ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OHIO | 34-1562374 | |
(State of incorporation or organization) | (I.R.S. Employer Identification No.) |
1947 Briarfield Boulevard, Maumee, Ohio | 43537 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated Filer | ¨ |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Page No. | |
PART I. | |
Item 1. Business | |
Item 1A. Risk Factors | |
Item 1B. Unresolved Staff Comments | |
Item 2. Properties | |
Item 3. Legal Proceedings | |
Item 4. Mine Safety | |
PART II. | |
Item 5. Market for the Registrant's Common Equity and Related Stockholder Matters | |
Item 6. Selected Financial Data | |
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. Quantitative and Qualitative Disclosures about Market Risk | |
Item 8. Financial Statements and Supplementary Data | |
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures | |
Item 9A. Controls and Procedures | |
PART III. | |
Item 10. Directors and Executive Officers of the Registrant | |
Item 11. Executive Compensation | |
Item 12. Security Ownership of Certain Beneficial Owners and Management | |
Item 13. Certain Relationships and Related Transactions | |
Item 14. Principal Accountant Fees and Services | |
PART IV. | |
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K | |
Item 16. Form 10-K Summary | |
Exhibits | |
Signatures |
Agricultural Fertilizer | |||||||||
(in thousands) | Grain Storage | Dry Storage | Liquid Storage | ||||||
Location | (bushels) | (tons) | (tons) | ||||||
Canada | 562 | — | — | ||||||
Illinois | 11,359 | 55 | 11 | ||||||
Indiana | 26,094 | 142 | 141 | ||||||
Iowa | 2,600 | — | 69 | ||||||
Michigan | 30,411 | 70 | 48 | ||||||
Minnesota | — | — | 47 | ||||||
Nebraska | 13,222 | — | 45 | ||||||
Ohio | 40,203 | 189 | 64 | ||||||
Puerto Rico | — | — | 10 | ||||||
Tennessee | 14,570 | — | — | ||||||
Texas | 1,386 | — | — | ||||||
Wisconsin | — | 24 | 77 | ||||||
140,407 | 480 | 512 |
Name | Position | Age | Year Assumed |
Jeffrey C. Blair | President, Plant Nutrient Group Vice President of Sales (Intrepid Potash, Inc) Director of Potash Sales (Intrepid Potash, Inc) Commercial Director - Sales and Account Management (Orica Mining Services) | 45 | 2017 2016 2013 2011 |
Valerie M. Blanchett | Vice President, Human Resources Vice President, Human Resources, Food Ingredients and Systems (Cargill) | 56 | 2016 2010 |
Patrick E. Bowe | President and Chief Executive Officer Corporate Vice President, Food Ingredients and Systems (Cargill) | 59 | 2015 2007 |
Naran U. Burchinow | Senior Vice President, General Counsel and Secretary | 64 | 2005 |
Srikanth R. Dasari | Vice President, Treasurer Treasurer (Westinghouse Electric Company) Head of Treasury Front Office (Dow Corning) | 47 | 2017 2016 2010 |
Tamara S. Goetz | Vice President, Financial Planning & Analysis Vice President, Corporate Business /Financial Analysis | 49 | 2015 2007 |
John J. Granato | Chief Financial Officer | 52 | 2012 |
Michael S. Irmen | President, Ethanol Group Vice President and General Manager, Ethanol Group Vice President, Commodities and Risk, Ethanol Group | 64 | 2016 2015 2012 |
Corbett J. Jorgenson | President, Grain Group Vice President, Americas, Corporate Transportation (Cargill) Vice President, Commercial Lead, AgHorizons USA (Cargill) | 43 | 2016 2015 2013 |
Anthony A. Lombardi | Chief Information Officer Vice President, Global Business Services and Chief Information Officer (Armstrong World Industries) | 59 | 2016 2010 |
Joseph E. McNeely | President, Rail Group President and Chief Executive Officer (FreightCar America, Inc.) Vice President Finance, Chief Financial Officer and Treasurer (FreightCar America, Inc.) | 53 | 2017 2013 2010 |
Anne G. Rex | Vice President, Corporate Controller | 53 | 2012 |
Rasesh H. Shah | Senior Director - Rail President, Rail Group | 63 | 2017 1999 |
2017 | 2016 | ||||||
High | Low | High | Low | ||||
Quarter Ended | |||||||
March 31 | $43.30 | $36.75 | $32.24 | $24.01 | |||
June 30 | $38.80 | $32.20 | $36.46 | $25.94 | |||
September 30 | $34.65 | $31.00 | $38.30 | $34.40 | |||
December 31 | $37.45 | $29.85 | $44.80 | $34.50 |
Payment Date | Amount | |
1/25/2016 | $0.1550 | |
4/22/2016 | $0.1550 | |
7/22/2016 | $0.1550 | |
10/24/2016 | $0.1550 | |
1/24/2017 | $0.1600 | |
4/24/2017 | $0.1600 | |
7/24/2017 | $0.1600 | |
10/23/2017 | $0.1600 | |
1/23/2018 | $0.1650 |
Equity Compensation Plan Information | |||||||
Plan category | (a) Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | ||||
Equity compensation plans approved by security holders | 1,010,984 (1) | $ | 34.93 | 668,213 (2) | |||
Equity compensation plans not approved by security holders | — | — | — |
(1) | This number includes 325,000 Non-Qualified Stock Options (“Options”), 182,596 total shareholder return-based performance share units, 274,798 earnings per share-based performance share units, and 228,590 restricted shares outstanding under The Andersons, Inc. 2014 Long-Term Performance Compensation Plan. This number does not include any shares related to the Employee Share Purchase Plan. The Employee Share Purchase Plan allows employees to purchase common shares at the lower of the market value on the beginning or end of the calendar year through payroll withholdings. These purchases are completed as of December 31. |
(2) | This number includes 95,918 Common Shares available to be purchased under the Employee Share Purchase Plan and 572,295 shares available under equity compensation plans. |
Agrium, Inc. | Ingredion Incorporated |
Archer-Daniels-Midland Co. | The Greenbrier Companies, Inc. |
GATX Corp. | The Scott's Miracle-Gro Company |
Green Plains, Inc. |
Base Period | Cumulative Returns | |||||||||||||||||
December 31, 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||
The Andersons, Inc. | $ | 100.00 | $ | 210.05 | $ | 189.34 | $ | 114.54 | $ | 164.80 | $ | 117.05 | ||||||
NASDAQ U.S. | 100.00 | 140.12 | 160.78 | 171.97 | 187.22 | 242.71 | ||||||||||||
Peer Group Index | 100.00 | 130.57 | 154.68 | 130.65 | 168.04 | 174.20 | ||||||||||||
(in thousands, except for per share and ratios and other data) | For the years ended December 31, | ||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Operating results | |||||||||||||||||||
Sales and merchandising revenues (a) | $ | 3,686,345 | $ | 3,924,790 | $ | 4,198,495 | $ | 4,540,071 | $ | 5,604,574 | |||||||||
Gross profit | 318,799 | 345,506 | 375,838 | 397,139 | 365,225 | ||||||||||||||
Equity in earnings of affiliates | 16,723 | 9,721 | 31,924 | 96,523 | 68,705 | ||||||||||||||
Other income, net (b) | 23,444 | 14,775 | 46,472 | 31,125 | 14,876 | ||||||||||||||
Net income (loss) | 42,609 | 14,470 | (11,322 | ) | 122,645 | 95,702 | |||||||||||||
Net income (loss) attributable to The Andersons, Inc. | 42,511 | 11,594 | (13,067 | ) | 109,726 | 89,939 | |||||||||||||
EBITDA (c) | 87,356 | 123,949 | 85,219 | 254,992 | 219,917 |
Financial position | ||||||||||||||
Total assets | 2,162,354 | 2,232,849 | 2,359,101 | 2,364,692 | 2,273,556 | |||||||||
Working capital | 260,495 | 258,350 | 241,485 | 226,741 | 229,451 | |||||||||
Long-term debt (d) | 418,339 | 397,065 | 436,208 | 298,638 | 371,150 | |||||||||
Long-term debt, non-recourse (d) | — | — | — | — | 4,063 | |||||||||
Total equity | 822,899 | 790,697 | 783,739 | 824,049 | 724,421 | |||||||||
Cash flows / liquidity | ||||||||||||||
Cash flows from (used in) operations | 75,285 | 39,585 | 154,134 | (10,071 | ) | 337,188 | ||||||||
Depreciation and amortization | 86,412 | 84,325 | 78,456 | 62,005 | 55,307 | |||||||||
Cash invested in acquisitions (e) | (3,507 | ) | — | (128,549 | ) | (20,037 | ) | (15,252 | ) | |||||
Purchase of investments (f) | (5,679 | ) | (2,523 | ) | (938 | ) | (238 | ) | (49,251 | ) | ||||
Investments in property, plant and equipment and capitalized software | (34,602 | ) | (77,740 | ) | (72,469 | ) | (59,675 | ) | (46,786 | ) | ||||
Net proceeds from (investment in) Rail Group assets (g) | (106,124 | ) | (28,579 | ) | (38,407 | ) | (57,968 | ) | 4,648 | |||||
Per share data (h) | ||||||||||||||
Net income (loss) - basic | 1.51 | 0.41 | (0.46 | ) | 3.85 | 3.20 | ||||||||
Net income (loss) - diluted | 1.50 | 0.41 | (0.46 | ) | 3.84 | 3.18 | ||||||||
Dividends declared | 0.6450 | 0.6250 | 0.5750 | 0.4700 | 0.4300 | |||||||||
Year-end market value | 31.15 | 44.70 | 31.63 | 53.14 | 59.45 | |||||||||
Ratios and other data | ||||||||||||||
Net income attributable to The Andersons, Inc. return on beginning equity attributable to The Andersons, Inc. | 5.5 | % | 1.5 | % | (1.6 | )% | 15.6 | % | 15.1 | % | ||||
Funded long-term debt to equity ratio (i) | 0.5-to-1 | 0.5-to-1 | 0.6-to-1 | 0.4-to-1 | 0.5-to-1 | |||||||||
Weighted average shares outstanding (000's) | 28,126 | 28,193 | 28,288 | 28,367 | 27,986 | |||||||||
Effective tax rate | 307.6 | % | 32.3 | % | 2.1 | % | 33.4 | % | 36.0 | % |
For the years ended December 31, | |||||||||||||||||||
(in thousands) | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Net income (loss) attributable to The Andersons, Inc. | $ | 42,511 | $ | 11,594 | $ | (13,067 | ) | $ | 109,726 | $ | 89,939 | ||||||||
Add: | |||||||||||||||||||
Provision (benefit) for income taxes | (63,134 | ) | 6,911 | (242 | ) | 61,501 | 53,811 | ||||||||||||
Interest expense | 21,567 | 21,119 | 20,072 | 21,760 | 20,860 | ||||||||||||||
Depreciation and amortization | 86,412 | 84,325 | 78,456 | 62,005 | 55,307 | ||||||||||||||
EBITDA | 87,356 | 123,949 | 85,219 | 254,992 | 219,917 |
Twelve months ended December 31, | |||||
(in thousands) | 2017 | 2016 | |||
Ethanol (gallons) | 411,087 | 295,573 | |||
E-85 (gallons) | 47,676 | 37,709 | |||
Corn Oil (pounds) | 17,959 | 14,794 | |||
DDG (tons) | 162 | 164 |
(in thousands) | Twelve months ended December 31, | ||||
2017 | 2016 | ||||
Wholesale Nutrients - Base Nitrogen, Phosphorus, Potassium | 1,262 | 1,246 | |||
Wholesale Nutrients - Value added products | 489 | 491 | |||
Other (Includes Farm Center, Turf, and Cob) | 447 | 553 | |||
Total tons | 2,198 | 2,290 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Sales and merchandising revenues | $ | 3,686,345 | $ | 3,924,790 | $ | 4,198,495 | |||||
Cost of sales and merchandising revenues | 3,367,546 | 3,579,284 | 3,822,657 | ||||||||
Gross profit | 318,799 | 345,506 | 375,838 | ||||||||
Operating, administrative and general expenses | 287,930 | 318,395 | 337,829 | ||||||||
Pension settlement | — | — | 51,446 | ||||||||
Asset impairment | 10,913 | 9,107 | 285 | ||||||||
Goodwill impairment | 59,081 | — | 56,166 | ||||||||
Interest expense | 21,567 | 21,119 | 20,072 | ||||||||
Equity in earnings of affiliates | 16,723 | 9,721 | 31,924 | ||||||||
Other income, net | 23,444 | 14,775 | 46,472 | ||||||||
Income (loss) before income taxes | (20,525 | ) | 21,381 | (11,564 | ) | ||||||
Income attributable to noncontrolling interests | 98 | 2,876 | 1,745 | ||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | (20,623 | ) | $ | 18,505 | $ | (13,309 | ) |
Year ended December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Sales and merchandising revenues | $ | 2,106,464 | $ | 2,357,171 | |||
Cost of sales and merchandising revenues | 1,975,076 | 2,249,089 | |||||
Gross profit | 131,388 | 108,082 | |||||
Operating, administrative and general expenses | 107,478 | 112,507 | |||||
Asset impairment | 10,913 | — | |||||
Interest expense | 8,320 | 7,955 | |||||
Equity in earnings of affiliates | 4,509 | (8,746 | ) | ||||
Other income, net | 3,658 | 5,472 | |||||
Income (loss) before income taxes | 12,844 | (15,654 | ) | ||||
Loss attributable to noncontrolling interests | — | (3 | ) | ||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | 12,844 | $ | (15,651 | ) |
Year ended December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Sales and merchandising revenues | $ | 708,063 | $ | 544,556 | |||
Cost of sales and merchandising revenues | 688,206 | 524,252 | |||||
Gross profit | 19,857 | 20,304 | |||||
Operating, administrative and general expenses | 13,216 | 11,211 | |||||
Interest expense | (67 | ) | 35 | ||||
Equity in earnings of affiliates | 12,214 | 18,467 | |||||
Other income, net | 54 | 77 | |||||
Income before income taxes | 18,976 | 27,602 | |||||
Income attributable to noncontrolling interests | 98 | 2,879 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | 18,878 | $ | 24,723 |
Year ended December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Sales and merchandising revenues | $ | 651,824 | $ | 725,176 | |||
Cost of sales and merchandising revenues | 547,179 | 603,045 | |||||
Gross profit | 104,645 | 122,131 | |||||
Operating, administrative and general expenses | 89,357 | 102,892 | |||||
Asset impairment | — | 2,331 | |||||
Goodwill impairment | 59,081 | — | |||||
Interest expense | 6,420 | 6,448 | |||||
Other income, net | 5,092 | 3,716 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | (45,121 | ) | $ | 14,176 |
Year ended December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Sales and merchandising revenues | $ | 172,123 | $ | 163,658 | |||
Cost of sales and merchandising revenues | 119,664 | 107,729 | |||||
Gross profit | 52,459 | 55,929 | |||||
Operating, administrative and general expenses | 23,270 | 18,971 | |||||
Asset impairment | — | 287 | |||||
Interest expense | 7,023 | 6,461 | |||||
Other income, net | 2,632 | 2,218 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | 24,798 | $ | 32,428 |
Year ended December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Sales and merchandising revenues | $ | 47,871 | $ | 134,229 | |||
Cost of sales and merchandising revenues | 37,421 | 95,169 | |||||
Gross profit | 10,450 | 39,060 | |||||
Operating, administrative and general expenses | 28,119 | 41,430 | |||||
Asset impairment | — | 6,489 | |||||
Interest expense | 324 | 496 | |||||
Other income, net | 10,684 | 507 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | (7,309 | ) | $ | (8,848 | ) |
Year ended December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Sales and merchandising revenues | $ | — | $ | — | |||
Cost of sales and merchandising revenues | — | — | |||||
Gross profit | — | — | |||||
Operating, administrative and general expenses | 26,490 | 31,384 | |||||
Interest expense (income) | (453 | ) | (276 | ) | |||
Other income, net | 1,324 | 2,785 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | (24,713 | ) | $ | (28,323 | ) |
Year ended December 31, | |||||||
(in thousands) | 2016 | 2015 | |||||
Sales and merchandising revenues | $ | 2,357,171 | $ | 2,483,643 | |||
Cost of sales and merchandising revenues | 2,249,089 | 2,359,998 | |||||
Gross profit | 108,082 | 123,645 | |||||
Operating, administrative and general expenses | 112,507 | 121,833 | |||||
Goodwill impairment | — | 46,422 | |||||
Interest expense | 7,955 | 5,778 | |||||
Equity in earnings of affiliates | (8,746 | ) | 14,703 | ||||
Other income, net | 5,472 | 26,229 | |||||
Income (loss) before income taxes | (15,654 | ) | (9,456 | ) | |||
Loss attributable to noncontrolling interests | (3 | ) | (10 | ) | |||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | (15,651 | ) | $ | (9,446 | ) |
Year ended December 31, | |||||||
(in thousands) | 2016 | 2015 | |||||
Sales and merchandising revenues | $ | 544,556 | $ | 556,188 | |||
Cost of sales and merchandising revenues | 524,252 | 531,864 | |||||
Gross profit | 20,304 | 24,324 | |||||
Operating, administrative and general expenses | 11,211 | 11,594 | |||||
Interest expense | 35 | 70 | |||||
Equity in earnings of affiliates | 18,467 | 17,221 | |||||
Other income, net | 77 | 377 | |||||
Income (loss) before income taxes | 27,602 | 30,258 | |||||
Income attributable to noncontrolling interests | 2,879 | 1,755 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | 24,723 | $ | 28,503 |
Year ended December 31, | |||||||
(in thousands) | 2016 | 2015 | |||||
Sales and merchandising revenues | $ | 725,176 | $ | 848,338 | |||
Cost of sales and merchandising revenues | 603,045 | 728,798 | |||||
Gross profit | 122,131 | 119,540 | |||||
Operating, administrative and general expenses | 102,892 | 105,478 | |||||
Asset impairment | 2,331 | — | |||||
Goodwill impairment | — | 9,744 | |||||
Interest expense | 6,448 | 7,243 | |||||
Other income, net | 3,716 | 3,046 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | 14,176 | $ | 121 |
Year ended December 31, | |||||||
(in thousands) | 2016 | 2015 | |||||
Sales and merchandising revenues | $ | 163,658 | $ | 170,848 | |||
Cost of sales and merchandising revenues | 107,729 | 103,161 | |||||
Gross profit | 55,929 | 67,687 | |||||
Operating, administrative and general expenses | 18,971 | 25,650 | |||||
Asset impairment | 287 | 285 | |||||
Interest expense | 6,461 | 7,006 | |||||
Other income, net | 2,218 | 15,935 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | 32,428 | $ | 50,681 |
Year ended December 31, | |||||||
(in thousands) | 2016 | 2015 | |||||
Sales and merchandising revenues | $ | 134,229 | $ | 139,478 | |||
Cost of sales and merchandising revenues | 95,169 | 98,836 | |||||
Gross profit | 39,060 | 40,642 | |||||
Operating, administrative and general expenses | 41,430 | 41,298 | |||||
Asset impairment | 6,489 | — | |||||
Interest expense | 496 | 356 | |||||
Other income, net | 507 | 557 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | (8,848 | ) | $ | (455 | ) |
Year ended December 31, | |||||||
(in thousands) | 2016 | 2015 | |||||
Sales and merchandising revenues | $ | — | $ | — | |||
Cost of sales and merchandising revenues | — | — | |||||
Gross profit | — | — | |||||
Operating, administrative and general expenses | 31,384 | 31,976 | |||||
Pension settlement | — | 51,446 | |||||
Interest income | (276 | ) | (381 | ) | |||
Other income, net | 2,785 | 328 | |||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | (28,323 | ) | $ | (82,713 | ) |
(in thousands) | December 31, 2017 | December 31, 2016 | Variance | ||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 34,919 | $ | 62,630 | $ | (27,711 | ) | ||||
Restricted cash | — | 471 | (471 | ) | |||||||
Accounts receivables, net | 183,238 | 194,698 | (11,460 | ) | |||||||
Inventories | 648,703 | 682,747 | (34,044 | ) | |||||||
Commodity derivative assets – current | 30,702 | 45,447 | (14,745 | ) | |||||||
Other current assets | 63,790 | 72,133 | (8,343 | ) | |||||||
Assets held for sale | 37,859 | — | 37,859 | ||||||||
Total current assets | 999,211 | 1,058,126 | (58,915 | ) | |||||||
Current Liabilities: | |||||||||||
Short-term debt | 22,000 | 29,000 | (7,000 | ) | |||||||
Trade and other payables | 503,571 | 581,826 | (78,255 | ) | |||||||
Customer prepayments and deferred revenue | 59,710 | 48,590 | 11,120 | ||||||||
Commodity derivative liabilities – current | 29,651 | 23,167 | 6,484 | ||||||||
Accrued expenses and other current liabilities | 69,579 | 69,648 | (69 | ) | |||||||
Current maturities of long-term debt | 54,205 | 47,545 | 6,660 | ||||||||
Total current liabilities | 738,716 | 799,776 | (61,060 | ) | |||||||
Working capital | $ | 260,495 | $ | 258,350 | $ | 2,145 |
Payments Due by Period | |||||||||||||||||||
(in thousands) | Less than 1 year | 1-3 years | 3-5 years | After 5 years | Total | ||||||||||||||
Long-term debt | $ | 54,336 | $ | 32,400 | $ | 186,295 | $ | 202,357 | $ | 475,388 | |||||||||
Interest obligations (a) | 17,632 | 32,219 | 24,840 | 46,623 | 121,314 | ||||||||||||||
Operating leases (b) | 24,031 | 30,507 | 17,764 | 13,268 | 85,570 | ||||||||||||||
Purchase commitments (c) | 758,966 | 59,370 | — | — | 818,336 | ||||||||||||||
Other long-term liabilities (d) | 2,445 | 4,983 | 5,102 | 16,542 | 29,072 | ||||||||||||||
Total contractual cash obligations | $ | 857,410 | $ | 159,479 | $ | 234,001 | $ | 278,790 | $ | 1,529,680 |
Method of Control | Financial Statement | Units | ||
Owned - railcars available for sale | On balance sheet – current | 533 | ||
Owned - railcar assets leased to others | On balance sheet – non-current | 17,025 | ||
Railcars leased from financial intermediaries | Off balance sheet | 3,375 | ||
Railcars in non-recourse arrangements | Off balance sheet | 2,556 | ||
Total Railcars | 23,489 | |||
Locomotive assets leased to others | On balance sheet – non-current | 32 | ||
Locomotive leased from financial intermediaries | Off balance sheet | 4 | ||
Total Locomotive Assets | 36 | |||
Barge assets leased to others | On balance sheet – non-current | — | ||
Barge assets leased from financial intermediaries | Off balance sheet | 65 | ||
Total Barges | 65 |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Net commodity position | $ | (1,224 | ) | $ | (2,166 | ) | |
Market risk | (122 | ) | (217 | ) |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Fair value of long-term debt, including current maturities | $ | 474,769 | $ | 450,940 | |||
Fair value in excess of carrying value | 1,451 | 3,116 | |||||
Market risk | 7,643 | 8,833 |
Report of Independent Registered Public Accounting Firms - Deloitte & Touche LLP / KPMG LLP / PricewaterhouseCoopers LLP - Canada / Crowe Chizek LLP | |
Consolidated Balance Sheets | |
Consolidated Statements of Operations | |
Consolidated Statements of Comprehensive Income | |
Consolidated Statements of Cash Flows | |
Consolidated Statements of Equity | |
Notes to Consolidated Financial Statements | |
Schedule II - Consolidated Valuation and Qualifying Accounts |
The Andersons, Inc. Consolidated Balance Sheets (In thousands) | |||||||
December 31, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 34,919 | $ | 62,630 | |||
Restricted cash | — | 471 | |||||
Accounts receivable, less allowance for doubtful accounts of $9,156 in 2017; $7,706 in 2016 | 183,238 | 194,698 | |||||
Inventories (Note 2) | 648,703 | 682,747 | |||||
Commodity derivative assets – current (Note 6) | 30,702 | 45,447 | |||||
Other current assets | 63,790 | 72,133 | |||||
Assets held for sale | 37,859 | — | |||||
Total current assets | 999,211 | 1,058,126 | |||||
Other assets: | |||||||
Commodity derivative assets – noncurrent (Note 6) | 310 | 100 | |||||
Goodwill (Note 4) | 6,024 | 63,934 | |||||
Other intangible assets, net (Note 4) | 112,893 | 106,100 | |||||
Other assets | 12,557 | 10,411 | |||||
Equity method investments | 223,239 | 216,931 | |||||
355,023 | 397,476 | ||||||
Rail Group assets leased to others, net (Note 3) | 423,443 | 327,195 | |||||
Property, plant and equipment, net (Note 3) | 384,677 | 450,052 | |||||
Total assets | $ | 2,162,354 | $ | 2,232,849 |
The Andersons, Inc. Consolidated Balance Sheets (continued) (In thousands) | |||||||
December 31, 2017 | December 31, 2016 | ||||||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Short-term debt (Note 5) | $ | 22,000 | $ | 29,000 | |||
Trade and other payables | 503,571 | 581,826 | |||||
Customer prepayments and deferred revenue | 59,710 | 48,590 | |||||
Commodity derivative liabilities – current (Note 6) | 29,651 | 23,167 | |||||
Accrued expenses and other current liabilities | 69,579 | 69,648 | |||||
Current maturities of long-term debt (Note 5) | 54,205 | 47,545 | |||||
Total current liabilities | 738,716 | 799,776 | |||||
Other long-term liabilities | 33,129 | 27,833 | |||||
Commodity derivative liabilities – noncurrent (Note 6) | 825 | 339 | |||||
Employee benefit plan obligations (Note 7) | 26,716 | 35,026 | |||||
Long-term debt, less current maturities (Note 5) | 418,339 | 397,065 | |||||
Deferred income taxes (Note 8) | 121,730 | 182,113 | |||||
Total liabilities | 1,339,455 | 1,442,152 | |||||
Commitments and contingencies (Note 14) | |||||||
Shareholders’ equity: | |||||||
Common shares, without par value (63,000 shares authorized; 29,430 shares issued in 2017 and 2016) | 96 | 96 | |||||
Preferred shares, without par value (1,000 shares authorized; none issued) | — | — | |||||
Additional paid-in-capital | 224,622 | 222,910 | |||||
Treasury shares, at cost (1,063 in 2017; 1,201 in 2016) | (40,312 | ) | (45,383 | ) | |||
Accumulated other comprehensive loss | (2,700 | ) | (12,468 | ) | |||
Retained earnings | 633,496 | 609,206 | |||||
Total shareholders’ equity of The Andersons, Inc. | 815,202 | 774,361 | |||||
Noncontrolling interests | 7,697 | 16,336 | |||||
Total equity | 822,899 | 790,697 | |||||
Total liabilities and equity | $ | 2,162,354 | $ | 2,232,849 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Sales and merchandising revenues | $ | 3,686,345 | $ | 3,924,790 | $ | 4,198,495 | |||||
Cost of sales and merchandising revenues | 3,367,546 | 3,579,284 | 3,822,657 | ||||||||
Gross profit | 318,799 | 345,506 | 375,838 | ||||||||
Operating, administrative and general expenses | 287,930 | 318,395 | 337,829 | ||||||||
Pension settlement | — | — | 51,446 | ||||||||
Asset impairment | 10,913 | 9,107 | 285 | ||||||||
Goodwill impairment | 59,081 | — | 56,166 | ||||||||
Interest expense | 21,567 | 21,119 | 20,072 | ||||||||
Other income: | |||||||||||
Equity in earnings of affiliates, net | 16,723 | 9,721 | 31,924 | ||||||||
Other income, net | 23,444 | 14,775 | 46,472 | ||||||||
Income (loss) before income taxes | (20,525 | ) | 21,381 | (11,564 | ) | ||||||
Income tax provision (benefit) | (63,134 | ) | 6,911 | (242 | ) | ||||||
Net income (loss) | 42,609 | 14,470 | (11,322 | ) | |||||||
Net income attributable to the noncontrolling interests | 98 | 2,876 | 1,745 | ||||||||
Net income (loss) attributable to The Andersons, Inc. | $ | 42,511 | $ | 11,594 | $ | (13,067 | ) | ||||
Per common share: | |||||||||||
Basic earnings (loss) attributable to The Andersons, Inc. common shareholders | $ | 1.51 | $ | 0.41 | $ | (0.46 | ) | ||||
Diluted earnings (loss) attributable to The Andersons, Inc. common shareholders | $ | 1.50 | $ | 0.41 | $ | (0.46 | ) | ||||
Dividends declared | $ | 0.6450 | $ | 0.6250 | $ | 0.5750 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net income (loss) | $ | 42,609 | $ | 14,470 | $ | (11,322 | ) | ||||
Other comprehensive income (loss), net of tax: | |||||||||||
Change in fair value of convertible preferred securities (net of income tax of $0, $74 and $0) | 344 | (126 | ) | — | |||||||
Change in unrecognized actuarial gain and prior service cost (net of income tax of $(1,809), $(4,355) and $(24,746)) | 6,138 | 7,447 | 40,736 | ||||||||
Foreign currency translation adjustments (net of income tax of $0, $0 and $82) | 3,286 | 1,039 | (7,333 | ) | |||||||
Cash flow hedge activity (net of income tax of $0, $(72) and $(154)) | — | 111 | 253 | ||||||||
Other comprehensive income (loss) | 9,768 | 8,471 | 33,656 | ||||||||
Comprehensive income | 52,377 | 22,941 | 22,334 | ||||||||
Comprehensive income attributable to the noncontrolling interests | 98 | 2,876 | 1,745 | ||||||||
Comprehensive income attributable to The Andersons, Inc. | $ | 52,279 | $ | 20,065 | $ | 20,589 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | 42,609 | $ | 14,470 | (11,322 | ) | |||||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 86,412 | 84,325 | 78,456 | ||||||||
Bad debt expense | 3,000 | 1,191 | 3,302 | ||||||||
Equity in (earnings) losses of affiliates, net of dividends | (10,494 | ) | 14,766 | (677 | ) | ||||||
Gain on sale of assets | (14,401 | ) | (667 | ) | (20,802 | ) | |||||
Gains on sales of Rail Group assets and related leases | (10,990 | ) | (11,019 | ) | (13,281 | ) | |||||
Deferred income taxes | (63,234 | ) | 6,030 | 27,279 | |||||||
Stock based compensation expense | 6,097 | 6,987 | 1,899 | ||||||||
Pension settlement charge, net of cash contributed | — | — | 48,344 | ||||||||
Goodwill impairment | 59,081 | — | 56,166 | ||||||||
Asset impairment charge | 10,913 | 9,107 | 285 | ||||||||
Other | (55 | ) | (2,070 | ) | (1,439 | ) | |||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 9,781 | (26,429 | ) | 45,058 | |||||||
Inventories | 16,141 | 28,165 | 73,350 | ||||||||
Commodity derivatives | 20,285 | (9,990 | ) | 14,098 | |||||||
Other assets | (5,623 | ) | 19,407 | (26,315 | ) | ||||||
Accounts payable and accrued expenses | (74,237 | ) | (94,688 | ) | (120,267 | ) | |||||
Net cash provided by (used in) operating activities | 75,285 | 39,585 | 154,134 | ||||||||
Investing Activities | |||||||||||
Acquisition of businesses, net of cash acquired | (3,507 | ) | — | (128,549 | ) | ||||||
Purchases of Rail Group assets | (143,020 | ) | (85,268 | ) | (115,032 | ) | |||||
Proceeds from sale of Rail Group assets | 36,896 | 56,689 | 76,625 | ||||||||
Purchases of property, plant and equipment and capitalized software | (34,602 | ) | (77,740 | ) | (72,469 | ) | |||||
Proceeds from sale of assets | 33,879 | 69,904 | 284 | ||||||||
Proceeds from returns of investments in affiliates | 1,069 | 9,186 | 1,620 | ||||||||
Purchase of investments | (5,679 | ) | (2,523 | ) | (938 | ) | |||||
Other | 1,470 | 1,534 | (21 | ) | |||||||
Net cash provided by (used in) investing activities | (113,494 | ) | (28,218 | ) | (238,480 | ) | |||||
Financing Activities | |||||||||||
Net change in short-term borrowings | (8,059 | ) | 14,000 | 15,000 | |||||||
Proceeds from issuance of long-term debt | 85,175 | 81,760 | 181,767 | ||||||||
Payments of long-term debt | (57,189 | ) | (97,606 | ) | (92,474 | ) | |||||
Proceeds from long-term financing arrangements | 12,195 | 14,027 | — | ||||||||
Distributions to noncontrolling interest owner | (377 | ) | (5,853 | ) | (3,206 | ) | |||||
Payments of debt issuance costs | (2,024 | ) | (323 | ) | (296 | ) | |||||
Purchases of treasury stock | — | — | (49,089 | ) | |||||||
Dividends paid | (18,152 | ) | (17,362 | ) | (15,921 | ) | |||||
Other | (1,071 | ) | (1,130 | ) | (2,389 | ) | |||||
Net cash provided by (used in) financing activities | 10,498 | (12,487 | ) | 33,392 | |||||||
Increase (decrease) in cash and cash equivalents | (27,711 | ) | (1,120 | ) | (50,954 | ) | |||||
Cash and cash equivalents at beginning of year | 62,630 | 63,750 | 114,704 | ||||||||
Cash and cash equivalents at end of year | $ | 34,919 | $ | 62,630 | $ | 63,750 |
The Andersons, Inc. Shareholders’ Equity | |||||||||||||||||||||||||||
Common Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | Total | |||||||||||||||||||||
Balance at January 1, 2015 | $ | 96 | $ | 222,789 | $ | (9,743 | ) | $ | (54,595 | ) | $ | 644,556 | $ | 20,946 | $ | 824,049 | |||||||||||
Net income | (13,067 | ) | 1,745 | (11,322 | ) | ||||||||||||||||||||||
Other comprehensive loss | 33,656 | 33,656 | |||||||||||||||||||||||||
Cash distributions to noncontrolling interest | (3,206 | ) | (3,206 | ) | |||||||||||||||||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $819 (187 shares) | (4,382 | ) | 5,930 | 1,548 | |||||||||||||||||||||||
Purchase of treasury shares (1,193 shares) | (49,089 | ) | (49,089 | ) | |||||||||||||||||||||||
Dividends declared ($0.575 per common share) | (16,200 | ) | (16,200 | ) | |||||||||||||||||||||||
Shares issued for acquisitions (77 shares) | 4,303 | 4,303 | |||||||||||||||||||||||||
Performance share unit dividends equivalents | 138 | (138 | ) | — | |||||||||||||||||||||||
Balance at December 31, 2015 | 96 | 222,848 | (52,902 | ) | (20,939 | ) | 615,151 | 19,485 | 783,739 | ||||||||||||||||||
Net income | 11,594 | 2,876 | 14,470 | ||||||||||||||||||||||||
Other comprehensive loss | 8,471 | 8,471 | |||||||||||||||||||||||||
Cash distributions to noncontrolling interest | (5,853 | ) | (5,853 | ) | |||||||||||||||||||||||
Other changes in noncontrolling interest | (172 | ) | (172 | ) | |||||||||||||||||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $458 (196 shares) | 67 | 7,489 | 7,556 | ||||||||||||||||||||||||
Dividends declared ($0.625 per common share) | (17,514 | ) | (17,514 | ) | |||||||||||||||||||||||
Performance share unit dividends equivalents | (5 | ) | 30 | (25 | ) | — | |||||||||||||||||||||
Balance at December 31, 2016 | 96 | 222,910 | (45,383 | ) | (12,468 | ) | 609,206 | 16,336 | 790,697 | ||||||||||||||||||
Net income | 42,511 | 98 | 42,609 | ||||||||||||||||||||||||
Other comprehensive income | 9,768 | 9,768 | |||||||||||||||||||||||||
Cash distributions to noncontrolling interest | (377 | ) | (377 | ) | |||||||||||||||||||||||
Other changes in noncontrolling interest | (8,360 | ) | (8,360 | ) | |||||||||||||||||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $(323) (138 shares) | 1,707 | 5,007 | 6,714 | ||||||||||||||||||||||||
Dividends declared ($0.645 per common share) | (18,152 | ) | (18,152 | ) | |||||||||||||||||||||||
Stock award dividend equivalents | 5 | 64 | (69 | ) | — | ||||||||||||||||||||||
Balance at December 31, 2017 | $ | 96 | $ | 224,622 | $ | (40,312 | ) | $ | (2,700 | ) | $ | 633,496 | $ | 7,697 | $ | 822,899 |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Grain | $ | 505,217 | $ | 495,139 | |||
Ethanol and coproducts | 11,003 | 10,887 | |||||
Plant nutrients and cob products | 126,962 | 150,259 | |||||
Retail merchandise | — | 20,678 | |||||
Railcar repair parts | 5,521 | 5,784 | |||||
$ | 648,703 | $ | 682,747 |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Land | $ | 22,388 | $ | 30,672 | |||
Land improvements and leasehold improvements | 69,127 | 79,631 | |||||
Buildings and storage facilities | 284,820 | 322,856 | |||||
Machinery and equipment | 373,127 | 392,418 | |||||
Construction in progress | 7,502 | 12,784 | |||||
756,964 | 838,361 | ||||||
Less: accumulated depreciation | 372,287 | 388,309 | |||||
$ | 384,677 | $ | 450,052 |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Rail Group assets leased to others | $ | 531,391 | $ | 431,571 | |||
Less: accumulated depreciation | 107,948 | 104,376 | |||||
$ | 423,443 | $ | 327,195 |
(in thousands) | Grain | Plant Nutrient | Rail | Total | ||||||||||||
Balance at January 1, 2015 | $ | 46,422 | $ | 21,776 | $ | 4,167 | $ | 72,365 | ||||||||
Acquisitions | — | 47,735 | — | 47,735 | ||||||||||||
Impairments | (46,422 | ) | (9,744 | ) | — | (56,166 | ) | |||||||||
Balance at December 31, 2015 | — | 59,767 | 4,167 | 63,934 | ||||||||||||
Acquisitions | — | — | — | — | ||||||||||||
Balance at December 31, 2016 | — | 59,767 | 4,167 | 63,934 | ||||||||||||
Acquisitions | 1,171 | — | — | 1,171 | ||||||||||||
Impairments | — | (59,081 | ) | — | (59,081 | ) | ||||||||||
Balance at December 31, 2017 | $ | 1,171 | $ | 686 | $ | 4,167 | $ | 6,024 |
(in thousands) | Original Cost | Accumulated Amortization | Net Book Value | ||||||||
December 31, 2017 | |||||||||||
Intangible asset class | |||||||||||
Customer list | $ | 41,151 | $ | 18,437 | $ | 22,714 | |||||
Non-compete agreement | 4,665 | 3,563 | 1,102 | ||||||||
Supply agreement | 9,806 | 5,699 | 4,107 | ||||||||
Technology | 15,500 | 5,616 | 9,884 | ||||||||
Trademarks and patents | 18,185 | 5,882 | 12,303 | ||||||||
Lease intangible | 12,420 | 5,707 | 6,713 | ||||||||
Software | 84,339 | 28,372 | 55,967 | ||||||||
Other | 2,023 | 1,920 | 103 | ||||||||
$ | 188,089 | $ | 75,196 | $ | 112,893 | ||||||
December 31, 2016 | |||||||||||
Intangible asset class | |||||||||||
Customer list | $ | 41,477 | $ | 14,958 | $ | 26,519 | |||||
Non-compete agreement | 4,594 | 3,064 | 1,530 | ||||||||
Supply agreement | 9,806 | 4,827 | 4,979 | ||||||||
Technology | 15,500 | 4,243 | 11,257 | ||||||||
Trademarks and patents | 18,717 | 4,335 | 14,382 | ||||||||
Lease intangible | 5,514 | 4,969 | 545 | ||||||||
Software | 71,362 | 24,592 | 46,770 | ||||||||
Other | 1,953 | 1,835 | 118 | ||||||||
$ | 168,923 | $ | 62,823 | $ | 106,100 |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Short-term debt - non-recourse | $ | — | $ | — | |||
Short-term debt - recourse | 22,000 | 29,000 | |||||
Total short-term debt | $ | 22,000 | $ | 29,000 | |||
Current maturities of long-term debt – non-recourse | $ | — | $ | — | |||
Current maturities of long-term debt – recourse | 54,205 | 47,545 | |||||
Total current maturities of long-term debt | $ | 54,205 | $ | 47,545 | |||
Long-term debt, less current maturities – non-recourse | $ | — | $ | — | |||
Long-term debt, less current maturities – recourse | 418,339 | 397,065 | |||||
Total long-term debt, less current maturities | $ | 418,339 | $ | 397,065 |
(in thousands, except percentages) | 2017 | 2016 | 2015 | ||||||||
Maximum amount borrowed | $ | 367,000 | $ | 412,000 | $ | 308,500 | |||||
Weighted average interest rate | 2.56 | % | 1.94 | % | 1.64 | % |
December 31, | |||||||
(in thousands, except percentages) | 2017 | 2016 | |||||
Note payable, 4.07%, payable at maturity, due 2021 | $ | 26,000 | $ | 26,000 | |||
Notes payable, 3.72%, paid 2017 | — | 25,000 | |||||
Note payable, 4.55%, payable at maturity, due 2023 | 24,000 | 24,000 | |||||
Note payable, 4.85%, payable at maturity, due 2026 | 25,000 | 25,000 | |||||
Note payable, 6.78%, payable at maturity, due 2018 | 41,500 | 41,500 | |||||
Note payable, 4.92%, payable in increasing amounts ($2.2 million for 2017), plus interest, due 2021 (a) | 18,241 | 20,443 | |||||
Note payable, 4.76%, payable in increasing amounts ($2.1 million for 2017) plus interest, due 2028 (a) | 45,936 | 47,990 | |||||
Note payable, variable rate (3.86% at December 31, 2017), payable in increasing amounts ($1.4 million for 2017) plus interest, due 2023 (a) | 17,786 | 19,179 | |||||
Note payable, 3.29%, payable in increasing amounts ($1.3 million for 2017) plus interest, due 2022 (a) | 20,293 | 21,619 | |||||
Note payable, 4.23%, payable quarterly in varying amounts ($0.7 million for 2017) plus interest, due 2021 (a) | 10,479 | 11,136 | |||||
Notes payable, variable rate, paid 2017 | — | 8,790 | |||||
Note payable, variable rate (3.23% at December 31, 2017), payable in varying amounts ($0.3 million for 2017), plus interest, due 2026 (a) | 8,762 | 9,016 | |||||
