 0 | 198,453 | 0 | 0 | 206,986 | 0 | 0 | 200,591 | 0 |
Non-exchange Traded | Dried distillers grain | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 0 | 0 | 703 | 0 | 0 | 740 | 0 | 0 | 399 |
Non-exchange Traded | Soybean meal | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 0 | 0 | 450 | 0 | 0 | 546 | 0 | 0 | 367 |
Non-exchange Traded | Other | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 6,742 | 37,193 | 2,279 | 6,847 | 37,153 | 1,882 | 10,237 | 44,120 | 1,966 |
Exchange Traded | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 317,266 | 164,826 | 505 | 260,198 | 172,242 | 825 | 345,874 | 116,508 | 551 |
Exchange Traded | Corn | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 174,300 | 0 | 0 | 160,795 | 0 | 0 | 184,766 | 0 | 0 |
Exchange Traded | Soybeans | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 36,115 | 0 | 0 | 34,250 | 0 | 0 | 76,365 | 0 | 0 |
Exchange Traded | Wheat | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 106,551 | 0 | 0 | 64,778 | 0 | 0 | 83,618 | 0 | 0 |
Exchange Traded | Oats | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 300 | 0 | 0 | 375 | 0 | 0 | 1,125 | 0 | 0 |
Exchange Traded | Ethanol | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 0 | 58,944 | 0 | 0 | 97,272 | 0 | 0 | 69,972 | 0 |
Exchange Traded | Propane | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 0 | 104,580 | 0 | 0 | 74,550 | 0 | 0 | 45,402 | 0 |
Exchange Traded | Other | |||||||||
Amounts of quantities outstanding included in commodity derivative contracts | |||||||||
Nonmonetary notional amount | 0 | 1,302 | 505 | 0 | 420 | 825 | 0 | 1,134 | 551 |
Derivatives (Fair Value of the
Derivatives (Fair Value of the Company's Other Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Not Designated as Hedging Instrument | Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative liabilities | $ 907 | ||
Derivative assets | $ (793) | $ 4,260 | |
Designated as Hedging Instrument | Other current assets | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative assets | 10,281,000 | 9,968 | 8,265 |
Designated as Hedging Instrument | Other Noncurrent Assets | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative assets | $ 22,579,000 | $ 18,041 | $ 16,779 |
Derivatives (Outstanding Intere
Derivatives (Outstanding Interest Rate Derivatives) (Details) - Long-term $ in Millions | Mar. 31, 2024 USD ($) |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0% |
Not Accounted for as Hedge | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Accounted for as Hedge | Swap 2.3% | |
Derivative [Line Items] | |
Notional amount | $ 92.2 |
Interest rate | 2.30% |
Accounted for as Hedge | Swap 2.4% | |
Derivative [Line Items] | |
Notional amount | $ 46.1 |
Interest rate | 2.40% |
Accounted for as Hedge | Swap 2.4% | |
Derivative [Line Items] | |
Notional amount | $ 46.1 |
Interest rate | 2.40% |
Accounted for as Hedge | Swap 0.0% to 0.8% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Accounted for as Hedge | Swap 0.0% to 0.8% | |
Derivative [Line Items] | |
Notional amount | 50 |
Accounted for as Hedge | Swap, 2.6% | |
Derivative [Line Items] | |
Notional amount | $ 20 |
Interest rate | 2.60% |
Accounted for as Hedge | Swap 2.0% | |
Derivative [Line Items] | |
Notional amount | $ 100 |
Interest rate | 2% |
Accounted for as Hedge | Swap 2.4% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.40% |
Accounted for as Hedge | Swap 3.7% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 3.70% |
Accounted for as Hedge | Swap 2.9% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.90% |
Revenue (Breakdown of Revenues
Revenue (Breakdown of Revenues by Accounting Standards) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | $ 648,843 | $ 738,978 |
Revenues from external customers | 2,718,217 | 3,881,238 |
Revenues under ASC 606 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 648,843 | 738,978 |
Revenues under ASC 815 | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from external customers | $ 2,069,374 | $ 3,142,260 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total | $ 648,843 | $ 738,978 |
Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 69,724 | 69,997 |
Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 67,312 | 64,750 |
