Derivatives (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Estimated fair value of Company's commodity derivative instruments for cash collateral and associated cash as collateral

The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within current or noncurrent commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets:

	June 30, 2019					December 31, 2018				June 30, 2018
(in thousands)	Net derivative asset position			Net derivative liability position		Net derivative asset position		Net derivative liability position		Net derivative asset position			Net derivative liability position
Collateral paid (received)	$	109,346		$	—	$	14,944	$	—	$	(52,888	)	$	—
Fair value of derivatives	(5,996		)	—		22,285		—		68,244			—
Balance at end of period	$	103,350		$	—	$	37,229	$	—	$	15,356		$	—

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities:

	June 30, 2019
(in thousands)	Commodity Derivative Assets - Current			Commodity Derivative Assets - Noncurrent			Commodity Derivative Liabilities - Current			Commodity Derivative Liabilities - Noncurrent			Total
Commodity derivative assets	$	166,652		$	6,748		$	3,360		$	57		$	176,817
Commodity derivative liabilities	(42,983		)	(587		)	(72,729		)	(4,042		)	(120,341		)
Cash collateral paid (received)	109,346			—			—			—			109,346
Balance sheet line item totals	$	233,015		$	6,161		$	(69,369	)	$	(3,985	)	$	165,822

	December 31, 2018
(in thousands)	Commodity Derivative Assets - Current			Commodity Derivative Assets - Noncurrent			Commodity Derivative Liabilities - Current			Commodity Derivative Liabilities - Noncurrent			Total
Commodity derivative assets	$	43,463		$	484		$	706		$	5		$	44,658
Commodity derivative liabilities	(6,986		)	(4		)	(33,353		)	(894		)	(41,237		)
Cash collateral (received)	14,944			—			—			—			14,944
Balance sheet line item totals	$	51,421		$	480		$	(32,647	)	$	(889	)	$	18,365

	June 30, 2018
(in thousands)	Commodity Derivative Assets - Current			Commodity Derivative Assets - Noncurrent			Commodity Derivative Liabilities - Current			Commodity Derivative Liabilities - Noncurrent			Total
Commodity derivative assets	$	123,917		$	1,022		$	626		$	36		$	125,601
Commodity derivative liabilities	(16,770		)	(14		)	(85,786		)	(3,238		)	(105,808		)
Cash collateral (received)	(52,888		)	—			—			—			(52,888		)
Balance sheet line item totals	$	54,259		$	1,008		$	(85,160	)	$	(3,202	)	$	(33,095	)

Amounts of quantities outstanding included in commodity derivative contracts

The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at June 30, 2019, December 31, 2018 and June 30, 2018:

	June 30, 2019
Commodity (in thousands)	Number of Bushels	Number of Gallons	Number of Pounds	Number of Tons
Non-exchange traded:
Corn	648,434	—	—	—
Soybeans	59,594	—	—	—
Wheat	93,621	—	—	—
Oats	40,582	—	—	—
Ethanol	—	211,352	—	—
Corn oil	—	—	8,809	—
Other	23,875	2,532	—	3,179
Subtotal	866,106	213,884	8,809	3,179
Exchange traded:
Corn	317,405	—	—	—
Soybeans	52,762	—	—	—
Wheat	55,150	—	—
Oats	1,045	—	—	—
Ethanol	—	82,988	—	—
Propane	—	13,230	—	—
Other	—	35	—	180
Subtotal	426,362	96,253	—	180
Total	1,292,468	310,137	8,809	3,359

	December 31, 2018
Commodity (in thousands)	Number of Bushels	Number of Gallons	Number of Pounds	Number of Tons
Non-exchange traded:
Corn	250,408	—	—	—
Soybeans	22,463	—	—	—
Wheat	14,017	—	—	—
Oats	26,230	—	—	—
Ethanol	—	244,863	—	—
Corn oil	—	—	2,920	—
Other	494	2,000	—	66
Subtotal	313,612	246,863	2,920	66
Exchange traded:
Corn	130,585	—	—	—
Soybeans	26,985	—	—	—
Wheat	33,760	—	—	—
Oats	1,475	—	—	—
Ethanol	—	77,112	—	—
Subtotal	192,805	77,112	—	—
Total	506,417	323,975	2,920	66

