Derivative Instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

The Company enters into heating oil and soybean oil futures, swaps and options (commodity contract derivatives) to reduce the risk of price volatility related to anticipated purchases of feedstock raw materials and to protect gross profit margins from potentially adverse effects of price volatility on biomass-based diesel sales where prices are set at a future date. All of the Company’s commodity contract derivatives are designated as non-hedge derivatives and recorded at fair value on the Condensed Consolidated Balance Sheets. Unrealized gains and losses are recognized as a component of biomass-based diesel costs of goods sold reflected in current results of operations. As of September 30, 2015, the Company had 2,967 open commodity contracts.

The Company offsets the fair value amounts recognized for its commodity contract derivatives with cash collateral with the same counterparty under a master netting agreement. The net position is presented within prepaid and other assets in the Condensed Consolidated Balance Sheets. The following table sets forth the fair value of the Company's commodity contract derivatives and amounts that offset within the Condensed Consolidated Balance Sheets:

	September 30, 2015						December 31, 2014
	Assets			Liabilities			Assets			Liabilities
Gross amounts of derivatives recognized at fair value	$	2,999		$	(680	)	$	14,901		$	205
Cash collateral	3,817			—			2,870			4,628
Total gross amount recognized	6,816			(680		)	17,771			4,833
Gross amounts offset	(680		)	680			(4,833		)	(4,833		)
Net amount reported in the condensed consolidated balance sheet	$	6,136		$	—		$	12,938		$	—

The following table sets forth the commodity contract derivatives gains (losses) included in the Condensed Consolidated Statements of Operations:

	Location of Gain (Loss) Recognized in income	Three Months   Ended   September 30,   2015		Three Months   Ended   September 30,   2014		Nine Months   Ended   September 30,   2015		Nine Months   Ended   September 30,   2014
Commodity derivatives	Cost of goods sold – Biomass-based diesel	$	23,349	$	19,249	$	19,358	$	15,811