Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Andersons, Inc. | |
Entity Central Index Key | 821,026 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28.4 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Current assets: | ||||
Cash and cash equivalents | $ 18,934 | $ 62,630 | $ 31,383 | |
Restricted cash | 1,033 | 471 | 987 | |
Accounts receivable, net | 186,331 | 194,698 | 212,588 | |
Inventories | 463,205 | 682,747 | 486,236 | |
Commodity derivative assets – current | 11,619 | 45,447 | 115,924 | |
Other current assets | 59,873 | 72,133 | 48,754 | |
Assets held for sale (Note 16) | 10,028 | 0 | 0 | |
Total current assets | 751,023 | 1,058,126 | 895,872 | |
Other assets: | ||||
Commodity derivative assets – noncurrent | 1,191 | 100 | 1,934 | |
Goodwill (Note 17) | 23,105 | 63,934 | 63,934 | |
Other intangible assets, net | 113,492 | 106,100 | 113,245 | |
Other assets, net | 8,686 | 10,411 | 6,549 | |
Equity method investments | 215,794 | 216,931 | 238,478 | |
Investments and Other Noncurrent Assets | 362,268 | 397,476 | 424,140 | |
Rail Group assets leased to others, net | 375,092 | 327,195 | 340,136 | |
Property, plant and equipment, net | 423,042 | 450,052 | 447,267 | |
Total assets | 1,911,425 | 2,232,849 | 2,107,415 | |
Current liabilities: | ||||
Short-term debt | 124,000 | 29,000 | 179,404 | |
Trade and other payables | 267,194 | 581,826 | 302,413 | |
Customer prepayments and deferred revenue | 15,113 | 48,590 | 18,252 | |
Commodity derivative liabilities – current | 18,104 | 23,167 | 43,183 | |
Accrued expenses and other current liabilities | 69,256 | 69,648 | 71,169 | |
Current maturities of long-term debt | 62,482 | 47,545 | 53,720 | |
Total current liabilities | 556,149 | 799,776 | 668,141 | |
Other long-term liabilities | 34,441 | 27,833 | 30,430 | |
Commodity derivative liabilities – noncurrent | 334 | 339 | 2,182 | |
Employee benefit plan obligations | 36,837 | 35,026 | 44,902 | |
Long-term debt, less current maturities | 354,066 | 397,065 | 398,746 | |
Deferred income taxes | 181,806 | 182,113 | 179,911 | |
Total liabilities | 1,163,633 | 1,442,152 | 1,324,312 | |
Commitments and contingencies | ||||
Shareholders’ equity: | ||||
Common shares, without par value (63,000 shares authorized; 29,430 shares issued at 6/30/2017, 12/31/16 and 6/30/2016) | 96 | 96 | 96 | |
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 | 0 | |
Additional paid-in-capital | 222,261 | 222,910 | 219,489 | |
Treasury shares, at cost (1,080, 1,201 and 1,190 shares at 6/30/2017, 12/31/16 and 6/30/2016, respectively) | (40,945) | (45,383) | (44,970) | |
Accumulated other comprehensive loss | [1] | (11,993) | (12,468) | (17,094) |
Retained earnings | 570,406 | 609,206 | 606,177 | |
Total shareholders’ equity of The Andersons, Inc. | 739,825 | 774,361 | 763,698 | |
Noncontrolling interests | 7,967 | 16,336 | 19,405 | |
Total equity | 747,792 | 790,697 | 783,103 | |
Total liabilities and equity | $ 1,911,425 | $ 2,232,849 | $ 2,107,415 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | |||
Common shares, par value (dollars per share) | |||
Common shares, shares authorized (shares) | 63,000,000 | 63,000,000 | 63,000,000 |
Common shares, shares issued (shares) | 29,430,000 | 29,430,000 | 29,430,000 |
Preferred shares, par value (dollars per share) | |||
Preferred shares, shares authorized (shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred shares, shares issued (shares) | 0 | 0 | 0 |
Treasury shares, at cost (shares) | 1,080,000 | 1,201,000 | 1,190,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Sales and merchandising revenues | $ 993,662 | $ 1,064,244 | $ 1,845,678 | $ 1,952,123 |
Cost of sales and merchandising revenues | 905,828 | 967,202 | 1,681,386 | 1,787,326 |
Gross profit | 87,834 | 97,042 | 164,292 | 164,797 |
Operating, administrative and general expenses | 69,928 | 75,405 | 151,875 | 155,286 |
Goodwill impairment | 42,000 | 0 | 42,000 | 0 |
Interest expense | 5,988 | 6,554 | 12,088 | 13,605 |
Other income (loss): | ||||
Equity in earnings (losses) of affiliates, net | 6,385 | 2,344 | 4,507 | (4,633) |
Other income, net | 4,632 | 5,682 | 12,529 | 8,928 |
Income (loss) before income taxes | (19,065) | 23,109 | (24,635) | 201 |
Income tax provision (benefit) | 7,652 | 7,668 | 5,117 | 382 |
Net income (loss) | (26,717) | 15,441 | (29,752) | (181) |
Net income (loss) attributable to the noncontrolling interests | (64) | 1,018 | (10) | 92 |
Net income (loss) attributable to The Andersons, Inc. | $ (26,653) | $ 14,423 | $ (29,742) | $ (273) |
Per common share: | ||||
Basic earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ (0.94) | $ 0.51 | $ (1.05) | $ (0.01) |
Diluted earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | (0.94) | 0.51 | (1.05) | (0.01) |
Dividends declared (dollars per share) | $ 0.160 | $ 0.155 | $ 0.320 | $ 0.31 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (26,717) | $ 15,441 | $ (29,752) | $ (181) | |
Other comprehensive income (loss), net of tax: | |||||
Change in fair value of debt securities (net of income tax of $0, $0, $0 and $74) | 0 | 0 | 0 | (126) | |
Change in unrecognized actuarial loss and prior service cost (net of income tax of $(628), $653, $(635) and $663 - Note 8) | (988) | 1,121 | (998) | 1,294 | |
Foreign currency translation adjustments (net of income tax of $0, $0, $0 and $0) | 959 | 52 | 1,473 | 2,557 | |
Cash flow hedge activity (net of income tax of $0, $36, $0, and $72) | 0 | 60 | 0 | 120 | |
Other comprehensive income (loss) | [1] | (29) | 1,233 | 475 | 3,845 |
Comprehensive income (loss) | (26,746) | 16,674 | (29,277) | 3,664 | |
Comprehensive income (loss) attributable to the noncontrolling interests | (64) | 1,018 | (10) | 92 | |
Comprehensive income (loss) attributable to The Andersons, Inc. | $ (26,682) | $ 15,656 | $ (29,267) | $ 3,572 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in estimated fair value of investment in debt securities, tax | $ 0 | $ 0 | $ 0 | $ 74 |
Unrecognized actuarial loss and prior service costs, tax | (628) | 653 | (635) | 663 |
Foreign currency translation adjustments, tax | 0 | 0 | 0 | 0 |
Income tax on cash flow hedge activity | $ 0 | $ 36 | $ 0 | $ 72 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||
Net income (loss) | $ (29,752) | $ (181) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation and amortization | 42,878 | 41,379 |
Bad debt expense | 839 | 491 |
Equity in (earnings) losses of affiliates, net of dividends | (3,793) | 7,181 |
Gains on sale of facilities and investments in affiliates | (4,701) | (685) |
Gains on sale of Rail Group assets and related leases | (4,984) | (4,725) |
Deferred income taxes | (628) | (1,601) |
Stock-based compensation expense | 2,935 | 3,696 |
Goodwill impairment | 42,000 | 0 |
Other | (2,339) | 234 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 13,086 | (43,650) |
Inventories | 213,064 | 224,368 |
Commodity derivatives | 27,670 | (60,443) |
Other assets | 10,629 | 35,612 |
Payables and other accrued expenses | (352,133) | (396,037) |
Net cash provided by (used in) operating activities | (45,229) | (194,361) |
Investing Activities | ||
Acquisition of business, net of cash acquired | (3,507) | 0 |
Purchases of Rail Group assets | (66,506) | (27,504) |
Proceeds from sale of Rail Group assets | 9,390 | 10,397 |
Purchases of property, plant and equipment and capitalized software | (15,976) | (34,443) |
Proceeds from sale of property, plant and equipment | 646 | 173 |
Proceeds from returns of investments in affiliates | 0 | 15,013 |
Proceeds from sale of facilities and investments | 13,788 | 54,330 |
Purchase of investments | (2,429) | (2,523) |
Other | 437 | (538) |
Net cash provided by (used in) investing activities | (64,157) | 14,905 |
Financing Activities | ||
Net change in short-term borrowings | 93,941 | 164,000 |
Proceeds from issuance of long-term debt | 15,175 | 77,564 |
Proceeds from long-term financing arrangement | 10,396 | 0 |
Payments of long-term debt | (42,849) | (85,177) |
Proceeds from sale of treasury shares to employees and directors | 473 | 1,282 |
Payments of debt issuance costs | (2,024) | (309) |
Dividends paid | (8,984) | (8,679) |
Other | (438) | (1,592) |
Net cash provided by (used in) financing activities | 65,690 | 147,089 |
Decrease in cash and cash equivalents | (43,696) | (32,367) |
Cash and cash equivalents at beginning of period | 62,630 | 63,750 |
Cash and cash equivalents at end of period | $ 18,934 | $ 31,383 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | |
Beginning Balance at Dec. 31, 2015 | $ 783,739 | $ 96 | $ 222,848 | $ (52,902) | $ (20,939) | $ 615,151 | $ 19,485 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (181) | (273) | 92 | |||||
Other comprehensive income (loss) | 3,845 | [1] | 3,845 | |||||
Other change in noncontrolling interest | (172) | (172) | ||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of ($323) (122 shares) and $424 (207 shares) | 4,553 | (3,379) | 7,932 | |||||
Dividends declared ($0.32 and $0.31 per common share) | (8,681) | (8,681) | ||||||
Restricted share award dividend equivalents | 20 | (20) | ||||||
Ending Balance at Jun. 30, 2016 | 783,103 | 96 | 219,489 | (44,970) | (17,094) | 606,177 | 19,405 | |
Beginning Balance at Dec. 31, 2016 | 790,697 | 96 | 222,910 | (45,383) | (12,468) | 609,206 | 16,336 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (29,752) | (29,742) | (10) | |||||
Other comprehensive income (loss) | 475 | [1] | 475 | |||||
Other change in noncontrolling interest | (8,359) | (8,359) | ||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of ($323) (122 shares) and $424 (207 shares) | 3,732 | (654) | 4,386 | |||||
Dividends declared ($0.32 and $0.31 per common share) | (9,001) | (9,001) | ||||||
Restricted share award dividend equivalents | 0 | 5 | 52 | (57) | ||||
Ending Balance at Jun. 30, 2017 | $ 747,792 | $ 96 | $ 222,261 | $ (40,945) | $ (11,993) | $ 570,406 | $ 7,967 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Equity (Parenthetical) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Dividends declared, per common share | $ 0.320 | $ 0.31 |
Additional Paid-in Capital | ||
Income tax on stock option exercise and other shares issued to employees and directors | $ (323) | $ 424 |
Stock option exercises and other shares issued to employees and directors, shares | 122 | 207 |
Retained Earnings | ||
Dividends declared, per common share | $ 0.32 | $ 0.31 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation These Condensed Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated entities in which the Company has significant influence, but not control, are accounted for using the equity method of accounting. In the opinion of management, all adjustments consisting of normal and recurring items considered necessary for the fair presentation of the results of operations, financial position, and cash flows for the periods indicated have been made. The results in these Condensed Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017 . An unaudited Condensed Consolidated Balance Sheet as of June 30, 2016 has been included as the Company operates in several seasonal industries. The Condensed Consolidated Balance Sheet data at December 31, 2016 was derived from the audited Consolidated Financial Statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in The Andersons, Inc. Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”). New Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue From Contracts With Customers. The FASB issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10 ASU 2016-12 and ASU 2016-20, respectively. The core principle of the new revenue model is that an entity recognizes revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. These standards are effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company plans on using the modified retrospective method of adoption and does not plan to early adopt. While we are still continuing to evaluate the potential future impact of these standards on our financial statements, we believe the following items may be impacted upon adoption: - Methodology for recognizing certain fee-based arrangements within our Grain and Ethanol segments; - Determination of whether we are the principal or agent for certain revenue streams within several of our segments; - Methodology for recognizing gains on certain sale transactions within our Rail segment. Our evaluation of these standards, which includes reviewing representative samples of customer contracts, considers the amount and timing of revenues recognized, financial statement presentation, and required disclosures. Leasing In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 supersedes the current accounting for leases. The new standard, while retaining two distinct types of leases, finance and operating, (i) requires lessees to record a right of use asset and a related liability for the rights and obligations associated with a lease, regardless of lease classification, and recognize lease expense in a manner similar to current accounting, (ii) eliminates current real estate specific lease provisions, (iii) modifies the lease classification criteria and (iv) aligns many of the underlying lessor model principles with those in the new revenue standard. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within. Early adoption is permitted, however the Company does not plan to early adopt. Entities are required to use a modified retrospective approach when transitioning to ASU 2016-02 for leases that exist as of or are entered into after the beginning of the earliest comparative period presented in the financial statements. The Company expects this standard to have the effect of bringing substantially all of the off balance-sheet rail assets currently in nonrecourse financing deals noted in Item 2 of Form 10-Q onto the balance sheet along with a corresponding liability for the associated obligations. Additionally, we have other arrangements currently classified as operating leases which will be recorded as a right of use asset and corresponding liability on the balance sheet. The magnitude of these items is substantially less than the rail assets that will be recorded on the balance sheet. We expect any impact to the statement of operations to be minimal post adoption. Other applicable standards In May 2017, the FASB issued Accounting Standards Update No. 2017-09 Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This standard states that if the vesting conditions, fair value, and classification of the awards are the same immediately before and after the modification an entity would not apply modification accounting . The ASU is effective for annual periods beginning after December 15, 2017. Early adoption is permitted, however the Company has not chosen to do so at this time. The Company does not expect the impact from adoption of this standard to be material. In March 2017, the FASB issued Accounting Standards Update No. 2017-07 Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard requires that the service cost component be reported in the same line item as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit costs should be presented in the income statement separately from the service cost component and outside of income from operations if that subtotal is presented. The ASU is effective for annual periods beginning after December 15, 2017. The Company is currently evaluating the impact this standard will have on its Consolidated Financial Statements and disclosures. In January 2017, the FASB issued ASU No. 2017-04 Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. The ASU is effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted, and the Company elected to implement this standard in the current quarter. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard clarifies how companies present and classify certain cash receipts and payments in the statement of cash flows. The standard is effective for annual and interim periods beginning after December 15, 2017. At adoption, the Company will elect to continue classifying distributions from equity method investments using the cumulative earnings approach which is consistent with current practice. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This update changes the accounting for credit losses on loans and held-to-maturity debt securities and requires a current expected credit loss (CECL) approach to determine the allowance for credit losses. This includes allowances for trade receivables. The Company has not historically incurred significant credit losses and does not currently anticipate circumstances that would lead to a CECL approach differing from the Company's existing allowance estimates in a material way. The guidance is effective for fiscal years beginning after December 15, 2019 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. Early adoption is permitted, however the Company does not plan to do so. In January, 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. This standard provides guidance for the recognition, measurement, presentation, and disclosure of financial instruments. This guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted. The Company does not expect the impact from adoption of this standard to be material to currently held financial assets and liabilities. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major classes of inventories are as follows: (in thousands) June 30, December 31, June 30, Grain $ 373,863 $ 495,139 $ 348,757 Ethanol and co-products 14,041 10,887 15,298 Plant nutrients and cob products 69,365 150,259 91,227 Retail merchandise 906 20,678 25,161 Railcar repair parts 5,030 5,784 5,793 $ 463,205 $ 682,747 $ 486,236 Inventories on the Condensed Consolidated Balance Sheets at June 30, 2017 , December 31, 2016 and June 30, 2016 do not include 0.8 million , 0.9 million and 4.0 million bushels of grain, respectively, held in storage for others. The Company does not have title to the grain and is only liable for any deficiencies in grade or shortage of quantity that may arise during the storage period. Management has not experienced historical losses on any deficiencies and does not anticipate material losses in the future. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of Property, plant and equipment, net are as follows: (in thousands) June 30, December 31, June 30, Land $ 23,566 $ 30,672 $ 28,472 Land improvements and leasehold improvements 71,236 79,631 77,849 Buildings and storage facilities 298,077 322,856 290,528 Machinery and equipment 382,321 392,418 374,107 Construction in progress 7,372 12,784 51,672 782,572 838,361 822,628 Less: accumulated depreciation 359,530 388,309 375,361 $ 423,042 $ 450,052 $ 447,267 Depreciation expense on property, plant and equipment was $24.1 million and $23.8 million for the six months ended June 30, 2017 and 2016 , respectively. Additionally, depreciation expense on property, plant and equipment was $12.0 million and $11.6 million for the three months ended June 30, 2017 and 2016 , respectively. In December 2016, the Company recorded charges totaling $6.0 million for impairment of property, plant and equipment in the Retail business. This does not include $0.5 million of impairment charges related to software. The Company wrote down the value of these assets to the extent their carrying amounts exceeded fair value. The Company classified the significant assumptions used to determine fair value of the impaired assets as Level 3 inputs in the fair value hierarchy. In December 2016, the Company also recorded charges totaling $2.3 million for impairment of property, plant and equipment in the Plant Nutrient segment due to the closing of a cob facility. Rail Group Assets The components of Rail Group assets leased to others are as follows: (in thousands) June 30, December 31, June 30, Rail Group assets leased to others $ 482,524 $ 431,571 $ 442,239 Less: accumulated depreciation 107,432 104,376 102,103 $ 375,092 $ 327,195 $ 340,136 Depreciation expense on Rail Group assets leased to others amounted to $9.7 million and $9.3 million for the six months ended June 30, 2017 and 2016 , respectively. Additionally, depreciation expense on Rail Group assets leased to others amounted to $5.0 million and $4.7 million for the three months ended June 30, 2017 and 2016 , respectively. Sale of Assets On March 31, 2017 the Company sold four farm center locations in Florida for $17.4 million and recorded a $4.7 million gain, net of transaction costs in Other income, net. The sale price included a working capital adjustment of $3.6 million . On May 2, 2016 the Company sold eight grain and agronomy locations in Iowa for $54.3 million and recorded a nominal gain. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt On April 13, 2017, the Company amended its line of credit agreement with a syndicate of banks. The amended agreement provides for a credit facility in the amount of $ 800 million . Total borrowing capacity for the Company under all lines of credit is currently at $ 820.0 million , including $ 20.0 million of debt of The Andersons Denison Ethanol LLC ("TADE"), which is non-recourse to the Company. At June 30, 2017 , the Company had a total of $ 633.5 million available for borrowing under its lines of credit. The Company's borrowing capacity is reduced by a combination of outstanding borrowings and letters of credit. The Company was in compliance with all financial covenants as of June 30, 2017 . The Company’s short-term and long-term debt at June 30, 2017 , December 31, 2016 and June 30, 2016 consisted of the following: (in thousands) June 30, December 31, June 30, Short-term Debt – Non-Recourse $ — $ — $ — Short-term Debt - Recourse $ 124,000 $ 29,000 $ 179,404 Total Short-term Debt 124,000 29,000 179,404 Current Maturities of Long-term Debt – Non-Recourse — — — Current Maturities of Long-term Debt – Recourse 62,482 47,545 53,720 Total Current Maturities of Long-term Debt 62,482 47,545 53,720 Long-term Debt, Less: Current Maturities – Non-Recourse — — — Long-term Debt, Less: Current Maturities – Recourse 354,066 397,065 398,746 Total Long-term Debt, Less: Current Maturities $ 354,066 $ 397,065 $ 398,746 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company’s operating results are affected by changes to commodity prices. The Grain and Ethanol businesses have established “unhedged” position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract to lock in the price). To reduce the exposure to market price risk on commodities owned and forward grain and ethanol purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. These contracts are primarily traded via the regulated Chicago Mercantile Exchange ("CME"). The Company’s forward purchase and sales contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year . All of these contracts meet the definition of derivatives. While the Company considers its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges as defined under current accounting standards. The Company accounts for its commodity derivatives at estimated fair value. The estimated fair value of the commodity derivative contracts that require the receipt or posting of cash collateral is recorded on a net basis (offset against cash collateral posted or received, also known as margin deposits) within commodity derivative assets or liabilities. Management determines fair value based on exchange-quoted prices and in the case of its forward purchase and sale contracts, estimated fair value is adjusted for differences in local markets and non-performance risk. For contracts for which physical delivery occurs, balance sheet classification is based on estimated delivery date. For futures, options and over-the-counter contracts in which physical delivery is not expected to occur but, rather, the contract is expected to be net settled, the Company classifies these contracts as current or noncurrent assets or liabilities, as appropriate, based on the Company’s expectations as to when such contracts will be settled. Realized and unrealized gains and losses in the value of commodity contracts (whether due to changes in commodity prices, changes in performance or credit risk, or due to sale, maturity or extinguishment of the commodity contract) and grain inventories are included in cost of sales and merchandising revenues. Generally accepted accounting principles permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or obligation to return cash collateral under the same master netting arrangement. The Company has master netting arrangements for its exchange traded futures and options contracts and certain over-the-counter contracts. When the Company enters into a futures, option or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a futures, option or an over-the-counter contract moves in a direction that is adverse to the Company’s position, an additional margin deposit, called a maintenance margin, is required. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Condensed Consolidated Balance Sheets. The following table presents at June 30, 2017 , December 31, 2016 and June 30, 2016 , a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted/received as collateral. The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within current or noncurrent commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets: June 30, 2017 December 31, 2016 June 30, 2016 (in thousands) Net derivative asset position Net derivative liability position Net derivative asset position Net derivative liability position Net derivative asset position Net derivative liability position Collateral paid (received) $ 15,452 $ — $ 28,273 $ — $ 38,252 $ (480 ) Fair value of derivatives (12,835 ) — 1,599 — 13,491 1,480 Balance at end of period $ 2,617 $ — $ 29,872 $ — $ 51,743 $ 1,000 The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: June 30, 2017 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 26,101 $ 1,201 $ 4,404 $ 2 $ 31,708 Commodity derivative liabilities (29,934 ) (10 ) (22,508 ) (336 ) (52,788 ) Cash collateral 15,452 — — — 15,452 Balance sheet line item totals $ 11,619 $ 1,191 $ (18,104 ) $ (334 ) $ (5,628 ) December 31, 2016 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 36,146 $ 140 $ 1,447 $ 6 $ 37,739 Commodity derivative liabilities (18,972 ) (40 ) (24,614 ) (345 ) (43,971 ) Cash collateral 28,273 — — — 28,273 Balance sheet line item totals $ 45,447 $ 100 $ (23,167 ) $ (339 ) $ 22,041 June 30, 2016 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 134,504 $ 2,095 $ 5,925 $ 84 $ 142,608 Commodity derivative liabilities (56,832 ) (161 ) (48,628 ) (2,266 ) (107,887 ) Cash collateral 38,252 — (480 ) — 37,772 Balance sheet line item totals $ 115,924 $ 1,934 $ (43,183 ) $ (2,182 ) $ 72,493 The gains and losses included in the Company’s Condensed Consolidated Statements of Operations and the line items in which they are located are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ (41,873 ) $ 34,800 $ (14,848 ) $ 25,941 The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at June 30, 2017 , December 31, 2016 and June 30, 2016 : June 30, 2017 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 184,197 — — — Soybeans 31,532 — — — Wheat 7,340 — — — Oats 41,526 — — — Ethanol — 256,518 — — Corn oil — — 4,658 — Other 90 500 — 100 Subtotal 264,685 257,018 4,658 100 Exchange traded: Corn 94,895 — — — Soybeans 27,470 — — — Wheat 43,925 — — — Oats 2,290 — — — Ethanol — 3,990 — — Other — 840 — 60 Subtotal 168,580 4,830 — 60 Total 433,265 261,848 4,658 160 December 31, 2016 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 175,549 — — — Soybeans 20,592 — — — Wheat 7,177 — — — Oats 36,025 — — — Ethanol — 215,081 — — Corn oil — — 9,358 — Other 108 1,144 — 110 Subtotal 239,451 216,225 9,358 110 Exchange traded: Corn 63,225 — — — Soybeans 39,005 — — — Wheat 45,360 — — — Oats 4,120 — — — Ethanol — 78,120 — — Subtotal 151,710 78,120 — — Total 391,161 294,345 9,358 110 June 30, 2016 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 242,269 — — — Soybeans 52,599 — — — Wheat 13,100 — — — Oats 30,722 — — — Ethanol — 130,464 — — Corn oil — — 13,800 — Other 17 — — 128 Subtotal 338,707 130,464 13,800 128 Exchange traded: Corn 148,665 — — — Soybeans 46,570 — — — Wheat 22,790 — — — Oats 2,820 — — — Ethanol — 36,540 — — Subtotal 220,845 36,540 — — Total 559,552 167,004 13,800 128 At June 30, 2017 , December 31, 2016 and June 30, 2016 , the Company had recorded the following amounts for the fair value of the Company's interest rate derivatives: June 30, 2017 December 31, 2016 June 30, 2016 (in thousands) Derivatives not designated as hedging instruments Interest rate contracts included in other long-term liabilities $ (2,158 ) $ (2,530 ) $ (5,422 ) Total fair value of interest rate derivatives not designated as hedging instruments $ (2,158 ) $ (2,530 ) $ (5,422 ) The gains and losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for interest rate derivatives not designated as hedging instruments are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Interest income (expense) $ (17 ) $ (694 ) $ 372 $ (2,294 ) The Company also has foreign currency derivatives which are considered effective economic hedges of specified economic risks but which are not designated as accounting hedges. At June 30, 2017 , December 31, 2016 and June 30, 2016 , the Company had recorded the following amounts for the fair value of the Company's foreign currency derivatives: June 30, 2017 December 31, 2016 June 30, 2016 (in thousands) Derivatives not designated as hedging instruments Foreign currency contracts included in short-term assets (liabilities) $ 654 $ (112 ) $ 1,391 Total fair value of foreign currency contract derivatives not designated as hedging instruments $ 654 $ (112 ) $ 1,391 The gains and losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for foreign currency contract derivatives not designated as hedging instruments are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Foreign currency derivative gains included in Other income, net $ 669 $ (87 ) $ 767 $ 1,391 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The following are components of the net periodic benefit cost for the pension and postretirement benefit plans maintained by the Company for the three and six months ended June 30, 2017 and 2016 : Pension Benefits (in thousands) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Service cost $ — $ — $ — $ — Interest cost 39 48 78 97 Recognized net actuarial loss 63 37 126 73 Benefit cost $ 102 $ 85 $ 204 $ 170 Postretirement Benefits (in thousands) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Service cost $ 106 $ 167 $ 229 $ 380 Interest cost 282 370 582 775 Amortization of prior service cost — (89 ) — (177 ) Recognized net actuarial loss — 149 — 384 Benefit cost $ 388 $ 597 $ 811 $ 1,362 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On a quarterly basis, the Company estimates the effective tax rate expected to be applicable for the full year and makes changes if necessary based on new information or events. The estimated annual effective tax rate is forecast based on actual historical information and forward-looking estimates and is used to provide for income taxes in interim reporting periods. The Company also recognizes the tax impact of certain unusual or infrequently occurring items, such as the effects of changes in tax laws or rates and impacts from settlements with tax authorities, discretely in the quarter in which they occur. Additionally, the annual effective tax rate differs from the statutory U.S. Federal tax rate of 35% primarily due to the impact of state income taxes, the tax benefit related to railroad track maintenance credit transactions, and to benefits or costs related to various permanent book to tax differences and tax credits. For the three months ended June 30, 2017 , the Company recorded income tax expense of $7.7 million at an effective tax rate of (40.1)% , which varied from the U.S. Federal tax rate of 35% primarily due to the recording of a $42.0 million goodwill impairment charge which did not provide a corresponding tax benefit. For the three months ended June 30, 2016 , the Company recorded an income tax expense of $7.7 million at an effective tax rate of 33.2% . For the six months ended June 30, 2017 , the Company recorded income tax expense of $5.1 million at an effective tax rate of (20.8)% , which varied from the U.S. Federal tax rate of 35% primarily due to the recording of the $42.0 million goodwill impairment charge noted above. For the six months ended June 30, 2016 , the Company recorded income tax expense of $0.4 million at an effective tax rate of 189.6% which varied from the U.S. Federal tax rate of 35% primarily due to a 174.7% discrete tax charge related to state income taxes. During the three months ended June 30, 2017, the company agreed to a state income tax assessment that had been under appeal. The related $0.3 million reserve for unrecognized tax benefits has been reclassified as currently payable state income tax. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables summarize the after-tax components of accumulated other comprehensive income (loss) attributable to the Company for the three and six months ended June 30, 2017 and 2016 : Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended June 30, 2017 Six months ended June 30, 2017 (in thousands) Foreign Currency Translation Adjustment Defined Benefit Plan Items Total Foreign Currency Translation Adjustment Defined Benefit Plan Items Total Beginning Balance $ (10,488 ) $ (1,476 ) $ (11,964 ) $ (11,002 ) $ (1,466 ) $ (12,468 ) Other comprehensive income (loss) before reclassifications 959 (988 ) (29 ) 1,473 (998 ) 475 Net current-period other comprehensive income (loss) 959 (988 ) (29 ) 1,473 (998 ) 475 Ending balance $ (9,529 ) $ (2,464 ) $ (11,993 ) $ (9,529 ) $ (2,464 ) $ (11,993 ) Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended June 30, 2016 Six months ended June 30, 2016 (in thousands) Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Defined Benefit Plan Items Total Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Beginning Balance $ (51 ) $ (9,536 ) $ (8,740 ) $ (18,327 ) $ (111 ) $ (12,041 ) $ 126 $ (8,913 ) $ (20,939 ) Other comprehensive income (loss) before reclassifications 60 52 1,177 1,289 120 2,557 — 1,406 4,083 Amounts reclassified from accumulated other comprehensive loss — — (56 ) (56 ) — — (126 ) (112 ) (238 ) Net current-period other comprehensive income (loss) 60 52 1,121 1,233 120 2,557 (126 ) 1,294 3,845 Ending balance $ 9 $ (9,484 ) $ (7,619 ) $ (17,094 ) $ 9 $ (9,484 ) $ — $ (7,619 ) $ (17,094 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits There were no reclassification adjustments from accumulated other comprehensive loss to net income for the three and six months ended June 30, 2017 . The following table shows the reclassification adjustments from accumulated other comprehensive loss to net income for the three and six months ended June 30, 2016 : Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended June 30, 2016 Six months ended June 30, 2016 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Defined Benefit Plan Items Amortization of prior-service cost $ (89 ) (b) $ (177 ) (b) (89 ) Total before tax (177 ) Total before tax 33 Income tax provision 65 Income tax provision $ (56 ) Net of tax $ (112 ) Net of tax Other items Recognition of gain on sale of investment — (200 ) — Total before tax (200 ) Total before tax — Income tax provision 74 Income tax provision — Net of tax (126 ) Net of tax Total reclassifications for the period $ (56 ) Net of tax (238 ) Net of tax (a) Amounts in parentheses indicate credits to profit/loss (b) This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost (see Note 6). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company’s non-vested restricted stock that was granted prior to March 2015 is considered a participating security since the share-based awards contain a non-forfeitable right to dividends irrespective of whether the awards ultimately vest. Unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. (in thousands, except per common share data) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Net income (loss) attributable to The Andersons, Inc. $ (26,653 ) $ 14,423 $ (29,742 ) $ (273 ) Less: Distributed and undistributed earnings allocated to nonvested restricted stock — 8 — 5 Earnings (losses) available to common shareholders $ (26,653 ) $ 14,415 $ (29,742 ) $ (278 ) Earnings per share – basic: Weighted average shares outstanding – basic 28,350 28,227 28,316 28,164 Earnings (losses) per common share – basic $ (0.94 ) $ 0.51 $ (1.05 ) $ (0.01 ) Earnings per share – diluted: Weighted average shares outstanding – basic 28,350 28,227 28,316 28,164 Effect of dilutive awards — 86 — — Weighted average shares outstanding – diluted 28,350 28,313 28,316 28,164 Earnings (losses) per common share – diluted $ (0.94 ) $ 0.51 $ (1.05 ) $ (0.01 ) All outstanding share awards were antidilutive for the six and three months ended June 30, 2017 and for the six months ended June 30, 2016 as the Company experienced a net loss. There were no antidilutive stock-based awards outstanding for the three months ended June 30, 2016 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2017 , December 31, 2016 and June 30, 2016 : (in thousands) June 30, 2017 Assets (liabilities) Level 1 Level 2 Level 3 Total Restricted cash $ 1,033 $ — $ — $ 1,033 Commodity derivatives, net (a) 2,817 (8,445 ) — (5,628 ) Provisionally priced contracts (b) (87,958 ) (30,779 ) — (118,737 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 10,155 (2,158 ) — 7,997 Total $ (73,953 ) $ (41,382 ) $ 3,294 $ (112,041 ) (in thousands) December 31, 2016 Assets (liabilities) Level 1 Level 2 Level 3 Total Restricted cash $ 471 $ — $ — $ 471 Commodity derivatives, net (a) 29,872 (7,831 ) — 22,041 Provisionally priced contracts (b) (105,321 ) (64,876 ) — (170,197 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 9,391 (2,530 ) — 6,861 Total $ (65,587 ) $ (75,237 ) $ 3,294 $ (137,530 ) (in thousands) June 30, 2016 Assets (liabilities) Level 1 Level 2 Level 3 Total Cash equivalents $ 11,578 $ — $ — $ 11,578 Restricted cash 987 — — 987 Commodity derivatives, net (a) 48,412 24,083 — 72,495 Provisionally priced contracts (b) (42,213 ) (18,495 ) — (60,708 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 6,080 (5,426 ) — 654 Total $ 24,844 $ 162 $ 3,294 $ 28,300 (a) Includes associated cash posted/received as collateral (b) Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) (c) Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets (d) Included in other assets and liabilities are deferred compensation assets, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1), and interest rate derivatives (Level 2). Level 1 commodity derivatives reflect the fair value of the exchange-traded futures and options contracts that the Company holds, net of the cash collateral that the Company has in its margin account. The majority of the Company’s assets and liabilities measured at fair value are based on the market approach valuation technique. With the market approach, fair value is derived using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s net commodity derivatives primarily consist of futures or options contracts via regulated exchanges and contracts with producers or customers under which the future settlement date and bushels (or gallons in the case of ethanol contracts) of commodities to be delivered (primarily wheat, corn, soybeans and ethanol) are fixed and under which the price may or may not be fixed. Depending on the specifics of the individual contracts, the fair value is derived from the futures or options prices on the CME or the New York Mercantile Exchange for similar commodities and delivery dates as well as observable quotes for local basis adjustments (the difference, which is attributable to local market conditions, between the quoted futures price and the local cash price). Because basis for a particular commodity and location typically has multiple quoted prices from other agribusinesses in the same geographical vicinity and is used as a common pricing mechanism in the Agribusiness industry, we have concluded that basis is a Level 2 fair value input for purposes of the fair value disclosure requirements related to our commodity derivatives. Although nonperformance risk, both of the Company and the counterparty, is present in each of these commodity contracts and is a component of the estimated fair values, based on the Company’s historical experience with its producers and customers and the Company’s knowledge of their businesses, the Company does not view nonperformance risk to be a material input to fair value for these commodity contracts. These fair value disclosures exclude physical grain inventories measured at net realizable value. The net realizable value used to measure the Company’s agricultural commodity inventories is the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. This valuation would generally be considered Level 2. The amount is disclosed in Note 2. Changes in the net realizable value of commodity inventories are recognized as a component of cost of sales and merchandising revenues. Provisionally priced contract liabilities are those for which the Company has taken ownership and possession of grain but the final purchase price has not been established. In the case of payables where the unpriced portion of the contract is limited to the futures price of the underlying commodity or the Company has delivered provisionally priced grain and a subsequent payable or receivable is set up for any futures changes in the grain price, quoted CBOT prices are used and the liability is deemed to be Level 1 in the fair value hierarchy. For all other unpriced contracts which include variable futures and basis components, the amounts recorded for delayed price contracts are determined on the basis of local grain market prices at the balance sheet date and, as such, are deemed to be Level 2 in the fair value hierarchy. The risk management contract liability allows related ethanol customers to effectively unprice the futures component of their inventory for a period of time, subjecting the bushels to market fluctuations. The Company records an asset or liability for the market value changes of the commodities over the life of the contracts based on quoted CBOT prices and as such, the balance is deemed to be Level 1 in the fair value hierarchy. The Company’s stake in the Iowa Northern Railway Company ("IANR") was redeemed in the first quarter of 2016. The remaining convertible preferred securities are interests in two early-stage enterprises in the form of debt securities with the possibility of conversion to equity under certain circumstances. A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: Contingent Consideration Convertible Securities (in thousands) 2017 2016 2017 2016 Asset (liability) at January 1, $ — $ (350 ) $ 3,294 $ 13,550 Gains (losses) included in earnings — 190 — 710 Sales proceeds — — — (13,485 ) Asset (liability) at March 31, $ — $ (160 ) $ 3,294 $ 775 Gains (losses) included in earnings — 160 — 19 New agreements — — — 2,500 Asset (liability) at June 30, $ — $ — $ 3,294 $ 3,294 The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of June 30, 2017 , December 31, 2016 and June 30, 2016 : Quantitative Information about Level 3 Fair Value Measurements (in thousands) Fair Value as of June 30, 2017 Valuation Method Unobservable Input Weighted Average Convertible Notes $ 3,294 Cost Basis, Plus Interest N/A N/A (in thousands) Fair Value as of December 31, 2016 Valuation Method Unobservable Input Weighted Average Convertible Notes $ 3,294 Cost Basis, Plus Interest N/A N/A Real Property $ 11,210 Third-Party Appraisal N/A N/A (in thousands) Fair Value as of June 30, 2016 Valuation Method Unobservable Input Weighted Average Convertible Notes $ 3,294 Cost Basis, Plus Interest N/A N/A Fair Value of Financial Instruments The fair value of the Company’s long-term debt is estimated using quoted market prices or discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. As such, the Company has concluded that the fair value of long-term debt is considered Level 2 in the fair value hierarchy. (in thousands) June 30, December 31, June 30, Fair value of long-term debt, including current maturities $ 423,316 $ 450,940 $ 472,714 Fair value in excess of carrying value 2,612 3,116 16,498 The fair value of the Company’s cash equivalents, accounts receivable and accounts payable approximate their carrying value as they are close to maturity. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Equity Method Investments The Company, directly or indirectly, holds investments in companies that are accounted for under the equity method. The Company’s equity in these entities is presented at cost plus its accumulated proportional share of income or loss, less any distributions it has received. The following table presents the Company’s investment balance in each of its equity method investees by entity: (in thousands) June 30, 2017 December 31, 2016 June 30, 2016 The Andersons Albion Ethanol LLC $ 40,829 $ 38,972 $ 34,133 The Andersons Clymers Ethanol LLC 19,903 19,739 30,088 The Andersons Marathon Ethanol LLC 14,045 22,069 31,158 Lansing Trade Group, LLC 89,235 89,050 90,884 Thompsons Limited (a) 49,252 46,184 47,948 Other 2,530 917 4,267 Total $ 215,794 $ 216,931 $ 238,478 (a) Thompsons Limited and related U.S. operating company held by joint ventures On January 1, 2017, The Andersons Ethanol Investment LLC (“TAEI”) was merged with and into The Andersons Marathon Ethanol LLC (“TAME”). The Company had owned ( 66% ) of TAEI, which, in turn, had owned 50% of TAME. Pursuant to the merger, the Company’s ownership units in TAEI were canceled and converted into ownership units in TAME. As a result, the Company now directly owns 33% of the outstanding ownership units of TAME. Prior to this transaction, the noncontrolling interest in TAEI was attributed 33% of the gains and losses of TAME recorded by the Company in its equity in earnings of affiliates. The following table summarizes income (loss) earned from the Company’s equity method investments by entity: Three months ended June 30, Six months ended June 30, (in thousands) % Ownership at June 30, 2017 2017 2016 2017 2016 The Andersons Albion Ethanol LLC 55% $ 2,135 $ 1,650 $ 1,858 $ 1,328 The Andersons Clymers Ethanol LLC 39% 569 1,889 776 810 The Andersons Marathon Ethanol LLC 33% 779 1,712 316 (97 ) Lansing Trade Group, LLC 33% (a) 896 (5,333 ) 185 (8,101 ) Thompsons Limited (b) 50% 2,081 2,426 1,486 1,427 Other 5% - 50% (75 ) — (114 ) — Total $ 6,385 $ 2,344 $ 4,507 $ (4,633 ) (a) This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 0.6% (b) Thompsons Limited and related U.S. operating company held by joint ventures Total distributions received from unconsolidated affiliates were $0.6 million and $2.7 million for the six months ended June 30, 2017 and June 30, 2016 , respectively. In the second quarter of 2016, The Andersons Albion Ethanol LLC, The Andersons Clymers Ethanol LLC, The Andersons Marathon Ethanol LLC, Lansing Trade Group, and Thompsons Limited qualified as significant equity investees of the Company under the income test. The following table presents combined summarized unaudited financial information of these investments for the three and six months ended June 30, 2017 and 2016: (in thousands) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenues $ 1,380,361 $ 1,340,809 $ 3,002,406 $ 3,029,680 Gross profit 58,812 52,204 97,728 77,782 Income from continuing operations 16,328 556 11,518 (17,568 ) Net income (loss) 13,421 (2,051 ) 7,248 (20,164 ) Net income (loss) attributable to companies 13,714 (1,410 ) 7,972 (19,122 ) Investment in Debt Securities The Company previously owned 100% of the cumulative convertible preferred shares of Iowa Northern Railway Company (“IANR”), which operates a short-line railroad in Iowa. In the first quarter of 2016, these shares were redeemed and the Company no longer has an ownership stake in this entity. See Footnote 10 for additional information on the effects of this transaction. Related Party Transactions In the ordinary course of business, the Company will enter into related party transactions with each of the investments described above, along with other related parties. The following table sets forth the related party transactions entered into for the time periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Sales revenues $ 241,896 $ 176,865 $ 439,964 $ 371,702 Service fee revenues (a) 9,410 9,490 14,036 14,126 Purchases of product 167,904 116,556 302,411 218,509 Lease income (b) 1,422 1,994 2,709 3,861 Labor and benefits reimbursement (c) 6,863 6,841 10,553 10,738 Other expenses (d) — — — 149 (a) Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. (b) Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the various ethanol LLCs and IANR. (c) The Company provides all operational labor to the unconsolidated ethanol LLCs and charges them an amount equal to the Company’s costs of the related services. (d) Other expenses include payments to IANR for repair facility rent and use of their railroad reporting mark, payment to LTG for the lease of railcars and other various expenses. (in thousands) June 30, 2017 December 31, 2016 June 30, 2016 Accounts receivable (e) $ 25,673 $ 26,254 $ 20,685 Accounts payable (f) 25,590 23,961 10,022 (e) Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees. (f) Accounts payable represents amounts due to related parties for purchases of ethanol and other various items. For the three months ended June 30, 2017 and 2016 , revenues recognized for the sale of ethanol that the Company purchased from the unconsolidated ethanol LLCs were $161.3 million and $111.3 million , respectively. Additionally, for the six months ended June 30, 2017 and 2016 , revenues recognized for the sale of ethanol that the Company purchased from the unconsolidated ethanol LLCs were $284.5 million and $198.9 million , respectively. For the three months ended June 30, 2017 and 2016 , revenues recognized for the sale of corn to the unconsolidated ethanol LLCs were $125.5 million and $105.6 million , respectively. For the six months ended June 30, 2017 and 2016 , revenues recognized for the sale of corn to the unconsolidated ethanol LLCs were $243.0 million and $224.1 million , respectively. From time to time, the Company enters into derivative contracts with certain of its related parties, including the unconsolidated ethanol LLCs, LTG, and the Thompsons Limited joint ventures, for the purchase and sale of grain and ethanol, for similar price risk mitigation purposes and on similar terms as the purchase and sale of derivative contracts it enters into with unrelated parties. The fair value of derivative contract assets with related parties as of June 30, 2017 , December 31, 2016 and June 30, 2016 was $ 0.6 million , $ 4.1 million and $ 5.2 million , respectively. The fair value of derivative contract liabilities with related parties as of June 30, 2017 , December 31, 2016 and June 30, 2016 was $ 0.7 million , $ 0.1 million and $ 1.0 million , respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s operations include five reportable business segments that are distinguished primarily on the basis of products and services offered. The Grain business includes grain merchandising, the operation of terminal grain elevator facilities and the investments in LTG and Thompsons Limited. The Ethanol business purchases and sells ethanol and also manages the ethanol production facilities organized as limited liability companies, one is consolidated and three are investments accounted for under the equity method. The Company performs services under various contracts for these investments. Rail operations include the leasing, marketing and fleet management of railcars and other assets, railcar repair and metal fabrication. The Plant Nutrient business manufactures and distributes agricultural inputs, primarily fertilizer, to dealers and farmers, along with turf care and corncob-based products. The Retail business operates large retail stores, a distribution center, and a lawn and garden equipment sales and service facility. The Retail business closed during the second quarter of 2017, and liquidation efforts are substantially complete. Included in “Other” are the corporate level costs not attributed to an operating segment. The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. Inter-segment sales are made at prices comparable to normal, unaffiliated customer sales. The Company does not have any customers who represent 10 percent or more of total revenues. Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Revenues from external customers Grain $ 488,447 $ 522,989 $ 966,975 $ 1,061,803 Ethanol 187,831 142,520 341,984 257,213 Plant Nutrient 264,736 320,036 411,323 487,027 Rail 38,149 40,342 78,539 79,951 Retail 14,499 38,357 46,857 66,129 Total $ 993,662 $ 1,064,244 $ 1,845,678 $ 1,952,123 Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Inter-segment sales Grain $ 141 $ 174 $ 207 $ 1,625 Plant Nutrient 70 114 241 361 Rail 275 355 566 734 Total $ 486 $ 643 $ 1,014 $ 2,720 Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Income (loss) before income taxes Grain $ 6,929 $ (13,037 ) $ 1,856 $ (30,442 ) Ethanol 4,660 6,187 6,376 3,507 Plant Nutrient (25,825 ) 23,535 (19,154 ) 25,239 Rail 5,860 6,569 11,938 15,944 Retail (6,718 ) 1,010 (13,564 ) (1,066 ) Other (3,907 ) (2,173 ) (12,077 ) (13,073 ) Noncontrolling interests (64 ) 1,018 (10 ) 92 Total $ (19,065 ) $ 23,109 $ (24,635 ) $ 201 (in thousands) June 30, 2017 December 31, 2016 June 30, 2016 Identifiable assets Grain $ 783,316 $ 961,114 $ 879,055 Ethanol 170,730 171,115 192,470 Plant Nutrient 351,871 484,455 448,225 Rail 448,417 398,446 388,456 Retail 11,830 31,257 43,878 Other 145,261 186,462 155,331 Total $ 1,911,425 $ 2,232,849 $ 2,107,415 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is party to litigation, or threats thereof, both as defendant and plaintiff with some regularity, although individual cases that are material in size occur infrequently. As a defendant, the Company establishes reserves for claimed amounts that are considered probable and capable of estimation. If those cases are resolved for lesser amounts, the excess reserves are taken into income and, conversely, if those cases are resolved for larger than the amount the Company has accrued, the Company records additional expense. The Company believes it is unlikely that the results of its current legal proceedings for which it is the defendant, even if unfavorable, will be material. As a plaintiff, amounts that are collected can also result in sudden, non-recurring income. Litigation results depend upon a variety of factors, including the availability of evidence, the credibility of witnesses, the performance of counsel, the state of the law, and the impressions of judges and jurors, any of which can be critical in importance, yet difficult, if not impossible, to predict. Consequently, cases currently pending, or future matters, may result in unexpected, and non-recurring losses, or income, from time to time. Finally, litigation results are often subject to judicial reconsideration, appeal and further negotiation by the parties, and as a result, the final impact of a particular judicial decision may be unknown for some time, or may result in continued reserves to account for the potential of such post-verdict actions. The estimated range of loss for all outstanding claims that are considered reasonably possible is not material. Build-to-Suit Lease In August, 2015, the Company entered into a lease agre ement with an initial term of 15 years for a build-to-suit facility to be used as the new corporate headquarters which was completed in the third quarter of 2016. Since the Company is deemed to be the owner of this facility for accounting purposes during the construction period, it has recognized an asset and a corresponding financing obligation. The Company has recorded a build-to-suit financing obligation in other long-term liabilities of $23.9 million , $14.0 million , and $13.0 million at June 30, 2017 , December 31, 2016 , and June 30, 2016 , respectively. The Company has recorded a build-to-suit financing obligation in other current liabilities of $0.8 million , $0.9 million , and $1.5 million at June 30, 2017 , December 31, 2016 , and June 30, 2016 , respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Certain supplemental cash flow information, including noncash investing and financing activities for the six months ended June 30, 2017 and 2016 are as follows: Six months ended June 30, (in thousands) 2017 2016 Supplemental disclosure of cash flow information Interest paid $ 12,430 $ 9,567 Noncash investing and financing activity Capital projects incurred but not yet paid $ 3,695 $ 9,653 Investment merger (decreasing equity method investments and non-controlling interest) 8,360 — Outstanding receivable for sale of assets 4,356 — Dividends declared not yet paid 4,501 4,341 |
Sale of Assets
