Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35397 | |
Entity Registrant Name | RENEWABLE ENERGY GROUP, INC. | |
Entity Central Index Key | 0001463258 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-4785427 | |
Entity Address, Address Line One | 416 South Bell Avenue | |
Entity Address, City or Town | Ames | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 50010 | |
City Area Code | 515 | |
Local Phone Number | 239-8000 | |
Title of 12(b) Security | Common Stock, par value $.0001 per share | |
Trading Symbol | REGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 47,662,492 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 335,789 | $ 84,441 |
Marketable securities | 129,047 | 149,521 |
Accounts receivable (net of allowance for doubtful accounts) | 129,547 | 143,475 |
Inventories | 290,013 | 209,361 |
Prepaid expenses and other assets | 77,757 | 67,657 |
Restricted cash | 3,746 | 3,777 |
Total current assets | 965,899 | 658,232 |
Long-term marketable securities | 142,023 | 120,022 |
Property, plant and equipment, net | 594,895 | 594,796 |
Right of use assets | 36,479 | 28,840 |
Goodwill | 16,080 | 16,080 |
Intangible assets, net | 10,326 | 10,708 |
Other assets | 39,174 | 32,720 |
TOTAL ASSETS | 1,804,876 | 1,461,398 |
CURRENT LIABILITIES: | ||
Current maturities of long-term debt | 28,814 | 50,088 |
Current maturities of operating lease obligations | 16,061 | 14,581 |
Accounts payable | 110,858 | 132,938 |
Accrued expenses and other liabilities | 29,406 | 34,875 |
Deferred revenue | 9,224 | 13,488 |
Total current liabilities | 194,363 | 245,970 |
Deferred income taxes | 6,443 | 6,607 |
Long-term debt (net of debt issuance costs) | 15,113 | 15,158 |
Long-term operating lease obligations | 21,104 | 15,223 |
Other liabilities | 3,932 | 4,485 |
Total liabilities | 240,955 | 287,443 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Common stock | 6 | 5 |
Common stock—additional paid-in-capital | 733,011 | 392,247 |
Retained earnings | 930,433 | 891,211 |
Accumulated other comprehensive income | (350) | 1,160 |
Treasury stock | (99,179) | (110,668) |
Total equity | 1,563,921 | 1,173,955 |
TOTAL LIABILITIES AND EQUITY | $ 1,804,876 | $ 1,461,398 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,175 | $ 1,631 |
Debt issuance costs | $ 1,020 | $ 1,731 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares, outstanding (in shares) | 47,539,744 | 39,334,839 |
Treasury stock, shares outstanding (in shares) | 8,548,742 | 10,591,074 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUES: | ||
Revenues | $ 539,744 | $ 472,845 |
Total revenues | 539,744 | 472,957 |
COSTS OF GOODS SOLD | 465,942 | 367,396 |
GROSS PROFIT | 73,802 | 105,561 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 31,177 | 27,485 |
IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT | 822 | 0 |
INCOME FROM OPERATIONS | 41,803 | 78,076 |
OTHER INCOME (EXPENSE), NET: | ||
Gain (loss) on debt extinguishment | (1,922) | 1,172 |
Interest income | 1,312 | 0 |
Other income (expense) | 779 | (304) |
Interest expense | (1,117) | (2,946) |
Total other income (expense), net | (948) | (2,078) |
INCOME BEFORE INCOME TAXES | 40,855 | 75,998 |
INCOME TAX EXPENSE | (1,633) | (1,331) |
Net income | 39,222 | 74,667 |
LESS—EFFECT OF PARTICIPATING SHARE-BASED AWARDS | 639 | 1,509 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 38,583 | $ 73,158 |
Basic net income per share available to common stockholders: | ||
Net income per share (in dollars per share) | $ 0.95 | $ 1.88 |
Diluted net income per share available to common stockholders: | ||
Net income per share (in dollars per share) | $ 0.88 | $ 1.67 |
Weighted-average shares used to compute basic net income per share available to common stockholders: | ||
Basic (in shares) | 40,425,593 | 38,979,057 |
Weighted-average shares used to compute diluted net income per share available to common stockholders: | ||
Diluted (in shares) | 43,661,568 | 43,692,155 |
Bio-based diesel | ||
REVENUES: | ||
Revenues | $ 479,495 | $ 406,398 |
Bio-based diesel government incentives | ||
REVENUES: | ||
Revenues | 60,249 | 66,447 |
Other | ||
REVENUES: | ||
Total revenues | $ 0 | $ 112 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 39,222 | $ 74,667 |
Unrealized gains (losses) on marketable securities, net of taxes | (173) | 0 |
Foreign currency translation adjustments | (1,337) | (551) |
Other comprehensive loss | (1,510) | (551) |
Comprehensive income | $ 37,712 | $ 74,116 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Taxes on unrealized gains (losses) on marketable securities | $ (11) | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Common Stock - Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance (in shares) at Dec. 31, 2019 | 38,967,079 | |||||
Beginning Balance at Dec. 31, 2019 | $ 1,099,512 | $ 5 | $ 438,591 | $ 768,398 | $ (1,994) | $ (105,488) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Conversion of restricted stock units to common stock (net of shares of treasury stock purchased) (in shares) | 38,144 | |||||
Conversion of restricted stock units to common stock (net of shares of treasury stock purchased) | (578) | (578) | ||||
Settlement of stock appreciation rights in common stock (net of shares of treasury stock purchased) (in shares) | 16,704 | |||||
Settlement of stock appreciation rights in common stock (net of shares of treasury stock purchased) | (245) | (5) | (240) | |||
Convertible debt extinguishment impact (net of tax impact) | (17,829) | (17,829) | ||||
Stock compensation expense | 1,367 | 1,367 | ||||
Other comprehensive income (loss) | (551) | (551) | ||||
Net income | 74,667 | 74,667 | ||||
Ending Balance (in shares) at Mar. 31, 2020 | 39,021,927 | |||||
Ending Balance at Mar. 31, 2020 | 1,156,343 | $ 5 | 422,124 | 843,065 | (2,545) | (106,306) |
Beginning Balance (in shares) at Dec. 31, 2020 | 39,334,839 | |||||
Beginning Balance at Dec. 31, 2020 | 1,173,955 | $ 5 | 392,247 | 891,211 | 1,160 | (110,668) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Conversion of restricted stock units to common stock (net of shares of treasury stock purchased) (in shares) | 254,396 | |||||
Conversion of restricted stock units to common stock (net of shares of treasury stock purchased) | (10,026) | (10,026) | ||||
Settlement of stock appreciation rights in common stock (net of shares of treasury stock purchased) (in shares) | 4,673 | |||||
Settlement of stock appreciation rights in common stock (net of shares of treasury stock purchased) | (1,607) | (176) | (1,431) | |||
Settlement of 2036 convertible senior notes conversion, net of tax impact (in shares) | 2,195,836 | |||||
Settlement of 2036 convertible senior notes conversion, net of tax impact | (3,237) | (26,183) | 22,946 | |||
Equity issuance (net of issuance costs) (in shares) | 5,750,000 | |||||
Equity issuance (net of issuance costs) | 365,280 | $ 1 | 365,279 | |||
Stock compensation expense | 1,844 | 1,844 | ||||
Other comprehensive income (loss) | (1,510) | (1,510) | ||||
Net income | 39,222 | 39,222 | ||||
Ending Balance (in shares) at Mar. 31, 2021 | 47,539,744 | |||||
Ending Balance at Mar. 31, 2021 | $ 1,563,921 | $ 6 | $ 733,011 | $ 930,433 | $ (350) | $ (99,179) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Convertible debt extinguishment impact, tax impact | $ 1,143 | $ 1,013 |
Issuance costs | $ 19,970 | |
Treasury Stock | Restricted stock units | ||
Conversion or settlement to common stock, net of treasury shares purchased (in shares) | 150,906 | 25,134 |
Treasury Stock | Stock appreciation rights | ||
Conversion or settlement to common stock, net of treasury shares purchased (in shares) | 2,598 | 14,438 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 39,222 | $ 74,667 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation expense | 10,915 | 8,934 |
Amortization expense of assets and liabilities, net | 4,701 | 4,660 |
Accretion of convertible note discount | 179 | 256 |
Amortization of marketable securities | 659 | 0 |
(Gain) loss on debt extinguishment | 1,922 | (1,172) |
Provision for doubtful accounts | 21 | 456 |
Impairment of property, plant and equipment | 822 | 0 |
Stock compensation expense | 1,844 | 1,367 |
Deferred tax expense | 1,000 | 1,034 |
Other operating activities | 49 | 161 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 13,770 | 104,598 |
Inventories | (80,664) | (44,881) |
Prepaid expenses and other assets | (16,241) | (28,273) |
Accounts payable | (24,865) | 3,400 |
Accrued expenses and other liabilities | (5,908) | (17,803) |
Operating lease obligations | (4,158) | (4,107) |
Deferred revenue | (4,264) | 2,102 |
Cash provided by (used in) operating activities | (60,996) | 105,399 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash paid for marketable securities | (93,092) | 0 |
Cash received from maturities of marketable securities | 90,722 | 0 |
Cash paid for purchase of property, plant and equipment | (10,487) | (9,030) |
Other investing activities | (1,500) | 0 |
Cash used in investing activities | (14,357) | (9,030) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net borrowings on revolving line of credit | 0 | 82,756 |
Cash paid on notes payable | (27,159) | (40,141) |
Cash received from equity offering | 385,250 | 0 |
Cash paid for equity offering costs | (19,565) | 0 |
Cash paid for conversion of restricted stock units and stock appreciation rights | (11,633) | (823) |
Cash provided from financing activities | 326,893 | 41,792 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 251,540 | 138,161 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, Beginning of period | 88,218 | 53,436 |
Effect of exchange rate changes on cash | (223) | (47) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, End of period | 339,535 | 191,550 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | 913 | 0 |
Cash paid for interest | 606 | 885 |
Leased assets obtained in exchange for new operating lease liabilities | 11,293 | 903 |
Amounts included in period-end accounts payable for: | ||
Purchases of property, plant and equipment | 5,701 | 6,739 |
Equity issuance costs | $ 405 | $ 0 |
Basis of Presentation and Natur
Basis of Presentation and Nature of the Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of the Business | BASIS OF PRESENTATION AND NATURE OF THE BUSINESS The condensed consolidated financial statements have been prepared by Renewable Energy Group, Inc. and its subsidiaries (the "Company" or "REG"), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations and cash flows at the dates and for the periods presented. It is suggested that these interim financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in the Company’s latest annual report on Form 10-K filed on March 1, 2021. