ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION 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.) |
480 W. Dussel Drive, 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. FINANCIAL INFORMATION | |
PART II. OTHER INFORMATION | |
The Andersons, Inc. Condensed Consolidated Balance Sheets (Unaudited)(In thousands) | |||||||||||
June 30, 2013 | December 31, 2012 | June 30, 2012 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 75,920 | $ | 138,218 | $ | 23,930 | |||||
Restricted cash | 872 | 398 | 5,644 | ||||||||
Accounts receivable, net | 216,432 | 208,877 | 205,046 | ||||||||
Inventories (Note 2) | 444,523 | 776,677 | 597,091 | ||||||||
Commodity derivative assets – current | 121,789 | 103,105 | 122,010 | ||||||||
Deferred income taxes | 2,797 | 15,862 | 18,784 | ||||||||
Other current assets | 44,936 | 54,016 | 38,535 | ||||||||
Total current assets | 907,269 | 1,297,153 | 1,011,040 | ||||||||
Other assets: | |||||||||||
Commodity derivative assets – noncurrent | 87 | 1,906 | 4,844 | ||||||||
Goodwill | 54,387 | 51,418 | 19,226 | ||||||||
Other assets, net | 49,394 | 53,711 | 50,814 | ||||||||
Equity method investments | 195,241 | 190,908 | 189,610 | ||||||||
299,109 | 297,943 | 264,494 | |||||||||
Railcar assets leased to others, net (Note 3) | 242,887 | 228,330 | 252,965 | ||||||||
Property, plant and equipment, net (Note 3) | 371,716 | 358,878 | 266,275 | ||||||||
Total assets | $ | 1,820,981 | $ | 2,182,304 | $ | 1,794,774 |
The Andersons, Inc. Condensed Consolidated Balance Sheets (continued) (Unaudited)(In thousands) | |||||||||||
June 30, 2013 | December 31, 2012 | June 30, 2012 | |||||||||
Liabilities and equity | |||||||||||
Current liabilities: | |||||||||||
Borrowings under short-term line of credit | $ | 50,000 | $ | 24,219 | $ | 309,608 | |||||
Accounts payable for grain | 178,017 | 582,653 | 129,979 | ||||||||
Other accounts payable | 183,971 | 165,201 | 148,497 | ||||||||
Customer prepayments and deferred revenue | 25,621 | 105,410 | 55,912 | ||||||||
Commodity derivative liabilities – current | 58,183 | 33,277 | 29,764 | ||||||||
Accrued expenses and other current liabilities | 57,456 | 66,902 | 51,283 | ||||||||
Current maturities of long-term debt (Note 10) | 45,096 | 15,145 | 29,647 | ||||||||
Total current liabilities | 598,344 | 992,807 | 754,690 | ||||||||
Other long-term liabilities | 15,634 | 18,406 | 11,546 | ||||||||
Commodity derivative liabilities – noncurrent | 5,863 | 1,134 | 454 | ||||||||
Employee benefit plan obligations | 50,754 | 53,131 | 50,437 | ||||||||
Long-term debt, less current maturities (Note 10) | 409,020 | 427,243 | 317,648 | ||||||||
Deferred income taxes | 87,486 | 78,138 | 70,806 | ||||||||
Total liabilities | 1,167,101 | 1,570,859 | 1,205,581 | ||||||||
Commitments and contingencies (Note 11) | |||||||||||
Shareholders’ equity: | |||||||||||
Common shares, without par value (42,000 shares authorized; 19,198 shares issued) | 96 | 96 | 96 | ||||||||
Preferred shares, without par value (1,000 shares authorized; none issued) | — | — | — | ||||||||
Additional paid-in-capital | 182,455 | 181,627 | 180,535 | ||||||||
Treasury shares at cost (469, 554 and 557 shares at 6/30/13, 12/31/12 and 6/30/12, respectively) | (11,448 | ) | (12,559 | ) | (12,519 | ) | |||||
Accumulated other comprehensive loss | (42,025 | ) | (45,379 | ) | (42,998 | ) | |||||
Retained earnings | 506,691 | 470,628 | 444,539 | ||||||||
Total shareholders’ equity of The Andersons, Inc. | 635,769 | 594,413 | 569,653 | ||||||||
Noncontrolling interests | 18,111 | 17,032 | 19,540 | ||||||||
Total equity | 653,880 | 611,445 | 589,193 | ||||||||
Total liabilities and equity | $ | 1,820,981 | $ | 2,182,304 | $ | 1,794,774 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales and merchandising revenues | $ | 1,566,964 | $ | 1,315,834 | $ | 2,838,934 | $ | 2,452,967 | |||||||
Cost of sales and merchandising revenues | 1,463,735 | 1,213,184 | 2,656,432 | 2,264,447 | |||||||||||
Gross profit | 103,229 | 102,650 | 182,502 | 188,520 | |||||||||||
Operating, administrative and general expenses | 61,464 | 59,210 | 123,472 | 119,310 | |||||||||||
Interest expense | 4,855 | 5,380 | 11,259 | 10,710 | |||||||||||
Other income: | |||||||||||||||
Equity in earnings of affiliates | 10,010 | 5,096 | 17,814 | 9,379 | |||||||||||
Other income, net | 1,292 | 2,671 | 4,018 | 5,917 | |||||||||||
Income before income taxes | 48,212 | 45,827 | 69,603 | 73,796 | |||||||||||
Income tax provision | 17,480 | 17,356 | 26,559 | 27,597 | |||||||||||
Net income | 30,732 | 28,471 | 43,044 | 46,199 | |||||||||||
Net income (loss) attributable to the noncontrolling interests | 1,193 | (728 | ) | 927 | (1,407 | ) | |||||||||
Net income attributable to The Andersons, Inc. | $ | 29,539 | $ | 29,199 | $ | 42,117 | $ | 47,606 | |||||||
Per common share: | |||||||||||||||
Basic earnings attributable to The Andersons, Inc. common shareholders | $ | 1.58 | $ | 1.57 | $ | 2.25 | $ | 2.56 | |||||||
Diluted earnings attributable to The Andersons, Inc. common shareholders | $ | 1.57 | $ | 1.56 | $ | 2.24 | $ | 2.54 | |||||||
Dividends paid | $ | 0.1600 | $ | 0.1500 | $ | 0.3200 | $ | 0.3000 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 30,732 | $ | 28,471 | $ | 43,044 | $ | 46,199 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Increase (decrease) in estimated fair value of investment in debt securities (net of income tax of $0, $1,126, ($187) and $1,126) | — | (1,884 | ) | 303 | (1,884 | ) | |||||||||
Change in unrecognized actuarial loss and prior service cost (net of income tax of $693, $895, $925 and $1,135 - Note 1) | 1,144 | 1,497 | 2,913 | 1,898 | |||||||||||
Cash flow hedge activity (net of income tax of $65, $8, $161 and $47) | 108 | 14 | 138 | 78 | |||||||||||
Other comprehensive income (loss) | 1,252 | (373 | ) | 3,354 | 92 | ||||||||||
Comprehensive income | 31,984 | 28,098 | 46,398 | 46,291 | |||||||||||
Comprehensive income (loss) attributable to the noncontrolling interests | 1,193 | (728 | ) | 927 | (1,407 | ) | |||||||||
Comprehensive income attributable to The Andersons, Inc. | $ | 30,791 | $ | 28,826 | $ | 45,471 | $ | 47,698 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Operating Activities | |||||||
Net income | $ | 43,044 | $ | 46,199 | |||
Adjustments to reconcile net income to cash used in operating activities: | |||||||
Depreciation and amortization | 28,184 | 22,500 | |||||
Bad debt expense | 610 | 493 | |||||
Cash distributions (less than) in excess of income of unconsolidated affiliates | (4,333 | ) | 9,451 | ||||
Gains and amortization of deferred gains on sales of railcars and related leases | (14,616 | ) | (8,674 | ) | |||
Excess tax benefit from share-based payment arrangement | (278 | ) | (35 | ) | |||
Deferred income taxes | 22,525 | 4,399 | |||||
Stock based compensation expense | 1,435 | 2,875 | |||||
Other | 714 | 62 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (7,517 | ) | (36,277 | ) | |||
Inventories | 331,596 | 176,766 | |||||
Commodity derivatives | 12,770 | (27,790 | ) | ||||
Other assets | 7,017 | 1,624 | |||||
Accounts payable for grain | (404,636 | ) | (261,925 | ) | |||
Other accounts payable and accrued expenses | (76,184 | ) | (63,758 | ) | |||
Net cash used in operating activities | (59,669 | ) | (134,090 | ) | |||
Investing Activities | |||||||
Purchase of investments | — | (19,996 | ) | ||||
Proceeds from redemption of investment | — | 19,998 | |||||