Sale of Assets | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Sale of Assets | Property, Plant and Equipment The components of Property, plant and equipment, net are as follows: (in thousands) June 30, December 31, June 30, Land $ 23,566 $ 30,672 $ 28,472 Land improvements and leasehold improvements 71,236 79,631 77,849 Buildings and storage facilities 298,077 322,856 290,528 Machinery and equipment 382,321 392,418 374,107 Construction in progress 7,372 12,784 51,672 782,572 838,361 822,628 Less: accumulated depreciation 359,530 388,309 375,361 $ 423,042 $ 450,052 $ 447,267 Depreciation expense on property, plant and equipment was $24.1 million and $23.8 million for the six months ended June 30, 2017 and 2016 , respectively. Additionally, depreciation expense on property, plant and equipment was $12.0 million and $11.6 million for the three months ended June 30, 2017 and 2016 , respectively. In December 2016, the Company recorded charges totaling $6.0 million for impairment of property, plant and equipment in the Retail business. This does not include $0.5 million of impairment charges related to software. The Company wrote down the value of these assets to the extent their carrying amounts exceeded fair value. The Company classified the significant assumptions used to determine fair value of the impaired assets as Level 3 inputs in the fair value hierarchy. In December 2016, the Company also recorded charges totaling $2.3 million for impairment of property, plant and equipment in the Plant Nutrient segment due to the closing of a cob facility. Rail Group Assets The components of Rail Group assets leased to others are as follows: (in thousands) June 30, December 31, June 30, Rail Group assets leased to others $ 482,524 $ 431,571 $ 442,239 Less: accumulated depreciation 107,432 104,376 102,103 $ 375,092 $ 327,195 $ 340,136 Depreciation expense on Rail Group assets leased to others amounted to $9.7 million and $9.3 million for the six months ended June 30, 2017 and 2016 , respectively. Additionally, depreciation expense on Rail Group assets leased to others amounted to $5.0 million and $4.7 million for the three months ended June 30, 2017 and 2016 , respectively. Sale of Assets On March 31, 2017 the Company sold four farm center locations in Florida for $17.4 million and recorded a $4.7 million gain, net of transaction costs in Other income, net. The sale price included a working capital adjustment of $3.6 million . On May 2, 2016 the Company sold eight grain and agronomy locations in Iowa for $54.3 million and recorded a nominal gain. |
Exit Costs and Assets Held for
Exit Costs and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Exit Costs and Assets Held for Sale | Exit Costs and Assets Held for Sale The Retail business closed during the second quarter of 2017, and liquidation efforts are substantially complete as of June 30, 2017. The Company recorded $3.5 million of exit charges during the second quarter of 2017 for a total of $11.3 million of exit charges recorded during the first six months of 2017. As a result of the closure, the Company also classified $10.0 million of Property, plant and equipment, net as Assets held for sale on the Condensed Consolidated Balance Sheet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets As previously reported, the Company had monitored the performance of its wholesale nutrient business, within the Plant Nutrient segment, throughout 2016. During the third quarter of 2016, the Company reported that the wholesale business was under pressure due to an uncertain outlook for future crop prices and decreased domestic demand for fertilizer. The Company performed its annual goodwill impairment analysis during the fourth quarter of 2016, which resulted in an excess of fair value over carrying value of 8% for the wholesale nutrient reporting unit. During the first quarter of 2017, the Company's assessment of the business did not indicate the presence of any goodwill impairment triggering events. During the second quarter of 2017, the Company identified certain factors that we considered important in assessing the requirement to perform an interim impairment evaluation for the wholesale nutrient reporting unit. First, current year actual results were significantly below historical and expected operating results. Second, the nutrient industry's future outlook continued to reflect depressed margins and minimal growth, driven by an oversupply of base nutrients, low crop prices and low farmer income. After considering these items, the Company determined that an interim goodwill impairment assessment was required, as well as an impairment assessment for our definite-lived intangible and other long-lived assets. No impairment was recognized for definite-lived intangibles and other long-lived assets. Upon early adoption of ASU No. 2017-04, the Company now uses a one-step quantitative approach that compares the business enterprise value ("BEV") of each reporting unit with its carrying value. The BEV was computed based on both an income approach (discounted cash flows) and a market approach. The income approach uses a reporting unit's estimated future cash flows, discounted at the weighted average cost of capital of a hypothetical third-party buyer. The market approach estimates fair value by applying cash flow multiples to the reporting unit's operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics to the reporting unit. Any excess of the carrying value of the goodwill over the BEV will be recorded as an impairment loss. The calculation of the BEV is based on significant unobservable inputs, such as price trends, customer demand, material costs and discount rates, and are classified as Level 3 in the fair value hierarchy. The discounted cash flow model used for the income approach assumed discrete period revenue growth through 2021 that was reflective of market opportunities, changes in product mix, and cyclical trends within the wholesale nutrient business. In the terminal year, the Company assumed a long-term earnings growth rate of 2.0 percent that is believed to be appropriate given the current industry-specific expectations. As of the valuation date, the Company utilized a weighted-average cost of capital of 10.1 percent , which reflects the relative risk and time value of money. The testing resulted in a $42.0 million impairment charge for goodwill associated with the Wholesale reporting unit. With the estimated fair value of the reporting unit now equaling its carrying value as of June 30, 2017, the Wholesale reporting unit has a risk of future impairment to the remaining goodwill balance of $17.8 million . A deterioration in operating performance significantly below current expectations, including changes in projected future revenue, profitability and cash flow, as well as higher working capital, interest rates, or cost of capital, could have a negative effect on the fair value of the reporting unit. It is also possible the Company's performance meets current expectations but is still unable overcome the general trends in the business and/or macro-economic factors in the time frame forecast, which could impact the long-term discount rate values used in estimating fair value, causing the estimated fair value of the reporting unit to fall below its carrying value. This would result in recording another impairment to the goodwill of the wholesale business. The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2017 are as follows: (in thousands) Grain Plant Nutrient Rail Total Balance as of January 1, 2017 $ — $ 59,767 $ 4,167 $ 63,934 Acquisitions 1,171 — — 1,171 Impairments — (42,000 ) — (42,000 ) Balance as of June 30, 2017 $ 1,171 $ 17,767 $ 4,167 $ 23,105 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory, Net [Abstract] | |
Classes of inventories | Major classes of inventories are as follows: (in thousands) June 30, December 31, June 30, Grain $ 373,863 $ 495,139 $ 348,757 Ethanol and co-products 14,041 10,887 15,298 Plant nutrients and cob products 69,365 150,259 91,227 Retail merchandise 906 20,678 25,161 Railcar repair parts 5,030 5,784 5,793 $ 463,205 $ 682,747 $ 486,236 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | The components of Property, plant and equipment, net are as follows: (in thousands) June 30, December 31, June 30, Land $ 23,566 $ 30,672 $ 28,472 Land improvements and leasehold improvements 71,236 79,631 77,849 Buildings and storage facilities 298,077 322,856 290,528 Machinery and equipment 382,321 392,418 374,107 Construction in progress 7,372 12,784 51,672 782,572 838,361 822,628 Less: accumulated depreciation 359,530 388,309 375,361 $ 423,042 $ 450,052 $ 447,267 |
Components of railcar assets leased to others | The components of Rail Group assets leased to others are as follows: (in thousands) June 30, December 31, June 30, Rail Group assets leased to others $ 482,524 $ 431,571 $ 442,239 Less: accumulated depreciation 107,432 104,376 102,103 $ 375,092 $ 327,195 $ 340,136 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | The Company’s short-term and long-term debt at June 30, 2017 , December 31, 2016 and June 30, 2016 consisted of the following: (in thousands) June 30, December 31, June 30, Short-term Debt – Non-Recourse $ — $ — $ — Short-term Debt - Recourse $ 124,000 $ 29,000 $ 179,404 Total Short-term Debt 124,000 29,000 179,404 Current Maturities of Long-term Debt – Non-Recourse — — — Current Maturities of Long-term Debt – Recourse 62,482 47,545 53,720 Total Current Maturities of Long-term Debt 62,482 47,545 53,720 Long-term Debt, Less: Current Maturities – Non-Recourse — — — Long-term Debt, Less: Current Maturities – Recourse 354,066 397,065 398,746 Total Long-term Debt, Less: Current Maturities $ 354,066 $ 397,065 $ 398,746 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within current or noncurrent commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets: June 30, 2017 December 31, 2016 June 30, 2016 (in thousands) Net derivative asset position Net derivative liability position Net derivative asset position Net derivative liability position Net derivative asset position Net derivative liability position Collateral paid (received) $ 15,452 $ — $ 28,273 $ — $ 38,252 $ (480 ) Fair value of derivatives (12,835 ) — 1,599 — 13,491 1,480 Balance at end of period $ 2,617 $ — $ 29,872 $ — $ 51,743 $ 1,000 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: June 30, 2017 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 26,101 $ 1,201 $ 4,404 $ 2 $ 31,708 Commodity derivative liabilities (29,934 ) (10 ) (22,508 ) (336 ) (52,788 ) Cash collateral 15,452 — — — 15,452 Balance sheet line item totals $ 11,619 $ 1,191 $ (18,104 ) $ (334 ) $ (5,628 ) December 31, 2016 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 36,146 $ 140 $ 1,447 $ 6 $ 37,739 Commodity derivative liabilities (18,972 ) (40 ) (24,614 ) (345 ) (43,971 ) Cash collateral 28,273 — — — 28,273 Balance sheet line item totals $ 45,447 $ 100 $ (23,167 ) $ (339 ) $ 22,041 June 30, 2016 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 134,504 $ 2,095 $ 5,925 $ 84 $ 142,608 Commodity derivative liabilities (56,832 ) (161 ) (48,628 ) (2,266 ) (107,887 ) Cash collateral 38,252 — (480 ) — 37,772 Balance sheet line item totals $ 115,924 $ 1,934 $ (43,183 ) $ (2,182 ) $ 72,493 |
Amounts of quantities outstanding included in commodity derivative contracts | The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at June 30, 2017 , December 31, 2016 and June 30, 2016 : June 30, 2017 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 184,197 — — — Soybeans 31,532 — — — Wheat 7,340 — — — Oats 41,526 — — — Ethanol — 256,518 — — Corn oil — — 4,658 — Other 90 500 — 100 Subtotal 264,685 257,018 4,658 100 Exchange traded: Corn 94,895 — — — Soybeans 27,470 — — — Wheat 43,925 — — — Oats 2,290 — — — Ethanol — 3,990 — — Other — 840 — 60 Subtotal 168,580 4,830 — 60 Total 433,265 261,848 4,658 160 December 31, 2016 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 175,549 — — — Soybeans 20,592 — — — Wheat 7,177 — — — Oats 36,025 — — — Ethanol — 215,081 — — Corn oil — — 9,358 — Other 108 1,144 — 110 Subtotal 239,451 216,225 9,358 110 Exchange traded: Corn 63,225 — — — Soybeans 39,005 — — — Wheat 45,360 — — — Oats 4,120 — — — Ethanol — 78,120 — — Subtotal 151,710 78,120 — — Total 391,161 294,345 9,358 110 June 30, 2016 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 242,269 — — — Soybeans 52,599 — — — Wheat 13,100 — — — Oats 30,722 — — — Ethanol — 130,464 — — Corn oil — — 13,800 — Other 17 — — 128 Subtotal 338,707 130,464 13,800 128 Exchange traded: Corn 148,665 — — — Soybeans 46,570 — — — Wheat 22,790 — — — Oats 2,820 — — — Ethanol — 36,540 — — Subtotal 220,845 36,540 — — Total 559,552 167,004 13,800 128 |
Company's Condensed Consolidated Statement of Income gains and location of line items | The gains and losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for foreign currency contract derivatives not designated as hedging instruments are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Foreign currency derivative gains included in Other income, net $ 669 $ (87 ) $ 767 $ 1,391 The gains and losses included in the Company’s Condensed Consolidated Statements of Operations and the line items in which they are located are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ (41,873 ) $ 34,800 $ (14,848 ) $ 25,941 The gains and losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for interest rate derivatives not designated as hedging instruments are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Interest income (expense) $ (17 ) $ (694 ) $ 372 $ (2,294 ) |
Schedule of Fair Value of Interest Rate Derivative Liabilities | t June 30, 2017 , December 31, 2016 and June 30, 2016 , the Company had recorded the following amounts for the fair value of the Company's interest rate derivatives: June 30, 2017 December 31, 2016 June 30, 2016 (in thousands) Derivatives not designated as hedging instruments Interest rate contracts included in other long-term liabilities $ (2,158 ) $ (2,530 ) $ (5,422 ) Total fair value of interest rate derivatives not designated as hedging instruments $ (2,158 ) $ (2,530 ) $ (5,422 ) The Company also has foreign currency derivatives which are considered effective economic hedges of specified economic risks but which are not designated as accounting hedges. At June 30, 2017 , December 31, 2016 and June 30, 2016 , the Company had recorded the following amounts for the fair value of the Company's foreign currency derivatives: June 30, 2017 December 31, 2016 June 30, 2016 (in thousands) Derivatives not designated as hedging instruments Foreign currency contracts included in short-term assets (liabilities) $ 654 $ (112 ) $ 1,391 Total fair value of foreign currency contract derivatives not designated as hedging instruments $ 654 $ (112 ) $ 1,391 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Pension Benefits | |