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. The Company owns and operates a network of twelve bio-based diesel production facilities, with ten locations in North America and two locations in Europe, and an aggregate nameplate production capacity of 505 million gallons per year ("mmgy"). Ten of these plants are “multi-feedstock capable”, which allows them to use a broad range of low carbon feedstocks, such as distillers corn oil, used cooking oil and inedible animal fats in addition to vegetable oils, such as soybean oil, and canola oil. The bio-based diesel industry and the Company’s business have benefited from certain federal and state government programs. The federal biodiesel mixture excise tax credit (the "BTC") was retroactively reinstated on December 20, 2019 for the years 2018 and 2019. The BTC has also been extended through December 31, 2022. The modification of federal and state government programs could adversely affect the financial results of the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following accounting policies should be read in conjunction with a summary of the significant accounting policies the Company has disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020. Restricted Cash The Company segregates certain cash balances as restricted cash that represent those funds required to be set aside by a contractual agreement. The Company classifies restricted cash between current and non-current assets based on the length of time of the restricted use. As of March 31, 2021 and 2020, current restricted cash was $3,746 and $3,000, respectively, representing pledges for outstanding letters of credit issued to support our operations. See the table below for reconciliation of "Cash, Cash Equivalents and Restricted Cash" in the Condensed Consolidated Statements of Cash Flows: March 31, 2021 March 31, 2020 Cash and cash equivalents $ 335,789 $ 188,550 Restricted cash 3,746 3,000 Total cash, cash equivalents and restricted cash in the Condensed Statements of Cash Flows $ 339,535 $ 191,550 Marketable Securities The Company's marketable securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). The Company classifies its marketable securities as either current or long-term based on each instrument's underlying contractual maturity date. Realized gains or losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other income, net. The Company evaluates such investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company's intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be allocated based on credit risk and the amortized cost basis of the debt security is recognized in earnings. The Company has no current requirement or intent to sell a material portion of marketable securities as of March 31, 2021. The Company expects to recover up to (or beyond) the initial cost of investment for securities held. In computing realized gains and losses on available-for-sale securities, the Company determines cost based on amounts paid, including direct costs such as commissions to acquire the security, using the specific identification method. Renewable Identification Numbers ("RINs") When the Company produces and sells a gallon of bio-based diesel for use in the United States, 1.5 to 1.7 RINs per gallon are generated. RINs are used to track compliance with the Renewable Fuel Standard ("RFS2"), using the EPA moderated transaction system. RFS2 allows the Company to attach between zero and 2.5 RINs to any gallon of bio-based diesel. As a result, a portion of the selling price for a gallon of bio-based diesel sold in the U.S. is generally attributable to RFS2 compliance. However, RINs that the Company generates are a form of government incentive and not a result of the physical attributes of the bio-based diesel production. Therefore, no cost is allocated to the RIN when it is generated, regardless of whether the RIN is transferred with the bio-based diesel produced or held by the Company pending attachment to other bio-based diesel production sales. Additionally, RINs, once obtained through the production and sale of gallons of bio-based diesel, may be separated by the acquirer and sold separately. In addition, the Company also obtains RINs from third parties who have separated the RINs from gallons of bio-based diesel. From time to time, the Company holds varying amounts of these separated RINs for resale. RINs obtained from third parties are initially recorded at their cost and are subsequently revalued at the lower of cost or net realizable value as of the last day of each accounting period. The resulting adjustments are reflected in costs of goods sold for the period. The value of these RINs is reflected in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheets. The cost of goods sold related to the sale of these RINs is determined using the average cost method, while market prices are determined by RIN values, as reported by the Oil Price Information Service ("OPIS"). Low Carbon Fuel Standard The Company generates Low Carbon Fuel Standard ("LCFS") credits for its low carbon fuels or blendstocks when its qualified low carbon fuels are transported into an LCFS market and sold for qualifying purposes. LCFS credits are used to track compliance with the LCFS. As a result, a portion of the selling price for a gallon of bio-based diesel sold into an LCFS market is also attributable to LCFS compliance. However, LCFS credits that the Company generates are a form of government incentive and not a result of the physical attributes of the bio-based diesel production. Therefore, no cost is allocated to the LCFS credit when it is generated, regardless of whether the LCFS credit is transferred with the bio-based diesel produced or held by the Company. In addition, the Company also obtains LCFS credits from third-party trading activities. From time to time, the Company holds varying amounts of these third-party LCFS credits for resale. LCFS credits obtained from third parties are initially recorded at their cost and are subsequently revalued at the lower of cost or net realizable value as of the last day of each accounting period, and the resulting adjustments are reflected in costs of goods sold for the period. The value of LCFS credits obtained from third parties is reflected in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheet. The cost of goods sold related to the sale of these LCFS credits is determined using the average cost method, while market prices are determined by LCFS values, as reported by the OPIS. At March 31, 2021 and December 31, 2020, the Company held no LCFS credits purchased from third parties. The Company records assets acquired and liabilities assumed through the exchange of non-monetary assets based on the fair value of the assets and liabilities acquired or the fair value of the consideration exchanged, whichever is more readily determinable. Convertible Debt In June 2016, the Company issued $152,000 aggregate principal amount of 4% convertible senior notes due in 2036 (the "2036 Convertible Senior Notes"). See "Note 7 - Debt and Subsequent Events" for a further description of the 2036 Convertible Senior Notes and information regarding our April 2021 notice of redemption of all such notes. During the three months ended March 31, 2021, the Company received notices of conversion related to the 2036 Convertible Senior Notes in total principal amount of $27,075. The Company elected to settle the principal balance of $27,075 in cash and settle the conversion premium by issuing 2,195,836 of common shares from treasury stock, resulting in a loss on debt extinguishment, of $1,922. During the three months ended March 31, 2020, the Company used $25,949 to repurchase $11,008 principal amount of the 2036 Convertible Senior Notes, reflecting conversion premium, after tax impact, of $17,829 as a reduction of Additional Paid-in Capital and gains on debt extinguishment of $1,172 as reflected in the Condensed Consolidated Statements of Operations. Security Repurchase Programs In January 2019 and February 2020, the Company's Board of Directors approved repurchase programs of up to $75,000 and $100,000, respectively, of the Company's convertible notes and/or shares of common stock (the "2019 Program" and "2020 Program", respectively). Under these programs, the Company may repurchase convertible notes or shares from time to time in open market transactions, privately negotiated transactions or by other means. The timing and amount of repurchase transactions under each program are determined by the Company's management based on its evaluation of market conditions, share price, convertible note price, legal requirements and other factors. The table below sets out the information regarding the activities under the 2019 and 2020 Programs during the three months ended March 31, 2020: Three months ended March 31, 2020 Principal amount in 000's January 2019 Program 2036 Convertible Senior Notes Repurchases $ 11,008 $ 25,949 The 2019 Program was fully utilized as of September 30, 2020. The remaining amount of the 2020 Program was $91,914 as of March 31, 2021. Equity Offering On March 19, 2021, the Company completed an equity offering pursuant to which it sold 5,750,000 shares of common stock to various underwriters at a price of $67.00 per share before underwriting discounts and commissions. The proceeds that the Company received from the financing activity were $385,250 before underwriting discounts and commissions, fees, and other out-of-pocket costs of $19,970. The net proceeds from the transaction were $365,280. Revenue Recognition The Company generally has a single performance obligation in its arrangements with customers. The Company believes for most of its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The Company records these costs within selling, general and administrative expenses. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. • sales of biodiesel and renewable diesel produced at our facilities, including RINs and LCFS credits; • resale of biodiesel, renewable diesel and petroleum acquired from third parties, along with the sale of renewable diesel and petroleum-based products further blended with biodiesel produced at our wholly owned facilities or acquired from third parties; • sales of separated RINs and LCFS credits; • sales of raw materials, glycerin and other co-products of the bio-based diesel production process; • other revenue, including bio-based diesel facility management and operational services; and • incentive payments from federal and state governments, including the BTC, and from the USDA Advanced Biofuel Program. Disaggregation of revenue: All revenue recognized in the income statement, except for Bio-based diesel Government Incentives, is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to product line and segment: Reportable Segments Three months ended March 31, 2021 Bio-based Services Corporate Intersegment Consolidated Bio-based diesel sales $ 348,974 $ — $ — $ (1,027) $ 347,947 Petroleum diesel sales — — 40,509 — 40,509 LCFS credit sales 38,311 — — — 38,311 Separated RIN sales 29,601 — — — 29,601 Co-product sales 11,684 — — — 11,684 Raw material sales 1,679 — — — 1,679 Other bio-based diesel revenue 9,764 — — — 9,764 Other revenues — 17,352 — (17,352) — Total revenues from contracts with customers $ 440,013 $ 17,352 $ 40,509 $ (18,379) $ 479,495 Bio-based diesel government incentives 60,249 — — — 60,249 Total revenues $ 500,262 $ 17,352 $ 40,509 $ (18,379) $ 539,744 Three months ended March 31, 2020 Bio-based Diesel Services Corporate and other Intersegment Revenues Consolidated Total Bio-based diesel sales $ 306,552 $ — $ — $ (25,680) $ 280,872 Petroleum diesel sales — — 44,336 — 44,336 LCFS credit sales 34,034 — — — 34,034 Separated RIN sales 15,520 — — — 15,520 Co-product sales 12,044 — — — 12,044 Raw material sales 10,954 — — — 10,954 Other bio-based diesel revenue 8,638 — — — 8,638 Other revenues — 19,533 — (19,421) 112 Total revenues from contracts with customers $ 387,742 $ 19,533 $ 44,336 $ (45,101) $ 406,510 Bio-based diesel government incentives 66,447 — — — 66,447 Total revenues $ 454,189 $ 19,533 $ 44,336 $ (45,101) $ 472,957 Contract balances: The following table provides information about receivables and contract liabilities from contracts with customers: March 31, 2021 December 31, 2020 Trade accounts receivable from customers $ 81,029 $ 74,774 Short-term contract liabilities (deferred revenue) $ (603) $ (946) Short-term contract liabilities (accounts payable) $ (699) $ (914) The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. Significant changes to the contract liabilities during the three months ended March 31, 2021 and 2020 are as follows: January 1, 2021 Cash receipts Less: Impact on March 31, 2021 Deferred revenue $ 946 $ 12,963 $ 13,306 $ 603 Payables to customers related to BTC 914 — 215 699 $ 1,860 $ 12,963 $ 13,521 $ 1,302 January 1, 2020 Cash receipts Less: Impact on March 31, 2020 Deferred revenue $ 631 $ 9,067 $ 9,333 $ 365 Payables to customers related to BTC 255,193 — — 255,193 $ 255,824 $ 9,067 $ 9,333 $ 255,558 New Accounting Standards On December 18, 2019, the FASB issued ASU 2019-12, which affects general principles within ASC 740, Income Taxes. The ASU removes the following exceptions: (1) incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items, (2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and (4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The ASU also will make changes to franchise tax recognition, consideration of the tax basis recognition of goodwill related to acquisitions, specify tax allocation to subsidiaries, reflecting a change in tax law in the interim period annual effective tax rate computation in the period of enactment, and changes to the employee stock ownership plans and investments. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The adoption of ASU 2019-12 did not have a material impact on the Company's condensed consolidated financial statements. On January 16, 2020, the FASB issued ASU 2020-01, which clarifies the interaction between Topic 321 (Equity Securities), Topic 323 (Equity Method Investments) and Topic 815 (Derivatives and Hedging). This amendment clarifies that an entity should not consider whether the settlement of a forward contract or exercise of an option is accounted for under Topic 323 or whether the fair value option is in accordance with Topic 825. For public business entities, the amendments in ASU 2020-01 are effective for fiscal years beginning December 15, 2020, and interim periods within those fiscal years. The adoption of ASU 2020-01 did not have a material impact on the Company's condensed consolidated financial statements. On March 9, 2020, the FASB issued ASU 2020-03, which clarifies and updates various topics specific to the Company such as: (1) Amending Topic 820 to explicitly apply to non-financial items accounted for as derivatives under Topic 815. (2) Improve the understanding of Topic 470 and the alignment of Line-of-Credit arrangements and Revolving-Debt arrangements. (3) Clarification on the determination of a contractual term in a net investment in a lease determined in accordance with Topic 842 and Topic 326. For public business entities, the amendments in ASU 2020-03 are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. The adoption of ASU 2020-03 did not have a material impact on the Company's condensed consolidated financial statements. On March 12, 2020, the FASB issued ASU 2020-04, which provides a relief that is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Optional expedients are provided for contract modification accounting under the following Codification topics and subtopics: ASC 310, Receivables; ASC 470, Debt; ASC 840 or ASC 842, Leases; and ASC 815-15, Derivatives and Hedging: Embedded Derivatives. The ASU also establishes (1) a general contract modification principle that entities can apply in other areas that may be affected by reference rate reform and (2) certain elective hedge accounting expedients. T he amendments in ASU 2020-04 are effective for all entities as of March 12, 2020, through December 31, 2022. The Company is still evaluating the impact of the guidance on its condensed consolidated financial statements. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES The Company's investments in marketable securities are stated at fair value and are available-for-sale. The following table summarizes the Company's investments in marketable securities: March 31, 2021 Maturity Gross Amortized Cost Total Unrealized Gains Total Unrealized Losses Fair Value Short-term marketable securities Commercial paper Within one year $ 71,204 $ 11 $ (7) $ 71,208 Corporate bonds Within one year 45,371 — (34) 45,337 U.S. Treasury bills Within one year 9,998 2 — 10,000 Municipal bonds Within one year 2,500 2 — 2,502 Total $ 129,073 $ 15 $ (41) $ 129,047 Long-term marketable securities Corporate bonds Within one - five years $ 122,694 $ 5 $ (115) $ 122,584 U.S. Treasury bills Within one - five years 15,000 — (2) 14,998 Municipal bonds Within one - five years 4,435 6 — 4,441 Total $ 142,129 $ 11 $ (117) $ 142,023 December 31, 2020 Maturity Gross Amortized Cost Total Unrealized Gains Total Unrealized Losses Fair Value Short-term marketable securities Commercial paper Within one year $ 48,685 $ 31 $ (2) $ 48,714 Corporate bonds Within one year 78,282 45 (18) 78,309 U.S. Treasury bills Within one year 19,995 2 — 19,997 Municipal bonds Within one year 2,500 1 — 2,501 Total $ 149,462 $ 79 $ (20) $ 149,521 Long-term marketable securities Corporate bonds Within one - five years $ 91,694 $ 35 $ (40) $ 91,689 U.S. Treasury bills Within one - five years 25,000 1 (5) 24,996 Municipal bonds Within one - five years 3,335 2 — 3,337 Total $ 120,029 $ 38 $ (45) $ 120,022 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of the following: March 31, 2021 December 31, 2020 Raw materials $ 107,014 $ 65,969 Work in process 5,531 5,515 Finished goods 177,468 137,877 Total $ 290,013 $ 209,361 Inventories are valued at the lower of cost or net realizable value. Cost is determined based on the first-in, first-out method. There were no lower of cost or market adjustments made to the inventory values reported as of March 31, 2021 and December 31, 2020. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS Prepaid expense and other assets consist of the following: March 31, 2021 December 31, 2020 Commodity derivatives and related collateral, net $ 21,528 $ 5,433 Prepaid expenses 26,335 27,933 Deposits 1,969 2,047 RIN inventory 4,115 869 Taxes receivable 22,434 29,621 Other 1,376 1,754 Total $ 77,757 $ 67,657 RIN inventory is valued at the lower of cost or net realizable value. There were no lower of cost or market adjustments made to the inventory values reported as of March 31, 2021 and December 31, 2020. Other noncurrent assets consist of the following: March 31, 2021 December 31, 2020 Investments $ 14,540 $ 13,005 Spare parts inventory 2,610 2,610 Catalysts 10,008 7,408 Deposits 357 451 Other 11,659 9,246 Total $ 39,174 $ 32,720 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Intangible assets consist of the following: March 31, 2021 Cost Accumulated Amortization Net Raw material supply agreement $ 6,230 $ (3,734) $ 2,496 Renewable diesel technology 8,300 (3,781) 4,519 Acquired customer relationships 4,747 (2,150) 2,597 Other intangibles 904 (190) 714 Total intangible assets $ 20,181 $ (9,855) $ 10,326 December 31, 2020 Cost Accumulated Amortization Net Raw material supply agreement $ 6,230 $ (3,618) $ 2,612 Renewable diesel technology 8,300 (3,643) 4,657 Acquired customer relationships 4,747 (2,025) 2,722 Other intangible assets 904 (187) 717 Total intangible assets $ 20,181 $ (9,473) $ 10,708 The Company recorded intangible amortization expense of $382 for the three months ended March 31, 2021, and $353 for the three months ended March 31, 2020. The estimated intangible asset amortization expense for the remainder of 2021 through 2027 and thereafter is as follows: April 1, 2021 through December 31, 2021 $ 1,232 2022 1,619 2023 1,629 2024 1,640 2025 1,553 2026 611 2027 and thereafter 2,042 Total $ 10,326 |
Debt and Subsequent Events
Debt and Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Subsequent Events | DEBT AND SUBSEQUENT EVENTS The following table shows the Company’s term debt: March 31, 2021 December 31, 2020 4.00% Convertible Senior Notes, $32,544 face amount at March 31, 2021, due in June 2036 $ 25,785 $ 47,057 REG Ralston term loan, variable interest rate of LIBOR plus 2.25%, due in October 2025 12,556 13,241 REG Capital term loan, fixed interest rate of 3.99%, due in January 2028 6,596 6,665 Other 10 14 Total term debt before debt issuance costs 44,947 66,977 Less: Current portion of long-term debt 28,814 50,088 Less: Debt issuance costs (net of accumulated amortization of $1,026 and $990, respectively) 1,020 1,731 Total long-term debt $ 15,113 $ 15,158 2036 Convertible Senior Notes On June 2, 2016, the Company issued $152,000 aggregate principal amount of the 2036 Convertible Senior Notes in a private offering to qualified institutional buyers. The 2036 Convertible Senior Notes bear interest at a rate of 4.00% per year payable semi-annually in arrears on June 15 and December 15 of each year, beginning December 15, 2016. In addition, the 2036 Convertible Senior Notes will become convertible in the subsequent quarter if the closing price of the Company’s common stock exceeds $14.01, 130% of the Convertible Senior Notes’ initial conversion price, for at least 20 trading days during the 30 consecutive trading days prior to each quarter-end date. Should the holders elect to convert, the Company’s current intent is to settle the principal amount the 2036 Convertible Senior Notes in cash, with the remaining value satisfied at the Company’s option in cash, stock or a combination of cash and stock. As of March 31, 2021 and December 31, 2020, the early conversion event was met based on the Company's stock price and as a result, the 2036 Convertible Senior Notes have been classified as a current liability on the Company's Condensed Consolidated Balance Sheets at March 31, 2021 and December 31, 2020. The net proceeds from the offering of the 2036 Convertible Senior Notes were approximately $147,118, after deducting fees and offering expenses of $4,882, which was capitalized as debt issuance costs and is being amortized through June 2036. The debt discount is to be amortized through June 2036. The effective interest rate on the debt liability component was 1.53%. Subsequent to quarter-end, on April 12, 2021, the Company issued a notice of redemption to redeem all outstanding 2036 Convertible Senior Notes on June 15, 2021 at a redemption price equal to 100% of the principal amount of the notes redeemed. Because the redemption date is the interest payment date relating to the regular record date of June 1, 2021, the holders of the notes on June 1, 2021 will be entitled to receive, on the redemption date, the unpaid interest that would have accrued on such note. Other term debt Subsequent to quarter-end, on April 22, 2021, REG Ralston, LLC and REG Capital, LLC paid off the outstanding balance of the term loans owed of $12,556 and $6,596, respectively. Lines of Credit The following table shows the Company's lines of credit: March 31, 2021 December 31, 2020 Amount outstanding under lines of credit $ — $ — Maximum available to be borrowed under lines of credit $ 149,666 $ 149,666 The Company's wholly owned subsidiaries, REG Services Group, LLC and REG Marketing & Logistics Group, LLC, are borrowers under a Credit Agreement dated December 23, 2011 with the lenders party thereto (“Lenders”) and Wells Fargo Capital Finance, LLC, as the agent, (as amended, the “M&L and Services Revolver”). At March 31, 2021, the maximum commitment of the Lenders under the M&L and Services Revolver to make revolving loans was $150,000, subject to borrowing base limitations and further subject to an accordion feature, which allows the borrowers to request commitments for additional revolving loans in an aggregate amount not to exceed to $50,000, the making of which is subject to customary conditions, including the consent of Lenders providing such additional commitments. The maturity date of the M&L and Services Revolver is September 30, 2021. Loans advanced under the M&L and Services Revolver bear interest based on a one-month LIBOR rate (which shall not be less than zero), plus a margin based on Quarterly Average Excess Availability (as defined in the Revolving Credit Agreement), which may range from 1.75% per annum to 2.25% per annum. The M&L and Services Revolver contains various loan covenants that restrict each subsidiary borrower’s ability to take certain actions, including restrictions on incurrence of indebtedness, creation of liens, mergers or consolidations, dispositions of assets, repurchase or redemption of capital stock, making certain investments, making distributions to the Company unless certain conditions are satisfied, entering into certain transactions with affiliates or changing the nature of the subsidiary’s business. In addition, the subsidiary borrowers are required to maintain a fixed charge coverage ratio