Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 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 | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Current assets: | ||||
Cash and cash equivalents | $ 24,478 | $ 62,630 | $ 78,158 | |
Restricted cash | 0 | 471 | 190 | |
Accounts receivable, net | 196,192 | 194,698 | 173,593 | |
Inventories | 475,602 | 682,747 | 427,754 | |
Commodity derivative assets – current | 45,202 | 45,447 | 59,837 | |
Other current assets | 53,958 | 72,133 | 43,761 | |
Assets held for sale (Note 16) | 8,383 | 0 | 0 | |
Total current assets | 803,815 | 1,058,126 | 783,293 | |
Other assets: | ||||
Commodity derivative assets – noncurrent | 245 | 100 | 1,346 | |
Goodwill (Note 17) | 23,105 | 63,934 | 63,934 | |
Other intangible assets, net | 113,371 | 106,100 | 110,155 | |
Other assets, net | 11,852 | 10,411 | 5,921 | |
Equity method investments | 215,031 | 216,931 | 225,114 | |
Investments and Other Noncurrent Assets | 363,604 | 397,476 | 406,470 | |
Rail Group assets leased to others, net | 377,393 | 327,195 | 334,401 | |
Property, plant and equipment, net | 419,348 | 450,052 | 460,247 | |
Total assets | 1,964,160 | 2,232,849 | 1,984,411 | |
Current liabilities: | ||||
Short-term debt | 19,000 | 29,000 | 0 | |
Trade and other payables | 381,359 | 581,826 | 356,931 | |
Customer prepayments and deferred revenue | 29,520 | 48,590 | 15,725 | |
Commodity derivative liabilities – current | 38,578 | 23,167 | 59,770 | |
Accrued expenses and other current liabilities | 67,064 | 69,648 | 68,465 | |
Current maturities of long-term debt | 53,972 | 47,545 | 51,520 | |
Total current liabilities | 589,493 | 799,776 | 552,411 | |
Other long-term liabilities | 34,407 | 27,833 | 30,525 | |
Commodity derivative liabilities – noncurrent | 902 | 339 | 1,954 | |
Employee benefit plan obligations | 36,356 | 35,026 | 45,260 | |
Long-term debt, less current maturities | 371,315 | 397,065 | 395,559 | |
Deferred income taxes | 181,876 | 182,113 | 178,535 | |
Total liabilities | 1,214,349 | 1,442,152 | 1,204,244 | |
Commitments and contingencies | ||||
Shareholders’ equity: | ||||
Common shares, without par value (63,000 shares authorized; 29,430 shares issued at 9/30/2017, 12/31/16 and 9/30/2016) | 96 | 96 | 96 | |
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 | 0 | |
Additional paid-in-capital | 223,814 | 222,910 | 221,326 | |
Treasury shares, at cost (1,079, 1,201 and 1,195 shares at 9/30/2017, 12/31/16 and 9/30/2016, respectively) | (40,905) | (45,383) | (45,130) | |
Accumulated other comprehensive loss | [1] | (9,682) | (12,468) | (17,305) |
Retained earnings | 568,438 | 609,206 | 603,556 | |
Total shareholders’ equity of The Andersons, Inc. | 741,761 | 774,361 | 762,543 | |
Noncontrolling interests | 8,050 | 16,336 | 17,624 | |
Total equity | 749,811 | 790,697 | 780,167 | |
Total liabilities and equity | $ 1,964,160 | $ 2,232,849 | $ 1,984,411 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 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) | $ 0 | $ 0 | $ 0 |
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) | 1,079,000 | 1,201,000 | 1,195,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Sales and merchandising revenues | $ 836,595 | $ 859,612 | $ 2,682,273 | $ 2,811,735 |
Cost of sales and merchandising revenues | 766,924 | 782,597 | 2,448,310 | 2,569,923 |
Gross profit | 69,671 | 77,015 | 233,963 | 241,812 |
Operating, administrative and general expenses | 68,456 | 78,767 | 220,331 | 234,053 |
Goodwill impairment | 0 | 0 | 42,000 | 0 |
Interest expense | 5,384 | 4,441 | 17,472 | 18,046 |
Other income: | ||||
Equity in earnings of affiliates, net | 3,586 | 8,422 | 8,093 | 3,789 |
Other income, net | 5,588 | 2,216 | 18,117 | 11,144 |
Income (loss) before income taxes | 5,005 | 4,445 | (19,630) | 4,646 |
Income tax provision | 2,389 | 1,104 | 7,505 | 1,486 |
Net income (loss) | 2,616 | 3,341 | (27,135) | 3,160 |
Net income attributable to the noncontrolling interests | 83 | 1,619 | 73 | 1,711 |
Net income (loss) attributable to The Andersons, Inc. | $ 2,533 | $ 1,722 | $ (27,208) | $ 1,449 |
Per common share: | ||||
Basic earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ 0.09 | $ 0.06 | $ (0.96) | $ 0.05 |
Diluted earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | 0.09 | 0.06 | (0.96) | 0.05 |
Dividends declared (dollars per share) | $ 0.16 | $ 0.155 | $ 0.48 | $ 0.465 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 2,616 | $ 3,341 | $ (27,135) | $ 3,160 | |
Other comprehensive income (loss), net of tax: | |||||
Change in fair value of convertible preferred securities (net of income tax of $134, $0, $134 and $74) | 211 | 0 | 211 | (126) | |
Change in unrecognized actuarial loss and prior service cost (net of income tax (benefit) of $(64), $53, $(699) and $716 - Note 8) | (101) | 87 | (1,099) | 1,381 | |
Foreign currency translation adjustments (net of income tax of $0, $0, $0 and $0) | 2,201 | (298) | 3,674 | 2,259 | |
Cash flow hedge activity (net of income tax of $0, $0, $0, and $72) | 0 | 0 | 0 | 120 | |
Other comprehensive income (loss) | [1] | 2,311 | (211) | 2,786 | 3,634 |
Comprehensive income (loss) | 4,927 | 3,130 | (24,349) | 6,794 | |
Comprehensive income (loss) attributable to the noncontrolling interests | 83 | 1,619 | 73 | 1,711 | |
Comprehensive income (loss) attributable to The Andersons, Inc. | $ 4,844 | $ 1,511 | $ (24,422) | $ 5,083 | |
[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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in estimated fair value of investment in debt securities, tax | $ 134 | $ 0 | $ 134 | $ (74) |
Unrecognized actuarial loss and prior service costs, tax | (64) | 53 | (699) | 716 |
Foreign currency translation adjustments, tax | 0 | 0 | 0 | 0 |
Income tax on cash flow hedge activity | $ 0 | $ 0 | $ 0 | $ 72 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net income (loss) | $ (27,135) | $ 3,160 |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation and amortization | 64,546 | 62,244 |
Bad debt expense | 1,076 | 789 |
Equity in (earnings) losses of affiliates, net of dividends | (2,168) | 12,804 |
Gains on sale of Rail Group assets and related leases | (7,642) | (6,366) |
Gains on sale of assets | (11,443) | (826) |
Stock-based compensation expense | 4,550 | 5,542 |
Goodwill impairment | 42,000 | 0 |
Other | (610) | (7) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (334) | (5,425) |
Inventories | 200,667 | 283,158 |
Commodity derivatives | 16,073 | 12,592 |
Other assets | 10,422 | 36,536 |
Payables and other accrued expenses | (229,268) | (362,855) |
Net cash provided by (used in) operating activities | 60,734 | 41,346 |
Investing Activities | ||
Acquisition of business, net of cash acquired | (3,507) | 0 |
Purchases of Rail Group assets | (77,513) | (57,979) |
Proceeds from sale of Rail Group assets | 18,368 | 44,061 |
Purchases of property, plant and equipment and capitalized software | (26,705) | (56,138) |
Proceeds from sale of assets | 26,601 | 69,673 |
Proceeds from returns of investments in affiliates | 1,339 | 7,443 |
Purchase of investments | (4,929) | (2,523) |
Other | 1,470 | 260 |
Net cash provided by (used in) investing activities | (64,876) | 4,797 |
Financing Activities | ||
Net change in short-term borrowings | (11,059) | (15,000) |
Proceeds from issuance of long-term debt | 35,175 | 78,199 |
Proceeds from long-term financing arrangement | 12,195 | 14,027 |
Payments of long-term debt | (54,326) | (91,393) |
Distributions to noncontrolling interest owner | 0 | (3,400) |
Proceeds from sale of treasury shares to employees and directors | 450 | 1,159 |
Payments of debt issuance costs | (2,024) | (309) |
Dividends paid | (13,485) | (13,020) |
Other | (936) | (1,998) |
Net cash provided by (used in) financing activities | (34,010) | (31,735) |
Increase (decrease) in cash and cash equivalents | (38,152) | 14,408 |
Cash and cash equivalents at beginning of period | 62,630 | 63,750 |
Cash and cash equivalents at end of period | $ 24,478 | $ 78,158 |
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) | 3,160 | 1,449 | 1,711 | |||||
Other comprehensive income (loss) | 3,634 | [1] | 3,634 | |||||
Cash distribution to noncontrolling interest | (3,400) | (3,400) | ||||||
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 $471 (202 shares) | 6,230 | (1,542) | 7,772 | |||||
Dividends declared ($0.480 and $0.465 per common share) | (13,024) | (13,024) | ||||||
Restricted share award dividend equivalents | 20 | (20) | ||||||
Ending Balance at Sep. 30, 2016 | 780,167 | 96 | 221,326 | (45,130) | (17,305) | 603,556 | 17,624 | |
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) | (27,135) | (27,208) | 73 | |||||
Other comprehensive income (loss) | 2,786 | [1] | 2,786 | |||||
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 $471 (202 shares) | 5,325 | 899 | 4,426 | |||||
Dividends declared ($0.480 and $0.465 per common share) | (13,503) | (13,503) | ||||||
Restricted share award dividend equivalents | 0 | 5 | 52 | (57) | ||||
Ending Balance at Sep. 30, 2017 | $ 749,811 | $ 96 | $ 223,814 | $ (40,905) | $ (9,682) | $ 568,438 | $ 8,050 | |
[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 | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Dividends declared, per common share | $ 0.48 | $ 0.465 |
Additional Paid-in Capital | ||
Income tax on stock option exercise and other shares issued to employees and directors | $ (323) | $ 471 |
Stock option exercises and other shares issued to employees and directors, shares | 122 | 202 |
Retained Earnings | ||
Dividends declared, per common share | $ 0.48 | $ 0.465 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 9 Months Ended |