Acquisition of businesses, net of cash acquired | (3,345 | ) | (93,112 | ) | |||
Purchases of railcars | (56,899 | ) | (77,028 | ) | |||
Proceeds from sale of railcars | 53,243 | 16,057 | |||||
Purchases of property, plant and equipment | (18,549 | ) | (38,171 | ) | |||
Proceeds from sale of property, plant and equipment | 137 | 725 | |||||
Proceeds from minority investor | — | 6,100 | |||||
Change in restricted cash | (474 | ) | 13,007 | ||||
Net cash used in investing activities | (25,887 | ) | (172,420 | ) | |||
Financing Activities | |||||||
Net change in short-term borrowings | 25,781 | 238,108 | |||||
Proceeds from issuance of long-term debt | 36,391 | 106,878 | |||||
Payments of long-term debt | (34,708 | ) | (30,675 | ) | |||
Proceeds from sale of treasury shares to employees and directors | 1,547 | 1,350 | |||||
Payments of debt issuance costs | (46 | ) | (72 | ) | |||
Dividends paid | (5,985 | ) | (5,574 | ) | |||
Excess tax benefit from share-based payment arrangement | 278 | 35 | |||||
Net cash provided by financing activities | 23,258 | 310,050 | |||||
Increase (decrease) in cash and cash equivalents | (62,298 | ) | 3,540 | ||||
Cash and cash equivalents at beginning of period | 138,218 | 20,390 | |||||
Cash and cash equivalents at end of period | $ | 75,920 | $ | 23,930 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Supplemental disclosure of cash flow information | |||||||
Capitalized software costs incurred but not yet paid | $ | 3,839 | $ | — | |||
Purchase of capitalized software through seller-financing | $ | 9,393 | $ | — |
Common Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | Total | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 96 | $ | 179,463 | $ | (14,997 | ) | $ | (43,090 | ) | $ | 402,523 | $ | 14,847 | $ | 538,842 | |||||||||||
Net income (loss) | 47,606 | (1,407 | ) | 46,199 | |||||||||||||||||||||||
Other comprehensive income | 92 | 92 | |||||||||||||||||||||||||
Proceeds received from minority investor | 6,100 | 6,100 | |||||||||||||||||||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $675 (140 shares) | 1,072 | 2,478 | 3,550 | ||||||||||||||||||||||||
Dividends declared ($0.30 per common share) | (5,590 | ) | (5,590 | ) | |||||||||||||||||||||||
Balance at June 30, 2012 | $ | 96 | $ | 180,535 | $ | (12,519 | ) | $ | (42,998 | ) | $ | 444,539 | $ | 19,540 | $ | 589,193 | |||||||||||
Balance at December 31, 2012 | $ | 96 | $ | 181,627 | $ | (12,559 | ) | $ | (45,379 | ) | $ | 470,628 | $ | 17,032 | $ | 611,445 | |||||||||||
Net income | 42,117 | 927 | 43,044 | ||||||||||||||||||||||||
Other comprehensive income | 3,354 | 3,354 | |||||||||||||||||||||||||
Noncontrolling interest | 152 | 152 | |||||||||||||||||||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $1,099 (85 shares) | 773 | 1,111 | 1,884 | ||||||||||||||||||||||||
Dividends declared ($0.32 per common share) | (5,999 | ) | (5,999 | ) | |||||||||||||||||||||||
Performance share unit dividend equivalents | 55 | (55 | ) | — | |||||||||||||||||||||||
Balance at June 30, 2013 | $ | 96 | $ | 182,455 | $ | (11,448 | ) | $ | (42,025 | ) | $ | 506,691 | $ | 18,111 | $ | 653,880 |
Changes in Accumulated Other Comprehensive Loss by Component (a) | |||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013 | For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||
Losses on Cash Flow Hedges | Investment in Debt Securities | Defined Benefit Plan Items | Total | Losses on Cash Flow Hedges | Investment in Debt Securities | Defined Benefit Plan Items | Total | ||||||||||||||||||||||||||
Beginning Balance | $ | (872 | ) | $ | 2,872 | $ | (45,277 | ) | $ | (43,277 | ) | $ | (902 | ) | $ | 2,569 | $ | (47,046 | ) | $ | (45,379 | ) | |||||||||||
Other comprehensive income before reclassifications | 108 | — | 1,229 | 1,337 | 138 | 303 | 3,083 | 3,524 | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | (85 | ) | (85 | ) | — | — | (170 | ) | (170 | ) | |||||||||||||||||||||
Net current-period other comprehensive income | 108 | — | 1,144 | 1,252 | 138 | 303 | 2,913 | 3,354 | |||||||||||||||||||||||||
Ending balance | $ | (764 | ) | $ | 2,872 | $ | (44,133 | ) | $ | (42,025 | ) | $ | (764 | ) | $ | 2,872 | $ | (44,133 | ) | $ | (42,025 | ) | |||||||||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (a) | ||||||||||||
For the Three Months Ended June 30, 2013 | For the Six Months Ended June 30, 2013 | |||||||||||
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 | 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 | $ | (136 | ) | (b) | $ | (272 | ) | (b) | ||||
(136 | ) | Total before tax | (272 | ) | Total before tax | |||||||
51 | Tax expense | 102 | Tax expense | |||||||||
$ | (85 | ) | Net of tax | $ | (170 | ) | Net of tax | |||||
Total reclassifications for the period | $ | (85 | ) | Net of tax | $ | (170 | ) | Net of tax | ||||
(a) Amounts in parentheses indicate debits to profit/loss. | ||||||||||||
(b) This accumulated other comprehensive income component is included in the computation of net periodic pension cost (see Note 6. Employee Benefit Plans footnote for additional details). |
(in thousands) | June 30, 2013 | December 31, 2012 | June 30, 2012 | ||||||||
Grain | $ | 303,018 | $ | 586,983 | $ | 465,453 | |||||
Ethanol and by-products | 17,966 | 22,927 | 18,516 | ||||||||
Agricultural fertilizer and supplies | 71,226 | 100,175 | 57,637 | ||||||||
Lawn and garden fertilizer and corncob products | 23,434 | 37,292 | 21,714 | ||||||||
Retail merchandise | 25,389 | 25,368 | 30,685 | ||||||||
Railcar repair parts | 3,293 | 3,764 | 2,777 | ||||||||
Other | 197 | 168 | 309 | ||||||||
$ | 444,523 | $ | 776,677 | $ | 597,091 |
(in thousands) | June 30, 2013 | December 31, 2012 | June 30, 2012 | ||||||||
Land | $ | 22,637 | $ | 22,258 | $ | 19,505 | |||||
Land improvements and leasehold improvements | 65,625 | 63,013 | 52,536 | ||||||||
Buildings and storage facilities | 224,281 | 214,919 | 172,354 | ||||||||
Machinery and equipment | 295,723 | 287,896 | 243,216 | ||||||||
Software | 13,469 | 12,901 | 11,204 | ||||||||
Construction in progress | 44,146 | 34,965 | 33,613 | ||||||||
665,881 | 635,952 | 532,428 | |||||||||
Less accumulated depreciation and amortization | 294,165 | 277,074 | 266,153 | ||||||||
$ | 371,716 | $ | 358,878 | $ | 266,275 |
(in thousands) | June 30, 2013 | December 31, 2012 | June 30, 2012 | ||||||||
Railcar assets leased to others | $ | 321,269 | $ | 310,614 | $ | 332,997 | |||||
Less accumulated depreciation | 78,382 | 82,284 | 80,032 | ||||||||
$ | 242,887 | $ | 228,330 | $ | 252,965 |
June 30, 2013 | December 31, 2012 | June 30, 2012 | |||||||||||||||||||||
(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) | $ | 33,364 | $ | — | $ | (13,772 | ) | $ | — | $ | 151,939 | $ | — | ||||||||||
Fair value of derivatives | 46,329 | — | 61,247 | — | (106,629 | ) | — | ||||||||||||||||
Balance at end of period | $ | 79,693 | $ | — | $ | 47,475 | $ | — | $ | 45,310 | $ | — |
June 30, 2013 | |||||||||||||||||||
(in thousands) | Commodity derivative assets - current | Commodity derivative assets - noncurrent | Commodity derivative liabilities - current | Commodity derivative liabilities - noncurrent | Total | ||||||||||||||
Commodity derivative assets | $ | 98,902 | $ | 87 | $ | 4,133 | $ | 62 | $ | 103,184 | |||||||||
Commodity derivative liabilities | (10,477 | ) | — | (62,316 | ) | (5,925 | ) | (78,718 | ) | ||||||||||
Cash collateral | 33,364 | — | — | — | 33,364 | ||||||||||||||