Products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 408,509 | 483,575 |
Propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 69,796 | 76,523 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | 33,502 | 44,133 |
Trade | ||
Disaggregation of Revenue [Line Items] | ||
Total | 174,113 | 178,079 |
Trade | Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Trade | Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Trade | Products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 102,344 | 88,966 |
Trade | Propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 69,796 | 76,523 |
Trade | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | 1,973 | 12,590 |
Ethanol | ||
Disaggregation of Revenue [Line Items] | ||
Total | 307,412 | 396,957 |
Ethanol | Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Ethanol | Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Ethanol | Products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 306,165 | 394,609 |
Ethanol | Propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Ethanol | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | 1,247 | 2,348 |
Nutrient & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total | 167,318 | 163,942 |
Nutrient & Industrial | Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 69,724 | 69,997 |
Nutrient & Industrial | Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 67,312 | 64,750 |
Nutrient & Industrial | Products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Nutrient & Industrial | Propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Nutrient & Industrial | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | $ 30,282 | $ 29,195 |
Revenue (Textual) (Details)
Revenue (Textual) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract Liabilities | $ 80.5 | $ 30.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes [Line Items] | ||
Income (loss) before income taxes | $ 13,968 | $ (65,001) |
Income tax provision (benefit) | $ 1,303 | $ (5,884) |
Effective tax rate | (9.30%) | (9.10%) |
Asset impairment | $ 0 | $ 87,156 |
Element LLC | ||
Income Taxes [Line Items] | ||
Income (loss) before income taxes | 94,700 | |
Income tax provision (benefit) | (12,000) | |
Asset impairment | $ 87,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,516,387 | $ 1,429,769 |
Other comprehensive income (loss) | 546 | (4,217) |
Ending Balance | 1,475,650 | 1,346,412 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 22,865 | 20,484 |
Ending Balance | 23,411 | 16,267 |
Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | (2,581) | (8,203) |
Other comprehensive income (loss) before reclassifications | (2,918) | 767 |
Other Comprehensive Income (Loss), Tax | 0 | 0 |
Other comprehensive income (loss) | (2,918) | 767 |
Ending Balance | (5,499) | (7,436) |
Hedging Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 20,985 | 23,546 |
Other comprehensive income (loss) before reclassifications | 8,796 | (4,302) |
Amounts reclassified from accumulated other comprehensive income (loss) | (3,953) | (2,105) |
Other Comprehensive Income (Loss), Tax | (1,204) | 1,611 |
Other comprehensive income (loss) | 3,639 | (4,796) |
Ending Balance | 24,624 | 18,750 |
Pension and Other Postretirement Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 4,203 | 4,883 |
Other comprehensive income (loss) before reclassifications | 5 | (14) |
Amounts reclassified from accumulated other comprehensive income (loss) | (228) | (228) |
Other Comprehensive Income (Loss), Tax | 48 | 54 |
Other comprehensive income (loss) | (175) | (188) |
Ending Balance | 4,028 | 4,695 |
Investments in Convertible Preferred Securities Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 258 | 258 |
Other comprehensive income (loss) | 0 | 0 |
Ending Balance | $ 258 | $ 258 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Assets and liabilities measured at fair value on a recurring basis | |||
Commodity derivatives, net | $ 116,349 | $ 88,248 | $ 114,894 |
Provisionally priced contracts | (116,885) | (174,079) | (68,337) |
Convertible preferred securities | 15,625 | 15,625 | 15,410 |
Other assets and liabilities | 38,385 | 33,486 | 33,340 |
Total | 53,474 | (36,720) | 95,307 |
Level 1 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Commodity derivatives, net | 48,750 | 48,676 | 32,115 |