Note payable, 4.76%, payable quarterly in varying amounts ($0.4 million for 2017) plus interest, due 2028 (a) | 8,581 | 8,956 | |||||
Note payable, 3.03%, payable at maturity, due 2022 | 100,000 | 30,000 | |||||
Note payable, 3.33%, payable in increasing amounts ($1.0 million for 2017) plus interest, due 2025 (a) | 25,960 | 27,000 | |||||
Note payable, 4.5%, payable at maturity, due 2030 | 16,000 | 16,000 | |||||
Note payable, 5.0%, payable at maturity, due 2040 | 14,000 | 14,000 | |||||
Industrial development revenue bonds: | |||||||
Note payable, variable rate, paid 2017 | — | 6,513 | |||||
Variable rate (2.97% at December 31, 2017), payable at maturity, due 2024 (a) | 14,500 | — | |||||
Variable rate (3.33% at December 31, 2017), payable at maturity, due 2019 (a) | 4,650 | 4,650 | |||||
Variable rate (3.33% at December 31, 2017), payable at maturity, due 2025 (a) | 3,100 | 3,100 | |||||
Variable rate (3.25% at December 31, 2017), payable at maturity, due 2036 | 21,000 | 21,000 | |||||
Debenture bonds, 2.65% to 5.00%, due 2018 through 2032 | 30,432 | 36,931 | |||||
$ | 476,220 | $ | 447,823 | ||||
Less: current maturities | 54,205 | 47,545 | |||||
Less: unamortized prepaid debt issuance costs | 3,676 | 3,213 | |||||
$ | 418,339 | $ | 397,065 |
• | tangible net worth of not less than $255 million; |
• | current ratio net of hedged inventory of not less than 1.25 to 1.00; |
• | long-term debt to capitalization of not more than 70%; |
• | working capital of not less than $150 million; and |
• | interest coverage ratio of not less than 2.65 to 1.00. |
• | working capital not less than $14 million; and |
• | debt service coverage ratio of not less than 1.25 to 1.00. |
December 31, 2017 | December 31, 2016 | ||||||||||||||
(in thousands) | Net Derivative Asset Position | Net Derivative Liability Position | Net Derivative Asset Position | Net Derivative Liability Position | |||||||||||
Collateral paid | $ | 1,351 | $ | — | $ | 28,273 | $ | — | |||||||
Fair value of derivatives | 17,252 | — | 1,599 | — | |||||||||||
Balance at end of period | $ | 18,603 | $ | — | $ | 29,872 | $ | — |
December 31, 2017 | |||||||||||||||||||
(in thousands) | Commodity Derivative Assets - Current | Commodity Derivative Assets - Noncurrent | Commodity Derivative Liabilities - Current | Commodity Derivative Liabilities - Noncurrent | Total | ||||||||||||||
Commodity derivative assets | $ | 36,929 | $ | 311 | $ | 489 | $ | 1 | $ | 37,730 | |||||||||
Commodity derivative liabilities | (7,578 | ) | (1 | ) | (30,140 | ) | (826 | ) | (38,545 | ) | |||||||||
Cash collateral | 1,351 | — | — | — | 1,351 | ||||||||||||||
Balance sheet line item totals | $ | 30,702 | $ | 310 | $ | (29,651 | ) | $ | (825 | ) | $ | 536 |
December 31, 2016 | |||||||||||||||||||
(in thousands) | Commodity Derivative Assets - Current | Commodity Derivative Assets - Noncurrent | Commodity Derivative Liabilities - Current | Commodity Derivative Liabilities - Noncurrent | Total | ||||||||||||||
Commodity derivative assets | $ | 36,146 | $ | 140 | $ | 1,447 | $ | 6 | $ | 37,739 | |||||||||
Commodity derivative liabilities | (18,972 | ) | (40 | ) | (24,614 | ) | (345 | ) | (43,971 | ) | |||||||||
Cash collateral | 28,273 | — | — | — | 28,273 | ||||||||||||||
Balance sheet line item totals | $ | 45,447 | $ | 100 | $ | (23,167 | ) | $ | (339 | ) | $ | 22,041 |
Year Ended December 31, | |||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||
Gains (Losses) on commodity derivatives included in cost of sales and merchandising revenues | $ | 5,417 | (15,012 | ) | 62,541 |
December 31, 2017 | |||||||||||
Commodity (in thousands) | Number of Bushels | Number of Gallons | Number of Pounds | Number of Tons | |||||||
Non-exchange traded: | |||||||||||
Corn | 218,391 | — | |||||||||
Soybeans | 18,127 | — | — | — | |||||||
Wheat | 14,577 | — | — | — | |||||||
Oats | 25,953 | — | — | — | |||||||
Ethanol | — | 197,607 | — | — | |||||||
Corn oil | — | — | 6,074 | — | |||||||
Other | 47 | — | — | 97 | |||||||
Subtotal | 277,095 | 197,607 | 6,074 | 97 | |||||||
Exchange traded: | |||||||||||
Corn | 82,835 | — | — | — | |||||||
Soybeans | 37,170 | — | — | — | |||||||
Wheat | 65,640 | — | — | — | |||||||
Oats | 1,345 | — | — | — | |||||||
Ethanol | — | 39,438 | — | — | |||||||
Other | — | 840 | — | — | |||||||
Subtotal | 186,990 | 40,278 | — | — | |||||||
Total | 464,085 | 237,885 | 6,074 | 97 |
December 31, 2016 | |||||||||||
Commodity (in thousands) | Number of Bushels | Number of Gallons | Number of Pounds | Number of Tons | |||||||
Non-exchange traded: | |||||||||||
Corn | 175,549 | — | — | — | |||||||
Soybeans | 20,592 | — | — | — | |||||||
Wheat | 7,177 | — | — | — | |||||||
Oats | 36,025 | — | — | — | |||||||
Ethanol | — | 215,081 | — | — | |||||||
Corn oil | — | — | 9,358 | — | |||||||
Other | 108 | 1,144 | — | 110 | |||||||
Subtotal | 239,451 | 216,225 | 9,358 | 110 | |||||||
Exchange traded: | |||||||||||
Corn | 63,225 | — | — | — | |||||||
Soybeans | 39,005 | — | — | — | |||||||
Wheat | 45,360 | — | — | — | |||||||
Oats | 4,120 | — | — | — | |||||||
Ethanol | — | 78,120 | — | — | |||||||
Subtotal | 151,710 | 78,120 | — | — | |||||||
Total | 391,161 | 294,345 | 9,358 | 110 |
Interest Rate Hedging Instrument | Year Entered | Year of Maturity | Initial Notional Amount (in millions) | Hedged Item | Interest Rate | |||||||
Long-term | ||||||||||||
Swap | 2012 | 2023 | $ | 23.0 | Interest rate component of debt - not accounted for as a hedge | 1.9% | ||||||
Collar | 2013 | 2021 | 40.0 | Interest rate component of debt - not accounted for as a hedge | 2.9% to 4.8% | |||||||
Total | $ | 63.0 |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Interest rate contracts included in Other long term liabilities | $ | (1,244 | ) | $ | (2,530 | ) | |
Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities) | $ | 426 | $ | (112 | ) |
Year ended December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Interest rate derivative gains (losses) included in Interest expense | $ | 1,286 | $ | 603 | |||
Foreign currency contracts included in Other income | $ | 539 | $ | (112 | ) |
(in thousands) | Pension Benefits | Postretirement Benefits | |||||||||||||
Change in benefit obligation | 2017 | 2016 | 2017 | 2016 | |||||||||||
Benefit obligation at beginning of year | $ | 7,112 | $ | 8,677 | $ | 29,757 | $ | 39,152 | |||||||
Service cost | — | — | 391 | 760 | |||||||||||
Interest cost | 155 | 194 | 985 | 1,549 | |||||||||||
Actuarial (gains) losses | (245 | ) | (421 | ) | (7,903 | ) | (10,823 | ) | |||||||
Participant contributions | — | — | 463 | 653 | |||||||||||
Retiree drug subsidy received | — | — | 184 | 5 | |||||||||||
Benefits paid | (1,190 | ) | (1,338 | ) | (1,275 | ) | (1,539 | ) | |||||||
Benefit obligation at end of year | $ | 5,832 | $ | 7,112 | $ | 22,602 | $ | 29,757 |
(in thousands) | Pension Benefits | Postretirement Benefits | |||||||||||||
Change in plan assets | 2017 | 2016 | 2017 | 2016 | |||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | 285 | $ | — | $ | — | |||||||
Actual gains on plan assets | — | — | — | — | |||||||||||
Company contributions | 1,190 | 1,053 | 812 | 886 | |||||||||||
Participant contributions | — | — | 463 | 653 | |||||||||||
Benefits paid | (1,190 | ) | (1,338 | ) | (1,275 | ) | (1,539 | ) | |||||||
Fair value of plan assets at end of year | $ | — | $ | — | $ | — | $ | — | |||||||
Under funded status of plans at end of year | $ | (5,832 | ) | $ | (7,112 | ) | $ | (22,602 | ) | $ | (29,757 | ) |
Pension Benefits | Postretirement Benefits | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Accrued expenses | $ | (1,232 | ) | $ | (1,295 | ) | $ | (1,098 | ) | $ | (1,148 | ) | |||
Employee benefit plan obligations | (4,600 | ) | (5,817 | ) | (21,504 | ) | (28,609 | ) | |||||||
Net amount recognized | $ | (5,832 | ) | $ | (7,112 | ) | $ | (22,602 | ) | $ | (29,757 | ) |
Pension Benefits | Postretirement Benefits | ||||||||||||||
(in thousands) | Unamortized Actuarial Net Losses | Unamortized Prior Service Costs | Unamortized Actuarial Net Losses | Unamortized Prior Service Costs | |||||||||||
Balance at beginning of year | $ | 4,244 | $ | — | $ | 397 | $ | — | |||||||
Amounts arising during the period | (245 | ) | — | (7,903 | ) | — | |||||||||
Amounts recognized as a component of net periodic benefit cost | (252 | ) | — | — | 455 | ||||||||||
Balance at end of year | $ | 3,747 | $ | — | $ | (7,506 | ) | $ | 455 |
(in thousands) | Pension | Postretirement | Total | ||||||||
Prior service cost | $ | — | $ | (455 | ) | $ | (455 | ) | |||
Net actuarial loss | 252 | — | 252 |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Projected benefit obligation | $ | 5,832 | $ | 7,112 | |||
Accumulated benefit obligation | $ | 5,832 | $ | 7,112 |
Year | Expected Pension Benefit Payout | Expected Postretirement Benefit Payout | ||||||
2018 | $ | 1,232 | $ | 1,098 | ||||
2019 | 1,316 | 1,125 | ||||||
2020 | 1,255 | 1,146 | ||||||
2021 | 1,168 | 1,173 | ||||||
2022 | 311 | 1,204 | ||||||
2023-2027 | 957 | 6,262 |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | — | $ | — | $ | 236 | $ | 391 | $ | 760 | $ | 900 | |||||||||||
Interest cost | 155 | 194 | 182 | 985 | 1,549 | 1,584 | |||||||||||||||||
Expected return on plan assets | — | — | — | (455 | ) | (355 | ) | (543 | ) | ||||||||||||||
Recognized net actuarial loss | 252 | 146 | 1,516 | — | 768 | 1,517 | |||||||||||||||||
Benefit cost (income) | $ | 407 | $ | 340 | $ | 1,934 | $ | 921 | $ | 2,722 | $ | 3,458 |
Pension Benefits | Postretirement Benefits | ||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||
Used to Determine Benefit Obligations at Measurement Date | |||||||||||||||
Discount rate (a) | N/A | N/A | N/A | 3.4 | % | 4.0 | % | 4.2 | % | ||||||
Used to Determine Net Periodic Benefit Cost for Years ended December 31 | |||||||||||||||
Discount rate (b) | N/A | N/A | 0.65 | % | 3.7 | % | 4.2 | % | 3.9 | % | |||||
Expected long-term return on plan assets | N/A | N/A | N/A | — | — | — | |||||||||
Rate of compensation increases | N/A | N/A | N/A | — | — | — |
(a) | The calculated rate for the unfunded employee retirement plan was 2.50%, 2.40% and 2.60% in 2017, 2016 and 2015, respectively. Since it was terminated in 2015, the defined benefit pension plan did not have a discount rate in 2015, 2016 or 2017. |
(b) | The calculated rate for the unfunded employee retirement plan was 2.40%, 2.60% and 2.40% in 2017, 2016 and 2015, respectively. Since it was terminated in 2015, the defined benefit pension plan did not have a discount rate in 2015, 2016 or 2017. |
Assumed Health Care Cost Trend Rates at Beginning of Year | |||||
2017 | 2016 | ||||
Health care cost trend rate assumed for next year | 3.0 | % | 5.0 | % | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (a) | N/A | 5.0 | % | ||
Year that the rate reaches the ultimate trend rate (a) | N/A | 2017 |
(a) | In 2017, the Company's remaining uncapped participants were converted to a Medicare Exchange Health Reimbursement Arrangement, which put a 2% cap on the Company's share of the related costs. |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Current: | |||||||||||
Federal | $ | (1,668 | ) | $ | (702 | ) | $ | (3,237 | ) | ||
State and local | 643 | 199 | (762 | ) | |||||||
Foreign | 1,125 | 1,385 | 1,224 | ||||||||
$ | 100 | $ | 882 | $ | (2,775 | ) | |||||
Deferred: | |||||||||||
Federal | $ | (61,655 | ) | $ | 3,523 | $ | 1,756 | ||||
State and local | (2,107 | ) | 1,696 | 519 | |||||||
Foreign | 528 | 810 | 258 | ||||||||
$ | (63,234 | ) | $ | 6,029 | $ | 2,533 | |||||
Total: | |||||||||||
Federal | $ | (63,323 | ) | $ | 2,821 | $ | (1,481 | ) | |||
State and local | (1,464 | ) | 1,895 | (243 | ) | ||||||
Foreign | 1,653 | 2,195 | 1,482 | ||||||||
$ | (63,134 | ) | $ | 6,911 | $ | (242 | ) |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
U.S. | $ | (25,645 | ) | $ | 11,526 | $ | (18,867 | ) | |||
Foreign | 5,120 | 9,855 | 7,303 | ||||||||
$ | (20,525 | ) | $ | 21,381 | $ | (11,564 | ) |
Year ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Statutory U.S. federal tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Increase (decrease) in rate resulting from: | ||||||||
Effect of noncontrolling interest | 0.2 | (4.7 | ) | 5.3 | ||||
State and local income taxes, net of related federal taxes | (4.2 | ) | 5.8 | 1.4 | ||||
Income taxes on foreign earnings | (2.2 | ) | (1.3 | ) | 9.4 | |||
Change in federal and state tax rates | 374.8 | — | — | |||||
Goodwill impairment | (93.5 | ) | — | (35.6 | ) | |||
Equity Method Investments | (0.4 | ) | 0.3 | 1.9 | ||||
Tax effect of one-time transition tax | (7.1 | ) | — | — | ||||
Release of unrecognized tax benefts | 3.0 | 0.1 | 0.5 | |||||
Nondeductible compensation | (2.5 | ) | 2.0 | (5.0 | ) | |||
Tax associated with accrued and unpaid dividends | 0.1 | 3.2 | (13.6 | ) | ||||
Federal income tax credits | — | (7.3 | ) | — | ||||
Change in pre-acquisition tax liability and other costs | — | — | 3.5 | |||||
Other, net | 4.4 | (0.8 | ) | (0.7 | ) | |||
Effective tax rate | 307.6 | % | 32.3 | % | 2.1 | % |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Deferred tax liabilities: | |||||||
Property, plant and equipment and Rail Group assets leased to others | $ | (129,876 | ) | $ | (179,250 | ) | |
Equity method investments | (31,223 | ) | (45,244 | ) | |||
Other | (8,754 | ) | (22,286 | ) | |||
(169,853 | ) | (246,780 | ) | ||||
Deferred tax assets: | |||||||
Employee benefits | 15,229 | 25,403 | |||||
Accounts and notes receivable | 2,317 | 2,964 | |||||
Inventory | 6,100 | 9,979 | |||||
Federal income tax credits | 10,225 | 7,150 | |||||
Net operating loss carryforwards | 5,753 | 3,322 | |||||
Other | 9,674 | 16,224 | |||||
Total deferred tax assets | 49,298 | 65,042 | |||||
Valuation allowance | (1,024 | ) | (310 | ) | |||
48,274 | 64,732 | ||||||
Net deferred tax liabilities | $ | (121,579 | ) | $ | (182,048 | ) |
• | Historical operating results |
• | Expectations of future earnings |
• | Tax planning strategies; and |
• | The extended period of time over which retirement, medical, and pension liabilities will be paid. |
(in thousands) | |||
Balance at January 1, 2015 | $ | 1,487 | |
Additions based on tax positions related to the current year | 55 | ||
Additions based on tax positions related to prior years | 691 | ||
Reductions based on tax positions related to prior years | (518 | ) | |
Reductions as a result of a lapse in statute of limitations | (284 | ) | |
Balance at December 31, 2015 | 1,431 | ||
Additions based on tax positions related to the current year | 113 | ||
Reductions based on tax positions related to prior years | (40 | ) | |
Reductions as a result of a lapse in statute of limitations | (52 | ) | |
Balance at December 31, 2016 | 1,452 | ||
Additions based on tax positions related to the current year | — | ||
Additions based on tax positions related to prior years | — | ||
Reductions based on tax positions related to prior years | (92 | ) | |
Reductions as a result of a lapse in statute of limitations | (573 | ) | |
Balance at December 31, 2017 | $ | 787 |
Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) | |||||||||||||||||
(in thousands) | Foreign Currency Translation Adjustments | Investment in Convertible Preferred Securities | Defined Benefit Plan Items | Total | |||||||||||||
Beginning Balance | $ | (11,002 | ) | $ | — | $ | (1,466 | ) | $ | (12,468 | ) | ||||||
Other comprehensive income before reclassifications | 3,286 | 344 | 6,485 | 10,115 | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | (347 | ) | (347 | ) | |||||||||||
Net current-period other comprehensive income | 3,286 | 344 | 6,138 | 9,768 | |||||||||||||
Ending balance | $ | (7,716 | ) | $ | 344 | $ | 4,672 | $ | (2,700 | ) |
Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) | |||||||||||||||||||||
For the Year Ended December 31, 2016 | |||||||||||||||||||||
(in thousands) | Losses on Cash Flow Hedges | Foreign Currency Translation Adjustments | Investment in Debt Securities | Defined Benefit Plan Items | Total | ||||||||||||||||
Beginning Balance | $ | (111 | ) | $ | (12,041 | ) | $ | 126 | $ | (8,913 | ) | $ | (20,939 | ) | |||||||
Other comprehensive income before reclassifications | 111 | 1,039 | — | 7,668 | $ | 8,818 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | (126 | ) | (221 | ) | $ | (347 | ) | ||||||||||||
Net current-period other comprehensive income | 111 | 1,039 | (126 | ) | 7,447 | 8,471 | |||||||||||||||
Ending balance | $ | — | $ | (11,002 | ) | $ | — | $ | (1,466 | ) | $ | (12,468 | ) |
Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) | |||||||||||||||||||||
For the Year Ended December 31, 2015 | |||||||||||||||||||||
(in thousands) | Losses on Cash Flow Hedges | Foreign Currency Translation Adjustments | Investment in Debt Securities | Defined Benefit Plan Items | Total | ||||||||||||||||
Beginning Balance | $ | (364 | ) | $ | (4,709 | ) | $ | 126 | $ | (49,648 | ) | $ | (54,595 | ) | |||||||
Other comprehensive income before reclassifications | 253 | (7,332 | ) | — | (24,746 | ) | $ | (31,825 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | — | 65,481 | $ | 65,481 | |||||||||||||||
Net current-period other comprehensive income | 253 | (7,332 | ) | — | 40,735 | 33,656 | |||||||||||||||
Ending balance | $ | (111 | ) | $ | (12,041 | ) | $ | 126 | $ | (8,913 | ) | $ | (20,939 | ) |
Reclassifications Out of Accumulated Other Comprehensive Income (a) | ||||||
(in thousands) | For the Year Ended December 31, 2017 | |||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income Is Presented | ||||
Defined Benefit Plan Items | ||||||
Amortization of prior-service cost | $ | (455 | ) | (b) | ||
(455 | ) | Income (loss) before income taxes | ||||
108 | Income tax benefit | |||||
$ | (347 | ) | Net income (loss) | |||
Total reclassifications for the period | $ | (347 | ) | Net income (loss) |
Reclassifications Out of Accumulated Other Comprehensive Income (a) | ||||||
(in thousands) | For the Year Ended December 31, 2016 | |||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income Is Presented | ||||
Defined Benefit Plan Items | ||||||
Amortization of prior-service cost | $ | (354 | ) | (b) | ||
(354 | ) | Income (loss) before income taxes | ||||
133 | Income tax benefit | |||||
$ | (221 | ) | Net income (loss) | |||
Other Items | ||||||
Recognition of gain on sale of investment | (200 | ) | (b) | |||
(200 | ) | Income before income taxes | ||||
74 | Income tax benefit | |||||
(126 | ) | Net income (loss) | ||||
Total reclassifications for the period | $ | (347 | ) | Net income (loss) |
Reclassifications Out of Accumulated Other Comprehensive Income (a) | ||||||
(in thousands) | For the Year Ended December 31, 2015 | |||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income Is Presented | ||||
Defined Benefit Plan Items | ||||||
Amortization of prior-service cost | $ | (543 | ) | (b) | ||
(543 | ) | Income (loss) before income taxes | ||||
204 | Income tax benefit | |||||
$ | (339 | ) | Net income (loss) | |||
Other Items | ||||||
Settlement of defined benefit plan | (64,939 | ) | ||||
(64,939 | ) | Income (loss) before income taxes | ||||
24,746 | Income tax benefit | |||||
(40,193 | ) | Net income (loss) | ||||
Total reclassifications for the period | $ | (40,532 | ) | Net income (loss) |
(in thousands except per common share data) | Year ended December 31, | ||||||||||
2017 | 2016 | 2015 | |||||||||
Net income (loss) attributable to The Andersons, Inc. | $ | 42,511 | $ | 11,594 | $ | (13,067 | ) | ||||
Less: Distributed and undistributed earnings allocated to non-vested restricted stock | 1 | 9 | 29 | ||||||||
Earnings (losses) available to common shareholders | $ | 42,510 | $ | 11,585 | $ | (13,096 | ) | ||||
Earnings per share – basic: | |||||||||||
Weighted average shares outstanding – basic | 28,126 | 28,193 | 28,288 | ||||||||
Earnings (losses) per common share – basic | $ | 1.51 | $ | 0.41 | $ | (0.46 | ) | ||||
Earnings per share – diluted: | |||||||||||
Weighted average shares outstanding – basic | 28,126 | 28,193 | 28,288 | ||||||||
Effect of dilutive awards | 170 | 238 | — | ||||||||
Weighted average shares outstanding – diluted | 28,296 | 28,431 | 28,288 | ||||||||
Earnings (losses) per common share – diluted | $ | 1.50 | $ | 0.41 | $ | (0.46 | ) |
• | Level 1 inputs: Quoted prices (unadjusted) for identical assets or liabilities in active markets; |
• | Level 2 inputs: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly; and |
• | Level 3 inputs: Unobservable inputs (e.g., a reporting entity's own data). |
(in thousands) | December 31, 2017 | ||||||||||||||
Assets (liabilities) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Property, plant and equipment (a) | $ | — | $ | — | $ | 29,347 | $ | 29,347 | |||||||
Total | $ | — | $ | — | $ | 29,347 | $ | 29,347 |
(a) | The Company recognized impairment charges on certain grain assets during 2017 and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the grain assets was determined using prior transactions, prior third-party appraisals and a pending sale of grain assets held by the Company. |
(in thousands) | December 31, 2017 | ||||||||||||||
Assets (liabilities) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Commodity derivatives, net (a) | 18,603 | (18,067 | ) | — | 536 | ||||||||||
Provisionally priced contracts (b) | (98,190 | ) | (67,094 | ) | — | (165,284 | ) | ||||||||
Convertible preferred securities (c) | — | — | 7,388 | 7,388 | |||||||||||
Other assets and liabilities (d) | 9,705 | (1,244 | ) | — | 8,461 | ||||||||||
Total | $ | (69,882 | ) | $ | (86,405 | ) | $ | 7,388 | $ | (148,899 | ) |
(in thousands) | December 31, 2016 | ||||||||||||||
Assets (liabilities) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Restricted cash | 471 | — | — | 471 | |||||||||||
Commodity derivatives, net (a) | 29,872 | (7,831 | ) | — | 22,041 | ||||||||||
Provisionally priced contracts (b) | (105,321 | ) | (64,876 | ) | — | (170,197 | ) | ||||||||
Convertible preferred securities (c) | — | — | 3,294 | 3,294 | |||||||||||
Other assets and liabilities (d) | 9,391 | (2,530 | ) | — | 6,861 | ||||||||||
Total | $ | (65,587 | ) | $ | (75,237 | ) | $ | 3,294 | $ | (137,530 | ) |
(a) | Includes associated cash posted/received as collateral |
(b) | Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) |
(c) | Recorded in “Other noncurrent assets” on the Company’s 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). |
Convertible Preferred Securities | Contingent Consideration | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Assets (liabilities) at January 1, | $ | 3,294 | $ | 13,550 | $ | — | $ | (350 | ) | ||||||
New investments | 3,750 | 2,500 | — | — | |||||||||||
Sales proceeds | — | (13,485 | ) | — | — | ||||||||||
Gains (losses) included in earnings | — | 729 | — | 350 | |||||||||||
Unrealized gains (losses) included in other comprehensive income | 344 | — | — | — | |||||||||||
Assets (liabilities) at December 31, | $ | 7,388 | $ | 3,294 | $ | — | $ | — |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||
(in thousands) | Fair Value as of 12/31/17 | Valuation Method | Unobservable Input | Weighted Average | |||||
Convertible preferred securities (a) | $ | 7,388 | Implied based on market prices | Various | N/A | ||||
Real Property (b) | $ | 29,347 | Third-Party Appraisal | N/A | N/A |
(in thousands) | Fair Value as of 12/31/16 | Valuation Method | Unobservable Input | Weighted Average | |||||
Convertible preferred (a) | $ | 3,294 | Cost Basis, Plus Interest | N/A | N/A |
(a) | Due to early stages of business and timing of investments, cost basis, plus interest was deemed to approximate fair value in prior periods. As the underlying enterprises have evolved additional data is available to consider in order to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones and other relevant market data points. |
(b) | The Company recognized impairment charges on certain grain assets during 2017 and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the grain assets was determined using prior transactions, prior third-party appraisals and a pending sale of grain assets held by the Company. |
(in thousands) | Carrying Amount | Fair Value | Fair Value Hierarchy Level | ||||||
2017 | |||||||||
Fixed rate long-term notes payable | $ | 275,989 | $ | 275,340 | Level 2 | ||||
Debenture bonds | 30,432 | 29,452 | Level 2 | ||||||
$ | 306,421 | $ | 304,792 | ||||||
2016 | |||||||||
Fixed rate long-term notes payable | $ | 308,645 | $ | 310,338 | Level 2 | ||||
Debenture bonds | 36,931 | 37,883 | Level 2 | ||||||
$ | 345,576 | $ | 348,221 |
December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Sales | $ | 6,080,795 | $ | 6,579,413 | $ | 6,868,257 | |||||
Gross profit | 217,629 | 188,350 | 250,847 | ||||||||
Income from continuing operations | 50,937 | 12,288 | 85,220 | ||||||||
Net income | 42,970 | 6,445 | 81,368 | ||||||||
Current assets | 1,045,124 | 898,081 | 1,236,171 | ||||||||
Non-current assets | 538,671 | 565,416 | 500,637 | ||||||||
Current liabilities | 802,161 | 665,387 | 796,816 | ||||||||
Non-current liabilities | 309,649 | 359,816 | 342,075 | ||||||||
Noncontrolling interests | — | 3,628 | 11,716 |
December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
The Andersons Albion Ethanol LLC | $ | 45,024 | $ | 38,972 | |||
The Andersons Clymers Ethanol LLC | 19,830 | 19,739 | |||||
The Andersons Marathon Ethanol LLC | 12,660 | 22,069 | |||||
Lansing Trade Group, LLC | 93,088 | 89,050 | |||||
Thompsons Limited (a) | 50,198 | 46,184 | |||||
Other | 2,439 | 917 | |||||
Total | $ | 223,239 | $ | 216,931 |
(a) | Thompsons Limited and related U.S. operating company held by joint ventures |
% ownership at December 31, 2017 | December 31, | ||||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||||
The Andersons Albion Ethanol LLC | 55% | $ | 6,052 | $ | 6,167 | $ | 5,636 | ||||||
The Andersons Clymers Ethanol LLC | 39% | 4,591 | 6,486 | 6,866 | |||||||||
The Andersons Marathon Ethanol LLC | 33% | 1,571 | 5,814 | 4,718 | |||||||||
Lansing Trade Group, LLC | 33% (a) | 4,038 | (9,935 | ) | 11,880 | ||||||||
Thompsons Limited (b) | 50% | 696 | 1,189 | 2,735 | |||||||||
Other | 5% - 50% | (225 | ) | — | 89 | ||||||||
Total | $ | 16,723 | $ | 9,721 | $ | 31,924 |
(a) | This does not consider restricted management units which, once vested, will reduce the ownership percentage by approximately 0.7%. |
(b) | Thompsons Limited and related U.S. operating company held by joint ventures |
December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Sales revenues | $ | 893,950 | $ | 749,746 | $ | 825,220 | |||||
Service fee revenues (a) | 24,357 | 17,957 | 20,393 | ||||||||
Purchases of product | 615,739 | 463,832 | — | ||||||||
Lease income (b) | 6,175 | 5,966 | 6,664 | ||||||||
Labor and benefits reimbursement (c) | 13,894 | 12,809 | 11,567 | ||||||||
Other expenses (d) | — | 149 | 1,059 |
(a) | Service fee revenues include management fee, corn origination fee, ethanol and DDG marketing fees, and other commissions. |
(b) | Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the unconsolidated ethanol LLCs and IANR. |
(c) | The Company provides all operational labor to the unconsolidated ethanol LLCs and charges them an amount equal to the Company’s costs of the related services. |
(d) | Other expenses include payments to IANR for repair facility rent and use of their railroad reporting mark, payment to LTG for the lease of railcars and other various expense. |
December 31, | |||||
(in thousands) | 2017 | 2016 | |||
Accounts receivable (e) | 30,252 | 26,254 | |||
Accounts payable (f) | 27,866 | 23,961 |
(e) | Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees. |
(f) | Accounts payable represents amounts due to related parties for purchases of ethanol and other various items. |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Revenues from external customers | |||||||||||
Grain | $ | 2,106,464 | $ | 2,357,171 | $ | 2,483,643 | |||||
Ethanol | 708,063 | 544,556 | 556,188 | ||||||||
Plant Nutrient | 651,824 | 725,176 | 848,338 | ||||||||
Rail | 172,123 | 163,658 | 170,848 | ||||||||
Retail | 47,871 | 134,229 | 139,478 | ||||||||
Total | $ | 3,686,345 | $ | 3,924,790 | $ | 4,198,495 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Inter-segment sales | |||||||||||
Grain | $ | 761 | $ | 1,638 | $ | 3,573 | |||||
Plant Nutrient | 241 | 470 | 682 | ||||||||
Rail | 1,213 | 1,399 | 1,192 | ||||||||
Total | $ | 2,215 | $ | 3,507 | $ | 5,447 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Interest expense (income) | |||||||||||
Grain | $ | 8,320 | $ | 7,955 | $ | 5,778 | |||||
Ethanol | (67 | ) | 35 | 70 | |||||||
Plant Nutrient | 6,420 | 6,448 | 7,243 | ||||||||
Rail | 7,023 | 6,461 | 7,006 | ||||||||
Retail | 324 | 496 | 356 | ||||||||
Other | (453 | ) | (276 | ) | (381 | ) | |||||
Total | $ | 21,567 | $ | 21,119 | $ | 20,072 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Equity in earnings of affiliates | |||||||||||
Grain | $ | 4,509 | $ | (8,746 | ) | $ | 14,703 | ||||
Ethanol | 12,214 | 18,467 | 17,221 | ||||||||
Total | $ | 16,723 | $ | 9,721 | $ | 31,924 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Other income, net | |||||||||||
Grain | $ | 3,658 | $ | 5,472 | $ | 26,229 | |||||
Ethanol | 54 | 77 | 377 | ||||||||
Plant Nutrient | 5,092 | 3,716 | 3,046 | ||||||||
Rail | 2,632 | 2,218 | 15,935 | ||||||||
Retail | 10,684 | 507 | 557 | ||||||||
Other | 1,324 | 2,785 | 328 | ||||||||
Total | $ | 23,444 | $ | 14,775 | $ | 46,472 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Income (loss) before income taxes | |||||||||||
Grain | $ | 12,844 | $ | (15,651 | ) | $ | (9,446 | ) | |||
Ethanol | 18,878 | 24,723 | 28,503 | ||||||||
Plant Nutrient | (45,121 | ) | 14,176 | 121 | |||||||
Rail | 24,798 | 32,428 | 50,681 | ||||||||
Retail | (7,309 | ) | (8,848 | ) | (455 | ) | |||||
Other (a) | (24,713 | ) | (28,323 | ) | (82,713 | ) | |||||
Non-controlling interests | 98 | 2,876 | 1,745 | ||||||||
Total | $ | (20,525 | ) | $ | 21,381 | $ | (11,564 | ) |
(a) | Includes pension settlement charges in 2015 |
Year ended December 31, | |||||||
(in thousands) | 2017 | 2016 | |||||
Identifiable assets | |||||||
Grain | $ | 948,871 | $ | 961,114 | |||
Ethanol | 180,173 | 171,115 | |||||
Plant Nutrient | 379,309 | 484,455 | |||||
Rail | 490,448 | 398,446 | |||||
Retail | 4,349 | 31,257 | |||||
Other | 159,204 | 186,462 | |||||
Total | $ | 2,162,354 | $ | 2,232,849 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Capital expenditures | |||||||||||
Grain | $ | 10,899 | $ | 21,428 | $ | 26,862 | |||||
Ethanol | 3,690 | 2,301 | 7,223 | ||||||||
Plant Nutrient | 10,735 | 15,153 | 14,384 | ||||||||
Rail | 3,478 | 4,345 | 2,990 | ||||||||
Retail | — | 436 | 1,005 | ||||||||
Other | 5,800 | 34,077 | 20,005 | ||||||||
Total | $ | 34,602 | $ | 77,740 | $ | 72,469 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Acquisition of businesses, net of cash acquired and other investments | |||||||||||
Grain | $ | 5,436 | $ | — | $ | — | |||||
Plant Nutrient | — | — | 128,549 | ||||||||
Other | 3,750 | 2,500 | 750 | ||||||||
Total | $ | 9,186 | $ | 2,500 | $ | 129,299 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Depreciation and amortization | |||||||||||
Grain | $ | 18,757 | $ | 18,232 | $ | 19,240 | |||||
Ethanol | 5,970 | 5,925 | 5,865 | ||||||||
Plant Nutrient | 26,628 | 28,663 | 25,179 | ||||||||
Rail | 23,081 | 20,082 | 18,450 | ||||||||
Retail | 70 | 2,452 | 2,510 | ||||||||
Other | 11,906 | 8,971 | 7,212 | ||||||||
Total | $ | 86,412 | $ | 84,325 | $ | 78,456 |
Year ended December 31, | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Rental and service income - operating leases | $ | 90,333 | $ | 95,254 | $ | 97,059 | |||||
Rental expense | $ | 16,459 | $ | 16,723 | $ | 15,214 |
(in thousands) | Future Rental and Service Income - Operating Leases | Future Minimum Rental Payments | |||||
Year ended December 31, | |||||||
2018 | $ | 67,716 | $ | 11,390 | |||
2019 | 47,005 | 6,952 | |||||
2020 | 29,875 | 5,100 | |||||
2021 | 19,739 | 4,461 | |||||
2022 | 11,901 | 3,073 | |||||
Future years | 20,784 | 9,768 | |||||
$ | 197,020 | $ | 40,744 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Supplemental disclosure of cash flow information | |||||||||||
Interest paid | $ | 23,958 | $ | 21,407 | $ | 19,292 | |||||
Income taxes paid, net of refunds | 2,065 | (10,587 | ) | 4,909 | |||||||
Noncash investing and financing activity | |||||||||||
Capital projects incurred but not yet paid | 6,840 | 3,092 | 7,507 | ||||||||
Purchase of a productive asset through seller-financing | — | — | 1,010 | ||||||||
Shares issued for acquisition of business | — | — | 4,303 | ||||||||
Investment merger (decreasing equity method investments and non-controlling interest) | 8,360 | — | — | ||||||||
Dividends declared not yet paid | 4,650 | 4,493 | 4,338 |
2015 | ||
Risk free interest rate | 1.80 | % |
Dividend yield | 1.58 | % |
Volatility factor of the expected market price of the common shares | 0.35 | |
Expected life for the options (in years) | 5.50 |
Shares (in thousands) | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value (000's) | |||||||||
Options outstanding at January 1, 2017 | 325 | $ | 35.40 | |||||||||
Options granted | — | — | ||||||||||
Options exercised | — | — | ||||||||||
Options cancelled / forfeited | — | — | ||||||||||
Options outstanding at December 31, 2017 | 325 | $ | 35.40 | 0.84 | $ | — | ||||||
Vested and expected to vest at December 31, 2017 | 325 | $ | 35.40 | 0.84 | $ | — | ||||||
Options exercisable at December 31, 2017 | 217 | $ | 35.40 | 0.84 | $ | — |
Year ended December 31, | |||
(in thousands) | 2017 | ||
Total intrinsic value of Options exercised | $ | — | |
Total fair value of shares vested | $ | 1,123 | |
Weighted average fair value of Options granted | $ | — |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Non-vested restricted shares at January 1, 2017 | 223 | $ | 31.93 | |||
Granted | 134 | 37.13 | ||||
Vested | (113 | ) | 33.12 | |||
Forfeited | (15 | ) | 34.49 | |||
Non-vested restricted shares at December 31, 2017 | 229 | $ | 34.22 |
Year ended December 31, | |||||
2017 | 2016 | 2015 | |||
Total fair value of shares vested (000's) | $3,751 | $4,038 | $4,918 | ||
Weighted average fair value of restricted shares granted | $37.13 | $27.20 | $42.32 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Non-vested at January 1, 2017 | 304 | $ | 40.76 | |||
Granted | 84 | 39.20 | ||||
Vested | — | — | ||||
Forfeited | (113 | ) | 49.67 | |||
Non-vested at December 31, 2017 | 275 | $ | 36.61 |
Year ended December 31, | |||||
2017 | 2016 | 2015 | |||
Weighted average fair value of PSUs granted | $39.20 | $27.54 | $44.76 |
2017 | ||
Risk free interest rate | 1.55 | % |
Dividend yield | — | % |
Volatility factor of the expected market price of the common shares | 0.41 | |
Expected term (in years) | 2.83 | |
Correlation coefficient | 0.40 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Non-vested at January 1, 2017 | 118 | $ | 26.43 | |||
Granted | 84 | 42.53 | ||||
Vested | — | — | ||||
Forfeited | (19 | ) | 32.04 | |||
Non-vested at December 31, 2017 | 183 | $ | 33.26 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Weighted average fair value of PSUs granted | $ | 42.53 | $ | 26.43 | $ | — |
2017 | 2016 | 2015 | ||||||
Risk free interest rate | 1.76 | % | 0.61 | % | 0.25 | % | ||
Dividend yield | 2.06 | % | 1.96 | % | 1.05 | % | ||
Volatility factor of the expected market price of the common shares | 0.28 | 0.36 | 0.41 | |||||
Expected life for the options (in years) | 1.00 | 1.00 | 1.00 |
(in thousands) | |||
Cash | $ | 880 | |
Accounts receivable | 14,699 | ||
Inventory | 25,094 | ||
Other assets | 6,155 | ||
Intangibles | 53,091 | ||
Goodwill | 47,735 | ||
Property, plant, and equipment | 27,478 | ||
Accounts payable | (12,131 | ) | |
Other current liabilities | (4,866 | ) | |
Other non-current liabilities | (28,706 | ) | |
Total purchase price | $ | 129,429 |
(in thousands) | Fair Value | Useful Life | |||
Unpatented technology | $ | 13,400 | 10 years | ||
Customer relationships | 22,800 | 10 years | |||
Trade names | 15,500 | 7 to 10 years | |||
Noncompete agreement | 1,342 | 5 years | |||
Favorable leasehold interest | 49 | 5 years | |||
Total identifiable intangible assets | $ | 53,091 | 10 years * |
(in thousands, except for per common share data) | Sales and merchandising revenues | Gross profit | Net income (loss) attributable to The Andersons, Inc. | Earnings (losses) per share-basic | Earnings per share-diluted | ||||||||||||||
Quarter ended 2017 | |||||||||||||||||||
March 31 | $ | 852,016 | $ | 76,458 | $ | (3,089 | ) | $ | (0.11 | ) | $ | (0.11 | ) | ||||||
June 30 | 993,662 | 87,834 | (26,653 | ) | (0.94 | ) | (0.94 | ) | |||||||||||
September 30 | 836,595 | 69,671 | 2,533 | 0.09 | 0.09 | ||||||||||||||
December 31 | 1,004,072 | 84,836 | 69,720 | 2.48 | 2.47 | ||||||||||||||
Year ended 2017 | $ | 3,686,345 | $ | 318,799 | $ | 42,511 | 1.51 | 1.50 | |||||||||||
Quarter ended 2016 | |||||||||||||||||||
March 31 | $ | 887,879 | $ | 67,755 | $ | (14,696 | ) | $ | (0.52 | ) | $ | (0.52 | ) | ||||||
June 30 | 1,064,244 | 97,042 | 14,423 | 0.51 | 0.51 | ||||||||||||||
September 30 | 859,612 | 77,015 | 1,722 | 0.06 | 0.06 | ||||||||||||||
December 31 | 1,113,055 | 103,694 | 10,145 | 0.36 | 0.36 | ||||||||||||||