Sep. 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 September 30, 2016 has been included as the Company operates in several seasonal industries. Certain prior year amounts within the operating and investing activities sections of the statements of cash flows have been reclassified to conform with current year presentation. 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 (Topic 606). 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 standard 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. The new revenue standard is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company plans to adopt the standard on January 1, 2018, using the modified retrospective method. The adoption of this new guidance will require expanded disclosures in the Company’s consolidated financial statements including separate quantitative disclosure of revenues within the scope of Topic 606 and revenues excluded from the scope of Topic 606. 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. While we are still continuing to evaluate the potential future impact of these standards on our financial statements, we believe the following items will be impacted upon adoption: - Many of the Company's Grain and Ethanol sales contracts are considered derivatives under ASC Topic 815, Derivatives and Hedging , and therefore are outside the scope of Topic 606; - Certain fee-based arrangements within our Grain and Ethanol segments will be classified as reductions to our cost of sales rather than revenue. However, we do not expect a material change to the timing of when these fees are recognized in our financial statements. In addition, we are still evaluating the following areas to determine the potential changes, if any, upon adoption: - 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. 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 certain off balance-sheet rail assets 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. We are currently evaluating the impact these changes will have on the consolidated financial statements. Other applicable standards In August 2017, the FASB issued Accounting Standards Update No. 2017-12 Targeted Improvements to Accounting for Hedging Activities. This standard simplifies the recognition and presentation of changes in the fair value of hedging instruments. The ASU is effective for annual periods beginning December 15, 2018. The Company does not expect the impact from adoption of this standard to be material to its Consolidated Financial Statements and disclosures. 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 does not expect the impact from adoption of this standard to be material to 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 second quarter of 2017. 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 | 9 Months Ended |
Sep. 30, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major classes of inventories are as follows: (in thousands) September 30, December 31, September 30, Grain $ 342,837 $ 495,139 $ 262,165 Ethanol and co-products 12,502 10,887 7,734 Plant nutrients and cob products 114,131 150,259 126,922 Retail merchandise 718 20,678 24,985 Railcar repair parts 5,414 5,784 5,948 $ 475,602 $ 682,747 $ 427,754 Inventories on the Condensed Consolidated Balance Sheets at September 30, 2017 , December 31, 2016 and September 30, 2016 do not include 1.0 million , 0.9 million and 1.0 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 | 9 Months Ended |
Sep. 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) September 30, December 31, September 30, Land $ 23,342 $ 30,672 $ 28,473 Land improvements and leasehold improvements 71,559 79,631 82,908 Buildings and storage facilities 298,951 322,856 319,950 Machinery and equipment 384,422 392,418 393,178 Construction in progress 7,703 12,784 21,284 785,977 838,361 845,793 Less: accumulated depreciation 366,629 388,309 385,546 $ 419,348 $ 450,052 $ 460,247 Depreciation expense on property, plant and equipment was $36.0 million and $35.7 million for the nine months ended September 30, 2017 and 2016 , respectively. Additionally, depreciation expense on property, plant and equipment was $11.9 million and $12.0 million for the three months ended September 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) September 30, December 31, September 30, Rail Group assets leased to others $ 484,214 $ 431,571 $ 438,211 Less: accumulated depreciation 106,821 104,376 103,810 $ 377,393 $ 327,195 $ 334,401 Depreciation expense on Rail Group assets leased to others amounted to $14.9 million and $14.0 million for the nine months ended September 30, 2017 and 2016 , respectively. Additionally, depreciation expense on Rail Group assets leased to others amounted to $5.2 million and $4.7 million for the three months ended September 30, 2017 and 2016 , respectively. Sale of Assets During the third quarter of 2017 the Company sold two of its retail properties for $7.6 million and recorded a $5.7 million gain in Other income, net. 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 | 9 Months Ended |
Sep. 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 September 30, 2017 , the Company had a total of $ 718.5 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 September 30, 2017 . The Company’s short-term and long-term debt at September 30, 2017 , December 31, 2016 and September 30, 2016 consisted of the following: (in thousands) September 30, December 31, September 30, Short-term Debt – Non-Recourse $ — $ — $ — Short-term Debt – Recourse 19,000 29,000 — Total Short-term Debt $ 19,000 $ 29,000 $ — Current Maturities of Long-term Debt – Non-Recourse $ — $ — $ — Current Maturities of Long-term Debt – Recourse 53,972 47,545 51,520 Total Current Maturities of Long-term Debt $ 53,972 $ 47,545 $ 51,520 Long-term Debt, Less: Current Maturities – Non-Recourse $ — $ — $ — Long-term Debt, Less: Current Maturities – Recourse 371,315 397,065 395,559 Total Long-term Debt, Less: Current Maturities $ 371,315 $ 397,065 $ 395,559 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 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 September 30, 2017 , December 31, 2016 and September 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: September 30, 2017 December 31, 2016 September 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) $ 27,737 $ — $ 28,273 $ — $ 13,358 $ — Fair value of derivatives (999 ) — 1,599 — 16,258 — Balance at end of period $ 26,738 $ — $ 29,872 $ — $ 29,616 $ — The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: September 30, 2017 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 33,804 $ 288 $ 676 $ 74 $ 34,842 Commodity derivative liabilities (16,339 ) (43 ) (39,254 ) (976 ) (56,612 ) Cash collateral 27,737 — — — 27,737 Balance sheet line item totals $ 45,202 $ 245 $ (38,578 ) $ (902 ) $ 5,967 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 September 30, 2016 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 60,372 $ 1,356 $ 3,318 $ 58 $ 65,104 Commodity derivative liabilities (13,893 ) (10 ) (63,088 ) (2,012 ) (79,003 ) Cash collateral 13,358 — — — 13,358 Balance sheet line item totals $ 59,837 $ 1,346 $ (59,770 ) $ (1,954 ) $ (541 ) 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 September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ (690 ) $ (48,620 ) $ (15,538 ) $ (22,679 ) The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at September 30, 2017 , December 31, 2016 and September 30, 2016 : September 30, 2017 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 222,287 — — — Soybeans 44,463 — — — Wheat 8,598 — — — Oats 36,451 — — — Ethanol — 201,521 — Corn oil — — 5,782 — Other 51 — 110 Subtotal 311,850 201,521 5,782 110 Exchange traded: Corn 113,990 — — — Soybeans 45,220 — — — Wheat 61,795 — — — Oats 895 — — — Ethanol — 22,890 — — Other — 840 — — Subtotal 221,900 23,730 — — Total 533,750 225,251 5,782 110 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 September 30, 2016 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 226,492 — — — Soybeans 60,614 — — — Wheat 7,933 — — — Oats 28,939 — — — Ethanol — 191,906 — — Corn oil — — 7,153 — Other 129 — — 251 Subtotal 324,107 191,906 7,153 251 Exchange traded: Corn 105,395 — — — Soybeans 35,245 — — — Wheat 39,715 — — — Oats 2,800 — — — Ethanol — 74,046 — — Subtotal 183,155 74,046 — — Total 507,262 265,952 7,153 251 At September 30, 2017 , December 31, 2016 and September 30, 2016 , the Company had recorded the following amounts for the fair value of the Company's other derivatives not designated as hedging instruments: September 30, 2017 December 31, 2016 September 30, 2016 (in thousands) Interest rate contracts included in Other long-term liabilities $ (1,929 ) $ (2,530 ) $ (4,774 ) Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) 1,605 (112 ) 1,130 The gains and losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for derivatives not designated as hedging instruments are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Interest rate derivative gains (losses) included in Interest income (expense) $ 229 $ 652 $ 601 $ (1,642 ) Foreign currency derivative gains (losses) included in Other income, net 950 (261 ) 1,717 (1,130 ) |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 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 nine months ended September 30, 2017 and 2016 : Pension Benefits (in thousands) Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Interest cost 38 49 116 145 Recognized net actuarial loss 63 36 189 109 Benefit cost $ 101 $ 85 $ 305 $ 254 Postretirement Benefits (in thousands) Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Service cost $ 81 $ 190 $ 310 $ 570 Interest cost 202 387 784 1,162 Amortization of prior service cost (228 ) (88 ) (228 ) (266 ) Recognized net actuarial loss — 192 — 576 Benefit cost $ 55 $ 681 $ 866 $ 2,042 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 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, impact of foreign equity earnings and to benefits or costs related to various permanent book versus tax differences and tax credits. For the three months ended September 30, 2017 , the Company recorded income tax expense of $2.4 million at an effective tax rate of 47.7% , which varied from the U.S. Federal tax rate of 35% primarily due to a 6.7% increase in the rate related to the reversal of previously recorded railroad track maintenance tax credit benefits and tax charges related to non-deductible expenses. For the three months ended September 30, 2016 , the Company recorded an income tax expense of $1.1 million at an effective tax rate of 24.8% . For the nine months ended September 30, 2017 , the Company recorded income tax expense of $7.5 million at an effective tax rate of (38.2)% , which varied from the U.S. Federal tax rate of 35% primarily due to the recording of the $42.0 million goodwill impairment charge which did not provide a corresponding tax benefit. For the nine months ended September 30, 2016 , the Company recorded income tax expense of $1.5 million at an effective tax rate of 32.0% . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 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 nine months ended September 30, 2017 and 2016 : Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended September 30, 2017 Nine months ended September 30, 2017 (in thousands) Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning Balance $ (9,529 ) $ — $ (2,464 ) $ (11,993 ) $ (11,002 ) $ — $ (1,466 ) $ (12,468 ) Other comprehensive income (loss) before reclassifications 2,201 211 41 $ 2,453 3,674 211 (957 ) 2,928 Amounts reclassified from accumulated other comprehensive loss — — (142 ) $ (142 ) — — (142 ) (142 ) Net current-period other comprehensive income (loss) 2,201 211 (101 ) 2,311 3,674 211 (1,099 ) 2,786 Ending balance $ (7,328 ) $ 211 $ (2,565 ) $ (9,682 ) $ (7,328 ) $ 211 $ (2,565 ) $ (9,682 ) Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended September 30, 2016 Nine months ended September 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 $ 9 $ (9,484 ) $ (7,619 ) $ (17,094 ) $ (111 ) $ (12,041 ) $ 126 $ (8,913 ) $ (20,939 ) Other comprehensive income (loss) before reclassifications — (298 ) 143 (155 ) 120 2,259 — 1,547 3,926 Amounts reclassified from accumulated other comprehensive loss — — (56 ) (56 ) — — (126 ) (166 ) (292 ) Net current-period other comprehensive income (loss) — (298 ) 87 (211 ) 120 2,259 (126 ) 1,381 3,634 Ending balance $ 9 $ (9,782 ) $ (7,532 ) $ (17,305 ) $ 9 $ (9,782 ) $ — $ (7,532 ) $ (17,305 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits The following table shows the reclassification adjustments from accumulated other comprehensive loss to net income for the three and nine months ended September 30, 2017 and 2016: Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended September 30, 2017 Nine months ended September 30, 2017 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 (227 ) (b) (227 ) (b) (227 ) Total before tax (227 ) Total before tax 85 Income tax provision 85 Income tax provision $ (142 ) Net of tax $ (142 ) Net of tax Total reclassifications for the period $ (142 ) Net of tax (142 ) Net of tax Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended September 30, 2016 Nine months ended September 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) $ (266 ) (b) (89 ) Total before tax (266 ) Total before tax 33 Income tax provision 100 Income tax provision $ (56 ) Net of tax $ (166 ) 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 (292 ) 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 | 9 Months Ended |
Sep. 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 September 30, Nine months ended September 30, 2017 2016 2017 2016 Net income (loss) attributable to The Andersons, Inc. $ 2,533 $ 1,722 $ (27,208 ) $ 1,449 Less: Distributed and undistributed earnings allocated to nonvested restricted stock — 2 — 7 Earnings (losses) available to common shareholders $ 2,533 $ 1,720 $ (27,208 ) $ 1,442 Earnings per share – basic: Weighted average shares outstanding – basic 28,350 28,222 28,327 28,184 Earnings (losses) per common share – basic $ 0.09 $ 0.06 $ (0.96 ) $ 0.05 Earnings per share – diluted: Weighted average shares outstanding – basic 28,350 28,222 28,327 28,184 Effect of dilutive awards 134 140 — 196 Weighted average shares outstanding – diluted 28,484 28,362 28,327 28,380 Earnings (losses) per common share – diluted $ 0.09 $ 0.06 $ (0.96 ) $ 0.05 There were 43 thousand antidilutive stock-based awards outstanding for the three months ended September 30, 2017. All outstanding share awards were antidilutive for the nine months ended September 30, 2017 as the Company experienced a net loss. There were no antidilutive stock-based awards outstanding for the three and nine months ended September 30, 2016 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 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 September 30, 2017 , December 31, 2016 and September 30, 2016 : (in thousands) September 30, 2017 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 26,738 $ (20,771 ) $ — $ 5,967 Provisionally priced contracts (b) (85,546 ) (33,944 ) — (119,490 ) Convertible preferred securities (c) — — 6,638 6,638 Other assets and liabilities (d) 10,996 (1,929 ) — 9,067 Total $ (47,812 ) $ (56,644 ) $ 6,638 $ (97,818 ) (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) September 30, 2016 Assets (liabilities) Level 1 Level 2 Level 3 Total Restricted cash $ 190 $ — $ — $ 190 Commodity derivatives, net (a) 34,620 (35,161 ) — (541 ) Provisionally priced contracts (b) (79,022 ) (20,500 ) (99,522 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 11,015 (4,774 ) — 6,241 Total $ (33,197 ) $ (60,435 ) $ 3,294 $ (90,338 ) (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 future 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 several early-stage enterprises in the form of convertible debt and preferred equity securities. A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: Contingent Consideration Convertible Preferred 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 investments — — — 2,500 Asset (liability) at June 30, $ — $ — $ 3,294 $ 3,294 Unrealized gains (losses) included in other comprehensive income — — 344 — New investments — — 3,000 — Asset (liability) at September 30, $ — $ — $ 6,638 $ 3,294 The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of September 30, 2017 , December 31, 2016 and September 30, 2016 : Quantitative Information about Level 3 Fair Value Measurements (in thousands) Fair Value as of September 30, 2017 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 6,638 Implied based on market prices N/A N/A (in thousands) Fair Value as of December 31, 2016 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 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 September 30, 2016 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 3,294 Cost Basis, Plus Interest N/A N/A (a) Due to early stages of business and timing of investments, cost basis, plus interest was deemed to approximate fair value in prior periods. As the underlying enterprises have evolved additional market data is available to consider in order to estimate fair value. 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) September 30, December 31, September 30, Fair value of long-term debt, including current maturities $ 431,542 $ 450,940 $ 458,268 Fair value in excess of carrying value (a) 2,389 3,116 7,714 (a) Carrying value used for this purpose excludes unamortized prepaid debt issuance costs 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 | 9 Months Ended |
Sep. 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) September 30, 2017 December 31, 2016 September 30, 2016 The Andersons Albion Ethanol LLC $ 42,302 $ 38,972 $ 36,661 The Andersons Clymers Ethanol LLC 17,837 19,739 21,340 The Andersons Marathon Ethanol LLC 12,390 22,069 23,812 Lansing Trade Group, LLC 89,541 89,050 91,573 Thompsons Limited (a) 50,399 46,184 47,494 Other 2,562 917 4,234 Total $ 215,031 $ 216,931 $ 225,114 (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 September 30, Nine months ended September 30, (in thousands) % Ownership at September 30, 2017 2017 2016 2017 2016 The Andersons Albion Ethanol LLC 55% $ 1,473 $ 2,528 $ 3,331 $ 3,857 The Andersons Clymers Ethanol LLC 39% 1,822 2,706 2,597 3,516 The Andersons Marathon Ethanol LLC 33% 985 2,655 1,301 2,557 Lansing Trade Group, LLC 33% (a) 305 689 491 (7,412 ) Thompsons Limited (b) 50% (940 ) (156 ) 546 1,271 Other 5% - 50% (59 ) — (173 ) — Total $ 3,586 $ 8,422 $ 8,093 $ 3,789 (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 $7.1 million and $24.1 million for the nine months ended September 30, 2017 and September 30, 2016 , respectively. In the third 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 nine months ended September 30, 2017 and 2016: (in thousands) Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Revenues $ 1,601,778 $ 1,646,697 $ 4,603,808 $ 4,676,583 Gross profit 58,826 50,141 155,568 127,963 Income from continuing operations 9,501 18,965 15,507 1,428 Net income (loss) 7,918 17,217 14,878 (2,924 ) Net income (loss) attributable to companies 9,545 17,752 15,781 (1,347 ) 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 September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Sales revenues $ 225,367 $ 177,724 $ 665,331 $ 549,426 Service fee revenues (a) 14,397 3,800 28,433 13,290 Purchases of product 165,084 128,081 467,495 346,590 Lease income (b) 1,850 1,300 4,559 4,662 Labor and benefits reimbursement (c) 3,208 2,862 10,071 9,702 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) September 30, 2017 December 31, 2016 September 30, 2016 Accounts receivable (e) $ 18,694 $ 26,254 $ 18,028 Accounts payable (f) 27,413 23,961 15,352 (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 September 30, 2017 and 2016 , revenues recognized for