Balance sheet line item totals | $ | 121,789 | $ | 87 | $ | (58,183 | ) | $ | (5,863 | ) | $ | 57,830 |
December 31, 2012 | |||||||||||||||||||
(in thousands) | Commodity derivative assets - current | Commodity derivative assets - noncurrent | Commodity derivative liabilities - current | Commodity derivative liabilities - noncurrent | Total | ||||||||||||||
Commodity derivative assets | $ | 137,119 | $ | 2,059 | $ | 5,233 | $ | 130 | $ | 144,541 | |||||||||
Commodity derivative liabilities | (20,242 | ) | (153 | ) | (38,510 | ) | (1,264 | ) | (60,169 | ) | |||||||||
Cash collateral | (13,772 | ) | — | — | — | (13,772 | ) | ||||||||||||
Balance sheet line item totals | $ | 103,105 | $ | 1,906 | $ | (33,277 | ) | $ | (1,134 | ) | $ | 70,600 |
June 30, 2012 | |||||||||||||||||||
(in thousands) | Commodity derivative assets - current | Commodity derivative assets - noncurrent | Commodity derivative liabilities - current | Commodity derivative liabilities - noncurrent | Total | ||||||||||||||
Commodity derivative assets | $ | 89,552 | $ | 4,950 | $ | 2,943 | $ | 9 | $ | 97,454 | |||||||||
Commodity derivative liabilities | (119,481 | ) | (106 | ) | (32,707 | ) | (463 | ) | (152,757 | ) | |||||||||
Cash collateral | 151,939 | — | — | — | 151,939 | ||||||||||||||
Balance sheet line item totals | $ | 122,010 | $ | 4,844 | $ | (29,764 | ) | $ | (454 | ) | $ | 96,636 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Gains (losses) on commodity derivatives included in sales and merchandising revenues | $ | 31,068 | $ | (12,900 | ) | $ | 67,436 | $ | (16,557 | ) |
Commodity | Number of bushels (in thousands) | Number of gallons (in thousands) | Number of pounds (in thousands) | Number of tons (in thousands) | |||||||
Non-exchange traded: | |||||||||||
Corn | 196,108 | — | — | 2 | |||||||
Soybeans | 26,244 | — | — | — | |||||||
Wheat | 21,205 | — | — | — | |||||||
Oats | 12,139 | — | — | — | |||||||
Ethanol | — | 36,814 | — | — | |||||||
Corn oil | — | — | 9,726 | — | |||||||
Other | 28 | — | — | 98 | |||||||
Subtotal | 255,724 | 36,814 | 9,726 | 100 | |||||||
Exchange traded: | |||||||||||
Corn | 105,880 | — | — | — | |||||||
Soybeans | 15,610 | — | — | — | |||||||
Wheat | 32,050 | — | — | — | |||||||
Oats | 4,655 | — | — | — | |||||||
Ethanol | — | 12,283 | — | — | |||||||
Other | — | — | — | 1 | |||||||
Subtotal | 158,195 | 12,283 | — | 1 | |||||||
Total | 413,919 | 49,097 | 9,726 | 101 |
(in thousands except per common share data) | Three months ended June 30, | Six months ended June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income attributable to The Andersons, Inc. | $ | 29,539 | $ | 29,199 | $ | 42,117 | $ | 47,606 | |||||||
Less: Distributed and undistributed earnings allocated to nonvested restricted stock | 101 | 146 | 155 | 179 | |||||||||||
Earnings available to common shareholders | $ | 29,438 | $ | 29,053 | $ | 41,962 | $ | 47,427 | |||||||
Earnings per share – basic: | |||||||||||||||
Weighted average shares outstanding – basic | 18,663 | 18,541 | 18,636 | 18,522 | |||||||||||
Earnings per common share – basic | $ | 1.58 | $ | 1.57 | $ | 2.25 | $ | 2.56 | |||||||
Earnings per share – diluted: | |||||||||||||||
Weighted average shares outstanding – basic | 18,663 | 18,541 | 18,636 | 18,522 | |||||||||||
Effect of dilutive awards | 117 | 132 | 108 | 166 | |||||||||||
Weighted average shares outstanding – diluted | 18,780 | 18,673 | 18,744 | 18,688 | |||||||||||
Earnings per common share – diluted | $ | 1.57 | $ | 1.56 | $ | 2.24 | $ | 2.54 |
Pension Benefits | Pension Benefits | ||||||||||||||
(in thousands) | Three months ended June 30, | Six months ended June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | |||||||
Interest cost | 1,048 | 1,105 | 2,114 | 2,248 | |||||||||||
Expected return on plan assets | (1,747 | ) | (1,534 | ) | (3,503 | ) | (3,073 | ) | |||||||
Recognized net actuarial loss | 373 | 299 | 765 | 749 | |||||||||||
Benefit income | $ | (326 | ) | $ | (130 | ) | $ | (624 | ) | $ | (76 | ) |
Postretirement Benefits | Postretirement Benefits | ||||||||||||||
(in thousands) | Three months ended June 30, | Six months ended June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | 197 | $ | 184 | $ | 421 | $ | 376 | |||||||
Interest cost | 338 | 327 | 683 | 660 | |||||||||||
Amortization of prior service cost | (136 | ) | (136 | ) | (272 | ) | (272 | ) | |||||||
Recognized net actuarial loss | 377 | 313 | 737 | 640 | |||||||||||
Benefit cost | $ | 776 | $ | 688 | $ | 1,569 | $ | 1,404 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||
Revenues from external customers | |||||||||||||||
Grain | $ | 891,350 | $ | 718,911 | $ | 1,727,845 | $ | 1,418,772 | |||||||
Ethanol | 222,240 | 167,758 | 421,549 | 318,428 | |||||||||||
Plant Nutrient | 330,339 | 308,797 | 442,241 | 484,157 | |||||||||||
Rail | 38,601 | 32,046 | 84,965 | 67,905 | |||||||||||
Turf & Specialty | 43,144 | 43,845 | 90,331 | 88,972 | |||||||||||
Retail | 41,290 | 44,477 | 72,003 | 74,733 | |||||||||||
Total | $ | 1,566,964 | $ | 1,315,834 | $ | 2,838,934 | $ | 2,452,967 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Inter-segment sales | |||||||||||||||
Grain | $ | 1 | $ | — | $ | 333 | $ | 1 | |||||||
Plant Nutrient | 4,015 | 5,334 | 11,712 | 8,417 | |||||||||||
Rail | 105 | 208 | 209 | 411 | |||||||||||
Turf & Specialty | 841 | 497 | 1,840 | 1,473 | |||||||||||
Total | $ | 4,962 | $ | 6,039 | $ | 14,094 | $ | 10,302 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Interest expense (income) | |||||||||||||||
Grain | $ | 2,474 | $ | 2,687 | $ | 6,323 | $ | 5,939 | |||||||
Ethanol | 280 | 185 | 606 | 209 | |||||||||||
Plant Nutrient | 797 | 632 | 1,715 | 1,342 | |||||||||||
Rail | 1,429 | 1,156 | 2,942 | 2,334 | |||||||||||
Turf & Specialty | 346 | 312 | 748 | 668 | |||||||||||
Retail | 152 | 157 | 367 | 353 | |||||||||||
Other | (623 | ) | 251 | (1,442 | ) | (135 | ) | ||||||||
Total | $ | 4,855 | $ | 5,380 | $ | 11,259 | $ | 10,710 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Equity in earnings (loss) of affiliates | |||||||||||||||
Grain | $ | 5,027 | $ | 7,505 | $ | 12,937 | $ | 13,457 | |||||||
Ethanol | 4,983 | (2,410 | ) | 4,877 | (4,081 | ) | |||||||||
Plant Nutrient | — | 1 | — | 3 | |||||||||||
Total | $ | 10,010 | $ | 5,096 | $ | 17,814 | $ | 9,379 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Other income (expense), net | |||||||||||||||
Grain | $ | (349 | ) | $ | 489 | $ | 222 | $ | 1,316 | ||||||
Ethanol | 199 | 20 | 430 | 36 | |||||||||||
Plant Nutrient | 164 | 1,010 | 139 | 1,128 | |||||||||||
Rail | 702 | 824 | 1,648 | 1,600 | |||||||||||
Turf & Specialty | 175 | 289 | 450 | 490 | |||||||||||
Retail | 100 | 155 | 214 | 279 | |||||||||||
Other | 301 | (116 | ) | 915 | 1,068 | ||||||||||
Total | $ | 1,292 | $ | 2,671 | $ | 4,018 | $ | 5,917 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Income (loss) before income taxes | |||||||||||||||
Grain | $ | 2,053 | $ | 15,277 | $ | 10,352 | $ | 34,712 | |||||||
Ethanol | 10,601 | (2,105 | ) | 13,080 | (1,984 | ) | |||||||||
Plant Nutrient | 23,240 | 27,953 | 22,678 | 33,781 | |||||||||||
Rail | 9,680 | 7,199 | 24,254 | 15,217 | |||||||||||
Turf & Specialty | 2,195 | 2,753 | 6,196 | 4,955 | |||||||||||
Retail | 1,539 | 1,428 | (1,630 | ) | (1,321 | ) | |||||||||
Other | (2,289 | ) | (5,950 | ) | (6,254 | ) | (10,157 | ) | |||||||
Noncontrolling interests | 1,193 | (728 | ) | 927 | (1,407 | ) | |||||||||
Total | $ | 48,212 | $ | 45,827 | $ | 69,603 | $ | 73,796 |
(in thousands) | June 30, 2013 | December 31, 2012 | June 30, 2012 | ||||||||