Year ended 2016 | $ | 3,924,790 | $ | 345,506 | $ | 11,594 | 0.41 | 0.41 |
(a) (1) | The Consolidated Financial Statements of the Company are set forth under Item 8 of this report on Form 10-K. | |||
(2 | ) | The following consolidated financial statement schedule is included in Item 15(d): | Page | |
II. | Consolidated Valuation and Qualifying Accounts - years ended December 31, 2017, 2016 and 2015 |
(3 | ) | Exhibits: | ||||
3.1 | Articles of Incorporation. (Incorporated by reference to Exhibit 3(d) to Registration Statement No. 33-16936). | |||||
3.2 | Code of Regulations of The Andersons, Inc. (Incorporated by reference to Exhibit 3.4 to Registration Statement No. 33-58963). | |||||
3.3 | Amended Article Fourth (a) of the Amended and Restated Articles of Incorporation of the Corporation (Incorporated by reference to DEF 14A filed March 15, 2016). | |||||
3.4 | Amendments to Articles of Incorporation or Bylaws (Incorporated by reference to Form 8-K filed July 19, 2017). | |||||
4.1 | Form of Indenture dated as of October 1, 1985, between The Andersons, Inc. and Ohio Citizens Bank, as Trustee (Incorporated by reference to Exhibit 4 (a) in Registration Statement No. 33-819). | |||||
4.2 | Specimen Common Share Certificate. (Incorporated by reference to Exhibit 4.1 to Registration Statement No. 33-58963). | |||||
4.3 | Form of Indenture dated June 28, 2012, between The Andersons, Inc. and Huntington National Bank, as Trustee (Incorporated by reference to Exhibit 4.1 in Registration Statement No. 333-182428). | |||||
10.10 | The Andersons, Inc. 2004 Employee Share Purchase Plan * (Incorporated by reference to Appendix B to the Proxy Statement for the May 13, 2004 Annual Meeting). | |||||
10.11 | Note Purchase Agreement, dated March 27, 2008, between The Andersons, Inc., as borrowers, and several purchases with Wells Fargo Capital Markets acting as agent (Incorporated by reference from Form 8-K filed March 27, 2008). | |||||
10.12 | Amended and Restated Note Purchase Agreement, dated February 26, 2010, between The Andersons, Inc., as borrower, and Co-Bank, one of the lenders to the original agreement (Incorporated by reference from Form 8-K filed March 5, 2010). | |||||
10.13 | Second Amended and Restated Marketing Agreement between The Andersons, Inc. and Cargill, Incorporated dated June 1, 2013. (The exhibits to the Marketing Agreement have been omitted. The Company will furnish such exhibits to the SEC upon request.) | |||||
10.14 | First Amendment to Lease and Sublease between Cargill, Incorporated and The Andersons, Inc. dated June 1, 2013. (Incorporated by reference to Form 10-K filed February 28, 2014). | |||||
10.15 | Form of Performance Share Unit Agreement. (Incorporated by reference to Form 10-K filed March 2, 2015). | |||||
10.16 | Form of Restricted Share Award Agreement. (Incorporated by reference to Form 10-K filed March 2, 2015). | |||||
10.17 | Fifth Amended and Restated Loan Agreement, dated March 4, 2014, between The Andersons, Inc., as borrower, and several banks with U.S. Bank National Association acting as agent and lender. (Incorporated by reference to Form 10-Q filed May 9, 2014). | |||||
10.19 | The Andersons, Inc. 2014 Long-Term Incentive Compensation Plan effective May 2, 2014 * (Incorporated by reference to Appendix C to the Proxy Statement for the May 2, 2014 Annual Meeting). | |||||
10.20 | Form of Performance Share Unit Agreement. (Incorporated by reference to Form 10-Q filed May 8, 2015). | |||||
10.21 | Form of Restricted Share Award Agreement. (Incorporated by reference to Form 10-Q filed May 8, 2015). | |||||
10.22 | Form of Restricted Share Award - Cliff Vesting Agreement. (Incorporated by reference to Form 10-Q filed May 8, 2015). | |||||
10.23 | Employment Agreement between The Andersons, Inc. and Patrick E. Bowe (Incorporated by reference to Form 8-K filed November 5, 2015). | |||||
10.24 | Form of Performance Share Unit Agreement - Total Shareholder Return. (Incorporated by reference to Form 10-Q filed May 10, 2016). | |||||
10.25 | Form of Performance Share Unit Agreement - Earnings Per Share. (Incorporated by reference to Form 10-Q filed May 10, 2016). | |||||
10.26 | Form of Restricted Share Award Agreement. (Incorporated by reference to Form 10-Q filed May 10, 2016). | |||||
10.27 | Form of Restricted Share Award - Non-Employee Directors Agreement. (Incorporated by reference to Form 10-Q filed May 10, 2016). | |||||
10.28 | Sixth Amended and Restated Loan Agreement, dated April 13, 2017, between The Andersons, Inc., as borrower, and several banks with U.S. Bank National Association acting as agent and lender. (Incorporated by reference to Form 8-K filed April 17, 2017). | |||||
10.29 | Form of Performance Share Unit Agreement - Total Shareholder Return. (Incorporated by reference to Form 10-Q filed May 5, 2017). | |||||
10.30 | Form of Performance Share Unit Agreement - Earnings Per Share. (Incorporated by reference to Form 10-Q filed May 5, 2017). | |||||
10.31 | Form of Restricted Share Award Agreement. (Incorporated by reference to Form 10-Q filed May 5, 2017). | |||||
10.32 | Form of Restricted Share Award - Non-Employee Directors Agreement. (Incorporated by reference to Form 10-Q filed May 5, 2017). | |||||
10.33 | Management Performance Program. (filed herewith). | |||||
10.34 | Form of Change in Control and Severance Participation Agreement (filed herewith). | |||||
10.35 | Change in Control and Severance Policy (filed herewith). | |||||
12 | Computation of Ratio of Earnings to Fixed Charges (filed herewith). | |||||
21 | Consolidated Subsidiaries of The Andersons, Inc (filed herewith). | |||||
23.1 | Consent of Independent Registered Public Accounting Firm - Deloitte & Touche LLP (filed herewith). | |||||
23.2 | Consent of Independent Registered Public Accounting Firm - KPMG LLP (filed herewith). | |||||
23.3 | Consent of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLP - Canada (filed herewith). | |||||
23.4 | Consent of Independent Registered Public Accounting Firm - Crowe Chizek LLP (filed herewith). |
31.1 | Certification of the Chief Executive Officer under Rule 13(a)-14(a)/15d-14(a) (filed herewith). | |||||
31.2 | Certification of the Chief Financial Officer under Rule 13(a)-14(a)/15d-14(a) (filed herewith). | |||||
32.1 | Certifications Pursuant to 18 U.S.C. Section 1350 (filed herewith). | |||||
101 | Financial statements from the annual report on Form 10-K of The Andersons, Inc. for the year ended December 31, 2017, formatted in XBRL: (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Equity, (v) the Consolidated Statement of Cash Flows and (vi) the Notes to Consolidated Financial Statements. |
(b) | Exhibits: | ||
The exhibits listed in Item 15(a)(3) of this report, and not incorporated by reference, follow "Financial Statement Schedule" referred to in (c) below. | |||
(c) | Financial Statement Schedule | ||
The financial statement schedule listed in 15(a)(2) follows "Signatures." |
(in thousands) | Additions | ||||||||||||||
Allowance for doubtful accounts receivable - Year ended December 31, | Balance at beginning of period | Charged to costs and expenses | Transferred from (to) allowance for accounts / notes receivable | (1) Deductions | Balance at end of period | ||||||||||
2017 | $ | 7,706 | $ | 3,000 | $ | — | $ | (1,550 | ) | $ | 9,156 | ||||
2016 | 6,938 | 1,191 | — | (423 | ) | 7,706 | |||||||||
2015 | 4,644 | 3,302 | — | (1,008 | ) | 6,938 |
No. | Description | |
10.33 | ||
10.34 | ||
10.35 | ||
12 | ||
21 | ||
23.1 | ||
23.2 | ||
23.3 | ||
23.4 | ||
31.1 | ||
31.2 | ||
32.1 | ||
101 | Financial Statements from the annual report on Form 10-K of The Andersons, Inc. for the year ended December 31, 2017, formatted in XBRL: (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Equity, (v) the Consolidated Statement of Cash Flows and (vi) the Notes to Consolidated Financial Statements. |
THE ANDERSONS, INC. (Registrant) | ||
Date: February 26, 2018 | By /s/ Patrick E. Bowe | |
Patrick E. Bowe | ||
Chief Executive Officer (Principal Executive Officer) | ||
Signature | Title | Date | Signature | Title | Date | |
/s/ Patrick E. Bowe | Chief Executive Officer | 2/26/2018 | /s/ Ross W. Manire | Director | 2/26/2018 | |
Patrick E. Bowe | (Principal Executive Officer) | Ross W. Manire | ||||
/s/ John J. Granato | Chief Financial Officer | 2/26/2018 | /s/ Donald L. Mennel | Director | 2/26/2018 | |
John J. Granato | (Principal Financial Officer) | Donald L. Mennel | ||||
/s/ Anne G. Rex | Vice President, Corporate Controller | 2/26/2018 | /s/ Patrick S. Mullin | Director | 2/26/2018 | |
Anne G. Rex | (Principal Accounting Officer) | Patrick S. Mullin | ||||
/s/ Michael J. Anderson | Chairman | 2/26/2018 | /s/ John T. Stout, Jr. | Director | 2/26/2018 | |
Michael J. Anderson | John T. Stout, Jr. | |||||
/s/ Gerard M. Anderson | Director | 2/26/2018 | /s/ Jacqueline F. Woods | Director | 2/26/2018 | |
Gerard M. Anderson | Jacqueline F. Woods | |||||
/s/ Catherine M. Kilbane | Director | 2/26/2018 | /s/ Robert J. King, Jr. | Director | 2/26/2018 | |
Catherine M. Kilbane | Robert J. King, Jr. | |||||
1. | Total target incentive dollars are established based on a multiple (i.e., percentage) of salary range midpoint scaled to job evaluation points (i.e., level of responsibility). The percentage scale is set and adjusted periodically based on competitive data. |
2. | Seventy percent (70%) of total target incentive dollars are allocated to Group and/or Company performance. Target incentive dollars are allocated based on the participant’s assignment: 70% Company for Corporate participants; or 20% Company and 50% Group for business Group participants. Group-based participants reporting to Corporate (e.g., Group-based accounting) have 50% allocated to Company and 20% allocated to the Group. |
3. | The remaining thirty percent (30%) of total target incentive dollars are allocated to a Group level Individual Objective pool. |
4. | All participants have a minimum of 20% of their target incentive dollars allocated to Company performance. If Group performance is below threshold, then the payout based on Company performance cannot exceed 100% of AIP dollars allocated to Company performance. |
5. | Company and Group performance is measured using pre-tax income. Targets are generally aligned with the annual business plan and may vary based on other factors. Thresholds are generally set at 50% of Target. |
6. | At threshold performance 30% of target formula dollars are delivered. For all income from threshold to target a linear (“straight line”) relationship between threshold and target income determines additional compensation. |
7. | For income above target, the rate of payout continues on a straight-line basis so that 200% of the allocated target formula dollars are achieved when income reaches 171% of target income. AIP amounts determined by formula are capped at 200% of an individual’s total formula dollars at target. |
8. | Company and business unit senior management may approve and award participants cash amounts from the group’s Individual Objective pool as appropriate based on individual performance. The group’s Individual Objective pool is funded based on the group’s pre-tax income results. Final payouts are subject to executive officer oversight for their business group or corporate area(s). |
9. | Annually, the CEO, CFO and VP of HR review established Plan standards in light of current plan year expectations to determine any exceptions that may be needed. Plan standards include, but may not be limited to, targets, thresholds, caps, modifiers, triggers, allocations, rate of payout below and above target, and component weightings |
1. | Generally the Plan year is from January 1 to December 31. |
2. | Participants that are promoted or change jobs during the plan year will have their formula programs pro-rated to the nearest month based on the effective date of the change. |
3. | If a participant leaves the Company for any reason, other than death, permanent disability, or retirement, on or prior to December 31 all potential payments for the Plan year shall be forfeited. If a participant terminates employment due to death, permanent disability, or retirement on or prior to December 31; any potential payment shall be pro-rated to the nearest month based on the effective date of the termination. If a participant terminates due to Company initiated involuntary termination for cause after December 31, but prior to the payment date (typically in early March) the entire payment for the prior Plan year shall be forfeited. The Company reserves the right to exercise sole discretion to make payments under the plan to a participant who terminates for any other reason. This discretion is exercised by the CEO, CFO, and VP, Human Resources. |
4. | Payments are determined based on official Company records. Individual payments for non-officers must be approved by the appropriate Group President or Corporate Vice President and the CEO. The Compensation & Leadership Development Committee of the Board of Directors reviews and approves payments to officers and recommends to the Board of Directors payments to the CEO. |
5. | Payments made under the Plan are not part of the terms of employment between the Company and the participants. Payments made under the Plan are not part of agreed compensation to any participants. Participation in one year does not guarantee participation in future years. |
6. | Payments, if any, will be paid as soon as administratively practical after the end of the Plan Year upon completion of the financial statement audit and approval by the Board of Directors. This Plan is not intended to be a nonqualified deferred compensation plan as defined under Section 409A of the Internal Revenue Service Code and the regulations there under. Accordingly, all payments made to Participants under this Plan shall be paid no later than the 15th day of the third month following the end of the first taxable year in which the right to the payment is no longer subject to a substantial risk of forfeiture. |
7. | In accordance with the provisions of Section 304 of the Sarbanes-Oxley Act of 2002, the CEO and CFO are required to reimburse the Company bonuses, or other incentive-based or equity-based compensation, and profits from securities sales following certain financial restatements resulting from misconduct. The Andersons has adopted a policy commencing 2014 requiring the repayment or “clawback” of excess cash or equity based compensation from each executive officer of the Company and also the group controller of the relevant business unit where the payments were based on the achievement of financial results that were subsequently the subject of a financial restatement (regardless of involvement in the cause of the restatement). |
8. | The Company reserves the right to terminate, amend or modify the Plan in any respect as it may deem advisable. |
• | Gains or losses from involuntary conversions of assets (insurance proceeds), sales of assets or abandonment of assets. Sales of equipment in the normal course of business will not be adjusted; however, significant sales of income producing assets that drive large gains may be eliminated. |
• | Asset impairment charges |
• | Impacts from new accounting pronouncements that haven't been considered in the setting of targets and thresholds (first year impact). |
(in thousands, except for ratio) | Year Ended December 31, | ||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Computation of earnings | |||||||||||||||||||
Pretax income (loss) (a) | $ | (37,248 | ) | $ | 11,660 | $ | (43,488 | ) | $ | 87,623 | $ | 80,808 | |||||||
Add: | |||||||||||||||||||
Interest expense on indebtedness | 21,567 | 21,119 | 20,072 | 21,760 | 20,860 | ||||||||||||||
Amortization of debt issue costs | 1,562 | 1,099 | 1,065 | 1,375 | 1,594 | ||||||||||||||
Interest portion of rent expense (b) | 7,494 | 9,833 | 9,108 | 7,702 | 7,730 | ||||||||||||||
Distributed income of equity investees | 6,070 | 24,451 | 31,117 | 125,058 | 17,780 | ||||||||||||||
Earnings | $ | (555 | ) | $ | 68,162 | $ | 17,874 | $ | 243,518 | $ | 128,772 | ||||||||
Computation of fixed charges | |||||||||||||||||||
Interest expense on indebtedness | $ | 21,567 | $ | 21,119 | $ | 21,119 | $ | 21,760 | $ | 20,860 | |||||||||
Amortization of debt issue costs | 1,562 | 1,099 | 1,099 | 1,375 | 1,594 | ||||||||||||||
Interest portion of rent expense (b) | 7,494 | 9,833 | 9,108 | 7,730 | 7,730 | ||||||||||||||
Fixed charges | $ | 30,623 | $ | 32,051 | $ | 31,326 | $ | 30,865 | $ | 30,184 | |||||||||
Ratio of earnings to fixed charges | (0.02 | ) | 2.13 | 0.57 | 7.89 | 4.27 |
Subsidiary | Place of Organization |
The Andersons, Ltd. | Canada |
The Andersons Agriculture Group, L.P. | Ohio |
The Andersons AgVantage Agency, LLC | Ohio |
The Andersons ALACO Lawn, Inc. | Alabama |
The Andersons Canada, Inc. | Ohio |
The Andersons Ethanol Investment, LLC | Ohio |
The Andersons Ethanol Champaign LLC | Ohio |
The Andersons Ethanol Investment II LLC | Ohio |
The Andersons Denison Ethanol LLC | Delaware |
The Andersons Executive Services LLC | Ohio |
The Andersons Farm Development Co., LLC | Ohio |
Andersons Lux Holdco S.A.R.L. | Luxembourg |
The Andersons Rail Management Company LLC | Ohio |
The Andersons Rail Operating I, LLC | Delaware |
The Andersons ECO Services LLC | Ohio |
The Andersons Winona Terminal, LLC | Minnesota |
Cap Acquire LLC | Delaware |
Cap Acquire Mexico S. de R.L. de C.V. | Mexico |
Kay Flo Industries, Inc. | Iowa |
Liqui Fert Corporation | Puerto Rico |
Maumee Ventures LLC | Ohio |
Metamora Commodity Company Incorporated | Ohio |
Mineral Processing Company | Ohio |
NARCAT LLC | Delaware |
NARCAT Mexico S. De R.L. de C.V. | Mexico |
New Eezy-Gro Inc. | Ohio |
NuRail USA LLC | Ohio |
NuRail Canada ULC | Nova Scotia |
Nutra-Flo Company | Iowa |
TAI Holdings, Inc. | Michigan |
TOP CAT Holding Co. | Delaware |
1 | I have reviewed this report on Form 10-K of The Andersons, Inc. |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4 | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5 | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Patrick E. Bowe | |
Patrick E. Bowe | |
Chief Executive Officer (Principal Executive Officer) |
1 | I have reviewed this report on Form 10-K of The Andersons, Inc. |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4 | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5 | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ John J. Granato | |
John J. Granato | |
Chief Financial Officer (Principal Financial Officer) |
(1) | The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report. |
/s/ Patrick E. Bowe | |
Patrick E. Bowe | |
Chief Executive Officer | |
/s/ John J. Granato | |
John J. Granato | |
Chief Financial Officer | |
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Document and Entity Information - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Feb. 15, 2018 |
Jun. 30, 2017 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Andersons, Inc. | ||
Entity Central Index Key | 0000821026 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 28.2 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 918.1 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
Change in estimated fair value of investment in debt securities, tax | $ 0 | $ 74 | $ 0 |
Unrecognized actuarial loss and prior service cost, income taxes | 1,809 | (4,355) | (24,746) |
Foreign currency translation adjustment, tax | 0 | 82 | 947 |
Income tax on cash flow hedge activity | $ 0 | $ (72) | $ (154) |
Consolidated Balance Sheets - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|
Current assets: | ||||
Cash and cash equivalents | $ 34,919,000 | $ 62,630,000 | ||
Restricted cash | 0 | 471,000 | ||
Accounts receivable, less allowance for doubtful accounts of $9,156 in 2017; $7,706 in 2016 | 183,238,000 | 194,698,000 | ||
Inventories | 648,703,000 | 682,747,000 | ||
Commodity derivative assets – current | 30,702,000 | 45,447,000 | ||
Other current assets | 63,790,000 | 72,133,000 | ||
Assets held for sale | 37,859,000 | 0 | ||
Total current assets | 999,211,000 | 1,058,126,000 | ||
Other assets: | ||||
Commodity derivative assets – noncurrent | 310,000 | 100,000 | ||
Goodwill | 6,024,000 | 63,934,000 | ||
Other intangible assets, net | 112,893,000 | 106,100,000 | ||
Other assets | 12,557,000 | 10,411,000 | ||
Equity method investments | 223,239,000 | 216,931,000 | ||
Investments and Other Noncurrent Assets | 355,023,000 | 397,476,000 | ||
Rail Group assets leased to others, net | 423,443,000 | 327,195,000 | ||
Property, plant and equipment, net | 384,677,000 | 450,052,000 | ||
Total assets | 2,162,354,000 | 2,232,849,000 | ||
Current liabilities: | ||||
Short-term debt | 22,000,000 | 29,000,000 | ||
Trade and other payables | 503,571,000 | 581,826,000 | ||
Customer prepayments and deferred revenue | 59,710,000 | 48,590,000 | ||
Commodity derivative liabilities – current | 29,651,000 | 23,167,000 | ||
Accrued expenses and other current liabilities | 69,579,000 | 69,648,000 | ||
Current maturities of long-term debt | 54,205,000 | 47,545,000 | ||
Total current liabilities | 738,716,000 | 799,776,000 | ||
Other long-term liabilities | 33,129,000 | 27,833,000 | ||
Commodity derivative liabilities – noncurrent | 825,000 | 339,000 | ||
Employee benefit plan obligations | 26,716,000 | 35,026,000 | ||
Long-term debt, less current maturities | 418,339,000 | 397,065,000 | ||
Deferred income taxes | 121,730,000 | 182,113,000 | ||
Total liabilities | 1,339,455,000 | 1,442,152,000 | ||
Commitments and contingencies | ||||
Shareholders’ equity: | ||||
Common shares, without par value (63,000 shares authorized; 29,430 shares issued in 2017 and 2016) | 96,000 | 96,000 | ||
Preferred shares, without par value (1,000 shares authorized; none issued) | 0 | 0 | ||
Additional paid-in-capital | 224,622,000 | 222,910,000 | ||
Treasury shares, at cost (1,063 in 2017; 1,201 in 2016) | (40,312,000) | (45,383,000) | ||
Accumulated other comprehensive loss | [1] | (2,700,000) | (12,468,000) | |
Retained earnings | 633,496,000 | 609,206,000 | ||
Total shareholders’ equity of The Andersons, Inc. | 815,202,000 | 774,361,000 | ||
Noncontrolling interests | 7,697,000 | 16,336,000 | ||
Total equity | 822,899,000 | 790,697,000 | ||
Total liabilities and equity | $ 2,162,354,000 | $ 2,232,849,000 | ||
|
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 6,938 | $ 7,706 |
Common shares, par value (dollars per share) | ||
Common shares, shares authorized (shares) | 63,000,000 | 63,000,000 |
Common shares, shares issued (shares) | 29,430,000 | 29,430,000 |
Preferred shares, par value (dollars per share) | $ 0 | $ 0 |
Preferred shares, shares authorized (shares) | 1,000,000 | 1,000,000 |
Preferred shares, shares issued (shares) | 0 | 0 |
Treasury shares, at cost (shares) | 1,063,000 | 1,201,000 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Operating Activities | |||
Net income (loss) | $ 42,609 | $ 14,470 | $ (11,322) |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 86,412 | 84,325 | 78,456 |
Bad debt expense | 3,000 | 1,191 | 3,302 |
Equity in (earnings) losses of affiliates, net of dividends | (10,494) | 14,766 | (677) |
Gain on sale of assets | (14,401) | (667) | (20,802) |
Gains on sales of Rail Group assets and related leases | (10,990) | (11,019) | (13,281) |
Deferred income taxes | (63,234) | 6,030 | 27,279 |
Stock based compensation expense | 6,097 | 6,987 | 1,899 |
Pension settlement charge, net of cash contributed | 0 | 0 | 48,344 |
Goodwill impairment | 59,081 | 0 | 56,166 |
Asset impairment | 10,913 | 9,107 | 285 |
Other | (55) | (2,070) | (1,439) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 9,781 | (26,429) | 45,058 |
Inventories | 16,141 | 28,165 | 73,350 |
Commodity derivatives | 20,285 | (9,990) | 14,098 |
Other assets | (5,623) | 19,407 | (26,315) |
Accounts payable and accrued expenses | (74,237) | (94,688) | (120,267) |
Net cash provided by (used in) operating activities | 75,285 | 39,585 | 154,134 |
Investing Activities | |||
Acquisition of businesses, net of cash acquired | (3,507) | 0 | (128,549) |
Purchases of Rail Group assets | (143,020) | (85,268) | (115,032) |
Proceeds from sale of Rail Group assets | 36,896 | 56,689 | 76,625 |
Purchases of property, plant and equipment and capitalized software | (34,602) | (77,740) | (72,469) |
Proceeds from sale of assets | 33,879 | 69,904 | 284 |
Proceeds from returns of investments in affiliates | 1,069 | 9,186 | 1,620 |
Purchase of investments | (5,679) | (2,523) | (938) |
Other | 1,470 | 1,534 | (21) |
Net cash provided by (used in) investing activities | (113,494) | (28,218) | (238,480) |
Financing Activities | |||
Net change in short-term borrowings | (8,059) | 14,000 | 15,000 |
Proceeds from issuance of long-term debt | 85,175 | 81,760 | 181,767 |
Payments of long-term debt | (57,189) | (97,606) | (92,474) |
Proceeds from long-term financing arrangements | 12,195 | 14,027 | 0 |
Distributions to noncontrolling interest owner | (377) | (5,853) | (3,206) |
Payments of debt issuance costs | (2,024) | (323) | (296) |
Purchases of treasury stock | 0 | 0 | (49,089) |
Dividends paid | (18,152) | (17,362) | (15,921) |
Other | (1,071) | (1,130) | (2,389) |
Net cash provided by (used in) financing activities | 10,498 | (12,487) | 33,392 |
Increase (decrease) in cash and cash equivalents | (27,711) | (1,120) | (50,954) |
Cash and cash equivalents at beginning of year | 62,630 | 63,750 | 114,704 |
Cash and cash equivalents at end of year | $ 34,919 | $ 62,630 | $ 63,750 |
Consolidated Statements of Equity - USD ($) $ in Thousands |
Total |
Common Shares |
Additional Paid-in Capital |
Treasury Shares |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Noncontrolling Interests |
|||
---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance at Dec. 31, 2014 | $ 824,049 | $ 96 | $ 222,789 | $ (9,743) | $ (54,595) | $ 644,556 | $ 20,946 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | (11,322) | (13,067) | 1,745 | |||||||
Other comprehensive loss | 33,656 | [1] | 33,656 | |||||||
Cash distributions to noncontrolling interest | (3,206) | (3,206) | ||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of ($819 (187 shares) in 2015, $458 (196 shares) in 2016 and $323 (138 shares) in 2017 | 1,548 | (4,382) | 5,930 | |||||||
Purchase of treasury shares (1,193 shares in 2015) | (49,089) | (49,089) | ||||||||
Dividends declared ($0.575 in 2015, $0.625 in 2016 and $0.645 in 2017 per share) | (16,200) | (16,200) | ||||||||
Shares issued for acquisitions (77 shares) | 4,303 | 4,303 | ||||||||
Stock award dividend equivalents | 0 | 138 | (138) | |||||||
Ending Balance at Dec. 31, 2015 | 783,739 | 96 | 222,848 | (52,902) | (20,939) | 615,151 | 19,485 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 14,470 | 11,594 | 2,876 | |||||||
Other comprehensive loss | 8,471 | [1] | 8,471 | |||||||
Cash distributions to noncontrolling interest | (5,853) | (5,853) | ||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of ($819 (187 shares) in 2015, $458 (196 shares) in 2016 and $323 (138 shares) in 2017 | 7,556 | 67 | 7,489 | |||||||
Dividends declared ($0.575 in 2015, $0.625 in 2016 and $0.645 in 2017 per share) | (17,514) | (17,514) | ||||||||
Stock award dividend equivalents | 0 | (5) | 30 | (25) | ||||||
Other changes in noncontrolling interest | (172) | |||||||||
Ending Balance at Dec. 31, 2016 | 790,697 | 96 | 222,910 | (45,383) | (12,468) | 609,206 | 16,336 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 42,609 | 42,511 | 98 | |||||||
Other comprehensive loss | 9,768 | [1] | 9,768 | |||||||
Cash distributions to noncontrolling interest | (377) | (377) | ||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of ($819 (187 shares) in 2015, $458 (196 shares) in 2016 and $323 (138 shares) in 2017 | 6,714 | 1,707 | 5,007 | |||||||
Dividends declared ($0.575 in 2015, $0.625 in 2016 and $0.645 in 2017 per share) | (18,152) | (18,152) | ||||||||
Stock award dividend equivalents | 0 | 5 | 64 | (69) | ||||||
Other changes in noncontrolling interest | (8,360) | (8,360) | ||||||||
Ending Balance at Dec. 31, 2017 | $ 822,899 | $ 96 | $ 224,622 | $ (40,312) | $ (2,700) | $ 633,496 | $ 7,697 | |||
|
Consolidated Statements of Equity (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Dividends declared, per common share | $ 0.645 | $ 0.6250 | $ 0.5750 |
Shares issued for acquisitions | 0 | 0 | 77 |
Treasury Shares | |||
Purchase of treasury shares | 1,193 | ||
Additional Paid-in Capital | |||
Income tax on stock option exercise and other shares issued to employees and directors | $ (323) | $ 458 | $ 819 |
Stock option exercises and other shares issued to employees and directors, shares | 138 | 196 | 187 |
Retained Earnings | |||
Dividends declared, per common share | $ 0.645 | $ 0.6250 | $ 0.5750 |
Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation These Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated entities in which the Company has significant influence, but not control, are accounted for using the equity method of accounting. In the opinion of management, all adjustments consisting of normal recurring items, considered necessary for a fair presentation of the results of operations for the periods indicated, have been made. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash and short-term investments with an initial maturity of three months or less. The carrying values of these assets approximate their fair values. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and may bear interest if past due. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed quarterly. The allowance is based both on specific identification of potentially uncollectible accounts and the application of a consistent policy, based on historical experience, to estimate the allowance necessary for the remaining accounts receivable. For those customers that are thought to be at higher risk, the Company makes assumptions as to collectability based on past history and facts about the current situation. Account balances are charged off against the allowance when it becomes more certain that the receivable will not be recovered. The Company manages its exposure to counter-party credit risk through credit analysis and approvals, credit limits and monitoring procedures. Commodity Derivatives and Inventories The Company's operating results can be affected by changes to commodity prices. The Grain and Ethanol businesses have established “unhedged” position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract to mitigate the price risk associated with those contracts and inventory). To reduce the exposure to market price risk on commodities owned and forward grain and ethanol purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. The exchange traded contracts are primarily via the Chicago Mercantile Exchange ("CME".) The forward purchase and sale contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year. The Company accounts for its commodity derivatives at 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, fair value is adjusted for differences in local markets and non-performance risk. While the Company considers certain of its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges. 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 in the Consolidated Statements of Operations. Additional information about the fair value of the Company's commodity derivatives is presented in Notes 6 and 11 to the Consolidated Financial Statements. Grain inventories, which are agricultural commodities and may be acquired under provisionally priced contracts, are stated at their net realizable value, which approximates estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. All other inventories are stated at the lower of cost or net realizable value. Cost is determined by the average cost method. Additional information about inventories is presented in Note 2 to the Consolidated Financial Statements. Derivatives - Master Netting Arrangements Generally accepted accounting principles permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or obligation to return cash collateral under the same master netting arrangement. The Company has master netting arrangements for its exchange traded futures and options contracts and certain over-the-counter contracts. When the Company enters into a futures, options or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a futures, option or an over-the-counter contract moves in a direction that is adverse to the Company's position, an additional margin deposit, called a maintenance margin, is required. The Company nets, by counterparty, its futures and over-the-counter positions against the cash collateral provided or received. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Consolidated Balance Sheets. Additional information about the Company's master netting arrangements is presented in Note 6 to the Consolidated Financial Statements. Derivatives - Interest Rate and Foreign Currency Contracts The Company periodically enters into interest rate contracts to manage interest rate risk on borrowing or financing activities. The Company has interest rate contracts recorded in other assets that are not designated as hedges. While the Company considers all of its derivative positions to be effective economic hedges of specified risks, these interest rate contracts for which hedge accounting is not applied are recorded on the Consolidated Balance Sheets in either other current assets or liabilities (if short-term in nature) or in other assets or other long-term liabilities (if non-current in nature), and changes in fair value are recognized in income as interest expense. Upon termination of a derivative instrument or a change in the hedged item, any remaining fair value recorded on the balance sheet is recorded as interest expense consistent with the cash flows associated with the underlying hedged item. Information regarding the nature and terms of the Company's interest rate derivatives is presented in Note 6 to the Consolidated Financial Statements. Marketing Agreement The Company has a marketing agreement that covers certain of its grain facilities, some of which are leased from Cargill, Incorporated (“Cargill”). Under the five-year amended and restated agreement (renewed in December 2013 and ending May 2018), the Company sells grain from these facilities to Cargill at market prices. Income earned from operating the facilities (including buying, storing and selling grain and providing grain marketing services to its producer customers) over a specified threshold is shared equally with Cargill. Measurement of this threshold is made on a cumulative basis and cash is paid to Cargill on an annual basis. The Company recognizes its pro rata share of income every month and accrues for any payment owed to Cargill. The balance included in customer prepayments and deferred revenue was $3.3 million and $5.8 million as of December 31, 2017 and December 31, 2016, respectively. Rail Group Assets Leased to Others The Company's Rail Group purchases, leases, markets and manages railcars and barges for third parties and for internal use. Rail Group assets to which the Company holds title are shown on the balance sheet in one of two categories - other current assets (for those that are available for sale) or Rail Group assets leased to others. Rail Group assets leased to others, both on short and long-term leases, are classified as long-term assets and are depreciated over their estimated useful lives. Railcars have statutory lives of either 40 or 50 years, measured from the date built. Barges have estimated lives of 30 to 40 years, measured from the date built. At the time of purchase, the remaining life is used in determining useful lives which are depreciated on a straight-line basis. Repairs and maintenance costs are charged to expense as incurred. Additional information regarding Rail Group assets leased to others is presented in Note 3 to the Consolidated Financial Statements. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Repairs and maintenance costs are charged to expense as incurred, while betterments that extend useful lives are capitalized. Depreciation is provided over the estimated useful lives of the individual assets, by the straight-line method. Estimated useful lives are generally as follows: land improvements - 16 years; leasehold improvements - the shorter of the lease term or the estimated useful life of the improvement, ranging from 3 to 20 years; buildings and storage facilities - 10 to 40 years; and machinery and equipment - 3 to 20 years. The cost of assets retired or otherwise disposed of and the accumulated depreciation thereon are removed from the accounts, with any gain or loss realized upon sale or disposal credited or charged to operations. Additional information regarding the Company's property, plant and equipment is presented in Note 3 to the Consolidated Financial Statements. Deferred Debt Issue Costs Costs associated with the issuance of debt are deferred. These costs are amortized, as a component of interest expense, over the earlier of the stated term of the debt or the period from the issue date through the first early payoff date without penalty, or the expected payoff date if the loan does not contain a prepayment penalty. Deferred costs associated with the borrowing arrangement with a syndication of banks are amortized over the term of the agreement. Goodwill and Intangible Assets Goodwill is not amortized but is subject to annual impairment tests or more often when events or circumstances indicate that the carrying amount of goodwill may be impaired. A goodwill impairment loss is recognized to the extent the carrying amount of goodwill exceeds the implied fair value of goodwill. Additional information about the Company's goodwill and other intangible assets is presented in Note 4 to the Consolidated Financial Statements. Acquired intangible assets are recorded at cost, less accumulated amortization, if not indefinite lived. In addition, we capitalize the salaries and payroll-related costs of employees and consultants who devote time to the development of internal-use software projects. If a project constitutes an enhancement to previously-developed software, we assess whether the enhancement is significant and creates additional functionality to the software, thus qualifying the work incurred for capitalization. Once a project is complete, we estimate the useful life of the internal-use software, and we periodically assess whether the software is impaired. Changes in our estimates related to internal-use software would increase or decrease operating expenses or amortization recorded during the period. Amortization of intangible assets is provided over their estimated useful lives (generally 3 to 10 years) on the straight-line method. Impairment of Long-lived Assets Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the assets to the undiscounted future net cash flows the Company expects to generate with the assets. If such assets are considered to be impaired, the Company recognizes an impairment loss for the amount by which the carrying amount of the assets exceeds the fair value of the assets. Provisionally Priced Grain Contracts Accounts payable includes certain amounts related to grain purchases for which, even though the Company has taken ownership and possession of the grain, the final purchase price has not been fully established. If the futures and basis components are unpriced, it is referred to as a delayed price payable. If the futures component has not been established, but the basis has been set, it is referred to as a basis payable. The unpriced portion of these payables will be exposed to changes in the fair value of the underlying commodity based on quoted prices on commodity exchanges (or basis levels). Those payables that are fully priced are not considered derivative instruments. The Company also enters into contracts with customers for risk management purposes that allow the 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 Chicago Board of Trade ("CBOT") prices. See Note 11 for additional discussion on these instruments. Stock-Based Compensation Stock-based compensation expense for all stock-based compensation awards is based on the estimated grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, adjusted for revisions to performance expectations. Additional information about the Company's stock compensation plans is presented in Note 16 to the Consolidated Financial Statements. Deferred Compensation Liability Included in accrued expenses are $9.6 million and $9.7 million at December 31, 2017 and 2016, respectively, of deferred compensation for certain employees who, due to Internal Revenue Service guidelines, may not take full advantage of the Company's qualified defined contribution plan. Assets funding this plan are recorded at fair value in other current assets and have been classified as trading securities with changes in the fair value recorded in earnings as a component of other income, net. Changes in the fair value of the deferred compensation liability are reflected in earnings as a component of operating, administrative, and general expenses. Revenue Recognition The Company follows a policy of recognizing sales revenue at the time of delivery of the product and when all of the following have occurred: a sales agreement is in place, pricing is fixed or determinable, and collection is reasonably assured. Sales of grain and ethanol are primarily recognized at the time of shipment, which is when title and risk of loss transfers to the customer. There are certain transactions that allow for pricing to occur after title of the goods has passed to the customer. In these cases, the Company continues to report the goods in inventory until it recognizes the sales revenue once the price has been determined. Direct ship grain sales (where the Company never takes physical possession of the grain) are recognized when the grain arrives at the customer's facility. Revenues from other grain and ethanol merchandising activities are recognized as services are provided. Sales of other products are recognized at the time title and risk of loss transfers to the customer, which is generally at the time of shipment or, in the case of the retail store sales, when the customer takes possession of the goods. Revenues for all other services are recognized as the service is provided. Certain of the Company's operations provide for customer billings, deposits or prepayments for product that is stored at the Company's facilities. The sales and gross profit related to these transactions are not recognized until the product is shipped in accordance with the previously stated revenue recognition policy and these amounts are classified as a current liability titled “Customer prepayments and deferred revenue”. Rental revenues on operating leases are recognized on a straight-line basis over the term of the lease. Sales to financial intermediaries of owned railcars or other assets which are subject to an operating lease (with the Company being the lessor in such operating leases prior to the sale, referred to as a “non-recourse transaction”) are recognized as revenue on the date of sale if the Company does not maintain substantial risk of ownership in the sold assets. Revenue related to railcar or other asset servicing and maintenance contracts is recognized over the term of the lease or service contract. Sales returns and allowances are provided for at the time sales are recorded based on historical experience. Shipping and handling charges are included in cost of sales. Sales taxes and motor fuel taxes on ethanol sales are presented on a net basis and are excluded from revenues. Rail Lease Accounting In addition to the sale of Rail Group assets that the Company makes to financial intermediaries on a non-recourse basis and records as revenue as discussed above, the Company also acts as the lessor and / or the lessee in various leasing arrangements as described below. The Company's Rail Group leases assets to customers, manages assets for third parties and leases assets for internal use. The Company acts as the lessor in various operating leases of assets that are owned by the Company, or leased by the Company from financial intermediaries and, in turn, leased by the Company to end-users of the assets. The leases from financial intermediaries are generally structured as sale-leaseback transactions, with the leaseback by the Company being treated as an operating lease. Certain of the Company's leases include monthly lease fees that are contingent upon some measure of usage (“per diem” leases). This monthly usage is tracked, billed and collected by third-party service providers and funds are generally remitted to the Company along with usage data three months after they are earned. The Company records lease revenue for these per diem arrangements based on recent historical usage patterns and records a true-up adjustment when the actual data is received. Such true-up adjustments were not significant for any period presented. The Company expenses operating lease payments on a straight-line basis over the lease term. Additional information about leasing activities is presented in Note 14 to the Consolidated Financial Statements. Income Taxes Income tax expense for each period includes current tax expense plus deferred expense, which is related to the change in deferred income tax assets and liabilities. Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of assets and liabilities and are measured using enacted tax rates and laws governing periods in which the differences are expected to reverse. The Company evaluates the realizability of deferred tax assets and provides a valuation allowance for amounts that management does not believe are more likely than not to be recoverable, as applicable. The annual effective tax rate is determined by income tax expense, described above, from continuing operations, described above, as a percentage of pretax book income. Differences in the effective tax rate and the statutory tax rate may be due to permanent items, tax credits, foreign tax rates and state tax rates in jurisdictions in which the Company operates, or changes in valuation allowances. The Company records reserves for uncertain tax positions when, despite the belief that tax return positions are fully supportable, it is anticipated that certain tax return positions are likely to be challenged and that the Company may not prevail. These reserves are adjusted in light of changing facts and circumstances, such as the progress of a tax audit or the lapse of statutes of limitations. Additional information about the Company’s income taxes is presented in Note 8 to the Consolidated Financial Statements. Employee Benefit Plans The Company provides full-time employees hired before January 1, 2003 with postretirement health care benefits. In order to measure the expense and funded status of these employee benefit plans, management makes several estimates and assumptions, including employee turnover rates, anticipated mortality rates and anticipated future healthcare cost trends. These estimates and assumptions are based on the Company's historical experience combined with management's knowledge and understanding of current facts and circumstances. The selection of the discount rate is based on an index given projected plan payouts. Additional information about the Company's employee benefit plans is presented in Note 7 to the Consolidated Financial Statements. Advertising Advertising costs are expensed as incurred. Advertising expense of $2.5 million, $4.9 million and $5.2 million in 2017, 2016, and 2015, respectively, is included in operating, administrative and general expenses. New Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (ASC 606). The FASB issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10 ASU 2016-12 and ASU 2016-20, respectively. The core principle of the new revenue standard is that an entity recognizes revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new revenue standard is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company adopted the standard on January 1, 2018, using the modified retrospective method. The adoption of this new guidance will require expanded disclosures in the Company’s consolidated financial statements including separate quantitative disclosure of revenues within the scope of ASC 606 and revenues excluded from the scope of ASC 606. The Company has assessed the impact of this standard by reviewing representative samples of customer contracts for each revenue stream, analyzing those contracts under the new revenue standard, and comparing the conclusions to the current accounting policies and practices to identify potential changes. As a result of this assessment, which was completed during the fourth quarter of 2017, the Company believes the following items will be impacted upon adoption: - Revenues not in the Scope of ASC 606: Many of the Company's Grain and Ethanol sales contracts are derivatives under ASC 815, Derivatives and Hedging, and therefore will be outside the scope of ASC 606. In addition, the Rail Group's leasing revenue is accounting for under ASC 840, Leases, and will be outside the scope of ASC 606. While we do not believe that the timing or measurement of revenue will be impacted by this conclusion, we will be required to disclose this revenue separately from revenue that is earned from contracts with customers upon adoption of ASC 606. The Company expects approximately 70 percent to 80 percent of consolidated revenues will be accounted for outside the scope of ASC 606, including at least 95 percent of Grain’s revenues, 80 percent to 90 percent of Ethanol’s revenues and 50 percent to 60 percent of Rail's revenues; - Corn Origination Agreements: While these sales contracts will be accounted for under ASC 815, as noted above, we are still required to evaluate the principal versus agent guidance in ASC 606 to determine whether realized gains or losses should be presented on a gross or net basis in the consolidated statements of operations upon physical settlement. Currently the Company presents these amounts on a gross basis as it has concluded, on the basis of risks and rewards, that it is the principal in the contract. However, ASC 606 requires an entity to evaluate whether it is a principal or agent on the basis of control, rather than risks and rewards. The Company has determined that it is the agent in certain origination arrangements within our Grain Group and therefore realized gains or losses will be presented on a net basis upon adoption of ASC 606. However, as this change relates only to presentation within our consolidated statement of income, there will be no impact on gross profit. While the impact is dependent on commodity price levels, the Company expects consolidated revenues and cost of sales to each decrease by approximately 10 percent to 20 percent for the Company and 20 percent to 30 percent for the Grain segment, respectively; - Certain Rail Financing Transactions: In its normal course of operations, the Rail Group enters into transactions with financial institutions in which it agrees to sell railcars to the financial institution in exchange for an upfront payment. Each of the railcars included in a transaction are subject to existing operating leases at the time of sale and the Rail Group assigns all of its rights and obligations pursuant to the underlying lease agreements to financial institution on a non-recourse basis. In such arrangements, the group typically also provides ongoing maintenance and management services related to the cars on behalf of the financial institution in exchange for a stated monthly fee. The group typically holds an option to repurchase the assets at the end of the underlying lease term. Due to the fact that the group holds an option to repurchase the railcars at the end of the lease term, the group has concluded that it does not transfer control of those railcars to the financial institution and therefore such transactions will no longer be treated as sales upon adoption of ASC 606. Rather, these transactions will be accounted for as collateralized borrowings in which the cash received from the financial institution will be recorded as a financial liability and the railcars will remain recorded as assets within the “Rail Group assets leased to others, net” financial statement caption. Upon adoption, the Company will recognize a cumulative catch-up transition adjustment in beginning retained earnings at January 1, 2018 for non-recourse financing transactions that are open and have not yet recognized substantially all of the revenue under the contract as of December 31, 2017. The effect of this transition adjustment will be to recognize the railcar assets at their net book value and a financial liability representing the remaining amount owed to the financial institution. This will result in $25 million increase in Rail Group net assets, $43 million increase in financing liabilities and deferred tax liabilities and $18 million decrease to retained earnings. Leasing In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). ASC 842 supersedes the current accounting for leases. The new standard, while retaining two distinct types of leases, finance and operating, (i) requires lessees to record a right of use asset and a related liability for the rights and obligations associated with a lease, regardless of lease classification, and recognize lease expense in a manner similar to current accounting, (ii) eliminates current real estate specific lease provisions, (iii) modifies the lease classification criteria and (iv) aligns many of the underlying lessor model principles with those in the new revenue standard. ASC 842 is effective for fiscal years beginning after December 15, 2018, and interim periods within. Early adoption is permitted, however the Company does not plan to early adopt. Entities are required to use a modified retrospective approach when transitioning to ASC 842 for leases that exist as of or are entered into after the beginning of the earliest comparative period presented in the financial statements. The Company expects this standard to have the effect of bringing certain off balance-sheet rail assets noted in Item 7 of Form 10-K onto the balance sheet along with a corresponding liability for the associated obligations. Additionally, we have other arrangements currently classified as operating leases which will be recorded as a right of use asset and corresponding liability on the balance sheet. We are currently evaluating the impact these changes will have on the consolidated financial statements. Other applicable standards In August 2017, the FASB issued Accounting Standards Update No. 2017-12 Targeted Improvements to Accounting for Hedging Activities. This standard simplifies the recognition and presentation of changes in the fair value of hedging instruments. The ASU is effective for annual periods beginning December 15, 2018. The Company does not expect the impact from adoption of this standard to be material to its Consolidated Financial Statements and disclosures. In May 2017, the FASB issued Accounting Standards Update No. 2017-09 Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This standard states that if the vesting conditions, fair value, and classification of the awards are the same immediately before and after the modification an entity would not apply modification accounting. The ASU is effective for annual periods beginning after December 15, 2017. Early adoption is permitted, however the Company has not chosen to do so at this time. The Company does not expect the impact from adoption of this standard to be material. In March 2017, the FASB issued Accounting Standards Update No. 2017-07 Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard requires that the service cost component be reported in the same line item as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit costs should be presented in the income statement separately from the service cost component and outside of income from operations if that subtotal is presented. The ASU is effective for annual periods beginning after December 15, 2017. The Company does not expect the impact from adoption of this standard to be material to its Consolidated Financial Statements and disclosures. In January 2017, the FASB issued ASU No. 2017-04 Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. The ASU is effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted, and the Company elected to implement this standard in the second quarter of 2017. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard clarifies how companies present and classify certain cash receipts and payments in the statement of cash flows. The standard is effective for annual and interim periods beginning after December 15, 2017. At adoption, the Company will elect to continue classifying distributions from equity method investments using the cumulative earnings approach which is consistent with current practice. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This update changes the accounting for credit losses on loans and held-to-maturity debt securities and requires a current expected credit loss (CECL) approach to determine the allowance for credit losses. This includes allowances for trade receivables. The Company has not historically incurred significant credit losses and does not currently anticipate circumstances that would lead to a CECL approach differing from the Company's existing allowance estimates in a material way. The guidance is effective for fiscal years beginning after December 15, 2019 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. Early adoption is permitted, however the Company does not plan to do so. In January, 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. This standard provides guidance for the recognition, measurement, presentation, and disclosure of financial instruments. This guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted. The Company does not expect the impact from adoption of this standard to be material to currently held financial assets and liabilities. |
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Inventories | Inventories Major classes of inventories are as follows:
Inventories on the Consolidated Balance Sheets at December 31, 2017 and 2016 do not include 1.0 million and 0.9 million bushels of grain, respectively, held in storage for others. The Company does not have title to the grain and is only liable for any deficiencies in grade or shortage of quantity that may arise during the storage period. Management has not experienced historical losses on any deficiencies and does not anticipate material losses in the future. |
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Property, Plant and Equipment | Property, Plant and Equipment The components of property, plant and equipment are as follows:
Depreciation expense on property, plant and equipment amounted to $48.3 million, $48.9 million and $46.4 million for the years ended 2017, 2016 and 2015, respectively. In December 2017, the Company recorded charges totaling $10.9 million for impairment of property, plant and equipment in the Grain segment, of which $5.6 million relates to assets that are deemed held and used and $5.3 million related to assets that have been reclassed as assets held for sale at December 31, 2017. The Company wrote down the value of these assets to the extent their carrying amounts exceeded fair value. The Company classified the significant assumptions used to determine the fair value of the impaired assets as Level 3 inputs in the fair value hierarchy. In December 2016, the Company recorded charges totaling $6.0 million for impairment of property, plant and equipment in the Retail segment. This does not include $0.5 million of impairment charges related to software. The Company also recorded charges totaling $2.3 million for impairment of property, plant and equipment in the Plant Nutrient segment due to the closing of a cob facility. Rail Group Assets The components of the Rail Group assets leased to others are as follows:
Depreciation expense on Rail Group assets leased to others amounted to $20.0 million, $18.6 million and $17.6 million for the years ended 2017, 2016 and 2015, respectively. Sale of Assets During 2017, the Company sold three of its retail properties for $14.7 million and recorded a $8.6 million gain in Other income, net. Additionally, the Company recorded a $1.2 million gain in Other income, net for the sales of fixtures. On March 31, 2017 the Company sold four farm center locations in Florida for $17.4 million and recorded a $4.7 million gain, net of transaction costs in Other income, net. The sale price included a working capital adjustment of $3.6 million. On May 2, 2016 the Company sold eight grain and agronomy locations in Iowa for $54.3 million and recorded a nominal gain. |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2017, 2016 and 2015 are as follows:
Goodwill for the Grain segment is $1.2 million and net of accumulated impairment losses of $46.4 million as of December 31, 2017. Goodwill for the Plant Nutrient segment is $0.7 million and net of accumulated impairment losses of $68.9 million as of December 31, 2017. Goodwill is tested for impairment annually as of October 1, or more frequently if impairment indicators arise. Upon early adoption of ASU No. 2017-04 during the second quarter of 2017, the Company now uses a one-step quantitative approach that compares the BEV of each reporting unit with its carrying value. The BEV was computed based on both an income approach (discounted cash flows) and a market approach. The income approach uses a reporting unit's estimated future cash flows, discounted at the weighted average cost of capital of a hypothetical third-party buyer. The market approach estimates fair value by applying cash flow multiples to the reporting unit's operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics to the reporting unit. Any excess of the carrying value of the goodwill over the BEV will be recorded as an impairment loss. The calculation of the BEV is based on significant unobservable inputs, such as price trends, customer demand, material costs and discount rates, and are classified as Level 3 in the fair value hierarchy. While performing the annual assessment of goodwill impairment in 2017, the Company recorded an impairment loss related to the Wholesale reporting unit for $17.1 million. The discounted cash flow model used for the income approach assumed discrete period revenue growth through 2022 that was reflective of market opportunities, changes in product mix, and cyclical trends within the Wholesale reporting unit. In the terminal year, the Company assumed a long-term earnings growth rate of 2.0 percent that is believed to be appropriate given the current industry-specific expectations. As of the valuation date, the Company utilized a weighted-average cost of capital of 10.4 percent, which reflects the relative risk and time value of money. This is in addition to the $42.0 million of impairment recorded in the Wholesale reporting unit in the second quarter of this year. As a result, there is no remaining goodwill in the Wholesale reporting unit as of December 31, 2017. No other impairments were incurred in the remaining reporting units as a result of the annual assessment. In 2016 and 2015, the Company performed a two-step quantitative assessment of goodwill. Step 1 compares the business enterprise value ("BEV") of each reporting unit with its carrying value, as described above. If the BEV is less than the carrying value for any reporting unit, then Step 2 must be performed. Step 2 compares the implied fair value of goodwill with the carrying amount of goodwill. Any excess of the carrying value of the goodwill over the implied fair value will be recorded as an impairment loss. The calculations of the BEV in Step 1 and the implied fair value of goodwill in Step 2 are based on significant unobservable inputs, such as price trends, customer demand, material costs, discount rates and asset replacement costs, and are classified as Level 3 in the fair value hierarchy. There is a certain degree of uncertainty associated with the key assumptions used. Potential events or changes in circumstances that could reasonably be expected to negatively affect the key assumptions include significant volatility in commodity prices or raw material prices and unanticipated changes in the economy or industries within which the businesses operate. No goodwill impairment charges were incurred in 2016 as a result of our annual impairment testing. While performing the annual assessment of goodwill impairment in 2015, the Company recorded impairment losses related to our Grain and Farm Center reporting units of $54.2 million due to compressed margins over the past several years and anticipated unfavorable operating conditions in domestic and global commodity markets, including oil and ethanol, as well as foreign exchange impacts. This is in addition to the $2.0 million of impairment related to our Cob business which was recognized in the third quarter of that year. The Company's other intangible assets are as follows:
Amortization expense for intangible assets was $18.1 million, $16.8 million and $14.5 million for 2017, 2016 and 2015, respectively. Expected future annual amortization expense is as follows: 2018 -- $18.9 million; 2019 -- $18.0 million; 2020 -- $16.7 million; 2021 -- $15.7 million; and 2022 -- $14.0 million. In December 2016, the Company recorded a $0.5 million impairment related to software in the Retail Group. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Borrowing Arrangements On April 13, 2017, the Company amended its line of credit agreement with a syndicate of banks. The amended agreement provides for a credit facility in the amount of $800 million. The Company can designate up to $400 million of borrowings as long-term when the debt is used for long-term purposes, such as replacing long-term debt that is maturing, funding the purchase of long-term assets, or increasing permanent working capital when needed. It also provides the Company with up to $90 million in letters of credit. Any amounts outstanding on letters of credit will reduce the amount available on the lines of credit. The Company had standby letters of credit outstanding of $32.5 million at December 31, 2017. As of December 31, 2017, the Company had $122.0 million of outstanding borrowings on the lines of credit of which $22.0 million is classified as short-term debt. Borrowings under the lines of credit bear interest at variable interest rates, which are based off LIBOR plus an applicable spread. The maturity date for the line of credit is April 2022. Draw downs and repayments that are less than 90 days are recorded on a net basis in the Consolidated Statements of Cash Flows. The Company also has a line of credit related to The Andersons Denison Ethanol LLC ("TADE"), a consolidated subsidiary. TADE amended its borrowing arrangement with a syndicate of financial institutions in the fourth quarter of 2017 which provided a $15.0 million long-term line of credit. TADE had no outstanding borrowings under this line of credit as of December 31, 2017. Borrowings under the lines of credit and the term loan bear interest at variable interest rates, which are based off LIBOR plus an applicable spread. The maturity date is July 1, 2021 for the long-term line of credit. TADE was in compliance with all financial and non-financial covenants as of December 31, 2017, including but not limited to minimum working capital and net worth. TADE debt is collateralized by the mortgage on the ethanol facility and related equipment or other assets and is not guaranteed by the Company, therefore it is considered non-recourse debt. The Company’s short-term and long-term debt at December 31, 2017 and 2016 consisted of the following:
The following information relates to short-term borrowings:
Long-Term Debt Recourse Debt Long-term debt consists of the following:
(a) Debt is collateralized by first mortgages on certain facilities and related equipment or other assets with a book value of $159.9 million The Company's short-term and long-term borrowing agreements include both financial and non-financial covenants that, among other things, require the Company at a minimum to maintain:
The Company was in compliance with these financial covenants at and during the years ended December 31, 2017 and 2016. The aggregate annual maturities of long-term debt are as follows: 2018 -- $54.6 million; 2019 -- $12.1 million; 2020 -- $20.8 million; 2021 -- $35.6 million; 2022 -- $150.8 million; and $202.3 million thereafter. Non-Recourse Debt The Company's non-recourse debt, including the lines of credit, held by TADE includes separate financial covenants relating solely to the collateralized TADE assets. The covenants require the following:
The Company was in compliance with these financial covenants at and during the years ended December 31, 2017 and 2016. |
Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives Commodity Contracts The Company’s operating results are affected by changes to commodity prices. The Grain and Ethanol businesses have established “unhedged” position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract to lock in the price). To reduce the exposure to market price risk on commodities owned and forward grain and ethanol purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over the counter forward and option contracts with various counterparties. These contracts are primarily traded via the regulated CME. The Company’s forward purchase and sales contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year. All of these contracts meet the definition of derivatives. While the Company considers its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges as defined under current accounting standards. The Company accounts for its commodity derivatives at estimated fair value. The estimated fair value of the commodity derivative contracts that require the receipt or posting of cash collateral is recorded on a net basis (offset against cash collateral posted or received, also known as margin deposits) within commodity derivative assets or liabilities. Management determines fair value based on exchange-quoted prices and in the case of its forward purchase and sale contracts, estimated fair value is adjusted for differences in local markets and non-performance risk. For contracts for which physical delivery occurs, balance sheet classification is based on estimated delivery date. For futures, options and over-the-counter contracts in which physical delivery is not expected to occur but, rather, the contract is expected to be net settled, the Company classifies these contracts as current or noncurrent assets or liabilities, as appropriate, based on the Company’s expectations as to when such contracts will be settled. Realized and unrealized gains and losses in the value of commodity contracts (whether due to changes in commodity prices, changes in performance or credit risk, or due to sale, maturity or extinguishment of the commodity contract) and grain inventories are included in cost of sales and merchandising revenues. Generally accepted accounting principles permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or obligation to return cash collateral under the same master netting arrangement. The Company has master netting arrangements for its exchange traded futures and options contracts and certain over-the-counter contracts. When the Company enters into a 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 Consolidated Balance Sheets. The following table presents at December 31, 2017 and 2016, a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted/received as collateral. The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within current or noncurrent commodity derivative assets (or liabilities) on the Consolidated Balance Sheets:
The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities:
The net pre-tax gains on commodity derivatives not designated as hedging instruments included in the Company’s Consolidated Statements of Operations and the line items in which they are located for the years ended December 31, 2017, 2016, and 2015 are as follows:
The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) as of December 31, 2017 and 2016:
Interest Rate and Other Derivatives The Company periodically enters into interest rate contracts to manage interest rate risk on borrowing or financing activities. While the Company considers all of its interest rate derivative positions to be effective economic hedges of specified risks, these interest rate contracts are recorded on the balance sheet in other current assets or liabilities (if short-term in nature) or in other assets or other long-term liabilities (if non-current in nature) and changes in fair value are recognized currently in earnings as a component of interest expense. The Company also has foreign currency derivatives which are considered effective economic hedges of specified economic risks. The following table presents the open interest rate contracts at December 31, 2017:
At December 31, 2017 and 2016, the Company had recorded the following amounts for the fair value of the Company's other derivatives not designated as hedging instruments:
The gains and losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for derivatives not designated as hedging instruments are as follows:
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Employee Benefit Plans |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans The Company provides certain full-time employees with pension benefits under defined benefit and defined contribution plans. The measurement date for all plans is December 31. The Company's expense for its defined contribution plans amounted to $7.3 million in 2017, $7.8 million in 2016 and $8.7 million in 2015. The Company also provides health insurance benefits to certain employees and retirees. The Company has an unfunded noncontributory defined benefit pension plan. The plan provides defined benefits based on years of service and average monthly compensation using a career average formula. Pension benefits were frozen at July 1, 2010. The Company also had a funded defined benefit plan which was terminated in 2015. Effective December 2015, the funded defined benefit plan (the "Plan") was amended to include a lump-sum pension benefit payout option for certain plan participants. In addition, in December 2015, the Plan completed the purchase of group annuity contracts that transferred the liability for the remaining retirees and active employees who did not elect a lump sum option to an insurance company. As a result of these changes, we recognized pension settlement charges of $31.9 million after tax ($51.4 million pre-tax) during the twelve months ended December 31, 2015. The Company also has postretirement health care benefit plans covering substantially all of its full time employees hired prior to January 1, 2003. These plans are generally contributory and include a cap on the Company's share of the related costs. Obligation and Funded Status Following are the details of the obligation and funded status of the pension and postretirement benefit plans:
Amounts recognized in the Consolidated Balance Sheets at December 31, 2017 and 2016 consist of:
Following are the details of the pre-tax amounts recognized in accumulated other comprehensive loss at December 31, 2017:
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year, excluding the impact of the pension termination, are as follows:
Amounts applicable to the Company's defined benefit plans with accumulated benefit obligations in excess of plan assets are as follows:
The combined benefits expected to be paid for all Company defined benefit plans over the next ten years (in thousands) are as follows:
Following are components of the net periodic benefit cost for each year:
Following are weighted average assumptions of pension and postretirement benefits for each year:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax provision (benefit) applicable to continuing operations consists of the following:
Income (loss) before income taxes from continuing operations consists of the following:
A reconciliation from the statutory U.S. federal tax rate to the effective tax rate follows:
Net income tax payments of $2.1 million were paid in 2017. Net income refunds of $10.6 million were received in 2016. Net income taxes of $4.9 million were paid in 2015. Significant components of the Company's deferred tax liabilities and assets are as follows:
On December 22, 2017, the US enacted the Tax Cuts and Jobs Act (the “Act”). The Act, which is also commonly referred to as “US tax reform”, significantly changes US corporate income tax laws by, among other things, reducing the US corporate income tax rate to 21% starting in 2018 and creating a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of US subsidiaries. As a result, the Company recorded a net benefit of $73.5 million during the fourth quarter of 2017. This amount, which is included in tax expense (benefit) in the Consolidated Statement of Income (Loss), consists of two components: (i) a $1.4 million net charge relating to the one-time mandatory tax on previously deferred earnings of certain non-US subsidiaries that are owned either wholly or partially by a US subsidiary of the Company, and (ii) a $74.9 million credit resulting from the remeasurement of the Company's net deferred tax liabilities in the US based on the new lower corporate income tax rate. Although the $73.5 million net benefit represents what the Company believes is a reasonable estimate of the impact of the income tax effects of the Act on the Company's Consolidated Financial Statements as of December 31, 2017, it should be considered provisional. Once the Company finalizes certain tax positions when it files its 2017 US tax return, it will be able to conclude whether any further adjustments are required to its net deferred tax liability balance in the US of $122 million as of December 31, 2017, as well as to the liability associated with the one-time mandatory tax. Any adjustments to these provisional amounts will be reported as a component of Tax expense (benefit) in the reporting period in which any such adjustments are determined, which will be no later than the fourth quarter of 2018. On December 31, 2017, the Company had $15.7 million, $81.9 million and $0.1 million of U.S. Federal, state and non-U.S. net operating loss carryforwards that begin to expire in 2034, 2018 and 2035, respectively. The Company also has $7.1 million of general business credits that expire after 2036 and $3.1 million of foreign tax credits that begin to expire after 2025. During 2016, the Company entered into agreements with several unrelated third-parties to fund qualified railroad track maintenance expenditures. In return, railroad track miles were assigned to the Company which enabled the Company to claim railroad track maintenance credits pursuant to section 45G of the Internal Revenue Code of 1986. $2.6 million of tax benefit was realized as a result of the agreements for the year ended December 31, 2016, resulting in a $0.9 million current tax provision benefit. As of December 31, 2016, $6.0 million of credits have been deferred to future periods which, upon realization, will result in a $1.8 million current tax provision benefit. The railroad track maintenance credits are general business credits included in federal income tax credits above. The current year impact for the tax period ending December 31, 2017 was immaterial to the overall provision. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. If it is more-likely-than-not that the deferred tax asset will be realized, no valuation allowance is recorded. Management's judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and the valuation allowance recorded against the net deferred tax assets. The valuation allowance would need to be adjusted in the event future taxable income is materially different than amounts estimated. Significant judgments, estimates and factors considered by management in its determination of the probability of the realization of deferred tax assets include:
During the fourth quarter of fiscal year 2017, due to a three-year cumulative loss and future economic uncertainty, we concluded that a valuation allowance was required related to additional State net operating losses. This resulted in a non-cash charge to income tax expense of $0.6 million. The Company or one of its subsidiaries files income tax returns in the U.S., various foreign jurisdictions and various state and local jurisdictions. The Company is no longer subject to examinations by foreign jurisdictions for years before 2012 and is no longer subject to examinations by U.S. tax authorities for years before 2014. The Company is no longer subject to examination by state tax authorities in most states for tax years before 2014. A reconciliation of the January 1, 2015 to December 31, 2017 amount of unrecognized tax benefits is as follows:
The Company anticipates $0.2 million decrease in the reserve during the next 12 months due to the settling of state tax appeals and a lapse in statute of limitations. Dependent upon the lapse in statute of limitations and the outcome of the state tax appeals, the total liability for unrecognized tax benefits as of December 31, 2017 could impact the effective tax rate. The Company has elected to classify interest and penalties as interest expense and penalty expense, respectively, rather than as income tax expense. The Company has $0.3 million accrued for the payment of interest and penalties at December 31, 2017. The net interest and penalties benefit for 2017 is $0.1 million, due to decreased uncertain tax positions. The Company had $0.4 million accrued for the payment of interest and penalties at December 31, 2016. The net interest and penalties expense for 2016 was $0.2 million. |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables summarize the after-tax components of accumulated other comprehensive income (loss) attributable to the Company for the years ended December 31, 2017, 2016, and 2015:
(a) All amounts are net of tax. Amounts in parentheses indicate debits The Following tables show the reclassification adjustments from accumulated other comprehensive income to net income for the years ended December 31, 2017, 2016, and 2015:
(a) Amounts in parentheses indicate debits to profit/loss (b) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (see Note 7. Employee Benefit Plans footnote for additional details) |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Company’s non-vested restricted stock granted is considered a participating security since the share-based awards contain a non-forfeitable right to dividends irrespective of whether the awards ultimately vest. The computation of basic and diluted earnings per share is as follows:
There were 22 thousand antidilutive share-based awards outstanding at December 31, 2017. No antidilutive share-based awards were outstanding at December 31, 2016. All outstanding share-based awards were antidilutive in 2015 as the Company experienced a net loss. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Generally accepted accounting principles define fair value as an exit price and also establish a framework for measuring fair value. An exit price represents the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy is used, which prioritizes the inputs used in measuring fair value as follows:
In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The following tables present the Company's assets and liabilities that are measured at fair value on a nonrecurring basis at December 31, 2017:
The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016:
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 on the CME or the New York Mercantile Exchange for similar commodities and delivery dates as well as observable quotes for local basis adjustments (the difference, which is attributable to local market conditions, between the quoted futures price and the local cash price). Because “basis” for a particular commodity and location typically has multiple quoted prices from other agribusinesses in the same geographical vicinity and is used as a common pricing mechanism in the Agribusiness industry, we have concluded that “basis” is 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 CBOT prices are used and the liability is deemed to be Level 1 in the fair value hierarchy. For all other unpriced contracts which include variable futures and basis components, the amounts recorded for delayed price contracts are determined on the basis of local grain market prices at the balance sheet date and, as such, are deemed to be Level 2 in the fair value hierarchy. The risk management contract liability allows related ethanol customers to effectively unprice the futures component of their inventory for a period of time, subjecting the bushels to market fluctuations. The Company records an asset or liability for the market value changes of the commodities over the life of the contracts based on quoted CBOT prices and as such, the balance is deemed to be Level 1 in the fair value hierarchy. The Company’s stake in the Iowa Northern Railway Company ("IANR") was redeemed in the first quarter of 2016. The remaining convertible preferred securities are interests in several early-stage enterprises in the form of convertible debt and preferred equity securities. A reconciliation of beginning and ending balances for the Company’s recurring fair value measurements using Level 3 inputs is as follows:
The following tables summarize information about the Company's Level 3 fair value measurements as of December 31, 2017 and 2016:
Fair Value of Debt Instruments Certain long-term notes payable and the Company’s debenture bonds bear fixed rates of interest and terms of up to 15 years. Based upon the Company’s credit standing and current interest rates offered by the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities, the Company estimates the fair values of its fixed rate long-term debt instruments outstanding at December 31, 2017 and 2016, as follows:
The fair value of the Company’s cash equivalents, accounts receivable and accounts payable approximate their carrying value as they are close to maturity. |
Related Party Transactions |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions Equity Method Investments The Company, directly or indirectly, holds investments in companies that are accounted for under the equity method. The Company’s equity in these entities is presented at cost plus its accumulated proportional share of income or loss, less any distributions it has received. In January 2003, the Company became a minority investor in LTG, which focuses on grain merchandising as well as trading related to the energy and biofuels industry. The Company accounts for this investment under the equity method. The Company sells and purchases both grain and ethanol with LTG in the ordinary course of business on terms similar to sales and purchases with unrelated customers. On December 4, 2015, LTG agreed to the sale of equity to New Hope Liuhe Investment (USA), Inc., a U.S. subsidiary of the Chinese company, New Hope Liuhe Co. Ltd. New Hope paid cash for a 20 percent equity interest in LTG. The impact of this transaction to the Company is a reduction in total ownership share of LTG from approximately 38.5 percent to 31.0 percent which includes dilution from newly issued shares as well as a redemption of shares that occurred on a pro rata basis between the Company and the other existing owners of LTG. The Company recognized a total gain of $23.1 million on these transactions. Cash of $8.2 million was received of which $1.3 million was a return of capital and $6.7 million was a return on capital. The remainder was a book gain on cash received in excess of basis in the shares redeemed. In 2005, the Company became an investor in The Andersons Albion Ethanol LLC. TAAE is a producer of ethanol and its coproducts DDG and corn oil at its 110 million gallon-per-year ethanol production facility in Albion, Michigan. The Company operates the facility under a management contract and provides corn origination, ethanol, corn oil and DDG marketing and risk management services. The Company is separately compensated for all such services except corn oil marketing. The Company also leases its Albion, Michigan grain facility to TAAE. While the Company now holds 55% of the outstanding units of TAAE, a super-majority vote is required for all major operating decisions of TAAE based on the terms of the Operating Agreement. The Company has concluded that the super-majority vote requirement gives the minority shareholders substantive participating rights and therefore consolidation for book purposes is not appropriate. The Company accounts for its investment in TAAE under the equity method of accounting. In 2006, the Company became a minority investor in The Andersons Clymers Ethanol LLC. TACE is also a producer of ethanol and its coproducts DDG and corn oil at a 110 million gallon-per-year ethanol production facility in Clymers, Indiana. The Company operates the facility under a management contract and provides corn origination, ethanol, corn oil and DDG marketing and risk management services for which it is separately compensated. The Company also leases its Clymers, Indiana grain facility to TACE. In 2006, the Company became a minority investor in The Andersons Marathon Ethanol LLC. TAME is also a producer of ethanol and its coproducts DDG and corn oil at a 110 million gallon-per-year ethanol production facility in Greenville, Ohio. In January 2007, the Company transferred its 50% share in TAME to The Andersons Ethanol Investment LLC, a consolidated subsidiary of the Company, of which a third party owned 34% of the shares. The Company operates the facility under a management contract and provides corn origination, ethanol, corn oil and DDG marketing and risk management services for which it is separately compensated. In 2009, TAEI invested an additional $1.1 million in TAME, retaining a 50% ownership interest. On January 1, 2017, TAEI was merged with and into TAME. The Company had owned (66%) of TAEI. Pursuant to the merger, the Company’s ownership units in TAEI were canceled and converted into ownership units in TAME. As a result, the Company now directly owns 33% of the outstanding ownership units of TAME. The Company has marketing agreements with TAAE, TACE, and TAME ("the three unconsolidated ethanol LLCs") under which the Company purchases and markets the ethanol produced to external customers. As compensation for these marketing services, the Company earns a fee on each gallon of ethanol sold. The Company has entered into marketing agreements with each of the ethanol LLCs. Under the ethanol marketing agreements, the Company purchases most, if not all, of the ethanol produced by the LLCs at the same price it will resell the ethanol to external customers. The Company acts as the principal in these ethanol sales transactions to external parties as the Company has ultimate responsibility of performance to the external parties. Substantially all of these purchases and subsequent sales are executed through forward contracts on matching terms and, outside of the fee the Company earns for each gallon sold, the Company does not recognize any gross profit on the sales transactions. For the years ended December 31, 2017, 2016 and 2015, revenues recognized for the sale of ethanol purchased from related parties were $590.9 million, $427.8 million and $428.2 million, respectively. In addition to the ethanol marketing agreements, the Company holds corn origination agreements, under which the Company originates all of the corn used in production for each unconsolidated ethanol LLC. For this service, the Company receives a unit based fee. Similar to the ethanol sales described above, the Company acts as a principal in these transactions, and accordingly, records revenues on a gross basis. See discussion of the impact that ASC 606 will have on these origination transactions in Note 1. For the years ended December 31, 2017, 2016 and 2015, revenues recognized for the sale of corn under these agreements were $498.8 million, $426.8 million and $443.9 million, respectively. As part of the corn origination agreements, the Company also markets the DDG produced by the entities. For this service the Company receives a unit based fee. The Company does not purchase any of the DDG from the ethanol entities; however, as part of the agreement, the Company guarantees payment by the buyer for DDG sales. At December 31, 2017 and 2016, the three unconsolidated ethanol entities had a combined receivable balance for DDG of $5.9 million and $4.1 million, respectively, of which $132.3 thousand and $9.4 thousand, respectively, was more than thirty days past due. As the Company has not experienced historical losses and the DDG receivable balances greater than thirty days past due is immaterial, the Company has concluded that the fair value of this guarantee is inconsequential. On July 31, 2013, the Company, along with Lansing Trade Group, LLC established joint ventures that acquired 100% of the stock of Thompsons Limited, including its investment in a related U.S. operating company. Each Company owns 50% of the investment. Thompsons Limited is a grain and food-grade bean handler and agronomy input provider, headquartered in Blenheim, Ontario, and operates 12 locations across Ontario and Minnesota. The Company does not hold a majority of the outstanding shares of Thompsons Limited joint ventures. All major operating decisions of these joint ventures are made by their Board of Directors and the Company does not have a majority of the board seats. Due to these factors, the Company does not have control over these joint ventures and therefore accounts for these investments under the equity method of accounting. The following table presents aggregate summarized financial information of LTG, TAAE, TACE, TAME, Thompsons Limited, and other various investments as they qualified as significant equity method investees in the aggregate. No individual equity investments qualified as significant for the years ended December 31, 2017, 2016 and 2015.
The following table presents the Company’s investment balance in each of its equity method investees by entity:
The following table summarizes income (losses) earned from the Company’s equity method investments by entity:
Total distributions received from unconsolidated affiliates were $7.1 million for the year ended December 31, 2017. The balance at December 31, 2017 that represents the undistributed earnings of the Company's equity method investments is $83.2 million. Investment in Debt Securities The Company previously owned 100% of the cumulative convertible preferred shares of Iowa Northern Railway Company (“IANR”), which operates a short-line railroad in Iowa. In the first quarter of 2016, these shares were redeemed and the Company no longer has an ownership stake in this entity. Related Party Transactions In the ordinary course of business and on an arms-length basis, the Company will enter into related party transactions with each of the investments described above, along with other related parties. The following table sets forth the related party transactions entered into for the time periods presented:
From time to time, the Company enters into derivative contracts with certain of its related parties, including the unconsolidated ethanol LLCs, LTG, and the Thompsons Limited joint ventures, for the purchase and sale of grain and ethanol, for similar price risk mitigation purposes and on similar terms as the purchase and sale derivative contracts it enters into with unrelated parties. The fair value of derivative contracts with related parties in a gross asset position as of December 31, 2017 and 2016 was $0.2 million and $4.1 million, respectively. The fair value of derivative contracts with related parties in a gross liability position as of December 31, 2017 and 2016 was $2.5 million and $0.1 million, respectively. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company’s operations include five reportable business segments that are distinguished primarily on the basis of products and services offered. The Grain business includes grain merchandising, the operation of terminal grain elevator facilities and the investments in LTG and Thompsons Limited. The Ethanol business purchases and sells ethanol and also manages the ethanol production facilities organized as limited liability companies, one is consolidated and three are investments accounted for under the equity method. There are various service contracts for these investments. Rail operations include the leasing, marketing and fleet management of railcars and other assets, railcar repair and metal fabrication. The Plant Nutrient business manufactures and distributes agricultural inputs, primarily base nutrient and value added fertilizers, to dealers and farmers, along with turf care and corncob-based products. The Retail business operated large retail stores, a distribution center, and a lawn and garden equipment sales and service facility. In January 2017, the Company announced its decision to close all retail operations. As of December 31, 2017, the Retail Group has closed all stores, completed its liquidation efforts, and sold three of the four properties. Included in “Other” are the corporate level costs not attributed to an operating segment. The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. Inter-segment sales are made at prices comparable to normal, unaffiliated customer sales. The Company does not have any customers who represent 10 percent, or more, of total revenues.
Grain sales for export to foreign markets amounted to $166.2 million, $78.3 million and $195.6 million in 2017, 2016 and 2015, respectively - the majority of which were sales to Canadian customers. Revenues from leased railcars in Canada totaled $13.3 million, $13.2 million and $11.0 million in 2017, 2016 and 2015, respectively. The net book value of the leased railcars in Canada as of December 31, 2017 and 2016 was $21.2 million and $26.8 million, respectively. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Litigation activities The Company is party to litigation, or threats thereof, both as defendant and plaintiff with some regularity, although individual cases that are material in size occur infrequently. As a defendant, the Company establishes reserves for claimed amounts that are considered probable, and capable of estimation. If those cases are resolved for lesser amounts, the excess reserves are taken into income and, conversely, if those cases are resolved for larger than the amount the Company has accrued, the Company records a charge to income. The Company believes it is unlikely that the results of its current legal proceedings for which it is the defendant, even if unfavorable, will be material. As a plaintiff, amounts that are collected can also result in sudden, non-recurring income. Litigation results depend upon a variety of factors, including the availability of evidence, the credibility of witnesses, the performance of counsel, the state of the law, and the impressions of judges and jurors, any of which can be critical in importance, yet difficult, if not impossible, to predict. Consequently, cases currently pending, or future matters, may result in unexpected, and non-recurring losses, or income, from time to time. Finally, litigation results are often subject to judicial reconsideration, appeal and further negotiation by the parties, and as a result, the final impact of a particular judicial decision may be unknown for some time, or may result in continued reserves to account for the potential of such post-verdict actions. In the third quarter of 2017, the Company’s Plant Nutrient business recorded a $2.2 million reserve for settlement of a 2015 legal claim. The case regarded allegations that the Plant Nutrient business had improperly acquired another company’s confidential and proprietary intellectual property in connection with hiring a former employee of the plaintiff. In the fourth quarter of 2017, the settlement was finalized at the reserve amount and a nominal insurance recovery was received. Prior to the settlement, substantially all the Company’s legal expenses were paid by a liability insurance carrier. Railcar leasing activities The Company's Rail Group is a lessor of transportation assets. The majority are leased to customers under operating leases that may be either net leases (in which the customer pays for all maintenance) or full service leases (where the Company provides maintenance and fleet management services). The Company also provides such services to financial intermediaries to whom it has sold assets in non-recourse lease transactions. Fleet management services generally include maintenance, escrow, tax filings and car tracking services. Many of the Company's leases provide for renewals. The Company also generally holds purchase options for assets it has sold and leased-back from a financial intermediary, and assets sold in non-recourse lease transactions. These purchase options are for stated amounts which are determined at the inception of the lease and are intended to approximate the estimated fair value of the applicable assets at the date for which such purchase options can be exercised. Lease income from operating leases (with the Company as lessor) to customers (including month-to-month and per diem leases) and rental expense for the Rail Group operating leases (with the Company as lessee) were as follows:
Lease income recognized under per diem arrangements (described in Note 1) totaled $5.6 million, $4.9 million, and 5.0 million in 2017, 2016 and 2015, respectively, and is included in the amounts above. Future minimum rentals and service income for all noncancellable Rail operating leases on transportation assets are as follows:
The Company also arranges non-recourse lease transactions under which it sells assets to financial intermediaries and assigns the related operating lease on a non-recourse basis. The Company generally provides ongoing maintenance and management services for the financial intermediaries, and receives a fee for such services when earned. Management and service fees earned in 2017, 2016 and 2015 were $5.9 million, $5.7 million and $7.0 million, respectively. Build-to-Suit Lease In August, 2015, the Company entered into a lease agreement with an initial term of 15 years for a build-to-suit facility to be used as the new corporate headquarters which was completed in the third quarter of 2016. We have recognized an asset and a financing obligation. The Company has recorded a build-to-suit financing obligation in other long-term liabilities of $24.3 million and $14.0 million at December 31, 2017 and December 31, 2016, respectively. The Company has recorded a build-to-suit financing obligation in other current liabilities of $1.4 million and $0.9 million at December 31, 2017 and December 31, 2016, respectively. Other leasing activities The Company, as a lessee, leases real property, vehicles and other equipment under operating leases. Certain of these agreements contain lease renewal and purchase options. Rental expense under these agreements was $5.4 million, $12.3 million and $10.9 million in 2017, 2016 and 2015, respectively. Future minimum lease payments under agreements in effect at December 31, 2017 are as follows: 2018 -- $5.4 million; 2019 -- $4.6 million; 2020 -- $4.1 million; 2021 -- $3.8 million; 2022 -- $1.4 million; and $0.5 million thereafter. In addition to the above, the Company leases its Albion, Michigan and Clymers, Indiana grain elevators under operating leases to two of its ethanol investees. The Albion, Michigan grain elevator lease expires in 2056. The initial term of the Clymers, Indiana grain elevator lease ended in 2014 and was renewed through 2022. The agreement provides for several renewals of 7.5 years each. Lease income for the years ended December 31, 2017, 2016 and 2015 was $2.0 million, $2.0 million and $2.0 million, respectively. |
Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information Certain supplemental cash flow information, including noncash investing and financing activities for the years ended December 31, 2017, 2016, and 2015 are as follows:
See Footnote 17 for the fair value of assets acquired and liabilities assumed as part of business acquisitions. |
Stock Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Compensation Plans | Stock Compensation Plans The Company's 2014 Long-Term Incentive Compensation Plan, dated February 28, 2014 and subsequently approved by Shareholders on May 2, 2014 (the "2014 LT Plan") is authorized to issue up to 1.75 million shares of common stock as options, share appreciation rights, restricted shares and units, performance shares and units and other stock or cash-based awards. Approximately 572 thousand shares remain available for issuance at December 31, 2017. Stock-based compensation expense for all stock-based compensation awards are based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award. Total compensation expense recognized in the Consolidated Statement of Income for all stock compensation programs was $6.1 million, $7.0 million, and $1.9 million in 2017, 2016 and 2015, respectively. Non-Qualified Stock Options ("Options") The Company granted non-qualified stock options during 2015 under the 2014 LT Plan, upon the hiring of our new Chief Executive Officer. The options have a term of seven years and have three year annual graded vesting. The fair value of the options was estimated at the date of grant under the Black-Scholes option pricing model with the following assumptions. Expected volatility was estimated based on the historical volatility of the Company's common shares over the 5.5 years prior to the grant date. The average expected life was based on the contractual term of the plan. The risk-free rate is based on the U.S. Treasury Strips available with maturity period consistent with the expected life. Forfeitures are estimated at the date of grant based on historical experience. The weighted average assumptions used in the determination of fair value for stock option awards were as follows:
A reconciliation of the number of Options outstanding and exercisable under the 2014 LT Plan as of December 31, 2017, and changes during the period then ended, is as follows:
As of December 31, 2017, there was $0.3 million unrecognized compensation cost related to Options granted under the 2014 LT Plan. That cost is expected to be fully amortized by October 2018. Restricted Stock Awards The LT Plans permit awards of restricted stock. These shares carry voting and dividend equivalent rights upon vesting; however, sale of the shares is restricted prior to vesting. Restricted shares vest over a period of 3 years, with one-third vesting each January 1 of the following first, second, and third years. Total restricted stock expense is equal to the market value of the Company's common shares on the date of the award and is recognized over the service period on a straight line basis. In 2017, there were 133.8 thousand shares issued to members of management and directors. A summary of the status of the Company's non-vested restricted shares as of December 31, 2017, and changes during the period then ended, is presented below:
As of December 31, 2017, there was $2.5 million of total unrecognized compensation cost related to non-vested restricted shares granted under the LT Plans. That cost is expected to be fully amortized by November 2021. EPS-Based Performance Share Units (“EPS PSUs”) The LT Plans also allow for the award of EPS PSUs. Each EPS PSU gives the participant the right to receive common shares dependent on the achievement of specified performance results over a 3 year performance period. At the end of the performance period, the number of shares of stock issued will be determined by adjusting the award upward or downward from a target award. Fair value of EPS PSUs issued is based on the market value of the Company's common shares on the date of the award. The related compensation expense is recognized over the performance period when achievement of the award is probable and is adjusted for changes in the number of shares expected to be issued if changes in performance are expected. In 2017, there were 84.3 thousand PSUs issued to members of management. Currently, the Company is accounting for the awards granted in 2015, 2016 and 2017 at 0%, 0% and 30% of the maximum amount available for issuance, respectively. EPS PSUs Activity A summary of the status of the Company's EPS PSUs as of December 31, 2017, and changes during the period then ended, is presented below:
As of December 31, 2017, there was $0.6 million unrecognized compensation cost related to non-vested EPS PSUs granted under the LT Plans. That cost is expected to be fully amortized by December 2019. TSR-Based Performance Share Units (“TSR PSUs”) Beginning in 2016, the Company began granting Total Shareholder Return-Based PSUs ("TSR PSUs"). Each PSU gives the participant the right to receive common shares dependent on total shareholder return over a 3 year period. At the end of the period, the number of shares of stock issued will be determined by adjusting the award upward or downward from a target award. Fair value of TSR PSUs was estimated at the date of grant using a Monte Carlo Simulation with the following assumptions. Expected volatility was estimated based on the historical volatility of the Company's common shares over the 2.83 year period prior to the grant date. The average expected life was based on the contractual term of the plan. The risk-free rate is based on the U.S. Treasury Strips available with maturity period consistent with the expected life. Forfeitures are estimated at the date of grant based on historical experience. In 2017, there were 84.3 thousand TSR PSUs issued to members of management.
TSR PSUs Activity A summary of the status of the Company's PSUs as of December 31, 2017, and changes during the period then ended, is presented below:
As of December 31, 2017, there was approximately $1.6 million unrecognized compensation cost related to non-vested TSR PSUs granted under the LT Plans. That cost is expected to be fully amortized by December 2019. Employee Share Purchase Plan (the “ESP Plan”) The Company's 2004 ESP Plan allows employees to purchase common shares through payroll withholdings. The Company has approximately 96 thousand common shares remaining available for issuance to and purchase by employees under this plan. The ESP Plan also contains an option component. The purchase price per share under the ESP Plan is the lower of the market price at the beginning or end of the year. The Company records a liability for withholdings not yet applied towards the purchase of common stock. The fair value of the option component of the ESP Plan is estimated at the date of grant under the Black-Scholes option pricing model with the following assumptions at the grant date. Expected volatility was estimated based on the historical volatility of the Company's common shares over the past year. The average expected life was based on the contractual term of the plan. The risk-free rate is based on the U.S. Treasury yield curve rate with a one year term. Forfeitures are estimated at the date of grant based on historical experience.