the sale of ethanol and other co-products that the Company purchased from the unconsolidated ethanol LLCs were $160.8 million and $109.3 million , respectively. Additionally, for the nine months ended September 30, 2017 and 2016 , revenues recognized for the sale of ethanol and other co-products that the Company purchased from the unconsolidated ethanol LLCs were $445.4 million and $220.6 million , respectively. For the three months ended September 30, 2017 and 2016 , revenues recognized for the sale of corn to the unconsolidated ethanol LLCs were $119.1 million and $90.4 million , respectively. For the nine months ended September 30, 2017 and 2016 , revenues recognized for the sale of corn to the unconsolidated ethanol LLCs were $362.2 million and $314.5 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 September 30, 2017 , December 31, 2016 and September 30, 2016 was $ 1.9 million , $ 4.1 million and $ 5.0 million , respectively. The fair value of derivative contract liabilities with related parties as of September 30, 2017 , December 31, 2016 and September 30, 2016 was $ 0.1 million , $ 0.1 million and $ 0.2 million , respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 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 September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Revenues from external customers Grain $ 497,613 $ 550,189 $ 1,464,588 $ 1,611,992 Ethanol 191,531 139,413 533,515 396,626 Plant Nutrient 103,620 101,770 514,943 588,797 Rail 43,093 38,201 121,632 118,152 Retail 738 30,039 47,595 96,168 Total $ 836,595 $ 859,612 $ 2,682,273 $ 2,811,735 Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Inter-segment sales Grain $ 72 $ 7 $ 279 $ 1,632 Plant Nutrient — 61 241 422 Rail 327 328 893 1,062 Total $ 399 $ 396 $ 1,413 $ 3,116 Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Income (loss) before income taxes Grain $ 2,641 $ 1,879 $ 4,497 $ (28,563 ) Ethanol 6,098 9,541 12,474 13,048 Plant Nutrient (7,920 ) (7,231 ) (27,074 ) 18,008 Rail 6,127 6,754 18,065 22,698 Retail 4,424 (1,578 ) (9,140 ) (2,644 ) Other (6,448 ) (6,539 ) (18,525 ) (19,612 ) Noncontrolling interests 83 1,619 73 1,711 Total $ 5,005 $ 4,445 $ (19,630 ) $ 4,646 (in thousands) September 30, 2017 December 31, 2016 September 30, 2016 Identifiable assets Grain $ 799,655 $ 961,114 $ 721,412 Ethanol 173,545 171,115 174,822 Plant Nutrient 389,396 484,455 462,328 Rail 446,884 398,446 383,631 Retail 9,138 31,257 42,880 Other 145,542 186,462 199,338 Total $ 1,964,160 $ 2,232,849 $ 1,984,411 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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. In the third quarter of 2017, the Company’s Plant Nutrient business recorded a $2.2 million reserve for settlement of a 2015 legal claim. The case regarded allegations that the Plant Nutrient business had improperly acquired another company’s confidential and proprietary intellectual property in connection with hiring a former employee of the plaintiff. Information obtained through the course of discovery, and completed during the third quarter, and anticipated legal costs, in conjunction with the preparation for the planned mediation scheduled for October, 2017, led management to conclude that a loss was probable and reasonably estimable. In October, settlement was finalized at the reserve amount. Prior to the settlement, substantially all the Company’s legal expenses were paid by a liability insurance carrier. The estimated range of loss for all other 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 $24.7 million , $14.0 million , and $13.7 million at September 30, 2017 , December 31, 2016 , and September 30, 2016 , respectively. The Company has recorded a build-to-suit financing obligation in other current liabilities of $1.4 million , $0.9 million , and $1.3 million at September 30, 2017 , December 31, 2016 , and September 30, 2016 , respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 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 nine months ended September 30, 2017 and 2016 are as follows: Nine months ended September 30, (in thousands) 2017 2016 Supplemental disclosure of cash flow information Interest paid $ 20,356 $ 18,008 Noncash investing and financing activity Capital projects incurred but not yet paid 6,319 13,104 Investment merger (decreasing equity method investments and non-controlling interest) 8,360 — Dividends declared not yet paid 4,501 4,342 |
Sale of Assets
Sale of Assets | 9 Months Ended |
Sep. 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) September 30, December 31, September 30, Land $ 23,342 $ 30,672 $ 28,473 Land improvements and leasehold improvements 71,559 79,631 82,908 Buildings and storage facilities 298,951 322,856 319,950 Machinery and equipment 384,422 392,418 393,178 Construction in progress 7,703 12,784 21,284 785,977 838,361 845,793 Less: accumulated depreciation 366,629 388,309 385,546 $ 419,348 $ 450,052 $ 460,247 Depreciation expense on property, plant and equipment was $36.0 million and $35.7 million for the nine months ended September 30, 2017 and 2016 , respectively. Additionally, depreciation expense on property, plant and equipment was $11.9 million and $12.0 million for the three months ended September 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) September 30, December 31, September 30, Rail Group assets leased to others $ 484,214 $ 431,571 $ 438,211 Less: accumulated depreciation 106,821 104,376 103,810 $ 377,393 $ 327,195 $ 334,401 Depreciation expense on Rail Group assets leased to others amounted to $14.9 million and $14.0 million for the nine months ended September 30, 2017 and 2016 , respectively. Additionally, depreciation expense on Rail Group assets leased to others amounted to $5.2 million and $4.7 million for the three months ended September 30, 2017 and 2016 , respectively. Sale of Assets During the third quarter of 2017 the Company sold two of its retail properties for $7.6 million and recorded a $5.7 million gain in Other income, net. 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 | 9 Months Ended |
Sep. 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 inventory and fixtures liquidation efforts are complete. The Company incurred minimal additional exit charges during the third quarter of 2017 and a total of $11.5 million through the first three quarters of 2017, consisting primarily of employee severance and related benefits. As a result of the closure, the Company also classified $8.4 million of Property, plant and equipment, net as Assets held for sale on the Condensed Consolidated Balance Sheet at September 30, 2017. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 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 September 30, 2017 $ 1,171 $ 17,767 $ 4,167 $ 23,105 The Company recorded a goodwill impairment charge of $42.0 million associated with the Wholesale reporting unit in the second quarter of 2017. 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 greater risk of future impairment to the remaining goodwill balance of $17.1 million . The Company will be completing its annual goodwill assessment as of October 1. Any negative change in assumptions, including decreased current performance and/or forecasted performance, as well as increased interest rates and/or cost of capital will negatively impact the fair value of the reporting unit. Increases in the book value of the reporting unit, such as additional capital investments or working capital increases will also negatively impact the goodwill assessment. Finally relative performance shortfalls, when compared to peer results, could also negatively impact the goodwill assessment. The magnitude of each of these changes may result in additional goodwill impairment in the fourth quarter of 2017. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory, Net [Abstract] | |
Classes of inventories | Major classes of inventories are as follows: (in thousands) September 30, December 31, September 30, Grain $ 342,837 $ 495,139 $ 262,165 Ethanol and co-products 12,502 10,887 7,734 Plant nutrients and cob products 114,131 150,259 126,922 Retail merchandise 718 20,678 24,985 Railcar repair parts 5,414 5,784 5,948 $ 475,602 $ 682,747 $ 427,754 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 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) September 30, December 31, September 30, Land $ 23,342 $ 30,672 $ 28,473 Land improvements and leasehold improvements 71,559 79,631 82,908 Buildings and storage facilities 298,951 322,856 319,950 Machinery and equipment 384,422 392,418 393,178 Construction in progress 7,703 12,784 21,284 785,977 838,361 845,793 Less: accumulated depreciation 366,629 388,309 385,546 $ 419,348 $ 450,052 $ 460,247 |
Components of railcar assets leased to others | The components of Rail Group assets leased to others are as follows: (in thousands) September 30, December 31, September 30, Rail Group assets leased to others $ 484,214 $ 431,571 $ 438,211 Less: accumulated depreciation 106,821 104,376 103,810 $ 377,393 $ 327,195 $ 334,401 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | The Company’s short-term and long-term debt at September 30, 2017 , December 31, 2016 and September 30, 2016 consisted of the following: (in thousands) September 30, December 31, September 30, Short-term Debt – Non-Recourse $ — $ — $ — Short-term Debt – Recourse 19,000 29,000 — Total Short-term Debt $ 19,000 $ 29,000 $ — Current Maturities of Long-term Debt – Non-Recourse $ — $ — $ — Current Maturities of Long-term Debt – Recourse 53,972 47,545 51,520 Total Current Maturities of Long-term Debt $ 53,972 $ 47,545 $ 51,520 Long-term Debt, Less: Current Maturities – Non-Recourse $ — $ — $ — Long-term Debt, Less: Current Maturities – Recourse 371,315 397,065 395,559 Total Long-term Debt, Less: Current Maturities $ 371,315 $ 397,065 $ 395,559 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 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: September 30, 2017 December 31, 2016 September 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) $ 27,737 $ — $ 28,273 $ — $ 13,358 $ — Fair value of derivatives (999 ) — 1,599 — 16,258 — Balance at end of period $ 26,738 $ — $ 29,872 $ — $ 29,616 $ — |