Identifiable assets | |||||||||||
Grain | $ | 794,913 | $ | 1,076,986 | $ | 844,526 | |||||
Ethanol | 207,977 | 206,975 | 212,094 | ||||||||
Plant Nutrient | 240,192 | 257,980 | 214,617 | ||||||||
Rail | 298,525 | 289,467 | 310,651 | ||||||||
Turf & Specialty | 73,343 | 82,683 | 66,580 | ||||||||
Retail | 50,313 | 51,772 | 56,986 | ||||||||
Other | 155,718 | 216,441 | 89,320 | ||||||||
Total | $ | 1,820,981 | $ | 2,182,304 | $ | 1,794,774 |
(in thousands) | June 30, 2013 | December 31, 2012 | June 30, 2012 | ||||||||
The Andersons Albion Ethanol LLC | $ | 32,047 | $ | 30,227 | $ | 31,248 | |||||
The Andersons Clymers Ethanol LLC | 34,257 | 33,119 | 38,225 | ||||||||
The Andersons Marathon Ethanol LLC | 34,818 | 32,996 | 37,782 | ||||||||
Lansing Trade Group, LLC | 91,573 | 92,094 | 80,052 | ||||||||
Other | 2,546 | 2,472 | 2,303 | ||||||||
Total | $ | 195,241 | $ | 190,908 | $ | 189,610 |
(in thousands) | % ownership at June 30, 2013 | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
The Andersons Albion Ethanol LLC | 50% | $ | 972 | $ | (215 | ) | $ | 1,916 | $ | 418 | |||||||
The Andersons Clymers Ethanol LLC | 38% | 1,358 | (655 | ) | 1,139 | (1,012 | ) | ||||||||||
The Andersons Marathon Ethanol LLC | 50% | 2,654 | (1,540 | ) | 1,822 | (3,487 | ) | ||||||||||
Lansing Trade Group, LLC | 49% * | 4,873 | 7,244 | 12,864 | 13,160 | ||||||||||||
Other | 5%-23% | 153 | 262 | 73 | 300 | ||||||||||||
Total | $ | 10,010 | $ | 5,096 | $ | 17,814 | $ | 9,379 |
(in thousands) | Three months ended June 30, | Six months ended June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales revenues | $ | 359,759 | $ | 259,264 | $ | 669,464 | $ | 476,076 | |||||||
Service fee revenues (a) | 5,814 | 5,393 | 11,615 | 10,872 | |||||||||||
Purchases of product | 183,105 | 145,569 | 345,060 | 294,419 | |||||||||||
Lease income (b) | 1,518 | 1,855 | 3,070 | 3,733 | |||||||||||
Labor and benefits reimbursement (c) | 2,623 | 3,010 | 5,266 | 5,751 | |||||||||||
Other expenses (d) | 395 | 298 | 753 | 503 | |||||||||||
Accounts receivable at June 30 (e) | 24,149 | 22,111 | |||||||||||||
Accounts payable at June 30 (f) | 27,936 | 20,478 |
(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 various 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 expenses. |
(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. |
(in thousands) | June 30, 2013 | ||||||||||||||
Assets (liabilities) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents | $ | 32,272 | $ | — | $ | — | $ | 32,272 | |||||||
Restricted cash | 872 | — | — | 872 | |||||||||||
Commodity derivatives, net (c) | 79,006 | (21,176 | ) | — | 57,830 | ||||||||||
Convertible preferred securities (b) | — | — | 17,710 | 17,710 | |||||||||||
Other assets and liabilities (a) | 8,837 | (726 | ) | — | 8,111 | ||||||||||
Total | $ | 120,987 | $ | (21,902 | ) | $ | 17,710 | $ | 116,795 |
(in thousands) | December 31, 2012 | ||||||||||||||
Assets (liabilities) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents | $ | 78,674 | $ | — | $ | — | $ | 78,674 | |||||||
Restricted cash | 398 | — | — | 398 | |||||||||||
Commodity derivatives, net (c) | 46,966 | 23,634 | — | 70,600 | |||||||||||
Convertible preferred securities (b) | — | — | 17,220 | 17,220 | |||||||||||
Other assets and liabilities (a) | 7,813 | (2,109 | ) | — | 5,704 | ||||||||||
Total | $ | 133,851 | $ | 21,525 | $ | 17,220 | $ | 172,596 |
(in thousands) | June 30, 2012 | ||||||||||||||
Assets (liabilities) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents | $ | 104 | $ | — | $ | — | $ | 104 | |||||||
Restricted cash | 5,644 | — | — | 5,644 | |||||||||||
Commodity derivatives, net (c) | 48,558 | 48,078 | — | 96,636 | |||||||||||
Convertible preferred securities (b) | — | — | 17,350 | 17,350 | |||||||||||
Other assets and liabilities (a) | 7,182 | (2,022 | ) | — | 5,160 | ||||||||||
Total | $ | 61,488 | $ | 46,056 | $ | 17,350 | $ | 124,894 |
(a) | Included in other assets and liabilities is interest rate and foreign currency derivatives, swaptions and deferred compensation assets. |
(b) | Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets. |
(c) | Includes associated cash posted/received as collateral |
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | Interest rate derivatives and swaptions | Convertible preferred securities | Commodity derivatives, net | Interest rate derivatives and swaptions | Convertible preferred securities | Commodity derivatives, net | |||||||||||||||||
Asset (liability) at December 31, | $ | — | $ | 17,220 | $ | — | $ | (2,178 | ) | $ | 20,360 | $ | 2,467 | ||||||||||
Unrealized gains included in other comprehensive income | — | 490 | — | — | — | — | |||||||||||||||||
Transfers to level 2 | — | — | — | 2,178 | — | (2,467 | ) | ||||||||||||||||
Asset at March 31, | $ | — | $ | 17,710 | $ | — | $ | — | $ | 20,360 | $ | — | |||||||||||
Unrealized losses included in other comprehensive income | — | — | — | — | (3,010 | ) | — | ||||||||||||||||
Asset at June 30, | $ | — | $ | 17,710 | $ | — | $ | — | $ | 17,350 | $ | — |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
Range | ||||||||||||||||
(in thousands) | Fair Value as of June 30, 2013 | Valuation Method | Unobservable Input | Low | High | Weighted Average | ||||||||||
Convertible Preferred Securities | $ | 17,710 | Market Approach | EBITDA Multiples | 5.50 | 7.00 | 6.60 | |||||||||
Income Approach | Discount Rate | 17.0 | % | 17.0 | % | 17.0 | % |
(in thousands) | June 30, 2013 | December 31, 2012 | |||||
Fair value of long-term debt | $ | 458,025 | $ | 459,397 | |||
Fair value in excess of carrying value | 3,909 | 17,009 |
(in thousands) | June 30, 2013 | December 31, 2012 | June 30, 2012 | ||||||||
Borrowings under short-term line of credit – nonrecourse | $ | — | $ | 4,219 | $ | 1,608 | |||||
Borrowings under short-term line of credit – recourse | 50,000 | 20,000 | 308,000 | ||||||||
Total borrowings under short-term line of credit | $ | 50,000 | $ | 24,219 | $ | 309,608 | |||||
Current maturities of long -term debt – nonrecourse | $ | 3,274 | $ | 2,496 | $ | 1,385 | |||||
Current maturities of long-term debt – recourse | 41,822 | 12,649 | 28,262 | ||||||||
Total current maturities of long-term debt | $ | 45,096 | $ | 15,145 | $ | 29,647 | |||||
Long-term debt, less current maturities – nonrecourse | $ | 19,621 | $ | 20,067 | $ | 32,544 | |||||
Long-term debt, less current maturities – recourse | 389,399 | 407,176 | 285,104 | ||||||||
Total long-term debt, less current maturities | $ | 409,020 | $ | 427,243 | $ | 317,648 |
(in thousands) | |||
Accounts receivable | $ | 19,174 | |
Inventory | 121,983 | ||
Property, plant and equipment | 57,828 | ||
Intangible assets | 4,600 | ||
Goodwill | 33,175 | ||
Commodity derivatives | 4,701 | ||
Other assets | 1,775 | ||
Accounts payable | (91,001 | ) | |
Debt assumed | (29,632 | ) | |
Other liabilities and noncontrolling interests | (2,371 | ) | |
Total purchase price | $ | 120,232 |
(in thousands) | Fair Value | Useful Life | |||
Supplier relationships | $ | 4,600 | 3 to 5 years | ||
Total identifiable intangible assets | $ | 4,600 | 4 years * |
(in thousands) | |||
Current assets | $ | 5,106 | |
Intangible assets | 9,600 | ||
Goodwill | 6,681 | ||
Property, plant and equipment | 3,586 | ||
Current liabilities | (3,784 | ) | |
Deferred tax liability, net | (4,412 | ) | |
Total purchase price | $ | 16,777 |
(in thousands) | Fair Value | Useful Life | ||
Trademarks | $ | 1,200 | 10 years | |