Employee Benefit Plans [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The following are components of the net periodic benefit cost for the pension and postretirement benefit plans maintained by the Company for the three and six months ended June 30, 2017 and 2016 : Pension Benefits (in thousands) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Service cost $ — $ — $ — $ — Interest cost 39 48 78 97 Recognized net actuarial loss 63 37 126 73 Benefit cost $ 102 $ 85 $ 204 $ 170 |
Postretirement Benefits | |
Employee Benefit Plans [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Postretirement Benefits (in thousands) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Service cost $ 106 $ 167 $ 229 $ 380 Interest cost 282 370 582 775 Amortization of prior service cost — (89 ) — (177 ) Recognized net actuarial loss — 149 — 384 Benefit cost $ 388 $ 597 $ 811 $ 1,362 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the after-tax components of accumulated other comprehensive income (loss) attributable to the Company for the three and six months ended June 30, 2017 and 2016 : Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended June 30, 2017 Six months ended June 30, 2017 (in thousands) Foreign Currency Translation Adjustment Defined Benefit Plan Items Total Foreign Currency Translation Adjustment Defined Benefit Plan Items Total Beginning Balance $ (10,488 ) $ (1,476 ) $ (11,964 ) $ (11,002 ) $ (1,466 ) $ (12,468 ) Other comprehensive income (loss) before reclassifications 959 (988 ) (29 ) 1,473 (998 ) 475 Net current-period other comprehensive income (loss) 959 (988 ) (29 ) 1,473 (998 ) 475 Ending balance $ (9,529 ) $ (2,464 ) $ (11,993 ) $ (9,529 ) $ (2,464 ) $ (11,993 ) Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended June 30, 2016 Six months ended June 30, 2016 (in thousands) Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Defined Benefit Plan Items Total Losses on Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Debt Securities Defined Benefit Plan Items Total Beginning Balance $ (51 ) $ (9,536 ) $ (8,740 ) $ (18,327 ) $ (111 ) $ (12,041 ) $ 126 $ (8,913 ) $ (20,939 ) Other comprehensive income (loss) before reclassifications 60 52 1,177 1,289 120 2,557 — 1,406 4,083 Amounts reclassified from accumulated other comprehensive loss — — (56 ) (56 ) — — (126 ) (112 ) (238 ) Net current-period other comprehensive income (loss) 60 52 1,121 1,233 120 2,557 (126 ) 1,294 3,845 Ending balance $ 9 $ (9,484 ) $ (7,619 ) $ (17,094 ) $ 9 $ (9,484 ) $ — $ (7,619 ) $ (17,094 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits |
Reclassification out of Accumulated Other Comprehensive Income | The following table shows the reclassification adjustments from accumulated other comprehensive loss to net income for the three and six months ended June 30, 2016 : Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended June 30, 2016 Six months ended June 30, 2016 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income Is Presented Defined Benefit Plan Items Amortization of prior-service cost $ (89 ) (b) $ (177 ) (b) (89 ) Total before tax (177 ) Total before tax 33 Income tax provision 65 Income tax provision $ (56 ) Net of tax $ (112 ) Net of tax Other items Recognition of gain on sale of investment — (200 ) — Total before tax (200 ) Total before tax — Income tax provision 74 Income tax provision — Net of tax (126 ) Net of tax Total reclassifications for the period $ (56 ) Net of tax (238 ) Net of tax (a) Amounts in parentheses indicate credits to profit/loss (b) This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost (see Note 6). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | (in thousands, except per common share data) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Net income (loss) attributable to The Andersons, Inc. $ (26,653 ) $ 14,423 $ (29,742 ) $ (273 ) Less: Distributed and undistributed earnings allocated to nonvested restricted stock — 8 — 5 Earnings (losses) available to common shareholders $ (26,653 ) $ 14,415 $ (29,742 ) $ (278 ) Earnings per share – basic: Weighted average shares outstanding – basic 28,350 28,227 28,316 28,164 Earnings (losses) per common share – basic $ (0.94 ) $ 0.51 $ (1.05 ) $ (0.01 ) Earnings per share – diluted: Weighted average shares outstanding – basic 28,350 28,227 28,316 28,164 Effect of dilutive awards — 86 — — Weighted average shares outstanding – diluted 28,350 28,313 28,316 28,164 Earnings (losses) per common share – diluted $ (0.94 ) $ 0.51 $ (1.05 ) $ (0.01 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2017 , December 31, 2016 and June 30, 2016 : (in thousands) June 30, 2017 Assets (liabilities) Level 1 Level 2 Level 3 Total Restricted cash $ 1,033 $ — $ — $ 1,033 Commodity derivatives, net (a) 2,817 (8,445 ) — (5,628 ) Provisionally priced contracts (b) (87,958 ) (30,779 ) — (118,737 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 10,155 (2,158 ) — 7,997 Total $ (73,953 ) $ (41,382 ) $ 3,294 $ (112,041 ) (in thousands) December 31, 2016 Assets (liabilities) Level 1 Level 2 Level 3 Total Restricted cash $ 471 $ — $ — $ 471 Commodity derivatives, net (a) 29,872 (7,831 ) — 22,041 Provisionally priced contracts (b) (105,321 ) (64,876 ) — (170,197 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 9,391 (2,530 ) — 6,861 Total $ (65,587 ) $ (75,237 ) $ 3,294 $ (137,530 ) (in thousands) June 30, 2016 Assets (liabilities) Level 1 Level 2 Level 3 Total Cash equivalents $ 11,578 $ — $ — $ 11,578 Restricted cash 987 — — 987 Commodity derivatives, net (a) 48,412 24,083 — 72,495 Provisionally priced contracts (b) (42,213 ) (18,495 ) — (60,708 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 6,080 (5,426 ) — 654 Total $ 24,844 $ 162 $ 3,294 $ 28,300 (a) Includes associated cash posted/received as collateral (b) Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) (c) Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets (d) Included in other assets and liabilities are deferred compensation assets, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1), and interest rate derivatives (Level 2) |
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: Contingent Consideration Convertible Securities (in thousands) 2017 2016 2017 2016 Asset (liability) at January 1, $ — $ (350 ) $ 3,294 $ 13,550 Gains (losses) included in earnings — 190 — 710 Sales proceeds — — — (13,485 ) Asset (liability) at March 31, $ — $ (160 ) $ 3,294 $ 775 Gains (losses) included in earnings — 160 — 19 New agreements — — — 2,500 Asset (liability) at June 30, $ — $ — $ 3,294 $ 3,294 |
Fair Value Inputs, Assets, Quantitative Information | The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of June 30, 2017 , December 31, 2016 and June 30, 2016 : Quantitative Information about Level 3 Fair Value Measurements (in thousands) Fair Value as of June 30, 2017 Valuation Method Unobservable Input Weighted Average Convertible Notes $ 3,294 Cost Basis, Plus Interest N/A N/A (in thousands) Fair Value as of December 31, 2016 Valuation Method Unobservable Input Weighted Average Convertible Notes $ 3,294 Cost Basis, Plus Interest N/A N/A Real Property $ 11,210 Third-Party Appraisal N/A N/A (in thousands) Fair Value as of June 30, 2016 Valuation Method Unobservable Input Weighted Average Convertible Notes $ 3,294 Cost Basis, Plus Interest N/A N/A |
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | The fair value of the Company’s long-term debt is estimated using quoted market prices or discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. As such, the Company has concluded that the fair value of long-term debt is considered Level 2 in the fair value hierarchy. (in thousands) June 30, December 31, June 30, Fair value of long-term debt, including current maturities $ 423,316 $ 450,940 $ 472,714 Fair value in excess of carrying value 2,612 3,116 16,498 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Company's investment balance in each of its equity method investees by entity | The following table presents combined summarized unaudited financial information of these investments for the three and six months ended June 30, 2017 and 2016: (in thousands) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenues $ 1,380,361 $ 1,340,809 $ 3,002,406 $ 3,029,680 Gross profit 58,812 52,204 97,728 77,782 Income from continuing operations 16,328 556 11,518 (17,568 ) Net income (loss) 13,421 (2,051 ) 7,248 (20,164 ) Net income (loss) attributable to companies 13,714 (1,410 ) 7,972 (19,122 ) The following table presents the Company’s investment balance in each of its equity method investees by entity: (in thousands) June 30, 2017 December 31, 2016 June 30, 2016 The Andersons Albion Ethanol LLC $ 40,829 $ 38,972 $ 34,133 The Andersons Clymers Ethanol LLC 19,903 19,739 30,088 The Andersons Marathon Ethanol LLC 14,045 22,069 31,158 Lansing Trade Group, LLC 89,235 89,050 90,884 Thompsons Limited (a) 49,252 46,184 47,948 Other 2,530 917 4,267 Total $ 215,794 $ 216,931 $ 238,478 (a) Thompsons Limited and related U.S. operating company held by joint ventures |
Income (loss) earned from the Company's equity method investments by entity | The following table summarizes income (loss) earned from the Company’s equity method investments by entity: Three months ended June 30, Six months ended June 30, (in thousands) % Ownership at June 30, 2017 2017 2016 2017 2016 The Andersons Albion Ethanol LLC 55% $ 2,135 $ 1,650 $ 1,858 $ 1,328 The Andersons Clymers Ethanol LLC 39% 569 1,889 776 810 The Andersons Marathon Ethanol LLC 33% 779 1,712 316 (97 ) Lansing Trade Group, LLC 33% (a) 896 (5,333 ) 185 (8,101 ) Thompsons Limited (b) 50% 2,081 2,426 1,486 1,427 Other 5% - 50% (75 ) — (114 ) — Total $ 6,385 $ 2,344 $ 4,507 $ (4,633 ) (a) This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 0.6% (b) Thompsons Limited and related U.S. operating company held by joint ventures |
Schedule of aggregate summarized financial information of subsidiaries | The following table sets forth the related party transactions entered into for the time periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Sales revenues $ 241,896 $ 176,865 $ 439,964 $ 371,702 Service fee revenues (a) 9,410 9,490 14,036 14,126 Purchases of product 167,904 116,556 302,411 218,509 Lease income (b) 1,422 1,994 2,709 3,861 Labor and benefits reimbursement (c) 6,863 6,841 10,553 10,738 Other expenses (d) — — — 149 (a) Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. (b) Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the various ethanol LLCs and IANR. (c) The Company provides all operational labor to the unconsolidated ethanol LLCs and charges them an amount equal to the Company’s costs of the related services. (d) Other expenses include payments to IANR for repair facility rent and use of their railroad reporting mark, payment to LTG for the lease of railcars and other various expenses. (in thousands) June 30, 2017 December 31, 2016 June 30, 2016 Accounts receivable (e) $ 25,673 $ 26,254 $ 20,685 Accounts payable (f) 25,590 23,961 10,022 (e) Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees. (f) Accounts payable represents amounts due to related parties for purchases of ethanol and other various items. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Revenues from external customers Grain $ 488,447 $ 522,989 $ 966,975 $ 1,061,803 Ethanol 187,831 142,520 341,984 257,213 Plant Nutrient 264,736 320,036 411,323 487,027 Rail 38,149 40,342 78,539 79,951 Retail 14,499 38,357 46,857 66,129 Total $ 993,662 $ 1,064,244 $ 1,845,678 $ 1,952,123 Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Inter-segment sales Grain $ 141 $ 174 $ 207 $ 1,625 Plant Nutrient 70 114 241 361 Rail 275 355 566 734 Total $ 486 $ 643 $ 1,014 $ 2,720 Three months ended June 30, Six months ended June 30, (in thousands) 2017 2016 2017 2016 Income (loss) before income taxes Grain $ 6,929 $ (13,037 ) $ 1,856 $ (30,442 ) Ethanol 4,660 6,187 6,376 3,507 Plant Nutrient (25,825 ) 23,535 (19,154 ) 25,239 Rail 5,860 6,569 11,938 15,944 Retail (6,718 ) 1,010 (13,564 ) (1,066 ) Other (3,907 ) (2,173 ) (12,077 ) (13,073 ) Noncontrolling interests (64 ) 1,018 (10 ) 92 Total $ (19,065 ) $ 23,109 $ (24,635 ) $ 201 (in thousands) June 30, 2017 December 31, 2016 June 30, 2016 Identifiable assets Grain $ 783,316 $ 961,114 $ 879,055 Ethanol 170,730 171,115 192,470 Plant Nutrient 351,871 484,455 448,225 Rail 448,417 398,446 388,456 Retail 11,830 31,257 43,878 Other 145,261 186,462 155,331 Total $ 1,911,425 $ 2,232,849 $ 2,107,415 |
Supplemental Cash Flow Inform37
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow Supplemental Information | Certain supplemental cash flow information, including noncash investing and financing activities for the six months ended June 30, 2017 and 2016 are as follows: Six months ended June 30, (in thousands) 2017 2016 Supplemental disclosure of cash flow information Interest paid $ 12,430 $ 9,567 Noncash investing and financing activity Capital projects incurred but not yet paid $ 3,695 $ 9,653 Investment merger (decreasing equity method investments and non-controlling interest) 8,360 — Outstanding receivable for sale of assets 4,356 — Dividends declared not yet paid 4,501 4,341 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amount of Goodwill by Reportable Segment | The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2017 are as follows: (in thousands) Grain Plant Nutrient Rail Total Balance as of January 1, 2017 $ — $ 59,767 $ 4,167 $ 63,934 Acquisitions 1,171 — — 1,171 Impairments — (42,000 ) — (42,000 ) Balance as of June 30, 2017 $ 1,171 $ 17,767 $ 4,167 $ 23,105 |
Inventories (Details)
Inventories (Details) $ in Thousands, bu in Millions | Jun. 30, 2017USD ($)bu | Dec. 31, 2016USD ($)bu | Jun. 30, 2016USD ($)bu |
Inventory, Net [Abstract] | |||
Grain | $ 373,863 | $ 495,139 | $ 348,757 |
Ethanol and co-products | 14,041 | 10,887 | 15,298 |
Plant nutrients and cob products | 69,365 | 150,259 | 91,227 |
Retail merchandise | 906 | 20,678 | 25,161 |
Railcar repair parts | 5,030 | 5,784 | 5,793 |
Total inventories | $ 463,205 | $ 682,747 | $ 486,236 |
Bushels of grain held in storage and excluded from inventory calculations | bu | 0.8 | 0.9 | 4 |
Property, Plant and Equipment40
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Components of property, plant and equipment | |||
Land | $ 23,566 | $ 30,672 | $ 28,472 |
Land improvements and leasehold improvements | 71,236 | 79,631 | 77,849 |
Buildings and storage facilities | 298,077 | 322,856 | 290,528 |
