Cover page
Cover page - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-20557 | |
Entity Registrant Name | ANDERSONS, INC. | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1562374 | |
Entity Address, Address Line One | 1947 Briarfield Boulevard | |
Entity Address, City or Town | Maumee | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43537 | |
City Area Code | 419 | |
Local Phone Number | 893-5050 | |
Title of 12(b) Security | Common stock, $0.00 par value, $0.01 stated value | |
Trading Symbol | ANDE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 32.9 | |
Entity Central Index Key | 0000821026 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets: | |||
Cash, cash equivalents and restricted cash | $ 19,693 | $ 54,895 | $ 29,991 |
Accounts receivable, net | 539,671 | 536,367 | 611,290 |
Inventories | 1,028,076 | 1,170,536 | 1,026,465 |
Commodity derivative assets – current | 149,070 | 107,863 | 158,277 |
Other current assets | 85,372 | 75,681 | 60,586 |
Total current assets | 1,821,882 | 1,945,342 | 1,886,609 |
Other assets: | |||
Goodwill | 135,360 | 135,360 | 119,641 |
Other intangible assets, net | 167,398 | 175,312 | 206,572 |
Right of use assets, net | 62,182 | 76,401 | 85,766 |
Equity method investments | 22,910 | 23,857 | 121,781 |
Other assets, net | 24,305 | 21,753 | 30,449 |
Total other assets | 412,155 | 432,683 | 564,209 |
Rail Group assets leased to others, net | 597,069 | 584,298 | 537,629 |
Property, plant and equipment, net | 921,585 | 938,418 | 671,805 |
Total assets | 3,752,691 | 3,900,741 | 3,660,252 |
Current liabilities: | |||
Short-term debt | 392,450 | 147,031 | 434,304 |
Trade and other payables | 553,416 | 873,081 | 590,258 |
Customer prepayments and deferred revenue | 121,148 | 133,585 | 148,345 |
Commodity derivative liabilities – current | 90,491 | 46,942 | 66,623 |
Current maturities of long-term debt | 80,758 | 62,899 | 55,160 |
Accrued expenses and other current liabilities | 147,225 | 176,381 | 151,648 |
Total current liabilities | 1,385,488 | 1,439,919 | 1,446,338 |
Long-term lease liabilities | 43,308 | 51,091 | 57,451 |
Long-term debt, less current maturities | 987,526 | 1,016,248 | 982,025 |
Deferred income taxes | 156,804 | 146,155 | 138,598 |
Other long-term liabilities | 65,703 | 51,673 | 37,554 |
Total liabilities | 2,638,829 | 2,705,086 | 2,661,966 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Common shares, without par value (63,000 shares authorized; 33,550 shares issued at 3/31/2020, 12/31/2019 and 3/31/2019) | 137 | 137 | 137 |
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 | 0 |
Additional paid-in-capital | 341,382 | 345,359 | 324,753 |
Treasury shares, at cost (21, 207 and 193 shares at 3/31/2020, 12/31/2019 and 3/31/2019, respectively) | (652) | (7,342) | (7,216) |
Accumulated other comprehensive income (loss) | (27,649) | (7,231) | 2,474 |
Retained earnings | 599,039 | 642,687 | 627,136 |
Total shareholders’ equity of The Andersons, Inc. | 912,257 | 973,610 | 947,284 |
Noncontrolling interests | 201,605 | 222,045 | 51,002 |
Total equity | 1,113,862 | 1,195,655 | 998,286 |
Total liabilities and equity | $ 3,752,691 | $ 3,900,741 | $ 3,660,252 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | |||
Common shares, without par value (dollars per share) | $ 0 | $ 0 | $ 0 |
Common shares, shares authorized (shares) | 63,000 | 63,000 | 63,000 |
Common shares, shares issued (shares) | 33,550 | 33,550 | 33,550 |
Preferred shares, par value (dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred shares, shares authorized (shares) | 1,000 | 1,000 | 1,000 |
Preferred shares, shares issued (shares) | 0 | 0 | 0 |
Treasury shares, at cost (shares) | 20 | 207 | 193 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues from external customers | $ 1,853,105 | $ 1,976,792 |
Cost of sales and merchandising revenues | 1,789,975 | 1,867,128 |
Gross profit | 63,130 | 109,664 |
Operating, administrative and general expenses | 105,060 | 113,349 |
Interest expense, net | 15,587 | 15,910 |
Other income, net: | ||
Equity in earnings of affiliates, net | 129 | 1,519 |
Other income (loss), net | 4,813 | (1,514) |
Loss before income taxes | (52,575) | (19,590) |
Income tax benefit | (1,464) | (5,442) |
Net loss | (51,111) | (14,148) |
Net loss attributable to the noncontrolling interests | (13,449) | (155) |
Net loss attributable to The Andersons, Inc. | $ (37,662) | $ (13,993) |
Per common share: | ||
Basic earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ (1.15) | $ (0.43) |
Diluted earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ (1.15) | $ (0.43) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (51,111) | $ (14,148) |
Other comprehensive income (loss), net of tax: | ||
Change in unrecognized actuarial loss and prior service cost (net of income tax of $26 and $43) | (116) | (126) |
Cash flow hedge activity (net of income tax of $4,519 and $1,201) | (13,663) | (3,622) |
Foreign currency translation adjustments | (6,639) | 12,609 |
Other comprehensive income (loss) | (20,418) | 8,861 |
Comprehensive loss | (71,529) | (5,287) |
Comprehensive loss attributable to the noncontrolling interests | (13,449) | (155) |
Comprehensive loss attributable to The Andersons, Inc. | $ (58,080) | $ (5,132) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Change in fair value of convertible preferred securities, tax | $ 0 | $ 0 |
Change in unrecognized actuarial loss and prior service cost, tax | (26) | (43) |
Cash flow hedge activity, tax | (4,519) | (1,201) |
Foreign currency translation adjustments, tax | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net loss | $ (51,111) | $ (14,148) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation and amortization | 46,898 | 33,760 |
Bad debt expense | 4,310 | 318 |
Equity in earnings of affiliates, net of dividends | (129) | (1,465) |
Gains on sales of Rail Group assets and related leases | (645) | (736) |
Stock-based compensation expense | 2,880 | 4,799 |
Deferred federal income tax | 16,474 | (5,640) |
Inventory write down | 10,571 | 0 |
Other | 4,001 | 4,528 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (11,737) | (79,295) |
Inventories | 122,323 | 124,741 |
Commodity derivatives | 1,231 | (9,149) |
Other assets | (10,887) | 11,337 |
Payables and other accrued expenses | (362,609) | (191,095) |
Net cash used in operating activities | (228,430) | (122,045) |
Investing Activities | ||
Acquisition of business, net of cash acquired | 0 | (147,343) |
Purchases of Rail Group assets | (13,270) | (15,873) |
Proceeds from sale of Rail Group assets | 2,405 | 1,948 |
Purchases of property, plant and equipment and capitalized software | (19,307) | (44,728) |
Proceeds from sale of assets | 36 | 400 |
Purchase of investments | (280) | (240) |
Net cash used in investing activities | (30,416) | (205,836) |
Financing Activities | ||
Net change in short-term borrowings | 251,712 | 9,942 |
Proceeds from issuance of long-term debt | 90,736 | 693,761 |
Payments of long-term debt | (104,913) | (361,067) |
Contributions by noncontrolling interest owner | 3,307 | 4,715 |
Distributions to noncontrolling interest owner | (10,298) | 0 |
Payments of debt issuance costs | (250) | (5,788) |
Dividends paid | (5,723) | (5,515) |
Other | (994) | 2 |
Net cash provided by financing activities | 223,577 | 336,050 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 67 | (771) |
Increase (Decrease) in cash, cash equivalents and restricted cash | (35,202) | 7,398 |
Cash, cash equivalents and restricted cash at beginning of period | 54,895 | 22,593 |
Cash, cash equivalents and restricted cash at end of period | $ 19,693 | $ 29,991 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests | Adoption of accounting standard, net of income tax of ($237) | Adoption of accounting standard, net of income tax of ($237)Retained Earnings |
Beginning Balance at Dec. 31, 2018 | $ 876,764 | $ 96 | $ 224,396 | $ (35,300) | $ (6,387) | $ 647,517 | $ 46,442 | $ (711) | $ (711) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (14,148) | (13,993) | (155) | ||||||
Other comprehensive loss | (2,770) | (2,770) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 11,631 | (11,631) | |||||||
Contributions received from noncontrolling interest | 4,715 | 4,715 | |||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 5,188 | (22,756) | 27,944 | ||||||
Dividends declared per common share | (5,529) | (5,529) | |||||||
Stock awards granted due to acquisition | 123,146 | 41 | 123,105 | ||||||
Restricted share award dividend equivalents | 0 | 8 | 140 | (148) | |||||
Ending Balance at Mar. 31, 2019 | 998,286 | 137 | 324,753 | (7,216) | 2,474 | 627,136 | 51,002 | ||
Beginning Balance at Dec. 31, 2019 | 1,195,655 | 137 | 345,359 | (7,342) | (7,231) | 642,687 | 222,045 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (51,111) | (37,662) | (13,449) | ||||||
Other comprehensive loss | (20,974) | (20,974) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 556 | 556 | |||||||
Contributions received from noncontrolling interest | 3,307 | 3,307 | |||||||
Distributions to noncontrolling interest | (10,298) | (10,298) | |||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax | 2,475 | (3,977) | 6,452 | ||||||
Dividends declared per common share | (5,748) | (5,748) | |||||||
Restricted share award dividend equivalents | 0 | 238 | (238) | ||||||
Ending Balance at Mar. 31, 2020 | $ 1,113,862 | $ 137 | $ 341,382 | $ (652) | $ (27,649) | $ 599,039 | $ 201,605 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Number Of Common Shares Issued For Cash | 181 | 740 |
Dividends declared, per common share (in dollars per share) | $ 0.175 | $ 0.17 |
Adoption of new accounting standard, net of income tax | $ 237 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2020 | |
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”), its majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The portion of these entities that is not owned by the Company is presented as non-controlling interest. 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, 2020 . An unaudited Condensed Consolidated Balance Sheet as of March 31, 2019 has been included as the Company operates in several seasonal industries. The Condensed Consolidated Balance Sheet data at December 31, 2019 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, 2019 (the “2019 Form 10-K”). Recently Adopted Accounting Guidance Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . The FASB issued subsequent amendments to the initial guidance in November 2018, April 2019 and May 2019 with ASU 2018-19, ASU 2019-04 and ASU 2019-05, respectively. 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. Effective January 1, 2020, we adopted ASU 2016-13 using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The impact of adopting this new standard on the Condensed Consolidated Financial Statements was not material. Cloud Computing Software In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . This ASU reduces the complexity of accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The guidance is effective for fiscal years beginning after December 15, 2019. The adoption of this standard effective January 1, 2020 on the consolidated financial statements is not material. Reference Rate Reform (Topic 848) In March 2020, the FASB concluded its reference rate reform project and issued ASU 2020-04, Reference Rate Reform (Topic 848) . London Interbank Offered Rate (LIBOR) is a benchmark interest rate referenced in a variety of agreements that are used by all types of entities. At the end of 2021, banks will no longer be required to report information that is used to determine LIBOR. As a result, LIBOR could be discontinued. Other interest rates used globally could also be discontinued for similar reasons. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The optional amendments are effective for all entities as of March 12, 2020, through December 31, 2022. The Company has elected to adopt ASU 2020-04 immediately for all optional expedients provided for contract modification accounting as permissible under the standard. The impact of executing the standard should the need arise will be disclosed, however, at this time there has been no impact to our consolidated financial statements. Recent Accounting Guidance Issued Not Yet Effective Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The provisions of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The impact of this update on our consolidated financial statements is currently being assessed. At this time the Company does not plan to early adopt the standard. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Major classes of inventories are as follows: (in thousands) March 31, December 31, March 31, Grain and other agricultural products $ 750,281 $ 907,482 $ 812,361 Frac sand and propane 5,723 15,438 8,172 Ethanol and co-products 87,706 95,432 16,302 Plant nutrients and cob products 178,028 146,164 183,886 Railcar repair parts 6,338 6,020 5,744 Total Inventories $ 1,028,076 $ 1,170,536 $ 1,026,465 Inventories on the Condensed Consolidated Balance Sheets do not include 3.9 million , 6.4 million and 1.9 million bushels of grain held in storage for others as of March 31, 2020 , December 31, 2019 and March 31, 2019 , respectively. 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. In the first quarter of 2020, the Company recorded a $10.6 million lower of cost or net realizable value charge related to lower ethanol market prices and decreased demand as a result of the COVID-19 pandemic. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of Property, plant and equipment, net are as follows: (in thousands) March 31, December 31, March 31, Land $ 40,336 $ 40,442 $ 39,552 Land improvements and leasehold improvements 95,327 103,148 82,681 Buildings and storage facilities 381,258 373,961 337,631 Machinery and equipment 861,812 835,156 481,454 Construction in progress 41,824 59,993 151,895 1,420,557 1,412,700 1,093,213 Less: accumulated depreciation 498,972 474,282 421,408 Property, plant and equipment, net $ 921,585 $ 938,418 $ 671,805 Depreciation expense on property, plant and equipment was $31.0 million and $17.9 million for the three months ended March 31, 2020 and 2019 , respectively. Rail Group Assets The components of Rail Group assets leased to others are as follows: (in thousands) March 31, December 31, March 31, Rail Group assets leased to others $ 740,809 $ 723,004 $ 660,747 Less: accumulated depreciation 143,740 138,706 123,118 Rail Group assets, net $ 597,069 $ 584,298 $ 537,629 Depreciation expense on Rail Group assets leased to others amounted to $7.7 million and $6.7 million for the three months ended March 31, 2020 and 2019 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term and long-term debt at March 31, 2020 , December 31, 2019 and March 31, 2019 consisted of the following: (in thousands) March 31, December 31, March 31, Short-term Debt – Non-Recourse $ 83,791 $ 54,029 $ 97,304 Short-term Debt – Recourse 308,659 93,002 337,000 Total Short-term Debt $ 392,450 $ 147,031 $ 434,304 Current Maturities of Long-term Debt – Non-Recourse $ 5,212 $ 9,545 $ 7,793 Current Maturities of Long-term Debt – Recourse 75,546 53,354 47,367 Total Current Maturities of Long-term Debt $ 80,758 $ 62,899 $ 55,160 Long-term Debt, Less: Current Maturities – Non-Recourse $ 329,462 $ 330,251 $ 177,955 Long-term Debt, Less: Current Maturities – Recourse 658,064 685,997 804,070 Total Long-term Debt, Less: Current Maturities $ 987,526 $ 1,016,248 $ 982,025 The total borrowing capacity of the Company's lines of credit at March 31, 2020 was $1,684.0 million of which the Company had a total of $1,006.4 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 is in compliance with all financial covenants as of March 31, 2020 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company’s operating results are affected by changes to commodity prices. The Trade 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 purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. These contracts are primarily traded via regulated commodity exchanges. The Company’s forward purchase and sales contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Most contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year . Most of these contracts meet the definition of derivatives. While the Company considers its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges as defined under current accounting standards. The Company primarily accounts for its commodity derivatives at estimated fair value. The estimated fair value of the commodity derivative contracts that require the receipt or posting of cash collateral is recorded on a net basis (offset against cash collateral posted or received, also known as margin deposits) within commodity derivative assets or liabilities. Management determines fair value based on exchange-quoted prices and in the case of its forward purchase and sale contracts, estimated fair value is adjusted for differences in local markets and non-performance risk. For contracts for which physical delivery occurs, balance sheet classification is based on estimated delivery date. For futures, options and over-the-counter contracts in which physical delivery is not expected to occur but, rather, the contract is expected to be net settled, the Company classifies these contracts as current or noncurrent assets or liabilities, as appropriate, based on the Company’s expectations as to when such contracts will be settled. Realized and unrealized gains and losses in the value of commodity contracts (whether due to changes in commodity prices, changes in performance or credit risk, or due to sale, maturity or extinguishment of the commodity contract) and 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 future, option or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a future, option or an over-the-counter contract moves in a direction that is adverse to the Company’s position, an additional margin deposit, called a maintenance margin, is required. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Condensed Consolidated Balance Sheets. The following table presents at March 31, 2020 , December 31, 2019 and March 31, 2019 , 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: March 31, 2020 December 31, 2019 March 31, 2019 (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 Cash collateral paid $ 22,855 $ — $ 56,005 $ — $ 21,751 $ — Fair value of derivatives 20,977 — (10,323 ) — 38,580 — Balance at end of period $ 43,832 $ — $ 45,682 $ — $ 60,331 $ — The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: March 31, 2020 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 164,700 $ 3,240 $ 9,648 $ 142 $ 177,730 Commodity derivative liabilities (38,485 ) (119 ) (100,139 ) (2,667 ) (141,410 ) Cash collateral paid 22,855 — — — 22,855 Balance sheet line item totals $ 149,070 $ 3,121 $ (90,491 ) $ (2,525 ) $ 59,175 December 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 92,429 $ 1,045 $ 7,439 $ 18 $ 100,931 Commodity derivative liabilities (40,571 ) (96 ) (54,381 ) (523 ) (95,571 ) Cash collateral paid 56,005 — — — 56,005 Balance sheet line item totals $ 107,863 $ 949 $ (46,942 ) $ (505 ) $ 61,365 March 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 142,262 $ 3,781 $ 665 $ 93 $ 146,801 Commodity derivative liabilities (5,736 ) (24 ) (67,288 ) (3,914 ) (76,962 ) Cash collateral paid 21,751 — — — 21,751 Balance sheet line item totals $ 158,277 $ 3,757 $ (66,623 ) $ (3,821 ) $ 91,590 The net pretax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line item in which they are located for the three and three months ended March 31, 2020 and 2019 are as follows: Three months ended March 31, (in thousands) 2020 2019 Gains on commodity derivatives included in cost of sales and merchandising revenues $ 30,960 $ 66,419 The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at March 31, 2020 , December 31, 2019 and March 31, 2019 : March 31, 2020 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 555,782 — — — Soybeans 33,950 — — — Wheat 92,374 — — — Oats 56,582 — — — Ethanol — 103,252 — — Corn oil — — 6,275 — Other 18,734 1,500 296 2,010 Subtotal 757,422 104,752 6,571 2,010 Exchange traded: Corn 165,295 — — — Soybeans 37,875 — — — Wheat 59,135 — — — Oats 1,490 — — — Ethanol — 44,440 — — Propane — 11,760 — — Other — 11,970 — 213 Subtotal 263,795 68,170 — 213 Total 1,021,217 172,922 6,571 2,223 December 31, 2019 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 552,359 — — — Soybeans 34,912 — — — Wheat 100,996 — — — Oats 24,700 — — — Ethanol — 116,448 — — Corn oil — — 14,568 — Other 11,363 4,000 305 2,263 Subtotal 724,330 120,448 14,873 2,263 Exchange traded: Corn 221,740 — — — Soybeans 39,145 — — — Wheat 68,171 — — — Oats 2,090 — — — Ethanol — 175,353 — — Propane — 5,166 — — Other — 15 — 232 Subtotal 331,146 180,534 — 232 Total 1,055,476 300,982 14,873 2,495 March 31, 2019 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 624,612 — — — Soybeans 42,859 — — — Wheat 118,909 — — — Oats 26,361 — — — Ethanol — 233,420 — — Corn oil — — 6,733 — Other 5,574 2,032 6 2,508 Subtotal 818,315 235,452 6,739 2,508 Exchange traded: Corn 197,210 — — — Soybeans 47,860 — — — Wheat 103,955 — — — Oats 770 — — — Ethanol — 110,758 — — Gasoline — 12,936 — — Propane — 14,784 — — Other 2 — — 205 Subtotal 349,797 138,478 — 205 Total 1,168,112 373,930 6,739 2,713 Interest Rate and Other Derivatives The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The gains or losses on the derivatives are recorded in Other Comprehensive Income (Loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. At March 31, 2020 , December 31, 2019 and March 31, 2019 , the Company had recorded the following amounts for the fair value of the Company's other derivatives: (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 Derivatives not designated as hedging instruments Interest rate contracts included in Other long-term liabilities $ (1,913 ) $ (1,007 ) $ (4,494 ) Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) $ 440 $ 2,742 $ (344 ) Derivatives designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ (8,081 ) $ (3,118 ) $ — Interest rate contracts included in Other long-term assets (Other long-term liabilities) $ (22,620 ) $ (9,382 ) $ (4,552 ) The recording of derivatives gains and losses and the financial statement line in which they are located are as follows: Three months ended March 31, (in thousands) 2020 2019 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest income (expense), net $ (784 ) $ (990 ) Foreign currency derivative gains (losses) included in Other income (loss), net $ — $ (1,467 ) Derivatives designated as hedging instruments Interest rate derivative gains (losses) included in Other Comprehensive Income (Loss) $ (18,182 ) $ (4,991 ) Interest rate derivatives gains (losses) included in Interest income (expense), net $ (1,290 ) $ 165 Outstanding interest rate derivatives, as of March 31, 2020 , are as follows: Interest Rate Hedging Instrument Year Entered Year of Maturity Initial Notional Amount (in millions) Description Interest Rate Long-term Swap 2014 2023 $ 23.0 Interest rate component of debt - not accounted for as a hedge 1.9% Collar 2016 2021 $ 40.0 Interest rate component of debt - not accounted for as a hedge 3.5% to 4.8% Swap 2017 2022 $ 20.0 Interest rate component of debt - accounted for as a hedge 1.8% Swap 2018 2023 $ 10.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2025 $ 20.0 Interest rate component of debt - accounted for as a hedge 2.7% Swap 2018 2021 $ 40.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2019 2021 $ 25.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2021 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 100.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.8% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.7% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Many of the Company’s revenues are generated from contracts that are outside the scope of ASC 606 and thus are accounted for under other accounting standards. Specifically, many of the Company's Trade and Ethanol sales contracts are derivatives under ASC 815, Derivatives and Hedging and the Rail Group's leasing revenue is accounted for under ASC 842, Leases . The breakdown of revenues between ASC 606 and other standards is as follows: Three months ended March 31, (in thousands) 2020 2019 Revenues under ASC 606 $ 347,502 $ 315,172 Revenues under ASC 842 25,551 28,868 Revenues under ASC 815 1,480,052 1,632,752 Total Revenues $ 1,853,105 $ 1,976,792 The remainder of this note applies only to those revenues that are accounted for under ASC 606. Disaggregation of revenue The following tables disaggregate revenues under ASC 606 by major product/service line for the three months ended March 31, 2020 and 2019 , respectively: Three months ended March 31, 2020 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 73,231 $ — $ 73,231 Primary nutrients — — 45,690 — 45,690 Services 1,686 — 182 8,736 10,604 Ethanol products and co-products 53,165 101,698 — — 154,863 Frac sand and propane 49,875 — — — 49,875 Other 3,989 616 5,810 2,824 13,239 Total $ 108,715 $ 102,314 $ 124,913 $ 11,560 $ 347,502 Three months ended March 31, 2019 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ 3,938 $ — $ 68,400 $ — $ 72,338 Primary nutrients 427 — 53,089 — 53,516 Service 825 3,436 162 9,947 14,370 Ethanol products and co-products 62,758 21,472 — — 84,230 Frac sand and propane 80,463 — — — 80,463 Other 1,157 — 6,874 2,224 10,255 Total $ 149,568 $ 24,908 $ 128,525 $ 12,171 $ 315,172 Approximately 3% and 5% of revenues accounted for under ASC 606 during the three months ended March 31, 2020 and 2019 , respectively, and are recorded over time which primarily relates to service revenues noted above. Contract balances The balances of the Company’s contract liabilities were $65.8 million and $28.5 million as of March 31, 2020 and December 31, 2019 , respectively. The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. The main driver of the contract liabilities balance is payments for primary and specialty nutrients received in advance of fulfilling our performance obligations under our customer contracts. The primary and specialty business records contract liabilities for payments received in advance of fulfilling our performance obligations under our customer contracts. Further, due to seasonality of this business, contract liabilities were built up in the first quarter of the year. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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 forecasted based on actual historical information and forward-looking estimates and is used to provide for income taxes in interim reporting periods. The Company also recognizes the tax impact of certain unusual or infrequently occurring items, such as the effects of changes in tax laws or rates and impacts from settlements with tax authorities, discretely in the quarter in which they occur. For the three months ended March 31, 2020 , the Company recorded an income tax benefit of $1.5 million at an effective income tax rate of 2.8% . The annual effective tax rate differs from the statutory U.S. Federal tax rate as the tax benefit from consolidated pre-tax losses is completely offset by the portion of losses owned by non-controlling interests that do not provide for a tax benefit. The decrease in effective tax rate for the three months ended March 31, 2020 as compared to the same period last year was primarily attributed to the tax expense generated from the current period loss before taxes at the estimated annual effective tax rate, offset by tax benefits from anticipated net operating loss carrybacks as result of the Coronavirus Aid, Relief, and. Economic Security Act ("CARES") Act. For the three months ended March 31, 2019 , the Company recorded an income tax benefit of $5.4 million at an effective income tax rate of 27.8% . The 2020 effective tax rate can be affected by variances in the estimates and amounts of taxable income among the various states, entities and activity types, realization of tax credits, adjustments from resolution of tax matters under review, valuation allowances and the company’s assessment of its liability for uncertain tax positions. The amount of unrecognized tax benefits for uncertain tax positions was $25.4 million as of March 31, 2020 , and $0.6 million for the period ended March 31, 2019 . The unrecognized tax benefits of $25.4 million include $21.7 million recorded as a reduction of the deferred tax asset and refundable credits associated with the R&D Credits. On March 27, 2020, President Trump signed into U.S. federal law the CARES Act, which is aimed at providing emergency assistance and health care for individuals, families and businesses affected by the Coronavirus (“COVID-19”) pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. In particular, under the CARES Act, (i) for taxable years beginning before 2021, net operating loss carryforwards and carrybacks may offset 100% of taxable income, (ii) NOLs arising in 2018, 2019, and 2020 taxable years may be carried back to each of the preceding five years to generate a refund and (iii) for taxable years beginning in 2019 and 2020, the base for interest deductibility is increased from 30% to 50% of EBITDA. The Company has analyzed the impact of the CARES Act to determine the estimated impact on 2019 filing positions that could be carried back to prior tax years, and recorded a financial statement benefit of $6.6 million . On April 17, 2020, the Internal Revenue Service issued Revenue Procedure 2020-25, allowing for companies to revoke an election out of bonus depreciation. The Company is currently evaluating the impact of this additional guidance. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 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 months ended March 31, 2020 and 2019 : Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended March 31, 2020 (in thousands) Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning Balance $ (9,443 ) $ 1,065 $ 258 $ 889 $ (7,231 ) Other comprehensive loss before reclassifications (14,390 ) (6,639 ) — 55 $ (20,974 ) Amounts reclassified from accumulated other comprehensive income (loss) 727 — — (171 ) $ 556 Net current-period other comprehensive income (loss) (13,663 ) (6,639 ) — (116 ) (20,418 ) Ending balance $ (23,106 ) $ (5,574 ) $ 258 $ 773 $ (27,649 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended March 31, 2019 (in thousands) Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning Balance $ (126 ) $ (11,550 ) $ 258 $ 5,031 $ (6,387 ) Other comprehensive loss before reclassifications (3,758 ) 943 — 45 $ (2,770 ) Amounts reclassified from accumulated other comprehensive income (loss) (b) 136 11,666 — (171 ) $ 11,631 Net current-period other comprehensive income (loss) (3,622 ) 12,609 — (126 ) 8,861 Ending balance $ (3,748 ) $ 1,059 $ 258 $ 4,905 $ 2,474 (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) Reflects foreign currency translation adjustments attributable to the consolidation of Thompsons Limited. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended March 31, 2020 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 Defined Benefit Plan Items Amortization of prior-service cost $ (228 ) (b) (228 ) Total before tax 57 Income tax provision (benefit) $ (171 ) Net of tax Cash Flow Hedges Interest payments $ 969 Interest expense 969 Total before tax (242 ) Income tax provision $ 727 Net of tax Total reclassifications for the period $ 556 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. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended March 31, 2019 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 Defined Benefit Plan Items Amortization of prior-service cost $ (228 ) (b) (228 ) Total before tax 57 Income tax provision (benefit) $ (171 ) Net of tax Cash Flow Hedges Interest payments $ 182 Interest expense 182 Total before tax (46 ) Income tax provision $ 136 Net of tax Foreign Currency Translation Adjustment Realized loss on pre-existing investment $ 11,666 Other income, net 11,666 Total before tax — Income tax provision $ 11,666 Net of tax Total reclassifications for the period $ 11,631 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share (in thousands, except per common share data) Three months ended March 31, 2020 2019 Net loss attributable to The Andersons, Inc. $ (37,662 ) $ (13,993 ) Earnings per share – basic: Weighted average shares outstanding – basic 32,821 32,501 Earnings per common share – basic $ (1.15 ) $ (0.43 ) Earnings per share – diluted: Weighted average shares outstanding – basic 32,821 32,501 Effect of dilutive awards — — Weighted average shares outstanding – diluted 32,821 32,501 Earnings per common share – diluted $ (1.15 ) $ (0.43 ) All outstanding share awards were antidilutive for the three months ended March 31, 2020 and March 31, 2019 as the Company incurred a net loss in both periods. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , December 31, 2019 and March 31, 2019 : (in thousands) March 31, 2020 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 43,832 $ 15,343 $ — $ 59,175 Provisionally priced contracts (b) (94,834 ) (51,061 ) — (145,895 ) Convertible preferred securities (c) — — 8,654 8,654 Other assets and liabilities (d) 5,373 (32,614 ) — (27,241 ) Total $ (45,629 ) $ (68,332 ) $ 8,654 $ (105,307 ) (in thousands) December 31, 2019 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 45,682 $ 15,683 $ — $ 61,365 Provisionally priced contracts (b) (118,414 ) (68,237 ) — (186,651 ) Convertible preferred securities (c) — — 8,404 8,404 Other assets and liabilities (d) 9,469 (13,507 ) — (4,038 ) Total $ (63,263 ) $ (66,061 ) $ 8,404 $ (120,920 ) (in thousands) March 31, 2019 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 60,331 $ 31,259 $ — $ 91,590 Provisionally priced contracts (b) (48,430 ) (49,393 ) — (97,823 ) Convertible preferred securities (c) — — 7,404 7,404 Other assets and liabilities (d) 5,772 (4,494 ) — 1,278 Total $ 17,673 $ (22,628 ) $ 7,404 $ 2,449 (a) Includes associated cash posted/received as collateral (b) Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) (c) Recorded in “Other assets, net” on the Company’s Consolidated Balance Sheets related to certain available for sale securities. (d) Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans, 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 exchanged-traded futures and options contracts that the Company holds, net of the cash collateral, that the Company has in its margin account. The majority of the Company’s assets and liabilities measured at fair value are based on the market approach valuation technique. With the market approach, fair value is derived using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s net commodity derivatives primarily consist of futures or options contracts via regulated exchanges and contracts with producers or customers under which the future settlement date and bushels (or gallons in the case of ethanol contracts) of commodities to be delivered (primarily wheat, corn, soybeans and ethanol) are fixed and under which the price may or may not be fixed. Depending on the specifics of the individual contracts, the fair value is derived from the futures or options prices quoted on various exchanges for similar commodities and delivery dates as well as observable quotes for local basis adjustments (the difference, which is attributable to local market conditions, between the quoted futures price and the local cash price). Because “basis” for a particular commodity and location typically has multiple quoted prices from other agribusinesses in the same geographical vicinity and is used as a common pricing mechanism in the agribusiness industry, we have concluded that “basis” is typically a Level 2 fair value input for purposes of the fair value disclosure requirements related to our commodity derivatives, depending on the specific commodity. Although nonperformance risk, both of the Company and the counterparty, is present in each of these commodity contracts and is a component of the estimated fair values, based on the Company’s historical experience with its producers and customers and the Company’s knowledge of their businesses, the Company does not view nonperformance risk to be a significant input to fair value for these commodity contracts. These fair value disclosures exclude 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 Inventories. 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 we have delivered provisionally priced grain and a subsequent payable or receivable is set up for any future changes in the grain price, quoted exchange prices are used and the liability is deemed to be Level 1 in the fair value hierarchy. For all other unpriced contracts which include variable futures and basis components, the amounts recorded for delayed price contracts are determined on the basis of local grain market prices at the balance sheet date and, as such, are deemed to be Level 2 in the fair value hierarchy. The 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 exchange prices and as such, the balance is deemed to be Level 1 in the fair value hierarchy. The convertible preferred securities are interests in several early-stage enterprises that may be in various forms, such as convertible debt or preferred equity securities. A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: Convertible Preferred Securities (in thousands) 2020 2019 Assets (liabilities) at January 1, $ 8,404 $ 7,154 Additional Investments 250 250 Assets (liabilities) at March 31, $ 8,654 $ 7,404 The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of March 31, 2020 , December 31, 2019 and March 31, 2019 : Quantitative Information about Recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of March 31, 2020 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,654 Implied based on market prices N/A N/A (in thousands) Fair Value as of December 31, 2019 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,404 Implied based on market prices N/A N/A (in thousands) Fair Value as of March 31, 2019 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 7,404 Implied based on market prices N/A N/A (a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points. Quantitative Information about Non-recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of December 31, 2019 Valuation Method Unobservable Input Weighted Average Frac sand assets (a) $ 16,546 Third party appraisal Various N/A Real property (b) 608 Market approach Various N/A Equity method investment (c) 12,424 Discounted cash flow analysis Various N/A (a) The Company recognized impairment charges on long lived related to its frac sand business. The fair value of the assets were determined using prior transactions and third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis. (b) The Company recognized impairment charges on certain Trade assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets were determined using prior transactions in the local market and a recent sale of comparable Trade group assets held by the Company. (c) The Company recorded an other-than-temporary impairment charge on an existing equity method investment. The fair value of the investment was determined using a discounted cash flow analysis. There were no non-recurring fair value measurements as of March 31, 2020 and March 31, 2019 . 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) March 31, December 31, March 31, Fair value of long-term debt, including current maturities $ 1,113,042 $ 1,096,010 $ 1,043,503 Fair value in excess of carrying value (a) 36,461 8,257 2,318 (a) Carrying value used for this purpose excludes unamortized 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 Parties
Related Parties | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties In the ordinary course of business and on an arms-length basis, the Company will mainly enter into related party transactions with the minority shareholders of the Company's ethanol operations and several equity method investments that the Company holds, along with other related parties. The following table sets forth the related party transactions entered into for the time periods presented: Three months ended March 31, (in thousands) 2020 2019 Sales revenues $ 54,694 $ 61,168 Service fee revenues (a) — 4,112 Purchases of product and capital assets 15,577 169,229 Lease income (b) 147 1,014 Labor and benefits reimbursement (c) — 3,857 (a) Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. These revenues are now eliminated in consolidation as a result of the TAMH merger. (b) Lease income includes certain railcars leased to related parties and the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities from the prior period and are now eliminated in consolidation as a result of the TAMH merger. (c) Prior to the TAMH merger the Company provided all operations labor to the unconsolidated ethanol LLCs and charged them an amount equal to the Company's costs of the related services for the prior periods. (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 Accounts receivable (d) $ 6,586 $ 10,603 $ 20,134 Accounts payable (e) 6,364 12,303 24,644 (d) Accounts receivable represents amounts due from related parties for the sale of ethanol and other various items. (e) Accounts payable represents amounts due to related parties for purchases of ethanol equipment and other various items. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s operations include four reportable business segments that are distinguished primarily on the basis of products and services offered. The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The Ethanol business produces ethanol through its five co-owned and fully consolidated ethanol production facilities as well as purchases and sells ethanol and ethanol co-products. The Plant Nutrient business manufactures and distributes agricultural inputs, primarily fertilizer, to dealers and farmers, along with turf care and corncob-based products. Rail operations include the leasing, marketing and fleet management of railcars and other assets, railcar repair and metal fabrication. The Other category includes other corporate level costs not attributable 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 revenue. Three months ended March 31, (in thousands) 2020 2019 Revenues from external customers Trade $ 1,378,040 $ 1,537,686 Ethanol 313,039 269,166 Plant Nutrient 124,913 128,525 Rail 37,113 41,415 Total $ 1,853,105 $ 1,976,792 Three months ended March 31, (in thousands) 2020 2019 Inter-segment sales Trade $ 609 $ 181 Plant Nutrient 887 20 Rail 1,605 1,275 Total $ 3,101 $ 1,476 Three months ended March 31, (in thousands) 2020 2019 Income (loss) before income taxes, net of noncontrolling interest Trade $ (9,983 ) $ (17,903 ) Ethanol (23,976 ) 3,011 Plant Nutrient (1,192 ) (3,929 ) Rail 1,007 4,312 Other (4,982 ) (4,926 ) Income (loss) before income taxes, net of noncontrolling interest (39,126 ) (19,435 ) Noncontrolling interests (13,449 ) (155 ) Income (loss) before income taxes $ (52,575 ) $ (19,590 ) (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 Identifiable assets Trade $ 1,878,812 $ 2,012,060 $ 2,116,254 Ethanol 653,928 690,548 333,060 Plant Nutrient 434,512 383,781 455,529 Rail 658,271 693,931 642,596 Other 127,168 120,421 112,813 Total $ 3,752,691 $ 3,900,741 $ 3,660,252 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is party to litigation, or threats thereof, both as defendant and plaintiff with some regularity, although individual cases that are material in size occur infrequently. As a defendant, the Company establishes reserves for claimed amounts that are considered probable and capable of estimation. If those cases are resolved for lesser amounts, the excess reserves are taken into income and, conversely, if those cases are resolved for larger than the amount the Company has accrued, the Company records additional expense. The Company believes it is unlikely that the results of its current legal proceedings for which it is the defendant, even if unfavorable, will be material. As a plaintiff, amounts that are collected can also result in sudden, non-recurring income. Litigation results depend upon a variety of factors, including the availability of evidence, the credibility of witnesses, the performance of counsel, the state of the law, and the impressions of judges and jurors, any of which can be critical in importance, yet difficult, if not impossible, to predict. Consequently, cases currently pending, or future matters, may result in unexpected, and non-recurring losses, or income, from time to time. Finally, litigation results are often subject to judicial reconsideration, appeal and further negotiation by the parties, and as a result, the final impact of a particular judicial decision may be unknown for some time or may result in continued reserves to account for the potential of such post-verdict actions. The Company recorded a $5.0 million reserve relating to an outstanding non-regulatory litigation claim, based upon preliminary settlement negotiations in the first quarter of 2019. The claim is in response to penalties and fines paid to regulatory entities by a previously unconsolidated subsidiary in 2018 for the settlement of matters which focused on certain trading activity. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 and 2019 are as follows: Three months ended March 31, (in thousands) 2020 2019 Supplemental disclosure of cash flow information Interest paid $ 16,180 $ 16,711 Noncash investing and financing activity Dividends declared not yet paid 5,748 5,527 Capital projects incurred but not yet paid 8,459 15,974 Equity issued in conjunction with acquisition — 123,146 Removal of pre-existing equity method investment — (159,459 ) Purchase price holdback/ other accrued liabilities — 31,518 |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisition On October 1, 2019, The Andersons entered into an agreement with Marathon to merge TAAE, TACE, TAME and the Company's wholly-owned subsidiary, The Andersons Denison Ethanol LLC into a new legal entity, The Andersons Marathon Holdings LLC. As a result of the merger, The Andersons and Marathon now own 50.1% and 49.9% of the equity in TAMH, respectively. Total consideration transferred by the Company to complete the acquisition of TAMH was $182.9 million . The company transferred non-cash consideration of $7.3 million and its equity values of the previously mentioned LLCs. The purchase price allocation is preliminary, pending, finalization of deferred income taxes adjustments. A summarized preliminary purchase price allocation is as follows: (in thousands) Non-cash consideration $ 7,318 Investments contributed at fair value 124,662 Investment contributed at cost 50,875 Total purchase price consideration $ 182,855 The preliminary purchase price allocation at October 1, 2019, is as follows: (in thousands) Cash and cash equivalents $ 47,042 Accounts receivable 12,175 Inventories 31,765 Other current assets 2,638 Goodwill 2,726 Right of use asset 5,200 Other assets, net 861 Property, plant and equipment, net 321,380 423,787 Trade and other payables 13,461 Accrued expense and other current liabilities 3,011 Other long-term liabilities 209 Long-term lease liabilities 2,230 Long-term debt, including current maturities 47,886 66,797 Marathon Noncontrolling Interest 174,135 Net Assets Acquired $ 182,855 Removal of preexisting ownership interest $ (88,426 ) Pretax gain on derecognition of preexisting ownership interest $ 36,286 Asset and liability account balances in the opening balance sheet above include the previously consolidated TADE investment balances at carryover basis. The $2.7 million of goodwill recognized is primarily attributable to expected synergies and the assembled workforce of TAMH. None of the goodwill is expected to be deductible for income tax purposes. The fair value in the opening balance sheet of the 49.9% noncontrolling interest in TAMH was estimated to be $174.1 million . The fair value was estimated based on 49.9% of the total equity value of TAMH based on the transaction price for the 50.1% stake in TAMH, considering the consideration transferred noted above. Pro Forma Financial Information (Unaudited) The summary pro forma financial information for the periods presented below gives effect to the TAMH acquisition as if it had occurred at January 1, 2019. Three months ended March 31, (in thousands) 2020 2019 Net sales $ 1,853,105 $ 2,031,510 Net income (51,111 ) (15,228 ) Pro forma net income was also adjusted to account for the tax effects of the pro forma adjustments noted above using a statutory tax rate of 25% . The pro forma amounts for net income above have been adjusted to reflect additional depreciation and amortization that would have been charged assuming the fair value adjustments to Property, plant and equipment had been applied on January 1, 2019 related to the TAMH merger. Pro forma financial information is not necessarily indicative of the Company's actual results of operations if the acquisition had been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost savings that the Company believes are achievable. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill During the quarter the Company completed a reorganization of its organization and internal structure whereby the Company reorganized its operations between the Trade and Ethanol segments to enhance operating decisions and assessing performance. On January 1, 2020, the Company moved its Distillers Dried Grains ("DDG") business from the Trade to Ethanol segment. The reorganization resulted in the reassignment of goodwill to the affected reporting units using a relative fair value approach. As a result of the reassignment and allocation, the Company performed an interim review of the carrying value of goodwill at the Trade and Ethanol segments for possible impairment on both a pre and post-reorganization basis. No impairment of goodwill was indicated at the pre-reorganization reporting units. The changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2020 are as follows: (in thousands) Trade Ethanol Plant Nutrient Rail Total Balance as of January 1, 2020 $ 127,781 $ 2,726 $ 686 $ 4,167 $ 135,360 Reorganization (a) (5,714 ) 5,714 — — — Balance as of March 31, 2020 $ 122,067 $ 8,440 $ 686 $ 4,167 $ 135,360 (a) Reorganization related to move of the DDG business line from the Trade to Ethanol segment. Due to the severe decline in ethanol prices, largely impacted by COVID-19 during the period, management determined that a triggering event occurred within the Ethanol segment. Accordingly, an interim impairment test was performed over the Ethanol group's goodwill as well as its other intangible and long-lived assets. Based on the results of the impairment test, the Ethanol segment did not record an impairment charge. When performing our test for impairment, we measured each reporting unit's fair value using a combination of income and market approaches. The income approach calculates the fair value of the reporting unit based on a discounted cash flow analysis, incorporating the weighted average cost of capital of a hypothetical third-party buyer. Significant estimates in the income approach include the following: discount rate, expected financial outlook and profitability of the reporting unit's business (all Level 3 inputs in the fair value hierarchy). Discount rates use the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. The market approach uses the "Guideline Company" method, which calculates the fair value of the reporting unit based on a comparison of the reporting unit to comparable publicly traded companies. Significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, assessing comparable multiples, as well as consideration of control premiums. The blended approach assigns an equal weighting to each approach. The blended fair value of both approaches is then compared to the carrying value, and to the extent that fair value exceeds the carrying value, no impairment exists. However, to the extent the carrying value exceeds the fair value, an impairment is recorded. The results of the goodwill impairment test within the Ethanol group supported the calculated fair value exceeding the carrying values by greater than 20%. However, as the fair value is highly sensitive to changes in assumptions, including interest rates and outlook for future volume and margins, general trends in the business and/or macro-economic factors could cause the estimated fair value of the reporting unit to fall below its carrying value. |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . The FASB issued subsequent amendments to the initial guidance in November 2018, April 2019 and May 2019 with ASU 2018-19, ASU 2019-04 and ASU 2019-05, respectively. 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. Effective January 1, 2020, we adopted ASU 2016-13 using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The impact of adopting this new standard on the Condensed Consolidated Financial Statements was not material. Cloud Computing Software In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . This ASU reduces the complexity of accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The guidance is effective for fiscal years beginning after December 15, 2019. The adoption of this standard effective January 1, 2020 on the consolidated financial statements is not material. Reference Rate Reform (Topic 848) In March 2020, the FASB concluded its reference rate reform project and issued ASU 2020-04, Reference Rate Reform (Topic 848) . London Interbank Offered Rate (LIBOR) is a benchmark interest rate referenced in a variety of agreements that are used by all types of entities. At the end of 2021, banks will no longer be required to report information that is used to determine LIBOR. As a result, LIBOR could be discontinued. Other interest rates used globally could also be discontinued for similar reasons. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The optional amendments are effective for all entities as of March 12, 2020, through December 31, 2022. The Company has elected to adopt ASU 2020-04 immediately for all optional expedients provided for contract modification accounting as permissible under the standard. The impact of executing the standard should the need arise will be disclosed, however, at this time there has been no impact to our consolidated financial statements. Recent Accounting Guidance Issued Not Yet Effective Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The provisions of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The impact of this update on our consolidated financial statements is currently being assessed. At this time the Company does not plan to early adopt the standard. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net [Abstract] | |
Classes of inventories | Major classes of inventories are as follows: (in thousands) March 31, December 31, March 31, Grain and other agricultural products $ 750,281 $ 907,482 $ 812,361 Frac sand and propane 5,723 15,438 8,172 Ethanol and co-products 87,706 95,432 16,302 Plant nutrients and cob products 178,028 146,164 183,886 Railcar repair parts 6,338 6,020 5,744 Total Inventories $ 1,028,076 $ 1,170,536 $ 1,026,465 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | The components of Property, plant and equipment, net are as follows: (in thousands) March 31, December 31, March 31, Land $ 40,336 $ 40,442 $ 39,552 Land improvements and leasehold improvements 95,327 103,148 82,681 Buildings and storage facilities 381,258 373,961 337,631 Machinery and equipment 861,812 835,156 481,454 Construction in progress 41,824 59,993 151,895 1,420,557 1,412,700 1,093,213 Less: accumulated depreciation 498,972 474,282 421,408 Property, plant and equipment, net $ 921,585 $ 938,418 $ 671,805 |
Components of railcar assets leased to others | The components of Rail Group assets leased to others are as follows: (in thousands) March 31, December 31, March 31, Rail Group assets leased to others $ 740,809 $ 723,004 $ 660,747 Less: accumulated depreciation 143,740 138,706 123,118 Rail Group assets, net $ 597,069 $ 584,298 $ 537,629 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Debt | Short-term and long-term debt at March 31, 2020 , December 31, 2019 and March 31, 2019 consisted of the following: (in thousands) March 31, December 31, March 31, Short-term Debt – Non-Recourse $ 83,791 $ 54,029 $ 97,304 Short-term Debt – Recourse 308,659 93,002 337,000 Total Short-term Debt $ 392,450 $ 147,031 $ 434,304 Current Maturities of Long-term Debt – Non-Recourse $ 5,212 $ 9,545 $ 7,793 Current Maturities of Long-term Debt – Recourse 75,546 53,354 47,367 Total Current Maturities of Long-term Debt $ 80,758 $ 62,899 $ 55,160 Long-term Debt, Less: Current Maturities – Non-Recourse $ 329,462 $ 330,251 $ 177,955 Long-term Debt, Less: Current Maturities – Recourse 658,064 685,997 804,070 Total Long-term Debt, Less: Current Maturities $ 987,526 $ 1,016,248 $ 982,025 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 December 31, 2019 March 31, 2019 (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 Cash collateral paid $ 22,855 $ — $ 56,005 $ — $ 21,751 $ — Fair value of derivatives 20,977 — (10,323 ) — 38,580 — Balance at end of period $ 43,832 $ — $ 45,682 $ — $ 60,331 $ — |