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: September 30, 2017 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 33,804 $ 288 $ 676 $ 74 $ 34,842 Commodity derivative liabilities (16,339 ) (43 ) (39,254 ) (976 ) (56,612 ) Cash collateral 27,737 — — — 27,737 Balance sheet line item totals $ 45,202 $ 245 $ (38,578 ) $ (902 ) $ 5,967 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 September 30, 2016 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 60,372 $ 1,356 $ 3,318 $ 58 $ 65,104 Commodity derivative liabilities (13,893 ) (10 ) (63,088 ) (2,012 ) (79,003 ) Cash collateral 13,358 — — — 13,358 Balance sheet line item totals $ 59,837 $ 1,346 $ (59,770 ) $ (1,954 ) $ (541 ) |
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 September 30, 2017 , December 31, 2016 and September 30, 2016 : September 30, 2017 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 222,287 — — — Soybeans 44,463 — — — Wheat 8,598 — — — Oats 36,451 — — — Ethanol — 201,521 — Corn oil — — 5,782 — Other 51 — 110 Subtotal 311,850 201,521 5,782 110 Exchange traded: Corn 113,990 — — — Soybeans 45,220 — — — Wheat 61,795 — — — Oats 895 — — — Ethanol — 22,890 — — Other — 840 — — Subtotal 221,900 23,730 — — Total 533,750 225,251 5,782 110 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 September 30, 2016 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 226,492 — — — Soybeans 60,614 — — — Wheat 7,933 — — — Oats 28,939 — — — Ethanol — 191,906 — — Corn oil — — 7,153 — Other 129 — — 251 Subtotal 324,107 191,906 7,153 251 Exchange traded: Corn 105,395 — — — Soybeans 35,245 — — — Wheat 39,715 — — — Oats 2,800 — — — Ethanol — 74,046 — — Subtotal 183,155 74,046 — — Total 507,262 265,952 7,153 251 |
Company's Condensed Consolidated Statement of Income gains and location of line items | Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Interest rate derivative gains (losses) included in Interest income (expense) $ 229 $ 652 $ 601 $ (1,642 ) Foreign currency derivative gains (losses) included in Other income, net 950 (261 ) 1,717 (1,130 ) 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 September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues $ (690 ) $ (48,620 ) $ (15,538 ) $ (22,679 ) |
Schedule of Fair Value of Interest Rate Derivative Liabilities | t September 30, 2017 , December 31, 2016 and September 30, 2016 , the Company had recorded the following amounts for the fair value of the Company's other derivatives not designated as hedging instruments: September 30, 2017 December 31, 2016 September 30, 2016 (in thousands) Interest rate contracts included in Other long-term liabilities $ (1,929 ) $ (2,530 ) $ (4,774 ) Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) 1,605 (112 ) 1,130 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2017 and 2016 : Pension Benefits (in thousands) Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Interest cost 38 49 116 145 Recognized net actuarial loss 63 36 189 109 Benefit cost $ 101 $ 85 $ 305 $ 254 |
Postretirement Benefits | |
Employee Benefit Plans [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Postretirement Benefits (in thousands) Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Service cost $ 81 $ 190 $ 310 $ 570 Interest cost 202 387 784 1,162 Amortization of prior service cost (228 ) (88 ) (228 ) (266 ) Recognized net actuarial loss — 192 — 576 Benefit cost $ 55 $ 681 $ 866 $ 2,042 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2017 and 2016 : Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended September 30, 2017 Nine months ended September 30, 2017 (in thousands) Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning Balance $ (9,529 ) $ — $ (2,464 ) $ (11,993 ) $ (11,002 ) $ — $ (1,466 ) $ (12,468 ) Other comprehensive income (loss) before reclassifications 2,201 211 41 $ 2,453 3,674 211 (957 ) 2,928 Amounts reclassified from accumulated other comprehensive loss — — (142 ) $ (142 ) — — (142 ) (142 ) Net current-period other comprehensive income (loss) 2,201 211 (101 ) 2,311 3,674 211 (1,099 ) 2,786 Ending balance $ (7,328 ) $ 211 $ (2,565 ) $ (9,682 ) $ (7,328 ) $ 211 $ (2,565 ) $ (9,682 ) Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended September 30, 2016 Nine months ended September 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 $ 9 $ (9,484 ) $ (7,619 ) $ (17,094 ) $ (111 ) $ (12,041 ) $ 126 $ (8,913 ) $ (20,939 ) Other comprehensive income (loss) before reclassifications — (298 ) 143 (155 ) 120 2,259 — 1,547 3,926 Amounts reclassified from accumulated other comprehensive loss — — (56 ) (56 ) — — (126 ) (166 ) (292 ) Net current-period other comprehensive income (loss) — (298 ) 87 (211 ) 120 2,259 (126 ) 1,381 3,634 Ending balance $ 9 $ (9,782 ) $ (7,532 ) $ (17,305 ) $ 9 $ (9,782 ) $ — $ (7,532 ) $ (17,305 ) (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 nine months ended September 30, 2017 and 2016: Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended September 30, 2017 Nine months ended September 30, 2017 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 (227 ) (b) (227 ) (b) (227 ) Total before tax (227 ) Total before tax 85 Income tax provision 85 Income tax provision $ (142 ) Net of tax $ (142 ) Net of tax Total reclassifications for the period $ (142 ) Net of tax (142 ) Net of tax Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended September 30, 2016 Nine months ended September 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) $ (266 ) (b) (89 ) Total before tax (266 ) Total before tax 33 Income tax provision 100 Income tax provision $ (56 ) Net of tax $ (166 ) 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 (292 ) 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) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | (in thousands, except per common share data) Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Net income (loss) attributable to The Andersons, Inc. $ 2,533 $ 1,722 $ (27,208 ) $ 1,449 Less: Distributed and undistributed earnings allocated to nonvested restricted stock — 2 — 7 Earnings (losses) available to common shareholders $ 2,533 $ 1,720 $ (27,208 ) $ 1,442 Earnings per share – basic: Weighted average shares outstanding – basic 28,350 28,222 28,327 28,184 Earnings (losses) per common share – basic $ 0.09 $ 0.06 $ (0.96 ) $ 0.05 Earnings per share – diluted: Weighted average shares outstanding – basic 28,350 28,222 28,327 28,184 Effect of dilutive awards 134 140 — 196 Weighted average shares outstanding – diluted 28,484 28,362 28,327 28,380 Earnings (losses) per common share – diluted $ 0.09 $ 0.06 $ (0.96 ) $ 0.05 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 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 September 30, 2017 , December 31, 2016 and September 30, 2016 : (in thousands) September 30, 2017 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 26,738 $ (20,771 ) $ — $ 5,967 Provisionally priced contracts (b) (85,546 ) (33,944 ) — (119,490 ) Convertible preferred securities (c) — — 6,638 6,638 Other assets and liabilities (d) 10,996 (1,929 ) — 9,067 Total $ (47,812 ) $ (56,644 ) $ 6,638 $ (97,818 ) (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) September 30, 2016 Assets (liabilities) Level 1 Level 2 Level 3 Total Restricted cash $ 190 $ — $ — $ 190 Commodity derivatives, net (a) 34,620 (35,161 ) — (541 ) Provisionally priced contracts (b) (79,022 ) (20,500 ) (99,522 ) Convertible preferred securities (c) — — 3,294 3,294 Other assets and liabilities (d) 11,015 (4,774 ) — 6,241 Total $ (33,197 ) $ (60,435 ) $ 3,294 $ (90,338 ) (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 Preferred 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 investments — — — 2,500 Asset (liability) at June 30, $ — $ — $ 3,294 $ 3,294 Unrealized gains (losses) included in other comprehensive income — — 344 — New investments — — 3,000 — Asset (liability) at September 30, $ — $ — $ 6,638 $ 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 September 30, 2017 , December 31, 2016 and September 30, 2016 : Quantitative Information about Level 3 Fair Value Measurements (in thousands) Fair Value as of September 30, 2017 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 6,638 Implied based on market prices N/A N/A (in thousands) Fair Value as of December 31, 2016 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 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 September 30, 2016 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 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) September 30, December 31, September 30, Fair value of long-term debt, including current maturities $ 431,542 $ 450,940 $ 458,268 Fair value in excess of carrying value (a) 2,389 3,116 7,714 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2017 and 2016: (in thousands) Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Revenues $ 1,601,778 $ 1,646,697 $ 4,603,808 $ 4,676,583 Gross profit 58,826 50,141 155,568 127,963 Income from continuing operations 9,501 18,965 15,507 1,428 Net income (loss) 7,918 17,217 14,878 (2,924 ) Net income (loss) attributable to companies 9,545 17,752 15,781 (1,347 ) The following table presents the Company’s investment balance in each of its equity method investees by entity: (in thousands) September 30, 2017 December 31, 2016 September 30, 2016 The Andersons Albion Ethanol LLC $ 42,302 $ 38,972 $ 36,661 The Andersons Clymers Ethanol LLC 17,837 19,739 21,340 The Andersons Marathon Ethanol LLC 12,390 22,069 23,812 Lansing Trade Group, LLC 