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Leases

12 Months Ended

Dec. 31, 2024

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	2024		2023
Assets
Operating lease assets	Right of use assets, net	$	104,630	$	54,234
Finance lease assets	Property, plant and equipment, net	23,119		20,289
Total leased assets		$	127,749	$	74,523

Liabilities
Current operating leases	Accrued expenses and other current liabilities	$	25,773	$	22,322
Non-current operating leases	Long-term lease liabilities	65,312		31,659
Total operating lease liabilities		91,085		53,981

Current finance leases	Current maturities of long-term debt	1,884		1,134
Non-current finance leases	Long-term debt, less current maturities	9,616		7,879
Total finance lease liabilities		11,500		9,013
Total lease liabilities		$	102,585	$	62,994

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	2024		2023		2022
Lease cost:
Operating lease cost	Cost of sales and merchandising revenues	$	17,760	$	16,123	$	19,891
Operating lease cost	Operating, administrative and general expenses	14,490		13,203		10,132
Finance lease cost
Amortization of right-of-use assets	Cost of sales and merchandising revenues	80		120		614
Amortization of right-of-use assets	Operating, administrative and general expenses	1,133		1,045		1,009
Interest expense on lease liabilities	Interest expense, net	346		332		413
Short-term lease cost	Cost of sales and merchandising revenues	2,194		2,160		2,465
Short-term lease cost	Operating, administrative and general expenses	46		144		—
Variable lease cost	Cost of sales and merchandising revenues	—		500		338
Variable lease cost	Operating, administrative and general expenses	468		225		394
Total lease cost		$	36,517	$	33,852	$	35,256

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	2024	2023
Operating leases	10.9 years	4.0 years
Finance leases	6.6 years	8.6 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	2024		2023
Operating leases	4.96	%	4.27	%
Finance leases	4.19	%	3.77	%

Supplemental Cash Flow Information Related to Leases


	Year Ended December 31,
(in thousands)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	33,094	$	30,467	$	30,294

Financing cash flows from finance leases	1,185		1,270		1,782
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	72,196		48,569		36,056

Maturity Analysis of Leases Liabilities


	December 31, 2024
(in thousands)	Operating Leases		Finance Leases		Total
2025	$	29,882	$	2,338	$	32,220
2026	21,028		2,414		23,442
2027	13,808		2,229		16,037
2028	7,456		2,075		9,531
2029	4,038		2,394		6,432
Thereafter	62,350		1,986		64,336
Total lease payments	138,562		13,436		151,998
Less: interest	47,477		1,936		49,413
Total	$	91,085	$	11,500	$	102,585


	December 31, 2023
(in thousands)	Operating Leases		Finance Leases		Total
2024	$	23,790	$	1,447	$	25,237
2025	14,518		1,456		15,974
2026	8,755		1,462		10,217
2027	5,225		1,471		6,696
2028	1,714		1,481		3,195
Thereafter	5,076		3,488		8,564
Total lease payments	59,078		10,805		69,883
Less: interest	5,097		1,792		6,889
Total	$	53,981	$	9,013	$	62,994

Leases

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	2024		2023
Assets
Operating lease assets	Right of use assets, net	$	104,630	$	54,234
Finance lease assets	Property, plant and equipment, net	23,119		20,289
Total leased assets		$	127,749	$	74,523

Liabilities
Current operating leases	Accrued expenses and other current liabilities	$	25,773	$	22,322
Non-current operating leases	Long-term lease liabilities	65,312		31,659
Total operating lease liabilities		91,085		53,981

Current finance leases	Current maturities of long-term debt	1,884		1,134
Non-current finance leases	Long-term debt, less current maturities	9,616		7,879
Total finance lease liabilities		11,500		9,013
Total lease liabilities		$	102,585	$	62,994

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	2024		2023		2022
Lease cost:
Operating lease cost	Cost of sales and merchandising revenues	$	17,760	$	16,123	$	19,891
Operating lease cost	Operating, administrative and general expenses	14,490		13,203		10,132
Finance lease cost
Amortization of right-of-use assets	Cost of sales and merchandising revenues	80		120		614
Amortization of right-of-use assets	Operating, administrative and general expenses	1,133		1,045		1,009
Interest expense on lease liabilities	Interest expense, net	346		332		413
Short-term lease cost	Cost of sales and merchandising revenues	2,194		2,160		2,465
Short-term lease cost	Operating, administrative and general expenses	46		144		—
Variable lease cost	Cost of sales and merchandising revenues	—		500		338
Variable lease cost	Operating, administrative and general expenses	468		225		394
Total lease cost		$	36,517	$	33,852	$	35,256


	As of December 31,
Weighted-Average Remaining Lease Term	2024	2023
Operating leases	10.9 years	4.0 years
Finance leases	6.6 years	8.6 years


	As of December 31,
Weighted-Average Discount Rate	2024		2023
Operating leases	4.96	%	4.27	%
Finance leases	4.19	%	3.77	%

Supplemental Cash Flow Information Related to Leases


	Year Ended December 31,
(in thousands)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	33,094	$	30,467	$	30,294

Financing cash flows from finance leases	1,185		1,270		1,782
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	72,196		48,569		36,056

Maturity Analysis of Leases Liabilities


	December 31, 2024
(in thousands)	Operating Leases		Finance Leases		Total
2025	$	29,882	$	2,338	$	32,220
2026	21,028		2,414		23,442
2027	13,808		2,229		16,037
2028	7,456		2,075		9,531
2029	4,038		2,394		6,432
Thereafter	62,350		1,986		64,336
Total lease payments	138,562		13,436		151,998
Less: interest	47,477		1,936		49,413
Total	$	91,085	$	11,500	$	102,585


	December 31, 2023
(in thousands)	Operating Leases		Finance Leases		Total
2024	$	23,790	$	1,447	$	25,237
2025	14,518		1,456		15,974
2026	8,755		1,462		10,217
2027	5,225		1,471		6,696
2028	1,714		1,481		3,195
Thereafter	5,076		3,488		8,564
Total lease payments	59,078		10,805		69,883
Less: interest	5,097		1,792		6,889
Total	$	53,981	$	9,013	$	62,994