of at least 1.0 to 1.0 if excess availability under the M&L and Services Revolver is less than 10% of the $150,000 maximum commitment, or $15,000. The M&L and Services Revolver is secured by the subsidiary borrowers’ membership interests and substantially all of their assets. In addition, the M&L and Services Revolver is secured by the accounts receivable and inventory of REG Albert Lea, LLC, REG Houston, LLC, REG New Boston, LLC, REG Geismar, LLC, and REG Seneca, LLC (collectively, the "Plant Loan |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company enters into New York Mercantile Exchange ("NYMEX") NY Harbor ULSD ("NY Harbor ULSD" or previously referred to as heating oil), Chicago Board of Trade ("CBOT") Soybean Oil (previously referred to as soybean oil) and NYMEX Natural Gas futures, swaps and options ("commodity contract derivatives") to reduce the risk of price volatility related to anticipated purchases of feedstock raw materials and to protect cash margins from potentially adverse effects of price volatility on bio-based diesel sales where prices are set at a future date. All of the Company’s commodity contract derivatives are designated as non-hedge derivatives and recorded at fair value on the Condensed Consolidated Balance Sheets. Unrealized gains and losses are recognized as a component of bio-based diesel costs of goods sold reflected in current results of operations. As of March 31, 2021, the net notional volumes of NY Harbor ULSD, CBOT Soybean Oil and NYMEX Natural Gas covered under the open commodity derivative contracts were approximately 74 million gallons, 231 million pounds and 2 million million British thermal units, respectively. The Company offsets the fair value amounts recognized for its commodity contract derivatives with cash collateral with the same counterparty under a master netting agreement. The net position is presented within prepaid and other assets in the Condensed Consolidated Balance Sheets. The following table sets forth the fair value of the Company's commodity contract derivatives and amounts that offset within the Condensed Consolidated Balance Sheets: March 31, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Gross amounts of derivatives recognized at fair value $ 12,789 $ 5,420 $ 3,458 $ 12,164 Cash collateral paid (received) 14,159 — 14,139 — Total gross amount recognized 26,948 5,420 17,597 12,164 Gross amounts offset (5,420) (5,420) (12,164) (12,164) Net amount reported in the condensed consolidated balance sheets $ 21,528 $ — $ 5,433 $ — The following table sets forth the commodity contract derivatives gains and (losses) included in the Condensed Consolidated Statements of Operations: Location of Gain (Loss) Three months ended March 31, 2021 Three months ended March 31, 2020 Commodity derivatives Cost of goods sold – Bio-based diesel $ (1,791) $ 53,522 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT The fair value hierarchy prioritizes the inputs used in measuring fair value as follows: • Level 1 — Quoted prices for identical instruments in active markets. • Level 2 — Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets. • Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. A summary of assets (liabilities) measured at fair value is as follows: As of March 31, 2021 Total Level 1 Level 2 Level 3 Commercial paper $ 71,208 $ — $ 71,208 $ — Corporate bonds $ 167,921 — 167,921 — U.S. Treasury bills $ 24,998 24,998 — — Municipal bonds $ 6,943 — 6,943 — Commodity contract derivatives $ 7,369 332 7,037 — $ 278,439 $ 25,330 $ 253,109 $ — As of December 31, 2020 Total Level 1 Level 2 Level 3 Commercial paper $ 48,714 $ — $ 48,714 $ — Corporate bonds $ 169,998 — 169,998 — U.S. Treasury bills $ 44,992 44,992 — — Municipal bonds $ 5,839 — 5,839 — Commodity contract derivatives $ (8,706) (3,069) (5,637) $ — $ 260,837 $ 41,923 $ 218,914 $ — The estimated fair values of the Company’s financial instruments, which are not recorded at fair value, are as follows: As of March 31, 2021 As of December 31, 2020 Asset (Liability) Fair Value Asset (Liability) Fair Value Financial liabilities: Debt and lines of credit $ (44,947) $ (217,173) $ (66,977) $ (418,107) The carrying amounts reported in the Condensed Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values. Money market funds are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company used the following methods and assumptions to estimate fair value of its financial instruments: Marketable securities: The fair value of marketable securities, which include Treasury bills and municipal notes/bonds, commercial paper and corporate notes/bonds is obtained using quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active and inputs other than quoted prices, e.g., interest rates and yield curves. Commodity derivatives: The instruments held by the Company consist primarily of futures contracts, swap agreements, purchased put options and written call options. The fair value of contracts based on quoted prices of identical assets in an active exchange-traded market is reflected in Level 1. Contract fair value that is determined based on quoted prices of similar contracts in over-the-counter markets is reflected in Level 2. Debt and lines of credit: The fair value of long-term debt and lines of credit was established using discounted cash flow calculations and current market rates reflecting Level 2 inputs. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE Basic net income per share is presented in conformity with the two-class method required for participating securities, which include restricted stock units ("RSUs"). Under the two-class method, net income is reduced for distributed and undistributed dividends earned in the current period. The remaining earnings are then allocated to Common Stock and the participating securities. The Company calculates the effects of participating securities on diluted earnings per share ("EPS") using both the “if-converted or treasury stock” and "two-class" methods and discloses the method which results in a more dilutive effect. The effects of stock appreciation rights and convertible notes on diluted EPS are calculated using the treasury stock method unless the effects are anti-dilutive to EPS. For the 2036 Convertible Senior Notes, the Company’s current intent is to settle conversions using cash for the principal amount of convertible senior notes converted, with the remaining value satisfied at the Company’s option in cash, stock or a combination of cash and stock. Therefore, the dilutive effect of the convertible senior notes is limited to the conversion premium. There were no anti-dilutive shares within the periods presented. The following table presents the calculation of diluted net income per share available to common stockholders: Three months ended March 31, 2021 Three months ended March 31, 2020 Net income available to the Company's common stockholders - Basic $ 38,583 $ 73,158 Plus (less): effect of participating securities 639 1,509 Net income available to common stockholders 39,222 74,667 Less: effect of participating securities (639) (1,509) Net income available to the Company's common stockholders - Diluted $ 38,583 $ 73,158 Shares: Weighted-average shares used to compute basic net income per share 40,425,593 38,979,057 Adjustment to reflect conversion of convertible notes 2,640,938 4,190,024 Adjustment to reflect stock appreciation right conversions 595,037 523,074 Weighted-average shares used to compute diluted net income per share 43,661,568 43,692,155 Net income per share available to common stockholders - Diluted Diluted net income $ 0.88 $ 1.67 |
Reportable Segments and Geograp
Reportable Segments and Geographic Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segments and Geographic Information | REPORTABLE SEGMENTS AND GEOGRAPHIC INFORMATION The Company reports its reportable segments based on products and services provided to customers. The Company re-assesses its reportable segments on an annual basis. The Company's reportable segments generally align the Company's external financial reporting segments with its internal operating segments, which are based on its internal organizational structure, operating decisions, and performance assessment. The Company's reportable segments at March 31, 2021 and for the year ended December 31, 2020 are composed of Bio-based Diesel (formerly known as the Biomass-based Diesel segment), Services and Corporate and other activities. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All prior period disclosures below have been recast to present results on a comparable basis. The Bio-based Diesel segment processes waste vegetable oils, animal fats, virgin vegetable oils and other feedstocks into bio-based diesel. The Bio-based Diesel segment also includes the Company’s purchases and resale of bio-based diesel produced by third parties. Revenue is derived from the purchases and sales of bio-based diesel, RINs and raw material feedstocks acquired from third parties, sales of processed bio-based diesel from Company facilities, related byproducts and renewable energy government incentive payments, in the U.S. and internationally. The Services segment offers services for managing the construction of bio-based diesel production facilities and managing ongoing operations of third-party plants and collects fees related to the services provided. The Company does not allocate items that are of a non-operating nature or corporate expenses to the business segments. Revenues from services provided to other segments are recorded by the Services segment at cost. The Corporate and Other segment includes trading activities related to petroleum-based heating oil and diesel fuel as well as corporate activities, which consist of corporate office expenses such as compensation, benefits, occupancy, and other administrative costs, including management service expenses. Corporate and Other also includes income/(expense) not associated with the reportable segments, such as corporate general and administrative expenses, shared service expenses, interest expense and interest income, all reflected on an accrual basis of accounting. In addition, Corporate and Other includes cash and other assets not associated with the reportable segments, including investments. Intersegment revenues are reported by the Services and Corporate and Other segments. The following table represents the significant items by reportable segment: Three months ended March 31, 2021 Three months ended March 31, 2020 Net sales from continuing operations: Bio-based Diesel $ 500,262 $ 454,189 Services 17,352 19,533 Corporate and Other 40,509 44,336 Intersegment revenues (18,379) (45,101) $ 539,744 $ 472,957 Income (loss) from continuing operations before income taxes: Bio-based Diesel $ 48,251 $ 76,447 Services (3,998) (778) Corporate and Other (3,398) 329 $ 40,855 $ 75,998 Depreciation and amortization expense, net: Bio-based Diesel $ 13,904 $ 12,038 Services 888 742 Corporate and Other 824 814 $ 15,616 $ 13,594 Cash paid for purchases of property, plant and equipment: Bio-based Diesel $ 9,814 $ 8,608 Services 348 328 Corporate and Other 325 94 $ 10,487 $ 9,030 March 31, 2021 December 31, 2020 Goodwill: Services $ 16,080 $ 16,080 Assets: Bio-based Diesel $ 1,175,389 $ 1,101,179 Services 66,997 69,152 Corporate and Other 981,527 784,829 Intersegment eliminations (419,037) (493,762) $ 1,804,876 $ 1,461,398 Geographic Information: The following geographic data include net sales attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant and equipment. Three months ended March 31, 2021 Three months ended March 31, 2020 Net revenues: United States $ 451,482 $ 385,939 International 88,262 87,018 $ 539,744 $ 472,957 March 31, 2021 December 31, 2020 Long-lived assets: United States $ 567,214 $ 565,657 International 27,681 29,139 $ 594,895 $ 594,796 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIESIn the last quarter of 2020, the Company discovered a blending discrepancy in connection with its preparation for a standard IRS audit of its BTC filings. The Company self-reported the findings to the IRS and initiated an investigation overseen by the Audit Committee of the Company’s Board of Directors. In March 2021, the Company paid to the IRS the $40,505 assessment, excluding interest which was paid in April 2021, to correct the REG Seneca BTC claims (hereafter "BTC Correction"). The Company is working with its customers on BTC re-filings on the relevant gallons to reduce further the BTC Correction, which may include recovering amounts from its customers. There can be no assurances that future reduction to the BTC Correction will occur.The Company is involved in legal proceedings in the normal course of business. The Company currently believes that any ultimate liability arising out of such proceedings will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Restricted Cash | Restricted Cash The Company segregates certain cash balances as restricted cash that represent those funds required to be set aside by a contractual agreement. The Company classifies restricted cash between current and non-current assets based on the length of time of the restricted use. |
