Revenue

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Many of the Company’s revenues are generated from contracts that are outside the scope of ASC 606 and thus are accounted for under other accounting standards. Specifically, many of the Company's Trade and Renewables sales contracts are derivatives under ASC 815, Derivatives and Hedging. The breakdown of revenues between ASC 606 and ASC 815 is as follows:

	Year ended December 31,
(in thousands)	2021		2020		2019
Revenues under ASC 606	$	2,211,537	$	1,479,686	$	1,344,359
Revenues under ASC 815	10,400,513		6,584,934		6,658,894
Total revenues	$	12,612,050	$	8,064,620	$	8,003,253

Disaggregation of revenue

The following tables disaggregate revenues under ASC 606 by major product/service line:

	Year ended December 31, 2021
(in thousands)	Trade		Renewables		Plant Nutrient		Total
Specialty nutrients	$	—	$	—	$	270,842	$	270,842
Primary nutrients	—		—		500,891		500,891
Products and co-products	313,195		714,120		—		1,027,315
Propane and frac sand	270,695		—		—		270,695
Other	39,864		6,768		95,162		141,794
Total	$	623,754	$	720,888	$	866,895	$	2,211,537

	Year ended December 31, 2020
(in thousands)	Trade		Renewables		Plant Nutrient		Total
Specialty nutrients	$	—	$	—	$	234,806	$	234,806
Primary nutrients	—		—		396,515		396,515
Products and co-products	234,219		408,677		—		642,896
Propane and frac sand	148,175		—		—		148,175
Other	23,599		2,057		31,638		57,294
Total	$	405,993	$	410,734	$	662,959	$	1,479,686

	Year ended December 31, 2019
(in thousands)	Trade		Renewables		Plant Nutrient		Total
Specialty nutrients	$	46,065	$	—	$	239,051	$	285,116
Primary nutrients	33,612		—		377,648		411,260
Products and co-products	217,297		131,178		—		348,475
Propane and frac sand	238,100		—		—		238,100
Other	21,742		9,635		30,031		61,408
Total	$	556,816	$	140,813	$	646,730	$	1,344,359

Substantially all of the Company's revenues accounted for under ASC 606 for the years ended December 31, 2021, 2020 and 2019, respectively, are recorded as a point in time instead of over time.

Specialty and primary nutrients

The Company sells several different types of specialty nutrient products, including: low-salt liquid starter fertilizers, micro-nutrients and other specialty lawn products. These products can be sold through the wholesale distribution channels as well as directly to end users at the farm center locations. Similarly, the Company sells several different types of primary nutrient products, including: nitrogen, phosphorus and potassium. These products may be purchased and re-sold as is or sold as finished goods resulting from a blending and manufacturing process. The contracts associated with specialty and primary nutrients generally have a single performance obligation, as the Company has elected the accounting policy to consider shipping and handling costs as fulfillment costs. Revenue is recognized when control of the product has passed to the customer. Payment terms generally range from 0 - 30 days.

Products and co-products

In addition to the ethanol sales contracts that are considered derivative instruments, the Renewables Group sells several other co-products that remain subject to ASC 606, including E-85, DDGs, syrups and renewable identification numbers (“RINs”). RINs are credits for compliance with the Environmental Protection Agency's Renewable Fuel Standard program and are created by renewable fuel producers. Contracts for these co-products generally have a single performance obligation, as the Company has elected the accounting policy to consider shipping and handling costs as fulfillment costs. Revenue is recognized when control of the product has passed to the customer which follows shipping terms on the contract. Payment terms generally range from 5 - 15 days.

Propane and frac sand

Propane and sand products are primarily sold to United States customers in the energy industry. Revenue is recognized at a point in time when obligations under the terms of a contract with the customer are satisfied. This occurs with the transfer of control of our products to customers when products are shipped for direct sales to customers or when the product is picked up by a customer either at the plant location or transload location. Contracts contain one performance obligation which is the delivery to the customer at a point in time. Revenue is measured as the amount of consideration received in exchange for transferring products. The Company recognizes the cost for shipping as an expense in cost of sales and merchandising revenues when control over the product has transferred to the customer. Payment terms generally range from 0 - 30 days.

Contract balances

The opening and closing balances of the Company’s contract liabilities are as follows:

(in thousands)	2021		2020
Balance at January 1	$	45,634	$	28,467
Balance at December 31	100,847		45,634

The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. Contract liabilities relate to the Plant Nutrient business for payments received in advance of fulfilling our performance obligations under our customer contracts. Contract liabilities are built up at year-end and through the first quarter as a result of payments in advance of fulfilling our performance obligations under our customer contracts in preparation for the spring application season. The contract liabilities are then relieved as obligations are met through the year and begin to build in preparation for a new season as we approach year-end. The variance in contract liabilities at December 31, 2021 compared to the prior years was due to the sharp increase of fertilizer prices.