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: March 31, 2020 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 164,700 $ 3,240 $ 9,648 $ 142 $ 177,730 Commodity derivative liabilities (38,485 ) (119 ) (100,139 ) (2,667 ) (141,410 ) Cash collateral paid 22,855 — — — 22,855 Balance sheet line item totals $ 149,070 $ 3,121 $ (90,491 ) $ (2,525 ) $ 59,175 December 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 92,429 $ 1,045 $ 7,439 $ 18 $ 100,931 Commodity derivative liabilities (40,571 ) (96 ) (54,381 ) (523 ) (95,571 ) Cash collateral paid 56,005 — — — 56,005 Balance sheet line item totals $ 107,863 $ 949 $ (46,942 ) $ (505 ) $ 61,365 March 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 142,262 $ 3,781 $ 665 $ 93 $ 146,801 Commodity derivative liabilities (5,736 ) (24 ) (67,288 ) (3,914 ) (76,962 ) Cash collateral paid 21,751 — — — 21,751 Balance sheet line item totals $ 158,277 $ 3,757 $ (66,623 ) $ (3,821 ) $ 91,590 |
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 March 31, 2020 , December 31, 2019 and March 31, 2019 : March 31, 2020 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 555,782 — — — Soybeans 33,950 — — — Wheat 92,374 — — — Oats 56,582 — — — Ethanol — 103,252 — — Corn oil — — 6,275 — Other 18,734 1,500 296 2,010 Subtotal 757,422 104,752 6,571 2,010 Exchange traded: Corn 165,295 — — — Soybeans 37,875 — — — Wheat 59,135 — — — Oats 1,490 — — — Ethanol — 44,440 — — Propane — 11,760 — — Other — 11,970 — 213 Subtotal 263,795 68,170 — 213 Total 1,021,217 172,922 6,571 2,223 December 31, 2019 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 552,359 — — — Soybeans 34,912 — — — Wheat 100,996 — — — Oats 24,700 — — — Ethanol — 116,448 — — Corn oil — — 14,568 — Other 11,363 4,000 305 2,263 Subtotal 724,330 120,448 14,873 2,263 Exchange traded: Corn 221,740 — — — Soybeans 39,145 — — — Wheat 68,171 — — — Oats 2,090 — — — Ethanol — 175,353 — — Propane — 5,166 — — Other — 15 — 232 Subtotal 331,146 180,534 — 232 Total 1,055,476 300,982 14,873 2,495 March 31, 2019 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 624,612 — — — Soybeans 42,859 — — — Wheat 118,909 — — — Oats 26,361 — — — Ethanol — 233,420 — — Corn oil — — 6,733 — Other 5,574 2,032 6 2,508 Subtotal 818,315 235,452 6,739 2,508 Exchange traded: Corn 197,210 — — — Soybeans 47,860 — — — Wheat 103,955 — — — Oats 770 — — — Ethanol — 110,758 — — Gasoline — 12,936 — — Propane — 14,784 — — Other 2 — — 205 Subtotal 349,797 138,478 — 205 Total 1,168,112 373,930 6,739 2,713 |
Company's Condensed Consolidated Statement of Income gains and location of line items | The net pretax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line item in which they are located for the three and three months ended March 31, 2020 and 2019 are as follows: Three months ended March 31, (in thousands) 2020 2019 Gains on commodity derivatives included in cost of sales and merchandising revenues $ 30,960 $ 66,419 The recording of derivatives gains and losses and the financial statement line in which they are located are as follows: Three months ended March 31, (in thousands) 2020 2019 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest income (expense), net $ (784 ) $ (990 ) Foreign currency derivative gains (losses) included in Other income (loss), net $ — $ (1,467 ) Derivatives designated as hedging instruments Interest rate derivative gains (losses) included in Other Comprehensive Income (Loss) $ (18,182 ) $ (4,991 ) Interest rate derivatives gains (losses) included in Interest income (expense), net $ (1,290 ) $ 165 |
Schedule of Fair Value of Interest Rate Derivative Liabilities | At March 31, 2020 , December 31, 2019 and March 31, 2019 , the Company had recorded the following amounts for the fair value of the Company's other derivatives: (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 Derivatives not designated as hedging instruments Interest rate contracts included in Other long-term liabilities $ (1,913 ) $ (1,007 ) $ (4,494 ) Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) $ 440 $ 2,742 $ (344 ) Derivatives designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ (8,081 ) $ (3,118 ) $ — Interest rate contracts included in Other long-term assets (Other long-term liabilities) $ (22,620 ) $ (9,382 ) $ (4,552 ) |
Schedule of Outstanding Interest Rate Derivatives | Outstanding interest rate derivatives, as of March 31, 2020 , are as follows: Interest Rate Hedging Instrument Year Entered Year of Maturity Initial Notional Amount (in millions) Description Interest Rate Long-term Swap 2014 2023 $ 23.0 Interest rate component of debt - not accounted for as a hedge 1.9% Collar 2016 2021 $ 40.0 Interest rate component of debt - not accounted for as a hedge 3.5% to 4.8% Swap 2017 2022 $ 20.0 Interest rate component of debt - accounted for as a hedge 1.8% Swap 2018 2023 $ 10.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2025 $ 20.0 Interest rate component of debt - accounted for as a hedge 2.7% Swap 2018 2021 $ 40.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2019 2021 $ 25.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2021 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 100.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.8% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.7% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Breakdown of Revenues between ASC 606 | The breakdown of revenues between ASC 606 and other standards is as follows: Three months ended March 31, (in thousands) 2020 2019 Revenues under ASC 606 $ 347,502 $ 315,172 Revenues under ASC 842 25,551 28,868 Revenues under ASC 815 1,480,052 1,632,752 Total Revenues $ 1,853,105 $ 1,976,792 |
Schedule of Disaggregation of Revenues | The following tables disaggregate revenues under ASC 606 by major product/service line for the three months ended March 31, 2020 and 2019 , respectively: Three months ended March 31, 2020 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ — $ — $ 73,231 $ — $ 73,231 Primary nutrients — — 45,690 — 45,690 Services 1,686 — 182 8,736 10,604 Ethanol products and co-products 53,165 101,698 — — 154,863 Frac sand and propane 49,875 — — — 49,875 Other 3,989 616 5,810 2,824 13,239 Total $ 108,715 $ 102,314 $ 124,913 $ 11,560 $ 347,502 Three months ended March 31, 2019 (in thousands) Trade Ethanol Plant Nutrient Rail Total Specialty nutrients $ 3,938 $ — $ 68,400 $ — $ 72,338 Primary nutrients 427 — 53,089 — 53,516 Service 825 3,436 162 9,947 14,370 Ethanol products and co-products 62,758 21,472 — — 84,230 Frac sand and propane 80,463 — — — 80,463 Other 1,157 — 6,874 2,224 10,255 Total $ 149,568 $ 24,908 $ 128,525 $ 12,171 $ 315,172 |
Schedule of Opening and Closing Balances of Company's Contract Assets and Liabilities |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 : Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) Three months ended March 31, 2020 (in thousands) Cash Flow Hedges Foreign Currency Translation Adjustment Investment in Convertible Preferred Securities Defined Benefit Plan Items Total Beginning Balance $ (9,443 ) $ 1,065 $ 258 $ 889 $ (7,231 ) Other comprehensive loss before reclassifications (14,390 ) (6,639 ) — 55 $ (20,974 ) Amounts reclassified from accumulated other comprehensive income (loss) 727 — — (171 ) $ 556 Net current-period other comprehensive income (loss) (13,663 ) (6,639 ) — (116 ) (20,418 ) Ending balance $ (23,106 ) $ (5,574 ) $ 258 $ 773 $ (27,649 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a) (in thousands) Three months ended March 31, 2020 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 Defined Benefit Plan Items Amortization of prior-service cost $ (228 ) (b) (228 ) Total before tax 57 Income tax provision (benefit) $ (171 ) Net of tax Cash Flow Hedges Interest payments $ 969 Interest expense 969 Total before tax (242 ) Income tax provision $ 727 Net of tax Total reclassifications for the period $ 556 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | (in thousands, except per common share data) Three months ended March 31, 2020 2019 Net loss attributable to The Andersons, Inc. $ (37,662 ) $ (13,993 ) Earnings per share – basic: Weighted average shares outstanding – basic 32,821 32,501 Earnings per common share – basic $ (1.15 ) $ (0.43 ) Earnings per share – diluted: Weighted average shares outstanding – basic 32,821 32,501 Effect of dilutive awards — — Weighted average shares outstanding – diluted 32,821 32,501 Earnings per common share – diluted $ (1.15 ) $ (0.43 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , December 31, 2019 and March 31, 2019 : (in thousands) March 31, 2020 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 43,832 $ 15,343 $ — $ 59,175 Provisionally priced contracts (b) (94,834 ) (51,061 ) — (145,895 ) Convertible preferred securities (c) — — 8,654 8,654 Other assets and liabilities (d) 5,373 (32,614 ) — (27,241 ) Total $ (45,629 ) $ (68,332 ) $ 8,654 $ (105,307 ) (in thousands) December 31, 2019 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 45,682 $ 15,683 $ — $ 61,365 Provisionally priced contracts (b) (118,414 ) (68,237 ) — (186,651 ) Convertible preferred securities (c) — — 8,404 8,404 Other assets and liabilities (d) 9,469 (13,507 ) — (4,038 ) Total $ (63,263 ) $ (66,061 ) $ 8,404 $ (120,920 ) (in thousands) March 31, 2019 Assets (liabilities) Level 1 Level 2 Level 3 Total Commodity derivatives, net (a) $ 60,331 $ 31,259 $ — $ 91,590 Provisionally priced contracts (b) (48,430 ) (49,393 ) — (97,823 ) Convertible preferred securities (c) — — 7,404 7,404 Other assets and liabilities (d) 5,772 (4,494 ) — 1,278 Total $ 17,673 $ (22,628 ) $ 7,404 $ 2,449 |
Beginning and ending balances for the Company's fair value measurements using Level 3 inputs | A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: Convertible Preferred Securities (in thousands) 2020 2019 Assets (liabilities) at January 1, $ 8,404 $ 7,154 Additional Investments 250 250 Assets (liabilities) at March 31, $ 8,654 $ 7,404 |
Fair Value Inputs, Assets, Quantitative Information | The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of March 31, 2020 , December 31, 2019 and March 31, 2019 : Quantitative Information about Recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of March 31, 2020 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,654 Implied based on market prices N/A N/A (in thousands) Fair Value as of December 31, 2019 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 8,404 Implied based on market prices N/A N/A (in thousands) Fair Value as of March 31, 2019 Valuation Method Unobservable Input Weighted Average Convertible preferred securities (a) $ 7,404 Implied based on market prices N/A N/A (a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points. Quantitative Information about Non-recurring Level 3 Fair Value Measurements (in thousands) Fair Value as of December 31, 2019 Valuation Method Unobservable Input Weighted Average Frac sand assets (a) $ 16,546 Third party appraisal Various N/A Real property (b) 608 Market approach Various N/A Equity method investment (c) 12,424 Discounted cash flow analysis Various N/A (a) The Company recognized impairment charges on long lived related to its frac sand business. The fair value of the assets were determined using prior transactions and third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis. (b) The Company recognized impairment charges on certain Trade assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets were determined using prior transactions in the local market and a recent sale of comparable Trade group assets held by the Company. (c) The Company recorded an other-than-temporary impairment charge on an existing equity method investment. The fair value of the investment was determined using a discounted cash flow analysis. There were no non-recurring fair value measurements as of March 31, 2020 and March 31, 2019 . |