Marketable Securities | Marketable Securities The Company's marketable securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). The Company classifies its marketable securities as either current or long-term based on each instrument's underlying contractual maturity date. Realized gains or losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other income, net. The Company evaluates such investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company's intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be allocated based on credit risk and the amortized cost basis of the debt security is recognized in earnings. The Company has no current requirement or intent to sell a material portion of marketable securities as of March 31, 2021. The Company expects to recover up to (or beyond) the initial cost of investment for securities held. In computing realized gains and losses on available-for-sale securities, the Company determines cost based on amounts paid, including direct costs such as commissions to acquire the security, using the specific identification method. |
Renewable Identification Numbers (RINs) | Renewable Identification Numbers ("RINs") When the Company produces and sells a gallon of bio-based diesel for use in the United States, 1.5 to 1.7 RINs per gallon are generated. RINs are used to track compliance with the Renewable Fuel Standard ("RFS2"), using the EPA moderated transaction system. RFS2 allows the Company to attach between zero and 2.5 RINs to any gallon of bio-based diesel. As a result, a portion of the selling price for a gallon of bio-based diesel sold in the U.S. is generally attributable to RFS2 compliance. However, RINs that the Company generates are a form of government incentive and not a result of the physical attributes of the bio-based diesel production. Therefore, no cost is allocated to the RIN when it is generated, regardless of whether the RIN is transferred with the bio-based diesel produced or held by the Company pending attachment to other bio-based diesel production sales. Additionally, RINs, once obtained through the production and sale of gallons of bio-based diesel, may be separated by the acquirer and sold separately. In addition, the Company also obtains RINs from third parties who have separated the RINs from gallons of bio-based diesel. From time to time, the Company holds varying amounts of these separated RINs for resale. RINs obtained from third parties are initially recorded at their cost and are subsequently revalued at the lower of cost or net realizable value as of the last day of each accounting period. The resulting adjustments are reflected in costs of goods sold for the period. The value of these RINs is reflected in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheets. The cost of goods sold related to the sale of these RINs is determined using the average cost method, while market prices are determined by RIN values, as reported by the Oil Price Information Service ("OPIS"). |
Low Carbon Fuel Standard | Low Carbon Fuel Standard The Company generates Low Carbon Fuel Standard ("LCFS") credits for its low carbon fuels or blendstocks when its qualified low carbon fuels are transported into an LCFS market and sold for qualifying purposes. LCFS credits are used to track compliance with the LCFS. As a result, a portion of the selling price for a gallon of bio-based diesel sold into an LCFS market is also attributable to LCFS compliance. However, LCFS credits that the Company generates are a form of government incentive and not a result of the physical attributes of the bio-based diesel production. Therefore, no cost is allocated to the LCFS credit when it is generated, regardless of whether the LCFS credit is transferred with the bio-based diesel produced or held by the Company. In addition, the Company also obtains LCFS credits from third-party trading activities. From time to time, the Company holds varying amounts of these third-party LCFS credits for resale. LCFS credits obtained from third parties are initially recorded at their cost and are subsequently revalued at the lower of cost or net realizable value as of the last day of each accounting period, and the resulting adjustments are reflected in costs of goods sold for the period. The value of LCFS credits obtained from third parties is reflected in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheet. The cost of goods sold related to the sale of these LCFS credits is determined using the average cost method, while market prices are determined by LCFS values, as reported by the OPIS. At March 31, 2021 and December 31, 2020, the Company held no LCFS credits purchased from third parties. The Company records assets acquired and liabilities assumed through the exchange of non-monetary assets based on the fair value of the assets and liabilities acquired or the fair value of the consideration exchanged, whichever is more readily determinable. |
Convertible Debt | Convertible Debt In June 2016, the Company issued $152,000 aggregate principal amount of 4% convertible senior notes due in 2036 (the "2036 Convertible Senior Notes"). See "Note 7 - Debt and Subsequent Events" for a further description of the 2036 Convertible Senior Notes and information regarding our April 2021 notice of redemption of all such notes. During the three months ended March 31, 2021, the Company received notices of conversion related to the 2036 Convertible Senior Notes in total principal amount of $27,075. The Company elected to settle the principal balance of $27,075 in cash and settle the conversion premium by issuing 2,195,836 of common shares from treasury stock, resulting in a loss on debt extinguishment, of $1,922. During the three months ended March 31, 2020, the Company used $25,949 to repurchase $11,008 principal amount of the 2036 Convertible Senior Notes, reflecting conversion premium, after tax impact, of $17,829 as a reduction of Additional Paid-in Capital and gains on debt extinguishment of $1,172 as reflected in the Condensed Consolidated Statements of Operations. |
Security Repurchase Programs | Security Repurchase ProgramsIn January 2019 and February 2020, the Company's Board of Directors approved repurchase programs of up to $75,000 and $100,000, respectively, of the Company's convertible notes and/or shares of common stock (the "2019 Program" and "2020 Program", respectively). Under these programs, the Company may repurchase convertible notes or shares from time to time in open market transactions, privately negotiated transactions or by other means. The timing and amount of repurchase transactions under each program are determined by the Company's management based on its evaluation of market conditions, share price, convertible note price, legal requirements and other factors. |
Revenue Recognition | Revenue Recognition The Company generally has a single performance obligation in its arrangements with customers. The Company believes for most of its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The Company records these costs within selling, general and administrative expenses. The following is a description of principal activities from which we generate revenue. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. • sales of biodiesel and renewable diesel produced at our facilities, including RINs and LCFS credits; • resale of biodiesel, renewable diesel and petroleum acquired from third parties, along with the sale of renewable diesel and petroleum-based products further blended with biodiesel produced at our wholly owned facilities or acquired from third parties; • sales of separated RINs and LCFS credits; • sales of raw materials, glycerin and other co-products of the bio-based diesel production process; • other revenue, including bio-based diesel facility management and operational services; and • incentive payments from federal and state governments, including the BTC, and from the USDA Advanced Biofuel Program. Disaggregation of revenue: |
New Accounting Standards | New Accounting Standards On December 18, 2019, the FASB issued ASU 2019-12, which affects general principles within ASC 740, Income Taxes. The ASU removes the following exceptions: (1) incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items, (2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and (4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The ASU also will make changes to franchise tax recognition, consideration of the tax basis recognition of goodwill related to acquisitions, specify tax allocation to subsidiaries, reflecting a change in tax law in the interim period annual effective tax rate computation in the period of enactment, and changes to the employee stock ownership plans and investments. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The adoption of ASU 2019-12 did not have a material impact on the Company's condensed consolidated financial statements. On January 16, 2020, the FASB issued ASU 2020-01, which clarifies the interaction between Topic 321 (Equity Securities), Topic 323 (Equity Method Investments) and Topic 815 (Derivatives and Hedging). This amendment clarifies that an entity should not consider whether the settlement of a forward contract or exercise of an option is accounted for under Topic 323 or whether the fair value option is in accordance with Topic 825. For public business entities, the amendments in ASU 2020-01 are effective for fiscal years beginning December 15, 2020, and interim periods within those fiscal years. The adoption of ASU 2020-01 did not have a material impact on the Company's condensed consolidated financial statements. On March 9, 2020, the FASB issued ASU 2020-03, which clarifies and updates various topics specific to the Company such as: (1) Amending Topic 820 to explicitly apply to non-financial items accounted for as derivatives under Topic 815. (2) Improve the understanding of Topic 470 and the alignment of Line-of-Credit arrangements and Revolving-Debt arrangements. (3) Clarification on the determination of a contractual term in a net investment in a lease determined in accordance with Topic 842 and Topic 326. For public business entities, the amendments in ASU 2020-03 are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. The adoption of ASU 2020-03 did not have a material impact on the Company's condensed consolidated financial statements. On March 12, 2020, the FASB issued ASU 2020-04, which provides a relief that is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Optional expedients are provided for contract modification accounting under the following Codification topics and subtopics: ASC 310, Receivables; ASC 470, Debt; ASC 840 or ASC 842, Leases; and ASC 815-15, Derivatives and Hedging: Embedded Derivatives. The ASU also establishes (1) a general contract modification principle that entities can apply in other areas that may be affected by reference rate reform and (2) certain elective hedge accounting expedients. T he amendments in ASU 2020-04 are effective for all entities as of March 12, 2020, through December 31, 2022. The Company is still evaluating the impact of the guidance on its condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Restricted Cash | See the table below for reconciliation of "Cash, Cash Equivalents and Restricted Cash" in the Condensed Consolidated Statements of Cash Flows: March 31, 2021 March 31, 2020 Cash and cash equivalents $ 335,789 $ 188,550 Restricted cash 3,746 3,000 Total cash, cash equivalents and restricted cash in the Condensed Statements of Cash Flows $ 339,535 $ 191,550 |