Provisionally priced contracts | (86,176) | (108,736) | (16,187) |
Convertible preferred securities | 0 | 0 | 0 |
Other assets and liabilities | 5,525 | 5,477 | 8,357 |
Total | (31,901) | (54,583) | 24,285 |
Level 2 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Commodity derivatives, net | 67,599 | 39,572 | 82,779 |
Provisionally priced contracts | (30,709) | (65,343) | (52,150) |
Convertible preferred securities | 0 | 0 | 0 |
Other assets and liabilities | 32,860 | 28,009 | 24,983 |
Total | 69,750 | 2,238 | 55,612 |
Level 3 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Commodity derivatives, net | 0 | 0 | 0 |
Provisionally priced contracts | 0 | 0 | 0 |
Convertible preferred securities | 15,625 | 15,625 | 15,410 |
Other assets and liabilities | 0 | 0 | 0 |
Total | $ 15,625 | $ 15,625 | $ 15,410 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Beginning and Ending Balances of Level 3 Measurements) (Details) - Level 3 - Convertible preferred securities - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation of Fair Value Measurements Using Level 3 | ||
Asset, beginning balance | $ 15,625 | $ 16,278 |
Gains included in Other income, net | 0 | 802 |
Proceeds from investments | 0 | (1,670) |
Asset, ending balance | $ 15,625 | $ 15,410 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information Level 3 Measurements ) (Details) - Level 3 - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Convertible preferred securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset fair value | $ 15,625 | $ 15,625 | $ 15,410 | $ 16,278 |
Implied based on market prices | Convertible preferred securities | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset fair value | 15,625 | 15,625 | 15,410 | |
Various | Ethanol Plant Assets | Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset fair value | $ 0 | $ 0 | $ 41,673 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Revenues from external customers | $ 2,718,217 | $ 3,881,238 | |
Purchases of product | 8,292 | 15,702 | |
Accounts receivable, net | 701,706 | 1,125,071 | $ 762,549 |
Related Party | |||
Related Party Transaction [Line Items] | |||
Revenues from external customers | 61,611 | 74,951 | |
Accounts receivable, net | 14,504 | 10,350 | 6,732 |
Accounts payable | $ 5,333 | $ 2,800 | $ 3,901 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) facility segment | Mar. 31, 2023 USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments (business segments) | segment | 3 | |
Net income (loss) attributable to noncontrolling interests | $ | $ 7,084 | $ (44,367) |
Number of facilities | facility | 4 |
Segment Information - Allocatio
Segment Information - Allocation of Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues from external customers | $ 2,718,217 | $ 3,881,238 |
Total | 13,968 | (65,001) |
Net income (loss) attributable to noncontrolling interests | 7,084 | (44,367) |
Operating Segments | Trade | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 1,893,859 | 2,877,780 |
Total | 5,924 | 39,364 |
Operating Segments | Renewables | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 657,039 | 839,516 |
Total | 22,791 | (82,513) |
Net income (loss) attributable to noncontrolling interests | 7,100 | (44,400) |
Operating Segments | Nutrient & Industrial | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 167,319 | 163,942 |
Total | (1,850) | (10,438) |
Other | ||
Segment Reporting Information [Line Items] | ||
Total | $ (12,897) | $ (11,414) |
Other Income - Schedule of Othe
Other Income - Schedule of Other Nonoperating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 4,682 | $ 1,467 |
Gain on deconsolidation of joint venture | 3,117 | 0 |
Patronage income | 2,869 | 2,629 |
Property insurance recoveries | 0 | 1,000 |
Other | 860 | 2,908 |
Total | $ 11,528 | $ 8,004 |
Other Income - Narrative (Detai
Other Income - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Gain on deconsolidation of joint venture | $ 3,117 | $ 0 |
Property insurance recoveries | $ 0 | $ 1,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Apr. 30, 2024 USD ($) |
Subsequent Event | Reed & Perrine Sales, Inc. | |
Subsequent Event [Line Items] | |
Consideration for acquisition | $ 6.7 |