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) March 31, December 31, March 31, Fair value of long-term debt, including current maturities $ 1,113,042 $ 1,096,010 $ 1,043,503 Fair value in excess of carrying value (a) 36,461 8,257 2,318 (a) Carrying value used for this purpose excludes unamortized debt issuance costs. |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following table sets forth the related party transactions entered into for the time periods presented: Three months ended March 31, (in thousands) 2020 2019 Sales revenues $ 54,694 $ 61,168 Service fee revenues (a) — 4,112 Purchases of product and capital assets 15,577 169,229 Lease income (b) 147 1,014 Labor and benefits reimbursement (c) — 3,857 (a) Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. These revenues are now eliminated in consolidation as a result of the TAMH merger. (b) Lease income includes certain railcars leased to related parties and the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities from the prior period and are now eliminated in consolidation as a result of the TAMH merger. (c) Prior to the TAMH merger the Company provided all operations labor to the unconsolidated ethanol LLCs and charged them an amount equal to the Company's costs of the related services for the prior periods. (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 Accounts receivable (d) $ 6,586 $ 10,603 $ 20,134 Accounts payable (e) 6,364 12,303 24,644 (d) Accounts receivable represents amounts due from related parties for the sale of ethanol and other various items. (e) Accounts payable represents amounts due to related parties for purchases of ethanol equipment and other various items. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. 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 revenue. Three months ended March 31, (in thousands) 2020 2019 Revenues from external customers Trade $ 1,378,040 $ 1,537,686 Ethanol 313,039 269,166 Plant Nutrient 124,913 128,525 Rail 37,113 41,415 Total $ 1,853,105 $ 1,976,792 Three months ended March 31, (in thousands) 2020 2019 Inter-segment sales Trade $ 609 $ 181 Plant Nutrient 887 20 Rail 1,605 1,275 Total $ 3,101 $ 1,476 Three months ended March 31, (in thousands) 2020 2019 Income (loss) before income taxes, net of noncontrolling interest Trade $ (9,983 ) $ (17,903 ) Ethanol (23,976 ) 3,011 Plant Nutrient (1,192 ) (3,929 ) Rail 1,007 4,312 Other (4,982 ) (4,926 ) Income (loss) before income taxes, net of noncontrolling interest (39,126 ) (19,435 ) Noncontrolling interests (13,449 ) (155 ) Income (loss) before income taxes $ (52,575 ) $ (19,590 ) (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 Identifiable assets Trade $ 1,878,812 $ 2,012,060 $ 2,116,254 Ethanol 653,928 690,548 333,060 Plant Nutrient 434,512 383,781 455,529 Rail 658,271 693,931 642,596 Other 127,168 120,421 112,813 Total $ 3,752,691 $ 3,900,741 $ 3,660,252 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow Supplemental Information | Certain supplemental cash flow information, including noncash investing and financing activities for the three months ended March 31, 2020 and 2019 are as follows: Three months ended March 31, (in thousands) 2020 2019 Supplemental disclosure of cash flow information Interest paid $ 16,180 $ 16,711 Noncash investing and financing activity Dividends declared not yet paid 5,748 5,527 Capital projects incurred but not yet paid 8,459 15,974 Equity issued in conjunction with acquisition — 123,146 Removal of pre-existing equity method investment — (159,459 ) Purchase price holdback/ other accrued liabilities — 31,518 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The purchase price allocation is preliminary, pending, finalization of deferred income taxes adjustments. A summarized preliminary purchase price allocation is as follows: (in thousands) Non-cash consideration $ 7,318 Investments contributed at fair value 124,662 Investment contributed at cost 50,875 Total purchase price consideration $ 182,855 |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation at October 1, 2019, is as follows: (in thousands) Cash and cash equivalents $ 47,042 Accounts receivable 12,175 Inventories 31,765 Other current assets 2,638 Goodwill 2,726 Right of use asset 5,200 Other assets, net 861 Property, plant and equipment, net 321,380 423,787 Trade and other payables 13,461 Accrued expense and other current liabilities 3,011 Other long-term liabilities 209 Long-term lease liabilities 2,230 Long-term debt, including current maturities 47,886 66,797 Marathon Noncontrolling Interest 174,135 Net Assets Acquired $ 182,855 Removal of preexisting ownership interest $ (88,426 ) Pretax gain on derecognition of preexisting ownership interest $ 36,286 |
Schedule of Pro Forma Financial Information | The summary pro forma financial information for the periods presented below gives effect to the TAMH acquisition as if it had occurred at January 1, 2019. Three months ended March 31, (in thousands) 2020 2019 Net sales $ 1,853,105 $ 2,031,510 Net income (51,111 ) (15,228 ) |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 are as follows: (in thousands) Trade Ethanol Plant Nutrient Rail Total Balance as of January 1, 2020 $ 127,781 $ 2,726 $ 686 $ 4,167 $ 135,360 Reorganization (a) (5,714 ) 5,714 — — — Balance as of March 31, 2020 $ 122,067 $ 8,440 $ 686 $ 4,167 $ 135,360 (a) Reorganization related to move of the DDG business line from the Trade to Ethanol segment. |
Inventories (Details)
Inventories (Details) $ in Thousands, bu in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)bu | Mar. 31, 2019USD ($)bu | Dec. 31, 2019USD ($)bu | |
Inventory [Line Items] | |||
Grain and other agricultural products | $ 750,281 | $ 812,361 | $ 907,482 |
Frac sand and propane | 5,723 | 8,172 | 15,438 |
Ethanol and co-products | 87,706 | 16,302 | 95,432 |
Plant nutrients and cob products | 178,028 | 183,886 | 146,164 |
Railcar repair parts | 6,338 | 5,744 | 6,020 |
Total inventories | $ 1,028,076 | $ 1,026,465 | $ 1,170,536 |
Bushels of grain held in storage for others and excluded from inventory calculations | bu | 3.9 | 1.9 | 6.4 |
Inventory write down | $ 10,571 | $ 0 | |
COVID-19 Pandemic | |||
Inventory [Line Items] | |||
Inventory write down | $ 10,600 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Components of property, plant and equipment | |||
Land | $ 40,336 | $ 40,442 | $ 39,552 |
Land improvements and leasehold improvements | 95,327 | 103,148 | 82,681 |
Buildings and storage facilities | 381,258 | 373,961 | 337,631 |
Machinery and equipment | 861,812 | 835,156 | 481,454 |
Construction in progress | 41,824 | 59,993 | 151,895 |
Property, plant and equipment, gross | 1,420,557 | 1,412,700 | 1,093,213 |
Less: accumulated depreciation | 498,972 | 474,282 | 421,408 |
Property, plant and equipment, net | $ 921,585 | $ 938,418 | $ 671,805 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 31 | $ 17.9 |
Rail | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense on railcar assets leased to others | $ 7.7 | $ 6.7 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Rail Group Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Components of Railcar assets leased to others | |||
Rail Group assets leased to others, gross | $ 740,809 | $ 723,004 | $ 660,747 |
Less: accumulated depreciation | 143,740 | 138,706 | 123,118 |
Railcar assets leased to others, net | $ 597,069 | $ 584,298 | $ 537,629 |
Debt (Details)
Debt (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | |||
Short-term debt | $ 392,450,000 | $ 147,031,000 | $ 434,304,000 |
Long-term debt | |||
Current maturities of long-term debt | 80,758,000 | 62,899,000 | 55,160,000 |
Total Current Maturities of Long-term Debt | 80,758,000 | 62,899,000 | 55,160,000 |
Long-term debt, less current maturities | 987,526,000 | 1,016,248,000 | 982,025,000 |
Total Long-term Debt, Less: Current Maturities | 987,526,000 | 1,016,248,000 | 982,025,000 |
Nonrecourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 83,791,000 | 54,029,000 | 97,304,000 |
Long-term debt | |||
Current maturities of long-term debt | 5,212,000 | 9,545,000 | 7,793,000 |
Long-term debt, less current maturities | 658,064,000 | 685,997,000 | 804,070,000 |
Recourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 308,659,000 | 93,002,000 | 337,000,000 |
Long-term debt | |||
Current maturities of long-term debt | 75,546,000 | 53,354,000 | 47,367,000 |
Long-term debt, less current maturities | 329,462,000 | $ 330,251,000 | $ 177,955,000 |
Line of credit | |||
Long-term debt | |||
Credit facility, maximum borrowing capacity | 1,684,000,000 | ||
Total available for borrowings under lines of credit | $ 1,006,400,000 |
Debt (Textual) (Details)
Debt (Textual) (Details) - Line of credit | Mar. 31, 2020USD ($) |
Line of Credit Facility [Line Items] | |
Credit facility, maximum borrowing capacity | $ 1,684,000,000 |
Total available for borrowings under lines of credit | $ 1,006,400,000 |
Derivatives (Textual) (Details)
Derivatives (Textual) (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative [Line Items] | |
Maximum period in which contracts for the sale of grain to processors or other consumers extend (years) | 1 year |
Derivatives (Net Asset or Liabi
Derivatives (Net Asset or Liability Positions in Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | |||
Net derivative asset position, Collateral paid (received) | $ 22,855 | $ 56,005 | $ 21,751 |
Net derivative asset position, Fair value of derivatives | 20,977 | (10,323) | 38,580 |
Net derivative asset position, net | 43,832 | 45,682 | 60,331 |
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 (Gross Current and
Derivatives (Gross Current and Noncurrent Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | $ 20,977 | $ (10,323) | $ 38,580 |
Commodity derivative liabilities | 0 | 0 | 0 |
Commodity derivative assets - current | 149,070 | 107,863 | 158,277 |
Commodity derivative liabilities - current | (90,491) | (46,942) | (66,623) |
Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 177,730 | 100,931 | 146,801 |
Commodity derivative liabilities | (141,410) | (95,571) | (76,962) |
Cash collateral paid | 22,855 | 56,005 | |
Cash collateral paid | 21,751 | ||
Total | 59,175 | 61,365 | 91,590 |
Commodity | Commodity Derivative Assets - Current | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 164,700 | 92,429 | 142,262 |
Commodity derivative liabilities | (38,485) | (40,571) | (5,736) |
Cash collateral paid | 22,855 | 56,005 | |
Cash collateral paid | 21,751 | ||
Commodity derivative assets - current | 149,070 | 107,863 | 158,277 |
Commodity | Commodity Derivative Assets - Noncurrent | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 3,240 | 1,045 | 3,781 |
Commodity derivative liabilities | (119) | (96) | (24) |
Cash collateral paid | 0 | 0 | |
Cash collateral paid | 0 | ||
Commodity derivative assets - noncurrent | 3,121 | 949 | 3,757 |
Commodity | Commodity Derivative Liabilities - Current | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 9,648 | 7,439 | 665 |
Commodity derivative liabilities | (100,139) | (54,381) | (67,288) |
Cash collateral paid | 0 | 0 | |
Cash collateral paid | 0 | ||
Commodity derivative liabilities - current | (90,491) | (46,942) | (66,623) |
Commodity | Commodity Derivative Liabilities - Noncurrent | |||
Derivatives, Fair Value [Line Items] | |||
Commodity derivative assets | 142 | 18 | 93 |
Commodity derivative liabilities | (2,667) | (523) | (3,914) |
Cash collateral paid | 0 | 0 | |
Cash collateral paid | 0 | ||
Commodity derivative liabilities - noncurrent | $ (2,525) | $ (505) | $ (3,821) |
Derivatives (Pre-tax Gains and
Derivatives (Pre-tax Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commodity | Cost of sales and merchandising revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives instruments recognized in earnings | $ 30,960 | $ 66,419 |
Not Designated as Hedging Instrument | Interest rate contracts | Operating, administrative and general expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives instruments recognized in earnings | (784) | (990) |
Not Designated as Hedging Instrument | Foreign currency contract | Other Income, Net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives instruments recognized in earnings | 0 | (1,467) |
Designated as Hedging Instrument | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate derivative gains (losses) included in Other Comprehensive Income (Loss) | (18,182) | (4,991) |
Designated as Hedging Instrument | Interest rate contracts | Operating, administrative and general expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate derivatives gains (losses) included in Interest income (expense), net | $ (1,290) | $ 165 |
Derivatives (Volume of Contract
Derivatives (Volume of Contracts Outstanding) (Details) lb in Thousands, gal in Thousands, bu in Thousands, T in Thousands | Mar. 31, 2020lb | Mar. 31, 2020bu | Mar. 31, 2020T | Mar. 31, 2020gal | Dec. 31, 2019lb | Dec. 31, 2019bu | Dec. 31, 2019T | Dec. 31, 2019gal | Mar. 31, 2019lb | Mar. 31, 2019bu | Mar. 31, 2019T | Mar. 31, 2019gal |
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 6,571 | 1,021,217 | 2,223 | 172,922 | 14,873 | 1,055,476 | 2,495 | 300,982 | 6,739 | 1,168,112 | 2,713 | 373,930 |
Non-exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 6,571 | 757,422 | 2,010 | 104,752 | 14,873 | 724,330 | 2,263 | 120,448 | 6,739 | 818,315 | 2,508 | 235,452 |
Non-exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 555,782 | 0 | 0 | 0 | 552,359 | 0 | 0 | 0 | 624,612 | 0 | 0 |
Non-exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 33,950 | 0 | 0 | 0 | 34,912 | 0 | 0 | 0 | 42,859 | 0 | 0 |
Non-exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 92,374 | 0 | 0 | 0 | 100,996 | 0 | 0 | 0 | 118,909 | 0 | 0 |
Non-exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 56,582 | 0 | 0 | 0 | 24,700 | 0 | 0 | 0 | 26,361 | 0 | 0 |
Non-exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 103,252 | 0 | 0 | 0 | 116,448 | 0 | 0 | 0 | 233,420 |
Non-exchange Traded | Corn oil | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 6,275 | 0 | 0 | 0 | 14,568 | 0 | 0 | 0 | 6,733 | 0 | 0 | 0 |
Non-exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 296 | 18,734 | 2,010 | 1,500 | 305 | 11,363 | 2,263 | 4,000 | 6 | 5,574 | 2,508 | 2,032 |
Exchange Traded | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 263,795 | 213 | 68,170 | 0 | 331,146 | 232 | 180,534 | 0 | 349,797 | 205 | 138,478 |
Exchange Traded | Corn | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 165,295 | 0 | 0 | 0 | 221,740 | 0 | 0 | 0 | 197,210 | 0 | 0 |
Exchange Traded | Soybeans | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 37,875 | 0 | 0 | 0 | 39,145 | 0 | 0 | 0 | 47,860 | 0 | 0 |
Exchange Traded | Wheat | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 59,135 | 0 | 0 | 0 | 68,171 | 0 | 0 | 0 | 103,955 | 0 | 0 |
Exchange Traded | Oats | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 1,490 | 0 | 0 | 0 | 2,090 | 0 | 0 | 0 | 770 | 0 | 0 |
Exchange Traded | Ethanol | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 44,440 | 0 | 0 | 0 | 175,353 | 0 | 0 | 0 | 110,758 |
Exchange Traded | Natural Gas Liquids [Member] | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 12,936 | ||||||||
Exchange Traded | Propane | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 0 | 11,760 | 0 | 0 | 0 | 5,166 | 0 | 0 | 0 | 14,784 |
Exchange Traded | Other | ||||||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||||||
Nonmonetary notional amount | 0 | 0 | 213 | 11,970 | 0 | 0 | 232 | 15 | 0 | 2 | 205 | 0 |
Derivatives (Fair Value of the
Derivatives (Fair Value of the Company's Other Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Not Designated as Hedging Instrument | Other long term liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | $ (1,913) | $ (1,007) | $ (4,494) |
Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | Foreign currency contract | |||