Machinery and equipment | 382,321 | 392,418 | 374,107 |
Construction in progress | 7,372 | 12,784 | 51,672 |
Property, plant and equipment, gross | 782,572 | 838,361 | 822,628 |
Less: accumulated depreciation | 359,530 | 388,309 | 375,361 |
Property, plant and equipment, net | $ 423,042 | $ 450,052 | $ 447,267 |
Property, Plant and Equipment41
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 12 | $ 11.6 | $ 24.1 | $ 23.8 | |
Depreciation expense on railcar assets leased to others | $ 5 | $ 4.7 | $ 9.7 | $ 9.3 | |
Retail | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of long-lived assets | $ 6 | ||||
Capitalized computer software, impairments | 0.5 | ||||
Plant Nutrient | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of long-lived assets | $ 2.3 |
Property, Plant and Equipment42
Property, Plant and Equipment (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Components of Railcar assets leased to others | |||
Rail Group assets leased to others, gross | $ 482,524 | $ 431,571 | $ 442,239 |
Less: accumulated depreciation | 107,432 | 104,376 | 102,103 |
Railcar assets leased to others, net | $ 375,092 | $ 327,195 | $ 340,136 |
Debt (Details Textual)
Debt (Details Textual) - Line of credit - USD ($) $ in Millions | Jun. 30, 2017 | Apr. 13, 2017 |
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 820 | $ 800 |
Total available for borrowings under lines of credit | 633.5 | |
Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 20 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||
Short-term debt | $ 124,000 | $ 29,000 | $ 179,404 |
Long-term debt | |||
Total current maturities of long-term debt | 62,482 | 47,545 | 53,720 |
Total long-term debt, less current maturities | 354,066 | 397,065 | 398,746 |
Nonrecourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 0 | 0 | 0 |
Long-term debt | |||
Total current maturities of long-term debt | 0 | 0 | 0 |
Total long-term debt, less current maturities | 0 | 0 | 0 |
Recourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 124,000 | 29,000 | 179,404 |
Long-term debt | |||
Total current maturities of long-term debt | 62,482 | 47,545 | 53,720 |
Total long-term debt, less current maturities | $ 354,066 | $ 397,065 | $ 398,746 |
Derivatives (Details Textual)
Derivatives (Details Textual) | 6 Months Ended |
Jun. 30, 2017 | |
Derivatives (Textual) [Abstract] | |
Maximum period in which contracts for the sale of grain to processors or other consumers extend (years) | 1 year |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | |||
Net derivative asset position, Collateral paid (received) | $ 15,452 | $ 28,273 | $ 38,252 |
Net derivative asset position, Fair value of derivatives | (12,835) | 1,599 | 13,491 |
Net derivative asset position, net | 2,617 | 29,872 | 51,743 |
Net derivative liability position, Collateral paid | 0 | 0 | (480) |
Net derivative liability position, Fair value of derivatives | 0 | 0 | 1,480 |
Net derivative liability position, net | $ 0 | $ 0 | $ 1,000 |
Derivatives (Details 1)
Derivatives (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | $ (12,835) | $ 1,599 | $ 13,491 |
Commodity derivative liabilities | 0 | 0 | (1,480) |
Commodity derivative assets - current | 11,619 | 45,447 | 115,924 |
Commodity derivative assets - noncurrent | 1,191 | 100 | 1,934 |
Commodity derivative liabilities - current | (18,104) | (23,167) | (43,183) |
Commodity derivative liabilities - noncurrent | (334) | (339) | (2,182) |
Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 31,708 | 37,739 | 142,608 |
Commodity derivative liabilities | (52,788) | (43,971) | (107,887) |
Cash collateral | 15,452 | 28,273 | 37,772 |
Total | (5,628) | 22,041 | 72,493 |
Commodity Derivative Assets - Current | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 26,101 | 36,146 | 134,504 |
Commodity derivative liabilities | (29,934) | (18,972) | (56,832) |
Cash collateral | 15,452 | 28,273 | 38,252 |
Commodity derivative assets - current | 11,619 | 45,447 | 115,924 |
Commodity Derivative Assets - Noncurrent | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 1,201 | 140 | 2,095 |
Commodity derivative liabilities | (10) | (40) | (161) |
Cash collateral | 0 | 0 | 0 |
Commodity derivative assets - noncurrent | 1,191 | 100 | 1,934 |
Commodity Derivative Liabilities - Current | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 4,404 | 1,447 | 5,925 |
Commodity derivative liabilities | (22,508) | (24,614) | (48,628) |
Cash collateral | 0 | 0 | (480) |
Commodity derivative liabilities - current | (18,104) | (23,167) | (43,183) |
Commodity Derivative Liabilities - Noncurrent | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 2 | 6 | 84 |
Commodity derivative liabilities | (336) | (345) | (2,266) |
Cash collateral | 0 | 0 | 0 |
Commodity derivative liabilities - noncurrent | $ (334) | $ (339) | $ (2,182) |
Derivatives (Details 2)
Derivatives (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commodity | Cost of Sales and Merchandising Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments | $ (41,873) | $ 34,800 | $ (14,848) | $ 25,941 |
Foreign currency contract | Other Income | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments | 669 | (87) | 767 | 1,391 |
Interest rate contracts | Interest Expense | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments | $ (17) | $ (694) | $ 372 | $ (2,294) |
Derivatives (Details 3)
Derivatives (Details 3) lb in Thousands, gal in Thousands, bu in Thousands, T in Thousands | Jun. 30, 2017lb | Jun. 30, 2017bu | Jun. 30, 2017T | Jun. 30, 2017gal | Dec. 31, 2016lb | Dec. 31, 2016bu | Dec. 31, 2016T | Dec. 31, 2016gal | Jun. 30, 2016lb | Jun. 30, 2016bu | Jun. 30, 2016T | Jun. 30, 2016gal |
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 4,658 | 433,265 | 160 | 261,848 | 9,358 | 391,161 | 110 | 294,345 | 13,800 | 559,552 | 128 | 167,004 |
Non-exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 4,658 | 264,685 | 100 | 257,018 | 9,358 | 239,451 | 110 | 216,225 | 13,800 | 338,707 | 128 | 130,464 |
Non-exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 184,197 | 0 | 0 | 0 | 175,549 | 0 | 0 | 0 | 242,269 | 0 | 0 |
Non-exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 31,532 | 0 | 0 | 0 | 20,592 | 0 | 0 | 0 | 52,599 | 0 | 0 |
Non-exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 7,340 | 0 | 0 | 0 | 7,177 | 0 | 0 | 0 | 13,100 | 0 | 0 |
Non-exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 41,526 | 0 | 0 | 0 | 36,025 | 0 | 0 | 0 | 30,722 | 0 | 0 |
Non-exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 256,518 | 0 | 0 | 0 | 215,081 | 0 | 0 | 0 | 130,464 |
Non-exchange Traded | Corn Oil | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 4,658 | 0 | 0 | 0 | 9,358 | 0 | 0 | 0 | 13,800 | 0 | 0 | 0 |
Non-exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 90 | 100 | 500 | 0 | 108 | 110 | 1,144 | 0 | 17 | 128 | 0 |
Exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 168,580 | 60 | 4,830 | 0 | 151,710 | 0 | 78,120 | 0 | 220,845 | 0 | 36,540 |
Exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 94,895 | 0 | 0 | 0 | 63,225 | 0 | 0 | 0 | 148,665 | 0 | 0 |
Exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 27,470 | 0 | 0 | 0 | 39,005 | 0 | 0 | 0 | 46,570 | 0 | 0 |
Exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 43,925 | 0 | 0 | 0 | 45,360 | 0 | 0 | 0 | 22,790 | 0 | 0 |
Exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 2,290 | 0 | 0 | 0 | 4,120 | 0 | 0 | 0 | 2,820 | 0 | 0 |
Exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 3,990 | 0 | 0 | 0 | 78,120 | 0 | 0 | 0 | 36,540 |
Exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 60 | 840 |
Derivatives (Details 4)
Derivatives (Details 4) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | $ (2,158) | $ (2,530) | $ (5,422) |
Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative assets | 654 | (112) | 1,391 |
Other long term liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | (2,158) | (2,530) | (5,422) |
Short term assets | Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative assets | $ 654 | $ (112) | $ 1,391 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Benefits | ||||
Components of the net periodic benefit cost | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 39 | 48 | 78 | 97 |
Recognized net actuarial loss | 63 | 37 | 126 | 73 |
Benefit cost (income) | 102 | 85 | 204 | 170 |
Postretirement Benefits | ||||
Components of the net periodic benefit cost | ||||
Service cost | 106 | 167 | 229 | 380 |
Interest cost | 282 | 370 | 582 | 775 |
Amortization of prior service cost | 0 | (89) | 0 | (177) |
Recognized net actuarial loss | 0 | 149 | 0 | 384 |
Benefit cost (income) | $ 388 | $ 597 | $ 811 | $ 1,362 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||
U.S. Federal tax rate | 35.00% | 35.00% | ||
Income tax expense (benefit) | $ 7,652 | $ 7,668 | $ 5,117 | $ 382 |
Effective tax rate | (40.10%) | 33.20% | (20.80%) | 189.60% |
Goodwill write-off | $ 42,000 | $ 0 | $ 42,000 | $ 0 |
Discrete tax charges related to state income taxes percent | 174.70% | |||
State and Local Jurisdiction | ||||
Income Tax Contingency [Line Items] | ||||
Decrease in reserve for unrecognized state income tax benefits under appeal | 300 | |||
Current state income tax payable | $ 300 | $ 300 |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | $ (11,964) | $ (18,327) | $ (12,468) | $ (20,939) |
Other comprehensive income (loss) before reclassifications | [1] | (29) | 1,289 | 475 | 4,083 |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (56) | (238) | ||
Other comprehensive income (loss) | [1] | (29) | 1,233 | 475 | 3,845 |
Ending balance | [1] | (11,993) | (17,094) | (11,993) | (17,094) |
Losses on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | 0 | (51) | 0 | (111) |
Other comprehensive income (loss) before reclassifications | [1] | 0 | 60 | 0 | 120 |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | ||
Other comprehensive income (loss) | [1] | 0 | 60 | 0 | 120 |
Ending balance | [1] | 0 | 9 | 0 | 9 |
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (10,488) | (9,536) | (11,002) | (12,041) |
Other comprehensive income (loss) before reclassifications | [1] | 959 | 52 | 1,473 | 2,557 |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | ||
Other comprehensive income (loss) | [1] | 959 | 52 | 1,473 | 2,557 |
Ending balance | [1] | (9,529) | (9,484) | (9,529) | (9,484) |
Investment in Debt Securities | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | 0 | 126 | ||
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (126) | |||
Other comprehensive income (loss) | [1] | 0 | (126) | ||
Ending balance | [1] | 0 | 0 | 0 | 0 |
Defined Benefit Plan Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (1,476) | (8,740) | (1,466) | (8,913) |
Other comprehensive income (loss) before reclassifications | [1] | (988) | 1,177 | (998) | 1,406 |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (56) | (112) | ||
Other comprehensive income (loss) | [1] | (988) | 1,121 | (998) | 1,294 |
Ending balance | [1] | $ (2,464) | $ (7,619) | $ (2,464) | $ (7,619) |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Loss - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income (loss) before income taxes | $ (19,065) | $ 23,109 | $ (24,635) | $ 201 | ||
Income tax provision (benefit) | 7,652 | 7,668 | 5,117 | 382 | ||
Net income (loss) | (26,717) | 15,441 | $ (29,752) | (181) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income (loss) | [1] | (56) | (238) | |||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of prior-service cost | [2],[3] | (89) | (177) | |||
Income (loss) before income taxes | (89) | (177) | [2] | |||
Income tax provision (benefit) | 33 | 65 | ||||
Net income (loss) | $ (56) | (112) | [2] | |||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Recognition of gain on sale of investment | 0 | (200) | [1] | |||
Income (loss) before income taxes | 0 | (200) | [1] | |||
Income tax provision (benefit) | 0 | 74 | ||||
Net income (loss) | $ 0 | $ (126) | [1] | |||
[1] | Amounts in parentheses indicate credits to profit/loss | |||||
[2] | All amounts are net of tax. Amounts in parentheses indicate debits | |||||
[3] | This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost (see Note 6). |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to The Andersons, Inc. | $ (26,653) | $ 14,423 | $ (29,742) | $ (273) |
Less: Distributed and undistributed earnings allocated to nonvested restricted stock | 0 | 8 | 0 | 5 |
Earnings available to common shareholders | $ (26,653) | $ 14,415 | $ (29,742) | $ (278) |
Earnings per share - basic: | ||||
Weighted average shares outstanding - basic (shares) | 28,350,000 | 28,227,000 | 28,316,000 | 28,164,000 |
Earnings per common share - basic (dollars per share) | $ (0.94) | $ 0.51 | $ (1.05) | $ (0.01) |
Earnings per share - diluted: | ||||
Weighted average shares outstanding - basic (shares) | 28,350,000 | 28,227,000 | 28,316,000 | 28,164,000 |
Effect of dilutive awards (shares) | 0 | 86,000 | 0 | 0 |
Weighted average shares outstanding - diluted (shares) | 28,350,000 | 28,313,000 | 28,316,000 | 28,164,000 |
Earnings per common share - diluted (dollars per share) | $ (0.94) | $ 0.51 | $ (1.05) | $ (0.01) |
Earnings Per Share (Textual) [Abstract] | ||||
Antidilutive stock-based awards outstanding (shares) | 0 | 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Assets and liabilities measured at fair value on a recurring basis | |||
Cash equivalents | $ 11,578 | ||
Restricted cash | $ 1,033 | $ 471 | 987 |
Commodity derivatives, net | (5,628) | 22,041 | 72,495 |
Provisionally price contracts | (118,737) | (170,197) | (60,708) |
Convertible preferred securities | 3,294 | 3,294 | 3,294 |
Other assets and liabilities | 7,997 | 6,861 | 654 |
Total | (112,041) | (137,530) | 28,300 |
Level 1 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Cash equivalents | 11,578 | ||
Restricted cash | 1,033 | 471 | 987 |
Commodity derivatives, net | 2,817 | 29,872 | 48,412 |
Provisionally price contracts | (87,958) | (105,321) | (42,213) |
Convertible preferred securities | 0 | 0 | 0 |
Other assets and liabilities | 10,155 | 9,391 | 6,080 |
Total | (73,953) | (65,587) | 24,844 |
Level 2 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Cash equivalents | 0 | ||
Restricted cash | 0 | 0 | 0 |
Commodity derivatives, net | (8,445) | (7,831) | 24,083 |
Provisionally price contracts | (30,779) | (64,876) | (18,495) |
Convertible preferred securities | 0 | 0 | 0 |
