Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

The Company leases certain grain handling and storage facilities, ethanol storage terminals, warehouse space, railcars, office space, machinery and equipment, vehicles and information technology equipment under operating leases. Lease expense for these leases is recognized within the Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. Leases with a term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized in the Consolidated Statements of Operations on a straight-line basis over the lease term. The Company’s lease agreements include lease payments that are largely fixed and do not contain material residual value guarantees.

The following table summarizes the amounts recognized in the Company's Consolidated Balance Sheets related to leases:

		December 31,
(in thousands)	Consolidated Balance Sheet Classification	2022		2021
Assets
Operating lease assets	Right of use assets, net	$	61,890	$	52,146
Finance lease assets	Property, plant and equipment, net	21,359		23,895
Total leased assets		83,249		76,041
Liabilities
Current operating leases	Accrued expenses and other current liabilities	25,364		19,580
Non-current operating leases	Long-term lease liabilities	37,147		31,322
Total operating lease liabilities		62,511		50,902
Current finance leases	Current maturities of long-term debt	1,565		2,118
Non-current finance leases	Long-term debt, less current maturities	8,400		10,762
Total finance lease liabilities		9,965		12,880
Total lease liabilities		$	72,476	$	63,782

The components of lease cost recognized within the Company's Consolidated Statement of Operations were as follows:

		Year Ended December 31,
(in thousands)	Consolidated Statement of Operations Classification	2022		2021		2020
Lease cost:
Operating lease cost	Cost of sales and merchandising revenues	$	19,891	$	13,016	$	10,968
Operating lease cost	Operating, administrative and general expenses	10,132		10,324		10,678
Finance lease cost
Amortization of right-of-use assets	Cost of sales and merchandising revenues	614		978		932
Amortization of right-of-use assets	Operating, administrative and general expenses	1,009		1,008		1,008
Interest expense on lease liabilities	Interest expense, net	413		679		859
Short-term lease cost	Cost of sales and merchandising revenues	2,465		1,349		66
Variable lease cost	Cost of sales and merchandising revenues	338		458		80
Variable lease cost	Operating, administrative and general expenses	394		231		260
Total lease cost		$	35,256	$	28,043	$	24,851

The Company often has the option to renew lease terms for buildings and other assets. The exercise of a lease renewal option is generally at the sole discretion of the Company. In addition, certain lease agreements may be terminated prior to their original expiration date at the discretion of the Company. Each renewal and termination option is evaluated at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The following table summarizes the weighted-average remaining lease terms:

	As of December 31,
Weighted-Average Remaining Lease Term	2022	2021
Operating leases	3.9 years	3.9 years
Finance leases	6.9 years	7.2 years

The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The following table summarizes the weighted-average discount rate used to measure the Company's lease liabilities:

	As of December 31,
Weighted-Average Discount Rate	2022		2021
Operating leases	3.44	%	2.63	%
Finance leases	3.35	%	3.30	%

Supplemental Cash Flow Information Related to Leases

	Year Ended December 31,
(in thousands)	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	30,294	$	29,304	$	28,444
Operating cash flows from finance leases	—		—		1,289
Financing cash flows from finance leases	1,782		12,538		4,115
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	36,056		35,024		15,160
Finance leases	—		364		4,972

Maturity Analysis of Leases Liabilities

	December 31, 2022
(in thousands)	Operating Leases		Finance Leases		Total
2023	$	28,108	$	1,889	$	29,997
2024	17,326		1,768		19,094
2025	9,801		1,406		11,207
2026	5,142		1,384		6,526
2027	1,629		1,391		3,020
Thereafter	5,507		3,382		8,889
Total lease payments	67,513		11,220		78,733
Less: interest	5,002		1,255		6,257
Total	$	62,511	$	9,965	$	72,476

	December 31, 2021
(in thousands)	Operating Leases		Finance Leases		Total
2022	$	20,639	$	2,521	$	23,160
2023	13,797		2,305		16,102
2024	8,121		2,175		10,296
2025	4,974		1,406		6,380
2026	2,434		1,384		3,818
Thereafter	3,881		4,773		8,654
Total lease payments	53,846		14,564		68,410
Less: interest	2,944		1,684		4,628
Total	$	50,902	$	12,880	$	63,782

Leases

Leases

The Company leases certain grain handling and storage facilities, ethanol storage terminals, warehouse space, railcars, office space, machinery and equipment, vehicles and information technology equipment under operating leases. Lease expense for these leases is recognized within the Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. Leases with a term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized in the Consolidated Statements of Operations on a straight-line basis over the lease term. The Company’s lease agreements include lease payments that are largely fixed and do not contain material residual value guarantees.