Activity Under Repurchase Agreements | The table below sets out the information regarding the activities under the 2019 and 2020 Programs during the three months ended March 31, 2020: Three months ended March 31, 2020 Principal amount in 000's January 2019 Program 2036 Convertible Senior Notes Repurchases $ 11,008 $ 25,949 |
Disaggregation of Revenue | The following table depicts the disaggregation of revenue according to product line and segment: Reportable Segments Three months ended March 31, 2021 Bio-based Services Corporate Intersegment Consolidated Bio-based diesel sales $ 348,974 $ — $ — $ (1,027) $ 347,947 Petroleum diesel sales — — 40,509 — 40,509 LCFS credit sales 38,311 — — — 38,311 Separated RIN sales 29,601 — — — 29,601 Co-product sales 11,684 — — — 11,684 Raw material sales 1,679 — — — 1,679 Other bio-based diesel revenue 9,764 — — — 9,764 Other revenues — 17,352 — (17,352) — Total revenues from contracts with customers $ 440,013 $ 17,352 $ 40,509 $ (18,379) $ 479,495 Bio-based diesel government incentives 60,249 — — — 60,249 Total revenues $ 500,262 $ 17,352 $ 40,509 $ (18,379) $ 539,744 Three months ended March 31, 2020 Bio-based Diesel Services Corporate and other Intersegment Revenues Consolidated Total Bio-based diesel sales $ 306,552 $ — $ — $ (25,680) $ 280,872 Petroleum diesel sales — — 44,336 — 44,336 LCFS credit sales 34,034 — — — 34,034 Separated RIN sales 15,520 — — — 15,520 Co-product sales 12,044 — — — 12,044 Raw material sales 10,954 — — — 10,954 Other bio-based diesel revenue 8,638 — — — 8,638 Other revenues — 19,533 — (19,421) 112 Total revenues from contracts with customers $ 387,742 $ 19,533 $ 44,336 $ (45,101) $ 406,510 Bio-based diesel government incentives 66,447 — — — 66,447 Total revenues $ 454,189 $ 19,533 $ 44,336 $ (45,101) $ 472,957 |
Contract Balances | The following table provides information about receivables and contract liabilities from contracts with customers: March 31, 2021 December 31, 2020 Trade accounts receivable from customers $ 81,029 $ 74,774 Short-term contract liabilities (deferred revenue) $ (603) $ (946) Short-term contract liabilities (accounts payable) $ (699) $ (914) January 1, 2021 Cash receipts Less: Impact on March 31, 2021 Deferred revenue $ 946 $ 12,963 $ 13,306 $ 603 Payables to customers related to BTC 914 — 215 699 $ 1,860 $ 12,963 $ 13,521 $ 1,302 January 1, 2020 Cash receipts Less: Impact on March 31, 2020 Deferred revenue $ 631 $ 9,067 $ 9,333 $ 365 Payables to customers related to BTC 255,193 — — 255,193 $ 255,824 $ 9,067 $ 9,333 $ 255,558 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities | The following table summarizes the Company's investments in marketable securities: March 31, 2021 Maturity Gross Amortized Cost Total Unrealized Gains Total Unrealized Losses Fair Value Short-term marketable securities Commercial paper Within one year $ 71,204 $ 11 $ (7) $ 71,208 Corporate bonds Within one year 45,371 — (34) 45,337 U.S. Treasury bills Within one year 9,998 2 — 10,000 Municipal bonds Within one year 2,500 2 — 2,502 Total $ 129,073 $ 15 $ (41) $ 129,047 Long-term marketable securities Corporate bonds Within one - five years $ 122,694 $ 5 $ (115) $ 122,584 U.S. Treasury bills Within one - five years 15,000 — (2) 14,998 Municipal bonds Within one - five years 4,435 6 — 4,441 Total $ 142,129 $ 11 $ (117) $ 142,023 December 31, 2020 Maturity Gross Amortized Cost Total Unrealized Gains Total Unrealized Losses Fair Value Short-term marketable securities Commercial paper Within one year $ 48,685 $ 31 $ (2) $ 48,714 Corporate bonds Within one year 78,282 45 (18) 78,309 U.S. Treasury bills Within one year 19,995 2 — 19,997 Municipal bonds Within one year 2,500 1 — 2,501 Total $ 149,462 $ 79 $ (20) $ 149,521 Long-term marketable securities Corporate bonds Within one - five years $ 91,694 $ 35 $ (40) $ 91,689 U.S. Treasury bills Within one - five years 25,000 1 (5) 24,996 Municipal bonds Within one - five years 3,335 2 — 3,337 Total $ 120,029 $ 38 $ (45) $ 120,022 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: March 31, 2021 December 31, 2020 Raw materials $ 107,014 $ 65,969 Work in process 5,531 5,515 Finished goods 177,468 137,877 Total $ 290,013 $ 209,361 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expense and Other Assets | Prepaid expense and other assets consist of the following: March 31, 2021 December 31, 2020 Commodity derivatives and related collateral, net $ 21,528 $ 5,433 Prepaid expenses 26,335 27,933 Deposits 1,969 2,047 RIN inventory 4,115 869 Taxes receivable 22,434 29,621 Other 1,376 1,754 Total $ 77,757 $ 67,657 |
Summary of Other Noncurrent Assets | Other noncurrent assets consist of the following: March 31, 2021 December 31, 2020 Investments $ 14,540 $ 13,005 Spare parts inventory 2,610 2,610 Catalysts 10,008 7,408 Deposits 357 451 Other 11,659 9,246 Total $ 39,174 $ 32,720 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible assets | Intangible assets consist of the following: March 31, 2021 Cost Accumulated Amortization Net Raw material supply agreement $ 6,230 $ (3,734) $ 2,496 Renewable diesel technology 8,300 (3,781) 4,519 Acquired customer relationships 4,747 (2,150) 2,597 Other intangibles 904 (190) 714 Total intangible assets $ 20,181 $ (9,855) $ 10,326 December 31, 2020 Cost Accumulated Amortization Net Raw material supply agreement $ 6,230 $ (3,618) $ 2,612 Renewable diesel technology 8,300 (3,643) 4,657 Acquired customer relationships 4,747 (2,025) 2,722 Other intangible assets 904 (187) 717 Total intangible assets $ 20,181 $ (9,473) $ 10,708 |
Estimated Amortization Expense | The estimated intangible asset amortization expense for the remainder of 2021 through 2027 and thereafter is as follows: April 1, 2021 through December 31, 2021 $ 1,232 2022 1,619 2023 1,629 2024 1,640 2025 1,553 2026 611 2027 and thereafter 2,042 Total $ 10,326 |
Debt and Subsequent Events (Tab
Debt and Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Company's Borrowings | The following table shows the Company’s term debt: March 31, 2021 December 31, 2020 4.00% Convertible Senior Notes, $32,544 face amount at March 31, 2021, due in June 2036 $ 25,785 $ 47,057 REG Ralston term loan, variable interest rate of LIBOR plus 2.25%, due in October 2025 12,556 13,241 REG Capital term loan, fixed interest rate of 3.99%, due in January 2028 6,596 6,665 Other 10 14 Total term debt before debt issuance costs 44,947 66,977 Less: Current portion of long-term debt 28,814 50,088 Less: Debt issuance costs (net of accumulated amortization of $1,026 and $990, respectively) 1,020 1,731 Total long-term debt $ 15,113 $ 15,158 |
Revolving Line of Credit | The following table shows the Company's lines of credit: March 31, 2021 December 31, 2020 Amount outstanding under lines of credit $ — $ — Maximum available to be borrowed under lines of credit $ 149,666 $ 149,666 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments by Balance Sheet Location | The following table sets forth the fair value of the Company's commodity contract derivatives and amounts that offset within the Condensed Consolidated Balance Sheets: March 31, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Gross amounts of derivatives recognized at fair value $ 12,789 $ 5,420 $ 3,458 $ 12,164 Cash collateral paid (received) 14,159 — 14,139 — Total gross amount recognized 26,948 5,420 17,597 12,164 Gross amounts offset (5,420) (5,420) (12,164) (12,164) Net amount reported in the condensed consolidated balance sheets $ 21,528 $ — $ 5,433 $ — |
Summary of Derivative Financial Instruments by Location of Gain (Loss) | The following table sets forth the commodity contract derivatives gains and (losses) included in the Condensed Consolidated Statements of Operations: Location of Gain (Loss) Three months ended March 31, 2021 Three months ended March 31, 2020 Commodity derivatives Cost of goods sold – Bio-based diesel $ (1,791) $ 53,522 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets (Liabilities) Measured at Fair Value | A summary of assets (liabilities) measured at fair value is as follows: As of March 31, 2021 Total Level 1 Level 2 Level 3 Commercial paper $ 71,208 $ — $ 71,208 $ — Corporate bonds $ 167,921 — 167,921 — U.S. Treasury bills $ 24,998 24,998 — — Municipal bonds $ 6,943 — 6,943 — Commodity contract derivatives $ 7,369 332 7,037 — $ 278,439 $ 25,330 $ 253,109 $ — As of December 31, 2020 Total Level 1 Level 2 Level 3 Commercial paper $ 48,714 $ — $ 48,714 $ — Corporate bonds $ 169,998 — 169,998 — U.S. Treasury bills $ 44,992 44,992 — — Municipal bonds $ 5,839 — 5,839 — Commodity contract derivatives $ (8,706) (3,069) (5,637) $ — $ 260,837 $ 41,923 $ 218,914 $ — |
Estimated Fair Values of the Company's Financial Instruments | The estimated fair values of the Company’s financial instruments, which are not recorded at fair value, are as follows: As of March 31, 2021 As of December 31, 2020 Asset (Liability) Fair Value Asset (Liability) Fair Value Financial liabilities: Debt and lines of credit $ (44,947) $ (217,173) $ (66,977) $ (418,107) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Diluted Net Income (Loss) Per Share | The following table presents the calculation of diluted net income per share available to common stockholders: Three months ended March 31, 2021 Three months ended March 31, 2020 Net income available to the Company's common stockholders - Basic $ 38,583 $ 73,158 Plus (less): effect of participating securities 639 1,509 Net income available to common stockholders 39,222 74,667 Less: effect of participating securities (639) (1,509) Net income available to the Company's common stockholders - Diluted $ 38,583 $ 73,158 Shares: Weighted-average shares used to compute basic net income per share 40,425,593 38,979,057 Adjustment to reflect conversion of convertible notes 2,640,938 4,190,024 Adjustment to reflect stock appreciation right conversions 595,037 523,074 Weighted-average shares used to compute diluted net income per share 43,661,568 43,692,155 Net income per share available to common stockholders - Diluted Diluted net income $ 0.88 $ 1.67 |
Reportable Segments and Geogr_2
Reportable Segments and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Significant Items by Reportable Segment | The following table represents the significant items by reportable segment: Three months ended March 31, 2021 Three months ended March 31, 2020 Net sales from continuing operations: Bio-based Diesel $ 500,262 $ 454,189 Services 17,352 19,533 Corporate and Other 40,509 44,336 Intersegment revenues (18,379) (45,101) $ 539,744 $ 472,957 Income (loss) from continuing operations before income taxes: Bio-based Diesel $ 48,251 $ 76,447 Services (3,998) (778) Corporate and Other (3,398) 329 $ 40,855 $ 75,998 Depreciation and amortization expense, net: Bio-based Diesel $ 13,904 $ 12,038 Services 888 742 Corporate and Other 824 814 $ 15,616 $ 13,594 Cash paid for purchases of property, plant and equipment: Bio-based Diesel $ 9,814 $ 8,608 Services 348 328 Corporate and Other 325 94 $ 10,487 $ 9,030 March 31, 2021 December 31, 2020 Goodwill: Services $ 16,080 $ 16,080 Assets: Bio-based Diesel $ 1,175,389 $ 1,101,179 Services 66,997 69,152 Corporate and Other 981,527 784,829 Intersegment eliminations (419,037) (493,762) $ 1,804,876 $ 1,461,398 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following geographic data include net sales attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant and equipment. Three months ended March 31, 2021 Three months ended March 31, 2020 Net revenues: United States $ 451,482 $ 385,939 International 88,262 87,018 $ 539,744 $ 472,957 March 31, 2021 December 31, 2020 Long-lived assets: United States $ 567,214 $ 565,657 International 27,681 29,139 $ 594,895 $ 594,796 |