89,541 89,050 91,573 Thompsons Limited (a) 50,399 46,184 47,494 Other 2,562 917 4,234 Total $ 215,031 $ 216,931 $ 225,114 (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 September 30, Nine months ended September 30, (in thousands) % Ownership at September 30, 2017 2017 2016 2017 2016 The Andersons Albion Ethanol LLC 55% $ 1,473 $ 2,528 $ 3,331 $ 3,857 The Andersons Clymers Ethanol LLC 39% 1,822 2,706 2,597 3,516 The Andersons Marathon Ethanol LLC 33% 985 2,655 1,301 2,557 Lansing Trade Group, LLC 33% (a) 305 689 491 (7,412 ) Thompsons Limited (b) 50% (940 ) (156 ) 546 1,271 Other 5% - 50% (59 ) — (173 ) — Total $ 3,586 $ 8,422 $ 8,093 $ 3,789 (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 September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Sales revenues $ 225,367 $ 177,724 $ 665,331 $ 549,426 Service fee revenues (a) 14,397 3,800 28,433 13,290 Purchases of product 165,084 128,081 467,495 346,590 Lease income (b) 1,850 1,300 4,559 4,662 Labor and benefits reimbursement (c) 3,208 2,862 10,071 9,702 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) September 30, 2017 December 31, 2016 September 30, 2016 Accounts receivable (e) $ 18,694 $ 26,254 $ 18,028 Accounts payable (f) 27,413 23,961 15,352 (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. The following table presents combined summarized unaudited financial information of these investments for the three and nine months ended September 30, 2017 and 2016: (in thousands) Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Revenues $ 1,601,778 $ 1,646,697 $ 4,603,808 $ 4,676,583 Gross profit 58,826 50,141 155,568 127,963 Income from continuing operations 9,501 18,965 15,507 1,428 Net income (loss) 7,918 17,217 14,878 (2,924 ) Net income (loss) attributable to companies 9,545 17,752 15,781 (1,347 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Revenues from external customers Grain $ 497,613 $ 550,189 $ 1,464,588 $ 1,611,992 Ethanol 191,531 139,413 533,515 396,626 Plant Nutrient 103,620 101,770 514,943 588,797 Rail 43,093 38,201 121,632 118,152 Retail 738 30,039 47,595 96,168 Total $ 836,595 $ 859,612 $ 2,682,273 $ 2,811,735 Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Inter-segment sales Grain $ 72 $ 7 $ 279 $ 1,632 Plant Nutrient — 61 241 422 Rail 327 328 893 1,062 Total $ 399 $ 396 $ 1,413 $ 3,116 Three months ended September 30, Nine months ended September 30, (in thousands) 2017 2016 2017 2016 Income (loss) before income taxes Grain $ 2,641 $ 1,879 $ 4,497 $ (28,563 ) Ethanol 6,098 9,541 12,474 13,048 Plant Nutrient (7,920 ) (7,231 ) (27,074 ) 18,008 Rail 6,127 6,754 18,065 22,698 Retail 4,424 (1,578 ) (9,140 ) (2,644 ) Other (6,448 ) (6,539 ) (18,525 ) (19,612 ) Noncontrolling interests 83 1,619 73 1,711 Total $ 5,005 $ 4,445 $ (19,630 ) $ 4,646 (in thousands) September 30, 2017 December 31, 2016 September 30, 2016 Identifiable assets Grain $ 799,655 $ 961,114 $ 721,412 Ethanol 173,545 171,115 174,822 Plant Nutrient 389,396 484,455 462,328 Rail 446,884 398,446 383,631 Retail 9,138 31,257 42,880 Other 145,542 186,462 199,338 Total $ 1,964,160 $ 2,232,849 $ 1,984,411 |
Supplemental Cash Flow Inform37
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2017 and 2016 are as follows: Nine months ended September 30, (in thousands) 2017 2016 Supplemental disclosure of cash flow information Interest paid $ 20,356 $ 18,008 Noncash investing and financing activity Capital projects incurred but not yet paid 6,319 13,104 Investment merger (decreasing equity method investments and non-controlling interest) 8,360 — Dividends declared not yet paid 4,501 4,342 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 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 nine months ended September 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 September 30, 2017 $ 1,171 $ 17,767 $ 4,167 $ 23,105 |
Inventories (Details)
Inventories (Details) $ in Thousands, bu in Millions | Sep. 30, 2017USD ($)bu | Dec. 31, 2016USD ($)bu | Sep. 30, 2016USD ($)bu |
Inventory, Net [Abstract] | |||
Grain | $ 342,837 | $ 495,139 | $ 262,165 |
Ethanol and co-products | 12,502 | 10,887 | 7,734 |
Plant nutrients and cob products | 114,131 | 150,259 | 126,922 |
Retail merchandise | 718 | 20,678 | 24,985 |
Railcar repair parts | 5,414 | 5,784 | 5,948 |
Total inventories | $ 475,602 | $ 682,747 | $ 427,754 |
Bushels of grain held in storage and excluded from inventory calculations | bu | 1 | 0.9 | 1 |
Property, Plant and Equipment40
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Components of property, plant and equipment | |||
Land | $ 23,342 | $ 30,672 | $ 28,473 |
Land improvements and leasehold improvements | 71,559 | 79,631 | 82,908 |
Buildings and storage facilities | 298,951 | 322,856 | 319,950 |
Machinery and equipment | 384,422 | 392,418 | 393,178 |
Construction in progress | 7,703 | 12,784 | 21,284 |
Property, plant and equipment, gross | 785,977 | 838,361 | 845,793 |
Less: accumulated depreciation | 366,629 | 388,309 | 385,546 |
Property, plant and equipment, net | $ 419,348 | $ 450,052 | $ 460,247 |
Property, Plant and Equipment41
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 11.9 | $ 12 | $ 36 | $ 35.7 | |
Depreciation expense on railcar assets leased to others | $ 5.2 | $ 4.7 | $ 14.9 | $ 14 | |
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 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Components of Railcar assets leased to others | |||
Rail Group assets leased to others, gross | $ 484,214 | $ 431,571 | $ 438,211 |
Less: accumulated depreciation | 106,821 | 104,376 | 103,810 |
Railcar assets leased to others, net | $ 377,393 | $ 327,195 | $ 334,401 |
Debt (Details Textual)
Debt (Details Textual) - Line of credit - USD ($) $ in Millions | Sep. 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 | 718.5 | |
Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 20 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||
Short-term debt | $ 19,000 | $ 29,000 | $ 0 |
Long-term debt | |||
Total current maturities of long-term debt | 53,972 | 47,545 | 51,520 |
Total long-term debt, less current maturities | 371,315 | 397,065 | 395,559 |
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 | 19,000 | 29,000 | 0 |
Long-term debt | |||
Total current maturities of long-term debt | 53,972 | 47,545 | 51,520 |
Total long-term debt, less current maturities | $ 371,315 | $ 397,065 | $ 395,559 |
Derivatives (Details Textual)
Derivatives (Details Textual) | 9 Months Ended |
Sep. 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 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 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) | $ 27,737 | $ 28,273 | $ 13,358 |
Net derivative asset position, Fair value of derivatives | (999) | 1,599 | 16,258 |
Net derivative asset position, net | 26,738 | 29,872 | 29,616 |
Net derivative liability position, Collateral paid | 0 | 0 | 0 |
Net derivative liability position, Fair value of derivatives | 0 | 0 | 0 |
Net derivative liability position, net | $ 0 | $ 0 | $ 0 |
Derivatives (Details 1)
Derivatives (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | $ (999) | $ 1,599 | $ 16,258 |
Commodity derivative liabilities | 0 | 0 | 0 |
Commodity derivative assets - current | 45,202 | 45,447 | 59,837 |
Commodity derivative assets - noncurrent | 245 | 100 | 1,346 |
Commodity derivative liabilities - current | (38,578) | (23,167) | (59,770) |
Commodity derivative liabilities - noncurrent | (902) | (339) | (1,954) |
Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 34,842 | 37,739 | 65,104 |
Commodity derivative liabilities | (56,612) | (43,971) | (79,003) |
Cash collateral | 27,737 | 28,273 | 13,358 |
Total | 5,967 | 22,041 | (541) |
Commodity Derivative Assets - Current | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 33,804 | 36,146 | 60,372 |
Commodity derivative liabilities | (16,339) | (18,972) | (13,893) |
Cash collateral | 27,737 | 28,273 | 13,358 |
Commodity derivative assets - current | 45,202 | 45,447 | 59,837 |
Commodity Derivative Assets - Noncurrent | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 288 | 140 | 1,356 |
Commodity derivative liabilities | (43) | (40) | (10) |
Cash collateral | 0 | 0 | 0 |
Commodity derivative assets - noncurrent | 245 | 100 | 1,346 |
Commodity Derivative Liabilities - Current | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 676 | 1,447 | 3,318 |
Commodity derivative liabilities | (39,254) | (24,614) | (63,088) |
Cash collateral | 0 | 0 | 0 |
Commodity derivative liabilities - current | (38,578) | (23,167) | (59,770) |
Commodity Derivative Liabilities - Noncurrent | Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 74 | 6 | 58 |
Commodity derivative liabilities | (976) | (345) | (2,012) |
Cash collateral | 0 | 0 | 0 |
Commodity derivative liabilities - noncurrent | $ (902) | $ (339) | $ (1,954) |
Derivatives (Details 2)
Derivatives (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commodity | Cost of Sales and Merchandising Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments | $ (690) | $ (48,620) | $ (15,538) | $ (22,679) |
Not Designated as Hedging Instrument | Interest rate contracts | Interest Income (Expense) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments | 229 | 652 | 601 | (1,642) |
Not Designated as Hedging Instrument | Foreign currency contract | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments | $ 950 | $ (261) | $ 1,717 | $ (1,130) |
Derivatives (Details 3)
Derivatives (Details 3) lb in Thousands, gal in Thousands, bu in Thousands, T in Thousands | Sep. 30, 2017lb | Sep. 30, 2017bu | Sep. 30, 2017T | Sep. 30, 2017gal | Dec. 31, 2016lb | Dec. 31, 2016bu | Dec. 31, 2016T | Dec. 31, 2016gal | Sep. 30, 2016lb | Sep. 30, 2016bu | Sep. 30, 2016T | Sep. 30, 2016gal |
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 5,782 | 533,750 | 110 | 225,251 | 9,358 | 391,161 | 110 | 294,345 | 7,153 | 507,262 | 251 | 265,952 |