Derivative [Line Items] | |||
Derivative liabilities | 440 | 2,742 | (344) |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative liabilities | (8,081) | (3,118) | 0 |
Designated as Hedging Instrument | Other assets | Interest rate contracts | |||
Derivative [Line Items] | |||
Derivative assets | $ (22,620) | $ (9,382) | $ (4,552) |
Derivatives (Outstanding Intere
Derivatives (Outstanding Interest Rate Derivatives) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives The Company’s operating results are affected by changes to commodity prices. The Trade 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 purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. These contracts are primarily traded via regulated commodity exchanges. The Company’s forward purchase and sales contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Most contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year . Most of these contracts meet the definition of derivatives. While the Company considers its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges as defined under current accounting standards. The Company primarily accounts for its commodity derivatives at estimated fair value. The estimated fair value of the commodity derivative contracts that require the receipt or posting of cash collateral is recorded on a net basis (offset against cash collateral posted or received, also known as margin deposits) within commodity derivative assets or liabilities. Management determines fair value based on exchange-quoted prices and in the case of its forward purchase and sale contracts, estimated fair value is adjusted for differences in local markets and non-performance risk. For contracts for which physical delivery occurs, balance sheet classification is based on estimated delivery date. For futures, options and over-the-counter contracts in which physical delivery is not expected to occur but, rather, the contract is expected to be net settled, the Company classifies these contracts as current or noncurrent assets or liabilities, as appropriate, based on the Company’s expectations as to when such contracts will be settled. Realized and unrealized gains and losses in the value of commodity contracts (whether due to changes in commodity prices, changes in performance or credit risk, or due to sale, maturity or extinguishment of the commodity contract) and 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 future, option or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a future, option or an over-the-counter contract moves in a direction that is adverse to the Company’s position, an additional margin deposit, called a maintenance margin, is required. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Condensed Consolidated Balance Sheets. The following table presents at March 31, 2020 , December 31, 2019 and March 31, 2019 , 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: March 31, 2020 December 31, 2019 March 31, 2019 (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 Cash collateral paid $ 22,855 $ — $ 56,005 $ — $ 21,751 $ — Fair value of derivatives 20,977 — (10,323 ) — 38,580 — Balance at end of period $ 43,832 $ — $ 45,682 $ — $ 60,331 $ — The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities: March 31, 2020 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 164,700 $ 3,240 $ 9,648 $ 142 $ 177,730 Commodity derivative liabilities (38,485 ) (119 ) (100,139 ) (2,667 ) (141,410 ) Cash collateral paid 22,855 — — — 22,855 Balance sheet line item totals $ 149,070 $ 3,121 $ (90,491 ) $ (2,525 ) $ 59,175 December 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 92,429 $ 1,045 $ 7,439 $ 18 $ 100,931 Commodity derivative liabilities (40,571 ) (96 ) (54,381 ) (523 ) (95,571 ) Cash collateral paid 56,005 — — — 56,005 Balance sheet line item totals $ 107,863 $ 949 $ (46,942 ) $ (505 ) $ 61,365 March 31, 2019 (in thousands) Commodity Derivative Assets - Current Commodity Derivative Assets - Noncurrent Commodity Derivative Liabilities - Current Commodity Derivative Liabilities - Noncurrent Total Commodity derivative assets $ 142,262 $ 3,781 $ 665 $ 93 $ 146,801 Commodity derivative liabilities (5,736 ) (24 ) (67,288 ) (3,914 ) (76,962 ) Cash collateral paid 21,751 — — — 21,751 Balance sheet line item totals $ 158,277 $ 3,757 $ (66,623 ) $ (3,821 ) $ 91,590 The net pretax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line item in which they are located for the three and three months ended March 31, 2020 and 2019 are as follows: Three months ended March 31, (in thousands) 2020 2019 Gains on commodity derivatives included in cost of sales and merchandising revenues $ 30,960 $ 66,419 The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at March 31, 2020 , December 31, 2019 and March 31, 2019 : March 31, 2020 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 555,782 — — — Soybeans 33,950 — — — Wheat 92,374 — — — Oats 56,582 — — — Ethanol — 103,252 — — Corn oil — — 6,275 — Other 18,734 1,500 296 2,010 Subtotal 757,422 104,752 6,571 2,010 Exchange traded: Corn 165,295 — — — Soybeans 37,875 — — — Wheat 59,135 — — — Oats 1,490 — — — Ethanol — 44,440 — — Propane — 11,760 — — Other — 11,970 — 213 Subtotal 263,795 68,170 — 213 Total 1,021,217 172,922 6,571 2,223 December 31, 2019 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 552,359 — — — Soybeans 34,912 — — — Wheat 100,996 — — — Oats 24,700 — — — Ethanol — 116,448 — — Corn oil — — 14,568 — Other 11,363 4,000 305 2,263 Subtotal 724,330 120,448 14,873 2,263 Exchange traded: Corn 221,740 — — — Soybeans 39,145 — — — Wheat 68,171 — — — Oats 2,090 — — — Ethanol — 175,353 — — Propane — 5,166 — — Other — 15 — 232 Subtotal 331,146 180,534 — 232 Total 1,055,476 300,982 14,873 2,495 March 31, 2019 Commodity (in thousands) Number of Bushels Number of Gallons Number of Pounds Number of Tons Non-exchange traded: Corn 624,612 — — — Soybeans 42,859 — — — Wheat 118,909 — — — Oats 26,361 — — — Ethanol — 233,420 — — Corn oil — — 6,733 — Other 5,574 2,032 6 2,508 Subtotal 818,315 235,452 6,739 2,508 Exchange traded: Corn 197,210 — — — Soybeans 47,860 — — — Wheat 103,955 — — — Oats 770 — — — Ethanol — 110,758 — — Gasoline — 12,936 — — Propane — 14,784 — — Other 2 — — 205 Subtotal 349,797 138,478 — 205 Total 1,168,112 373,930 6,739 2,713 Interest Rate and Other Derivatives The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The gains or losses on the derivatives are recorded in Other Comprehensive Income (Loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. At March 31, 2020 , December 31, 2019 and March 31, 2019 , the Company had recorded the following amounts for the fair value of the Company's other derivatives: (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 Derivatives not designated as hedging instruments Interest rate contracts included in Other long-term liabilities $ (1,913 ) $ (1,007 ) $ (4,494 ) Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) $ 440 $ 2,742 $ (344 ) Derivatives designated as hedging instruments Interest rate contracts included in Accrued expenses and other current liabilities $ (8,081 ) $ (3,118 ) $ — Interest rate contracts included in Other long-term assets (Other long-term liabilities) $ (22,620 ) $ (9,382 ) $ (4,552 ) The recording of derivatives gains and losses and the financial statement line in which they are located are as follows: Three months ended March 31, (in thousands) 2020 2019 Derivatives not designated as hedging instruments Interest rate derivative gains (losses) included in Interest income (expense), net $ (784 ) $ (990 ) Foreign currency derivative gains (losses) included in Other income (loss), net $ — $ (1,467 ) Derivatives designated as hedging instruments Interest rate derivative gains (losses) included in Other Comprehensive Income (Loss) $ (18,182 ) $ (4,991 ) Interest rate derivatives gains (losses) included in Interest income (expense), net $ (1,290 ) $ 165 Outstanding interest rate derivatives, as of March 31, 2020 , are as follows: Interest Rate Hedging Instrument Year Entered Year of Maturity Initial Notional Amount (in millions) Description Interest Rate Long-term Swap 2014 2023 $ 23.0 Interest rate component of debt - not accounted for as a hedge 1.9% Collar 2016 2021 $ 40.0 Interest rate component of debt - not accounted for as a hedge 3.5% to 4.8% Swap 2017 2022 $ 20.0 Interest rate component of debt - accounted for as a hedge 1.8% Swap 2018 2023 $ 10.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2018 2025 $ 20.0 Interest rate component of debt - accounted for as a hedge 2.7% Swap 2018 2021 $ 40.0 Interest rate component of debt - accounted for as a hedge 2.6% Swap 2019 2021 $ 25.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2021 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 100.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2019 2025 $ 50.0 Interest rate component of debt - accounted for as a hedge 2.5% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.8% Swap 2020 2023 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.7% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% Swap 2020 2030 $ 50.0 Interest rate component of debt - accounted for as a hedge 0.0% to 0.8% |
Not Accounted for as Hedge | Long-term | Swap 1.9% | |
Derivative [Line Items] | |
Notional amount | $ 23 |
Interest rate | 1.90% |
Not Accounted for as Hedge | Long-term | Collar 3.5% to 4.8% | |
Derivative [Line Items] | |
Notional amount | $ 40 |
Not Accounted for as Hedge | Long-term | Collar 3.5% to 4.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 3.50% |
Not Accounted for as Hedge | Long-term | Collar 3.5% to 4.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 4.80% |
Not Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0.00% |
Not Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Not Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | Minimum | |
Derivative [Line Items] | |
Interest rate | 0.00% |
Not Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | Maximum | |
Derivative [Line Items] | |
Interest rate | 0.80% |
Accounted for as Hedge | Long-term | Swap 1.8% | |
Derivative [Line Items] | |
Notional amount | $ 20 |
Interest rate | 1.80% |
Accounted for as Hedge | Long-term | Swap 2.6% | |
Derivative [Line Items] | |
Notional amount | $ 10 |
Interest rate | 2.60% |
Accounted for as Hedge | Long-term | Swap 2.7% | |
Derivative [Line Items] | |
Notional amount | $ 20 |
Interest rate | 2.70% |
Accounted for as Hedge | Long-term | Swap 2.6% | |
Derivative [Line Items] | |
Notional amount | $ 40 |
Interest rate | 2.60% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 25 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 100 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 2.5% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 2.50% |
Accounted for as Hedge | Long-term | Swap 0.8% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 0.80% |
Accounted for as Hedge | Long-term | Swap 0.7% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Interest rate | 0.70% |
Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Accounted for as Hedge | Long-term | Swap 0.0% to 0.8% | |
Derivative [Line Items] | |
Notional amount | $ 50 |
Revenue (Breakdown of Revenues
Revenue (Breakdown of Revenues by Accounting Standards) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from contract with customers | $ 347,502 | $ 315,172 |
Total Revenues | 1,853,105 | 1,976,792 |
Revenues under ASC 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from contract with customers | 347,502 | 315,172 |
Revenues under ASC 842 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total Revenues | 25,551 | 28,868 |
Revenues under ASC 815 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total Revenues | $ 1,480,052 | $ 1,632,752 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total | $ 347,502 | $ 315,172 |
Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 73,231 | 72,338 |
Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 45,690 | 53,516 |
Service | ||
Disaggregation of Revenue [Line Items] | ||
Total | 10,604 | 14,370 |
Ethanol products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 154,863 | 84,230 |
Frac sand and propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 49,875 | 80,463 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | 13,239 | 10,255 |
Trade | ||
Disaggregation of Revenue [Line Items] | ||
Total | 108,715 | 149,568 |
Trade | Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 3,938 |
Trade | Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 427 |
Trade | Service | ||
Disaggregation of Revenue [Line Items] | ||
Total | 1,686 | 825 |
Trade | Ethanol products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 53,165 | 62,758 |
Trade | Frac sand and propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 49,875 | 80,463 |
Trade | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | 3,989 | 1,157 |
Ethanol | ||
Disaggregation of Revenue [Line Items] | ||
Total | 102,314 | 24,908 |
Ethanol | Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Ethanol | Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Ethanol | Service | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 3,436 |
Ethanol | Ethanol products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 101,698 | 21,472 |
Ethanol | Frac sand and propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Ethanol | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | 616 | 0 |
Plant Nutrient | ||
Disaggregation of Revenue [Line Items] | ||
Total | 124,913 | 128,525 |
Plant Nutrient | Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 73,231 | 68,400 |
Plant Nutrient | Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 45,690 | 53,089 |
Plant Nutrient | Service | ||
Disaggregation of Revenue [Line Items] | ||
Total | 182 | 162 |
Plant Nutrient | Ethanol products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Plant Nutrient | Frac sand and propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Plant Nutrient | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | 5,810 | 6,874 |
Rail | ||
Disaggregation of Revenue [Line Items] | ||
Total | 11,560 | 12,171 |
Rail | Specialty nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Rail | Primary nutrients | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Rail | Service | ||