Customer list | 5,500 | 10 years | ||
Technology | 2,100 | 5 years | ||
Noncompete agreement | 800 | 7 years | ||
Total identifiable intangible assets | $ | 9,600 | 9 years * |
(in thousands) | |||
Grain elevator | $ | 14,285 | |
Inventory | 10,087 | ||
Intangible assets | 2,373 | ||
Other current assets | 962 | ||
Property, plant and equipment | 49,693 | ||
Total purchase price | $ | 77,400 |
(in thousands) | Fair Value | Useful Life | |||
Lease intangibles | $ | 2,123 | 10 months to 5 years | ||
Noncompete agreement | 250 | 2 years | |||
Total identifiable intangible assets | $ | 2,373 | 3 years * |
(in thousands) | |||
Inventory | $ | 3,757 | |
Intangible assets | 1,000 | ||
Goodwill | 1,985 | ||
Property, plant and equipment | 3,941 | ||
Total purchase price | $ | 10,683 |
(in thousands) | Fair Value | Useful Life | |||
Trademark | $ | 300 | Indefinite | ||
Customer list | 600 | 10 years | |||
Noncompete agreement | 100 | 7 years | |||
Total identifiable intangible assets | $ | 1,000 | 10 years * |
(in thousands) | Three months ended June 30, | Six months ended June 30, | |||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Ethanol (gallons shipped) | 69,881 | 66,381 | 139,716 | 125,445 | |||||||
E-85 (gallons shipped) | 6,626 | 5,094 | 10,347 | 9,241 | |||||||
Corn Oil (pounds shipped) | 21,609 | 14,502 | 38,856 | 23,556 | |||||||
DDG (tons shipped) | 262 | 258 | 524 | 486 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Sales and merchandising revenues | $ | 1,566,964 | $ | 1,315,834 | $ | 2,838,934 | $ | 2,452,967 | |||||||
Cost of sales and merchandising revenues | 1,463,735 | 1,213,184 | 2,656,432 | 2,264,447 | |||||||||||
Gross profit | 103,229 | 102,650 | 182,502 | 188,520 | |||||||||||
Operating, administrative and general expenses | 61,464 | 59,210 | 123,472 | 119,310 | |||||||||||
Interest expense | 4,855 | 5,380 | 11,259 | 10,710 | |||||||||||
Equity in earnings of affiliates | 10,010 | 5,096 | 17,814 | 9,379 | |||||||||||
Other income, net | 1,292 | 2,671 | 4,018 | 5,917 | |||||||||||
Income before income taxes | 48,212 | 45,827 | 69,603 | 73,796 | |||||||||||
Income (loss) attributable to noncontrolling interests | 1,193 | (728 | ) | 927 | (1,407 | ) | |||||||||
Income before income taxes attributable to The Andersons, Inc. | $ | 47,019 | $ | 46,555 | $ | 68,676 | $ | 75,203 |
Three months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 891,350 | $ | 718,911 | |||
Cost of sales and merchandising revenues | 869,258 | 692,471 | |||||
Gross profit | 22,092 | 26,440 | |||||
Operating, administrative and general expenses | 22,243 | 16,470 | |||||
Interest expense | 2,474 | 2,687 | |||||
Equity in earnings of affiliates | 5,027 | 7,505 | |||||
Other income (expense), net | (349 | ) | 489 | ||||
Income before income taxes | $ | 2,053 | $ | 15,277 |
Three months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising and service fee revenues | $ | 222,240 | $ | 167,758 | |||
Cost of sales and merchandising revenues | 212,591 | 165,833 | |||||
Gross profit | 9,649 | 1,925 | |||||
Operating, administrative and general expenses | 2,757 | 2,183 | |||||
Interest expense | 280 | 185 | |||||
Equity in earnings (loss) of affiliates | 4,983 | (2,410 | ) | ||||
Other income, net | 199 | 20 | |||||
Income (loss) before income taxes | 11,794 | (2,833 | ) | ||||
Income (loss) attributable to noncontrolling interests | 1,193 | (728 | ) | ||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | 10,601 | $ | (2,105 | ) |
Three months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 330,339 | $ | 308,797 | |||
Cost of sales and merchandising revenues | 293,138 | 267,140 | |||||
Gross profit | 37,201 | 41,657 | |||||
Operating, administrative and general expenses | 13,328 | 14,083 | |||||
Interest expense | 797 | 632 | |||||
Equity in earnings of affiliates | — | 1 | |||||
Other income, net | 164 | 1,010 | |||||
Income before income taxes | $ | 23,240 | $ | 27,953 |
Three months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 38,601 | $ | 32,046 | |||
Cost of sales and merchandising revenues | 24,044 | 20,483 | |||||
Gross profit | 14,557 | 11,563 | |||||
Operating, administrative and general expenses | 4,150 | 4,032 | |||||
Interest expense | 1,429 | 1,156 | |||||
Other income, net | 702 | 824 | |||||
Income before income taxes | $ | 9,680 | $ | 7,199 |
Three months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 43,144 | $ | 43,845 | |||
Cost of sales and merchandising revenues | 35,823 | 36,355 | |||||
Gross profit | 7,321 | 7,490 | |||||
Operating, administrative and general expenses | 4,955 | 4,714 | |||||
Interest expense | 346 | 312 | |||||
Other income, net | 175 | 289 | |||||
Income before income taxes | $ | 2,195 | $ | 2,753 |
Three months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 41,290 | $ | 44,477 | |||
Cost of sales and merchandising revenues | 28,881 | 30,902 | |||||
Gross profit | 12,409 | 13,575 | |||||
Operating, administrative and general expenses | 10,818 | 12,145 | |||||
Interest expense | 152 | 157 | |||||
Other income, net | 100 | 155 | |||||
Income before income taxes | $ | 1,539 | $ | 1,428 |
Three months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | — | $ | — | |||
Cost of sales and merchandising revenues | — | — | |||||
Gross profit | — | — | |||||
Operating, administrative and general expenses | 3,213 | 5,583 | |||||
Interest (income) expense | (623 | ) | 251 | ||||
Other income (expense), net | 301 | (116 | ) | ||||
Loss before income taxes | $ | (2,289 | ) | $ | (5,950 | ) |
Six months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 1,727,845 | $ | 1,418,772 | |||
Cost of sales and merchandising revenues | 1,680,903 | 1,359,731 | |||||
Gross profit | 46,942 | 59,041 | |||||
Operating, administrative and general expenses | 43,426 | 33,163 | |||||
Interest expense | 6,323 | 5,939 | |||||
Equity in earnings of affiliates | 12,937 | 13,457 | |||||
Other income, net | 222 | 1,316 | |||||
Income before income taxes | $ | 10,352 | $ | 34,712 |
Six months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising and service fee revenues | $ | 421,549 | $ | 318,428 | |||
Cost of sales and merchandising revenues | 407,095 | 313,730 | |||||
Gross profit | 14,454 | 4,698 | |||||
Operating, administrative and general expenses | 5,148 | 3,835 | |||||
Interest expense | 606 | 209 | |||||
Equity in earnings (loss) of affiliates | 4,877 | (4,081 | ) | ||||
Other income, net | 430 | 36 | |||||
Income (loss) before income taxes | 14,007 | (3,391 | ) | ||||
Income (loss) attributable to noncontrolling interests | 927 | (1,407 | ) | ||||
Income (loss) before income taxes attributable to The Andersons, Inc. | $ | 13,080 | $ | (1,984 | ) |
Six months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 442,241 | $ | 484,157 | |||
Cost of sales and merchandising revenues | 391,091 | 421,182 | |||||
Gross profit | 51,150 | 62,975 | |||||
Operating, administrative and general expenses | 26,896 | 28,983 | |||||
Interest expense | 1,715 | 1,342 | |||||
Equity in earnings of affiliates | — | 3 | |||||
Other income, net | 139 | 1,128 | |||||
Income before income taxes | $ | 22,678 | $ | 33,781 |
Six months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 84,965 | $ | 67,905 | |||
Cost of sales and merchandising revenues | 51,429 | 43,777 | |||||
Gross profit | 33,536 | 24,128 | |||||
Operating, administrative and general expenses | 7,988 | 8,177 | |||||
Interest expense | 2,942 | 2,334 | |||||