The following table summarizes the amounts recognized in the Company's Consolidated Balance Sheets related to leases:

		December 31,
(in thousands)	Consolidated Balance Sheet Classification	2022		2021
Assets
Operating lease assets	Right of use assets, net	$	61,890	$	52,146
Finance lease assets	Property, plant and equipment, net	21,359		23,895
Total leased assets		83,249		76,041
Liabilities
Current operating leases	Accrued expenses and other current liabilities	25,364		19,580
Non-current operating leases	Long-term lease liabilities	37,147		31,322
Total operating lease liabilities		62,511		50,902
Current finance leases	Current maturities of long-term debt	1,565		2,118
Non-current finance leases	Long-term debt, less current maturities	8,400		10,762
Total finance lease liabilities		9,965		12,880
Total lease liabilities		$	72,476	$	63,782

The components of lease cost recognized within the Company's Consolidated Statement of Operations were as follows:

		Year Ended December 31,
(in thousands)	Consolidated Statement of Operations Classification	2022		2021		2020
Lease cost:
Operating lease cost	Cost of sales and merchandising revenues	$	19,891	$	13,016	$	10,968
Operating lease cost	Operating, administrative and general expenses	10,132		10,324		10,678
Finance lease cost
Amortization of right-of-use assets	Cost of sales and merchandising revenues	614		978		932
Amortization of right-of-use assets	Operating, administrative and general expenses	1,009		1,008		1,008
Interest expense on lease liabilities	Interest expense, net	413		679		859
Short-term lease cost	Cost of sales and merchandising revenues	2,465		1,349		66
Variable lease cost	Cost of sales and merchandising revenues	338		458		80
Variable lease cost	Operating, administrative and general expenses	394		231		260
Total lease cost		$	35,256	$	28,043	$	24,851

The Company often has the option to renew lease terms for buildings and other assets. The exercise of a lease renewal option is generally at the sole discretion of the Company. In addition, certain lease agreements may be terminated prior to their original expiration date at the discretion of the Company. Each renewal and termination option is evaluated at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The following table summarizes the weighted-average remaining lease terms:

	As of December 31,
Weighted-Average Remaining Lease Term	2022	2021
Operating leases	3.9 years	3.9 years
Finance leases	6.9 years	7.2 years

The discount rate implicit within the Company's leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The following table summarizes the weighted-average discount rate used to measure the Company's lease liabilities:

	As of December 31,
Weighted-Average Discount Rate	2022		2021
Operating leases	3.44	%	2.63	%
Finance leases	3.35	%	3.30	%

Supplemental Cash Flow Information Related to Leases

	Year Ended December 31,
(in thousands)	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	30,294	$	29,304	$	28,444
Operating cash flows from finance leases	—		—		1,289
Financing cash flows from finance leases	1,782		12,538		4,115
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	36,056		35,024		15,160
Finance leases	—		364		4,972

Maturity Analysis of Leases Liabilities

	December 31, 2022
(in thousands)	Operating Leases		Finance Leases		Total
2023	$	28,108	$	1,889	$	29,997
2024	17,326		1,768		19,094
2025	9,801		1,406		11,207
2026	5,142		1,384		6,526
2027	1,629		1,391		3,020
Thereafter	5,507		3,382		8,889
Total lease payments	67,513		11,220		78,733
Less: interest	5,002		1,255		6,257
Total	$	62,511	$	9,965	$	72,476

	December 31, 2021
(in thousands)	Operating Leases		Finance Leases		Total
2022	$	20,639	$	2,521	$	23,160
2023	13,797		2,305		16,102
2024	8,121		2,175		10,296
2025	4,974		1,406		6,380
2026	2,434		1,384		3,818
Thereafter	3,881		4,773		8,654
Total lease payments	53,846		14,564		68,410
Less: interest	2,944		1,684		4,628
Total	$	50,902	$	12,880	$	63,782