Disaggregation of Revenue [Line Items] | ||
Total | 8,736 | 9,947 |
Rail | Ethanol products and co-products | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Rail | Frac sand and propane | ||
Disaggregation of Revenue [Line Items] | ||
Total | 0 | 0 |
Rail | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total | $ 2,824 | $ 2,224 |
Revenue (Textual) (Details)
Revenue (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract Liabilities | $ 65.8 | $ 28.5 | |
Service | Transferred over Time | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customer, percentage of service revenues | 3.00% | 5.00% |
Revenue (Contract Liabilities B
Revenue (Contract Liabilities Balances) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract Liabilities | $ 65.8 | $ 28.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax (benefit) expense | $ (1,464) | $ (5,442) |
Effective income tax rate | (2.80%) | (27.80%) |
Unrecognized tax benefits | $ 25,400 | $ 600 |
Unrecognized tax benefit, reduction of deferred tax asset and refundable credits | 21,700 | |
CARES Act, income tax benefit | $ 6,600 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (After-tax Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 1,195,655 | $ 876,764 | ||
Other comprehensive loss before reclassifications | (20,974) | (2,770) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 556 | 11,631 | ||
Net current-period other comprehensive income (loss) | (20,418) | 8,861 | ||
Ending Balance | 1,113,862 | 998,286 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (7,231) | (6,387) | ||
Ending Balance | (27,649) | 2,474 | ||
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (9,443) | (126) | ||
Other comprehensive loss before reclassifications | (14,390) | (3,758) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 727 | 136 | ||
Net current-period other comprehensive income (loss) | (13,663) | (3,622) | ||
Ending Balance | (23,106) | (3,748) | ||
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 1,065 | (11,550) | ||
Other comprehensive loss before reclassifications | (6,639) | 943 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 11,666 | ||
Net current-period other comprehensive income (loss) | (6,639) | 12,609 | ||
Ending Balance | (5,574) | 1,059 | ||
Investment in Convertible Preferred Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 258 | 258 | ||
Other comprehensive loss before reclassifications | [1] | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | [1] | 0 | |
Net current-period other comprehensive income (loss) | 0 | 0 | ||
Ending Balance | 258 | 258 | ||
Defined Benefit Plan Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 889 | 5,031 | ||
Other comprehensive loss before reclassifications | 55 | 45 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (171) | (171) | ||
Net current-period other comprehensive income (loss) | (116) | (126) | ||
Ending Balance | $ 773 | $ 4,905 | ||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before income taxes | $ (52,575) | $ (19,590) | |
Income tax provision (benefit) | 1,464 | 5,442 | |
Net loss | (51,111) | (14,148) | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | |||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net loss | [1] | 556 | 11,631 |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Defined Benefit Plan Items | |||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of prior-service cost | [1],[2] | (228) | (228) |
Income (loss) before income taxes | [1] | (228) | (228) |
Income tax provision (benefit) | [1] | 57 | 57 |
Net loss | [1] | (171) | (171) |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Cash Flow Hedges | |||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest payments | 969 | 182 | |
Income (loss) before income taxes | [1] | 969 | 182 |
Income tax provision (benefit) | [1] | (242) | (46) |
Net loss | [1] | $ 727 | 136 |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Foreign Currency Translation Adjustment | |||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized loss on pre-existing investment | (11,666) | ||
Income (loss) before income taxes | [1] | 11,666 | |
Income tax provision (benefit) | [1] | 0 | |
Net loss | [1] | $ 11,666 | |
[1] | Amounts in parentheses indicate credits to profit/loss | ||
[2] | This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to The Andersons, Inc. | $ (37,662) | $ (13,993) |
Earnings per share - basic: | ||
Weighted average shares outstanding - basic (shares) | 32,821 | 32,501 |
Earnings per common share - basic (dollars per share) | $ (1.15) | $ (0.43) |
Earnings per share - diluted: | ||
Weighted average shares outstanding - basic (shares) | 32,821 | 32,501 |
Effect of dilutive awards (shares) | 0 | 0 |
Weighted average shares outstanding - diluted (shares) | 32,821 | 32,501 |
Earnings per common share - diluted (dollars per share) | $ (1.15) | $ (0.43) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | $ 59,175 | $ 61,365 | $ 91,590 |
Provisionally price contracts | [2] | (145,895) | (186,651) | (97,823) |
Convertible preferred securities | [3] | 8,654 | 8,404 | 7,404 |
Other assets and liabilities | [4] | (27,241) | (4,038) | 1,278 |
Total | (105,307) | (120,920) | 2,449 | |
Level 1 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | 43,832 | 45,682 | 60,331 |
Provisionally price contracts | [2] | (94,834) | (118,414) | (48,430) |
Convertible preferred securities | [3] | 0 | 0 | 0 |
Other assets and liabilities | [4] | 5,373 | 9,469 | 5,772 |
Total | (45,629) | (63,263) | 17,673 | |
Level 2 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | 15,343 | 15,683 | 31,259 |
Provisionally price contracts | [2] | (51,061) | (68,237) | (49,393) |
Convertible preferred securities | [3] | 0 | 0 | 0 |
Other assets and liabilities | [4] | (32,614) | (13,507) | (4,494) |
Total | (68,332) | (66,061) | (22,628) | |
Level 3 | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Commodity derivatives, net | [1] | 0 | 0 | 0 |
Provisionally price contracts | [2] | 0 | 0 | 0 |
Convertible preferred securities | [3] | 8,654 | 8,404 | 7,404 |
Other assets and liabilities | [4] | 0 | 0 | 0 |
Total | $ 8,654 | $ 8,404 | $ 7,404 | |
[1] | (a) Includes associated cash posted/received as collateral | |||
[2] | (b) Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) | |||
[3] | (c) Recorded in “Other assets, net” on the Company’s Consolidated Balance Sheets related to certain available for sale securities. | |||
[4] | (d) Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1) and interest rate derivatives (Level 2). |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Beginning and Ending Balances of Level 3 Measurements) (Details) - Level 3 - Convertible preferred securities - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Reconciliation of Fair Value Measurements Using Level 3 | |||
Asset (liability), Beginning Balance | $ 8,404 | $ 7,154 | |
Additional investments | 250 | 250 | |
Asset (liability), Ending Balance | 8,654 | 7,404 | |
Fair Value, Recurring [Member] | Implied based on market prices | |||
Reconciliation of Fair Value Measurements Using Level 3 | |||
Asset fair value | $ 8,654 | $ 7,404 | $ 8,404 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Company's Long-term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
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 | $ 1,113,042 | $ 1,096,010 | $ 1,043,503 | |
Fair value in excess of carrying value | [1] | $ 36,461 | $ 8,257 | $ 2,318 |
[1] | Carrying value used for this purpose excludes unamortized debt issuance costs. |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets and Liabilities Measured on Nonrecurring Basis) (Details) - Trade - Fair Value, Measurements, Recurring - Level 3 $ in Thousands | Dec. 31, 2019USD ($) |
Implied based on market prices | Real propert | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset fair value | $ 608 |
Valuation Technique, Discounted Cash Flow [Member] | Equity method investments | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset fair value | 12,424 |
Valuation, Income Approach [Member] | Frac sand assets | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset fair value | $ 16,546 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Sales revenues | $ 54,694 | $ 61,168 | |
Service fee revenues | 0 | 4,112 | |
Purchases of product | 15,577 | 169,229 | |
Lease income | 147 | 1,014 | |
Labor and benefits reimbursement | 0 | 3,857 | |
Accounts receivable | 6,586 | 20,134 | $ 10,603 |
Accounts payable | $ 6,364 | $ 24,644 | $ 12,303 |
Segment Information (Textual) (
Segment Information (Textual) (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments (business segments) | 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 1,853,105 | $ 1,976,792 | |
Income (loss) before income taxes, net of noncontrolling interest | (39,126) | (19,435) | |
Net loss attributable to the noncontrolling interests | (13,449) | (155) | |
Income (loss) before income taxes | (52,575) | (19,590) | |
Total assets | 3,752,691 | 3,660,252 | $ 3,900,741 |
Operating Segments | Trade | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 1,378,040 | 1,537,686 | |
Income (loss) before income taxes, net of noncontrolling interest | (9,983) | (17,903) | |
Total assets | 1,878,812 | 2,116,254 | 2,012,060 |
Operating Segments | Ethanol | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 313,039 | 269,166 | |
Income (loss) before income taxes, net of noncontrolling interest | (23,976) | 3,011 | |
Total assets | 653,928 | 333,060 | 690,548 |
Operating Segments | Plant Nutrient | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 124,913 | 128,525 | |
Income (loss) before income taxes, net of noncontrolling interest | (1,192) | (3,929) | |
Total assets | 434,512 | 455,529 | 383,781 |
Operating Segments | Rail | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 37,113 | 41,415 | |
Income (loss) before income taxes, net of noncontrolling interest | 1,007 | 4,312 | |
Total assets | 658,271 | 642,596 | 693,931 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 3,101 | 1,476 | |
Segment Reconciling Items | Trade | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 609 | 181 | |
Segment Reconciling Items | Plant Nutrient | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 887 | 20 | |
Segment Reconciling Items | Rail | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 1,605 | 1,275 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes, net of noncontrolling interest | (4,982) | (4,926) | |
Total assets | $ 127,168 | $ 112,813 | $ 120,421 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jan. 01, 2019USD ($) |
LTG | |
Operating Leased Assets [Line Items] | |
Reserve relating to outstanding non-regulatory litigation claim | $ 5 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 16,180 | $ 16,711 |
Noncash investing and financing activity | ||
Dividends declared not yet paid | 5,748 | 5,527 |
Capital projects incurred but not yet paid | $ 8,459 | $ 15,974 |
Business Acquisitions (Textual)
Business Acquisitions (Textual) (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Jan. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 135,360 | $ 119,641 | $ 135,360 | ||
Effective income tax rate | (2.80%) | (27.80%) | |||
Net sales | $ 1,853,105 | $ 2,031,510 | |||
Net income | $ (51,111) | $ (15,228) | |||
Lansing Trade Group LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Effective income tax rate | 25.00% | ||||
The Andersons Marathon Holdings LLC | |||||
Business Acquisition [Line Items] | |||||
Consideration paid for acquisition | $ 182,855 | ||||
Non-cash consideration | 7,318 | ||||
Marathon Noncontrolling Interest | 174,135 | ||||
Goodwill | $ 2,726 | ||||
The Andersons Marathon Holdings LLC | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage by parent | 50.10% | ||||
Ownership percentage by noncontrolling owners | 49.90% |
Business Acquisitions (Purchase
Business Acquisitions (Purchase Price Allocation) (Details) - The Andersons Marathon Holdings LLC $ in Thousands | Oct. 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Non-cash consideration | $ 7,318 |
Investments contributed at fair value | 124,662 |
Investment contributed at cost | 50,875 |
Total purchase price consideration | $ 182,855 |
Business Acquisitions (Fair Val
Business Acquisitions (Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 135,360 | $ 135,360 | $ 119,641 | |
The Andersons Marathon Holdings LLC | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 47,042 | |||
Accounts receivable | 12,175 | |||
Inventories | 31,765 | |||
Other current assets | 2,638 | |||
Goodwill | 2,726 | |||
Right of use asset | 5,200 | |||
Other assets, net | 861 | |||
Property, plant and equipment, net | 321,380 | |||
Total Assets Acquired | 423,787 | |||
Trade and other payables | 13,461 | |||
Accrued expense and other current liabilities | 3,011 | |||
Other long-term liabilities | 209 | |||
Long-term lease liabilities | 2,230 | |||
Long-term debt, including current maturities | 47,886 | |||
Total Liabilities Assumed | 66,797 | |||
Marathon Noncontrolling Interest | 174,135 | |||
Net Assets Acquired | 182,855 | |||
Removal of preexisting ownership interest | (88,426) | |||
Pretax gain on derecognition of preexisting ownership interest | $ 36,286 |
Business Acquisitions (Pro Form
Business Acquisitions (Pro Forma Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Combinations [Abstract] | ||
Net sales | $ 1,853,105 | $ 2,031,510 |
Net income | $ (51,111) | $ (15,228) |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | $ 135,360 |
Reorganization | 0 |
Balance as of March 31, 2020 | 135,360 |
Trade | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | 127,781 |
Reorganization | (5,714) |
Balance as of March 31, 2020 | 122,067 |
Ethanol | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | 2,726 |
Reorganization | 5,714 |
Balance as of March 31, 2020 | 8,440 |
Plant Nutrient | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | 686 |
Reorganization | 0 |
Balance as of March 31, 2020 | 686 |
Rail | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2020 | 4,167 |
Reorganization | 0 |
Balance as of March 31, 2020 | $ 4,167 |