Non-exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 5,782 | 311,850 | 110 | 201,521 | 9,358 | 239,451 | 110 | 216,225 | 7,153 | 324,107 | 251 | 191,906 |
Non-exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 222,287 | 0 | 0 | 0 | 175,549 | 0 | 0 | 0 | 226,492 | 0 | 0 |
Non-exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 44,463 | 0 | 0 | 0 | 20,592 | 0 | 0 | 0 | 60,614 | 0 | 0 |
Non-exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 8,598 | 0 | 0 | 0 | 7,177 | 0 | 0 | 0 | 7,933 | 0 | 0 |
Non-exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 36,451 | 0 | 0 | 0 | 36,025 | 0 | 0 | 0 | 28,939 | 0 | 0 |
Non-exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 201,521 | 0 | 0 | 0 | 215,081 | 0 | 0 | 0 | 191,906 | |
Non-exchange Traded | Corn Oil | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 5,782 | 0 | 0 | 0 | 9,358 | 0 | 0 | 0 | 7,153 | 0 | 0 | 0 |
Non-exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 51 | 110 | 0 | 0 | 108 | 110 | 1,144 | 0 | 129 | 251 | 0 | |
Exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 221,900 | 0 | 23,730 | 0 | 151,710 | 0 | 78,120 | 0 | 183,155 | 0 | 74,046 |
Exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 113,990 | 0 | 0 | 0 | 63,225 | 0 | 0 | 0 | 105,395 | 0 | 0 |
Exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 45,220 | 0 | 0 | 0 | 39,005 | 0 | 0 | 0 | 35,245 | 0 | 0 |
Exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 61,795 | 0 | 0 | 0 | 45,360 | 0 | 0 | 0 | 39,715 | 0 | 0 |
Exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 895 | 0 | 0 | 0 | 4,120 | 0 | 0 | 0 | 2,800 | 0 | 0 |
Exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 22,890 | 0 | 0 | 0 | 78,120 | 0 | 0 | 0 | 74,046 |
Exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 840 |
Derivatives (Details 4)
Derivatives (Details 4) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Other long term liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | $ (1,929) | $ (2,530) | $ (4,774) |
Short term assets (liabilities) | Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative assets | $ 1,605 | $ (112) | $ 1,130 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Benefits | ||||
Components of the net periodic benefit cost | ||||
Interest cost | $ 38 | $ 49 | $ 116 | $ 145 |
Recognized net actuarial loss | 63 | 36 | 189 | 109 |
Benefit cost (income) | 101 | 85 | 305 | 254 |
Postretirement Benefits | ||||
Components of the net periodic benefit cost | ||||
Service cost | 81 | 190 | 310 | 570 |
Interest cost | 202 | 387 | 784 | 1,162 |
Amortization of prior service cost | (228) | (88) | (228) | (266) |
Recognized net actuarial loss | 0 | 192 | 0 | 576 |
Benefit cost (income) | $ 55 | $ 681 | $ 866 | $ 2,042 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
U.S. Federal tax rate | 35.00% | |||
Income tax expense (benefit) | $ 2,389 | $ 1,104 | $ 7,505 | $ 1,486 |
Effective tax rate | 47.70% | 24.80% | (38.20%) | 32.00% |
Increase rate related to reversal of previously recorded railroad track maintenance | 6.70% | |||
Goodwill write-off | $ 0 | $ 0 | $ 42,000 | $ 0 |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | [1] | $ (11,993) | $ (17,094) | $ (12,468) | $ (20,939) | |||
Other comprehensive income (loss) before reclassifications | [1] | 2,453 | (155) | 2,928 | 3,926 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (142) | (56) | (142) | (292) | |||
Other comprehensive income (loss) | [1] | 2,311 | (211) | 2,786 | 3,634 | |||
Ending balance | [1] | (9,682) | (17,305) | (9,682) | (17,305) | |||
Losses on Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | [1] | 9 | (111) | |||||
Other comprehensive income (loss) before reclassifications | [1] | 0 | 120 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | |||||
Other comprehensive income (loss) | [1] | 0 | 120 | |||||
Ending balance | [1] | 9 | 9 | |||||
Foreign Currency Translation Adjustment | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | [1] | (9,529) | (9,484) | (11,002) | (12,041) | |||
Other comprehensive income (loss) before reclassifications | [1] | 2,201 | (298) | 3,674 | 2,259 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | 0 | 0 | |||
Other comprehensive income (loss) | 2,201 | (298) | [1] | 3,674 | 2,259 | [1] | ||
Ending balance | [1] | (7,328) | (9,782) | (7,328) | (9,782) | |||
Investment in Convertible Preferred and Debt Securities | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | 0 | 0 | [1] | 126 | [1] | |||
Other comprehensive income (loss) before reclassifications | 211 | 211 | [1] | 0 | [1] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | (126) | [1] | ||||
Other comprehensive income (loss) | 211 | 211 | [1] | (126) | [1] | |||
Ending balance | [1] | 211 | 0 | 211 | 0 | |||
Defined Benefit Plan Items | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | [1] | (2,464) | (7,619) | (1,466) | (8,913) | |||
Other comprehensive income (loss) before reclassifications | [1] | 41 | 143 | (957) | 1,547 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (142) | (56) | (142) | (166) | |||
Other comprehensive income (loss) | (101) | 87 | [1] | (1,099) | 1,381 | [1] | ||
Ending balance | [1] | $ (2,565) | $ (7,532) | $ (2,565) | $ (7,532) | |||
[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 | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Income (loss) before income taxes | $ 5,005 | $ 4,445 | $ (19,630) | $ 4,646 | |||
Income tax provision | 2,389 | 1,104 | 7,505 | 1,486 | |||
Net income (loss) | 2,616 | 3,341 | (27,135) | 3,160 | |||
Reclassification out of Accumulated Other Comprehensive Income | |||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Net income (loss) | [1] | (142) | (56) | (142) | (292) | ||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior-service cost | |||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Amortization of prior-service cost | [2],[3] | (227) | (89) | (227) | (266) | ||
Income (loss) before income taxes | (227) | (89) | (227) | [2] | (266) | [2] | |
Income tax provision | 85 | 33 | 85 | 100 | |||
Net income (loss) | (142) | $ (56) | $ (142) | [2] | (166) | [2] | |
Reclassification out of Accumulated Other Comprehensive Income | Recognition of gain on sale of investment | |||||||
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 | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to The Andersons, Inc. | $ 2,533 | $ 1,722 | $ (27,208) | $ 1,449 |
Less: Distributed and undistributed earnings allocated to nonvested restricted stock | 0 | 2 | 0 | 7 |
Earnings available to common shareholders | $ 2,533 | $ 1,720 | $ (27,208) | $ 1,442 |
Earnings per share - basic: | ||||
Weighted average shares outstanding - basic (shares) | 28,350,000 | 28,222,000 | 28,327,000 | 28,184,000 |
Earnings per common share - basic (dollars per share) | $ 0.09 | $ 0.06 | $ (0.96) | $ 0.05 |
Earnings per share - diluted: | ||||
Weighted average shares outstanding - basic (shares) | 28,350,000 | 28,222,000 | 28,327,000 | 28,184,000 |
Effect of dilutive awards (shares) | 134,000 | 140,000 | 0 | 196,000 |
Weighted average shares outstanding - diluted (shares) | 28,484,000 | 28,362,000 | 28,327,000 | 28,380,000 |
Earnings per common share - diluted (dollars per share) | $ 0.09 | $ 0.06 | $ (0.96) | $ 0.05 |
Earnings Per Share (Textual) [Abstract] | ||||
Antidilutive stock-based awards outstanding (shares) | 43,000 | 0 | 43,000 | 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Assets and liabilities measured at fair value on a recurring basis | |||
Restricted cash | $ 471 | $ 190 | |
Commodity derivatives, net | $ 5,967 | 22,041 | (541) |
Provisionally price contracts | (119,490) | (170,197) | (99,522) |
Convertible preferred securities | 6,638 | 3,294 | 3,294 |
Other assets and liabilities | 9,067 | 6,861 | 6,241 |
Total | (97,818) | (137,530) | (90,338) |
Level 1 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Restricted cash | 471 | 190 | |
Commodity derivatives, net | 26,738 | 29,872 | 34,620 |
Provisionally price contracts | (85,546) | (105,321) | (79,022) |
Convertible preferred securities | 0 | 0 | 0 |
Other assets and liabilities | 10,996 | 9,391 | 11,015 |
Total | (47,812) | (65,587) | (33,197) |
Level 2 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Restricted cash | 0 | 0 | |
Commodity derivatives, net | (20,771) | (7,831) | (35,161) |
Provisionally price contracts | (33,944) | (64,876) | (20,500) |
Convertible preferred securities | 0 | 0 | 0 |
Other assets and liabilities | (1,929) | (2,530) | (4,774) |
Total | (56,644) | (75,237) | (60,435) |
Level 3 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Restricted cash | 0 | 0 | |
Commodity derivatives, net | 0 | 0 | 0 |
Provisionally price contracts | 0 | 0 | |
Convertible preferred securities | 6,638 | 3,294 | 3,294 |
Other assets and liabilities | 0 | 0 | 0 |
Total | $ 6,638 | $ 3,294 | $ 3,294 |
Fair Value Measurements (Deta57
Fair Value Measurements (Details 1) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | ||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | |
Convertible preferred securities (a) | |||||||
Reconciliation of Fair Value Measurements Using Level 3 | |||||||
Asset (liability), Beginning Balance | $ 3,294 | $ 3,294 | $ 3,294 | $ 3,294 | $ 775 | $ 13,550 | |
Gains (losses) included in earnings | 0 | 0 | 19 | 710 | |||
Unrealized gains (losses) included in other comprehensive income | 344 | 0 | |||||
Sales proceeds | 0 | (13,485) | |||||
New investments | 3,000 | 0 | 0 | 2,500 | |||
Asset (liability), Ending Balance | 6,638 | 3,294 | 3,294 | 3,294 | 3,294 | 775 | |
Convertible preferred securities (a) | Implied based on market prices | |||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||
Convertible preferred securities (a) | 6,638 | 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 | 0 | 0 | 0 | (160) | (350) | |