Basis of Presentation and Nat_2
Basis of Presentation and Nature of the Business (Details) gal in Millions | 3 Months Ended |
Mar. 31, 2021facilitygal | |
Class of Stock [Line Items] | |
Number of biorefineries | 12 |
Production capacity per year | gal | 505 |
Number of multi-feedstock capable plants | 10 |
North America | |
Class of Stock [Line Items] | |
Number of biorefineries | 10 |
Europe | |
Class of Stock [Line Items] | |
Number of biorefineries | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) | Mar. 19, 2021USD ($)$ / sharesshares | Jun. 02, 2016USD ($) | Mar. 31, 2021USD ($)renewable_identification_numbershares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Jan. 31, 2019USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||
Restricted cash | $ 3,746,000 | $ 3,000,000 | $ 3,777,000 | |||||
Gain (loss) on debt extinguishment | (1,922,000) | 1,172,000 | ||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | 17,829,000 | |||||||
Offering costs | 19,565,000 | 0 | ||||||
Equity Offering | ||||||||
Business Acquisition [Line Items] | ||||||||
Shares sold in offering (in shares) | shares | 5,750,000 | |||||||
Offering price per share (in dollars per share) | $ / shares | $ 67 | |||||||
Gross proceeds from offering | $ 385,250,000 | |||||||
Offering costs | 19,970,000 | |||||||
Net proceeds from offering | $ 365,280,000 | |||||||
January 2019 Program | ||||||||
Business Acquisition [Line Items] | ||||||||
Security repurchase program, amount authorized to be repurchased | $ 75,000,000 | |||||||
February 2020 Program | ||||||||
Business Acquisition [Line Items] | ||||||||
Security repurchase program, amount authorized to be repurchased | $ 100,000,000 | |||||||
January 2019 Program and February 2020 Program | ||||||||
Business Acquisition [Line Items] | ||||||||
Security repurchase program, remaining amounts | 91,914,000 | |||||||
2036 Senior Convertible Notes Repurchases | Convertible Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Face amount | $ 152,000,000 | $ 152,000,000 | ||||||
Interest rate | 4.00% | 4.00% | ||||||
Principal amount of conversion | $ 27,075,000 | |||||||
Debt conversion, shares issued (in shares) | shares | 2,195,836 | |||||||
Gain (loss) on debt extinguishment | 1,172,000 | |||||||
Convertible Notes Repurchases | $ 147,118,000 | 25,949,000 | ||||||
Principal amount of debt repurchased | 11,008,000 | |||||||
2036 Senior Convertible Notes Repurchases | Convertible Notes | January 2019 Program | ||||||||
Business Acquisition [Line Items] | ||||||||
Convertible Notes Repurchases | 25,949,000 | |||||||
Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
RINs per gallon | renewable_identification_number | 1.5 | |||||||
Allowed RINs per gallon | renewable_identification_number | 0 | |||||||
Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
RINs per gallon | renewable_identification_number | 1.7 | |||||||
Allowed RINs per gallon | renewable_identification_number | 2.5 | |||||||
Common Stock - Additional Paid-in Capital | ||||||||
Business Acquisition [Line Items] | ||||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | $ 17,829,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 335,789 | $ 84,441 | $ 188,550 | |
Restricted cash | 3,746 | 3,777 | 3,000 | |
Total cash, cash equivalents and restricted cash in the Condensed Statements of Cash Flows | $ 339,535 | $ 88,218 | $ 191,550 | $ 53,436 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Share Repurchases) (Details) - Convertible Notes - 2036 Senior Convertible Notes Repurchases - USD ($) $ in Thousands | Jun. 02, 2016 | Mar. 31, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||
Principal amount of debt repurchased | $ 11,008 | |
Convertible Notes Repurchases | $ 147,118 | 25,949 |
January 2019 Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Convertible Notes Repurchases | $ 25,949 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ 479,495 | $ 406,510 |
Biomass-based diesel government incentives | 60,249 | 66,447 |
Total revenues | 539,744 | 472,957 |
Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | (18,379) | (45,101) |
Biomass-based diesel government incentives | 0 | 0 |
Total revenues | (18,379) | (45,101) |
Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 440,013 | 387,742 |
Biomass-based diesel government incentives | 60,249 | 66,447 |
Total revenues | 500,262 | 454,189 |
Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 17,352 | 19,533 |
Biomass-based diesel government incentives | 0 | 0 |
Total revenues | 17,352 | 19,533 |
Corporate and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 40,509 | 44,336 |
Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 40,509 | 44,336 |
Biomass-based diesel government incentives | 0 | 0 |
Total revenues | 40,509 | 44,336 |
Biomass-based Diesel | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 347,947 | 280,872 |
Biomass-based Diesel | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | (1,027) | (25,680) |
Biomass-based Diesel | Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 348,974 | 306,552 |
Biomass-based Diesel | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Biomass-based Diesel | Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Petroleum diesel sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 40,509 | 44,336 |
Petroleum diesel sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Petroleum diesel sales | Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Petroleum diesel sales | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Petroleum diesel sales | Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 40,509 | 44,336 |
LCFS credit sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 38,311 | 34,034 |
LCFS credit sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
LCFS credit sales | Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 38,311 | 34,034 |
LCFS credit sales | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
LCFS credit sales | Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Separated RIN sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 29,601 | 15,520 |
Separated RIN sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Separated RIN sales | Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 29,601 | 15,520 |
Separated RIN sales | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Separated RIN sales | Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Co-product sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 11,684 | 12,044 |
Co-product sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Co-product sales | Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 11,684 | 12,044 |
Co-product sales | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Co-product sales | Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Raw material sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 1,679 | 10,954 |
Raw material sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Raw material sales | Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 1,679 | 10,954 |
Raw material sales | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Raw material sales | Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other bio-based diesel revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 9,764 | 8,638 |
Other bio-based diesel revenue | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other bio-based diesel revenue | Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 9,764 | 8,638 |
Other bio-based diesel revenue | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other bio-based diesel revenue | Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 112 |
Other revenues | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | (17,352) | (19,421) |
Other revenues | Biomass-based Diesel | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Other revenues | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 17,352 | 19,533 |
Other revenues | Corporate and other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ 0 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Contract Balances) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Trade accounts receivable from customers | $ 81,029 | $ 74,774 | ||
Short-term contract liabilities (deferred revenue) | (603) | (946) | $ (365) | $ (631) |
Short-term contract liabilities (accounts payable) | $ (699) | $ (914) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Significant Changes in Contract Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Deferred revenue | ||
Beginning Balance | $ 946 | $ 631 |
Cash receipts (Payments) | 12,963 | 9,067 |
Less: Impact on Revenue | 13,306 | 9,333 |
Ending Balance | 603 | 365 |
Payables to customers related to BTC | ||
Beginning Balance | 914 | 255,193 |
Cash receipts (Payments) | 0 | 0 |
Less: Impact on Revenue | 215 | 0 |
Ending Balance | 699 | 255,193 |
Total | ||
Beginning Balance | 1,860 | 255,824 |
Cash receipts (Payments) | 12,963 | 9,067 |
Less: Impact on Revenue | 13,521 | 9,333 |
Ending Balance | $ 1,302 | $ 255,558 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Short-term marketable securities | ||
Gross Amortized Cost | $ 129,073 | $ 149,462 |
Total Unrealized Gains | 15 | 79 |
Total Unrealized Losses | (41) | (20) |
Fair Value | 129,047 | 149,521 |
Long-term marketable securities | ||
Gross Amortized Cost | 142,129 | 120,029 |
Total Unrealized Gains | 11 | 38 |
Total Unrealized Losses | (117) | (45) |
Fair Value | 142,023 | 120,022 |
Commercial paper | ||
Short-term marketable securities | ||
Gross Amortized Cost | 71,204 | 48,685 |
Total Unrealized Gains | 11 | 31 |
Total Unrealized Losses | (7) | (2) |
Fair Value | 71,208 | 48,714 |
Corporate bonds | ||
Short-term marketable securities | ||
Gross Amortized Cost | 45,371 | 78,282 |
Total Unrealized Gains | 0 | 45 |
Total Unrealized Losses | (34) | (18) |
Fair Value | 45,337 | 78,309 |
Long-term marketable securities | ||
Gross Amortized Cost | 122,694 | 91,694 |
Total Unrealized Gains | 5 | 35 |
Total Unrealized Losses | (115) | (40) |
Fair Value | 122,584 | 91,689 |
U.S. Treasury bills | ||
Short-term marketable securities | ||
Gross Amortized Cost | 9,998 | 19,995 |
Total Unrealized Gains | 2 | 2 |
Total Unrealized Losses | 0 | 0 |
Fair Value | 10,000 | 19,997 |
Long-term marketable securities | ||
Gross Amortized Cost | 15,000 | 25,000 |
Total Unrealized Gains | 0 | 1 |
Total Unrealized Losses | (2) | (5) |
Fair Value | 14,998 | 24,996 |
Municipal bonds | ||
Short-term marketable securities | ||
Gross Amortized Cost | 2,500 | 2,500 |
Total Unrealized Gains | 2 | 1 |
Total Unrealized Losses | 0 | 0 |
Fair Value | 2,502 | 2,501 |
Long-term marketable securities | ||
Gross Amortized Cost | 4,435 | 3,335 |
Total Unrealized Gains | 6 | 2 |
Total Unrealized Losses | 0 | 0 |
Fair Value | $ 4,441 | $ 3,337 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventories | ||
Raw materials | $ 107,014 | $ 65,969 |
Work in process | 5,531 | 5,515 |
Finished goods | 177,468 | 137,877 |
Total | $ 290,013 | $ 209,361 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory adjustments | $ 0 | $ 0 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Summary of prepaid expense and other assets | ||
Commodity derivatives and related collateral, net | $ 21,528 | $ 5,433 |
Prepaid expenses | 26,335 | 27,933 |
Deposits | 1,969 | 2,047 |
RIN inventory | 4,115 | 869 |
Taxes receivable | 22,434 | 29,621 |
Other | 1,376 | 1,754 |
Total | $ 77,757 | $ 67,657 |
Other Assets (Details Textual)
Other Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