Other assets and liabilities | (2,158) | (2,530) | (5,426) |
Total | (41,382) | (75,237) | 162 |
Level 3 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Cash equivalents | 0 | ||
Restricted cash | 0 | 0 | 0 |
Commodity derivatives, net | 0 | 0 | 0 |
Provisionally price contracts | 0 | 0 | 0 |
Convertible preferred securities | 3,294 | 3,294 | 3,294 |
Other assets and liabilities | 0 | 0 | 0 |
Total | $ 3,294 | $ 3,294 | $ 3,294 |
Fair Value Measurements (Deta57
Fair Value Measurements (Details 1) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | |
Convertible Securities | |||||
Reconciliation of Fair Value Measurements Using Level 3 | |||||
Asset (liability), Beginning Balance | $ (3,294) | $ (13,550) | |||
Gains (losses) included in earnings | $ 0 | 0 | $ 19 | 710 | |
Sales proceeds | 0 | (13,485) | |||
New agreements | 0 | 2,500 | |||
Asset (liability), Ending Balance | (3,294) | (775) | |||
Convertible Notes | Cost Basis, Plus Interest | |||||
Quantitative Information about Level 3 Fair Value Measurements | |||||
Convertible Notes | 3,294 | 3,294 | $ 3,294 | ||
Real Property | Third-Party Appraisal | |||||
Quantitative Information about Level 3 Fair Value Measurements | |||||
Real Property | $ 11,210 | ||||
Contingent Consideration | |||||
Reconciliation of Fair Value Measurements Using Level 3 | |||||
Asset (liability), Beginning Balance | 0 | (350) | |||
Gains (losses) included in earnings | 0 | 0 | 160 | 190 | |
Sales proceeds | $ 0 | $ 0 | |||
New agreements | 0 | 0 | |||
Asset (liability), Ending Balance | $ 0 | $ (160) |
Fair Value Measurements (Deta58
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | |||
Fair value of long-term debt, including current maturities | $ 423,316 | $ 450,940 | $ 472,714 |
Fair value in excess of carrying value | $ 2,612 | $ 3,116 | $ 16,498 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | $ 215,794 | $ 238,478 | $ 215,794 | $ 238,478 | $ 216,931 | |
Income earned from Company's equity method investees | 6,385 | 2,344 | 4,507 | (4,633) | ||
The Andersons Albion Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 40,829 | 34,133 | 40,829 | 34,133 | 38,972 | |
Income earned from Company's equity method investees | 2,135 | 1,650 | 1,858 | 1,328 | ||
The Andersons Clymers Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 19,903 | 30,088 | 19,903 | 30,088 | 19,739 | |
Income earned from Company's equity method investees | 569 | 1,889 | 776 | 810 | ||
The Andersons Marathon Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 14,045 | 31,158 | 14,045 | 31,158 | 22,069 | |
Income earned from Company's equity method investees | 779 | 1,712 | 316 | (97) | ||
Lansing Trade Group LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 89,235 | 90,884 | 89,235 | 90,884 | 89,050 | |
Income earned from Company's equity method investees | 896 | (5,333) | 185 | (8,101) | ||
Thompsons Limited | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | [1] | 49,252 | 47,948 | 49,252 | 47,948 | 46,184 |
Income earned from Company's equity method investees | [2] | 2,081 | 2,426 | 1,486 | 1,427 | |
Other | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 2,530 | 4,267 | 2,530 | 4,267 | $ 917 | |
Income earned from Company's equity method investees | $ (75) | $ 0 | $ (114) | $ 0 | ||
[1] | Thompsons Limited and related U.S. operating company held by joint ventures | |||||
[2] | Thompsons Limited and related U.S. operating company held by joint ventures |
Related Party Transactions (D60
Related Party Transactions (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 01, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||||||
Total distributions received from unconsolidated affiliates | $ 0.6 | $ 2.7 | ||||||
Percentage of shares acquired from subsidiary (percentage) | ||||||||
Revenues recognized for the sale of ethanol | $ 161.3 | $ 111.3 | $ 284.5 | 198.9 | ||||
Revenues recognized for the sale of corn | $ 125.5 | $ 105.6 | 243 | 224.1 | ||||
Related party, Gross asset | 0.6 | 5.2 | 0.6 | 5.2 | $ 4.1 | |||
Related party, Gross liability | $ 0.7 | $ 1 | $ 0.7 | $ 1 | $ 0.1 | |||
TAEI | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of company ownership interest (percentage) | 66.00% | |||||||
TAME | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of company ownership interest (percentage) | 33.00% | 33.00% | 50.00% | |||||
Noncontrolling interest is attributed of all gains and losses of parent (percentage) | 33.00% | 33.00% |
Related Party Transactions (D61
Related Party Transactions (Details 1) | Jun. 30, 2017 | Jan. 01, 2017 | |
Income Earned From Companys Equity Method Investments By Entity [Abstract] | |||
Reduction in ownership percentage (percentage) | 0.60% | ||
The Andersons Albion Ethanol LLC | |||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | |||
Percentage of company ownership interest (percentage) | 55.00% | ||
The Andersons Clymers Ethanol LLC | |||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | |||
Percentage of company ownership interest (percentage) | 39.00% | ||
The Andersons Marathon Ethanol LLC | |||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | |||
Percentage of company ownership interest (percentage) | 33.00% | 50.00% | |
Lansing Trade Group LLC | |||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | |||
Percentage of company ownership interest (percentage) | [1] | 33.00% | |
Thompsons Limited | |||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | |||
Percentage of company ownership interest (percentage) | [2] | 50.00% | |
Other | Minimum | |||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | |||
Percentage of company ownership interest (percentage) | 5.00% | ||
Other | Maximum | |||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | |||
Percentage of company ownership interest (percentage) | 50.00% | ||
[1] | This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 0.6% | ||
[2] | Thompsons Limited and related U.S. operating company held by joint ventures |
Related Party Transactions (D62
Related Party Transactions (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Revenues | $ 1,380,361 | $ 1,340,809 | $ 3,002,406 | $ 3,029,680 |
Gross profit | 58,812 | 52,204 | 97,728 | 77,782 |
Income from continuing operations | 16,328 | 556 | 11,518 | (17,568) |
Net income | 13,421 | (2,051) | 7,248 | (20,164) |
Net income attributable to companies | $ 13,714 | $ (1,410) | $ 7,972 | $ (19,122) |
Related Party Transactions (D63
Related Party Transactions (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Related party transactions entered into for the time periods presented | ||||||
Sales revenues | $ 241,896 | $ 176,865 | $ 439,964 | $ 371,702 | ||
Service fee revenues | [1] | 9,410 | 9,490 | 14,036 | 14,126 | |
Purchases of product | 167,904 | 116,556 | 302,411 | 218,509 | ||
Lease income | [2] | 1,422 | 1,994 | 2,709 | 3,861 | |
Labor and benefits reimbursement | [3] | 6,863 | 6,841 | 10,553 | 10,738 | |
Other expenses | [4] | 0 | 0 | 0 | 149 | |
Accounts receivable | [5] | 25,673 | 20,685 | 25,673 | 20,685 | $ 26,254 |
Accounts payable | [6] | $ 25,590 | $ 10,022 | $ 25,590 | $ 10,022 | $ 23,961 |
[1] | Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. | |||||
[2] | Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the various ethanol LLCs and IANR. | |||||
[3] | The Company provides all operational labor to the unconsolidated ethanol LLCs and charges them an amount equal to the Company’s costs of the related services. | |||||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjEyMWI5MzlhYmM0MjQ4OGNiZDlkMjRhNjE0YTFkYzc5fFRleHRTZWxlY3Rpb246RENBRkJGNkFGMTM2MEMzMjRDOTlDQzI2QUE4NzVCNjgM} | |||||
[5] | Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees. | |||||
[6] | Accounts payable represents amounts due to related parties for purchases of ethanol and other various items. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 993,662 | $ 1,064,244 | $ 1,845,678 | $ 1,952,123 | |
Income (loss) before income taxes | (19,065) | 23,109 | (24,635) | 201 | |
Identifiable assets | 1,911,425 | 2,107,415 | 1,911,425 | 2,107,415 | $ 2,232,849 |
Operating Segments | Grain | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 488,447 | 522,989 | 966,975 | 1,061,803 | |
Income (loss) before income taxes | 6,929 | (13,037) | 1,856 | (30,442) | |
Identifiable assets | 783,316 | 879,055 | 783,316 | 879,055 | 961,114 |
Operating Segments | Ethanol | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 187,831 | 142,520 | 341,984 | 257,213 | |
Income (loss) before income taxes | 4,660 | 6,187 | 6,376 | 3,507 | |
Identifiable assets | 170,730 | 192,470 | 170,730 | 192,470 | 171,115 |
Operating Segments | Plant Nutrient | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 264,736 | 320,036 | 411,323 | 487,027 | |
Income (loss) before income taxes | (25,825) | 23,535 | (19,154) | 25,239 | |
Identifiable assets | 351,871 | 448,225 | 351,871 | 448,225 | 484,455 |
Operating Segments | Rail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 38,149 | 40,342 | 78,539 | 79,951 | |
Income (loss) before income taxes | 5,860 | 6,569 | 11,938 | 15,944 | |
Identifiable assets | 448,417 | 388,456 | 448,417 | 388,456 | 398,446 |
Operating Segments | Retail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 14,499 | 38,357 | 46,857 | 66,129 | |
Income (loss) before income taxes | (6,718) | 1,010 | (13,564) | (1,066) | |
Identifiable assets | 11,830 | 43,878 | 11,830 | 43,878 | 31,257 |
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 486 | 643 | 1,014 | 2,720 | |
Segment Reconciling Items | Grain | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 141 | 174 | 207 | 1,625 | |
Segment Reconciling Items | Plant Nutrient | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 70 | 114 | 241 | 361 | |
Segment Reconciling Items | Rail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 275 | 355 | 566 | 734 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes | (3,907) | (2,173) | (12,077) | (13,073) | |
Identifiable assets | 145,261 | 155,331 | 145,261 | 155,331 | $ 186,462 |
Noncontrolling interests | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes | $ (64) | $ 1,018 | $ (10) | $ 92 |
Segment Information (Details Te
Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2017segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments (business segments) | 5 |
Number of consolidated segments | 1 |
Number of segments accounted for as equity method investments | 3 |
Customer Concentration Risk | Sales Revenue, Net | |
Segment Reporting Information [Line Items] | |
Concentration risk, percentage | 10.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Build-to-Suit Lease - USD ($) $ in Millions | 1 Months Ended | |||
Aug. 31, 2015 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Operating Leased Assets [Line Items] | ||||
Term of leasing contract | 15 years | |||
Other long term liabilities | ||||
Operating Leased Assets [Line Items] | ||||
Financing obligation | $ 23.9 | $ 14 | $ 13 | |
Other current liabilities | ||||
Operating Leased Assets [Line Items] | ||||
Financing obligation | $ 0.8 | $ 0.9 | $ 1.5 |
Supplemental Cash Flow Inform67
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 12,430 | $ 9,567 |
Taxes paid | 0 | 0 |
Noncash investing and financing activity | ||
Capital projects incurred but not yet paid | 3,695 | 9,653 |
Investment merger (decreasing equity method investments and non-controlling interest) | 8,360 | 0 |
Outstanding receivable for sale of assets | 4,356 | 0 |
Dividends declared not yet paid | $ 4,501 | $ 4,341 |
Sale of Assets (Details)
Sale of Assets (Details) $ in Thousands | Mar. 31, 2017USD ($)location | May 02, 2016USD ($)location | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Proceeds from sale of assets | $ 13,788 | $ 54,330 | ||
Farm Center [Member] | Florida | ||||
Business Acquisition [Line Items] | ||||
Number of locations sold | location | 4 | |||
Proceeds from sale of assets | $ 17,400 | |||
Gain on sale of assets | 4,700 | |||
Working capital adjustment receivable | $ 3,600 | |||
Grain and Agronomy | Iowa | ||||
Business Acquisition [Line Items] | ||||
Number of locations sold | location | 8 | |||
Proceeds from sale of assets | $ 54,300 |
Exit Costs and Assets Held fo69
Exit Costs and Assets Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Property, plant and equipment part of disposal group, held for sale | $ 10,028 | $ 10,028 | $ 0 | $ 0 |
Retail | Retail Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit charges | 3,500 | 11,300 | ||
Retail | Retail Segment | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Property, plant and equipment part of disposal group, held for sale | $ 10,000 | $ 10,000 |
Goodwill and Other Intangible70
Goodwill and Other Intangible Assets Goodwoll and Other Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||||
Reporting unit, percentage of fair value in excess of carrying amount | 8.00% | ||||
Impairment of definite-lived intangibles and other long-lived assets | $ 0 | ||||
Goodwill impairment | $ 42,000,000 | $ 0 | 42,000,000 | $ 0 | |
Goodwill (Note 17) | $ 23,105,000 | $ 63,934,000 | 23,105,000 | $ 63,934,000 | $ 63,934,000 |
Plant Nutrient | |||||
Goodwill [Line Items] | |||||
Long-term earnings growth rate | 2.00% | ||||
Weighted average cost of capital | 10.10% | ||||
Goodwill impairment | $ 42,000,000 | 42,000,000 | |||
Goodwill (Note 17) | $ 17,767,000 | $ 17,767,000 | $ 59,767,000 |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||||
Reporting unit, percentage of fair value in excess of carrying amount | 8.00% | ||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | ||||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 63,934,000 | ||||
Acquisitions | 1,171,000 | ||||
Impairments | $ (42,000,000) | $ 0 | (42,000,000) | $ 0 | |
Balance as of June 30, 2017 | 23,105,000 | $ 63,934,000 | 23,105,000 | $ 63,934,000 | |
Grain | |||||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 0 | ||||
Acquisitions | 1,171,000 | ||||
Impairments | 0 | ||||
Balance as of June 30, 2017 | 1,171,000 | 1,171,000 | |||
Plant Nutrient | |||||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 59,767,000 | ||||
Acquisitions | 0 | ||||
Impairments | (42,000,000) | (42,000,000) | |||
Balance as of June 30, 2017 | 17,767,000 | 17,767,000 | |||
Rail | |||||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 4,167,000 | ||||
Acquisitions | 0 | ||||
Impairments | 0 | ||||
Balance as of June 30, 2017 | $ 4,167,000 | $ 4,167,000 |