Gains (losses) included in earnings | 0 | 0 | 160 | 190 | |||
Unrealized gains (losses) included in other comprehensive income | 0 | 0 | |||||
Sales proceeds | 0 | 0 | |||||
New investments | 0 | 0 | 0 | 0 | |||
Asset (liability), Ending Balance | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (160) |
Fair Value Measurements (Deta58
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 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 | $ 431,542 | $ 450,940 | $ 458,268 |
Fair value in excess of carrying value (a) | $ 2,389 | $ 3,116 | $ 7,714 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | $ 215,031 | $ 225,114 | $ 215,031 | $ 225,114 | $ 216,931 | |
Income earned from Company's equity method investees | 3,586 | 8,422 | 8,093 | 3,789 | ||
The Andersons Albion Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 42,302 | 36,661 | 42,302 | 36,661 | 38,972 | |
Income earned from Company's equity method investees | 1,473 | 2,528 | 3,331 | 3,857 | ||
The Andersons Clymers Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 17,837 | 21,340 | 17,837 | 21,340 | 19,739 | |
Income earned from Company's equity method investees | 1,822 | 2,706 | 2,597 | 3,516 | ||
The Andersons Marathon Ethanol LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 12,390 | 23,812 | 12,390 | 23,812 | 22,069 | |
Income earned from Company's equity method investees | 985 | 2,655 | 1,301 | 2,557 | ||
Lansing Trade Group LLC | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 89,541 | 91,573 | 89,541 | 91,573 | 89,050 | |
Income earned from Company's equity method investees | 305 | 689 | 491 | (7,412) | ||
Thompsons Limited | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | [1] | 50,399 | 47,494 | 50,399 | 47,494 | 46,184 |
Income earned from Company's equity method investees | [2] | (940) | (156) | 546 | 1,271 | |
Other | ||||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||||
Equity method investments | 2,562 | 4,234 | 2,562 | 4,234 | $ 917 | |
Income earned from Company's equity method investees | $ (59) | $ 0 | $ (173) | $ 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 | 9 Months Ended | ||||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 01, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||||||
Total distributions received from unconsolidated affiliates | $ 7.1 | $ 24.1 | ||||||
Revenues recognized for the sale of ethanol | $ 160.8 | $ 109.3 | 445.4 | 220.6 | ||||
Revenues recognized for the sale of corn | $ 119.1 | $ 90.4 | 362.2 | 314.5 | ||||
Related party, Gross asset | 1.9 | 5 | 1.9 | 5 | $ 4.1 | |||
Related party, Gross liability | $ 0.1 | $ 0.2 | $ 0.1 | $ 0.2 | $ 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) | Sep. 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transactions [Abstract] | ||||
Revenues | $ 1,601,778 | $ 1,646,697 | $ 4,603,808 | $ 4,676,583 |
Gross profit | 58,826 | 50,141 | 155,568 | 127,963 |
Income from continuing operations | 9,501 | 18,965 | 15,507 | 1,428 |
Net income (loss) | 7,918 | 17,217 | 14,878 | (2,924) |
Net income (loss) attributable to companies | $ 9,545 | $ 17,752 | $ 15,781 | $ (1,347) |
Related Party Transactions (D63
Related Party Transactions (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Related party transactions entered into for the time periods presented | ||||||
Sales revenues | $ 225,367 | $ 177,724 | $ 665,331 | $ 549,426 | ||
Service fee revenues | [1] | 14,397 | 3,800 | 28,433 | 13,290 | |
Purchases of product | 165,084 | 128,081 | 467,495 | 346,590 | ||
Lease income | [2] | 1,850 | 1,300 | 4,559 | 4,662 | |
Labor and benefits reimbursement | [3] | 3,208 | 2,862 | 10,071 | 9,702 | |
Other expenses | [4] | 0 | 0 | 0 | 149 | |
Accounts receivable | [5] | 18,694 | 18,028 | 18,694 | 18,028 | $ 26,254 |
Accounts payable | [6] | $ 27,413 | $ 15,352 | $ 27,413 | $ 15,352 | $ 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] | 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 | |||||
[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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 836,595 | $ 859,612 | $ 2,682,273 | $ 2,811,735 | |
Income (loss) before income taxes | 5,005 | 4,445 | (19,630) | 4,646 | |
Identifiable assets | 1,964,160 | 1,984,411 | 1,964,160 | 1,984,411 | $ 2,232,849 |
Operating Segments | Grain | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 497,613 | 550,189 | 1,464,588 | 1,611,992 | |
Income (loss) before income taxes | 2,641 | 1,879 | 4,497 | (28,563) | |
Identifiable assets | 799,655 | 721,412 | 799,655 | 721,412 | 961,114 |
Operating Segments | Ethanol | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 191,531 | 139,413 | 533,515 | 396,626 | |
Income (loss) before income taxes | 6,098 | 9,541 | 12,474 | 13,048 | |
Identifiable assets | 173,545 | 174,822 | 173,545 | 174,822 | 171,115 |
Operating Segments | Plant Nutrient | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 103,620 | 101,770 | 514,943 | 588,797 | |
Income (loss) before income taxes | (7,920) | (7,231) | (27,074) | 18,008 | |
Identifiable assets | 389,396 | 462,328 | 389,396 | 462,328 | 484,455 |
Operating Segments | Rail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 43,093 | 38,201 | 121,632 | 118,152 | |
Income (loss) before income taxes | 6,127 | 6,754 | 18,065 | 22,698 | |
Identifiable assets | 446,884 | 383,631 | 446,884 | 383,631 | 398,446 |
Operating Segments | Retail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 738 | 30,039 | 47,595 | 96,168 | |
Income (loss) before income taxes | 4,424 | (1,578) | (9,140) | (2,644) | |
Identifiable assets | 9,138 | 42,880 | 9,138 | 42,880 | 31,257 |
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 399 | 396 | 1,413 | 3,116 | |
Segment Reconciling Items | Grain | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 72 | 7 | 279 | 1,632 | |
Segment Reconciling Items | Plant Nutrient | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 0 | 61 | 241 | 422 | |
Segment Reconciling Items | Rail | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 327 | 328 | 893 | 1,062 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes | (6,448) | (6,539) | (18,525) | (19,612) | |
Identifiable assets | 145,542 | 199,338 | 145,542 | 199,338 | $ 186,462 |
Noncontrolling interests | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes | $ 83 | $ 1,619 | $ 73 | $ 1,711 |
Segment Information (Details Te
Segment Information (Details Textual) | 9 Months Ended |
Sep. 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) - USD ($) $ in Millions | 1 Months Ended | |||
Aug. 31, 2015 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Build-to-Suit Lease | ||||
Operating Leased Assets [Line Items] | ||||
Term of leasing contract | 15 years | |||
Other long term liabilities | Build-to-Suit Lease | ||||
Operating Leased Assets [Line Items] | ||||
Financing obligation | $ 24.7 | $ 14 | $ 13.7 | |
Other current liabilities | Build-to-Suit Lease | ||||
Operating Leased Assets [Line Items] | ||||
Financing obligation | 1.4 | $ 0.9 | $ 1.3 | |
Plant Nutrient | 2015 Legal Claim | ||||
Operating Leased Assets [Line Items] | ||||
Loss contingency liability | $ 2.2 |
Supplemental Cash Flow Inform67
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 20,356 | $ 18,008 |
Noncash investing and financing activity | ||
Capital projects incurred but not yet paid | 6,319 | 13,104 |
Investment merger (decreasing equity method investments and non-controlling interest) | 8,360 | 0 |
Dividends declared not yet paid | $ 4,501 | $ 4,342 |
Sale of Assets (Details)
Sale of Assets (Details) $ in Millions | Mar. 31, 2017USD ($)location | May 02, 2016USD ($)location | Sep. 30, 2017USD ($)location |
Retail Property | |||
Business Acquisition [Line Items] | |||
Number of locations sold | location | 2 | ||
Proceeds from sale of assets | $ 7.6 | ||
Gain on sale of assets | $ 5.7 | ||
Farm Center | Florida | |||
Business Acquisition [Line Items] | |||
Number of locations sold | location | 4 | ||
Proceeds from sale of assets | $ 17.4 | ||
Gain on sale of assets | 4.7 | ||
Working capital adjustment receivable | $ 3.6 | ||
Grain and Agronomy | Iowa | |||
Business Acquisition [Line Items] | |||
Number of locations sold | location | 8 | ||
Gain on sale of assets | $ 54.3 |
Exit Costs and Assets Held fo69
Exit Costs and Assets Held for Sale (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Property, plant and equipment part of disposal group, held for sale | $ 8,383 | $ 0 | $ 0 |
Retail | Retail Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit charges | 11,500 | ||
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 | $ 8,400 |
Goodwill and Other Intangible70
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Roll Forward] | ||||
Balance as of January 1, 2017 | $ 63,934 | |||
Acquisitions | 1,171 | |||
Impairments | $ 0 | $ 0 | (42,000) | $ 0 |
Balance as of September 30, 2017 | 23,105 | $ 63,934 | 23,105 | $ 63,934 |
Grain | ||||
Goodwill [Roll Forward] | ||||
Balance as of January 1, 2017 | 0 | |||
Acquisitions | 1,171 | |||
Impairments | 0 | |||
Balance as of September 30, 2017 | 1,171 | 1,171 | ||
Plant Nutrient | ||||
Goodwill [Roll Forward] | ||||
Balance as of January 1, 2017 | 59,767 | |||
Acquisitions | 0 | |||
Impairments | (42,000) | |||
Balance as of September 30, 2017 | 17,767 | 17,767 | ||
Rail | ||||
Goodwill [Roll Forward] | ||||
Balance as of January 1, 2017 | 4,167 | |||
Acquisitions | 0 | |||
Impairments | 0 | |||
Balance as of September 30, 2017 | $ 4,167 | $ 4,167 |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 0 | $ 0 | $ 42,000 | $ 0 | ||
Goodwill | 23,105 | $ 63,934 | 23,105 | $ 63,934 | $ 63,934 | |
Plant Nutrient | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment | 42,000 | |||||
Goodwill | 17,767 | 17,767 | $ 59,767 | |||
Plant Nutrient | Wholesale | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 42,000 | |||||
Goodwill | $ 17,100 | $ 17,100 |