RIN | ||
Inventory [Line Items] | ||
Inventory adjustment | $ 0 | $ 0 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Investments | $ 14,540 | $ 13,005 |
Spare parts inventory | 2,610 | 2,610 |
Catalysts | 10,008 | 7,408 |
Deposits | 357 | 451 |
Other | 11,659 | 9,246 |
Total | $ 39,174 | $ 32,720 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 20,181 | $ 20,181 |
Accumulated Amortization | (9,855) | (9,473) |
Net | 10,326 | 10,708 |
Raw material supply agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 6,230 | 6,230 |
Accumulated Amortization | (3,734) | (3,618) |
Net | 2,496 | 2,612 |
Renewable diesel technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 8,300 | 8,300 |
Accumulated Amortization | (3,781) | (3,643) |
Net | 4,519 | 4,657 |
Acquired customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,747 | 4,747 |
Accumulated Amortization | (2,150) | (2,025) |
Net | 2,597 | 2,722 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 904 | 904 |
Accumulated Amortization | (190) | (187) |
Net | $ 714 | $ 717 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible amortization expense | $ 382 | $ 353 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Estimated amortization expense | ||
April 1, 2021 through December 31, 2021 | $ 1,232 | |
2022 | 1,619 | |
2023 | 1,629 | |
2024 | 1,640 | |
2025 | 1,553 | |
2026 | 611 | |
2027 and thereafter | 2,042 | |
Net | $ 10,326 | $ 10,708 |
Debt and Subsequent Events (Det
Debt and Subsequent Events (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Accumulated amortization on debt issuance costs | $ 1,026,000 | $ 990,000 |
Company's borrowings | ||
Total term debt before debt issuance costs | 44,947,000 | 66,977,000 |
Less: Current portion of long-term debt | 28,814,000 | 50,088,000 |
Debt Issuance Costs, Net | 1,020,000 | 1,731,000 |
Total long-term debt | $ 15,113,000 | 15,158,000 |
4.00% Convertible Senior Notes | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 4.00% | |
Face amount | $ 32,544,000 | |
Company's borrowings | ||
Total term debt before debt issuance costs | 25,785,000 | 47,057,000 |
REG Ralston term loan | ||
Company's borrowings | ||
Total term debt before debt issuance costs | $ 12,556,000 | 13,241,000 |
REG Ralston term loan | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.25% | |
REG Capital term loan | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 3.99% | |
Company's borrowings | ||
Total term debt before debt issuance costs | $ 6,596,000 | 6,665,000 |
Other | ||
Company's borrowings | ||
Total term debt before debt issuance costs | $ 10,000 | $ 14,000 |
Debt and Subsequent Events (D_2
Debt and Subsequent Events (Details Textual) | Apr. 22, 2021USD ($) | Apr. 12, 2021 | Jun. 02, 2016USD ($)d$ / shares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2016USD ($) |
Convertible Notes | 2036 Senior Convertible Notes Repurchases | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 152,000,000 | $ 152,000,000 | ||||
Interest rate | 4.00% | 4.00% | ||||
Convertible debt instrument, closing price minimum | $ / shares | $ 14.01 | |||||
Convertible debt instrument, threshold percentage of stock price trigger | 130.00% | |||||
Convertible debt instrument, threshold trading days | d | 20 | |||||
Convertible debt instrument, threshold consecutive trading days | d | 30 | |||||
Net proceeds from debt issuance | $ 147,118,000 | $ 25,949,000 | ||||
Fees and offering expenses | $ 4,882,000 | |||||
Effective interest rate | 1.53% | |||||
Debt paid off | $ 11,008,000 | |||||
Convertible Notes | 2036 Senior Convertible Notes Repurchases | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100.00% | |||||
REG Ralston term loan | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt paid off | $ 12,556,000 | |||||
REG Ralston term loan | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
REG Capital term loan | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.99% | |||||
REG Capital term loan | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt paid off | $ 6,596,000 | |||||
Wells Fargo Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | $ 150,000,000 | |||||
Line of Credit Facility Additional Increase in Maximum Borrowing Capacity | $ 50,000,000 | |||||
Debt instrument, variable rate minimum | 0.00% | |||||
Amount required of total current revolving loan commitments | $ 15,000,000 | |||||
Line of credit facility limitation amount | $ 40,000,000 | |||||
Wells Fargo Revolver | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR rate margin | 1.75% | |||||
Fixed charge coverate ratio | 1 | |||||
Wells Fargo Revolver | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR rate margin | 2.25% | |||||
Fixed charge coverate ratio | 1 | |||||
Percentage required of total current revolving loan commitments | 10.00% |
Debt and Subsequent Events (D_3
Debt and Subsequent Events (Details 1) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Amount outstanding under lines of credit | $ 0 | $ 0 |
Maximum available to be borrowed under lines of credit | $ 149,666 | $ 149,666 |
Derivative Instruments (Details
Derivative Instruments (Details Textual) lb in Millions, gal in Millions, BTU in Millions | 3 Months Ended |
Mar. 31, 2021BTUlbgal | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Heating oil covered under the open commodity derivative contracts (in gallons) | gal | 74 |
Soybean oil covered under the open commodity derivative contracts (in pounds) | lb | 231 |
Natural gas covered under the open commodity derivative contracts (in BTUs) | BTU | 2 |
Derivative Instruments (Detai_2
Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Gross amounts of derivatives recognized at fair value | $ 12,789 | $ 3,458 |
Cash collateral paid (received) | 14,159 | 14,139 |
Total gross amount recognized | 26,948 | 17,597 |
Gross amounts offset | (5,420) | (12,164) |
Net amount reported in the condensed consolidated balance sheets | 21,528 | 5,433 |
Liabilities | ||
Gross amounts of derivatives recognized at fair value | 5,420 | 12,164 |
Cash collateral paid (received) | 0 | 0 |
Total gross amount recognized | 5,420 | 12,164 |
Gross amounts offset | (5,420) | (12,164) |
Net amount reported in the condensed consolidated balance sheets | $ 0 | $ 0 |
Derivative Instruments (Detai_3
Derivative Instruments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cost of goods sold – Bio-based diesel | Commodity derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (losses) included in the condensed consolidated statement of operations | $ (1,791) | $ 53,522 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | $ 278,439 | $ 260,837 |
Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 25,330 | 41,923 |
Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 253,109 | 218,914 |
Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Commercial paper | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 71,208 | 48,714 |
Commercial paper | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Commercial paper | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 71,208 | 48,714 |
Commercial paper | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Corporate bonds | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 167,921 | 169,998 |
Corporate bonds | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Corporate bonds | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 167,921 | 169,998 |
Corporate bonds | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
U.S. Treasury bills | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 24,998 | 44,992 |
U.S. Treasury bills | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 24,998 | 44,992 |
U.S. Treasury bills | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
U.S. Treasury bills | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Municipal bonds | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 6,943 | 5,839 |
Municipal bonds | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Municipal bonds | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 6,943 | 5,839 |
Municipal bonds | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 0 | 0 |
Commodity contract derivatives | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 7,369 | (8,706) |
Commodity contract derivatives | Level 1 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 332 | (3,069) |
Commodity contract derivatives | Level 2 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | 7,037 | (5,637) |
Commodity contract derivatives | Level 3 | ||
Assets (liabilities) measured at fair value | ||
Assets (liabilities), fair value | $ 0 | $ 0 |
Fair Value Measurement (Detai_2
Fair Value Measurement (Details 1) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Asset (Liability) Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt and lines of credit | $ (44,947) | $ (66,977) |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt and lines of credit | $ (217,173) | $ (418,107) |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares | 0 | 0 |
Net income available to the Company's common stockholders - Basic | $ 38,583 | $ 73,158 |
Plus (less): effect of participating securities | 639 | 1,509 |
Net income available to common stockholders | 39,222 | 74,667 |
Less: effect of participating securities | (639) | (1,509) |
Net income available to the Company's common stockholders - Diluted | $ 38,583 | $ 73,158 |
Shares: | ||
Weighted-average shares used to compute basic net income per share (in shares) | 40,425,593 | 38,979,057 |
Adjustment to reflect conversion of convertible notes (in shares) | 2,640,938 | 4,190,024 |
Adjustment to reflect stock appreciation right conversions (in shares) | 595,037 | 523,074 |
Weighted-average shares used to compute diluted net income per share (in shares) | 43,661,568 | 43,692,155 |
Net income per share available to common stockholders - Diluted | ||
Diluted net income (in dollars per share) | $ 0.88 | $ 1.67 |
Reportable Segments and Geogr_3
Reportable Segments and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 539,744 | $ 472,957 | |
Income (loss) before income taxes | 40,855 | 75,998 | |
Depreciation and amortization expense, net | 15,616 | 13,594 | |
Cash paid for purchases of property, plant and equipment | 10,487 | 9,030 | |
Goodwill | 16,080 | $ 16,080 | |
Assets | 1,804,876 | 1,461,398 | |
Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (18,379) | (45,101) | |
Assets | (419,037) | (493,762) | |
Biomass-based Diesel | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 500,262 | 454,189 | |
Income (loss) before income taxes | 48,251 | 76,447 | |
Depreciation and amortization expense, net | 13,904 | 12,038 | |
Cash paid for purchases of property, plant and equipment | 9,814 | 8,608 | |
Assets | 1,175,389 | 1,101,179 | |
Services | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 16,080 | 16,080 | |
Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 17,352 | 19,533 | |
Income (loss) before income taxes | (3,998) | (778) | |
Depreciation and amortization expense, net | 888 | 742 | |
Cash paid for purchases of property, plant and equipment | 348 | 328 | |
Assets | 66,997 | 69,152 | |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 40,509 | 44,336 | |
Income (loss) before income taxes | (3,398) | 329 | |
Depreciation and amortization expense, net | 824 | 814 | |
Cash paid for purchases of property, plant and equipment | 325 | 94 | |
Assets | 981,527 | $ 784,829 | |
Corporate and Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 40,509 | $ 44,336 |
Reportable Segments and Geogr_4
Reportable Segments and Geographic Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 539,744 | $ 472,957 | |
Long-lived assets | 594,895 | $ 594,796 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 451,482 | 385,939 | |
Long-lived assets | 567,214 | 565,657 | |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 88,262 | $ 87,018 | |
Long-lived assets | $ 27,681 | $ 29,139 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Income tax examination, penalties accrued | $ 40,505 |