	June 30, 2018
Commodity (in thousands)	Number of Bushels	Number of Gallons	Number of Pounds	Number of Tons
Non-exchange traded:
Corn	272,979	—	—	—
Soybeans	49,208	—	—	—
Wheat	11,163	—	—	—
Oats	36,612	—	—	—
Ethanol	—	332,761		—
Corn oil	—	—	6,158	—
Other	82	1,500		77
Subtotal	370,044	334,261	6,158	77
Exchange traded:
Corn	133,730	—	—	—
Soybeans	45,775	—	—	—
Wheat	48,105	—	—	—
Oats	1,190	—	—	—
Ethanol	—	140,364	—	—
Subtotal	228,800	140,364	—	—
Total	598,844	474,625	6,158	77

Company's Condensed Consolidated Statement of Income gains and location of line items

The net pretax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line item in which they are located for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three months ended June 30,					Six months ended June 30,
(in thousands)	2019			2018		2019		2018
Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues	$	(13,364	)	$	45,844	$	57,291	$	20,608

The recording of derivatives gains and losses and the financial statement line in which they are located are as follows:

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2019			2018			2019			2018
Derivatives not designated as hedging instruments
Interest rate derivative gains (losses) included in Interest income (expense)	$	(1,065	)	$	351		$	(2,055	)	$	1,141
Foreign currency derivative gains (losses) included in Other income, net	$	(366	)	$	(413	)	$	(1,833	)	$	(1,535	)
Derivatives designated as hedging instruments
Interest rate derivative gains (losses) included in Other Comprehensive Income (Loss)	$	(7,926	)	$	67		$	(12,917	)	$	67
Interest rate derivatives gains (losses) included in Interest income (expense)	$	—		$	—		$	165		$	—

Schedule of Fair Value of Interest Rate Derivative Liabilities

At June 30, 2019, December 31, 2018 and June 30, 2018, the Company had recorded the following amounts for the fair value of the Company's other derivatives:

(in thousands)	June 30, 2019			December 31, 2018			June 30, 2018
Derivatives not designated as hedging instruments
Interest rate contracts included in Other long-term assets (Other long-term liabilities)	$	(10,750	)	$	(353	)	$	(37	)
Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities)	$	(22	)	$	(1,122	)	$	(1,109	)
Derivatives designated as hedging instruments
Interest rate contract included in Accrued expenses and other current liabilities	$	—		$	—		$	(88	)
Interest rate contract included in Other assets (Other long-term liabilities)	$	(10,587	)	$	(168	)	$	155

Schedule of Outstanding Interest Rate Derivatives

Outstanding interest rate derivatives, as of June 30, 2019, are as follows:

Interest Rate Hedging Instrument		Year Entered	Year of Maturity	Initial Notional Amount (in millions)		Description	Interest Rate
Long-term
Swap		2014	2023	$	23.0	Interest rate component of debt - not accounted for as a hedge	1.9%
Collar		2016	2021	$	40.0	Interest rate component of debt - not accounted for as a hedge	3.5% to 4.8%
Swap	*	2016	2019	$	50.0	Interest rate component of debt - not accounted for as a hedge	1.2%
Swap	*	2017	2022	$	20.0	Interest rate component of debt - accounted for as a hedge	1.8%
Swap	*	2018	2023	$	10.0	Interest rate component of debt - accounted for as a hedge	2.6%
Swap	*	2018	2025	$	20.0	Interest rate component of debt - accounted for as a hedge	2.7%
Swap		2018	2021	$	40.0	Interest rate component of debt - accounted for as a hedge	2.6%
Swap		2019	2021	$	25.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap		2019	2021	$	50.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap		2019	2025	$	100.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap		2019	2025	$	50.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap		2019	2025	$	50.0	Interest rate component of debt - accounted for as a hedge	2.5%

* Acquired on 1/1/2019 in conjunction with the acquisition of LTG.