Derivative Instruments

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

The Company enters into New York Mercantile Exchange NY Harbor ULSD ("NY Harbor ULSD" or previously referred to as heating oil), CBOT Soybean Oil (previously referred to as soybean oil) and New York Mercantile Exchange Natural Gas 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 cash 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 March 31, 2020, the net notional volumes of NY Harbor ULSD, CBOT Soybean Oil and NYMEX Natural Gas covered under the open commodity derivative contracts were approximately 65 million gallons, 171 million pounds and 2 million million British thermal units, respectively.

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:

	March 31, 2020						December 31, 2019
	Assets			Liabilities			Assets			Liabilities
Gross amounts of derivatives recognized at fair value	$	29,039		$	5,508		$	1,633		$	4,749
Cash collateral paid (received)	(438		)	—			9,256			—
Total gross amount recognized	28,601			5,508			10,889			4,749
Gross amounts offset	(5,508		)	(5,508		)	(4,749		)	(4,749		)
Net amount reported in the condensed consolidated balance sheets	$	23,093		$	—		$	6,140		$	—

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

	Location of Gain (Loss) Recognized in income	Three Months   Ended   March 31,   2020		Three Months   Ended   March 31,   2019
Commodity derivatives	Cost of goods sold – Biomass-based diesel	$	53,522	$	(22,739	)