Other income, net | 1,648 | 1,600 | |||||
Income before income taxes | $ | 24,254 | $ | 15,217 |
Six months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 90,331 | $ | 88,972 | |||
Cost of sales and merchandising revenues | 73,992 | 73,483 | |||||
Gross profit | 16,339 | 15,489 | |||||
Operating, administrative and general expenses | 9,845 | 10,356 | |||||
Interest expense | 748 | 668 | |||||
Other income, net | 450 | 490 | |||||
Income before income taxes | $ | 6,196 | $ | 4,955 |
Six months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | 72,003 | $ | 74,733 | |||
Cost of sales and merchandising revenues | 51,922 | 52,544 | |||||
Gross profit | 20,081 | 22,189 | |||||
Operating, administrative and general expenses | 21,558 | 23,436 | |||||
Interest expense | 367 | 353 | |||||
Other income, net | 214 | 279 | |||||
Loss before income taxes | $ | (1,630 | ) | $ | (1,321 | ) |
Six months ended June 30, | |||||||
(in thousands) | 2013 | 2012 | |||||
Sales and merchandising revenues | $ | — | $ | — | |||
Cost of sales and merchandising revenues | — | — | |||||
Gross profit | — | — | |||||
Operating, administrative and general expenses | 8,611 | 11,360 | |||||
Interest income | (1,442 | ) | (135 | ) | |||
Other income, net | 915 | 1,068 | |||||
Loss before income taxes | $ | (6,254 | ) | $ | (10,157 | ) |
(in thousands) | June 30, 2013 | June 30, 2012 | Variance | ||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 75,920 | $ | 23,930 | $ | 51,990 | |||||
Restricted cash | 872 | 5,644 | (4,772 | ) | |||||||
Accounts receivables, net | 216,432 | 205,046 | 11,386 | ||||||||
Inventories | 444,523 | 597,091 | (152,568 | ) | |||||||
Commodity derivative assets – current | 121,789 | 122,010 | (221 | ) | |||||||
Deferred income taxes | 2,797 | 18,784 | (15,987 | ) | |||||||
Other current assets | 44,936 | 38,535 | 6,401 | ||||||||
Total current assets | 907,269 | 1,011,040 | (103,771 | ) | |||||||
Current Liabilities: | |||||||||||
Borrowing under short-term line of credit | 50,000 | 309,608 | (259,608 | ) | |||||||
Accounts payable for grain | 178,017 | 129,979 | 48,038 | ||||||||
Other accounts payable | 183,971 | 148,497 | 35,474 | ||||||||
Customer prepayments and deferred revenue | 25,621 | 55,912 | (30,291 | ) | |||||||
Commodity derivative liabilities – current | 58,183 | 29,764 | 28,419 | ||||||||
Accrued expenses and other current liabilities | 57,456 | 51,283 | 6,173 | ||||||||
Current maturities of long-term debt | 45,096 | 29,647 | 15,449 | ||||||||
Total current liabilities | 598,344 | 754,690 | (156,346 | ) | |||||||
Working capital | $ | 308,925 | $ | 256,350 | $ | 52,575 |
Method of Control | Financial Statement | Units | |
Owned-railcars available for sale | On balance sheet – current | 305 | |
Owned-railcar assets leased to others | On balance sheet – non-current | 14,726 | |
Railcars leased from financial intermediaries | Off balance sheet | 4,310 | |
Railcars – non-recourse arrangements | Off balance sheet | 3,809 | |
Total Railcars | 23,150 | ||
Locomotive assets leased to others | On balance sheet – non-current | 52 | |
Locomotives leased from financial intermediaries | Off balance sheet | 4 | |
Locomotives – non-recourse arrangements | Off balance sheet | 39 | |
Total Locomotives | 95 |
1. | Implementing a sufficiently-designed control that is intended to ensure that all journal entries are reviewed by an appropriate person. |
2. | Evaluating and modifying, as necessary, the access of our existing users to post journal entries and the journal entry types that each user is authorized to utilize. |
3. | Enhancing information technology controls related to the future granting and on-going monitoring of our users' access to post journal entries. |
4. | As applicable legacy information technology systems are replaced with our implementation of SAP (expected to occur in phases over the next several years), we plan on utilizing capabilities within SAP that will restrict the ability for an individual to create and post an entry without review. |
No. | Description | |
12 | Computation of Ratio of Earnings to Fixed Charges | |
31.1 | Certification of the Chairman and Chief Executive Officer under Rule 13(a)-14(a)/15d-14(a) | |
31.2 | Certification of the Chief Financial Officer under Rule 13(a)-14(a)/15d-14(a) | |
32.1 | Certifications Pursuant to 18 U.S.C. Section 1350 | |
101 | Financial Statements from the interim report on Form 10-Q of The Andersons, Inc. for the period ended June 30, 2013, formatted in XBRL: (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Equity, (v) the Condensed Consolidated Statement of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements. |
THE ANDERSONS, INC. (Registrant) | ||
Date: August 9, 2013 | By /s/ Michael J. Anderson | |
Michael J. Anderson | ||
Chairman and Chief Executive Officer (Principal Executive Officer) | ||
Date: August 9, 2013 | By /s/ John Granato | |
John Granato | ||
Chief Financial Officer (Principal Financial Officer) | ||
No. | Description | |
12 | Computation of Ratio of Earnings to Fixed Charges | |
31.1 | Certification of the Chairman and Chief Executive Officer under Rule 13(a)-14(a)/15d-14(a) | |
31.2 | Certification of the Chief Financial Officer under Rule 13(a)-14(a)/15d-14(a) | |
32.1 | Certifications Pursuant to 18 U.S.C. Section 1350 | |
101 | Financial Statements from the interim report on Form 10-Q of The Andersons, Inc. for the period ended June 30, 2013, formatted in XBRL: (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Equity, (v) the Condensed Consolidated Statement of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements. |
(in thousands, except for ratio) | Six Months Ended June 30, | ||||||
2013 | 2012 | ||||||
Computation of earnings | |||||||
Pretax income (a) | $ | 51,789 | $ | 64,417 | |||
Add: | |||||||
Interest expense on indebtedness | 11,259 | 10,710 | |||||
Amortization of debt issue costs | 810 | 847 | |||||
Interest portion of rent expense (b) | 3,955 | 3,547 | |||||
Distributed income of equity investees | 13,480 | 18,830 | |||||
Earnings | $ | 81,293 | $ | 98,351 | |||
Computation of fixed charges | |||||||
Interest expense on indebtedness | $ | 11,259 | $ | 10,710 | |||
Amortization of debt issue costs | 810 | 847 | |||||
Interest portion of rent expense (b) | 3,955 | 3,547 | |||||
Fixed charges | $ | 16,024 | $ | 15,104 | |||
Ratio of earnings to fixed charges | 5.07 | 6.51 |
1 | I have reviewed this report on Form 10-Q 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/ Michael J. Anderson | |
Michael J. Anderson | |
Chairman and Chief Executive Officer (Principal Executive Officer) |
1 | I have reviewed this report on Form 10-Q 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 Granato | |
John 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/ Michael J. Anderson | |
Michael J. Anderson | |
Chairman and Chief Executive Officer | |
/s/ John Granato | |
John Granato | |
Chief Financial Officer | |
Related Party Transactions
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Jun. 30, 2013
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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. The following table presents the Company’s investment balance in each of its equity method investees by entity:
The Company holds a majority interest (66%) in The Andersons Ethanol Investment LLC (“TAEI”). This consolidated entity holds a 50% interest in The Andersons Marathon Ethanol LLC (“TAME”). The noncontrolling interest in TAEI is attributed 34% of the gains and losses of TAME recorded by the Company. The following table summarizes income (losses) earned from the Company’s equity method investments by entity:
* This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 2%. Total distributions received from unconsolidated affiliates were $5.1 million and $13.4 million for the three and six months ended June 30, 2013, respectively. The Company does not hold a majority of the outstanding shares of LTG. All major operating decisions of LTG are made by LTG’s Board of Directors and the Company does not have a majority of the board seats. In addition, based on the terms of the operating agreement between LTG and its owners, the minority shareholders have substantive participating rights that allow them to effectively participate in the decisions made in the ordinary course of business that are significant to LTG. Due to these factors, the Company does not have control over LTG and therefore accounts for this investment under the equity method. Investment in Debt Securities The Company owns 100% of the cumulative convertible preferred shares of Iowa Northern Railway Corporation (“IANR”), which operates a short-line railroad in Iowa. As a result of this investment, the Company has a 49.9% voting interest in IANR, with the remaining 50.1% voting interest held by the common shareholders. The preferred shares have certain rights associated with them, including voting, dividends, liquidation, redemption and conversion. Dividends accrue to the Company at a rate of 14% annually whether or not declared by IANR and are cumulative in nature. The Company can convert its preferred shares into common shares of IANR at any time, but the shares cannot be redeemed until May 2015. This investment is accounted for as “available-for-sale” debt securities in accordance with ASC 320 and is carried at estimated fair value in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheet. The estimated fair value of the Company’s investment in IANR as of June 30, 2013 was $17.7 million. Based on the Company’s assessment, IANR is considered a variable interest entity (“VIE”). Since the Company does not possess the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, it is not considered to be the primary beneficiary of IANR and therefore does not consolidate IANR. The decisions that most significantly impact the economic performance of IANR are made by IANR’s Board of Directors. The Board of Directors has five directors; two directors from the Company, two directors from the common shareholders and one independent director who is elected by unanimous decision of the other four directors. The vote of four of the five directors is required for all key decisions. The Company’s current maximum exposure to loss related to IANR is $22.4 million, which represents the Company’s investment at fair value plus unpaid accrued dividends to date of $4.7 million. The Company does not have any obligation or commitments to provide additional financial support to IANR. Related Party Transactions In the ordinary course of business, 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:
For the quarters ended June 30, 2013 and 2012, revenues recognized for the sale of ethanol that the Company purchased from the unconsolidated ethanol LLCs were $162.8 million and $151.9 million, respectively. For the six months ended June 30, 2013 and 2012, revenues recognized for the sale of ethanol that the Company purchased from the unconsolidated ethanol LLCs were $308.6 million and $294.9 million, respectively. For the quarters ended June 30, 2013 and 2012, revenues recognized for the sale of corn to the unconsolidated ethanol LLCs under these agreements were $200.2 million and $165.3 million, respectively. For the six months ended June 30, 2013 and 2012, revenues recognized for the sale of corn to the unconsolidated ethanol LLCs were $405.1 million and $344.4 million, respectively. From time to time, the Company enters into derivative contracts with certain of its related parties for the purchase and sale of corn 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 contract assets with related parties for the periods ended June 30, 2013, December 31, 2012 and June 30, 2012 was $8.6 million, $3.2 million, and $1.1 million, respectively. The fair value of derivative contract liabilities with related parties for the periods ended June 30, 2013, December 31, 2012 and June 30, 2012 was $0.6 million, $0.3 million, and $1.8 million, respectively. |
Condensed Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Income Statement [Abstract] | ||||
Sales and merchandising revenues | $ 1,566,964 | $ 1,315,834 | $ 2,838,934 | $ 2,452,967 |
Cost of sales and merchandising revenues | 1,463,735 | 1,213,184 | 2,656,432 | 2,264,447 |
Gross profit | 103,229 | 102,650 | 182,502 | 188,520 |
Operating, administrative and general expenses | 61,464 | 59,210 | 123,472 | 119,310 |
Interest expense | 4,855 | 5,380 | 11,259 | 10,710 |
Other income: | ||||
Equity in earnings (loss) of affiliates | 10,010 | 5,096 | 17,814 | 9,379 |
Other income, net | 1,292 | 2,671 | 4,018 | 5,917 |
Income before income taxes | 48,212 | 45,827 | 69,603 | 73,796 |
Income tax provision | 17,480 | 17,356 | 26,559 | 27,597 |
Net income | 30,732 | 28,471 | 43,044 | 46,199 |
Net income (loss) attributable to the noncontrolling interests | 1,193 | (728) | 927 | (1,407) |
Net income attributable to The Andersons, Inc. | $ 29,539 | $ 29,199 | $ 42,117 | $ 47,606 |
Per common share: | ||||
Basic earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ 1.58 | $ 1.57 | $ 2.25 | $ 2.56 |
Diluted earnings attributable to The Andersons, Inc. common shareholders (dollars per share) | $ 1.57 | $ 1.56 | $ 2.24 | $ 2.54 |
Dividends paid (dollars per share) | $ 0.16 | $ 0.15 | $ 0.32 | $ 0.30 |
Basis of Presentation and Consolidation
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Jun. 30, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation These Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). All significant 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 statement of the results of operations for the periods indicated, have been made. Operating results for the six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2013. The year-end Condensed Consolidated Balance Sheet data at December 31, 2012 was derived from audited Consolidated Financial Statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. A Condensed Consolidated Balance Sheet as of June 30, 2012 has been included as the Company operates in several seasonal industries. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in The Andersons, Inc. Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”). Reclassifications Out of Other Comprehensive Income In accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, information about reclassification adjustments from accumulated other comprehensive income to net income in the current periods are presented below.
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Basis of Presentation and Consolidation (Tables)
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Jun. 30, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | In accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, information about reclassification adjustments from accumulated other comprehensive income to net income in the current periods are presented below.