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Business Acquisition |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition | Business Acquisitions The Company's acquisitions are accounted for as purchases in accordance with ASC Topic 805, Business Combinations. Tangible assets and liabilities and identifiable intangible assets were adjusted to fair values at the acquisition date with the remainder of the purchase price, if any, recorded as goodwill. Operating results of these acquisitions are included in the Company's Consolidated Financial Statements from the date of acquisition and are not significant to the Company's consolidated operating results such that pro-forma disclosures are required. 2017 Business Acquisitions The Company's Grain Group completed an insignificant acquisition in 2017 for a purchase price of $3.5 million, Prior Years Business Acquisitions On May 18, 2015, the Company purchased Kay Flo Industries, Inc. and certain subsidiaries. The Company acquired 100% of the outstanding shares of Kay Flo Industries, Inc. In connection with the acquisition, the Company agreed to pay contingent consideration based on the achievement of specified objectives, including reaching targeted gross profit thresholds. The range of undiscounted amounts the Company could be required to pay under the contingent consideration arrangement is between $0 and $24 million. The total fair value of consideration for the acquisitions was $129.4 million, including working capital and $0.4 million in estimated fair value of the contingent consideration arrangement. The current estimated fair value of the contingent consideration arrangement is $0. The Company funded this transaction with long-term debt, short-term debt, and cash on hand. The purchase price allocation is summarized below:
The goodwill recognized as a result of the Kay Flo Industries, Inc. acquisition was $47.7 million and was allocated to the Plant Nutrient segment. The goodwill is not deductible for tax purposes. The goodwill recognized is primarily attributable to expansion of the segment's geographic range and the ability to realize synergies from the combination of product lines and marketing efforts. Details of the intangible assets acquired are as follows:
*weighted average number of years |
Sale of Assets |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of Assets | Property, Plant and Equipment The components of property, plant and equipment are as follows:
Depreciation expense on property, plant and equipment amounted to $48.3 million, $48.9 million and $46.4 million for the years ended 2017, 2016 and 2015, respectively. In December 2017, the Company recorded charges totaling $10.9 million for impairment of property, plant and equipment in the Grain segment, of which $5.6 million relates to assets that are deemed held and used and $5.3 million related to assets that have been reclassed as assets held for sale at December 31, 2017. The Company wrote down the value of these assets to the extent their carrying amounts exceeded fair value. The Company classified the significant assumptions used to determine the fair value of the impaired assets as Level 3 inputs in the fair value hierarchy. In December 2016, the Company recorded charges totaling $6.0 million for impairment of property, plant and equipment in the Retail segment. This does not include $0.5 million of impairment charges related to software. The Company also recorded charges totaling $2.3 million for impairment of property, plant and equipment in the Plant Nutrient segment due to the closing of a cob facility. Rail Group Assets The components of the Rail Group assets leased to others are as follows:
Depreciation expense on Rail Group assets leased to others amounted to $20.0 million, $18.6 million and $17.6 million for the years ended 2017, 2016 and 2015, respectively. Sale of Assets During 2017, the Company sold three of its retail properties for $14.7 million and recorded a $8.6 million gain in Other income, net. Additionally, the Company recorded a $1.2 million gain in Other income, net for the sales of fixtures. On March 31, 2017 the Company sold four farm center locations in Florida for $17.4 million and recorded a $4.7 million gain, net of transaction costs in Other income, net. The sale price included a working capital adjustment of $3.6 million. On May 2, 2016 the Company sold eight grain and agronomy locations in Iowa for $54.3 million and recorded a nominal gain. |
Exit Costs and Assets Held for Sale |
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Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Assets Held for sale | Exit Costs and Assets Held for Sale The Retail business closed during the second quarter of 2017, and inventory and fixtures liquidation efforts are complete. The Company incurred exit charges of $11.5 million, consisting primarily of employee severance and related benefits. The Company classified $37.9 million of Property, plant and equipment, net as Assets held for sale on the Consolidated Balance Sheet at December 31, 2017. This includes $19.5 million of Property, plant and equipment, net, $11.4 million of Inventories, and $1.2 million of Commodity derivative assets related to certain Western Tennessee locations in the Grain group. The Company classified $4.2 million and $1.6 million of additional Property, plant and equipment, net as Assets held for sale related to the remaining Retail store assets and administrative offices at an outlying location in the Plant Nutrient Group, respectively. |
Quarterly Consolidated Financial Information (Unaudited) |
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Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Consolidated Financial Information (Unaudited) | Quarterly Consolidated Financial Information (Unaudited) The following is a summary of the unaudited quarterly results of operations for 2017 and 2016:
Net income (loss) per share is computed independently for each of the quarters presented. As such, the summation of the quarterly amounts may not equal the total net income per share reported for the year. |
Subsequent Events |
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Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 13, 2018, the Company signed an agreement to sell three of its Tennessee grain locations. These assets were written down to estimated selling price less costs to sell in the fourth quarter of 2017 and classified as assets held for sale at December 31, 2017. |
Schedule II - Consolidated Valuation and Qualifying Accounts |
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Schedule II - Consolidated Valuation and Qualifying Accounts | SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS
(1) Uncollectible accounts written off, net of recoveries and adjustments to estimates for the allowance accounts. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||
Basis of Consolidation | Basis of Consolidation These Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated entities in which the Company has significant influence, but not control, are accounted for using the equity method of accounting. In the opinion of management, all adjustments consisting of normal recurring items, considered necessary for a fair presentation of the results of operations for the periods indicated, have been made. |
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Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and short-term investments with an initial maturity of three months or less. The carrying values of these assets approximate their fair values. |
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Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and may bear interest if past due. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed quarterly. The allowance is based both on specific identification of potentially uncollectible accounts and the application of a consistent policy, based on historical experience, to estimate the allowance necessary for the remaining accounts receivable. For those customers that are thought to be at higher risk, the Company makes assumptions as to collectability based on past history and facts about the current situation. Account balances are charged off against the allowance when it becomes more certain that the receivable will not be recovered. The Company manages its exposure to counter-party credit risk through credit analysis and approvals, credit limits and monitoring procedures. |
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Commodity Derivatives and Inventories | Commodity Derivatives and Inventories The Company's operating results can be affected by changes to commodity prices. The Grain and Ethanol businesses have established “unhedged” position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract to mitigate the price risk associated with those contracts and inventory). To reduce the exposure to market price risk on commodities owned and forward grain and ethanol purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. The exchange traded contracts are primarily via the Chicago Mercantile Exchange ("CME".) The forward purchase and sale contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year. The Company accounts for its commodity derivatives at 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, fair value is adjusted for differences in local markets and non-performance risk. While the Company considers certain of its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges. 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 in the Consolidated Statements of Operations. Additional information about the fair value of the Company's commodity derivatives is presented in Notes 6 and 11 to the Consolidated Financial Statements. Grain inventories, which are agricultural commodities and may be acquired under provisionally priced contracts, are stated at their net realizable value, which approximates estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. All other inventories are stated at the lower of cost or net realizable value. Cost is determined by the average cost method. Additional information about inventories is presented in Note 2 to the Consolidated Financial Statements. |
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Derivatives - Master Netting Arrangements | Derivatives - Master Netting Arrangements Generally accepted accounting principles permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or obligation to return cash collateral under the same master netting arrangement. The Company has master netting arrangements for its exchange traded futures and options contracts and certain over-the-counter contracts. When the Company enters into a futures, options or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a futures, option or an over-the-counter contract moves in a direction that is adverse to the Company's position, an additional margin deposit, called a maintenance margin, is required. The Company nets, by counterparty, its futures and over-the-counter positions against the cash collateral provided or received. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Consolidated Balance Sheets. Additional information about the Company's master netting arrangements is presented in Note 6 to the Consolidated Financial Statements. |
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Derivatives - Interest Rate and Foreign Currency Contracts | Derivatives - Interest Rate and Foreign Currency Contracts The Company periodically enters into interest rate contracts to manage interest rate risk on borrowing or financing activities. The Company has interest rate contracts recorded in other assets that are not designated as hedges. While the Company considers all of its derivative positions to be effective economic hedges of specified risks, these interest rate contracts for which hedge accounting is not applied are recorded on the Consolidated Balance Sheets in either other current assets or liabilities (if short-term in nature) or in other assets or other long-term liabilities (if non-current in nature), and changes in fair value are recognized in income as interest expense. Upon termination of a derivative instrument or a change in the hedged item, any remaining fair value recorded on the balance sheet is recorded as interest expense consistent with the cash flows associated with the underlying hedged item. Information regarding the nature and terms of the Company's interest rate derivatives is presented in Note 6 to the Consolidated Financial Statements. |
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Marketing Agreement | Marketing Agreement The Company has a marketing agreement that covers certain of its grain facilities, some of which are leased from Cargill, Incorporated (“Cargill”). Under the five-year amended and restated agreement (renewed in December 2013 and ending May 2018), the Company sells grain from these facilities to Cargill at market prices. Income earned from operating the facilities (including buying, storing and selling grain and providing grain marketing services to its producer customers) over a specified threshold is shared equally with Cargill. Measurement of this threshold is made on a cumulative basis and cash is paid to Cargill on an annual basis. The Company recognizes its pro rata share of income every month and accrues for any payment owed to Cargill. T |
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Rail Group Assets Leased to Others | Rail Group Assets Leased to Others The Company's Rail Group purchases, leases, markets and manages railcars and barges for third parties and for internal use. Rail Group assets to which the Company holds title are shown on the balance sheet in one of two categories - other current assets (for those that are available for sale) or Rail Group assets leased to others. Rail Group assets leased to others, both on short and long-term leases, are classified as long-term assets and are depreciated over their estimated useful lives. Railcars have statutory lives of either 40 or 50 years, measured from the date built. Barges have estimated lives of 30 to 40 years, measured from the date built. At the time of purchase, the remaining life is used in determining useful lives which are depreciated on a straight-line basis. Repairs and maintenance costs are charged to expense as incurred. Additional information regarding Rail Group assets leased to others is presented in Note 3 to the Consolidated Financial Statements. |
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Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Repairs and maintenance costs are charged to expense as incurred, while betterments that extend useful lives are capitalized. Depreciation is provided over the estimated useful lives of the individual assets, by the straight-line method. Estimated useful lives are generally as follows: land improvements - 16 years; leasehold improvements - the shorter of the lease term or the estimated useful life of the improvement, ranging from 3 to 20 years; buildings and storage facilities - 10 to 40 years; and machinery and equipment - 3 to 20 years. The cost of assets retired or otherwise disposed of and the accumulated depreciation thereon are removed from the accounts, with any gain or loss realized upon sale or disposal credited or charged to operations. |
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Deferred Debt Issue Costs | Deferred Debt Issue Costs Costs associated with the issuance of debt are deferred. These costs are amortized, as a component of interest expense, over the earlier of the stated term of the debt or the period from the issue date through the first early payoff date without penalty, or the expected payoff date if the loan does not contain a prepayment penalty. Deferred costs associated with the borrowing arrangement with a syndication of banks are amortized over the term of the agreement. |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is not amortized but is subject to annual impairment tests or more often when events or circumstances indicate that the carrying amount of goodwill may be impaired. A goodwill impairment loss is recognized to the extent the carrying amount of goodwill exceeds the implied fair value of goodwill. Additional information about the Company's goodwill and other intangible assets is presented in Note 4 to the Consolidated Financial Statements. Acquired intangible assets are recorded at cost, less accumulated amortization, if not indefinite lived. In addition, we capitalize the salaries and payroll-related costs of employees and consultants who devote time to the development of internal-use software projects. If a project constitutes an enhancement to previously-developed software, we assess whether the enhancement is significant and creates additional functionality to the software, thus qualifying the work incurred for capitalization. Once a project is complete, we estimate the useful life of the internal-use software, and we periodically assess whether the software is impaired. Changes in our estimates related to internal-use software would increase or decrease operating expenses or amortization recorded during the period. Amortization of intangible assets is provided over their estimated useful lives (generally 3 to 10 years) on the straight-line method. |
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Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the assets to the undiscounted future net cash flows the Company expects to generate with the assets. If such assets are considered to be impaired, the Company recognizes an impairment loss for the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
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Provisionally Priced Grain Contracts | Provisionally Priced Grain Contracts Accounts payable includes certain amounts related to grain purchases for which, even though the Company has taken ownership and possession of the grain, the final purchase price has not been fully established. If the futures and basis components are unpriced, it is referred to as a delayed price payable. If the futures component has not been established, but the basis has been set, it is referred to as a basis payable. The unpriced portion of these payables will be exposed to changes in the fair value of the underlying commodity based on quoted prices on commodity exchanges (or basis levels). Those payables that are fully priced are not considered derivative instruments. The Company also enters into contracts with customers for risk management purposes that allow the 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 Chicago Board of Trade ("CBOT") prices. |
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Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for all stock-based compensation awards is based on the estimated grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, adjusted for revisions to performance expectations. Additional information about the Company's stock compensation plans is presented in Note 16 to the Consolidated Financial Statements. |
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Deferred Compensation Liability | Deferred Compensation Liability Included in accrued expenses are $9.6 million and $9.7 million at December 31, 2017 and 2016, respectively, of deferred compensation for certain employees who, due to Internal Revenue Service guidelines, may not take full advantage of the Company's qualified defined contribution plan. Assets funding this plan are recorded at fair value in other current assets and have been classified as trading securities with changes in the fair value recorded in earnings as a component of other income, net. Changes in the fair value of the deferred compensation liability are reflected in earnings as a component of operating, administrative, and general expenses. |
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Revenue Recognition | Revenue Recognition The Company follows a policy of recognizing sales revenue at the time of delivery of the product and when all of the following have occurred: a sales agreement is in place, pricing is fixed or determinable, and collection is reasonably assured. Sales of grain and ethanol are primarily recognized at the time of shipment, which is when title and risk of loss transfers to the customer. There are certain transactions that allow for pricing to occur after title of the goods has passed to the customer. In these cases, the Company continues to report the goods in inventory until it recognizes the sales revenue once the price has been determined. Direct ship grain sales (where the Company never takes physical possession of the grain) are recognized when the grain arrives at the customer's facility. Revenues from other grain and ethanol merchandising activities are recognized as services are provided. Sales of other products are recognized at the time title and risk of loss transfers to the customer, which is generally at the time of shipment or, in the case of the retail store sales, when the customer takes possession of the goods. Revenues for all other services are recognized as the service is provided. Certain of the Company's operations provide for customer billings, deposits or prepayments for product that is stored at the Company's facilities. The sales and gross profit related to these transactions are not recognized until the product is shipped in accordance with the previously stated revenue recognition policy and these amounts are classified as a current liability titled “Customer prepayments and deferred revenue”. Rental revenues on operating leases are recognized on a straight-line basis over the term of the lease. Sales to financial intermediaries of owned railcars or other assets which are subject to an operating lease (with the Company being the lessor in such operating leases prior to the sale, referred to as a “non-recourse transaction”) are recognized as revenue on the date of sale if the Company does not maintain substantial risk of ownership in the sold assets. Revenue related to railcar or other asset servicing and maintenance contracts is recognized over the term of the lease or service contract. Sales returns and allowances are provided for at the time sales are recorded based on historical experience. Shipping and handling charges are included in cost of sales. Sales taxes and motor fuel taxes on ethanol sales are presented on a net basis and are excluded from revenues. |
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Rail Lease Accounting | Rail Lease Accounting In addition to the sale of Rail Group assets that the Company makes to financial intermediaries on a non-recourse basis and records as revenue as discussed above, the Company also acts as the lessor and / or the lessee in various leasing arrangements as described below. The Company's Rail Group leases assets to customers, manages assets for third parties and leases assets for internal use. The Company acts as the lessor in various operating leases of assets that are owned by the Company, or leased by the Company from financial intermediaries and, in turn, leased by the Company to end-users of the assets. The leases from financial intermediaries are generally structured as sale-leaseback transactions, with the leaseback by the Company being treated as an operating lease. Certain of the Company's leases include monthly lease fees that are contingent upon some measure of usage (“per diem” leases). This monthly usage is tracked, billed and collected by third-party service providers and funds are generally remitted to the Company along with usage data three months after they are earned. The Company records lease revenue for these per diem arrangements based on recent historical usage patterns and records a true-up adjustment when the actual data is received. Such true-up adjustments were not significant for any period presented. |
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Operating Leases | The Company expenses operating lease payments on a straight-line basis over the lease term. |
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Income Taxes | Income Taxes Income tax expense for each period includes current tax expense plus deferred expense, which is related to the change in deferred income tax assets and liabilities. Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of assets and liabilities and are measured using enacted tax rates and laws governing periods in which the differences are expected to reverse. The Company evaluates the realizability of deferred tax assets and provides a valuation allowance for amounts that management does not believe are more likely than not to be recoverable, as applicable. The annual effective tax rate is determined by income tax expense, described above, from continuing operations, described above, as a percentage of pretax book income. Differences in the effective tax rate and the statutory tax rate may be due to permanent items, tax credits, foreign tax rates and state tax rates in jurisdictions in which the Company operates, or changes in valuation allowances. The Company records reserves for uncertain tax positions when, despite the belief that tax return positions are fully supportable, it is anticipated that certain tax return positions are likely to be challenged and that the Company may not prevail. These reserves are adjusted in light of changing facts and circumstances, such as the progress of a tax audit or the lapse of statutes of limitations. |
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Employee Benefit Plans | Employee Benefit Plans The Company provides full-time employees hired before January 1, 2003 with postretirement health care benefits. In order to measure the expense and funded status of these employee benefit plans, management makes several estimates and assumptions, including employee turnover rates, anticipated mortality rates and anticipated future healthcare cost trends. These estimates and assumptions are based on the Company's historical experience combined with management's knowledge and understanding of current facts and circumstances. The selection of the discount rate is based on an index given projected plan payouts. |
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Advertising | Advertising Advertising costs are expensed as incurred. |
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New Accounting Standards | New Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (ASC 606). The FASB issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10 ASU 2016-12 and ASU 2016-20, respectively. The core principle of the new revenue standard is that an entity recognizes revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new revenue standard is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company adopted the standard on January 1, 2018, using the modified retrospective method. The adoption of this new guidance will require expanded disclosures in the Company’s consolidated financial statements including separate quantitative disclosure of revenues within the scope of ASC 606 and revenues excluded from the scope of ASC 606. The Company has assessed the impact of this standard by reviewing representative samples of customer contracts for each revenue stream, analyzing those contracts under the new revenue standard, and comparing the conclusions to the current accounting policies and practices to identify potential changes. As a result of this assessment, which was completed during the fourth quarter of 2017, the Company believes the following items will be impacted upon adoption: - Revenues not in the Scope of ASC 606: Many of the Company's Grain and Ethanol sales contracts are derivatives under ASC 815, Derivatives and Hedging, and therefore will be outside the scope of ASC 606. In addition, the Rail Group's leasing revenue is accounting for under ASC 840, Leases, and will be outside the scope of ASC 606. While we do not believe that the timing or measurement of revenue will be impacted by this conclusion, we will be required to disclose this revenue separately from revenue that is earned from contracts with customers upon adoption of ASC 606. The Company expects approximately 70 percent to 80 percent of consolidated revenues will be accounted for outside the scope of ASC 606, including at least 95 percent of Grain’s revenues, 80 percent to 90 percent of Ethanol’s revenues and 50 percent to 60 percent of Rail's revenues; - Corn Origination Agreements: While these sales contracts will be accounted for under ASC 815, as noted above, we are still required to evaluate the principal versus agent guidance in ASC 606 to determine whether realized gains or losses should be presented on a gross or net basis in the consolidated statements of operations upon physical settlement. Currently the Company presents these amounts on a gross basis as it has concluded, on the basis of risks and rewards, that it is the principal in the contract. However, ASC 606 requires an entity to evaluate whether it is a principal or agent on the basis of control, rather than risks and rewards. The Company has determined that it is the agent in certain origination arrangements within our Grain Group and therefore realized gains or losses will be presented on a net basis upon adoption of ASC 606. However, as this change relates only to presentation within our consolidated statement of income, there will be no impact on gross profit. While the impact is dependent on commodity price levels, the Company expects consolidated revenues and cost of sales to each decrease by approximately 10 percent to 20 percent for the Company and 20 percent to 30 percent for the Grain segment, respectively; - Certain Rail Financing Transactions: In its normal course of operations, the Rail Group enters into transactions with financial institutions in which it agrees to sell railcars to the financial institution in exchange for an upfront payment. Each of the railcars included in a transaction are subject to existing operating leases at the time of sale and the Rail Group assigns all of its rights and obligations pursuant to the underlying lease agreements to financial institution on a non-recourse basis. In such arrangements, the group typically also provides ongoing maintenance and management services related to the cars on behalf of the financial institution in exchange for a stated monthly fee. The group typically holds an option to repurchase the assets at the end of the underlying lease term. Due to the fact that the group holds an option to repurchase the railcars at the end of the lease term, the group has concluded that it does not transfer control of those railcars to the financial institution and therefore such transactions will no longer be treated as sales upon adoption of ASC 606. Rather, these transactions will be accounted for as collateralized borrowings in which the cash received from the financial institution will be recorded as a financial liability and the railcars will remain recorded as assets within the “Rail Group assets leased to others, net” financial statement caption. Upon adoption, the Company will recognize a cumulative catch-up transition adjustment in beginning retained earnings at January 1, 2018 for non-recourse financing transactions that are open and have not yet recognized substantially all of the revenue under the contract as of December 31, 2017. The effect of this transition adjustment will be to recognize the railcar assets at their net book value and a financial liability representing the remaining amount owed to the financial institution. This will result in $25 million increase in Rail Group net assets, $43 million increase in financing liabilities and deferred tax liabilities and $18 million decrease to retained earnings. Leasing In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). ASC 842 supersedes the current accounting for leases. The new standard, while retaining two distinct types of leases, finance and operating, (i) requires lessees to record a right of use asset and a related liability for the rights and obligations associated with a lease, regardless of lease classification, and recognize lease expense in a manner similar to current accounting, (ii) eliminates current real estate specific lease provisions, (iii) modifies the lease classification criteria and (iv) aligns many of the underlying lessor model principles with those in the new revenue standard. ASC 842 is effective for fiscal years beginning after December 15, 2018, and interim periods within. Early adoption is permitted, however the Company does not plan to early adopt. Entities are required to use a modified retrospective approach when transitioning to ASC 842 for leases that exist as of or are entered into after the beginning of the earliest comparative period presented in the financial statements. The Company expects this standard to have the effect of bringing certain off balance-sheet rail assets noted in Item 7 of Form 10-K onto the balance sheet along with a corresponding liability for the associated obligations. Additionally, we have other arrangements currently classified as operating leases which will be recorded as a right of use asset and corresponding liability on the balance sheet. We are currently evaluating the impact these changes will have on the consolidated financial statements. Other applicable standards In August 2017, the FASB issued Accounting Standards Update No. 2017-12 Targeted Improvements to Accounting for Hedging Activities. This standard simplifies the recognition and presentation of changes in the fair value of hedging instruments. The ASU is effective for annual periods beginning December 15, 2018. The Company does not expect the impact from adoption of this standard to be material to its Consolidated Financial Statements and disclosures. In May 2017, the FASB issued Accounting Standards Update No. 2017-09 Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This standard states that if the vesting conditions, fair value, and classification of the awards are the same immediately before and after the modification an entity would not apply modification accounting. The ASU is effective for annual periods beginning after December 15, 2017. Early adoption is permitted, however the Company has not chosen to do so at this time. The Company does not expect the impact from adoption of this standard to be material. In March 2017, the FASB issued Accounting Standards Update No. 2017-07 Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard requires that the service cost component be reported in the same line item as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit costs should be presented in the income statement separately from the service cost component and outside of income from operations if that subtotal is presented. The ASU is effective for annual periods beginning after December 15, 2017. The Company does not expect the impact from adoption of this standard to be material to its Consolidated Financial Statements and disclosures. In January 2017, the FASB issued ASU No. 2017-04 Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. The ASU is effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted, and the Company elected to implement this standard in the second quarter of 2017. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard clarifies how companies present and classify certain cash receipts and payments in the statement of cash flows. The standard is effective for annual and interim periods beginning after December 15, 2017. At adoption, the Company will elect to continue classifying distributions from equity method investments using the cumulative earnings approach which is consistent with current practice. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This update changes the accounting for credit losses on loans and held-to-maturity debt securities and requires a current expected credit loss (CECL) approach to determine the allowance for credit losses. This includes allowances for trade receivables. The Company has not historically incurred significant credit losses and does not currently anticipate circumstances that would lead to a CECL approach differing from the Company's existing allowance estimates in a material way. The guidance is effective for fiscal years beginning after December 15, 2019 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. Early adoption is permitted, however the Company does not plan to do so. In January, 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. This standard provides guidance for the recognition, measurement, presentation, and disclosure of financial instruments. This guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted. The Company does not expect the impact from adoption of this standard to be material to currently held financial assets and liabilities. |
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Fair Value Measurements | 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 on the CME or the New York Mercantile Exchange for similar commodities and delivery dates as well as observable quotes for local basis adjustments (the difference, which is attributable to local market conditions, between the quoted futures price and the local cash price). Because “basis” for a particular commodity and location typically has multiple quoted prices from other agribusinesses in the same geographical vicinity and is used as a common pricing mechanism in the Agribusiness industry, we have concluded that “basis” is 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 CBOT prices are used and the liability is deemed to be Level 1 in the fair value hierarchy. For all other unpriced contracts which include variable futures and basis components, the amounts recorded for delayed price contracts are determined on the basis of local grain market prices at the balance sheet date and, as such, are deemed to be Level 2 in the fair value hierarchy. The risk management contract liability allows related ethanol customers to effectively unprice the futures component of their inventory for a period of time, subjecting the bushels to market fluctuations. The Company records an asset or liability for the market value changes of the commodities over the life of the contracts based on quoted CBOT prices and as such, the balance is deemed to be Level 1 in the fair value hierarchy. Fair Value Measurements Generally accepted accounting principles define fair value as an exit price and also establish a framework for measuring fair value. An exit price represents the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy is used, which prioritizes the inputs used in measuring fair value as follows:
In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. |
Inventories (Tables) |
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Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Classes of inventories | Major classes of inventories are as follows:
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Property, Plant and Equipment (Tables) |
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Components of property, plant and equipment | The components of property, plant and equipment are as follows:
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Components of Railcar assets leased to others | The components of the Rail Group assets leased to others are as follows:
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Goodwill and Other Intangible Assets (Table) |
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Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2017, 2016 and 2015 are as follows:
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Intangible assets included in other assets | The Company's other intangible assets are as follows:
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Debt (Tables) |
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Schedule of Short-term and Long-term Debt | The Company’s short-term and long-term debt at December 31, 2017 and 2016 consisted of the following:
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Schedule of Short-term Borrowings | The following information relates to short-term borrowings:
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Schedule of Long-term Debt | Long-term debt consists of the following:
(a) Debt is collateralized by first mortgages on certain facilities and related equipment or other assets with a book value of $159.9 million |
Derivatives (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | The following table presents at December 31, 2017 and 2016, a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted/received as collateral. The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within current or noncurrent commodity derivative assets (or liabilities) on the Consolidated Balance Sheets:
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Fair value of the Company's commodity derivatives in the balance sheet | The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities:
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Company's Consolidated Statement of Income gains and location of line items |
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Amounts of quantities outstanding included in commodity derivative contracts | The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) as of December 31, 2017 and 2016:
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Open interest rate contracts | The following table presents the open interest rate contracts at December 31, 2017:
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Fair value of the Company's interest rate derivatives | At December 31, 2017 and 2016, the Company had recorded the following amounts for the fair value of the Company's other derivatives not designated as hedging instruments:
The gains and losses included in the Company's Consolidated Statements of Operations and the line item in which they are located for derivatives not designated as hedging instruments are as follows:
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Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligation and funded status of the pension and postretirement benefit plans | Following are the details of the obligation and funded status of the pension and postretirement benefit plans:
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Amounts recognized in the Consolidated Balance Sheets | Amounts recognized in the Consolidated Balance Sheets at December 31, 2017 and 2016 consist of:
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Pre-tax amounts recognized in accumulated other comprehensive loss | Following are the details of the pre-tax amounts recognized in accumulated other comprehensive loss at December 31, 2017:
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Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost | The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year, excluding the impact of the pension termination, are as follows:
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Amounts applicable to the Company's defined benefit plans with accumulated benefit obligations in excess of plan assets | Amounts applicable to the Company's defined benefit plans with accumulated benefit obligations in excess of plan assets are as follows:
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Defined benefit plan estimated future benefit payments | The combined benefits expected to be paid for all Company defined benefit plans over the next ten years (in thousands) are as follows:
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Components of the net periodic benefit cost | Following are components of the net periodic benefit cost for each year:
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Schedule of assumptions used | Following are weighted average assumptions of pension and postretirement benefits for each year:
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Assumed health care cost trend rates at beginning of year |
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of income tax provision | Income tax provision (benefit) applicable to continuing operations consists of the following:
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Components of income before income taxes | Income (loss) before income taxes from continuing operations consists of the following:
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Effective tax rate reconciliation | A reconciliation from the statutory U.S. federal tax rate to the effective tax rate follows:
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Deferred tax liabilities and assets | Significant components of the Company's deferred tax liabilities and assets are as follows:
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Unrecognized tax benefits excluding interest and penalties | A reconciliation of the January 1, 2015 to December 31, 2017 amount of unrecognized tax benefits is as follows:
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Accumulated Other Comprehensive Loss (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the after-tax components of accumulated other comprehensive income (loss) attributable to the Company for the years ended December 31, 2017, 2016, and 2015:
(a) All amounts are net of tax. Amounts in parentheses indicate debits |
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Reclassification out of Accumulated Other Comprehensive Income | The Following tables show the reclassification adjustments from accumulated other comprehensive income to net income for the years ended December 31, 2017, 2016, and 2015:
(a) Amounts in parentheses indicate debits to profit/loss (b) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (see Note 7. Employee Benefit Plans footnote for additional details) |
Earnings Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share | The computation of basic and diluted earnings per share is as follows:
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Nonrecurring Basis | The following tables present the Company's assets and liabilities that are measured at fair value on a nonrecurring basis at December 31, 2017:
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Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016:
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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 recurring fair value measurements using Level 3 inputs is as follows:
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Fair Value Inputs, Assets, Quantitative Information | The following tables summarize information about the Company's Level 3 fair value measurements as of December 31, 2017 and 2016:
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Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | Based upon the Company’s credit standing and current interest rates offered by the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities, the Company estimates the fair values of its fixed rate long-term debt instruments outstanding at December 31, 2017 and 2016, as follows:
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Related Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of aggregate summarized financial information of subsidiaries | The following table presents aggregate summarized financial information of LTG, TAAE, TACE, TAME, Thompsons Limited, and other various investments as they qualified as significant equity method investees in the aggregate. No individual equity investments qualified as significant for the years ended December 31, 2017, 2016 and 2015.
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Company's investment balance in each of its equity method investees by entity | The following table presents the Company’s investment balance in each of its equity method investees by entity:
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Income (loss) earned from the Company's equity method investments by entity | The following table summarizes income (losses) earned from the Company’s equity method investments by entity:
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Schedule of Related Party Transactions | The following table sets forth the related party transactions entered into for the time periods presented:
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | he segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. Inter-segment sales are made at prices comparable to normal, unaffiliated customer sales. The Company does not have any customers who represent 10 percent, or more, of total revenues.