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Reclassification out of Accumulated Other Comprehensive Income |
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Subsequent event (Details) (Thompsons Limited [Member], USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Thompsons Limited [Member]
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Subsequent Event [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 145.0 |
Equity Method Investment, Ownership Percentage | 50.00% |
number of locations | 12 |
Fair Value Measurements (Details 2) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Fair value of long-term debt estimated using quoted market prices or discounted future cash flows | ||
Fair value of long-term debt | $ 458,025 | $ 459,397 |
Fair value in excess of carrying value | $ 3,909 | $ 17,009 |
Fair Value Measurements
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2013, December 31, 2012 and June 30, 2012:
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 a “Level 2” fair value input for purposes of the fair value disclosure requirements related to our commodity derivatives. 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 the majority of these commodity contracts. The Company’s convertible preferred securities are measured at fair value using a combination of the income approach on a quarterly basis and the market approach on an annual basis. Specifically, the income approach incorporates the use of the Discounted Cash Flow method, whereas the Market Approach incorporates the use of the Guideline Public Company method. Application of the Discounted Cash Flow method requires estimating the annual cash flows that the business enterprise is expected to generate in the future. The assumptions input into this method are estimated annual cash flows for a specified estimation period, the discount rate, and the terminal value at the end of the estimation period. In the Guideline Public Company method, valuation multiples, including total invested capital, are calculated based on financial statements and stock price data from selected guideline publicly traded companies. On an annual basis, a comparative analysis is then performed for factors including, but not limited to size, profitability and growth to determine fair value. A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:
In accordance with ASU 2011-04, the following table summarizes information about the Company's Level 3 fair value measurements as of June 30, 2013:
Fair Value of Financial Instruments The fair value of the Company’s long-term debt is estimated using quoted market prices or discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. As such, the Company has concluded that the fair value of long-term debt is considered “Level 2” in the fair value hierarchy.
The fair value of the Company’s cash equivalents, accounts receivable and accounts payable approximate their carrying value as they are close to maturity. |
Debt (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Jun. 30, 2012
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Debt Instrument [Line Items] | |||
Borrowings under short-term line of credit | $ 50,000 | $ 24,219 | $ 309,608 |
Long-term debt | |||
Total current maturities of long-term debt | 45,096 | 15,145 | 29,647 |
Total long-term debt, less current maturities | 409,020 | 427,243 | 317,648 |
Nonrecourse
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Debt Instrument [Line Items] | |||
Borrowings under short-term line of credit | 0 | 4,219 | 1,608 |
Long-term debt | |||
Total current maturities of long-term debt | 3,274 | 2,496 | 1,385 |
Total long-term debt, less current maturities | 19,621 | 20,067 | 32,544 |
Recourse
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Debt Instrument [Line Items] | |||
Borrowings under short-term line of credit | 50,000 | 20,000 | 308,000 |
Long-term debt | |||
Total current maturities of long-term debt | 41,822 | 12,649 | 28,262 |
Total long-term debt, less current maturities | $ 389,399 | $ 407,176 | $ 285,104 |
Property, Plant and Equipment (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Jun. 30, 2012
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Components of property, plant and equipment | |||
Land | $ 22,637 | $ 22,258 | $ 19,505 |
Land improvements and leasehold improvements | 65,625 | 63,013 | 52,536 |
Buildings and storage facilities | 224,281 | 214,919 | 172,354 |
Machinery and equipment | 295,723 | 287,896 | 243,216 |
Software | 13,469 | 12,901 | 11,204 |
Construction in progress | 44,146 | 34,965 | 33,613 |
Property, plant and equipment, gross | 665,881 | 635,952 | 532,428 |
Less accumulated depreciation and amortization | 294,165 | 277,074 | 266,153 |
Property, plant and equipment, net | $ 371,716 | $ 358,878 | $ 266,275 |
Derivatives (Tables)
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Jun. 30, 2013
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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 short-term commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets:
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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:
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Company's Condensed Consolidated Statement of Income gains and location of line items | The gains included in the Company’s Condensed Consolidated Statements of Income and the line items in which they are located for the three and six months ended June 30, 2013 and 2012 are as follows:
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Amounts of quantities outstanding included in commodity derivative contracts | At June 30, 2013, the Company had the following volume of commodity derivative contracts outstanding (on a gross basis):
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Property, Plant and Equipment (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Railcar assets leased to others are as follows:
|
Business Acquisitions (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Green Plains Grain Company
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | The summarized final purchase price allocation is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Intangible Assets Acquired As Part Of Business Combination | Details of the intangible assets acquired are as follows:
*weighted average number of years |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Eezy Gro Inc
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | The summarized purchase price allocation is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Intangible Assets Acquired As Part Of Business Combination | Details of the intangible assets acquired are as follows:
*weighted average number of years |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amaizing Energy Denison LLC
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | The summarized purchase price allocation is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Intangible Assets Acquired As Part Of Business Combination | Details of the intangible assets acquired are as follows:
*weighted average number of years |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mt Pulaski
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | The summarized purchase price allocation is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Intangible Assets Acquired As Part Of Business Combination | Details of the intangible assets acquired are as follows:
*weighted average number of years |
Property, Plant and Equipment (Details Textual) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Property, Plant and Equipment [Abstract] | |||
Depreciation expense on property, plant and equipment | $ 18.5 | $ 12.0 | $ 27.4 |
Depreciation expense on railcar assets leased to others | $ 7.4 | $ 7.8 | $ 15.9 |
Segment Information (Details Textual) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
Reportable_Business_Segment
|
Dec. 31, 2012
|
Jun. 30, 2012
|
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments (business segments) | 6 | ||
Assets | $ 1,820,981 | $ 2,182,304 | $ 1,794,774 |
Plant Nutrient
|
|||
Segment Reporting Information [Line Items] | |||
Assets | 240,192 | 257,980 | 214,617 |
Plant Nutrient | Green Plains Grain Company
|
|||
Segment Reporting Information [Line Items] | |||
Assets | $ 28,000 |
Related Party Transactions (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
* This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 2%. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of aggregate summarized financial information of subsidiaries | The following table sets forth the related party transactions entered into for the time periods presented:
|
Business Acquisitions Business Acquisitions (Details 5) (USD $)
|
6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
Jun. 30, 2013
Mt Pulaski
|
Oct. 30, 2012
Mt Pulaski
|
Oct. 30, 2012
Trademarks
Mt Pulaski
|
Jun. 30, 2013
Customer list
Mt Pulaski
|
Oct. 30, 2012
Customer list
Mt Pulaski
|
Jun. 30, 2013
Noncompete agreement
|
Jun. 30, 2013
Noncompete agreement
Mt Pulaski
|
Oct. 30, 2012
Noncompete agreement
Mt Pulaski
|
||||
Business Acquisition [Line Items] | ||||||||||||||
Inventory | $ 3,757,000 | |||||||||||||
Intangible assets | 1,000,000 | |||||||||||||
Goodwill | 54,387,000 | 51,418,000 | 19,226,000 | 1,985,000 | ||||||||||
Property, plant and equipment | 3,941,000 | |||||||||||||
Intangible assets acquired | 1,000,000 | 600,000 | 100,000 | |||||||||||
Indefinite-lived intangible assets acquired | 300,000 | |||||||||||||
Useful Life | 10 years | 2 years | 7 years | |||||||||||
Weighted average useful life | 10 years | [1] | ||||||||||||
Total Purchase Price | $ 10,700,000 | |||||||||||||
|
Business Acquisitions Business Acquisitions (Details 4) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2013
|
May 01, 2012
|
||||
Amaizing Energy Denison LLC
|
|||||
Business Acquisition [Line Items] | |||||
Current assets | $ 14,285 | ||||
Inventory | 10,087 | ||||
Intangible assets | 2,373 | ||||
Other current assets | 962 | ||||
Property, plant and equipment | 49,693 | ||||
Purchase Price | 77,400 | ||||
Intangible assets acquired | 2,373 | ||||
Weighted average useful life | 3 years | [1] | |||
Lease Intangibles | Amaizing Energy Denison LLC
|
|||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 2,123 | ||||
Noncompete agreement
|
|||||
Business Acquisition [Line Items] | |||||
Useful Life | 2 years | ||||
Noncompete agreement | Amaizing Energy Denison LLC
|
|||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 250 | ||||
Minimum | Lease Intangibles | Amaizing Energy Denison LLC
|
|||||
Business Acquisition [Line Items] | |||||
Useful Life | 10 months | ||||
Maximum | Lease Intangibles | Amaizing Energy Denison LLC
|
|||||
Business Acquisition [Line Items] | |||||
Useful Life | 5 years | ||||
|
Derivatives (Details 2) (Sales, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Sales
|
||||
Company's Consolidated Statement of Income gains and location of line items | ||||
Gains (losses) on commodity derivatives included in sales and merchandising revenues | $ 31,068 | $ (12,900) | $ 67,436 | $ (16,557) |
Inventories (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Classes of inventories | Major classes of inventories are as follows:
|
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