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease income and rental expense from operating leases | Lease income from operating leases (with the Company as lessor) to customers (including month-to-month and per diem leases) and rental expense for the Rail Group operating leases (with the Company as lessee) were as follows:
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Operating leases future minimum rentals and service income | Future minimum rentals and service income for all noncancellable Rail operating leases on transportation assets are as follows:
|
Supplemental Cash Flow Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow Supplemental Information | Certain supplemental cash flow information, including noncash investing and financing activities for the years ended December 31, 2017, 2016, and 2015 are as follows:
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Stock Compensation Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of valuation assumptions | The weighted average assumptions used in the determination of fair value for stock option awards were as follows:
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Schedule of stock options rollforward | A reconciliation of the number of Options outstanding and exercisable under the 2014 LT Plan as of December 31, 2017, and changes during the period then ended, is as follows:
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Summary of stock options |
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Summary of nonvested restricted shares | A summary of the status of the Company's non-vested restricted shares as of December 31, 2017, and changes during the period then ended, is presented below:
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Summary of nonvested performance share units | A summary of the status of the Company's EPS PSUs as of December 31, 2017, and changes during the period then ended, is presented below:
A summary of the status of the Company's PSUs as of December 31, 2017, and changes during the period then ended, is presented below:
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Fair value of the option component of the ESP Plan |
|
Business Acquisition (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | he purchase price allocation is summarized below:
|
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Intangible assets acquisition | Details of the intangible assets acquired are as follows:
|
Quarterly Consolidated Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited quarterly results of operations | The following is a summary of the unaudited quarterly results of operations for 2017 and 2016:
|
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jan. 01, 2018 |
|
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Maximum period in which contracts for the sale of grain to processors or other consumers extend | 1 year | ||||
Marketing lease agreement term | 5 years | ||||
Marketing balance payable | $ 3,300 | $ 5,800 | |||
Property subject to or available for leases statutory life minimum | 40 years | ||||
Property subject to or available for leases statutory life maximum | 50 years | ||||
Accrued compensation liability | $ 9,600 | 9,700 | |||
Decrease in retained earnings | $ (633,496) | (609,206) | |||
Scenario, Forecast | Accounting Standards Update 2014-09 | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Decrease in consolidated revenues percentage | 10.00% | ||||
Decrease in cost of sales percentage | 20.00% | ||||
Scenario, Forecast | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Rail Group | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Decrease in retained earnings | $ 18,000 | ||||
Grain | Scenario, Forecast | Accounting Standards Update 2014-09 | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Percentage of revenue accounted for outside of scope of ASC 606 | 95.00% | ||||
Decrease in consolidated revenues percentage | 20.00% | ||||
Decrease in cost of sales percentage | 30.00% | ||||
Minimum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Intangible assets estimated useful life | 3 years | ||||
Minimum | Scenario, Forecast | Accounting Standards Update 2014-09 | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Percentage of revenue accounted for outside of scope of ASC 606 | 70.00% | ||||
Minimum | Ethanol | Scenario, Forecast | Accounting Standards Update 2014-09 | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Percentage of revenue accounted for outside of scope of ASC 606 | 80.00% | ||||
Minimum | Rail | Scenario, Forecast | Accounting Standards Update 2014-09 | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Percentage of revenue accounted for outside of scope of ASC 606 | 50.00% | ||||
Maximum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Intangible assets estimated useful life | 10 years | ||||
Maximum | Scenario, Forecast | Accounting Standards Update 2014-09 | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Percentage of revenue accounted for outside of scope of ASC 606 | 80.00% | ||||
Maximum | Ethanol | Scenario, Forecast | Accounting Standards Update 2014-09 | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Percentage of revenue accounted for outside of scope of ASC 606 | 90.00% | ||||
Maximum | Rail | Scenario, Forecast | Accounting Standards Update 2014-09 | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Percentage of revenue accounted for outside of scope of ASC 606 | 60.00% | ||||
Operating, administrative and general expenses | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Advertising expense | $ 2,500 | $ 4,900 | $ 5,200 | ||
Barges | Minimum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 30 years | ||||
Barges | Maximum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 40 years | ||||
Land Improvements | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 16 years | ||||
Leasehold Improvements | Minimum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 3 years | ||||
Leasehold Improvements | Maximum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 20 years | ||||
Buildings and Storage Facilities | Minimum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 10 years | ||||
Buildings and Storage Facilities | Maximum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 40 years | ||||
Machinery and Equipment | Minimum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 3 years | ||||
Machinery and Equipment | Maximum | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Asset estimated average useful life | 20 years | ||||
Assets, Net [Member] | Scenario, Forecast | Accounting Standards Update 2014-09 | Rail Group | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Increase in net assets | 25,000 | ||||
Financing Obligations [Member] | Scenario, Forecast | Accounting Standards Update 2014-09 | Rail Group | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Increase in financial liabilities and deferred tax liabilities | $ 43,000 |
Inventories (Details) $ in Thousands, bu in Millions |
Dec. 31, 2017
USD ($)
bu
|
Dec. 31, 2016
USD ($)
bu
|
---|---|---|
Inventory, Net [Abstract] | ||
Grain | $ 505,217 | $ 495,139 |
Ethanol and coproducts | 11,003 | 10,887 |
Plant nutrients and cob products | 126,962 | 150,259 |
Retail merchandise | 0 | 20,678 |
Railcar repair parts | 5,521 | 5,784 |
Total inventories | $ 648,703 | $ 682,747 |
Grain held in storage and excluded from inventory calculations (bushels) | bu | 1.0 | 0.9 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Components of property, plant and equipment | ||
Land | $ 22,388 | $ 30,672 |
Land improvements and leasehold improvements | 69,127 | 79,631 |
Buildings and storage facilities | 284,820 | 322,856 |
Machinery and equipment | 373,127 | 392,418 |
Construction in progress | 7,502 | 12,784 |
Property, plant and equipment, gross | 756,964 | 838,361 |
Less: accumulated depreciation | 372,287 | 388,309 |
Property, plant and equipment, net | $ 384,677 | $ 450,052 |
Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense on property, plant and equipment | $ 48,300 | $ 48,900 | $ 46,400 | ||
Impairment of property, plant and equipment held for use | 10,913 | 9,107 | 285 | ||
Depreciation expense on railcar assets leased to others | $ 20,000 | $ 18,600 | $ 17,600 | ||
Grain | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of property, plant and equipment | $ 10,900 | ||||
Impairment of property, plant and equipment held for use | 5,600 | ||||
Impairment of property, plant and equipment held for sale | $ 5,300 | ||||
Retail | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of property, plant and equipment held for use | $ 6,000 | ||||
Impairment charges related to software | 500 | ||||
Plant Nutrient | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of property, plant and equipment held for use | $ 2,300 |
Property, Plant and Equipment (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Components of Railcar assets leased to others | ||
Rail Group assets leased to others | $ 531,391 | $ 431,571 |
Less: accumulated depreciation | 107,948 | 104,376 |
Railcar assets leased to others, net | $ 423,443 | $ 327,195 |
Goodwill and Other Intangible Assets (Changes in goodwill) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill [Roll Forward] | ||||
Goodwill at beginning of period | $ 63,934 | $ 63,934 | $ 72,365 | |
Acquisitions | 1,171 | 0 | 47,735 | |
Goodwill impairment | (59,081) | 0 | (56,166) | |
Goodwill at end of period | 6,024 | 63,934 | 63,934 | |
Grain | ||||
Goodwill [Roll Forward] | ||||
Goodwill at beginning of period | 0 | 0 | 46,422 | |
Acquisitions | 1,171 | 0 | 0 | |
Goodwill impairment | 0 | (46,422) | ||
Goodwill at end of period | 1,171 | 0 | 0 | |
Plant Nutrient | ||||
Goodwill [Roll Forward] | ||||
Goodwill at beginning of period | 59,767 | 59,767 | 21,776 | |
Acquisitions | 0 | 0 | 47,735 | |
Goodwill impairment | $ (2,000) | (59,081) | (9,744) | |
Goodwill at end of period | 686 | 59,767 | 59,767 | |
Rail | ||||
Goodwill [Roll Forward] | ||||
Goodwill at beginning of period | 4,167 | 4,167 | 4,167 | |
Acquisitions | 0 | 0 | 0 | |
Goodwill impairment | 0 | 0 | ||
Goodwill at end of period | $ 4,167 | $ 4,167 | $ 4,167 |
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Jun. 30, 2017 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||||||
Goodwill | $ 63,934 | $ 63,934 | $ 6,024 | $ 63,934 | $ 63,934 | $ 72,365 | ||
Goodwill impairment | 59,081 | 0 | 56,166 | |||||
Amortization expense for intangible assets | 18,100 | 16,800 | 14,500 | |||||
Expected future annual amortization expense of intangibles in 2018 | 18,900 | |||||||
Expected future annual amortization expense of intangibles in 2019 | 18,000 | |||||||
Expected future annual amortization expense of intangibles in 2020 | 16,700 | |||||||
Expected future annual amortization expense of intangibles in 2021 | 15,700 | |||||||
Expected future annual amortization expense of intangibles in 2022 | 14,000 | |||||||
Grain | ||||||||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||||||
Goodwill | 0 | 0 | 1,171 | 0 | 0 | 46,422 | ||
Goodwill, accumulated impairment loss | 46,400 | |||||||
Goodwill impairment | 0 | 46,422 | ||||||
Retail | ||||||||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||||||
Impairment charges related to software | 500 | |||||||
Plant Nutrient | ||||||||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||||||
Goodwill | $ 59,767 | 59,767 | 686 | $ 59,767 | 59,767 | $ 21,776 | ||
Goodwill, accumulated impairment loss | 68,900 | |||||||
Goodwill impairment | $ 2,000 | 59,081 | $ 9,744 | |||||
Plant Nutrient | Wholesale | ||||||||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||||||
Goodwill impairment | $ 42,000 | $ 17,100 | ||||||
Long-term earnings growth percentage used to determine impairment or reporting unit | 2.00% | |||||||
Weighted average cost of capital percentage used to determine impairment or reporting unit | 10.40% | |||||||
Plant Nutrient | Grain and Farm Center | ||||||||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||||||
Goodwill impairment | $ 54,200 |
Goodwill and Other Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Amortized intangible assets | ||
Original Cost | $ 188,089 | $ 168,923 |
Accumulated Amortization | 75,196 | 62,823 |
Net Book Value | 112,893 | 106,100 |
Customer list | ||
Amortized intangible assets | ||
Original Cost | 41,151 | 41,477 |
Accumulated Amortization | 18,437 | 14,958 |
Net Book Value | 22,714 | 26,519 |
Non-compete agreement | ||
Amortized intangible assets | ||
Original Cost | 4,665 | 4,594 |
Accumulated Amortization | 3,563 | 3,064 |
Net Book Value | 1,102 | 1,530 |
Supply agreement | ||
Amortized intangible assets | ||
Original Cost | 9,806 | 9,806 |
Accumulated Amortization | 5,699 | 4,827 |
Net Book Value | 4,107 | 4,979 |
Technology | ||
Amortized intangible assets | ||
Original Cost | 15,500 | 15,500 |
Accumulated Amortization | 5,616 | 4,243 |
Net Book Value | 9,884 | 11,257 |
Trademarks and patents | ||
Amortized intangible assets | ||
Original Cost | 18,185 | 18,717 |
Accumulated Amortization | 5,882 | 4,335 |
Net Book Value | 12,303 | 14,382 |
Lease intangible | ||
Amortized intangible assets | ||
Original Cost | 12,420 | 5,514 |
Accumulated Amortization | 5,707 | 4,969 |
Net Book Value | 6,713 | 545 |
Software | ||
Amortized intangible assets | ||
Original Cost | 84,339 | 71,362 |
Accumulated Amortization | 28,372 | 24,592 |
Net Book Value | 55,967 | 46,770 |
Other | ||
Amortized intangible assets | ||
Original Cost | 2,023 | 1,953 |
Accumulated Amortization | 1,920 | 1,835 |
Net Book Value | $ 103 | $ 118 |
Debt (Details Textual) |
12 Months Ended | ||
---|---|---|---|
Apr. 13, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 400,000,000 | ||
Current line of credit | $ 90,000,000 | $ 22,000,000 | $ 29,000,000 |
Line of credit | 122,000,000.0 | ||
Debt instrument period of draw down under line of credit | 90 days | ||
Recourse | |||
Debt Instrument [Line Items] | |||
Current line of credit | 22,000,000 | 29,000,000 | |
Minimum tangible net worth | $ 255,000,000 | ||
Current ratio net of hedged inventory, maximum | 125.00% | ||
Current ratio net of hedged inventory, minimum | 100.00% | ||
Debt to capitalized ratio maximum | 70.00% | ||
Working capital | $ 150,000,000 | ||
Interest Coverage Ratio Minimum | 100.00% | ||
Interest coverage ratio, minimum | 265.00% | ||
Aggregate annual maturities of long term debt, 2018 | $ 54,600,000 | ||
Aggregate annual maturities of long term debt, 2019 | 12,100,000 | ||
Aggregate annual maturities of long term debt, 2020 | 20,800,000 | ||
Aggregate annual maturities of long term debt, 2021 | 35,600,000 | ||
Aggregate annual maturities of long term debt, 2022 | 150,800,000 | ||
Aggregate annual maturities of long term debt thereafter | 202,300,000 | ||
Non-recourse | |||
Debt Instrument [Line Items] | |||
Current line of credit | 0 | $ 0 | |
Working capital | $ 14,000,000 | ||
Debt service coverage ratio, minimum | 1.25 | ||
Debt service coverage ratio, maximum | 1.00 | ||
Line of credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 800,000,000 | ||
Line of credit | Long Term Line Of Credit | The Andersons Denison Ethanol LLC | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 15,000,000 | ||
Line of credit | 0 | ||
Standby letters of credit | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 32,500,000 |
Debt (Details) - USD ($) |
Dec. 31, 2017 |
Apr. 13, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Short-term debt | $ 22,000,000 | $ 90,000,000 | $ 29,000,000 |
Current maturities of long-term debt | 54,205,000 | 47,545,000 | |
Long-term debt, less current maturities | 418,339,000 | 397,065,000 | |
Non-recourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 0 | 0 | |
Current maturities of long-term debt | 0 | 0 | |
Long-term debt, less current maturities | 0 | 0 | |
Recourse | |||
Debt Instrument [Line Items] | |||
Short-term debt | 22,000,000 | 29,000,000 | |
Current maturities of long-term debt | 54,205,000 | 47,545,000 | |
Long-term debt, less current maturities | $ 418,339,000 | $ 397,065,000 |
Debt (Details 1) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Debt Disclosure [Abstract] | |||
Maximum amount borrowed | $ 367,000 | $ 412,000 | $ 308,500 |
Weighted average interest rate | 2.56% | 1.94% | 1.64% |
Debt (Details 2) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
||||
Long-term debt | |||||
Less: current maturities | $ 54,205 | $ 47,545 | |||
Total long-term debt | 418,339 | 397,065 | |||
Collateralized debt book value | 159,900 | ||||
Recourse | |||||
Long-term debt | |||||
Long-term Debt, Gross | 476,220 | 447,823 | |||
Less: current maturities | 54,205 | 47,545 | |||
Less: unamortized prepaid debt issuance costs | 3,676 | 3,213 | |||
Total long-term debt | 418,339 | 397,065 | |||
Recourse | Note payable, 4.07%, payable at maturity, due 2021 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 26,000 | 26,000 | |||
Interest rate of debt instruments | 4.07% | ||||
Recourse | Notes payable, 3.72%, paid 2017 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 0 | 25,000 | |||
Recourse | Note payable, 4.55%, payable at maturity, due 2023 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 24,000 | 24,000 | |||
Interest rate of debt instruments | 4.55% | ||||
Recourse | Note payable, 4.85%, payable at maturity, due 2026 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 25,000 | 25,000 | |||
Interest rate of debt instruments | 4.85% | ||||
Recourse | Note payable, 6.78%, payable at maturity, due 2018 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 41,500 | 41,500 | |||
Interest rate of debt instruments | 6.78% | ||||
Recourse | Note payable, 4.92%, payable in increasing amounts ($2.2 million for 2017), plus interest, due 2021 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 18,241 | 20,443 | ||
Interest rate of debt instruments | 4.92% | ||||
Annual payments | $ 2,200 | ||||
Recourse | Note payable, 4.76%, payable in increasing amounts ($2.1 million for 2017) plus interest, due 2028 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 45,936 | 47,990 | ||
Interest rate of debt instruments | 4.76% | ||||
Annual payments | $ 2,100 | ||||
Recourse | Note payable, variable rate (3.86% at December 31, 2017), payable in increasing amounts ($1.4 million for 2017) plus interest, due 2023 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 17,786 | 19,179 | ||
Interest rate of debt instruments | 3.86% | ||||
Annual payments | $ 1,400 | ||||
Recourse | Note payable, 3.29%, payable in increasing amounts ($1.3 million for 2017) plus interest, due 2022 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 20,293 | 21,619 | ||
Interest rate of debt instruments | 3.29% | ||||
Annual payments | $ 1,300 | ||||
Recourse | Note payable, 4.23%, payable quarterly in varying amounts ($0.7 million for 2017) plus interest, due 2021 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 10,479 | 11,136 | ||
Interest rate of debt instruments | 4.23% | ||||
Annual payments | $ 700 | ||||
Recourse | Notes payable, variable rate, paid 2017 | |||||
Long-term debt | |||||
Long-term Debt, Gross | 0 | 8,790 | |||
Recourse | Note payable, variable rate (3.23% at December 31, 2017), payable in varying amounts ($0.3 million for 2017), plus interest, due 2026 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 8,762 | 9,016 | ||
Interest rate of debt instruments | 3.23% | ||||
Annual payments | $ 300 | ||||
Recourse | Note payable, 4.76%, payable quarterly in varying amounts ($0.4 million for 2017) plus interest, due 2028 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 8,581 | 8,956 | ||
Interest rate of debt instruments | 4.76% | ||||
Annual payments | $ 400 | ||||
Recourse | Note payable, 3.03%, payable at maturity, due 2022 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 100,000 | 30,000 | |||
Interest rate of debt instruments | 3.03% | ||||
Recourse | Note payable, 3.33%, payable in increasing amounts ($1.0 million for 2017) plus interest, due 2025 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 25,960 | 27,000 | ||
Interest rate of debt instruments | 3.33% | ||||
Annual payments | $ 1,000 | ||||
Recourse | Note payable, 4.5%, payable at maturity, due 2030 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 16,000 | 16,000 | |||
Interest rate of debt instruments | 4.50% | ||||
Recourse | Note payable, 5.0%, payable at maturity, due 2040 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 14,000 | 14,000 | |||
Interest rate of debt instruments | 5.00% | ||||
Recourse | Note payable, variable rate, paid 2017 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 0 | 6,513 | |||
Recourse | Variable rate (2.97% at December 31, 2017), payable at maturity, due 2024 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 14,500 | 0 | |||
Interest rate of debt instruments | 2.97% | ||||
Recourse | Variable rate (3.33% at December 31, 2017), payable at maturity, due 2019 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 4,650 | 4,650 | ||
Interest rate of debt instruments | 3.33% | ||||
Recourse | Variable rate (3.33% at December 31, 2017), payable at maturity, due 2025 (a) | |||||
Long-term debt | |||||
Long-term Debt, Gross | [1] | $ 3,100 | 3,100 | ||
Interest rate of debt instruments | 3.33% | ||||
Recourse | Variable rate (3.25% at December 31, 2017), payable at maturity, due 2036 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 21,000 | 21,000 | |||
Interest rate of debt instruments | 3.25% | ||||
Recourse | Debenture bonds, 2.65% to 5.00%, due 2018 through 2032 | |||||
Long-term debt | |||||
Long-term Debt, Gross | $ 30,432 | $ 36,931 | |||
Recourse | Debenture bonds, 2.65% to 5.00%, due 2018 through 2032 | Minimum | |||||
Long-term debt | |||||
Interest rate of debt instruments | 2.65% | ||||
Recourse | Debenture bonds, 2.65% to 5.00%, due 2018 through 2032 | Maximum | |||||
Long-term debt | |||||
Interest rate of debt instruments | 5.00% | ||||
|
Derivatives (Details Textual) |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum period in which contracts for the sale of grain to processors or other consumers extend | 1 year |
Derivatives (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral | ||
Net derivative asset position, Collateral paid | $ 1,351 | $ 28,273 |
Commodity derivative assets | 17,252 | 1,599 |
Net derivative asset position, net | 18,603 | 29,872 |
Net derivative liability position, Collateral paid | 0 | 0 |
Net derivative liability position, Fair value of derivatives | 0 | 0 |
Net derivative liability position, net | $ 0 | $ 0 |
Derivatives (Details 2) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | $ 17,252 | $ 1,599 |
Commodity derivative liabilities | 0 | 0 |
Commodity derivative assets - current | 30,702 | 45,447 |
Commodity derivative assets - noncurrent | 310 | 100 |
Commodity derivative liabilities - current | (29,651) | (23,167) |
Commodity derivative liabilities - noncurrent | (825) | (339) |
Commodity Contract | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 37,730 | 37,739 |
Commodity derivative liabilities | (38,545) | (43,971) |
Cash collateral | 1,351 | 28,273 |
Total | 536 | 22,041 |
Commodity Contract | Commodity derivative assets - current | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 36,929 | 36,146 |
Commodity derivative liabilities | (7,578) | (18,972) |
Cash collateral | 1,351 | 28,273 |
Commodity derivative assets - current | 30,702 | 45,447 |
Commodity Contract | Commodity derivative assets - noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 311 | 140 |
Commodity derivative liabilities | (1) | (40) |
Cash collateral | 0 | 0 |
Commodity derivative assets - noncurrent | 310 | 100 |
Commodity Contract | Commodity derivative liabilities - current | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 489 | 1,447 |
Commodity derivative liabilities | (30,140) | (24,614) |
Cash collateral | 0 | 0 |
Commodity derivative liabilities - current | (29,651) | (23,167) |
Commodity Contract | Commodity derivative liabilities - noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 1 | 6 |
Commodity derivative liabilities | (826) | (345) |
Cash collateral | 0 | 0 |
Commodity derivative liabilities - noncurrent | $ (825) | $ (339) |
Derivatives (Details 3) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Not designated as hedging | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) on commodity derivatives included in cost of sales and merchandising revenues | $ 5,417 | $ (15,012) | $ 62,541 |
Derivatives (Details 4) lb in Thousands, gal in Thousands, bu in Thousands, T in Thousands |
Dec. 31, 2017
bu
|
Dec. 31, 2017
lb
|
Dec. 31, 2017
gal
|
Dec. 31, 2017
T
|
Dec. 31, 2016
bu
|
Dec. 31, 2016
lb
|
Dec. 31, 2016
gal
|
Dec. 31, 2016
T
|
---|---|---|---|---|---|---|---|---|
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 464,085 | 6,074 | 237,885 | 97 | 391,161 | 9,358 | 294,345 | 110 |
Non-exchange traded: | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 277,095 | 6,074 | 197,607 | 97 | 239,451 | 9,358 | 216,225 | 110 |
Non-exchange traded: | Corn | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 218,391 | 0 | 175,549 | 0 | 0 | 0 | ||
Non-exchange traded: | Soybeans | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 18,127 | 0 | 0 | 0 | 20,592 | 0 | 0 | 0 |
Non-exchange traded: | Wheat | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 14,577 | 0 | 0 | 0 | 7,177 | 0 | 0 | 0 |
Non-exchange traded: | Oats | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 25,953 | 0 | 0 | 0 | 36,025 | 0 | 0 | 0 |
Non-exchange traded: | Ethanol | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 0 | 0 | 197,607 | 0 | 0 | 0 | 215,081 | 0 |
Non-exchange traded: | Corn oil | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 0 | 6,074 | 0 | 0 | 0 | 9,358 | 0 | 0 |
Non-exchange traded: | Other | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 47 | 0 | 0 | 97 | 108 | 0 | 1,144 | 110 |
Exchange traded: | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 186,990 | 0 | 40,278 | 0 | 151,710 | 0 | 78,120 | 0 |
Exchange traded: | Corn | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 82,835 | 0 | 0 | 0 | 63,225 | 0 | 0 | 0 |
Exchange traded: | Soybeans | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 37,170 | 0 | 0 | 0 | 39,005 | 0 | 0 | 0 |
Exchange traded: | Wheat | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 65,640 | 0 | 0 | 0 | 45,360 | 0 | 0 | 0 |
Exchange traded: | Oats | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 1,345 | 0 | 0 | 0 | 4,120 | 0 | 0 | 0 |
Exchange traded: | Ethanol | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 0 | 0 | 39,438 | 0 | 0 | 0 | 78,120 | 0 |
Exchange traded: | Other | ||||||||
Amounts of quantities outstanding included in commodity derivative contracts | ||||||||
Nonmonetary notional amount | 0 | 0 | 840 | 0 |
Derivatives (Details 5) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Open interest rate contracts | |
Initial Notional Amount (in millions) | $ 63.0 |
Not designated as hedging | Long-term Interest Rate Swap, 2012 | |
Open interest rate contracts | |
Year Entered | 2012 |
Year of Maturity | 2023 |
Initial Notional Amount (in millions) | $ 23.0 |
Hedged Item | Interest rate component of debt - not accounted for as a hedge |
Interest Rate | 1.90% |
Not designated as hedging | Long-term Interest Rate Collar, 2013 | Cash flow hedge | |
Open interest rate contracts | |
Year Entered | 2013 |
Year of Maturity | 2021 |
Initial Notional Amount (in millions) | $ 40.0 |
Hedged Item | Interest rate component of debt - not accounted for as a hedge |
Not designated as hedging | Long-term Interest Rate Collar, 2013 | Cash flow hedge | Minimum | |
Open interest rate contracts | |
Interest Rate | 2.90% |
Not designated as hedging | Long-term Interest Rate Collar, 2013 | Cash flow hedge | Maximum | |
Open interest rate contracts | |
Interest Rate | 4.80% |
Derivatives (Details 6) - Not designated as hedging - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Long-term Liabilities | Interest rate contract | ||
Derivative [Line Items] | ||
Derivative liabilities | $ (1,244) | $ (2,530) |
Other Current Assets | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative assets | $ 426 | $ (112) |
Derivatives (Details 7) - Not designated as hedging - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Interest rate contract | Interest rate derivative gains (losses) included in Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (losses) on derivatives | $ 1,286 | $ 603 |
Foreign Exchange Contract | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (losses) on derivatives | $ 539 | $ (112) |
Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Employee Benefit Plan Obligations (Textual) [Abstract] | |||
Company's expense for its defined contribution plans | $ 7,300 | $ 7,800 | $ 8,700 |
Pension settlement charge, net of cash contributed | $ 0 | $ 0 | 48,344 |
Other (income) and expenses, net | |||
Employee Benefit Plan Obligations (Textual) [Abstract] | |||
Pension settlement charges | 31,900 | ||
Pension settlement charge, net of cash contributed | $ 51,400 |
Employee Benefit Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 7,112 | $ 8,677 | |
Service cost | 0 | 0 | $ 236 |
Interest cost | 155 | 194 | 182 |
Actuarial (gains) losses | (245) | (421) | |
Participant contributions | 0 | 0 | |
Retiree drug subsidy received | 0 | 0 | |
Benefits paid | (1,190) | (1,338) | |
Benefit obligation at end of year | 5,832 | 7,112 | 8,677 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 285 | |
Actual gains on plan assets | 0 | 0 | |
Company contributions | 1,190 | 1,053 | |
Participant contributions | 0 | 0 | |
Benefits paid | (1,190) | (1,338) | |
Fair value of plan assets at end of year | 0 | 0 | 285 |
Under funded status of plans at end of year | (5,832) | (7,112) | |
Postretirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 29,757 | 39,152 | |
Service cost | 391 | 760 | 900 |
Interest cost | 985 | 1,549 | 1,584 |
Actuarial (gains) losses | (7,903) | (10,823) | |
Participant contributions | 463 | 653 | |
Retiree drug subsidy received | 184 | 5 | |
Benefits paid | (1,275) | (1,539) | |
Benefit obligation at end of year | 22,602 | 29,757 | 39,152 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual gains on plan assets | 0 | 0 | |
Company contributions | 812 | 886 | |
Participant contributions | 463 | 653 | |
Benefits paid | (1,275) | (1,539) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Under funded status of plans at end of year | $ (22,602) | $ (29,757) |
Employee Benefit Plans (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Amounts recognized in the consolidated balance sheets | ||
Employee benefit plan obligations | $ (26,716) | $ (35,026) |
Pension Benefits | ||
Amounts recognized in the consolidated balance sheets | ||
Accrued expenses | (1,232) | (1,295) |
Employee benefit plan obligations | (4,600) | (5,817) |
Net amount recognized | (5,832) | (7,112) |
Postretirement Benefits | ||
Amounts recognized in the consolidated balance sheets | ||
Accrued expenses | (1,098) | (1,148) |
Employee benefit plan obligations | (21,504) | (28,609) |
Net amount recognized | $ (22,602) | $ (29,757) |
Employee Benefit Plans (Details 2) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Pension Benefits | |
Details of the pre-tax amounts recognized in accumulated other comprehensive loss | |
Balance at beginning of year, Unamortized Actuarial Net Losses | $ 4,244 |
Balance at beginning of year, Unamortized Prior Service Costs | 0 |
Amounts arising during the period, Unamortized Actuarial Net Losses | (245) |
Amounts arising during the period, Unamortized Prior Service Costs | 0 |
Amounts recognized as a component of net periodic benefit cost, Unamortized Actuarial Net Losses | (252) |
Amounts recognized as a component of net periodic benefit cost, Unamortized Prior Service Costs | 0 |
Balance at end of year, Unamortized Actuarial Net Losses | 3,747 |
Balance at end of year, Unamortized Prior Service Costs | 0 |
Postretirement Benefits | |
Details of the pre-tax amounts recognized in accumulated other comprehensive loss | |
Balance at beginning of year, Unamortized Actuarial Net Losses | 397 |
Balance at beginning of year, Unamortized Prior Service Costs | 0 |
Amounts arising during the period, Unamortized Actuarial Net Losses | (7,903) |
Amounts arising during the period, Unamortized Prior Service Costs | 0 |
Amounts recognized as a component of net periodic benefit cost, Unamortized Actuarial Net Losses | 0 |
Amounts recognized as a component of net periodic benefit cost, Unamortized Prior Service Costs | 455 |
Balance at end of year, Unamortized Actuarial Net Losses | (7,506) |
Balance at end of year, Unamortized Prior Service Costs | $ 455 |
Employee Benefit Plans (Details 3) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost | |
Prior service cost | $ (455) |
Net actuarial loss | 252 |
Pension Benefits | |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost | |
Prior service cost | 0 |
Net actuarial loss | 252 |
Postretirement Benefits | |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost | |
Prior service cost | (455) |
Net actuarial loss | $ 0 |
Employee Benefit Plans (Details 4) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Amounts applicable to the Company's defined benefit plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | $ 5,832 | $ 7,112 |
Accumulated benefit obligation | $ 5,832 | $ 7,112 |
Employee Benefit Plans (Details 5) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Pension Benefits | |
Combined benefits expected to be paid for all Company defined benefit plans | |
2018 | $ 1,232 |
2019 | 1,316 |
2020 | 1,255 |
2021 | 1,168 |
2022 | 311 |
2023-2027 | 957 |
Expected Postretirement Benefit Payout | |
Combined benefits expected to be paid for all Company defined benefit plans | |
2018 | 1,098 |
2019 | 1,125 |
2020 | 1,146 |
2021 | 1,173 |
2022 | 1,204 |
2023-2027 | $ 6,262 |
Employee Benefit Plans (Details 6) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Pension Benefits | |||
Components of the net periodic benefit cost | |||
Service cost | $ 0 | $ 0 | $ 236 |
Interest cost | 155 | 194 | 182 |
Expected return on plan assets | 0 | 0 | 0 |
Recognized net actuarial loss | 252 | 146 | 1,516 |
Benefit cost (income) | 407 | 340 | 1,934 |
Postretirement Benefits | |||
Components of the net periodic benefit cost | |||
Service cost | 391 | 760 | 900 |
Interest cost | 985 | 1,549 | 1,584 |
Expected return on plan assets | (455) | (355) | (543) |
Recognized net actuarial loss | 0 | 768 | 1,517 |
Benefit cost (income) | $ 921 | $ 2,722 | $ 3,458 |
Employee Benefit Plans (Details 7) |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||
Pension Benefits | ||||||||
Used to Determine Benefit Obligations at Measurement Date | ||||||||
Discount rate for net periodic cost | [1] | 0.65% | ||||||
Postretirement Benefits | ||||||||
Used to Determine Benefit Obligations at Measurement Date | ||||||||
Discount rate for benefit obligations | [2] | 3.40% | 4.00% | 4.20% | ||||
Discount rate for net periodic cost | [1] | 3.70% | 4.20% | 3.90% | ||||
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% | |||||
Rate of compensation increases | 0.00% | 0.00% | 0.00% | |||||
Supplemental Employee Retirement Plan | ||||||||
Used to Determine Benefit Obligations at Measurement Date | ||||||||
Discount rate for benefit obligations | 2.50% | 2.40% | 2.60% | |||||
Discount rate for net periodic cost | 2.40% | 2.60% | 2.40% | |||||
|
Employee Benefit Plans (Details 8) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Assumed Health Care Cost Trend Rates at Beginning of Year | ||
Health care cost trend rate assumed for next year | 5.00% | 3.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (a) | 5.00% | |
Year that the rate reaches the ultimate trend rate (a) | 2017 |
Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Current: | |||
Federal | $ (1,668) | $ (702) | $ (3,237) |
State and local | 643 | 199 | (762) |
Foreign | 1,125 | 1,385 | 1,224 |
Total current income tax provision | 100 | 882 | (2,775) |
Deferred: | |||
Federal | (61,655) | 3,523 | 1,756 |
State and local | (2,107) | 1,696 | 519 |
Foreign | 528 | 810 | 258 |
Total deferred income tax provision | (63,234) | 6,029 | 2,533 |
Federal | (63,323) | 2,821 | (1,481) |
State and local | (1,464) | 1,895 | (243) |
Foreign | 1,653 | 2,195 | 1,482 |
Total income tax expense | $ (63,134) | $ 6,911 | $ (242) |
Income Taxes (Details 1) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Components of income before income taxes | |||
U.S. | $ (25,645) | $ 11,526 | $ (18,867) |
Foreign | 5,120 | 9,855 | 7,303 |
Income (loss) before income taxes | $ (20,525) | $ 21,381 | $ (11,564) |
Income Taxes (Details 2) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Effective tax rate reconciliation | |||
Statutory U.S. federal tax rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) in rate resulting from: | |||
Effect of noncontrolling interest | 0.20% | (4.70%) | 5.30% |
State and local income taxes, net of related federal taxes | (4.20%) | 5.80% | 1.40% |
Income taxes on foreign earnings | (2.20%) | (1.30%) | 9.40% |
Change in federal and state tax rates | 374.80% | 0.00% | 0.00% |
Goodwill impairment | (93.50%) | 0.00% | (35.60%) |
Equity Method Investments | (0.40%) | 0.30% | 1.90% |
Tax effect of one-time transition tax | (7.10%) | 0.00% | 0.00% |
Release of unrecognized tax benefts | 3.00% | 0.10% | 0.50% |
Nondeductible compensation | (2.50%) | 2.00% | (5.00%) |
Tax associated with accrued and unpaid dividends | 0.10% | 3.20% | (13.60%) |
Federal income tax credits | (0.00%) | (7.30%) | (0.00%) |
Change in pre-acquisition tax liability and other costs | 0.00% | 0.00% | 3.50% |
Other, net | 4.40% | (0.80%) | (0.70%) |
Effective tax rate | 307.60% | 32.30% | 2.10% |
Income Taxes (Details 3) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deferred tax liabilities: | ||
Property, plant and equipment and Rail Group assets leased to others | $ (129,876) | $ (179,250) |
Equity method investments | (31,223) | (45,244) |
Other | (8,754) | (22,286) |
Deferred tax liabilities | (169,853) | (246,780) |
Deferred tax assets: | ||
Employee benefits | 15,229 | 25,403 |
Accounts and notes receivable | 2,317 | 2,964 |
Inventory | 6,100 | 9,979 |
Federal income tax credits | 10,225 | 7,150 |
Net operating loss carryforwards | 5,753 | 3,322 |
Other | 9,674 | 16,224 |
Total deferred tax assets | 49,298 | 65,042 |
Valuation allowance | (1,024) | (310) |
Net deferred tax assets | 48,274 | 64,732 |
Net deferred tax liabilities | $ (121,579) | $ (182,048) |
Income Taxes (Details 4) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 1,452 | $ 1,431 | $ 1,487 |
Additions based on tax positions related to the current year | 0 | 113 | 55 |
Additions based on tax positions related to prior years | 0 | 691 | |
Reductions based on tax positions related to prior years | (92) | (40) | (518) |
Reductions as a result of a lapse in statute of limitations | (573) | (52) | (284) |
Balance at ending of year | $ 787 | $ 1,452 | $ 1,431 |
Income Taxes (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2018 |
|
Operating Loss Carryforwards [Line Items] | |||||
Income taxes paid, net of refunds | $ 2,065 | $ (10,587) | $ 4,909 | ||
Net tax benefit recorded due to change in corporate tax rate | $ 73,500 | ||||
One-time mandatory charge relating to previously recognized deferred earnings in foreign subsidiaries | 1,400 | ||||
Credit resulting from remeasurement of deferred tax liability | 74,900 | ||||
Net deferred tax assets | 121,730 | 121,730 | 182,113 | ||
Tax credits carryforward general business | 7,100 | 7,100 | |||
Tax credit carryforwards foreign | 3,100 | ||||
Deferred tax benefit | 2,600 | ||||
Current tax provision benefit | (100) | (882) | $ 2,775 | ||
Penalties and interest liabilities | 300 | 300 | 400 | ||
Penalties and interest expense | 100 | 200 | |||
Scenario, Forecast | |||||
Operating Loss Carryforwards [Line Items] | |||||
Decrease in reserve during next 12 due to settling of state tax appeals and lapse of statue of limitations | $ (200) | ||||
Expiration Begins, 2034 | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 15,700 | 15,700 | |||
Expiration Begins, 2018 | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 81,900 | 81,900 | |||
Expiration Begins, 2035 | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 100 | 100 | |||
Latest Tax Year | |||||
Operating Loss Carryforwards [Line Items] | |||||
Current tax provision benefit | 1,800 | ||||
Railroad Track Maintenance Credits | |||||
Operating Loss Carryforwards [Line Items] | |||||
Railroad track maintenance credits deferred to future periods | $ 6,000 | ||||
U.S. | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net deferred tax assets | 122,000 | $ 122,000 | |||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Non-cash charge to income tax expense for additional valuation allowance | $ 600 |
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning Balance | [1] | $ (12,468) | $ (20,939) | $ (54,595) | |||
Other comprehensive income before reclassifications | [1] | 10,115 | 8,818 | (31,825) | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | (347) | (347) | 65,481 | |||
Other comprehensive income (loss) | [1] | 9,768 | 8,471 | 33,656 | |||
Ending balance | [1] | (2,700) | (12,468) | (20,939) | |||
Losses on Cash Flow Hedges | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning Balance | [1] | 0 | (111) | (364) | |||
Other comprehensive income before reclassifications | [1] | 111 | 253 | ||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | 0 | ||||
Other comprehensive income (loss) | [1] | 111 | 253 | ||||
Ending balance | [1] | 0 | (111) | ||||
Foreign Currency Translation Adjustments | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning Balance | [1] | (11,002) | (12,041) | (4,709) | |||
Other comprehensive income before reclassifications | [1] | 3,286 | 1,039 | (7,332) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | [1] | 0 | 0 | |||
Other comprehensive income (loss) | [1] | 3,286 | 1,039 | (7,332) | |||
Ending balance | [1] | (7,716) | (11,002) | (12,041) | |||
Investment in Convertible Preferred Securities | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning Balance | [1] | 0 | 126 | 126 | |||
Other comprehensive income before reclassifications | [1] | 344 | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | (126) | 0 | |||
Other comprehensive income (loss) | [1] | 344 | (126) | 0 | |||
Ending balance | [1] | 344 | 0 | 126 | |||
Defined Benefit Plan Items | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning Balance | [1] | (1,466) | (8,913) | (49,648) | |||
Other comprehensive income before reclassifications | [1] | 6,485 | 7,668 | (24,746) | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | (347) | (221) | 65,481 | |||
Other comprehensive income (loss) | [1] | 6,138 | 7,447 | 40,735 | |||
Ending balance | [1] | $ 4,672 | $ (1,466) | $ (8,913) | |||
|
Accumulated Other Comprehensive Loss Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Income (loss) before income taxes | $ (20,525) | $ 21,381 | $ (11,564) | |||||||
Income tax benefit | 63,134 | (6,911) | 242 | |||||||
Net income (loss) | 42,609 | 14,470 | (11,322) | |||||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Net income (loss) | [1] | (347) | (347) | (40,532) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior-service cost | ||||||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Amortization of prior-service cost | [1],[2] | (455) | (354) | (543) | ||||||
Income (loss) before income taxes | [1] | (455) | (354) | (543) | ||||||
Income tax benefit | 108 | 133 | 204 | |||||||
Net income (loss) | [1] | $ (347) | (221) | (339) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | Recognition of gain on sale of investment | ||||||||||
Schedule of Reclassifciations Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Amortization of prior-service cost | [3] | 200 | 64,939 | |||||||
Income (loss) before income taxes | [3] | (200) | (64,939) | |||||||
Income tax benefit | 74 | 24,746 | ||||||||
Net income (loss) | [3] | $ (126) | $ (40,193) | |||||||
|
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) attributable to The Andersons, Inc. | $ 69,720 | $ 2,533 | $ (26,653) | $ (3,089) | $ 10,145 | $ 1,722 | $ 14,423 | $ (14,696) | $ 42,511 | $ 11,594 | $ (13,067) |
Less: Distributed and undistributed earnings allocated to non-vested restricted stock | 1 | 9 | 29 | ||||||||
Earnings (losses) available to common shareholders | $ 42,510 | $ 11,585 | $ (13,096) | ||||||||
Earnings per share – basic: | |||||||||||
Weighted average shares outstanding – basic (shares) | 28,126,000 | 28,193,000 | 28,288,000 | ||||||||
Earnings per share-basic (in dollars per share) | $ 2.48 | $ 0.09 | $ (0.94) | $ (0.11) | $ 0.36 | $ 0.06 | $ 0.51 | $ (0.52) | $ 1.51 | $ 0.41 | $ (0.46) |
Earnings per share – diluted: | |||||||||||
Weighted average shares outstanding – basic (shares) | 28,126,000 | 28,193,000 | 28,288,000 | ||||||||
Effect of dilutive awards (shares) | 170,000 | 238,000 | 0 | ||||||||
Weighted average shares outstanding – diluted | 28,296,000 | 28,431,000 | 28,288,000 | ||||||||
Earnings per share-diluted (in dollars per share) | $ 2.47 | $ 0.09 | $ (0.94) | $ (0.11) | $ 0.36 | $ 0.06 | $ 0.51 | $ (0.52) | $ 1.50 | $ 0.41 | $ (0.46) |
Earnings Per Share (Textual) [Abstract] | |||||||||||
Antidilutive stock-based awards outstanding (shares) | 22,000 | 0 |
Fair Value Measurements (Details) - Fair Value, Measurements, Nonrecurring [Member] - Property, Plant and Equipment $ in Thousands |
Dec. 31, 2017
USD ($)
|
[1] | ||
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Nonrecurring | $ 29,347 | |||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Nonrecurring | $ 29,347 | |||
|
Fair Value Measurements (Details 1) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Assets and liabilities measured at fair value on a recurring basis | |||||||||||
Restricted cash | $ 471 | ||||||||||
Commodity derivatives, net | [1] | $ 536 | 22,041 | ||||||||
Provisionally priced contracts | [2] | (165,284) | (170,197) | ||||||||
Convertible preferred securities | [3] | 7,388 | 3,294 | ||||||||
Other assets and liabilities | [4] | 8,461 | 6,861 | ||||||||
Total | (148,899) | (137,530) | |||||||||
Level 1 | |||||||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||||||
Restricted cash | 471 | ||||||||||
Commodity derivatives, net | [1] | 18,603 | 29,872 | ||||||||
Provisionally priced contracts | [2] | (98,190) | (105,321) | ||||||||
Convertible preferred securities | [3] | 0 | 0 | ||||||||
Other assets and liabilities | [4] | 9,705 | 9,391 | ||||||||
Total | (69,882) | (65,587) | |||||||||
Level 2 | |||||||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||||||
Restricted cash | 0 | ||||||||||
Commodity derivatives, net | [1] | (18,067) | (7,831) | ||||||||
Provisionally priced contracts | [2] | (67,094) | (64,876) | ||||||||
Convertible preferred securities | [3] | 0 | 0 | ||||||||
Other assets and liabilities | [4] | (1,244) | (2,530) | ||||||||
Total | (86,405) | (75,237) | |||||||||
Level 3 | |||||||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||||||
Restricted cash | 0 | ||||||||||
Commodity derivatives, net | [1] | 0 | 0 | ||||||||
Provisionally priced contracts | [2] | 0 | 0 | ||||||||
Convertible preferred securities | [3] | 7,388 | 3,294 | ||||||||
Other assets and liabilities | [4] | 0 | 0 | ||||||||
Total | $ 7,388 | $ 3,294 | |||||||||
|
Fair Value Measurements (Details 2) - Level 3 - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Contingent Consideration | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Liabilities at January 1, | $ 0 | $ (350) |
New investments | 0 | 0 |
Sales proceeds | 0 | 0 |
Gains (losses) included in earnings | 0 | 350 |
Unrealized gains (losses) included in other comprehensive income | 0 | 0 |
Liabilities at December 31, | 0 | 0 |
Convertible Preferred Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets at January 1, | 3,294 | 13,550 |
New investments | 3,750 | 2,500 |
Sales proceeds | 0 | (13,485) |
Gains (losses) included in earnings | 0 | 729 |
Unrealized gains (losses) included in other comprehensive income | 344 | 0 |
Assets at December 31, | $ 7,388 | $ 3,294 |
Fair Value Measurements (Details 3) - Level 3 - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Convertible Preferred Securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets, fair value measurement with unobservable input | $ 7,388 | $ 3,294 | $ 13,550 |
Convertible Preferred Securities | Implied based on market prices | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets, fair value measurement with unobservable input | 7,388 | ||
Convertible Preferred Securities | Cost Basis, Plus Interest | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets, fair value measurement with unobservable input | $ 3,294 | ||
Real Property | Third-Party Appraisal | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets, fair value measurement with unobservable input | $ 29,347 |
Fair Value Measurements (Details 4) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | ||
Debt instrument term | 15 years | |
Carrying Amount | ||
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | ||
Fair value of long-term debt | $ 306,421 | $ 345,576 |
Fair Value | ||
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | ||
Fair value of long-term debt | 304,792 | 348,221 |
Level 2 | Fixed rate long-term notes payable | Carrying Amount | ||
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | ||
Fair value of long-term debt | 275,989 | 308,645 |
Level 2 | Fixed rate long-term notes payable | Fair Value | ||
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | ||
Fair value of long-term debt | 275,340 | 310,338 |
Level 2 | Debenture bonds | Carrying Amount | ||
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | ||
Fair value of long-term debt | 30,432 | 36,931 |
Level 2 | Debenture bonds | Fair Value | ||
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | ||
Fair value of long-term debt | $ 29,452 | $ 37,883 |
Related Party Transactions (Details Textual) gal in Millions |
12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 04, 2015
USD ($)
|
Dec. 31, 2017
USD ($)
Entity
gal
|
Dec. 31, 2016
USD ($)
Entity
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2009
USD ($)
|
Jan. 01, 2017 |
Mar. 31, 2016 |
Dec. 03, 2015 |
Jul. 31, 2013
location
|
Dec. 31, 2007 |
Jan. 31, 2007 |
||||
Related Party Transaction [Line Items] | ||||||||||||||
Total distributions received from unconsolidated affiliates | $ 7,100,000 | |||||||||||||
Proceeds from sale of investments | $ 8,200,000 | |||||||||||||
Realized gain on disposal of investment | 23,100,000 | |||||||||||||
Proceeds from equity method investment, return of capital | 1,300,000 | |||||||||||||
Proceeds from equity method investment, return on capital | $ 6,700,000 | |||||||||||||
Capacity of production facility gallon per year | gal | 110 | |||||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 34.00% | |||||||||||||
Number of ethanol entities | Entity | 3 | 3 | ||||||||||||
Revenues recognized for sale of ethanol | $ 590,900,000 | $ 427,800,000 | $ 428,200,000 | |||||||||||
Revenues recognized for sale of corn | 498,800,000 | 426,800,000 | $ 443,900,000 | |||||||||||
Due from related parties | 5,900,000 | 4,100,000 | ||||||||||||
Receivables due from related parties due more than 30 days | 132,300 | 9,400 | ||||||||||||
Undistributed earnings of equity method investments | 83,200,000 | |||||||||||||
Percentage of new shares acquired from subsidiary (percentage) | 100.00% | |||||||||||||
Related party, gross asset | 200,000 | 4,100,000 | ||||||||||||
Related party, gross liability | $ 2,500,000 | $ 100,000 | ||||||||||||
The Andersons Albion Ethanol LLC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of company ownership interest (percentage) | 55.00% | |||||||||||||
Capacity of production facility gallon per year | gal | 110 | |||||||||||||
The Andersons Marathon Ethanol LLC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of company ownership interest (percentage) | 33.00% | |||||||||||||
Capacity of production facility gallon per year | gal | 110 | |||||||||||||
Equity method investment ownership percentage transferred | 50.00% | 50.00% | ||||||||||||
Additional investment for minority interest ownership by noncontrolling owners | $ 1,100,000 | |||||||||||||
Andersons Ethanol Investments LLC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of company ownership interest (percentage) | 66.00% | |||||||||||||
Lux JV Hold Co | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of company ownership interest (percentage) | 100.00% | |||||||||||||
Thompsons Limited | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of company ownership interest (percentage) | 50.00% | [1] | 50.00% | |||||||||||
Number of locations | location | 12 | |||||||||||||
LTG | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of company ownership interest (percentage) | 31.00% | 38.50% | ||||||||||||
LTG | New Hope | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of company ownership interest (percentage) | 20.00% | |||||||||||||
|
Related Party Transactions (Details 1) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Related Party Transaction [Line Items] | ||||||||||||
Sales | $ 1,004,072 | $ 836,595 | $ 993,662 | $ 852,016 | $ 1,113,055 | $ 859,612 | $ 1,064,244 | $ 887,879 | $ 3,686,345 | $ 3,924,790 | $ 4,198,495 | |
Gross profit | 84,836 | $ 69,671 | $ 87,834 | $ 76,458 | 103,694 | $ 77,015 | $ 97,042 | $ 67,755 | 318,799 | 345,506 | 375,838 | |
Net income (loss) | 42,609 | 14,470 | (11,322) | |||||||||
Current assets | 999,211 | 1,058,126 | 999,211 | 1,058,126 | ||||||||
Current liabilities | 738,716 | 799,776 | 738,716 | 799,776 | ||||||||
Noncontrolling interests | 822,899 | 790,697 | 822,899 | 790,697 | 783,739 | $ 824,049 | ||||||
Subsidiaries | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Sales | 6,080,795 | 6,579,413 | 6,868,257 | |||||||||
Gross profit | 217,629 | 188,350 | 250,847 | |||||||||
Income from continuing operations | 50,937 | 12,288 | 85,220 | |||||||||
Net income (loss) | 42,970 | 6,445 | 81,368 | |||||||||
Current assets | 1,045,124 | 898,081 | 1,045,124 | 898,081 | 1,236,171 | |||||||
Non-current assets | 538,671 | 565,416 | 538,671 | 565,416 | 500,637 | |||||||
Current liabilities | 802,161 | 665,387 | 802,161 | 665,387 | 796,816 | |||||||
Non-current liabilities | 309,649 | 359,816 | 309,649 | 359,816 | 342,075 | |||||||
Noncontrolling interests | $ 0 | $ 3,628 | $ 0 | $ 3,628 | $ 11,716 |
Related Party Transactions (Details 2) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||
Equity method investments | $ 223,239 | $ 216,931 | ||
The Andersons Albion Ethanol LLC | ||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||
Equity method investments | 45,024 | 38,972 | ||
The Andersons Clymers Ethanol LLC | ||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||
Equity method investments | 19,830 | 19,739 | ||
The Andersons Marathon Ethanol LLC | ||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||
Equity method investments | 12,660 | 22,069 | ||
Lansing Trade Group, LLC | ||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||
Equity method investments | 93,088 | 89,050 | ||
Thompsons Limited | ||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||
Equity method investments | [1] | 50,198 | 46,184 | |
Other | ||||
Equity Method Investment Companys Investment Balance In Each Equity Method Investees By Entity [Abstract] | ||||
Equity method investments | $ 2,439 | $ 917 | ||
|
Related Party Transactions (Details 3) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jul. 31, 2013 |
|||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Income earned from Company's equity method investees | $ 16,723 | $ 9,721 | $ 31,924 | |||||||||
Reduction in ownership percentage (percentage) | 0.70% | |||||||||||
The Andersons Albion Ethanol LLC | ||||||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Percentage of company ownership interest (percentage) | 55.00% | |||||||||||
Income earned from Company's equity method investees | $ 6,052 | 6,167 | 5,636 | |||||||||
The Andersons Clymers Ethanol LLC | ||||||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Percentage of company ownership interest (percentage) | 39.00% | |||||||||||
Income earned from Company's equity method investees | $ 4,591 | 6,486 | 6,866 | |||||||||
The Andersons Marathon Ethanol LLC | ||||||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Percentage of company ownership interest (percentage) | 33.00% | |||||||||||
Income earned from Company's equity method investees | $ 1,571 | 5,814 | 4,718 | |||||||||
Lansing Trade Group, LLC | ||||||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Percentage of company ownership interest (percentage) | [1] | 33.00% | ||||||||||
Income earned from Company's equity method investees | [2] | $ 4,038 | (9,935) | 11,880 | ||||||||
Thompsons Limited | ||||||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Percentage of company ownership interest (percentage) | 50.00% | [3] | 50.00% | |||||||||
Income earned from Company's equity method investees | [3] | $ 696 | 1,189 | 2,735 | ||||||||
Other | ||||||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Income earned from Company's equity method investees | $ (225) | $ 0 | $ 89 | |||||||||
Other | Minimum | ||||||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Percentage of company ownership interest (percentage) | 5.00% | |||||||||||
Other | Maximum | ||||||||||||
Income Earned From Companys Equity Method Investments By Entity [Abstract] | ||||||||||||
Percentage of company ownership interest (percentage) | 50.00% | |||||||||||
|
Related Party Transactions (Details 4) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||||||||||
Related party transactions entered into for the time periods presented | ||||||||||||||||
Sales revenues | $ 893,950 | $ 749,746 | $ 825,220 | |||||||||||||
Service fee revenues | [1] | 24,357 | 17,957 | 20,393 | ||||||||||||
Purchases of product | 615,739 | 463,832 | 0 | |||||||||||||
Lease income | [2] | 6,175 | 5,966 | 6,664 | ||||||||||||
Labor and benefits reimbursement | [3] | 13,894 | 12,809 | 11,567 | ||||||||||||
Other expenses | [4] | 0 | 149 | $ 1,059 | ||||||||||||
Accounts receivable | [5] | 30,252 | 26,254 | |||||||||||||
Accounts payable | [6] | $ 27,866 | $ 23,961 | |||||||||||||
|
Segment Information (Details Textual) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017
USD ($)
location
segment
store
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments (business segments) | segment | 5 | ||
Number of consolidated segments | segment | 1 | ||
Number of segments accounted for as equity method investments | segment | 3 | ||
Railcar assets leased to others, net | $ 423,443 | $ 327,195 | |
Retail | |||
Segment Reporting Information [Line Items] | |||
Number of stores sold | location | 3 | ||
Number of stores | store | 4 | ||
Canada | Grain | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 166,200 | 78,300 | $ 195,600 |
Canada | Rail | |||
Segment Reporting Information [Line Items] | |||
Revenues | 13,300 | 13,200 | $ 11,000 |
Canada | Railcar | Rail | |||
Segment Reporting Information [Line Items] | |||
Railcar assets leased to others, net | $ 21,200 | $ 26,800 | |
Customer Concentration Risk | Revenues | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10.00% |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | $ 1,004,072 | $ 836,595 | $ 993,662 | $ 852,016 | $ 1,113,055 | $ 859,612 | $ 1,064,244 | $ 887,879 | $ 3,686,345 | $ 3,924,790 | $ 4,198,495 | ||
Interest expense (income) | 21,567 | 21,119 | 20,072 | ||||||||||
Equity in earnings of affiliates, net | 16,723 | 9,721 | 31,924 | ||||||||||
Other income, net | 23,444 | 14,775 | 46,472 | ||||||||||
Income (loss) before income taxes | (20,525) | 21,381 | (11,564) | ||||||||||
Identifiable assets | 2,162,354 | 2,232,849 | 2,162,354 | 2,232,849 | |||||||||
Capital expenditures | 34,602 | 77,740 | 72,469 | ||||||||||
Acquisition of businesses, net of cash acquired and other investments | 9,186 | 2,500 | 129,299 | ||||||||||
Depreciation and amortization | 86,412 | 84,325 | 78,456 | ||||||||||
Operating Segments | Grain | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 2,106,464 | 2,357,171 | 2,483,643 | ||||||||||
Interest expense (income) | 8,320 | 7,955 | 5,778 | ||||||||||
Equity in earnings of affiliates, net | 4,509 | (8,746) | 14,703 | ||||||||||
Other income, net | 3,658 | 5,472 | 26,229 | ||||||||||
Income (loss) before income taxes | 12,844 | (15,651) | (9,446) | ||||||||||
Identifiable assets | 948,871 | 961,114 | 948,871 | 961,114 | |||||||||
Capital expenditures | 10,899 | 21,428 | 26,862 | ||||||||||
Acquisition of businesses, net of cash acquired and other investments | 5,436 | 0 | 0 | ||||||||||
Depreciation and amortization | 18,757 | 18,232 | 19,240 | ||||||||||
Operating Segments | Ethanol | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 708,063 | 544,556 | 556,188 | ||||||||||
Interest expense (income) | (67) | 35 | 70 | ||||||||||
Equity in earnings of affiliates, net | 12,214 | 18,467 | 17,221 | ||||||||||
Other income, net | 54 | 77 | 377 | ||||||||||
Income (loss) before income taxes | 18,878 | 24,723 | 28,503 | ||||||||||
Identifiable assets | 180,173 | 171,115 | 180,173 | 171,115 | |||||||||
Capital expenditures | 3,690 | 2,301 | 7,223 | ||||||||||
Depreciation and amortization | 5,970 | 5,925 | 5,865 | ||||||||||
Operating Segments | Plant Nutrient | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 651,824 | 725,176 | 848,338 | ||||||||||
Interest expense (income) | 6,420 | 6,448 | 7,243 | ||||||||||
Other income, net | 5,092 | 3,716 | 3,046 | ||||||||||
Income (loss) before income taxes | (45,121) | 14,176 | 121 | ||||||||||
Identifiable assets | 379,309 | 484,455 | 379,309 | 484,455 | |||||||||
Capital expenditures | 10,735 | 15,153 | 14,384 | ||||||||||
Acquisition of businesses, net of cash acquired and other investments | 0 | 0 | 128,549 | ||||||||||
Depreciation and amortization | 26,628 | 28,663 | 25,179 | ||||||||||
Operating Segments | Rail | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 172,123 | 163,658 | 170,848 | ||||||||||
Interest expense (income) | 7,023 | 6,461 | 7,006 | ||||||||||
Other income, net | 2,632 | 2,218 | 15,935 | ||||||||||
Income (loss) before income taxes | 24,798 | 32,428 | 50,681 | ||||||||||
Identifiable assets | 490,448 | 398,446 | 490,448 | 398,446 | |||||||||
Capital expenditures | 3,478 | 4,345 | 2,990 | ||||||||||
Depreciation and amortization | 23,081 | 20,082 | 18,450 | ||||||||||
Operating Segments | Retail | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 47,871 | 134,229 | 139,478 | ||||||||||
Interest expense (income) | 324 | 496 | 356 | ||||||||||
Other income, net | 10,684 | 507 | 557 | ||||||||||
Income (loss) before income taxes | (7,309) | (8,848) | (455) | ||||||||||
Identifiable assets | 4,349 | 31,257 | 4,349 | 31,257 | |||||||||
Capital expenditures | 0 | 436 | 1,005 | ||||||||||
Depreciation and amortization | 70 | 2,452 | 2,510 | ||||||||||
Inter-Segments | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 2,215 | 3,507 | 5,447 | ||||||||||
Inter-Segments | Grain | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 761 | 1,638 | 3,573 | ||||||||||
Inter-Segments | Plant Nutrient | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 241 | 470 | 682 | ||||||||||
Inter-Segments | Rail | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales and merchandising revenues | 1,213 | 1,399 | 1,192 | ||||||||||
Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Interest expense (income) | (453) | (276) | (381) | ||||||||||
Other income, net | 1,324 | 2,785 | 328 | ||||||||||
Income (loss) before income taxes | [1] | (24,713) | (28,323) | (82,713) | |||||||||
Identifiable assets | $ 159,204 | $ 186,462 | 159,204 | 186,462 | |||||||||
Capital expenditures | 5,800 | 34,077 | 20,005 | ||||||||||
Acquisition of businesses, net of cash acquired and other investments | 3,750 | 2,500 | 750 | ||||||||||
Depreciation and amortization | 11,906 | 8,971 | 7,212 | ||||||||||
Non-controlling interest | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Income (loss) before income taxes | $ 98 | $ 2,876 | $ 1,745 | ||||||||||
|
Commitments and Contingencies (Details Textual) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Aug. 31, 2015 |
Dec. 31, 2017
USD ($)
Joint_Venture
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2017
USD ($)
|
|
Operating Leased Assets [Line Items] | |||||
Lease income per diem arrangements recognized | $ 5.6 | $ 4.9 | $ 5.0 | ||
Management and service fees | 5.9 | 5.7 | 7.0 | ||
Rental expense under agreements net | 5.4 | 12.3 | 10.9 | ||
Future minimum lease payments, 2018 | 5.4 | ||||
Future minimum lease payments, 2019 | 4.6 | ||||
Future minimum lease payments, 2020 | 4.1 | ||||
Future minimum lease payments, 2021 | 3.8 | ||||
Future minimum lease payments, 2022 | 1.4 | ||||
Future minimum lease payments, thereafter | $ 0.5 | ||||
Number of ethanol joint ventures | Joint_Venture | 2 | ||||
Periods of lease income renewals | 7 years 6 months | ||||
Operating lease income | $ 2.0 | 2.0 | $ 2.0 | ||
Build-to-Suit Lease | |||||
Operating Leased Assets [Line Items] | |||||
Lease agreement initial term of contract | 15 years | ||||
Build-to-Suit Lease | Other Long-term Liabilities | |||||
Operating Leased Assets [Line Items] | |||||
Built-to-suit financial obligation | 24.3 | 14.0 | |||
Build-to-Suit Lease | Other Current Liabilities | |||||
Operating Leased Assets [Line Items] | |||||
Built-to-suit financial obligation | $ 1.4 | $ 0.9 | |||
Plant Nutrient | Legal Claim 2015 [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Loss contingency reserve | $ 2.2 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Lease income and rental expense from operating leases | |||
Rental and service income - operating leases | $ 90,333 | $ 95,254 | $ 97,059 |
Rental expense | $ 16,459 | $ 16,723 | $ 15,214 |
Commitments and Contingencies (Details 1) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Future Rental and Service Income - Operating Leases | |
Future Rental and Service Income - Operating Leases, 2018 | $ 67,716 |
Future Rental and Service Income - Operating Leases, 2019 | 47,005 |
Future Rental and Service Income - Operating Leases, 2020 | 29,875 |
Future Rental and Service Income - Operating Leases, 2021 | 19,739 |
Future Rental and Service Income - Operating Leases, 2022 | 11,901 |
Future Rental and Service Income - Operating Leases, Future years | 20,784 |
Future Rental and Service Income - Operating Leases, Total | 197,020 |
Future Minimum Rental Payments | |
Future Minimum Rental Payments, 2018 | 11,390 |
Future Minimum Rental Payments, 2019 | 6,952 |
Future Minimum Rental Payments, 2020 | 5,100 |
Future Minimum Rental Payments, 2021 | 4,461 |
Future Minimum Rental Payments, 2022 | 3,073 |
Future Minimum Rental Payments, Future years | 9,768 |
Future Minimum Rental Payments, Total | $ 40,744 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Supplemental disclosure of cash flow information | |||
Interest paid | $ 23,958 | $ 21,407 | $ 19,292 |
Income taxes paid, net of refunds | 2,065 | (10,587) | 4,909 |
Noncash investing and financing activity | |||
Capital projects incurred but not yet paid | 6,840 | 3,092 | 7,507 |
Purchase of a productive asset through seller-financing | 0 | 0 | 1,010 |
Shares issued for acquisition of business | 0 | 0 | 4,303 |
Investment merger (decreasing equity method investments and non-controlling interest) | 8,360 | 0 | 0 |
Dividends declared not yet paid | $ 4,650 | $ 4,493 | $ 4,338 |
Stock Compensation Plans (Details Textual) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
May 02, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense recognized | $ 6.1 | $ 7.0 | $ 1.9 | |
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
General vesting period of options granted | 3 years | |||
Restricted Stock Awards | Management and Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued (in shares) | 133.8 | |||
Restricted Stock Awards | Year 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual award vesting rights, percentage | 33.33% | |||
Restricted Stock Awards | Year 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual award vesting rights, percentage | 33.33% | |||
Restricted Stock Awards | Year 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual award vesting rights, percentage | 33.33% | |||
EPS PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
General vesting period of options granted | 3 years | |||
EPS PSUs | Management | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued (in shares) | 84.3 | |||
Percentage of maximum amount available for issuance | 0.00% | 0.00% | 30.00% | |
TSR PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
General vesting period of options granted | 3 years | |||
Unrecognized compensation cost | $ 1.6 | |||
Expected term (in years) | 2 years 9 months 29 days | 2 years 9 months 29 days | ||
Number of shares issued (in shares) | 84.3 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 1 year | 1 year | 1 year | |
The 2014 LT Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized to grant under LT Plan (in shares) | 1.75 | |||
Number of shares remained available (in shares) | 1,000 | |||
The 2014 LT Plan | Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of awards | 7 years | |||
General vesting period of options granted | 3 years | |||
Expected volatility measurement period | 5 years 6 months | |||
Unrecognized compensation cost | $ 0.3 | |||
Expected term (in years) | 5 years 6 months | |||
The 2014 LT Plan | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 2.5 | |||
The 2014 LT Plan | EPS PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 0.6 | |||
2004 ESP | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares remained available (in shares) | 96,000 | |||
Term of treasury issues | 1 year |
Stock Compensation Plans (Details) - Options - The 2014 LT Plan |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 1.80% |
Dividend yield | 1.58% |
Volatility factor of the expected market price of the common shares | 35.00% |
Expected life for the options (in years) | 5 years 6 months |
Stock Compensation Plans (Details 1) - The 2014 LT Plan $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning of period (shares) | shares | 325 |
Options granted (shares) | shares | 0 |
Options exercised, Shares | shares | 0 |
Options cancelled/forfeited (shares) | shares | 0 |
Options outstanding, end of period (shares) | shares | 325 |
Vested and expected to vest (shares) | shares | 325 |
Options exercisable (shares) | shares | 217 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Options outstanding, beginning of period (in dollars per share) | $ 35.40 |
Options granted (in dollars per share) | 0.00 |
Options exercised (in dollars per share) | 0.00 |
Options cancelled/forfeited (in dollars per share) | 0.00 |
Options outstanding, end of period (in dollars per share) | 35.40 |
Vested and expected to vest (in dollars per share) | 35.40 |
Options exercisable (in dollars per share) | $ 35.40 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Options Outstanding, Weighted-Average Remaining Contractual Term | 10 months 2 days |
Vested and expected to vest, Weighted-Average Remaining Contractual Term | 10 months 2 days |
Options exercisable, Weighted-Average Remaining Contractual Term | 10 months 2 days |
Options outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 0 |
Options exercisable, Aggregate Intrinsic Value | $ | 0 |
Total intrinsic value of Options exercised | $ | 0 |
Total fair value of shares vested | $ | $ 1,123 |
Weighted average fair value of Options granted (in dollars per share) | $ 0 |
Stock Compensation Plans (Details 2) - Restricted Stock Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Shares (in thousands) | |||
Nonvested shares at beginning of period (shares) | 223 | ||
Granted (shares) | 134 | ||
Vested (shares) | (113) | ||
Forfeited (shares) | (15) | ||
Nonvested at end of period (shares) | 229 | 223 | |
Weighted-Average Grant-Date Fair Value | |||
Nonvested Shares, Weighted-Average Grant-Date Fair Value at beginning of period (in dollars per share) | $ 31.93 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Granted (in dollars per share) | 37.13 | $ 27.20 | $ 42.32 |
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Vested (in dollars per share) | 33.12 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Forfeited (in dollars per share) | 34.49 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value at end of period (in dollars per share) | $ 34.22 | $ 31.93 | |
Total fair value of shares vested (000's) | $ 3,751 | $ 4,038 | $ 4,918 |
Stock Compensation Plans (Details 3) - EPS PSUs - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Shares (in thousands) | |||
Nonvested shares at beginning of period (shares) | 304 | ||
Nonvested shares, Granted (shares) | (84) | ||
Vested (shares) | 0 | ||
Forfeited (shares) | (113) | ||
Nonvested at end of period (shares) | 275 | 304 | |
Weighted-Average Grant-Date Fair Value | |||
Nonvested Shares, Weighted-Average Grant-Date Fair Value at beginning of period (in dollars per share) | $ 40.76 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Granted (in dollars per share) | 39.20 | $ 27.54 | $ 44.76 |
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Vested (in dollars per share) | 0.00 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Forfeited (in dollars per share) | 49.67 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value at end of period (in dollars per share) | $ 36.61 | $ 40.76 |
Stock Compensation Plans (Details 4) - TSR PSUs |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.55% | |
Dividend yield | 0.00% | |
Volatility factor of the expected market price of the common shares | 41.00% | |
Expected term (in years) | 2 years 9 months 29 days | 2 years 9 months 29 days |
Correlation coefficient | 40.00% |
Stock Compensation Plans (Details 5) - TSR PSUs - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Shares (in thousands) | |||
Nonvested shares at beginning of period (shares) | 118 | ||
Granted (shares) | 84 | ||
Vested (shares) | 0 | ||
Nonvested at end of period (shares) | 183 | 118 | |
Forfeited (shares) | (19) | ||
Weighted-Average Grant-Date Fair Value | |||
Nonvested Shares, Weighted-Average Grant-Date Fair Value at beginning of period (in dollars per share) | $ 26.43 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Granted (in dollars per share) | 42.53 | $ 26.43 | $ 0.00 |
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Vested (in dollars per share) | 0.00 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value, Forfeited (in dollars per share) | 32.04 | ||
Nonvested Shares, Weighted-Average Grant-Date Fair Value at end of period (in dollars per share) | $ 33.26 | $ 26.43 |
Stock Compensation Plans (Details 6) - Employee Stock |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fair value of the option component of the ESP Plan | |||
Risk free interest rate | 1.76% | 0.61% | 0.25% |
Dividend yield | 2.06% | 1.96% | 1.05% |
Volatility factor of the expected market price of the common shares | 28.00% | 36.00% | 41.00% |
Expected life for the options (in years) | 1 year | 1 year | 1 year |
Business Acquisition (Details Textual) - USD ($) |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
May 18, 2015 |
Dec. 31, 2014 |
|
Business Acquisition [Line Items] | |||||
Goodwill | $ 6,024,000 | $ 63,934,000 | $ 63,934,000 | $ 72,365,000 | |
Grain | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 1,171,000 | 0 | 0 | 46,422,000 | |
Plant Nutrient | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 686,000 | $ 59,767,000 | $ 59,767,000 | $ 21,776,000 | |
Insignificant Acquisition in 2017 | Grain | |||||
Business Acquisition [Line Items] | |||||
Purchase price of acquisition | 3,500,000 | ||||
Kay Flow Industries, Inc. | |||||
Business Acquisition [Line Items] | |||||
Percentage of shares outstanding acquired | 100.00% | ||||
Contingent consideration, minimum | $ 0 | ||||
Contingent consideration, maximum | 24,000,000 | ||||
Fair value of consideration for acquisition | $ 0 | 129,429,000 | |||
Contingent consideration | 400,000 | ||||
Goodwill | 47,735,000 | ||||
Kay Flow Industries, Inc. | Plant Nutrient | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 47,700,000 |
Business Acquisition (Details) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
May 18, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||
Goodwill | $ 6,024,000 | $ 63,934,000 | $ 63,934,000 | $ 72,365,000 | |
Kay Flow Industries, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 880,000 | ||||
Accounts receivable | 14,699,000 | ||||
Inventory | 25,094,000 | ||||
Other assets | 6,155,000 | ||||
Intangibles | 53,091,000 | ||||
Goodwill | 47,735,000 | ||||
Property, plant and equipment | 27,478,000 | ||||
Accounts payable | (12,131,000) | ||||
Other current liabilities | (4,866,000) | ||||
Other liabilities | (28,706,000) | ||||
Total purchase price | $ 0 | $ 129,429,000 |
Business Acquisition (Details 1) - Kay Flow Industries, Inc. $ in Thousands |
May 18, 2015
USD ($)
|
|||
---|---|---|---|---|
Intangible assets acquisition | ||||
Acquired identifiable intangible assets | $ 53,091 | |||
Weighted average useful life | 10 years | [1] | ||
Unpatented Technology | ||||
Intangible assets acquisition | ||||
Acquired identifiable intangible assets | $ 13,400 | |||
Weighted average useful life | 10 years | |||
Customer relationships | ||||
Intangible assets acquisition | ||||
Acquired identifiable intangible assets | $ 22,800 | |||
Weighted average useful life | 10 years | |||
Trade name | ||||
Intangible assets acquisition | ||||
Acquired identifiable intangible assets | $ 15,500 | |||
Trade name | Minimum | ||||
Intangible assets acquisition | ||||
Weighted average useful life | 7 years | |||
Trade name | Maximum | ||||
Intangible assets acquisition | ||||
Weighted average useful life | 10 years | |||
Non-compete agreement | ||||
Intangible assets acquisition | ||||
Acquired identifiable intangible assets | $ 1,342 | |||
Weighted average useful life | 5 years | |||
Favorable leasehold interest | ||||
Intangible assets acquisition | ||||
Acquired identifiable intangible assets | $ 49 | |||
Weighted average useful life | 5 years | |||
|
Sale of Assets (Details) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017
USD ($)
location
|
May 02, 2016
USD ($)
location
|
Dec. 31, 2017
USD ($)
location
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Gain on sale of fixtures | $ 14,401 | $ 667 | $ 20,802 | ||
Other Income | |||||
Business Acquisition [Line Items] | |||||
Gain on sale of fixtures | $ 1,200 | ||||
Retail Site | |||||
Business Acquisition [Line Items] | |||||
Number of locations sold | location | 3 | ||||
Cash received from sale of assets | $ 14,700 | ||||
Retail Site | Other Income | |||||
Business Acquisition [Line Items] | |||||
Gain on sale of businesses | $ 8,600 | ||||
Farm Center | FLORIDA | |||||
Business Acquisition [Line Items] | |||||
Number of locations sold | location | 4 | ||||
Cash received from sale of assets | $ 17,400 | ||||
Working Capital Adjustment Receivable | 3,600 | ||||
Farm Center | FLORIDA | Other Income | |||||
Business Acquisition [Line Items] | |||||
Gain on sale of businesses | $ 4,700 | ||||
Grain and Agronomy | IOWA | |||||
Business Acquisition [Line Items] | |||||
Number of locations sold | location | 8 | ||||
Cash received from sale of assets | $ 54,300 |
Exit Costs and Assets Held for Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Restructuring Cost and Reserve [Line Items] | |||
Assets held for sale | $ 37,859 | $ 0 | |
Retail Business | |||
Restructuring Cost and Reserve [Line Items] | |||
Business exit costs | $ 11,500 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Grain Group | TENNESSEE | |||
Restructuring Cost and Reserve [Line Items] | |||
Assets held for sale | 37,900 | ||
Property, plant and equipment, held for sale | 19,500 | ||
Inventories, held for sale | 11,400 | ||
Commodity derivative asset, held for sale | 1,200 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Retail Store | |||
Restructuring Cost and Reserve [Line Items] | |||
Property, plant and equipment, held for sale | 4,200 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Plant Nutrient Group | |||
Restructuring Cost and Reserve [Line Items] | |||
Property, plant and equipment, held for sale | $ 1,600 |
Quarterly Consolidated Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Financial Data [Abstract] | |||||||||||
Sales and merchandising revenues | $ 1,004,072 | $ 836,595 | $ 993,662 | $ 852,016 | $ 1,113,055 | $ 859,612 | $ 1,064,244 | $ 887,879 | $ 3,686,345 | $ 3,924,790 | $ 4,198,495 |
Gross profit | 84,836 | 69,671 | 87,834 | 76,458 | 103,694 | 77,015 | 97,042 | 67,755 | 318,799 | 345,506 | 375,838 |
Net income (loss) attributable to The Andersons, Inc. | $ 69,720 | $ 2,533 | $ (26,653) | $ (3,089) | $ 10,145 | $ 1,722 | $ 14,423 | $ (14,696) | $ 42,511 | $ 11,594 | $ (13,067) |
Earnings per share-basic (in dollars per share) | $ 2.48 | $ 0.09 | $ (0.94) | $ (0.11) | $ 0.36 | $ 0.06 | $ 0.51 | $ (0.52) | $ 1.51 | $ 0.41 | $ (0.46) |
Earnings per share-diluted (in dollars per share) | $ 2.47 | $ 0.09 | $ (0.94) | $ (0.11) | $ 0.36 | $ 0.06 | $ 0.51 | $ (0.52) | $ 1.50 | $ 0.41 | $ (0.46) |
Subsequent Events (Details) |
Feb. 13, 2018
location
|
---|---|
Subsequent Event [Member] | Grain | TENNESSEE | Disposal Group, Held-for-sale, Not Discontinued Operations | |
Subsequent Event [Line Items] | |
Number of locations held for sale | 3 |
Schedule II - Consolidated Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at beginning of period | $ 7,706 | $ 6,938 | $ 4,644 | ||
Charged to costs and expenses | 3,000 | 1,191 | 3,302 | ||
Transferred from (to) allowance for accounts / notes receivable | 0 | 0 | 0 | ||
Deductions | [1] | (1,550) | (423) | (1,008) | |
Balance at end of period | $ 9,156 | $ 7,706 | $ 6,938 | ||
|
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